Why Travel Matters

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"Why Travel Matters" was presented at the 2009 SMG Tourism Conference

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  • As you saw in Ralf’s presentation TPI has subsequently fallen
  • Why Travel Matters

    1. 1. Why Travel Matters <br />And How Your Organization Can Respond to Remain Competitive<br />
    2. 2. The Situation at Hand<br />
    3. 3. The Long Boom 1982-2007<br />Dow Jones industrial Average<br />1992 803<br />2007 14,165<br />Casino Gaming<br />Late 80’s Nevada & New Jersey<br />Today 12 states have casino gaming and 48<br /> have some form<br />The average size of a house has increased by 50% <br />American style capitalism was king<br />Wal Mart & Target => cheap goods<br />Living Large<br />
    4. 4.
    5. 5. Everything has changed<br />Consumers will behave differently; chastened, will act more wisely<br />The grasshopper and the ant<br />Yankee virtues vs. speculation<br />Recalibrating expectations for the good life<br />Consumer Reset<br />
    6. 6. The new calculation:<br /> “Do we need it or do we want it?”<br />Reset on Travel<br />
    7. 7. Across all aspects of the destination<br />Which destination?<br />What method of travel?<br />What lodging?<br />What dining?<br />What retail?<br />What activities?<br />Reset: Decision Impacts<br />
    8. 8. To survive the challenges of change that we currently face within our industry it will be critical to go back to the basic and fundamental starting point and answer the question of why travel matters.<br />The Premise<br />
    9. 9. Maslow’s Hierarchy of Needs <br />
    10. 10. eH06NfrsGavto<br />Thoughts on Why Travel Matters<br />
    11. 11. “Travel matters to get away from the usual routine. I travel to relax and to experience new places and different environments.”<br />Travel Matters<br />
    12. 12. “Travel opens you up. We tend to become myopic when we stay in one place. Our interactions are with the same people, or the same types of people. Our world view narrows. Conversation becomes repetitive.”<br />Travel Matters<br />
    13. 13. “Travel allows us to escape from our everyday lives and gives us the chance to recharge. And the experience can be enriching, relaxing and rejuvenating. I'm ready!”<br />Travel Matters<br />
    14. 14. “We travel, initially, to lose ourselves; and we travel, next, to find ourselves. We travel to open our hearts and eyes and learn more about the world than our newspapers will accommodate.”<br /> - Pico Iyer<br />Travel Matters<br />
    15. 15. Our New Reality<br />Economic Transition<br />Products<br />Experiences<br />Commodities<br />Services<br />
    16. 16. What’s real are the experiences and the connections destinations allow visitors to make.<br />
    17. 17. Return on Investment (ROI)<br />=<br />Return On Experience (ROE)<br />In order to get a positive ROE you need to<br />know why travel matters.<br />The New Matrix<br />
    18. 18. As consumers ask do I need this or do I want this so too you must ask am I appealing to a consumer want or need.<br />
    19. 19. Consumer<br />Wants Needs<br />Destination Appeal<br />Want<br />Need<br />The new battle ground<br />
    20. 20. What is the real need?<br />Drill Bit<br />Hole<br />
    21. 21. Understanding the New Normal<br />
    22. 22.
    23. 23. “ A consumer culture invites us to want more than we can ever have: a culture of thrift invites us to be grateful for whatever we can get.”<br /> -Time Magazine<br />A Culture of Thrift<br />
    24. 24. 63% have cut back on entertainment<br />56% have cut back on non fast food restaurants<br />38% are buying less tickets to sporting events<br />46% are going to the movies less<br />25% are gambling less<br />28% are spending less on alcoholic beverages<br />39% have postponed or cancelled a vacation<br />Consumers are Changing<br />Source: Time Magazine<br />
    25. 25. Less consumer and business level debt<br />Insane competitiveness recedes<br />Living a more simple life<br />More haggling over prices<br />More time with family and friends<br />Quality vs. quantity<br />A Reset Mindset<br />
    26. 26. Rethink our relationship with the consumer<br />It has to be more than just a sale<br /> “We’ve got to get into the overall relationship business. If we sell tickets one-off, and hot dogs one -off and sodas one-off then we are in trouble.”<br /> - Todd Leiweke<br /> CEO Seattle Seahawks<br />Where Do We Go?<br />
    27. 27. Get real with the pricing<br />Authentic experiences from a genuine destination<br />Integrate the local community into your marketing efforts <br />Design and build your destination with locals in mind and visitors will follow<br />A New Strategy to Succeed<br />
    28. 28. Prior to the recession the TPI had seen significant increases <br />Pricing must reflect a true price value from the perspective of the consumer<br />Scalable – they may stay at a 2 star in a destination instead of a 4 star, but the ROE is high enough that they need to travel there<br />Get Real with the Pricing <br />
    29. 29. Authentic Experiences From a Genuine Destination<br />Experiences will become the new currency of travel<br />Every point of contact that a visitor has with a destination impacts that experience<br />Customer service is more important than ever, as it directly affects ROE<br />
    30. 30. The local community has a passion for every activity you offer, it’s why they moved there<br />Harness and integrate those locals<br />Cooperation, collaboration, co-creation<br />Integrate the Local Community<br />
    31. 31. Build for Locals….….and Visitors will Follow<br />Develop your destination in a way that will encourages locals to express themselves<br />Locals know what’s authentic - and what’s not<br />Events, infrastructure, community programs<br />Create & allow for nooks and crannies <br />Locals will fill them out and make the destination more interesting<br />
    32. 32. Authenticity<br />Community based planning<br />Customer service<br />ROE<br />Sustainable growth<br />Quality vs. quantity<br />Making Travel Matter<br />
    33. 33. The Fork in Our Thinking<br />
    34. 34. Scenarios to Consider<br />
    35. 35. <ul><li>Life will eventually return to what we knew it
    36. 36. Consumer have gotten to used to their lifestyle and will return to spending and behavioral patterns they had
    37. 37. Hold tight and ride the recession through</li></ul>Scenario 1-Back to Normal<br />
    38. 38. The world as we know it has changed <br />Rediscover why travel matters to your destination’s visitors – what resonates with them?<br />Make changes to make destination, marketing strategies, communication more compelling and authentic by integrating the local community<br />Scenario 2- The New Normal<br />
    39. 39. Are you ready for the New Normal?<br />
    40. 40. <ul><li>Organizational Goals & Objectives
    41. 41. Target Audiences
    42. 42. Core Strategies
    43. 43. Program Elements
    44. 44. Measurements</li></ul>Are they still relevant – <br />Or do they need adjusting with this ‘new normal’?<br />The New Normal & Your Marketing<br />
    45. 45. www.smgonline.net<br />

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