Transcript The Traveling Public - Utah State University Extension

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
 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
Railroad Travel
$29,378,200
Cruise Ship Travel
$249,956,700
Domestic Airline Travel
$504,542,800
Foreign Airline Travel
$220,823,900
Public Transportation
$45,934,000
Travel Services
$659,881,000
Domestic Hotels/Resorts
$1,003,755,600
Foreign Hotels/Resorts
$184,226,400
Domestic Tourism Promotion
$326,937,100
Foreign Tourism Promotion
$146,971,800
Amusement, Water, Theme Parks
$285,478,800
TIME PERIOD TOTAL
$3,657,886,300
MEDIA
CATEGORIES:
Print
(Magazines &
Newspapers)
Outdoor
TV
Radio
Source: 2001
Competitive Media
Reporting
and Publishers
Information Bureau
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
 Evolution of the Experience
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
Transition to an Experience-Based Economy
Amenity-Based Experiences
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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!


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Leisure-entertainment lifestyle economy
Spending, jobs, and taxes
Leisure spending projected to be 50% of GDP by 2015.
Continuing and Emerging Trends
 It’s not just the actual vacation experience!

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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
 Increase in Visits to Friends and Relatives
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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
 Visiting Friends and Relatives (VFR) Traveler

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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
 Continued Consumer Focus on “Mini-Trips”

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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
 Spur-of-the-Moment Trips
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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
Type of Destination Visited on Most Recent Weekend Trip
Among Past-Year Leisure Travelers Who Took a Weekend Trip
Theme or Amusement Park
State or National Park
Lake Area
Mountain Area
Ocean or Beach
Small Town or Rural Area
City or Urban Area
0
10
20
percentage
30
40
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
 Customization to a Customer of One
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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 Impact of the Internet
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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
 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
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
 Older Matures—
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GI Generation (71+ years old)
Depression (61-70 years old)
 Matures—
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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)
Who are our travelers
and how big is the market segment?
GI
Generation
9%
Depression
7%
Millennials
8%
War Babies
6%
Gen Y
26%
Boomers
28%
Gen X
16%
U.S.
Overall vs.
Population
Segments
by
Category
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)
 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)
 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
 College educated
 Married couples
 50% have a household
income of $50K+
 Interest in familyoriented 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)
 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)
 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
 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
 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
 One-third of leisure travelers come to Utah to
visit friends and family.
 One-fourth come to enjoy a general vacation.
 Less common—
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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
Top Ten Activities of Domestic Overnight Visitors to Utah
Sporting Event
Hunting/Fishing
Group Tour
Camping
Skiing
Hiking/Biking
Cultural Site
Historic Site
Touring
National/State Parks
Source:
D.K. Shifflet &
Associates, Ltd.
1998 Directions
Data
0
5
10
15
20
Percentage of domestic overnight visitors
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
Fastest Growing Activities
Activities Adding Most Participants
ACTIVITY
# in 2000
%
Growth
ACTIVITY
Growth
# in 2000
Bird Watching
71.2 Mil.
235.9%
Walking
85.4 Mil.
179.0 Mil
Hiking
73.1 Mil.
195.9%
Bird Watching
50.0 Mil.
71.2 Mil.
Backpacking
23.4 Mil.
165.9%
Hiking
48.4 Mil.
73.1 Mil.
Snowmobiling
66.9 Mil.
107.5%
Swimming
36.4 Mil.
92.9 Mil.
Walking
179.0 Mil.
91.2%
Sightseeing
32.7 Mil.
114.0 Mil.
Off-Road Driving
27.9 Mil.
89.2%
Picnicking
31.8 Mil.
116.6 Mil.
Primitive Camping
32.2 Mil.
81.9%
Bicycling
27.4 Mil.
83.9 Mil.
Developed Camping
52.8 Mil.
76.0%
Developed Camping
22.8 Mil.
52.8 Mil.
Downhill Skiing
17.7 Mil.
66.9%
Motor Boating
17.8 Mil.
51.4 Mil.
Swimming
78.1 Mil.
64.4%
Off-Road Driving
17.3 Mil.
36.7 Mil.
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
 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
Traveler Characteristic
U.S. Travelers
Overseas Travelers
Household Income
$58,300
$72,800
Avg. Per-Day Spending
$87
$81
Avg. Length of Stay
3.6 nights
5.7 nights
Purpose of Trip
80% Leisure
81% Leisure
Avg. Travel Party Size
2.7 persons
1.9 persons
Party Composition
68% adults
90% adults
Accommodations
50% Hotels/Motels
76% Hotels/Motels
Leisure Activities
19% National/State
Parks
78% National/State
Parks
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
 Today’s travelers seeking new and unique,
amenity-based experiences.
 Utah has…
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The icons—from redrock to world class alpine
(natural and cultural resource-based amenities)
Public sector mandate and interest
Private sector interest and involvement
Tourism
Planners &
Developers
Marketers
&
Promoters
Citizens
Residents
Special
Interest
Groups
Elected
Officials
Successful Rural Tourism
Development
Government
Agencies
Resource
Managers
Conservation
Groups
Media
Businesses
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: [email protected]
Visit the IORT Website at www.cnr.usu.edu/iort