Moab Marketing

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Published on March 27, 2008

Author: BAWare

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The Marketing Environment: Tourism and Outdoor Recreation :  The Marketing Environment: Tourism and Outdoor Recreation Steven W. Burr, Director Institute for Outdoor Recreation and Tourism Utah State University Presentation for Marketing Your Moab Business Workshop Moab Valley Inn, Moab, Utah January 24, 2002 The Marketing Environment:  The Marketing Environment Promotion is everywhere! Consumers today are inundated with messages of all kinds. Traditional advertising mediums—TV, radio, magazines, and newspapers Now projected that an average adult in the U.S. has a daily potential exposure figure of 247 ads, of which 136 were given at least some attention. A Competitive Landscape Tourism Media Spending 2000:  A Competitive Landscape Tourism Media Spending 2000 MEDIA CATEGORIES: Print (Magazines & Newspapers) Outdoor TV Radio Source: 2001 Competitive Media Reporting and Publishers Information Bureau A Competitive Landscape:  A Competitive Landscape To break through all of the existing clutter, our messages must be precise, enticing, and targeted to hit consumers at the right time and at the right place when they are considering their vacation options. Continuing and Emerging Trends Continually monitor the global trends affecting tourism and the travel industry:  Continuing and Emerging Trends Continually monitor the global trends affecting tourism and the travel industry Evolution of the Experience Transition to an Experience-Based Economy Amenity-Based Experiences Today’s travelers seek new and unique experiences. Traditional tourism activities being augmented by adventure travel, wildlife viewing, recreation transportation (bikes, snowmobiles, watercraft), nature and eco-tourism, cultural heritage tourism. Big Fun is Big Business! Leisure-entertainment lifestyle economy Spending, jobs, and taxes Leisure spending projected to be 50% of GDP by 2015. Continuing and Emerging Trends:  Continuing and Emerging Trends It’s not just the actual vacation experience! Vacation—includes all that occurs before, during, and after the actual trip. Consumers today savor the experience of planning the vacation. There exists a strong emotional component to planning the vacation—“exciting, relaxing, enjoyable, awesome” Need to create the most enjoyable experience for people planning their trip and then continue to find ways to remind them of the excitement and energy of their vacation. Continuing and Emerging Trends Source: Travel Industry Association of America:  Continuing and Emerging Trends Source: Travel Industry Association of America Increase in Visits to Friends and Relatives On the rise nationally Using vacations as a “reconnection” opportunity with family members and friends. 51% of consumers spend time with friends and family for fun and enjoyment, second only to watching TV. When asked about vacation criteria, time with family is cited most frequently (47%). Continuing and Emerging Trends:  Continuing and Emerging Trends Visiting Friends and Relatives (VFR) Traveler Valuable asset to the tourism industry Spend more money Experience-oriented Tend to want to participate in a multitude of activities during their visit. Their hosts also spend a significant amount of money in-state while entertaining their guests. Continuing and Emerging Trends Source: Travel Industry Association of America:  Continuing and Emerging Trends Source: Travel Industry Association of America Continued Consumer Focus on “Mini-Trips” Overnight leisure trip of one to five nights away from home traveling at least 50 miles or more, one way and including a Friday, Saturday, or Sunday night stay. Half of all U.S. adults take at least one weekend trip per year (almost 103 million adults). Almost 30% of Americans have taken five or more weekend trips in the past year; 35% take their children. May be due to increasing desire to try new activities and visit new destinations on a regular basis. Shorter trips allow travelers a chance to enjoy new adventures with a minimal outlay of time, vacation days, and finances. Continuing and Emerging Trends Source: Travel Industry Association of America:  Continuing and Emerging Trends Source: Travel Industry Association of America Spur-of-the-Moment Trips With 52 weekends a year to choose from, travelers have the flexibility to make “spur-of-the-moment” decisions about trips. One-third of weekend travelers take advantage of coupons, discounts, or special offers while planning or on their mini-trip. Sources of information are websites, travel guides, magazines, and newspaper travel sections. Continuing and Emerging Trends Source: Travel Industry Association of America:  Continuing and Emerging Trends Source: Travel Industry Association of America Type of Destination Visited on Most Recent Weekend Trip Among Past-Year Leisure Travelers Who Took a Weekend Trip percentage Continuing