Travel and Tourism

Trends

Brad Hillwig, Christie VandenDries,

Al Kell, Lisa Fuentes-Szlemko,
Teri Lindseth
 What is Tourism?
The World Tourism
Organization defines
tourists as people who:

“travel to and stay in

places outside their usual
environment for not more
than one consecutive year
for leisure, business and
other purposes not related
to the exercise of an
activity remunerated from
within the place visited. “
 Who, What, When,
Where, How, & Why?
• Anyone
• Anything
• Anytime
• Anywhere
• Any way
• Any reason
Carhenge
• Located in Western Nebraska
• Modeled after Stonehenge
• Receives 80,000 Annual Visitors
 Who, What, When,
Where, How, & Why?
• Anyone
• Anything
• Anytime
• Anywhere
• Any way
• Any reason
 Who?
• First Wave – Leisure Tourists
were mostly wealthy, upper-
class citizens. Travel was a
novelty for the elite.
 Who?
• Second & Third Waves
- Tourism is available to
everyone.
- Middle and upper-class
citizens in 1st world
countries are most likely
to be leisure tourists.
When and How?
• Seasonal Tourism - Summer,
Winter, Spring & Fall
- Holidays & Events

• Planes, Trains, Automobiles

& Boats…
Developments in
transportation have helped
globalize the industry
 Where?
Well… Anywhere!
• Truly a global industry
• Nearly every country
has a market for
Tourism
• State and local
governments have
recognized the
economic value of
attracting tourists.
 Why?
• First Wave
- Some leisure travel
- Religious Pilgrimages,
Exploration, Trade,
Medical & Necessity

• Second & Third Waves: Why

Not? Part of the expansion and
growth of Tourism is the
expansion of reasons to travel
 Why?
• Segments and Niche Markets
- The industry has responded to a
variance in traveler tastes by
becoming a more segmented and
niche-based market.

http://en.wikipedia.org/wiki/Tourism
What is Tourism?
• Broad Category of Human Behavior
- Characterized by lack definition
- Encompasses anything and
everything people do
- Defined by traveler tastes

• Global Industry
- Travel and Tourism has developed
into a global industry
- Continued growth and expansion
- Development through differentiation
and competition
 Tourism Expenditures
• U.S. :
2008: $ 775.9 billion
2007: $ 739.4 billion

• Global:
2008: $ 3.2 trillion (leisure only)
80.7 million jobs
238.2 million jobs (direct & indirect)
 Tourism Thru the Waves
First Wave
• Exploration, Discovery, Migration
• Novelty for wealthy, upper class citizens
• Religious pilgrimages; trade; medical needs;
necessity
 Tourism Thru the Waves
Second Wave
• The automobile
• Industrialism: concept of
leisure time or vacation time
• Commercial airlines
• Airline deregulation: travel
more affordable
• The rise of the travel agent
 Tourism Thru the Waves
Third Wave
• The globalization of the industry
• Governments recognize tourism as
a valuable source of revenue
• CVB’s and destination marketing
become more significant
• The Internet becomes a true
Infosphere, a place where all things
funnel and generate commerce
 The Infosphere
“the fusion of all the world's communications networks, databases and
sources of information into a vast, intertwined and heterogeneous
tapestry of electronic interchange”
--Michael Vlahos

• The Internet: A True, Modern Infosphere

• Destination Marketing Organizations
• Vast Communication Networks
 Online Travelers
U.S travel booked online
• 2007: 51%
• 2008: 56%
• 2009: 60% (Projected)
Alaska:
• 2006: 42%
• Overall: 68%
 Travelers and the Internet
How Travelers Use the Internet
• Travel Booking
• Destination Research
• Travel Specialization
• Online Travel Agents
• Itinerary Planning
• YouTube Video
• www.virtualtourist.com
• Second Wave Marketing Still Matters
 Business and the Internet
How Does the Internet Impact Business Travel?
• Increased Opportunity & Competition
• Greater Need for Differentiation
• Customer Centric Marketing
• Segmentation and Niche
• Increased opportunity for small
and medium-sized businesses
 Destination Marketing
The Role of the Convention & Visitor’s Bureau (CVB)
• Economic Impacts of Tourism
• Purpose of CVB’s and Destination Marketing
organizations

