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(704) 677-4018 mobile byoung@youngstrategies PO Box 12600, Charlotte, North Carolina 28220-2600

Changing Trends Affecting Cultural & Heritage Travel Cultural & Heritage Tourism Alliance Conference Seattle, Washington December 1, 2007. (704) 677-4018 mobile byoung@youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600. Dynamic partnership

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(704) 677-4018 mobile byoung@youngstrategies PO Box 12600, Charlotte, North Carolina 28220-2600

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  1. Changing Trends Affecting Cultural & Heritage Travel • Cultural & Heritage Tourism Alliance Conference • Seattle, Washington • December 1, 2007 (704) 677-4018 mobile byoung@youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  2. Dynamic partnership • Destination research and strategic planning • Research for 100+ destinations in 26 states • Small to mid sized communities • Travel industry focused • National research data and trends analysis • Writing and speaking 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  3. 2007-08 = CHANGE “It is not the strongest of the species that survives, nor the most intelligent, but the one that is most responsive to change.” - Charles Darwin 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  4. 2007 and Beyond Growth in 2007 and into 2008 finally outpacing 2000 levels- but it is a completely different world… …major traveler behavior change is forcing the travel industry to reinvent the experience! 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  5. ChangingConsumerBehavior • Twenty years of change (1986) • CNN was new • Compact Disc was new – cassettes going out • Few households had a PC • Internet??? • Balsamic Vinegar and Sushi??? • No frequent flyer miles • Few luxury hotels • Few fine dining restaurants • No security…anywhere • Videos were predicted to kill going to the movies 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  6. Ups and Downs • Increase in leisure tourism, • Lodging occupancies are up, BUT • Decline in visitation to many historic sites • Decline in attendance to many heritage attractions • Increase at many theme parks • Increase in retail shopping • Increase in dining 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  7. 2007 and Beyond “If cultural and heritage tourism is so HOT? Why are my numbers NOT?” 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  8. NationalLodging • Data Source: Smith Travel Research STR Report • RTM 2007 projection = 63.7% (growth in inventory) • ADR & RevPAR up! • Less resort hotel building, more fractional ownership resort development 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  9. Airlines Airline Selection Criteria: Schedule/convenience-61% More leg room-11% Earning Flyer Miles-9% Price increases expected Source: Travelocity 12/06 • Source: Air Transport Association • Prices below 2000 levels but going up • 2005 Losses: $4.1 Billion • 2006 Losses: $0.5 Billion • U.S. Fleet 20% smaller • 160,000 jobs cut since 2000 • Fuel costs doubled over 2005 • 2007 projected profit = $5.1 Billion 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  10. CruiseIndustry • Cruise Lines (CLIA): • Out-performed all travel segments since 2000 • It’s easy! • Formidable growth in 2007 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  11. Convention&Meeting • U.S. Business/Convention Travel (domestic): • Growth is driven by: • Fun location (resorts, riverfronts, casinos, etc.) • Convenience (walking scale once there) • Unique experiences, events & great speakers/topics • Cost containment 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  12. Domestic Leisure • U.S. Leisure Travel (domestic person trips) (TIA): Increase has never faltered • We all NEED to get away! • Exploring UNIQUE places 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  13. Domestic Leisure • Increases in Leisure travel • “ Respite” • Vacations demanded • Growth in family travel • Growth in affinity travel • Attendance to many attractions is down • Simplified planning, orientation & facilitation 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  14. ConsumerConfidence • Americans are cautiously optimistic • FEB ‘07 – Oct ‘07 • 2000 - 2007 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  15. Sophisticated Travelers • Trading Up • Truckers drinking lattes • Trends are changing at a faster rate • Consumer is more demanding • Providers of goods and services will have to stay on top of rapidly changing trends to survive • Luxury experiences not for • the rich alone • Fine art/craft as souvenirs 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  16. Group Tour • Great Potential for Rebound • Affinity, affinity, affinity • Last minute planning taking its toll • Hard to sell-out per capita tour • Custom designed for Baby Boomers or other age groups • Freedom without the hassle, cruise ship on land • Something you can’t get any other way • Huge growth in student travel – now 25% of international travel (SYTA) 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  17. Attractions • Challenges • More to do…less time to do it • Decline in attendance to many historic sites and museums • 16,500 museums in U.S. • 9,000 house museums in U.S. • Boring vs. engaging • Desire for less structure • ½ price ticket & then sell food, beverage, retail • “Store, Door & More” • FUN 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  18. House Museums • New or through! • Hearst Castle worst year in 20 years (USA Today) • Biltmore Estate best year ever! • It’s not the product… • it’s the EXPERIENCE • Requires constant reinvestment 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  19. Biltmore and more • Major Business Units • Destination • Attraction • Inn on Biltmore Estate • Explore Biltmore Estate • Biltmore Estate Wine Company • Biltmore Estate Reproductions Inc. • Key Statistics • 1,000,000 visitors annually • 140,000 cases of wine • 42 licensees • 66,000 room nights 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  20. Biltmore and more • Key Statistics • $117 million in revenue • $350 million impact on community • 10% – 12% return on sales • 1,500 employees • $12 million in taxes 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  21. Biltmore and more NEW TOURS, ATTRACTIONS, EVENTS… • Downstairs Tour • Behind the Scenes • Christmas • Festival of Flowers • Winery • Retail • Dining • Hotel 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  22. Biltmore and more 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  23. Biltmore and more William Amherst Vanderbilt Cecil “We don’t preserve Biltmore Estate to make money—we make money to preserve Biltmore Estate!” 