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Ecotourism and Responsible Travel: How Important are they in the “Higher End” Traveler’s Decision Making?

September 2007

William L. Bryan, Jr., PhD. Co-Founder and Chairman Off the Beaten Path, LLC Bozeman, Montana 1

Ecotourism, Responsible Travel, Sustainable Travel, Tread Lightly, Agri-ecotourism and Other Good Sounding Terms Seem to be Everywhere Great!

This is exactly why Pam and I got into the travel business some 22 years ago.

An industry that if played out correctly could do some real good in the world.

If not it is an extractive industry just like so many others – takes more than it gives back.

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Market Research Studies In Which I’ve Been Involved Has Given Hope That Consumers Are Taking Us In The Right Direction

Adventure Collection’s study in 2005 2000 interviews through Opinion Research Corporation: 909 were considered Adventure Vacation Travelers; study focused on them.

Rural Landscape Institute’s market segmentation research study in late Spring of 2007 500 interviews done by Markitecture Agritourism focus

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Importance Of Responsible Travel When Choosing A Travel Provider

About three quarters (74%) of the respondents who have taken an Adventure Travel Vacation in the past three years say responsible travel practices are extremely important (39%) or very important (35%) when choosing a travel provider

Others: 19% somewhat important; 5% not very or not at all important and 2% don’t know

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Amount Willing To Pay More For Guarantee Of Responsible Travel Practices

Adventure Travel Vacationers (all 909) are willing to pay an average of 10% more for this type of vacation if they are assured of the travel provider’s responsible travel practices Those willing to pay more, would pay 14% or more for the guarantee of responsible travel practices 14%

Would pay 25% or more

1%

Would pay 21-24% more

6%

Would pay 17-20% more

5%

Would pay 13-16% more

21%

Would pay 9-12% more

9%

Would pay 5-8% more

28%

Would pay nothing to 4% more

16%

Don’t know 5

Age And Responsible Travel „

Travelers under the age of 35 are willing to pay more for responsible travel practices than older respondents 18 to 24 years

13%

25-34 years

12%

35 -44 years

8.5%

45-54 years

10.2%

55-64 years

10.5%

65 years

9%

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Importance Of A Rating System For Responsible Travel „

44% of the respondents say it is either extremely important (12%) or very important (32%) to have a rating system of travel providers for responsible travel 12%

Extremely important

32%

Very important

34%

Somewhat important

20%

Not very or not at all

2%

Don’t know

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Rating System Comments Age But, the youngest group of respondents (18-28) is more likely to be extremely or very interested in a responsible travel rating system than older age groups 18 to 24 years

53%

25 – 34 years

38%

35 – 44 years

43%

45 – 54 years

47%

55 – 64 years

43%

65 and older

40%

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Rural Landscape Institute Results A large percent of respondents think that it is important that a vacation is educational (58%), adventurous (56%) and environmentally focused (46%). „ Cross cultural experiences were second only to beach vacations in overall popularity „ Environmental education, authenticity; also strong interests

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Needed a Reality Check Called up the owners and/or marketing and sales director of the nine corporate members of the Adventure Collection Asked: Does ecotourism, responsible travel, carbon offset, conservation ethics come up in the sales process with a prospect and first time clients?

An almost unanimous response:

0 – 1% of the time!

Need to “drill” down more

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What I Found

Return / repeat business

Responsible travel principles figure fairly prominently in building loyalty

Must be proactive in both the sales and education processes of company’s overall program

Carbon Offset example: Natural Habitat Adventures 3 step sales process: 40% conversion Plastic water bottle education tool Relating cultural exchange, social issues, corporate philanthropic initiatives

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What I Found (cont’d.)

Assumed prospects / clients did internet research and that the company’s clearly stated corporate responsible travel program figured into their research and thus calling them

Overall research studies show

67% of travelers do internet travel research Travelers spend 13 hours per vacation on researching travel destinations

Responsible travel ethics are highly valued by company staff

In full employment areas (e.g. Banff, Bozeman) staff recruitment and retention are highly influenced by how well company is actually carrying out its responsible travel agenda Staff constantly raising the bar whether its carbon emission reduction, recycling, issue education or seeking out new sustainable options in operations

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What I Found (cont’d.)

The Company believes it is the right thing to do

Not greenwashing Not “running scared” Wants to educate the customer: it is an integral part of the experience

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Taking on Big Projects that no one is Forcing Them to do

Lindblad’s Climate Change Cruise Off the Beaten Path’s Rural Landscape Institute and seven-state national model for agritourism Geographic Expedition’s donor advised program with Tides Foundation Micato’s AmericaShare Program and Lend a Helping Hand Program also

Wildland Adventures’ Travelers Conservation Trust and their dollar a day for conservation program.

Alaska Wildland Adventures – contribute a minimum of 10% of their pre-tax earnings to conservation interests; also, have comprehensive guiding principles for all their operations.

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Regardless, from a sustainability perspective, we have our work cut out for us both in getting our companies and organizations in order, and also in convincing and selling our customers „ „

On increasing costs of their travel On some basic and formidable lifestyle changes

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