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Destination Marketing. 2009 Institute for Staff Development Students Today, Leaders Tomorrow. What Do I Know??. Kristen Jarnagin, VP of Communications Arizona Hotel & Lodging Association (AzHLA) Valley Hotel & Resort Association (VH&RA) Southern AZ Lodging and Resort Association (SALARA)
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Destination Marketing 2009 Institute for Staff DevelopmentStudents Today, Leaders Tomorrow
What Do I Know?? • Kristen Jarnagin, VP of Communications Arizona Hotel & Lodging Association (AzHLA) Valley Hotel & Resort Association (VH&RA) Southern AZ Lodging and Resort Association (SALARA) Arizona Tourism Alliance (ATA) 2009 Chair, Public Relations Society of America Travel & Tourism Prior Experience: Director of PR for the Sheraton Wild Horse Pass Resort & Spa Director of Media Relations for the Arizona Office of Tourism -Alum of Walter Cronkite School of Journalism, ASU (Go Devils!) 2009 Institute for Staff DevelopmentStudents Today, Leaders Tomorrow
What You Need to Know • What’s happening in the Tourism & Hospitality Industry? • What’s happening in the Media and Marketing Industry • What does that mean to you? 2009 Institute for Staff DevelopmentStudents Today, Leaders Tomorrow
Current State of Hospitality Industry Economic Meltdown Perfect Storm Media “Gotcha” Mentality Political Rhetoric & Restrictions “AIG” Effect 2009 Institute for Staff DevelopmentStudents Today, Leaders Tomorrow
Results • Mass Meeting Cancellations • Mtgs account for more than 70% of revenues for most resorts • Occupancies at Record Lows • Budget Cuts/Layoffs • Marketing Budgets Slashed • New Marketing Strategies Required….more on that later 2009 Institute for Staff DevelopmentStudents Today, Leaders Tomorrow
Traditional Marketing Methods Print Advertising - Radio – Television - Direct Mail The Fall of Advertising and the Rise of PR- • Third Party (Media) Endorsement Considered More Valuable • Is PR still effective? 2009 Institute for Staff DevelopmentStudents Today, Leaders Tomorrow
Who Do You Trust for News? • The Days of Walter Cronkite are Over • Go Devils! • Biased News is Now the Norm 2009 Institute for Staff DevelopmentStudents Today, Leaders Tomorrow
Changing Tides in Trust • Recent Survey Results (US Residents) • 36% of people trust banks • 33% of people trust the auto industry • 31% of people trust insurance industry • 25% of Americans trust the Media (lowest score) • (73% trust Technology Industry;-) • 34% said articles in newspapers were very or extremely credible (36% tv, 38% radio) • Upside? Business magazines are viewed as credible by 44% & WSJ by 47% *Source, Edelman Survey, 1/09 2009 Institute for Staff DevelopmentStudents Today, Leaders Tomorrow
Impact on Destination Marketing Budget Cuts Loss of Media Trust The Rise of SOCIAL MEDIA
What IS Social Media? 2009 Institute for Staff DevelopmentStudents Today, Leaders Tomorrow
Examples of Great Social Media Campaigns • Tourism Queensland Campaign • Best Idea in the World? • Estimated more than 3 billion worldwide exposed • $150k + $4-million villa accommodations for six months to travel and Tweet, Blog, etc. • Generates $120 million in Free Global Publicity • The competition received more than 34,000, 60-second video applications from 200 countries, which generated around 610 hours of video content. • The campaign spawned around 200,000 blogs and 43,000 news stories. • You Tube Videos continued even after winner was named! 2009 Institute for Staff DevelopmentStudents Today, Leaders Tomorrow
$$ Doesn’t Matter – Clever Rules @GMGoneMad – Twitterfeed: Rancho Bernado Inn, San Diego • We still have rooms this wknd. Call 2 arrange a stay. Show up w/ cxl'd reservation from another property, receive 50% discount off room rate2:53 PM Jun 29th from TweetDeck • Owners on a cruise vacation. I'm not. Gonna create our own though - ALL INSLUSIVE package coming! Need name tho http://tinyurl.com/lhfuo92:55 PM Jun 26th from TweetDeck • Again, plenty of herbs recv'd, promo over. Fun concept though, lets try this - 6/29 - 7/4 - if yr name is Herb - free meal or comp room :)5:15 PM Jun 24th from TweetDeck • My kids refused to write letter for Dads day contest. Brendans Dad-our winner a lucky guy! Kids want me to take lessons from him-I cant win.4:14 PM Jun 20th from web • Enough herbs. Done. Just 4 the fun, bring in MATURE, well trained Chia-Pet - & we'll still give U a meal, 1 per person - tip well tightwads!5:06 PM Jun 19th from TweetDeck • Cleaning up after busy wknd. Up 4 a challenge? Who can make bed the fastest? You vs. room attendent using only 1 hand. Win free room nite.2:24 PM Jun 15th from TweetDeck • Wknd vry busy - full property w/ 3 weddings. Parking an issue - no room. Still wnt yr $$ though, so ride a bike, we'll giv U 50% off meal.3:41 PM Jun 12th from TweetDeck
What Have We Learned? • Destination Marketing has dramatically changed in the last 18 months • Direct Mail – Out • Expensive/Glossy Advertising – Out • Big Budget Sales Trips/Events – Out • Email Marketing – On it’s way Out? • Facebook Fans – In • Twitter Handles – In • Unique packages/promotions – In • You Tube, Webinars and Consumer Interaction - In • Biggest buzzword? AUTHENTICITY… and TRANSPARANCY 2009 Institute for Staff DevelopmentStudents Today, Leaders Tomorrow
Good News/Bad News • Bad News First • Tourism & Hospitality Jobs are near impossible to come by these days • Every laid-off or soon-to-be-laid-off journalist in the country is switching to PR/Marketing careers…and they all “Love to Travel” • Competition for Travel Destinations is BRUTAL • It’s increasingly difficult to stand out • And even then, people are reluctant to spend money on travel • Good News • The Tourism Industry WILL recover – it ALWAYS does! • Because of the drastic changes in destination marketing strategies, new people to the Industry are on a level playing field with those who have countless years of experience. • It’s an exciting time to be in this Industry! Creativity Abounds! 2009 Institute for Staff DevelopmentStudents Today, Leaders Tomorrow
This Concludes Destination Marketing in a Nutshell Kristen Jarnagin Twitter: @krisjar @aztourismpays Facebook: Arizona Hotel & Lodging LinkedIn: Arizona Hotel & Lodging Email: kjarnagin@azhla.com 2009 Institute for Staff DevelopmentStudents Today, Leaders Tomorrow