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  24. Top Ten Trends for 2007-08 • 1. 2007 Continued growth • in overall travel & tourism revenues • Americans predicted to take 1,254.6 million domestic person trips in 2007, up 2.3% over 2006 (Source: IbisWorld) • Americans view vacations as an essential part of contemporary life (Source: YPB&R/Y) • We must learn the new behavior patterns 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  25. Top Ten Trends for 2007-08 • 2. Time Poverty – drives all trends • More to do…less time to do it • Expedia survey – 1/3 respondents didn’t take all of their vacation days • Nearly 50% of all Americans report “time poverty” - report desire for all-inclusive to save time (Source: YPB&R/Y) 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  26. Last Minute Travel • Who has time to plan anymore? • Internet • Visitor centers • Signage • Front-line training • “MUST-SEES” • Seeking unique experiences 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  27. Top Ten Trends for 2007-08 • Fragile consumer confidence will affect travel decisions • Gas prices frustrate but don’t slow us down…yet! • Real Estate downturn causes anxiety. • Despite increasing costs, seven in 10 U.S. adults plan to take a summer vacation this year…. Even though airline ticket prices are increasing, 60% of respondents say they'll fly as much as they did last summer. (Source: Expedia.com) 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  28. Top Ten Trends for 2007-08 • 4. Traveler frustration • Too many hassles • No time to plan • Airline complaints up up up • Taxis and car rental • Hotel check-in, room quality • Attractions • Dining 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  29. Top Ten Trends for 2007-08 • 5. Internet: #1 • Travel is #1 in Internet use & sales • Expedia survey (April 2007) summer vacation planning: • Online travel agency (52%) • Friend/family recommendation (45%) • Travel guide books (25%) • Travel community sites (19%) • Magazines & newspapers (19%) • Traditional travel agents (17%) • Convention and Visitor Bureaus (16%) 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  30. Top Ten Trends for 2007-08 • 6. Geotourism • -Increased traveler DEMAND for destinations that: • > PROTECT THE AUTHENTICITY • > AND GEOGRAPHIC CHARACTER OF PLACE • > it’s environment, culture, aesthetics, heritage and the well being of residents. • 55.1 Million Americans > sustainable tourists • (source: TIA & National Geographic) • GEOMAPPING – maps that are user friendly and provide • geotourism information in the context of a scaled road map. • Center for Sustainable Destinations – National Geographic Society 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  31. Top Ten Trends for 2007-08 • 7. Business Travel: Reluctant Growth • Costs up, desire to travel down • Service complaints up up up • Unhappy business travelers • Younger & more female • Cost-contained travel • On-line deal searching 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  32. Top Ten Trends for 2007-08 • 8. Generational Shifts • Retiring Boomers • GenX entering peak spending years • GenY & MGeneration coming of age • Develop “age-appeal” products • Baby Boomers spending • Affinity groups • Family groups 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  33. Top Ten Trends for 2007-08 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  34. Embrace Change Baby Boomers 15 more good $$ years GenX is entering its peak spending years Younger Generations… …Are “deciders” “Technophilia” 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  35. Top Ten Trends for 2007-08 • Orientation & Facilitation are critical • Travelers arriving with no plans • Time Poverty drives the need • CRITICAL COMPONENTS: • - Gateways • - Directional Signage • - Visitor Centers (Thurs – Sun critical) • - Kiosks • - Front-line training • - Padded maps everywhere 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  36. Orientation & Facilitation Visitors Centers = Sales Centers Gateways that create a sense of place A unique destination 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  37. Top Ten Trends for 2007-08 • A New Travel Era • Changing Generation groups = NEW traveler expectations • “Transumers” consumers in transition • - airports with shopping malls • - retail in lodging rooms • - Visitor centers as heritage centers • - overnights at historic sites 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  38. Destination Challenge The definition of “vacation” has changed (Go/See/Do vs. Chill & Immerse) Travelers looking to escape Short getaways Year round travel Search for meaning 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  39. Other Trends Traveling with pets – (14% of all Americans) Safety & Security always an issue Team sports – huge growth – long term Diverse family – grandparents & more Nature travel Family reunion growth Huge Growth in RV Travel 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  40. Thriving amidst Change • Research is the answer to grow with the new behavior patterns! • Research as a foundation • MUST know your customer! • Market segmentation approach • A focused plan for the community • BE a unique destination 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  41. Walt Disney said: “You don’t build it for yourself. You ask the customer, and you build it for them.” 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

  42. Want to know more? Berkeley Young byoung@youngstrategies.com 704-677-4018 704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600

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