Travel and Tourism Trends 2012
A Look at the Numbers
2012 Ontario Travel Forecast Results
Disposable Income Visits to Ontario Overnight Visits to ON
3.9% 2.1% 1.2
Huron County 2009 Statistics Canada Reports
854,000 total visits; 389,000 overnight visits 94% Ontarians (82% ON); 4% U.S. (11% ON) Middlesex, Waterloo, Perth, Huron, Bruce – 57% all visits Top 5 + Halton, GTA – 60% overnight visits Main purpose: pleasure - 60% (43%), VFR - 37% (43%) Overnight: pleasure/VFR – 98% (88%)
Source: Ministry of Tourism and Culture Fall 2011 Fall Travel Forecast Results
Tourism Trends in Ontario
Consumers are Caught in the Time Crunch:
Adults – longer & less standardized work hours Longer commutes Technology is never turned off Kids and parents over-programmed Sandwich generation – dealing with families at home and aging parents Increasing costs of leisure/travel activities
Time Crunch Implications
Spontaneous Travel
Greater chance of responding to specific offers Need to know your consumer preferences Need to develop qualified database through visitation or with good partnerships Find the balance between too much of a good thing!
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Newsletters can present timely offers to drive sales at a time when there is excess capacity
Time Crunch Implications
Intergenerational Travel
Survey by netmums (U.K.) 75% planning a holiday with grandparents in coming year Ontario resorts, travel to discover ancestry and former pastimes (steam trains, working farms, Maple Syrup Festivals) increased popularity
Travel for Special Occasions
Milestone Birthdays Milestone Anniversaries Reunions with old friends
Competition is fierce
Competitive marketplace, Value oriented Ontario outbound (Jan – Sept 2011) ↑ 9.9% Ontario inbound (Jan – Sept 2011) ↓ 2.1% Choice and price options more competitive than ever (need to know customers better than ever)
Growth of travel deals websites
Travelzoo
Groupon: Groupon Getaways Living Social – Escapes Airfarewatchdog.com SniqueAway- hotels in private sales -7 days or until sold out Kayak.com/explore – what’s available at a specific
pricepoint
Groupon – What’s the deal?
$3 billion in worldwide revenue in 2011 Discounts 50 to 90% Minimum number of purchases required Merchant generally receives 50 – 60% of cost to consumer Rice University study – 66% profitable, 40% won’t run again in next 6 months Must be carefully planned as part of a marketing initiative Works for surplus inventory or to drive travel at slow times Need to be cautious about cannibalizing existing customers – could be a one-off
New Technologies will dominate
Companies will use social media to get you to be a brand ambassador – points for booking, facebook promos & contests
Your friends will influence your travel decisions through Social Media
Gogobot, Trippy, Tripped Off, AirBnB Uploads of trip photos on Facebook Geo-locators will be tied to what you’re doing
Changing Demographics
Ageing
2030 seniors will account for 21.9% Ontarians
1.8 m, 65+, 2009 3.7 m, 65+, 2030
↑ health care, travel; ↓ consumer goods
Growth in large urban centres – GTA: 46.7% of Ont
population in 2009; 50.4% in 2030
Changing faces
By 2017 1 in 5 Canadians will be a member of a visible minority (South Asian, Chinese will be the largest groups – 20% GTA)
Demographics Implications
Ageing population
Increased disposable income for travel
Increase in soft outdoor – walking, boat tours Potential for off–peak travel Stay away from weekend crowds, busy family time personal enrichment, educational learning
Urban Dwellers
Access out of the City? Nightlife implications – quaint vs boring
Increasing Diversity Long-term investment approach – niches within niches Product Development and Integration – what are the barriers Communication Strategies how and in whose voice? Grassroots and events marketing
From Activities to Experiences
High Service Expectations
Customization of Experiences
Personal Concierge
Niche vs Mass Experiences
Excellent customer service at all price points NO service surprises – broadcast on Trip Advisor
Stand Out in 2012