Kansas 2006 Travel

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Kansas2006 Travel Tourism Trends October,2006
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2006

• 2006 will be good - - finally outpacing 2000
  levels - - but it is a completely different
  world
• major behavior change
• will affect our future

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Kansas 2006 Trends

• Potential for growth Outstanding
• I-70, I-35, I-135 Rivers of Money
• Industry in its infancy needs to build skill
  sets in tracking and growing
• Municipalities leadership need to be enrolled

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Kansas Performance

• Industry Performance Average
• Hotels Doing very well
• Attractions Struggling
• Retail Up
• Dining Up
• Visitor Information Not sufficient
• Biggest need Orientation Facilitation

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Kansas Destinations

• Understand customer segments
• Quit operating same old way
• Orientation facilitation
• Increase per-visitor spending
• Educate enroll community leaders
• Coach attractions amenities
• Be the voice of the customer

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Average Stats

• Lodging Customers
• 30 Business
• 20 Pass-thru
• 15 Meetings
• 10 VFR (weddings, reunions, etc.)
• 10 Leisure
• 10 Sports
• 5 Motorcoach/other
• Day Trip Customers
• 50 100,000

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Average Stats

• Lodging Customers Daily Expenditures
• 60 Hotel
• 50 Food
• 30 Gas/Transportation
• 50 Retail
• 5 Attractions/Amusements
• 195 TOTAL
• Day Trip Customers - Daily Expenditures
• 0 Hotel
• 30 Gas/Transportation
• 20 Food
• 30 Retail
• 5 Attractions/Amusements
• 85 TOTAL

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Average Stats

• Lodging Average 600 rooms
• 600 x 365 219,000 available rooms nights
• x 60 131,000 sold rooms night
• x 195 25,623,000
• Day Trip Customers - Daily Expenditures
• 100,000 total day trippers
• x 85 8,500,000
• 34,123,000 Total Local Revenues

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Tax Relief

• Lodging Average 600 rooms
• 600 x 365 219,000 available rooms nights
• x 60 131,000 sold rooms night
• x 195 25,623,000
• x 5.3 State 1,358,019
• x 1 County 256,230
• Per household Tax Relief 100
• Day Trip Customers - Daily Expenditures
• 100,000 total day trippers
• x 85 8,500,000
• x 5.3 450,500
• x 1 County 85,000
• Per Household Tax Relief 100
• 34,123,000 Total Local Revenues

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Lodging

• Data Source Smith Travel Research STR Report
• RTM 2006 projection 64.1 (plus growth in
  inventory)

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Lodging - RevPAR

• Source Smith Travel Research STR Report

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Lodging in Kansas

• of local lodging by age type
• Management of aging inventory
• Recruitment of high end properties
• Day-to-day relationship with hoteliers
• Smith Travel Report STR
• Know their business

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Lodging Trends
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Airlines

• Source Air Transport Association
• Prices still WAY below 2000 levels
• Losses in 2005 10 Billion
• U.S. Fleet 20 smaller
• 160,000 jobs cut since 2000
• Perhaps break even in 2006

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Kansas Air Visitors

• Know what of your visitors include air
• Know where they get information for trip planning
• Orientation Facilitation

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Cruise Industry

• Cruise Lines (CLIA)
• Out-performed all other travel segments since
  2000

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Convention/Meeting

• U.S. Business/Convention Travel (domestic)
• The overall convention marketplace is declining
  in a manner that suggests that a recovery or
  turnaround is unlikely to yield much increased
  business for any given community, contrary to
  repeated industry projections.
• The Brookings Institution 1/05

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Convention Meetings

• Customer perceptions of your strengths
  weaknesses
• What types of meetings are you successful in
  recruiting? (type, geography, price,
  demographics)
• Which meetings had the highest satisfaction?
• Which meetings spent the most?
• Where are other similar groups?

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Domestic Leisure

• U.S. Leisure Travel (domestic person trips)
  (TIA) Increase has never faltered

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Kansas Leisure Tourism

• Respite or part of longer trip.or
  shopping/dining/fun getaway
• Vacations demanded
• Growth in family travel
• Growth in affinity travel
• Attendance to attractions down
• Shopping, dining, sightseeing
• Know your Must Sees and Must Dos

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Kansas Leisure Trips

• Extend stay of passers-thru
• Increase per-visitor spending
• Tell travelers the Must Sees
• Attractions Know your visitor segments
• Target major feeder markets pass-thru
• Be realistic

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Attractions

• Challenges
• Decline in attendance to historic sites and less
  animated museums
• 16,500 museums in U.S.
• 9,000 house museums in U.S.
• Boring vs. engaging
• Give me fun or else
• Desire for less structure
• ½ price ticket then sell food, beverage, retail
• Store, Door More