and Emerging Trends:  Continuing and Emerging Trends Destination not located close to a major metropolitan market? …and therefore harder to convince a consumer to spend the extra time to travel, face more barriers, and spend possibly more money on their mini-vacation… Must provide more compelling reasons, more relevant information, and more options to entice the consumer to consider your destination for their mini-trip getaway. Continuing and Emerging Trends:  Continuing and Emerging Trends Customization to a Customer of One Desire by consumers to have a truly customized vacation experience… Consumers are empowered! Can get what they need more quickly and in a more personalized format. Consumers want the total experience! Want the ability to customize the experience to fit their specific needs. Want the experience compacted into the allotted vacation time available. Continuing and Emerging Trends:  Continuing and Emerging Trends Continuing Impact of the Internet Internet has become a mainstream medium and has done it faster than any other medium in history. Americans of every race, creed, and socio-economic status are now online and their numbers are growing. 58% of U.S. households now have Internet access; about 102 million households Travel research has become one of the most popular online activities in recent years. Internet has become a mainstay in the vacation planning process. The Traveling Public:  The Traveling Public Important to consider as many facets of the traveling public as possible in order to best develop communications that motivate these diverse consumers and cause them to act. Need to take a deeper look and not just base marketing plans on straight demographic averages. The Traveling Public:  The Traveling Public To really out-think our competitors, we need to understand our consumers intimately: What are their characteristics? What influences them? How do they plan their trips? Basically, what makes them tick? General Traveler Segments:  General Traveler Segments Older Matures— GI Generation (71+ years old) Depression (61-70 years old) Matures— War Babies (55-60 years old) Baby Boomers—(35-54 years old) without children on trip Generation X—(24-35 years old) without children on trip Generation Y—(6-23 years old) Slide18:  Who are our travelers and how big is the market segment? U.S. Overall vs. Population Segments by Category Older Matures (16%) Depression (61-70 years old) GI Generation (71+ years old):  Older Matures (16%) Depression (61-70 years old) GI Generation (71+ years old) With health, have time and dollars to travel Have appetite for knowledge Low spenders, but travel longer More likely to drive Travel in summer and fall Use travel agents, friends/family, vacation guidebooks & magazines Influenced by friends/family; Media—editorials, advertising Transportation by own auto/truck, bus/train, airplane Vacation types: VFR; naturalistic; general sightseeing; heritage; beach/lake; city Planning Timeline: 0-12 months Matures (6%) War Babies (55-60 years old):  Matures (6%) War Babies (55-60 years old) With health, have time and dollars to travel Have appetite for knowledge Travel longer Travel in summer and fall Use travel agents, friends/family, vacation guidebooks & magazines Influenced by friends & family; Media—editorials, advertising; activity Transportation by own auto/truck, airplane, rental car Vacation types: VFR; naturalistic; general sightseeing; heritage; beach/lake; city Planning Timeline: 0-12 months Baby Boomers (28%) Without children on trip (35-54 years old):  Baby Boomers (28%) Without children on trip (35-54 years old) 72% married (average 52 years old) 56% children in household 59% two person household Environmental interest Appetite for adventure Travel year-round Use internet, travel agents, friends/family, vacation guidebooks, magazines Influenced by friends & family; acceptance within the group, consensus; Media—editorials, advertising; activity Transportation by airplane, rental car, own auto/truck Vacation types: naturalistic; VFR; beach/lake; general sightseeing; city Planning Timeline: 0-6 months Family Most likely comprised of Boomer families :  Family Most likely comprised of Boomer families College educated Married couples 50% have a household income of $50K+ Interest in family-oriented activities Travel in summer Use Internet, travel agents, friends/family, vacation guides Influenced by friends & family, children Influenced by media—editorials, advertising; activity Transportation by own auto/truck (66%), airplane (19%), rental car Vacation Types: historic/heritage sights; ocean/beach; city; lake; general sightseeing Planning Timeline: 3-18 months Generation X (16%) Without children on trip (24-35 years old):  Generation X (16%) Without children on trip (24-35 years old) Kids of Boomers Group mentality Appetite for the extraordinary Moving toward mainstream activities Travel year-round Use Internet, friends/family Influenced by friends/family; Media—MTV, X-Games, editorials, advertising