Travel and Consumer Trends

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Travel and Consumer Trends

• Ohio Travel Association
• Fall Conference
• October 2004

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Overview

• Key Travel Trends
• Yankelovich Leisure Travel Monitor
• Travel Industry Association of America
• Key Consumer Trends
• Psychographics - Iconoculture the future aint
  what it used to be
• Yankelovich Rocking the Ages (Generational
  Marketing)

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Yankelovich Leisure Travel Monitor 2004
4
Brand Charisma

• The 2004 Monitor focuses on building Brand
  Charisma. The report discusses that consumer
  are disenchanted with the marketplace and
  business as usual. Customers must be resold on
  the marketplace in general and with the specific
  brand.

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Brand Charisma

• Brand Charisma is the ability of a brand to
  inspire and attract consumers with such passion
  that they aggressively seek the brand out.

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Brand Charisma

• For a brand to have charisma it must
• Embody a compelling sense of leadership through
  integrity, authenticity and a tangible vision of
  the future
• Display momentum, imagination and élan
• Be a lightening rods for a positive emotion
• Care about consumers more than they care about
  themselves
• Recognize when the consumers mindset or
  lifestyle changes and immediately lets the
  consumer know it knows

7
Marketing Trends

• Reselling a consumer requires
• Letting go of conventional assumptions of what
  ill motivate and satisfy consumers because these
  assumptions are now in danger of being worse than
  unhelpful if they speak to a consumer mindset
  that no longer exists.
•  
• Starting from the premise that consumers will
  actively resist standard marketing efforts.

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Marketing Trends

• Acknowledging that many elements of value have
  either become a cost of entry or have lost their
  power because they have become commonplace.
•  
• Identifying emerging, relevant payoffs that will
  offer consumers a sense that what they do and
  what they buy and how they buy it adds
  meaning and satisfaction to their lives.

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Trip Experiences

• Attributes Considered Extremely/Very
  Desirable 2003 2004
• Experimentation/Fantasy/Ambiance
• Beautiful Scenery 84 86
• A place I have never visited 75 81
• A beach experience 63 66
• An opportunity to eat different cuisines 52 59
• A hotel with casually elegant ambiance 49 52
• Nightlife and live entertainment 47 52
• Option of scheduling vacation activities
• prior to arrival 47 52
• A hotel with an historical ambiance 40 46

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Trip Experiences

• 2003 2004
• Going to theme parks 44 43
• A destination that is remote/untouched 43 43
• A hotel or resort with a distinctive theme
• or atmosphere 36 42
• A hotel with a formal/elegant décor 36 35
• Going to a spa 33 34
• A boutique hotel - unusual atmosphere 30 32
• Learning a new skill or activity 30 30
• Being able to gamble 25 25

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Trip Experiences

• 2003 2004
• Physical Activities
• Getting exercise 45 45
• Hiking and outdoor adventure 39 42
• Snorkeling or scuba diving 30 39
• Bicycling trips through the countryside 23 25
• Snow skiing 19 17
• Playing golf 15 16
• Mountain biking 12 15
• Snowboarding 12 10
• Playing tennis 7 6

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Trip Experiences

• 2003 2004
• Other activities
• Participating in activities
• with children 69 65
• Visiting arts/architecture/
• historical sites 49 52
• A hotel having a kids club or
• organized family activities 43 41
• Shopping 45 39

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Trip Experiences

• 2003 2004
• Familiarity/Control
• Safety of a hotel or motel 86 84
• Safety of a destination 77 78
• A place I have visited before 54 55
• Having a separate childrens/
• teens program 27 30
• Having access to the Internet
• or an online service 29 26

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Trip Experiences

• 2003 2004
• Pricing
• An all-inclusive vacation
• price (air transportation, 61 64
• accommodations, food, transfer
• to the hotel or resort and
• some recreation)
•  
• An all-inclusive resort price
• (accommodations, food, 56 62
• beverage and recreation)

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Types of Leisure Trips Taken

• 2003 2004
• VFR 50 54
• Naturalistic 36 37
• City 21 28
• General Sightseeing 28 26
• Sporting Event 9 8
• Gambling 10 11
• Theme Park 10 10
• All-inclusive Resort 6 9
• Cruise 5 6
• Golf 3 2

