The E-FactorBelfast,Northern Ireland5 March 2013The Next TourismFrontierKeynote Address By:Dr. Nancy Arsenault, Managing PartnerWe hope the information shared stimulates thinking that helps growyour business or destination. Feel free to share the contents, but ifyou extract slides for an alternative use, please credit the source:Dr. Nancy Arsenault@ Tourism Cafe Canada. Thank you.(c) 2013. Dr. Nancy ArsenaultThe Experience Factor• New visitor value• New business opportunity• Strengthens brand• Host and community pride• A response to growing demandThe customerexperience... the nextcompetitivebattle ground& newcurrency.It’s about the memories
(c) 2013. Dr. Nancy ArsenaultSuccess Requires• A paradigm shift• Leap of faith in the customer• Truly putting the customer at theheart of your operation• Investing in innovation, creativityand industry product & marketdevelopment• Recognizing results take time,not as quick as marketingcampaignShared-riskInvestmentInnovationCollaboration(c) 2013. Dr. Nancy ArsenaultWe’re on a journeyTheFuture1999As you are
•The customer seeking authenticity, engagement,personalization & being in the conversation•Internet creating a new playing ﬁeld•More product development insights•Increased competition•The Experience Economy and emerging ﬁeld ofCustomer Experience Management•Growing demandInﬂuenced by: TheFuture1999(c) 2013. Dr. Nancy Arsenault• 85% experiential travel as important/extremely important• 53% planned new experiential programs in 2012.• Baby boomers have the ability to pay.• Europe and South America are excelling• Food/wine/culinary tours, historical and educational, artand culture in demand USTOA, Dec 2011There’s a growing demand“Travellers have a desire for authentic experiences. They facea lot of complexity in terms of finding these experiences,putting them together and finding value.”– Scott Nisbet, Globus
Seeing the sights is no longer enough.Experiential travellers want to venture beyond thebeaten tourist paths and dive deeper into authentic,local culture, connect with people in deep andmeaningful ways, and fulﬁll a desire to give back.More than ever people are travelling their passions.Joe Diaz, Afar Magazine (2009)Signing Boat Guide Cowboy Poet Atl-Atl Throwers Female Cod FisherAs businesses we must ﬁnd ways to:Engage visitors in a series of authentic,memorable travel activities, revealed over time,that engages the senses, are inherently personaland make connections on a physical, emotional,spiritual, intellectual or social level.Photo Credit: Celes DavarPhoto Credit: GMIST Photo Credit: Experience PEIAuthor: Nancy Arsenault 2004, evolved 2007.
(c) 2013. Dr. Nancy ArsenaultSo let me ask you... if you could... would youBut we can’tpackage and sellwhat doesn’t exist(c) 2013. Dr. Nancy ArsenaultAttractions: If you could, would you•Have the courage to lead program innovation against the norm?•Create ways to connect with niche traveller types?•Charge £ 150pp /$300 CDN for a 3-hour experience for 4 people?•Help generate revenues for community partners?•Value getting LOTS of free media coverage?The Halifax Citadel National Historic Site of Canada
(c) 2013. Dr. Nancy ArsenaultSoldier for a Dayunderstood different people arewilling to pay for differentexperienceshttp://www.pc.gc.ca/lhn-nhs/ns/halifax/visit/visit9/visit9d.aspxThe Halifax Citadel National Historic Site of Canada(c) 2013. Dr. Nancy ArsenaultHotels: If you could, would you•Target your local community for your high-end property?•Enjoy a permission database of 12,000 in your own city to inviteregularly to your hotel?•Excite people in your own community to spend $$$ and choose tostay over night?•Develop brand aligned people & partners to deliver experiences toyour guests?The Fairmont Empress,Victoria British Columbia