Transportation by airplane, rental car, own auto/truck Vacation Types: naturalistic; VFR; beach/lake; city Planning Timeline: 0-3 months Generation Y (26% ) (6-23 years old):  Generation Y (26% ) (6-23 years old) Kids of Boomers Fiercely independent Seek out non-mainstream activities Travel year-round Use Internet, Friends/Family Influenced by friends/family; Media—MTV, X-Games; trends Transportation by rental car, own auto/truck, airplane Vacation Types: naturalistic; VFR; beach/lake; city; hiking/camping/climbing Planning Timeline: 0-3 months Changing Face of Tourists:  Changing Face of Tourists As Baby Boomers grow older and move towards retirement, large amounts of both time and money will become available for the pursuit of their leisure activities. Minority groups, including African-Americans, Asian-Americans, and Hispanics, are among the fastest growing population groups in the U.S. and will represent an increasing percentage of all travelers. Changing Face of Tourists:  Changing Face of Tourists Combination of easier access to information and economic growth will open markets in Latin America, Asia, and Eastern Europe. Combined with existing markets in Canada and Western Europe, international tourism presents a very high growth potential. Primary Purpose of Travel to Utah is for Leisure Purposes:  Primary Purpose of Travel to Utah is for Leisure Purposes One-third of leisure travelers come to Utah to visit friends and family. One-fourth come to enjoy a general vacation. Less common— Visitors attending a special event Visitors enjoying a getaway weekend Leisure travel represents 80% of domestic, non-resident overnight visitation. Most overnight visitors to Utah participate in some type of outdoor recreation activity:  Most overnight visitors to Utah participate in some type of outdoor recreation activity Percentage of domestic overnight visitors Source: D.K. Shifflet & Associates, Ltd. 1998 Directions Data Top Ten Activities of Domestic Overnight Visitors to Utah Outdoor Recreation in Utah:  Outdoor Recreation in Utah Utah attracts more visitors than the national average who participate in soft adventure and outdoor recreation activities. Utah exceeds the national average in national park and state park visitation. Utah exceeds the national average in participation in hiking and biking, camping, skiing, hunting and fishing, and sailing and boating. Outdoor Recreation Trends 1982-2000 Source: 2000 National Survey on Recreation and the Environment:  Outdoor Recreation Trends 1982-2000 Source: 2000 National Survey on Recreation and the Environment Fastest Growing Activities Activities Adding Most Participants International Travelers to Utah:  International Travelers to Utah Expected to be one of the fastest growing traveler segments over the next few years. Currently, international visitors account for nearly 5% of total non-resident visitors. International travelers are sensitive to economic conditions in their home country. Strength of U.S. dollar has prompted some visitors to choose other destinations or alter their spending. International Travelers to Utah:  International Travelers to Utah Major international markets include Canada, Germany, France, United Kingdom, Japan, Belgium, Netherlands, Luxemburg, Italy, and Switzerland. International visitors are attracted to Utah’s National Parks and other public lands. International visitors are attracted to the large number of ethnic, cultural, and historic resources in the state. Typically, more affluent, stay longer, more likely to participate in spending activities than U.S. visitors. Domestic versus Overseas Visitors to Utah:  Domestic versus Overseas Visitors to Utah Sources: Domestic—D.K. Shifflet & Associates, Ltd. Directions Data International—U.S. Department of Commerce, Tourism Industries 1997-99 Analysis For the Transition to the Experience-Based Economy:  For the Transition to the Experience-Based Economy Today’s travelers seeking new and unique, amenity-based experiences. Utah has… The icons—from redrock to world class alpine (natural and cultural resource-based amenities) Public sector mandate and interest Private sector interest and involvement Slide35:  Successful Rural Tourism Development Citizens Residents Special Interest Groups Elected Officials Government Agencies Businesses Media Conservation Groups Resource Managers Marketers & Promoters Tourism Planners & Developers Slide36:  Institute for Outdoor Recreation and Tourism College of Natural Resources Utah State University Dr. Steve Burr Associate Professor of Recreation Resources Director, Institute for Outdoor Recreation and Tourism Extension Specialist in Outdoor Recreation and Tourism Institute for Outdoor Recreation and Tourism College of Natural Resources Utah State University 5220 Old Main Hill Logan, Utah 84322-5220 Office: (435) 797-7094 FAX: (435) 797-4040 E-mail: swburr@cnr.usu.edu Visit the IORT Website at www.cnr.usu.edu/iort

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