Experiential Travel Product Development: Widening the Net of Opportunity in Nova Scotia

5/6/2008 Experiential Travel Product Development Widening the Net f Opportunities Wid i th N t of O t iti With Celes Davar Presented by Earth Rhythms, Inc. Nancy Arsenault Faculty of Tourism and Hotel Management Royal Roads University Photographs courtesy of: April 29, 2008 NS Tourism, Culture & Heritage Truro, Nova Scotia Celes Davar , Nancy Arsenault and Royal Roads University Tourism Experiences vs. Products? “ A tourism product is what you buy. A tourism experience is what you remember.” (Canadian Tourism Commission, Experiences Toolkit 2008) 1

5/6/2008 Who is the Customer? The National Invitation Keep Exploring! Speak to the hearts and minds of travelers Experience Canada through its land, culture, and personal exploration 2

5/6/2008 The Provincial Invitation ♦ T experience N To i Nova’ S i ’ ’ Scotia’s Old world charm, New world pulse, ♦ Shaped by the sea and the spirit of our people What is Your Invitation? To T your customer, your ideal guest(s)? id l ( )? How much do you know about them? • Demographics? • Activities? • Psychographics? • Their propensity to spend? 3

5/6/2008 Demographics Facts about people: age, income, education, location Activities What people like to do while vacationing 4

5/6/2008 TM The Explorer Quotient A deeper understanding of the modern travelers Free Spirit Rejuvenator Gentle Explorer Authentic Experiencer Excepts from the Canadian Tourism Commission What is the Explorer Quotient? A fun, easy, engaging, and innovative approach to matching consumers with tourism products based on individual travel values and motivations p Recognizes that two people can be standing in the exact same spot, participating in the exact same activity, yet having two completely different experiences Seen as an opportunity to position Canada as a place for exploration, to “Keep exploring” Presents Canadian experiences in a more relevant way T t t l Targets travelers on a psychographic i t d of geographic/activity b i h hi instead f hi / ti it basis Assumes we have enough experiential product to sell Canada to reach these travelers **OUR JOB/ OUR OPPORTUNITY** 5

5/6/2008 Propensity to Spend It is more about what a person is willing to spend, than how much they earn. How much is a great experience worth while travelling? All are important! * Destination * Location * Activities * Experiences We’ve just been working positioning destinations and selling activities, longer than crafting memorable visitor experiences! 6

5/6/2008 What is experiential travel? Travel that engage travelers in a series of memorable events, that are revealed over time, are inherently personal, involve the senses, and make a connection on an emotional, physical, spiritual or intellectual level. Experiential Travel Products Marketing Result Series of events Market dreams Memories! …participatory activities … position themes …engage senses … personal relevance … authenticity … personal connection Cape Breton Square Dance Grand Pre Winery 7

5/6/2008 “The customer experience is the next competitive battleground.” Shaw & Ivens (2005) We are living in a commoditized economy W Products, prices, people, and technology are so similar To differentiate we must develop and sell ‘meaningful things’ that H travelers will remember, along with the activities in special places Embracing ‘experiences’ requires a fundamentally different mindset, it is Y a strategic organizational shift t t i i ti l hift ? “The customer experience will be the next business tsunami.” Core Experiences We realize that we need to differentiate ourselves by presenting experiences that match our customers’ passions. Today’s travelers are increasingly sophisticated and have varied interests. Core e periences are at the experiences heart of everything we offer our consumers. New Realities New Directions 2008 Tourism Plan & Partnership Opportunities NS TPC NS Tourism, Culture and Heritage 8

5/6/2008 Great Experiences Already in Market The 2007 Royal BC Museum Titanic Exhibit A Resounding Success! ❖ 451 120 451,120visitors, 1/3 said this was the visitors reason to visit Victoria ❖ $30M economic impact ❖ Fabulous exhibit but the passenger manifest and the ‘ticket’ … were the ticket, to a terrific guest experience. ❖Ireceived my boarding pass and entered …I saw, I sampled, I tried on, I touched, then … Discovered my fate on April 15th, 1912. 9

5/6/2008 Other E Oth Experiences i in Market International 10

5/6/2008 The Music of Migration Music of Migration ❖ The experiences Experiential ingredients ❖ A ti Active f d di use of sound recording a ❖Great theme technology to listen to birds ❖All senses are engaged ❖ Guided walks ❖Learning ❖ Wine and cheese ❖Authentic ❖ Access to experts ❖Uses local inventory - sky ❖EQ Types - Cultural Explorer and Cultural History Buff 11

5/6/2008 Where could this approach be used? ❖ Brier Island ❖ University campuses ❖ Rural and urban museums ❖ Coastal resorts and areas ❖ Createyour own acoustic experiences 12

