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

"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

Transcript

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