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Confidence in Selected Information Sources

• 2003 2004
• When considering travel, very confident in
• Recommendation from family 80 83
• Information in travel guidebooks 52 54
• Information on a website 41 49
• Travel agent 46 46
• Information in travel brochures 34 38
• Articles in newspapers/mags/TV 34 38
• Information in travel advertising 21 26

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Internet Access

• 2003 2004
• Used internet to
• Obtain travel info and pricing 57 63
• Make a travel booking 38 45
• Hotel reservations 67 73
• Airline reservations 65 64
• Car rental reservations 29 32
• Complete vacation reservations 21 20
• Average number of sites visited N/A 3.9

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Usage of Travel Web Sites

• To make travel reservations
• 2003 2004
• Travelocity.com 28 37
• Expedia.com 25 31
• Airline brand web site 22 29
• Hotel brand web site 21 24
• Orbitz.com 13 19
• Car rental brand 9 15
• Priceline.com 11 14

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Usage of Travel Websites

• To make travel reservations 2003 2004
  
• Hotels.com 12 13
• Search engine 6 11
• Hotwire.com 4 7
• AOL Travel 5 6
• Country or destination
• promotion board-specific 4 5
• Trip.com 2 1
• Other 8 10

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Usage of Travel Websites

• To obtain information and pricing
• 2003 2004
• Travelocity.com 47 55
• Expedia.com 41 48
• Airline brand web site 30 36
• Search engine 25 36
• Orbitz.com 28 35
• Hotels.com 23 32
• Priceline.com 30 30
• Hotel brand web site 25 30

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Usage of Travel Websites

• To obtain information and pricing
• 2003 2004
• Country or destination
• promotion board-specific 15 18
• Car rental brand 14 18
• Hotwire.com 13 17
• AOL Travel 13 13
• Trip.com 6 4
• Other 13 2

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Travel Industry Association of America

• www.tia.org

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Total Domestic U.S. Person-trips - 2003

• Total number of trips 1,140,000,000
• Purpose of trip
• Leisure Travel 82
• Business/convention 12
• Business/pleasure 6
• Person trip one person traveling 50 miles (one
  way) or more away from home and/or overnight. A
  trip is one or more persons from the same
  household traveling together.

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Total Domestic U.S. Person-trips - 2003

• Modes of Transportation
• Auto/truck/RV 78
• Airplane 16
• Rental car 3
• Bus/Motorcoach 2
• Train/ship 1

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Top Activities for Domestic Travelers

• Shopping 30
• Attend a social/family event 27
• Outdoor Activities 11
• City/Urban Sightseeing 10
• Rural Sightseeing 10
• Beach Activities 10
• Historic Places, Museums 8
• Gambling 7
• Theme/Amusement Park 7
• National/State Park 7

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Top Activities for Domestic Travelers

• Seminar/Courses 6
• Nightlife/Dancing 6
• Sports Event 6
• Zoo/Aquarium/Science
• Museum 5
• Water Sports/Boating 5
• Performing Arts 4
• Cultural Events/Festivals 3
• Golf 2
• Art Museums 2

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Internet Usage

• 56 of the 213.9 million adults in the U.S.
  currently use the Internet - 120 million adults
  (2004)
• Usage has flattened
• 82 indicate they are travelers
• Among the 145.7 million past-year travelers, 67
  use the Internet
• Frequent travelers (5 or more trips) have high
  likelihood of using 74

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Internet Usage for Travel Planning - 2004

• 65 of online travelers say they consulted the
  Internet to get information
• 26 used Internet for business travel planning
  (similar to 2003)
• 94 of trips planned were for leisure
• 76 did trip planning online 69 in 2003

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Internet Usage for Travel Planning - 2004

• Sites Visited
• Online travel agency sites 70
• Expedia, Travelocity, Priceline
• Company-owned sites 60
• Airlines, hotels, etc.
• Search engine websites 59
• Destination sites 50

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Internet Usage for Travel Planning - 2004

