Travel -Tourism – Marketing A Bright Spot in Rural America?

1. Travel -Tourism – MarketingA Bright Spot in Rural America? John Keller

2. Tourism Defined • A segment of the travel market that consists of individuals and groups that are known as "free and independent travelers" or FIT • This definition distinguishes FIT travelers from business travelers or convention visitors who typically travel when and where necessary, rather than choose a destination based on its individual appeal. • However, in assessing economic impact, business and convention travel are normally included

3. Tourism and Leisure Characteristics • Tourism is one of the most sensitive of all economic opportunities relative to public resources. Without public sector investment, most tourism sites remain at the same scale with limited seasonal duration. A major exception is gambling • Tourism and leisure returns major investments to the public sector and is heavily taxed by the government. Generally, the more money the public pumps in tourism investment – the greater the return in taxes and receipts.

4. Who Benefits? • Governmental Cash Flows • Tourist or Leisure tax • Increased sales tax receipts • Enhanced property tax returns • CMB & Liquor tax • Entertainment tax

5. Tourism Segmentation • Vacations • Holiday Trips • Business Trips Including Sales • Recreation and Leisure Trips • Gambling and Gaming • Sports • Research and Information - Genealogy • Conventions/Conferences

6. Top Tourism Demand • 1. Eating and Drinking Places • 2. Places of Accommodation • 3. Recreation and Entertainment • Sports • Golf • Theme Parks and Cruises • 4. Airlines • 5. Local transportation – taxis and rentals

7. Top $ Economic Returns • Transportation and [Arrangement?] • Lodging • Food/entertainment • Retail Sales – specialties • Beverage and liquor • Primary and secondary attractions

8. The Context: The Nation • Almost every state (46 out of 50) counts tourism among its top three revenue-producing industries. This does not include Kansas and Nebraska!

9. Nebraska! “I even thought that I was dead till I found out I was just in Nebraska.” -Clint Eastwood in “Unforgiven”

10. Redneck Institute

11. Stonehenge

12. Nebraska Car-Henge

13. Top 10 Tourist Destinations 18 50 35

14. Top Five World Tourist Destinations Spain Italy France USA China

15. In Parlance of Tourism • Its not where you go, its how much you spend • Its not how many people, its how many groups • Its not how much you spend in a day, its how many days you spend

16. Top 5 World Revenue Earners 2005 in Billions 84.5 36.7 33.5 29 19.9 United States Spain France Italy China

17. Let’s Get This Out of the Way • Tourism (generally a rural phenomena) in the U.S. can reach the very height of quality and plumb the depths of the disastrous • In other words – it can really suck • It can mine whole economies • It is generally not sustainable • It exploits cultures, people, workers, communities, and whole regions

18. At the Same Time We Really Enjoy It!

19. It can be Marginal

20. Flat Dumb

21. Or Faux Cultural Genuine Amish County Store

22. The Old Standbys

23. The Who Gives A Damn Category of Tourism

24. Always Looking For the Can or Parking Space

25. Creating Amenities • “Asset theory of tourism” - successful tourism depends on the availability of some immobile attraction that people want to visit. • Popular tourist attractions are made rather than discovered. • Rural tourism is just not linked to outdoor activities. There is great diversity in tourism activities- ethnic, historic, special attractions, shopping, eco-tourism, religious events, etc.

26. And Yes – Kansas Land of Ahs The fun started immediately when I crossed the Missouri River into Atchison, in the northeast corner of Kansas, and found that the town was named for a senator - from Missouri. In fact, David Rice Atchison was president of the United States for 24 hours, beginning at noon March 4, 1849. He snoozed for most of his term.

27. Home of the Black Squirrel In 1987, the "Black Squirrel Song" became Marysville's, Kansas official anthem: "Lives in the city park, runs all over town The coal black squirrel will be our pride and joy Many more years to come!"

