THE MARKETOUR
A MARKETING GUIDE FROM THE WISCONSIN DEPARTMENT OF TOURISM
June - July 2003
In this issue:
- Understanding the Latest Consumer Travel Trends
- Travel Tracker: RV Campers - An Untapped Market?
- Web Tips: Build Customer Relationships with E-mail Newsletters
- PR's Greatest Hits
- Media Leads
- 10-second Writing Clinic
Understanding the Latest Consumer Travel Trends
At this year's Governor's Conference on Tourism, Peter Yesawich, of Yesawich, Pepperdine & Brown (YP&B), led a breakout session on current consumer travel trends. His presentation was based on the 2003 National Travel Monitor, an annual study on the travel habits and preferences of Americans that is co-authored by YP&B and Yankelovich Partners. The annual study surveys 1,300 American households in which people took at least one overnight trip more than 75 miles from their home.
In presenting the data, Yesawich identified three major forces impacting the American travel industry. The first one is the legacy of September 11. The Travel Monitor survey showed that while the demand for leisure travel bounced back within months of September 11, demand for business travel has languished. Although promotional pricing has spurred leisure travel deals, it has had little impact on business travel. He described how the travel industry responded to the post-September 11 climate by re-marketing inventory online. Fearing that mainstream "deal" advertising might upset customers who had already booked trips at higher rates, lower-visibility Internet specials were used to help stimulate leisure travel demand.
Given this background, Yesawich spoke briefly on how he expected current world events to shape travel trends. With the onset of war in Iraq, he expected the demand for leisure travel to decline and then rebound as promotional deals increased. He also predicted that travelers would be reluctant to journey longer distances, particularly to international destinations. Again, he expected the demand for business travel to remain flat until the economy recovered.
Research also showed that the events of September 11 heightened consumers' desire to reconnect with what they consider truly important. For this reason, Yesawich singled out family travel as a segment poised for significant growth. In one survey question, 79 percent of parents said that they wanted to spend more time with family. Also, 50 percent of Baby Boomers said that they were thinking about slowing down the pace of their lives.
The second major factor cited by Yesawich was the ailing U.S. economy. This was credited as the main reason for the continuing demise of business travel. He explained that households nationwide are experiencing the first decline in net worth since the 1950s, which has led to today's "cheap is chic" attitude among consumers. The importance that consumers place on getting the best price was underscored when 82 percent of respondents agreed with the statement "I always attempt to negotiate the cheapest rate when booking hotel reservations." Yesawich claimed that consumers' concern about pricing is making brand loyalty obsolete, with "price loyalty" being the new consumer mandate. However, consumers wouldn't necessarily choose the cheapest option if it failed to meet their needs and they expressed a willingness to pay more for customized services. For example, 38 percent of respondents said that they were willing to pay 20 percent more for customized products/services.
The third factor that Yesawich described is the power of technology and how it has shaped the "new consumer." Today, the Internet influences 40 percent of all travel reservations even though the Internet has only been widely available to the public for six years. Forty-three percent of those surveyed said that they had surfed the Internet for a promotional fare/rate for travel services during the first quarter of 2002. Yesawich stated that the Internet has sparked a fundamental change in how consumers plan their travel purchases. He asserted that the most significant change resulting from the Internet revolution is that consumers have greater control, including more pricing information than ever before. While consumers didn't view the Internet as a "perfect resource," with 68 percent saying that they have difficulty finding what they're looking for and 76 percent considering the amount of online advertising a nuisance, many considered it a prime source of cost savings. Yesawich said that consumers have gotten the message from the media that turning to the Internet and waiting to make travel plans reaps better bargains and thus, are making more last-minute travel decisions.
RV
Campers - An Untapped Market?
According to a study by the Recreation Vehicle Industry Association (RVIA), RV ownership in the United States has reached record levels. About one in 12 U.S. vehicle-owning households now owns an RV - that's nearly 7 million households, an increase of 7.8 percent over the previous four years.
The Baby Boomer market, consumers age 39-57, has been a leading force in the rise in RV sales. With more than 1.6 million Baby Boomers (U.S. Census Bureau) and nearly 77,000 registered RVs, Wisconsin is in a great position to capitalize on this growing market.
Wisconsin's RVers
In a 2002 study of summer visitors in Shawano and Menominee counties, RVers accounted for 26 percent of the total sample. Forty-eight percent of the RVers were Baby Boomers, 23 percent were Empty Nesters (55-64 years old) and 19 percent fell into the Gen X category (24-34 year olds). The majority were traveling with family or a combination of family and friends. Favorite leisure activities included camping, golfing and swimming. Forty-five percent use the Internet to plan their leisure vacations. Twenty-eight percent were experiencing their first leisure trip to these counties.
Wisconsin's historic site visitors are also RV enthusiasts. A survey of more than 3,000 visitors at historic sites around the state during the summer of 2001 found that 10 percent were camping in their RVs. While many of these RVers were with family or friends, two-thirds were not traveling with kids. Camping, traveling, reading, sightseeing and fishing were among their favorite leisure activities. Typically cited as a source of travel information, word-of-mouth recommendations ranked behind Wisconsin travel guides, local tourism information and the Internet.
Marketing Implications:
Promotional materials should reflect family-togetherness, a perceived benefit of RV travel.