• Online travel planners do a variety of trip
  planning activities on the Internet
• Searching for airfares and schedules 69
• 62 in 2003
• Rental cars 41
• 36 in 2003

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Online Booking

• The share of travel planners who also book online
  continues to grow
• 70 of online travel planner are booking or
  making travel reservations online
• Today there are 44.6 million online travel
  bookers
• Purchases
• Airline tickets 82
• 75 in 2003
• Overnight lodging 67
• Annual consumer spending (mean) 2,719

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Planning vs. Booking

• Online Travelers 2004
• Type of Website Plan Book
• Online travel agency 70 69
• Company sites 60 54
• Search engines 59 31
• Destination sites 50 22
• Special Interest 16 5
• Travel Guide sites 11 9
• Newspaper/Magazine 11 4
• Community sites 5 3

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Internet Users

• Women 51
• Men 49
• Boomers (35-54) 47
• Married 66
• Children at home 42
• Employed full-time 62
• Annual HHI 73,000

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E-Marketing

• Travel suppliers such as hotels, airlines and
  online travel agencies have been successful in
  using email marketing to communicate with current
  and potential customers (whether or not booked
  travel)
• 37 of all online travelers (36 million) have
  registered or subscribed to travel websites
• 47 say they have registered with three or more
  travel websites

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E-Marketing

• Online promotions seem to have an influence over
  consumers
• In 2004, 11 of online travelers claimed they had
  taken a trip they otherwise would not have taken
  based on an emailed travel promotion, discount or
  offer (the same share as in 2003)

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Psychographics Trends

• Iconoculture the future aint what it used to
  be Vickie Abrahamson, Mary Meehan, Larry Samuel
  1997

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Psychographics Trends

• People are collecting experience Merit Badges
• Vacationers are collecting experiences rather
  than consuming things. It is no longer what one
  has, but what one does. Destinations are about
  the experience rather than the attributes. Within
  experience collecting, the following values
  exist
• a.     Learning
• b.     Growth
• c.     Freedom
• d.     Exhilaration
• e.     Fun

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Psychographics Trends

• techno.me
• Personal technology is changing everyday and is
  changing the rate at which services need to be
  delivered. Technology is also becoming more
  personalized. The values within this area are
• a.     Personalization
• b.     Customization
• c.     Empowerment
• d.     Access
• e.     Ease of living
• f.      Many are seeking an anti-techno getaway
  to escape technologys pervasive existence

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Psychographics Trends

• Homegrown
• People have a passion for the real America and
  authentic experiences. Arts and crafts and
  nostalgia are important. Within this area
  experiences such as antiquing, authentic foods,
  backroad experiences, kitsch, festivals and rural
  travel are important.
• a.     Authenticity
• b.     Rediscovering the familiar
• c.     Honoring your roots
• d.     Curiosity
• e.     Discovery
• f.     Romance

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Psychographics Trends

• Fingerprinting
• People, especially boomers, are on a search for
  personal identity. This is the one area where
  they seek affinity with groups and others with
  similar quests. This explains the rise in
  personal coaches and holistic journeys. Affinity
  travel is the niche of the future. Be a dream
  maker. Fulfill a fantasy. The values that relate
  to Fingerprinting are
• a.     Consumer identity
• b.     Individuality
• c.     Do-it-yourself
• d.     Affinity paring with others of like mind
  
• e.     Self-esteem
•  

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Consumer Behavior Trends

• Natural High
• People are seeking a natural experience and seek
  balance in their hectic lives. Vacationers
  search for an experience that allows them to
  unplug from hype and stress. This is the halo of
  rural, simple life. Spas, self-discovery camps,
  spiritualism, eco-tourism all fit within this
  area.
• a.     Well-being
• b.     Fitness
• c.     Balance
• d.     Vitality
• e.     Conservation
• f.     Spirituality
• g.     Environmentalism

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Generational Marketing

• Rocking the Ages The Yankelovich Report on
  Generational Marketing J. Walter Smith Ann
  Clurman 1997

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Generational Marketing

• Generational Marketing
• How we act depends on our generation
• Influences
• purchase decisions
• brand awareness
• travel experiences
• Opportunities and Challenges
• Not the only factor influencing people

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Generational Marketing

• Matures (1901-1924, 79-102)
• Silent Generation (1925-1942, 61-78)
• Baby Boomers (1943-1960/2, 43-60)
• Gen X (1961/3-1981, 22-42)
• Generation Y (1982-2000, 3-18)
• Generation 9/11 (2001-present, 2 ?)