28. Twine in Kansas

29. Near Insanity Goodland Rocket Fest at Argonia

30. Weirder & Weirder Picture of embalmed Samuel Dinsmore in his Mausoleum at Lucas, Kansas here Samuel P Dinsmoor at 89 & his 20 year old wife and year old son

31. Smaller and Smaller

32. Kansas Prairie Dog

33. Missouri Home Grown Tourism

34. International Tourism

35. Eco-Tourism

36. Designer Tourism World’s Most Expensive Tourism - Antarctica From New Zealand By Russian Ice Breaker

37. Assessing Tourism Impact • Method 1 – Visitation • Assessed monthly, quarterly, annually • Repeat visitations are analyzed separately to detect trends and patterns • Method 2 – Geographic Patterns • Within 50 miles • 51 – 100 miles • Over 100 miles • Out of State • International

38. Tourism Impact - cont • Method 3 – Market Segmentation • Individuals • Couples • Families • School Groups • Tour Groups • Other

39. Tourism Impact - cont • Method 4 – Spending Patterns • Average Total per visit • Per Capita • Segmented • Food and Drink • Entertainment • Accommodations • Retail • Transportation

40. Economic Impact • Segmented Overnight Expenditures • Accommodations – 1.00 - $16,197,001 • Food/Drink .59 - $9,510,601 • Food Stores .07 - $1,062,098 • Ground Trans. .42 - $6,831,224 • Recreation .34 - $5,321,185 • Retail Sales .47 - $7,627,798

41. Analysis of Multiplier Impact • The Multiplier Effect • A two percent increase in occupancy would increase gross annual room revenues by $1,000,000 • A five dollar increase in the average daily rent (ADR) would increase gross revenues by $1.5 million • Calculate how much the multiplier effect would increase revenues to other sectors, such as retail sales, for a increase in motel rooms?

42. Employment Impact • Employment Impact due to overnight stays • Accommodation 1.00 – 278 • Eating & Drinking 1.45 – 417 • Food Stores 0.10 - 28 • Ground Trans 0.60 – 167 • Recreation 0.70 – 195 • Retail Sales 0.60 – 167 • Air Transportation 0.60 - 167

43. Tourism and Leisure Demand Factors • Population Increase • If all other factors are held constant the demand for a tourism commodity increases as the available population of potential consumers increases • Family Structure Changes • Family oriented tourism and leisure is a major demand factor in tourism. As the family structure changes demand shifts to meet the new reality of the family – its size, composition, age, culture

44. Demand Factors - cont • Distance to Source • Tourism and leisure visits are distance sensitive. A great many leisure and tourism visits will be within a day’s drive of the clients. Major example of decreasing distance is to build more golf courses • Transportation Rates • Nearly all tourism and leisure is sensitive to transportation costs. Transportation cost and time minimization is the key to increasing visitation. Conversely, increasing transportation costs will have a major impact on demand – just ask Australia

45. Demand Factors - cont • Demographics • AGE • The consumption of tourism and leisure goods is highly structured around age. Changes in age patterns impacts both demand and the type of leisure consumed • Economic Status - Affluence • The ability to pay remains a major factor in the type of activities, the amount of time spent in visitation, and the cost of accommodations

46. Factors the Influence Gross Spending • Age • Family composition • Length of stay • Location of visit (NYC is a lot more expensive that Disney World or Vegas) • Income level of client • Type of transportation selected (if you fly you rent cars) • Nature of opportunity at source (skiing is expensive – so is eco-tourism)

47. Tourism Diversity • Why Do You Choose A Destination? • Have not been there • Been there and liked it • Cost • Interest in particular place/activity • Kids/family/partner want(s) to go • Diversity of activities at source • 2 fers – get your tourism around your business events

48. Marketing and Advertising • Tourism marketing involves identifying local attractions, developing facilities and services to meet visitor needs, identifying the tourism market segment which applies to the attraction, and pursuing linkages within those market segments. • Tourism marketing must consider complex factors – distance from population centers, availability of good transportation, cost involved, competition, etc.

49. Marketing Tourism • Identify the Target Market • Demographic (age, income, gender education and occupation) • Geographic • Psychographic (enthusiasts such as boating, skiing, gardening, history, military)

50. Position Statement • The Position Statement – “Positioning” • Positioning is the place you occupy in your target customer's mind • The goal is that, when your customer decides they're ready to consume tourism, they think of you first – or at least they think of you? • The positioning statement usually includes two elements: Your unique selling proposition (what makes your business special) and your target market (your most important customer segment).