Connecting with the LGBT Traveler by MWWPR

CONNECTING WITH THE LGBT TRAVELER MWW EXPERTISE

CONNECTING WITH THE LBGT TRAVELER

“VIVA LAS GAYGAS!” Yes, it was the name of a Las Vegas burlesque show in the iconic television series “Friends,” but perhaps it was also a foreshadowing of one of the first major cities to create a targeted advertising campaign to attract Lesbian, Gay, Bisexual and Transgender (LGBT) visitors. In fact, what was once considered a niche market has grown in recent years to become an increasingly lucrative space for tourism brands. We’re talking, of course, about LGBT travel. 2

From states and destinations to tourism boards and visitor bureaus, an increasing number of brands are investing in advertising, public relations and marketing efforts to attract the LGBT travel community. LGBT travel – once limited to niche resorts, hotels and locations – has now caught the eye of mainstream brands and companies worldwide. Finally, a vast majority of businesses are learning that growing their bottom line and being inclusive of all audiences can go hand-in-hand. Recent research shows that 66%* of LGBT adults are likely to remain loyal to a brand they believe to be very friendly to or supportive of the LGBT community, leading to more and more brands actively seeking to align with the LGBT community – specifically, the LGBT traveler.

LOYALTY BY THE NUMBERS: 88% OF LGBT ADULTS SAY THEY ARE LIKELY TO CONSIDER A BRAND THAT IS KNOWN TO PROVIDE EQUAL WORKPLACE BENEFITS FOR ALL OF THEIR EMPLOYEES Source: Harris Interactive

72% OF THE LGBT POPULATION FEEL IT IS ‘EXTREMELY/ VERY IMPORTANT’ TO BUY PRODUCTS FROM GAYFRIENDLY COMPANIES Source: Here Media 2013 Culture Scouts Study

47% OF LGBT ADULTS ARE MORE LIKELY TO CONSIDER A BRAND THAT HAS TAILORED AN AD TO THEM Source: Harris Interactive

The fact is, what may seem like a niche market is actually quite a diverse one. The LGBT population is the only segment that includes every other demographic out there – from gender and age to ethnicity and geography, the space allows brands to offer new and differentiated content to a diverse, loyal and, most importantly, influential audience.

* Harris Interactive

CONNECTING WITH THE LBGT TRAVELER

HEY, BIG SPENDER: Thanks to tremendous spending power, the LGBT community has an unparalleled ability to influence the mainstream marketplace.

AN ESTIMATED 16 MILLION AMERICANS IDENTIFY AS LGBT, UP 26% OVER THE PAST FIVE YEARS

Source: Experian/Simmons 2012 LGBT report

THIS COMMUNITY OF 16 MILLION HARNESSES MORE THAN $830 BILLION IN SPENDING POWER

Source: Witeck Communications

THE MEAN HOUSEHOLD INCOME (HHI) FOR MARRIED/PARTNERED GAY MEN IS $116K, AND FOR MARRIED/PARTNERED LESBIANS, IT’S NEARLY $100K

Source: Experian/Simmons 2012 LGBT report

COMPARE THIS TO THE MEAN HHI FOR MARRIED/ PARTNERED STRAIGHT COUPLES, WHICH NETS OUT TO BETWEEN $92K AND $94K

Source: Experian/Simmons 2012 LGBT report

SIMILARLY, THE AVERAGE ANNUAL CPG SPENDING IS 25% HIGHER IN SAME-SEX PARTNERED HOUSEHOLDS THAN THAT OF THE AVERAGE U.S. HOUSEHOLD

Source: Nielsen State of LGBT Consumer, January 2013

GAY MEN HAVE 16% HIGHER DISCRETIONARY INCOME THAN THEIR STRAIGHT COUNTERPARTS

Source: Experian/Simmons 2012 LGBT report

ON THE MOVE: Combine loyalty with spending power and an affinity for travel, and it’s clear that this trifecta of traits make the LGBT travel community an extremely unique one, and a desirable one for brands at that. As a result, brands are taking into consideration the various factors that go into shaping travel interests, and targeting specific segments of the LGBT traveler community.