Destination Marketing Organizations

• Manage and Promote Tourism
• Brand the Destination
• Research and Track Visitor Statistics
• Promote and Book Conventions
Destination Marketing
 Destination Marketing:
Methods and Tools
The Mission of the CVB
• Manage Stakeholders
• Build a Cohesive Tourism Network
• Create a Membership of Travel Businesses
• Offer a Broad Marketing Vehicle
 Destination Marketing:
Methods and Tools
Branding, Differentiation & Customer Relationship
Management (CRM)
• Branding:
– Define the area
– Create a compelling reason to visit
• Develop a targeted marketing plan
• Customer Centric Marketing
• One-to-One Marketing
 Destination Marketing:
Methods and Tools
• Tools & Examples
• Branding: Anchorage (YouTube)
• ACVB
• Buzz Marketing: Alaska B4UDIE
• Web 2.0 Marketing: Las Vegas
• Blogs: Portland
 Competition in the
InfoSphere
Marketing Challenges
• Fierce Online Competition
• Targeting the right audience
• Differentiation
• CRM
 Competition in the
InfoSphere
Marketing Solutions
• Use CVB’s and Destination Marketing
outlets
• Website & Web Marketing such as
Adwords, viral marketing & blogs
• Encourage online booking and shopping
• Aggressive Local Marketing
• Differentiate, Differentiate, Differentiate
 The Future of the
Infosphere
Globalization and the Infosphere

• Increased global competition,

greater differentiation
• Enhanced Marketing toward
segments and niches
• Continued growth opportunities
for small and medium sized
businesses
 The Future of the
Infosphere
Mobile Devices & Mcommerce
• The Internet continues to grow
• Wireless Data & Wi-Max: travelers stay
plugged in while traveling
• Travel publications and magazines:
remain marginally relevant
• Travel publishers: embrace e-paper, the
Kindle and interactive online
publications
• Mcommerce: booking and shopping
even easier.
Cybertrend Impact on
Travel
Demise of current typical life and work trends +
rise of life and work cybertrends
= more time at home
 Time Poverty
• Implications for hospitality and travel
– The weekend traveler
– The road warrior
 Family Travel
• Family structures are becoming more diverse

– Multi-generations

– Child friendly locations

– Married households

– Family Reunions
 Solo Travel
• http://www.solotravel.org/
 Social Networking
• Online Social
Communications

• Convergence of the
Technosphere and
Sociosphere
 Social Networking
• Online social networks are born
– Podsouth Africa travel social network
– Zimbio.com
– Driftr
– Lonely Planet's Thorn Tree
 Business Alliances in the
Network Economy

• Star Alliance
– codesharing

• Travel Alliance Partners, LLC

Power of Peer Review
 Social Networking:
Keys to Successful Marketing
– Facilitate
– Become part of the community
– Listen to what the masses are saying
Emerging Technologies
• Security
– IRIS
– CLEAR
– New Scanners
• Logistics
– RFID
– GPS & NextGen
 Emerging Technologies
• All-Inclusive Travel Sites
• Semantic Web
• New Interactive Technology
– Microsoft Surface
 Production
• Core Product
– Destination
– Activities & Attractions
• Long-tail Services
 Distribution
• Focuses on packaging, promoting, and availability
• Distribution Functions
– Information
– Bundling
– Relationship management
– Market research
Disintermediation of the
Travel Agent
 Distribution Today
• Streamlining is key
• Link all tourism stages
• Information flows both ways
• On-demand concierge services
 Future Distribution
• Prosumption
• Business Intelligence
– Dynamic packaging
– Relationship Management
Generational Marketing
• Baby Boomers
• Generation X
• Generation Y/Millennials
 Baby Boomer
Characteristics
• Travel tops the list for retirement activities
• Have money and time to spend on travel
• Travel trends
– Active travel packages
– Travel agents & mass media
– Grand Travel