RV visitors at Wisconsin's historic sites indicated they rely on the Department of Tourism's Wisconsin travel guides for information. Make sure your area's tourist information is up-to-date in the Extranet system, which provides information for travelwisconsin.com, Department publications, call center, press kits and event radio reports.
Department research (Generation X and Empty Nest/Aging Baby Boomer Focus Groups) found that relaxation is important to the Baby Boom generation; they ranked relaxation as their third favorite leisure activity. Consider making relaxation a focal point in literature as well as creating packages aimed at RVers including discounted rates at campgrounds and local attractions to help take the "work" out of planning.
Extend an invitation to the RV community through the media they use for travel planning. Co-op advertising in the Wisconsin Campground Directory or banner ads on RV Web sites such as www.GoRVing.com are other options to help get your message to the camping enthusiast.
Consider participating in RV trade shows and offering incentives or promotions including weekend getaways and discounts for these travelers to visit the area.
To obtain a complete copy of this month's Travel Tracker, contact Sue Hamilton at 608/266-6792. Sign up to receive the monthly Travel Tracker e-bulletin.
Web Tips: Build Customer Relationships with E-Mail Newsletters
Permission marketing and electronic-newsletters are some of the hottest topics of conversation among marketing executives today. With traditional advertising costs soaring, Internet usage at an all-time high and cost-effectiveness a critical factor in marketing decisions, the low production and distribution costs of permission-based e-marketing make it an attractive tool for many organizations. However, the growing use of this revolutionary tactic has led to increased government scrutiny and a consumer backlash against unsolicited e-mails, or "spam."
At the recent Governor's Conference on Tourism, e-mail marketing consultant Julia Hertel counseled members of Wisconsin's tourism industry on how to maximize the effectiveness of their e-mail newsletters. Here are some of the highlights:
Permission is key:
Like most e-marketers, Hertel stresses the key to avoiding spam complaints is keeping your database truly permission-based. In other words, recipients of your e-mails should actively choose (or "opt-in") to receive your e-newsletter via a subscription page, rather than simply receiving it and being forced to unsubscribe ("opt-out") if they don't want it.
While building a database from scratch is the preferred way to initiate such programs, time constraints may dictate that marketers use purchased or rented lists of similar e-newsletter recipients, such as those that are available to destination marketing organizations through the Wisconsin Department of Tourism's e-mail list rental program.
Many marketers - including the Department of Tourism - also augment their databases with information gathered from promotion entries. If you choose to do this, make sure to clearly indicate that entrants are granting permission for the organization to send them future information. When using your Web site to collect e-mail addresses, make sure the process is simple for the user, particularly if they want to opt-out. A simple "reply to unsubscribe" does not always work if the user has multiple e-mail accounts. When sending to third-party lists, make sure to include an opt-in invitation and reward. If the customer declines to opt-in, take them off of your list.
Give them content they can use:
"Permission marketing turns strangers into friends and friends into loyal customers," says nationally recognized permission marketing guru Seth Grodin. "Consumers will grant a company permission to communicate only if they know there is something in it for them."
For most e-newsletter readers, that something is usable content. Mix news on special offers with topical information of interest to your readers. Avoid overly sales oriented messages. The goal is to build the recipient's trust and begin an ongoing relationship. Coming on too strongly can push readers to opt-out.
Build trust by posting your privacy policy:
Build trust with your potential customers by posting a clearly stated and easy to find privacy policy. Keep in mind that you'll need to stick with this policy once you publish - revoking or weakening it can open you up to legal action.
Respond promptly to e-mail inquiries:
This reinforces how valuable they are to you and reinforces the "relationship" concept in their minds. Establishing a dialogue is the first step toward establishing a loyal customer.
PR'S Greatest Hits
Some of the top names in travel and leisure publications have turned their sights to the warm weather fun of Wisconsin.
The sound of the calliope and the sight of clowns performing zany antics captured the attention of FamilyFun readers as the magazine visited Circus World Museum in Baraboo for an article on hidden gems in the Midwest. The museum's big top performances and children's activities led the editors to call it "one of the Midwest's most offbeat attractions."
The editors of Midwest Living highlighted Wisconsin's Heritage Traveler guide as part of an article on tools that make exploring history in the Midwest even easier. Meanwhile, The St. Croix Valley was highlighted in a March article of the Chicago Daily Herald thanks to their "Celebrate Winter on the Sparkling St. Croix" Joint Effort Marketing (JEM) campaign.
Media Leads
As the summer weather heats up, so do the thoughts of family vacations in the minds of editors throughout the country.
Family-friendly destinations and accommodations are the name of the game as travel writer Derek Mackenzie-Hook launches the new travel Web site gowithkids.com. The site is dedicated to providing information on the best child-friendly destinations that will keep both kids and parents alike amused. Send information to Derek Mackenzie-Hook at gowithkids@supanet.com.
Family Travel Forum is preparing for the 6th Annual Top 10 Getaways for Tiny Travelers awards and is looking for information on the country's best family camps, resorts and attractions. Awards will be announced on FamilyTravelForum.com in September. Send recommendations to Ms. Fran Falkin at 891 Amsterdam Avenue, New York, New York 10025.
10-second Writing Clinic
Appraise vs. Apprise
- Appraise means to set a price for or decide the value of something.
- Apprise means to inform or to notify.
Examples: Before making a final decision, the potential buyer requested that a professional appraise the property. She asked that we apprise her of when we would like the appraiser to arrive.