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Attractions

• Expect decrease in attendance track stats
• Know your customer segments
• Orientation Facilitation
• Gift Shop
• More connection with each visitor rate their
  satisfaction
• More per customer
• Store, Door More
• Open in the evenings unique programming in
  evenings

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Consumer Confidence Index

• Americans are optimistic, but cautious.
• Jan Sept 06
• 2000 - 2006

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Business Travel

• Business travel will finally
• return to 2000 levels in 2006
• 48 travel for work less than 5 years ago (Robert
  Half Management Resources)
• 45 of business travelers in managed programs
  used video-conferencing or something instead of
  travel in 2005 (NBTA)
• Typically 1/3 of lodging occupancy

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Kansas Business Travel

• Know your statistics
• Men vs. Women
• What is open after 500PM?
• What do they need to know?
• How can you increase their spending?

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Group Tour

• Great Potential
• Affinity, affinity, affinity
• Customized tours increased from 14 of biz to 56
  in 2005 (USTOA)
• Gone are the days of the sold-out per capita
  tour
• Custom designed for Baby Boomers or other age
  groups (Dr. on board)
• Freedom without the hassle
• Cruise ship on land
• Something you cant get any other way
• Wireless on board other tech
• Huge growth in student travel now 25 of
  international travel (SYTA)

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Kansas Motorcoach

• Affinity, affinity, affinity
• Good, mid-priced meal
• Evening entertainment
• Part of longer trip

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TOP Ten Trends 2006

• 1. Growth in 2006
• in overall travel tourism
• revenues
• We must learn the new behavior patterns

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TOP Ten Trends 2006

• 2. Lodging Setting new records
• Growth in high end
• out-paces growth
• in low end

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TOP Ten Trends 2006

• 3. Airlines Light at the end of
• the tunnel

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TOP Ten Trends 2006

• 4. Business Travel Controlled
  Growth
• Cost-contained travel
• Per-diem paid direct to employee
• On-line deal searching

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TOP Ten Trends 2006

• Demographics
• Frontier of opportunity
• Develop age-appeal products
• Baby Boomers still best spending
• Affinity groups
• Family groups

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TOP Ten Trends 2006

• Changing demographics
• Gen Group 2000 2005 2010 2020 2030 2040
• War Gen 80 85 90 95 100
• Silent Gen 65 70 75 85 95 105
• Baby Boom 47 53 58 68 78 88
  
• GenX 29 34 39 49 59 69
• Gen Y 8 13 18 28 38 48
• By 2010 ½ of all Americans will be over 40

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TOP Ten Trends 2006

• Consumers Time Poverty
  
• Over 30 expect to take fewer trips. Reason?
  Not able to get away from work.
• Nearly 50 of all Americans report time poverty
  - report desire for all-inclusive to save time
• (Yesawich, Pepperdine, Brown Russell/Yankelovich
  )

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TOP Ten Trends 2006

• Safety, personal comfort and convenience are
  primary travel concerns
• Safety
• Less hassle / non-stress
• Give me comfortable
• Up to 40 of decline in lodging occupancy related
  to safety and convenience
• (PricewaterhouseCoopers)

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TOP Ten Trends 2006

• 8. Internet Necessity
• 78 of Americans used the internet to find travel
  in 2005
• By 2007 internet will account for 30 of total
  market
• Travel is 1 on-line purchase category

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TOP Ten Trends 2005

• Vacations
• - Quick/short (4-5 day)
• - PLUS Longer sabbatical
  vacations
• 4-5 short trips per year on avg.
• 2 weeks But not every year
• Traveler looking for products that simplify life
  or offer escape and luxury (Source
  MarketResearch.com)

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TOP Ten Trends 2004

• 10. Custom-fitted travel
• - Not a one-size fits all anymore

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Other Trends

• Growth in off-season travel
• Increase in winter vacations.
• 59 for at least 5 days.
• 55 U.S.
• 13 Caribbean
• 7 Asia
• 5 Europe
• (Source National Geographic Traveler and Yahoo!
  Travel)

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Other Trends

• Growth in RV market
• (8 million Americans
• own RVs)
• Traveling with pets
• catering to pets
• (14 of all Americans)

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Thriving in 2006

• Research is the answer to grow with the new
  behavior patterns!
• Research as a foundation
• MUST know your
• customer!

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How to in 2005?

• Research
• Who why (age, origin, trip purpose, etc.) Look
  for changes since 2000
• Who is NOT coming why
• How do they choose destination?
• What source of info do they use?
• Expenditures by category

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Critical Review

• Determine very strategically which market
  segments
• you can target
• that will really be satisfied
• and will spend the most.

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Kansas Priorities

• Visitor Guide
• Website
• State travel guide
• Print ads billboards
• PR
• Maps
• In-room promotions
• Research
• Drive product development (hotels, dining,
  attractions, shopping)

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• Judy_at_RTMnet.com
• www.RTMnet.com