• http://www.msnbc.msn.com/id/21134540/vp/17
577747#17577747
 Generation X
Characteristics
• In their peak career & earning years
• Spend more per trip
• Fond of leisure travel
• Travel trends
– Non-traditional vacations
– Travel with pets
What percentage of people will only travel to
destinations that accept their pets?
• 1%
• 4%
• 7%
• 10%
Gen Y/Millennial
Characteristics
 Gen Y/Millennial
Characteristics
• Significant Spending Power
 Gen Y/Millennial
Characteristics
• Tech-savvy
• More diverse and environmentally conscious
• Travel trends
– International
– Family oriented vacations
– Adventure
 Segmentation

• Psychographics
– Motivations behind
choices
– People’s activities,
interests, and opinions
• Demographics
 Segmentation
• Niche Markets
 The Long Tail of Niche
Travel
• Intimacy & Romance
• Experiencing Different
Cultures
• Ecotourism-Experiencing
Unspoiled Nature
• Natural Wonders
• Culinary tourism
• Adventure
• Historic sites
• Educational
 The Long Tail of Niche
Travel
• Hobby or sport
• Event tourism
• Girlfriend Getaway
• Health tourism
• Space tourism
• Beach/Island
• Visiting Friends and
Relatives
• Volunteer tourism
• Winter tourism
 Bio Sphere
• Impact of the tourism industry on the natural
world
• Challenges and opportunities
• Progressive and promising trends
 Ecotourism Defined
• The International Ecotourism Society: "responsible
travel to natural areas that conserves the
environment and improves the welfare of local
people".
• The Australian Commission on National Ecotourism
Strategy: "nature-based tourism that involves
education and interpretation of the natural
environment and is managed to be ecologically
sustainable".
 New Sustainable
Standards
• Involves travel to natural destinations
• Minimizes impact
• Builds environmental awareness
• Provides direct financial benefits for conservation
 New Sustainable
Standards
• Provides financial benefits and empowerment for
local people
• Respects local culture
• Supports human rights and democratic movements
 Greening of Hotels and
Resorts
• Statistic: An average hotel uses how many gallons
of water per room per day?
• 10
• 50
• 100
• 200
 Ecotourism
• http://www.youtube.com/watch?v=_pQkXkvprO
A
 Greening of Hotels and
Resorts
• Towels and linens
• Light bulbs
• Recycling
• Organic food
• Chemical-free cleaners
 Governmental
Organizations
• Dept of Homeland Security • FAA

• FBI • CDC
TSA
Airport
Security
 TSA
• Responsible for security of the nation's
transportation systems
• Oversees security for the highways, railroads,
buses, mass transit systems, ports and the 450
U.S. airports
• Introduced a “sanitized” blog for travelers
 TSA Service
Commitment
• Professional Security - Service that delivers positive
lasting impressions with proper image and effective
communications.
• Customer Service - Service is efficient while maintaining
the dignity of all passengers.
• Attentive Security - Service that acknowledges the
passenger strives to minimize passenger anxiety and put
them at ease.
• Encourage Teamwork - Service of the highest quality
resulting from combined individual efforts.
• Protect Civil Rights - Service that is delivered with respect
and equity.
…We used to fly to Michigan twice a year to visit my in-laws.
Thanks to the TSA, I no longer have to do that because flying
has become too much of a scary hassle. I figure you guys have
saved me over $3000 in travel costs over the last couple years.
Better still, I don't have to hear from my father-in-law about
how I should go to church more often…
 TSA
http://anchorage.grouphub.com/projects/24205
73/file/20890598/simplifly_video.asx
 Future of Air Passenger
Demand
Air Passenger Demand 2000-2030

Aircraft travel is projected to more than double. Current forecasts

estimate 1.7 billion passengers by 2030.

