Travel Industry Outlook, Economics, and Marketing

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Travel Industry Outlook, Economics, and Marketing

• Norma Nickerson
• Jim Wilton
• 2004 Governors Conference
• Institute for Tourism Recreation Research
• College of Forestry and Conservation
• The University of Montana-Missoula

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U.S. Leisure Travel Continues but Spending Drops

• 3 increase in 2003 leisure travel over 2002.
• Travel industry represented 24 of all job losses
  in the U.S. between August 2001 and June 2003
  (508,000 jobs).
• 2003 showed a 4 decrease in average hotel room
  rate from September 2001.
• RV rental rose 30 in 2002-03 over 01
• RV purchases rose 20 in 01 and 02

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3 increase
4
1.6
Preliminary
Source Institute for Tourism Recreation
Research
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2003 Preliminary Estimates

• 116.53 average daily expenditure
• 9.9 million individuals
• 4.0 million groups
• 1.86 billion direct expenditures
• 2.75 billion combined economic impact
• 29,600 direct jobs
• 43,300 combined jobs
• 135 million in combined state and local taxes

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Preliminary
Source National Park Service,
http//www2.nature.nps.gov/stats
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Source Montana Aeronautics Division
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Source Smith Travel Research
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Montana Nonresident Expenditure Distribution by
Travel Region (2002)
1
6
5
497 million
33 million
141 million
4
2
3
219 million
456 million
455 million
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Regional Expenditure Comparisons

• 1 Exp. 2 Exp. 3 Exp.
  
• Custer Gas Retail Restaurant
• Glacier Retail Rest. Gas
• Gold W. Gas Rest. Retail
• Missouri Gas Retail Restaurant
• Russell Gas Rest. Retail
• Yellowstone Rest. Retail Gas

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Top two primary purposes for Montana visit

• Custer 39 vacation 24 pass thru
• Glacier 45 vacation 30 pass thru
• Gold West 49 vacation 21 pass thru
• Missouri 40 vacation 37 VFR
• Russell 44 vacation 19 business
• Yellowstone 59 vacation 15 pass thru

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Nights Spent in Montana

• Custer Country 4.56 nights
• Glacier Country 6.12 nights
• Gold West Country 5.28 nights
• Missouri River Country 6.60 nights
• Russell Country 5.96 nights
• Yellowstone Country 5.37 nights

Average nights in MT 3.92
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Top Two Primary Attractions

• Custer 15 YNP 15 VFR
• Glacier 36 GNP 13 VFR
• Gold W. 16 GNP 14 VFR
• Missouri 23 GNP 20 VFR
• Russell 27 GNP 16 VFR
• Yellowstone 33 YNP 12 GNP VFR

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All 6 regions showed that the Internet
(34-40) and auto clubs (20-29) were the top
two most useful planning sources.
Top Two Information Sources Used During Trip

• Custer 28 service 24 highway sign
• Glacier 29 info ctr. 24 highway sign
• Gold W. 23 bro. rack 23 highway sign
• Missouri 33 service 23 info ctr.
• Russell 35 service 24 highway sign
• Yellowstone 27 info ctr. 34 service

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Top Two Activities (minus shopping)

• Custer visit hist. sites watch wildlife
• Glacier wildlife watch day hike
• Gold W. visit hist. sites watch wildlife
• Missouri camping watch wildlife
• Russell watch wildlife day hike
• Yellowstone watch wildlife day hike

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Visitors Origin

• 1 2 3
• Custer 13 WA 10 ND 8 MN
• Glacier 15 WA 9 CA 5 MN, OR, ALB
• Gold W. 19 WA 9 CA 6 ID
• Missouri 20 ID 11 WA 10 CA
• Russell 10 WA 9 ND 8 CA, ALB
• Yellowstone 12 WA 10 CA 6 MN

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Regional Visitor Characteristics

• Lived in MT before Flew part of trip
• Custer 22 16
• Glacier 16 19
• Gold W. 19 15
• Missouri 35 3
• Russell 19 16
• Yellowstone 16 20

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Montana Nonresident Expenditure Distribution by
County (2002)
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TOP 10Nonresident Dollars - County Comparison

• Yellowstone County 279 million
• Gallatin County 239 million
• Missoula County 149 million
• Flathead County 146 million
• Park County 105 million
• Lewis Clark County 69 million
• Silver Bow County 67 million
• Cascade County 64 million
• Custer County 44 million
• Carbon County 36 million

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Highest Expenditure Category of Nonresident
Dollars in Top 10 Counties