5/6/2008 By partnering B2B with local providers, Santa Fe Mountain Adventures has a richer inventory. What is your inventory of experience providers? Creating a shift in how the product is positioned ❖ Away from all-inclusive to customized packaging. ❖ Teasing travelers with possibilities - we help you “create your own” ❖M Many group options ti ❖ Shift from product to experience focus 13

5/6/2008 14

5/6/2008 Crabbing Experience Tangier Island, VA - USA Package Offers: The Theme •More time Birds •What watermen do Boats •Explores other Peeler Pots things & Other Tangier Things •Lunches •B&B •Time on your own 15

5/6/2008 Médoc Marathon, France Marathon, wine, cuisine For the cultural explorer: experience •Conviviality - a merry festivity personalized for each runner •Fun - runners in costume disguises, individual & group •Sport - 42.195 km •Health - 22 gourmet food stands; local wines •8500 runners max - limit •100,000 spectators •300 medical support •52 other events simultaneously (music, etc.) Mastercard Recognizing where product and marketing come together 16

5/6/2008 Canada 17

5/6/2008 Horizon & Co. Our methodology: We understand how to design an experience that has a lasting effect beyond its consumption, consumption whether that lasting effect is in the form of a life-long memory or retention of learning – either way it is the memory that extends the experience over time. Staging experiences that resonate over time is not just about entertainment but rather about engaging all the participants in a program that finds the “sweet spot” across five different experience areas: 1) Entertainment; 2) Education; 3) Activity; 4) Environment; 5) Sensation. Lighthouse Picnics 18

5/6/2008 Tips for operators from Lighthouse Picnics Offer a genuine experience - do not try to be anything other than what you are. What our setting and experience does so well is provide the ingredients for people to create their own memories - they’ve got sea, sky, g y good company, and g p y great food! Experiences A Toolkit for partners of the CTC 19

5/6/2008 Briarcliffe Inn, B&B, PEI ...we have designed our exclusive experiential adventures to take you off the typical tourist routes to meet fascinating Islanders... 20

5/6/2008 What is the difference between a product and an experience ? A tourism product is what you buy. An experience is what Experiences you remember... A Toolkit for partners of the CTC BUSINESS PROPOSITIONS CREATING EXPERIENCES It’s all about Creating Opportunities to respond to visitor demands who bring different interests by: 1.Creating 1.Creating new or refreshed forms of programming - new $. $. 2.Adding 2.Adding value to your existing enterprise with new products that feature experiences - new product lines. •P t i ith l l Partnering with local people - add value to the package. l dd l t th package. k •Partnering B2B - you are stronger together! Rewards all. •Responding with new higher yield opportunities. opportunities. 21

5/6/2008 Crafting Great Experiences Through Partnerships Experiential Tourism Ingredients 1. Enrichment & Authenticity 2. Partner with your community 3. Invent themes that will intrigue visitors! 4. Engage all the senses! 5. Increase the value - with local people 6. Invent new forms of programs 7. Personalize and customize your services 8. Add interaction and hands-on activities 9. Feature local people - it’s what visitors want 10.Add local retail items 22

5/6/2008 B2B Business to Business Partnerships Elkhorn Resort & Earth Rhythms A hotelier - local tour operator example Accommodations partner - Year Round Elkhorn Resort, Spa & Confrerence Centre 23

5/6/2008 ER2 Elkhorn Resort + Earth Rhythms A year-round partnership offering bigger year- benefits to both companies and the surrounding community. B2B with local partner - efficient ❖ Elkhorn Resort Earth Rhythms 1 Their CRS drives all bookings 1. t ( k ) focus: 1 P d t creator (packager) - f 1. Product 2. Direct link to Earth Rhythms on experiences! their website - seamless 2. Direct link to Elkhorn Resort on our 3. Partner with Earth Rhythms - website - seamless Bigger Sales Team! 3. Partner with Elkhorn - We own ideas, 4. With Earth Rhythms, a fuller and not property or amenities. A perfect high q g quality offering is available. y g match! 5. Multiple sub-markets, each with 4. With Elkhorn Resort & Spa, lots of their own needs and interests. packaging ideas. 6. Broad offering 5. Provides outdoor experiences - customized for four key target markets at the resort. • Specific and exclusive offering 24

5/6/2008 Lessons learned 1.Create simple programs, easy to deliver logistically, close-by. 2.Customize Customize • C t i (hi h yields) 2C t i •C t i Customize (higher i ld ) 3.Offer Once-in-a-lifetime programs (night time, elk kill, snowshoe, spa) in places we take for granted. 4.Create “the extra-ordinary” with local inventory. 5.Partnering lowers overhead costs. • Small groups as a focus is key. • Resorts have multiple niche markets - we serve them! TIME SHARE FAMILY (US) 25