Revenue Passenger Enplanements

Year (millions)

2000 697.6

2005 736.6

2010 848.9

2015 1,007.7

2020 1,206.6

2025 1,433.4

2030 1,702.5

Note: Forecasts of scheduled passenger traffic from 2020 to 2030 are

based on an assumed annual growth rate of 3.5% currently used by FAA

Source: U.S. DOT/Federal Aviation Administration

 Busiest U.S. Airports
1 Hartsfield-Jackson Atlanta Int’l (ATL)
2 Chicago/O’Hare Int’l (ORD)
3 Dallas/Ft. Worth Int’l (DFW)
4 Los Angeles International (LAX)
5 Las Vegas/Mc Carran Int’l. (LAS)
6 Denver International (DEN)
7 Houston/G. Bush Intercont’l. (IAH)
8 Phoenix Sky Harbor Int’l. (PHX)
9 Philadelphia International (PHL)
10 Charlotte/Douglas Int’l. (CLT)
11 Detroit Metro Wayne Co. (DTW)

Source: www.faa.gov
 FAA
• The current air traffic system cannot keep up with
the projected demand
• NextGen - ground-based radar technology
replaced by satellite-based operations
• Will allow aircraft to safely use airspace in much
closer proximity and with less weather disruption
 Centers for Disease
Control
• SARS - there has been one near pandemic to
date, between November 2002 and July 2003,
with 8,096 known infected cases and 774 deaths
• Cruise ship regulation through Vessel Sanitation
Program
Special Interest Groups –
Aging Population
• AARP has 35 million members
• Medical travel will increase
• Accommodations for comfort, safety, and
mobility will be demanded
 Power of the Disabled
Population
• AAPD (American Association of People with
Disabilities
• Focuses on access and transportation
• Will be relevant to hotels, tours, aircraft,
transport
• The ADA passed in 1990 could be expanded
which would affect travel providers
 Consumer Activism
• 2007 was the Year of the Angry Passenger
• Flight Rights Canada
• The Coalition for an Airline Passenger Bill of
Rights
 Deep Coalitions –
Government and Retail
• Minute Clinic + Airport Shops = prevention and
control of disease
 Deep Coalitions –
Government and Private
Sector
• Registered Traveler (RT) Program
• Pilot of 20 airports was concluded this year
• TSA will partner with service providers
 Deep Coalitions - Hotels
• Hotels in alliance with
– Business parks
– Convention centers
– Sporting venues
– Entertainment complexes

• Ownership by Native Corporations

Deep Coalitions – Niche
Tour Operators
• Booking agencies partnered with large churches
to sell faith-based trips
• University hospitality degree programs operating
small tour business
• Environmental cooperatives contributing or
donating products and services
 Deep Competition
• Hotel/resort industry vs. Cruise industry
• Will continue to compete based on value
• Family vacationers prefer cruises to resorts
 Future of Travel and
Tourism
• Infosphere
– Increased global competition
– Small business growth opportunities

• Sociosphere
– Increased social networking
– Growth of business alliances
 Future of Travel and
Tourism
• Technosphere
– Dynamic packing
– Streamlining
– Long-tail services

• Pyschosphere
– Focus on niche segmentation
 Future of Travel and
Tourism
• Biosphere
– Ecotourism
– Tourist cooperation
– Alternative power sources
• Powersphere
– Shift in airport security control to private sector
– FAA’s NextGen
– Activism
 Dubai
– http://www.youtube.com/watch?v=7eUcRjo9Yv4
Travel and Tourism
Trends

Brad Hillwig, Christie VandenDries,

Al Kell, Lisa Fuentes-Szlemko,
Teri Lindseth