(c) 2013. Dr. Nancy ArsenaultFriends of the Empress Program... reached an entire new marketthat now enhances other marketshttp://www.friendsoftheempress.ca/The Fairmont Empress Hotel(c) 2013. Dr. Nancy ArsenaultLocal Tour Operator: If you could, would you•Allocate 75% to product development; 25% to marketing?•Deﬁne your ideal guest as: open minded people, seekingenlightenment to build on?•Shift from show and tell to engaging visitors with your people,special places and stories?•Find ways to respond to demand for groups or 12 to 400, but onlyusing locals from a community of 12,600?Great Spirit CircleTrail, Manitoulin Island Ontario
(c) 2013. Dr. Nancy ArsenaultGreat Spirit Circle TrailInnovative Business ModelBuilt OnProgram ModulesPeople and Experiences 1stwww.circletrail.com(c) 2013. Dr. Nancy ArsenaultFishermen: If you could, would youShediac Bay Cruises, New Brunswick•Share your passion for the sea with visitors?•Enjoy a new revenue stream from your boat?•Take pride in showcasing a part of your history/culture to guests fromaround the world?•Hire people who share your passion and love telling stories?Tranquility Cove Adventures, Prince Edward Island
(c) 2013. Dr. Nancy ArsenaultNon-traditional providersabound... ﬁshermen, farmers,artisans, artists, chefs ...(c) 2013. Dr. Nancy ArsenaultPassionate Person: If you could, would you•Forge on with a tourism idea when people thinkyou’re nuts?•Build a 10-day pre-tourism season festival in atown of 785 people?•Try to grow the spring season to help allbusinesses?Trails,Tales &Tunes: Festival Norris Point Newfoundland Population: 785
(c) 2013. Dr. Nancy ArsenaultEvery community has aunique storiesandauthentic storytellers... that are yours(c) 2013. Dr. Nancy ArsenaultEach of these represent asuccess story.What do they have incommon?
They Use Experiences to Compete onValueValue is the immunization factor. When there is no difference in valuepeople buy on price alone. Competing on value allows you to create a‘be different’ strategy that your competitors will have difﬁculty copying.Roy Osing. (2009). Be Different or be DeadCredit: Inniskillin The CN Tower:Photo Credit: CTC(c) 2013. Dr. Nancy ArsenaultThey CHOOSE to Raise the Bar on:•Engagement•Personalization•Connections•Value ... for travellers•Partnerships•Collaboration•Shared revenue•Competitive positioning•New business
A tale of two attractionsThe First Attraction ...
New and right across from the other attractionBeautiful repurposed heritage building
(c) 2013. Dr. Nancy ArsenaultOne focused onthe physicalassetsThe other onemotionalengagementGuess who’sstill inbusiness?InfrastructureActivitiesGreaterDifferentiation,Emotion, &EngagementNo to LowDifferentiation,Emotion, &EngagementCompetitivePositionPricing &ProﬁtsROIPhysicalEngagementCost Based Pricing Value-Based PricingThe First Attraction Focused on the “Stuff”ProgramsFramework: Lesley Anderson & Nancy Arsenault (2012)
The 2nd Put You In The StoryInfrastructureActivitiesProgramsGreaterDifferentiation,Emotion, &EngagementNo to LowDifferentiation,Emotion, &EngagementCompetitivePositionPricing &ProﬁtsROIROI + ROEEmotionalEngagementPhysicalEngagementCost Based Pricing Value-Based PricingThe 2nd Attraction“Engaged Travellers IN the Story”Framework: Lesley Anderson & Nancy Arsenault (2012)Partnerships+&+Connec0ng+to+People,+Place+&+CultureIncreased+Sales,+Brand+Strength+&+Advocacy
RESULTS• 451,120 visitors, 1/3 said this was the reason to visitVictoria in 2007• $30M/£15M economic impact• Fabulous exhibit but the passenger manifest and the ‘ticket’… were the ticket, to an impactful memorable experience• I received my boarding pass and entered …I saw, I sampled, Itried on, I touched, then … Discovered my fate on April 15th,1912.(c) 2013. Dr. Nancy Arsenault(c) 2013. Dr. Nancy ArsenaultWe All Have A Role To PlayInfrastructureActivitiesProgramsTo create anddeliver on thememories.Creating Memories(Operators)Building Themes, Selling Dreams(Enablers)Promotions &Media RelationsDestinationDevelopmentResearchMarketDevelopmentCollaborateto CompeteDare to beDifferent(c) 2013. Dr. Nancy Arsenault