5/6/2008 COUPLES WEEKEND GETAWAYS small groups - informal 26

5/6/2008 The Extended Family (Inter-generational) Corporate teams 27

5/6/2008 Feel the Beat! Feed the Soul. Nourishment & Nutrition! Chef’s Choice 28

5/6/2008 Understanding and Opportunity Making meaning from our experiences! Adapted from: Voss, C. (2003). London Business School Manage the The Experience Profit Cycle visitor experience Innovation Invest in and manage the destination and experience Increase the length of Memorable visit, Visit and expenditure vibrant environment, anticipation Marketing & Create a promotion buzz Increase profit and partnerships, word of mouth, repeat visitation 29

5/6/2008 Sustainability, Climate Change & Tourism All graphs created and provided through the courtesy of Dr. Dr Daniel Scott Scott, Canada Research Chair in Global Change & Tourism University of Waterloo Make daily choices to reduce GHG from absolutely everything we do consume do, consume, or create in tourism. Solutions? 30

5/6/2008 What can you do? 8 action steps 1. Continue to adopt conservation practices that reduce energy - less carbon. 2. Keep educating yourselves and your customers about practical solutions to reduce emissions - carbon offsets, carbon footprint, carbon neutral. 3. Deliver your events, facilities and programs with as low carbon emissions as you can. 4 Expand your offer of local foods - Low food miles. 4. miles 5. Promote self-propelled travel at your facilities. Provide electric scooters, bikes; walk; kayak; canoe. Carbon offsets: Emission reduction credits 6. Use, purchase and rent cars that have lower carbonother organizations’ you purchase from emissions. projects to reduce emissions from your 7. Invest even more in energy audits, retrofits, and alternative energy travel. for your facilities and communities. What can you do? 8 action steps 7. Create experiences in which efforts to deal with climate change are the experiences! Travelers have personal access to climate change and energy experts. 8. Purchase carbon offsets for all ground and air travel, and help your customers to do so. Aventours Adventures (US) now includes the cost of carbon offsets as part of the price for all of its tours to Central America. (Planetair.ca, Less.ca, Zerofootprint.net) ❖ NOTE: ❖ Be ready for the anti-air travel backlash from global markets Have markets. a plan! ❖ Embrace Slow Travel - It’s all about experiences. ❖ As an industry, become leaders in applying solutions that demonstrate effective reduction in carbon emissions. 31

5/6/2008 Product Development Day Small Steps ❖ Lunch - featuring local foods. Menu focus. g ❖ Very little paper handed out - purposefully. ❖ Rental of hybrid cars for facilitators - less fuel, less emissions. ❖ Purchase of carbon offsets for return flights. ❖ I l di Including i f ti information about climate change and t i b t li t h d tourism within our ithi presentations today. ❖ Eliminating delegate bags. ❖ Online evaluation after workshop - eliminate paper. ❖ Car-pooling to come to this conference was encouraged Graphic Designed by: www.avrilorloff.com f|ÅÑÄx f Ä vÉÇäxÜátà|ÉÇá? à{tà ÅtààxÜA 32

5/6/2008 Rules of Engagement Set the table! One person hold the memento Everyone is encouraged to contribute Connect perspectives Listen together for insights “Ah-ha’s and Oh’s” 3 questions, approx 15 minutes each Share collective discoveries after coffee break World Café Questions 1.What 1 Wh t experiences in th province are we proud of and why? i i the i d f d h ? 2.The year is 2013, what new visitor experiences have been added to Nova Scotia’s inventory? 3.What is needed to build the capacity to develop and deliver memorable visitor experiences i your b i bl i it i in business or region? i ? 33

5/6/2008 Experiential Tourism Programs and Yield Continuum $300 $225 New Program Offer 1 Revenue $150 $ New Program Diversify Offer 2 Program $75 Traditional T diti l Offer Program Offer 0 Type of Program Offer 34

5/6/2008 Thank-you! Nancy Arsenault Faculty of Tourism and Hotel Management Royal Roads University www.royalroad.ca/tourism nancy.arsenault@royalroads.ca 250.391.2600 ext 4424 1.866.241.0674 Celes Davar Earth Rhythms Inc. www.earthrhythms.ca www www earthrhythms ca w.earthrhythms.ca celes@earthrythms.ca 204.848.4680 1.888.301.0030 35

Experiential Travel Product Development: Widening the Net of Opportunity in Nova Scotia

by The Tourism Cafe on Oct 18, 2008

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Experiential Travel Product Development: Widening the Net of Opportunity in Nova Scotia — Document Transcript

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