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Generational Marketing

• Matures
• On the road from scout meetings to Sun City, this
  generation
• Triumphed over the Great Depression
• Vanquished the Germans and Japanese
• Built suburbs and shopping malls
• Instituted the New Deal
• Built interstate highway system
• In 1927, Charles Lindbergh made the first
  transatlantic flight
• accomplished their goals through HARD WORK

46
Generational Marketing

• Matures
• Tremendous growth in country
• Feel they owe the country
• Look for value
• Enjoy community, commonalities, connecting
• Getting to the end of their travel years

47
Generational Marketing

• Silent Generation
• Overlooked
• Korean War Forgotten war
• Has the most disposable income
• Soft adventure
• Need to feel important
• Like understated luxury

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Generational Marketing

• Baby Boomers
• Me generation
• Put individual desires ahead of good of a group
  job ahead of family
• Huge economic gains
• Brand savvy
• Feel the country owes them
• Resent authority
• Passion for introspection and self-enlightenment

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Generational Marketing

• Baby Boomers
• VIP services
• Forever young
• Nonconformists unless its serving them
• Participants
• Adventure
• Diversity pack lots into one vacation
• Spas holistic destinations
• Nostalgia

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Generational Marketing

• Douglas Brinkley surmised that the street-wise
  instinct, ground in disillusionment with many
  aspects of American life, was an understandable
  reaction, which could also have been praised as
  pragmatism. Xers were aloof, he said, because
  they were wary of cliches and propaganda.
  Anti-commercialism had been a feature of both the
  Nirvana-led grunge culture and the novel
  Generation X, which preached Coupland's concept
  of Lessness - a philosophy whereby one
  reconciles oneself with diminishing expectations
  of material wealth.¹

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Generational Marketing

• Generation X
• Being authentic means showing savvy
• Distrustful
• Real
• Wired
• Unafraid to try something new, challenging
• Family
• Spiritual

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Generational Marketing

• Generation X
• Extreme sports
• Depth of purpose
• Eco-tourism
• WOW!
• Finding themselves in challenges
• Brands are meaningless
• Really smart, savvy, skeptical
• Need one of their own to talk to them

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Generational Marketing

• Generation Y
• 85 define themselves as loyal and hardworking
  when they see value in what they are doing.
• They tend to value "living in the moment" as
  important.
• They consistently listed their parents as their
  "most admired" choices.
• Trust their Grandparents the most, followed by
  parents Gen-Xers are trusted the least.

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Generational Marketing

• Generation Y
• They are energetic and need continual stimulation
  and challenge. Comfortable juggling many things
  at once and will move on quickly if they get
  bored or dissatisfied.
• Their truth detectors are always on and they do
  not give second chances if deceived.
• Optimistic - more than three-fourths (78)
  believe they will achieve their life goals.

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Generational Marketing

• Generation Y
• More than three-fourths do not agree that money
  buys happiness.
• Honesty and integrity are the attributes admired
  most.
• 92 place "high value" on volunteer work.
• Community focused give back
• Vacation experience that allows rebuild, provide
  lasting benefit
• Allow for independence
• Never sell short wisdom

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Generational Marketing

• Generation 9/11
• Predicted to become a generation of conformists
• Risk adverse
• Fit in and be part of a crowd
• 1950s all over again
• Cocooning (Faith Popcorn)
• Stay very close to home

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Generational Marketing

• Matures Boomers Xers
• Defining Idea Duty Individuality Diversity
• Celebrating Victory Youth Savvy
• Success because Fought hard Were born, Have two
• and won therefore should jobs
• be a winner
• Rewards because Earned it Deserve it Need it
• Work is Inevitable Exciting Difficult
• obligation adventure challenge
• Leisure is Reward for Point of life Relief
• hard work
• Education is A dream A birthright A way to
• get ahead

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