IN THE PAST YEAR, 1/3 OF GAY MEN AND LESBIANS (32% AND 35%, RESPECTIVELY) INCREASED THEIR OVERALL TRAVEL Source: CMI 2012 LGBT Travel Study

43% OF GAY MEN AND 34% OF LESBIAN WOMEN HAD A VACATION OF FIVE DAYS OR MORE IN THE PAST 12 MONTHS 51% OF US LGBT PASSPORT HOLDERS HAVE USED THEM IN THE PAST YEAR Source: 2012 CMI LGBT Community Survey

74% OF THE LGBT POPULATION HOLDS A PASSPORT COMPARED TO ABOUT 32% OF THE TOTAL U.S. POPULATION Source: CMI 2012 LGBT Travel Study and US Travel Association

CONNECTING WITH THE LBGT TRAVELER

HOW TO MATTER MORE TO THE LGBT TRAVELER: So how can brands tap into the priorities that matter most to the LGBT travel community? Similarly, how can brands ensure they avoid the things that matter least to the LGBT traveler? According to the Matter MoreTM Project, one of the largest known studies of American life priorities and conducted in-house in 2014, MWW identified some of the top qualities that matter most to LGBT travelers:

• Being treated respectfully • F eeling appreciated • Welcoming LGBT families and their extended families • Being true to oneself • S tanding up for what you believe in and for others who stand up for the LGBT community

CONNECTING WITH THE LGBT TRAVELER: “Social, cultural and political advances, throughout many diverse cultures on all continents, opened travel options for many more gay people who no longer choose to conceal their identities as they visit new places, make friends and lasting relationships and experience new destinations.” -UNWTO Global Report on LGBT Tourism Our world has changed dramatically in recent years. Cultural and political shifts have changed perceptions of the LGBT community and strengthened their market power. As marriage equality continues to expand from coast to coast, and a sense of feeling loved and having a spouse being noted as high priorities, savvy brands can leverage the growing wedding market. Destination weddings and honeymoon locations will only grow in popularity as LGBT couples continue to wed. To be successful in this market, brands must ensure that promotional materials are inclusive of all couples in their imagery and language – replacing “Bride and Groom” with “Couple.”

A brand that does it right? Amtrak, which plays to the quality of being true to yourself and standing up for what you believe in with its “Ride with Pride” site that offers information on LGBT-related train travel and even highlights train routes leading to some of the biggest pride events throughout the country. Its print ads have also featured same-sex couples with their families enjoying “priceless family moments” on the train.

The Las Vegas Tourism Board, with its tongue-in-cheek commercial where a hotel clerk mistakes two men at the check-in desk as a couple, showcases its adventurous spirit, which helps to combat playing by the rules and having a routine. In fact, the city’s 2012 ad campaign, “Everyone’s Welcome, Even Straight People,” plays to the notion that it’s not about standing out, but rather blending in.

Historically, LGBT people have found community through non-profit organizations. As an even stronger truth today, LGBT non-profits have become a meaningful way for brands to show their support for the community and a powerful marketing tool. This is especially true in the travel space whether it is a local pride festival or a black tie gala. Sponsoring events and organizations is an

opportunity for companies to show authentic alignment with LGBT travelers and showcase their brands, such as American Express, which sponsored the San Francisco pride parade earlier this year. Times they are a-changin’! Strategic companies are leveraging the power of the LGBT audience, and standing on the right side of history, all while increasing the bottom line.

For additional information about MWW’s proprietary research, or to learn how MWW’s LGBT and travel practices can help take you where you want to go, please feel free to contact us:

STEPHEN MACIAS

SENIOR VICE PRESIDENT / NATIONAL LGBT PRACTICE LEAD 202.585.2282 | smacias@mww.com

JOE KEENAN

VICE PRESIDENT / LGBT PRACTICE 310.986.6314 | jkeenan@mww.com

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