• Yellowstone County Retail
• Gallatin County Retail
• Missoula County Gas
• Flathead County Retail
• Park County Gas
• Lewis Clark County Restaurant
• Silver Bow County Gas
• Cascade County Retail
• Custer County Gas
• Carbon County Restaurant

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Nights Spent in Montana

• Flathead County 6.8 nights
• Carbon County 6.4 nights
• Cascade County 6.2 nights
• Lewis Clark County 5.8 nights
• Gallatin County 5.5 nights
• Missoula County 5.1 nights
• Park County 5.1 nights
• Yellowstone County 4.6 nights
• Silver Bow County 4.2 nights
• Custer County 4.0 nights

Average nights in MT 3.92
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Primary Purpose of Trip
Passing Through Silver Bow 32 Custer 27 Missou
la 26 Yellowstone 23 Gallatin 16 Cascade 1
4 Park County 13 Lewis Clark 9 Carbon
7 Flathead 5

• Vacation
• Gallatin 75
• Flathead 75
• Park 69
• Carbon 68
• Silver Bow 48
• Cascade 43
• Missoula 39
• Lewis Clark 39
• Custer 37
• Yellowstone 33

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Gallatin County

• Visitor Expenditures
• Retail 56,759,000
• Restaurant 50,580,000
• Hotel 46,397,000
• Gas 42,255,000
• Grocery 16,499,000
• Auto rental/repair 11,310,000
• Other 4,025,000
• Camping 3,957,000
• Fees/licenses 3,761,000
• Outfitter/Guide 3,406,000
• Transportation 330,000
• 239,279,000

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21
19
7
5
18
24
Gallatin County

• Visitor Characteristics
• 5.5 nights in Montana
• 75 vacation
• 75 Repeat visitors
• 13 from Washington
• 11 from California
• wildlife watching, hiking, visiting historic sites

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Yellowstone County

• Visitor Expenditures
• Retail 90,656,000
• Gas 62,789,000
• Restaurant 50,257,000
• Hotel 29,081,000
• Auto rental/repair 22,803,000
• Grocery 14,495,000
• Other 4,159,000
• Camping 3,540,000
• Fees/licenses 869,000
• Transportation 830,000
• 279,479,000

18
8
32
5
10
22
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Yellowstone County

• Visitor Characteristics
• 4.6 nights in Montana
• 33 Vacation
• 23 Pass thru
• 82 Repeat visitors
• 12 from N. Dakota
• 13 from Washington
• 8 from WY ID
• Visiting historic sites, wildlife watching

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How to Use this Information for Your Marketing
Success - Example Custer Country

Marketing by Geography Attractions Activities Inco
me
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Geography

• Remember Travel Marketing is HIGHLY influenced
  by word of mouth.
• Decision Do we continue with the same
  geographic market? New geographic market?
• Custer Country WA and ND (23) safe markets
• MN, CA, ID, WY easy markets
• CO, WI, MI newer markets?

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Attractions

• Yellowstone, family/friends, open space,
  mountains, Glacier
• This is a diverse group that spends time in
  Custer Countrythey are attracted to MT for many
  different aspects. Many do not use any planning
  sources or use information during their trip.
  Dont concern yourself with them.
• Through the Internet and auto clubs, be sure to
  visually show the two parks, the open
  space/uncrowded areas, and the mountains.
• Work with the highway department for signage as
  these signs are very influential to their
  decision making .

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Activities

• Visiting historic sites, museums, Native American
  sites wildlife watching, camping
• Custer Country is filled with cultural
  opportunities related to Native Americans, Lewis
  and Clark, the cowboy western life. These
  images should shape the message and be available
  to people in Glacier and Yellowstone. They may
  not come to your spot while visiting the park,
  but they will likely come back.

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Income Level

• Are you seeking people with higher income
  levels? Right now the main level is 40K-80K.
  How do you attract the 100K crowd?
• Possible strategies
• Glacier and Yellowstone Countries attract the
  higher income levels. Work with other countries
  for package deals and advertising.
• Look back at the geographic origins and focus on
  large cities such as Denver, Minneapolis,
  Madison/Milwaukee, Chicago, Detroit for newspaper
  writers who will share the Custer Country story.
  

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Summary

• Know your current market use ITRR data, talk to
  your customers, read about trends and changes in
  travel.
• Remember that word of mouth is still your most
  influential marketing strategy treat the
  customer right and they will return. Montana has
  a large return rate factor.
• Be sure to sell your area within other parts of
  the state plant the seed for the next visit.
• Know your attraction strengths and focus on them
  in all marketing!

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Thank You!

• For more travel related research and information
  see
• www.itrr.umt.edu