DestiCorp 2.0

Vail's Gutsy Leader Turns Marketing Strategy Upside Down

Here’s a superb example of tourism leaders re-thinking marketing in response to the down-turn and the emergence of social and rich media. CEO Rob Katz explains via video, of course, how Vail has completely re-thought its marketing strategy and relationships with skiers. 

The full story is available from Advertising Age link here

The recession significantly shortened the planning time  for the purchase and sale of ski experiences - decreasing from 4-6 months to 2-3 weeks.  Vail also recognized the volatility in the marketplace and realized that print media restricted their ability to respond to short-term, even real-time demand. 

Last year Vail had spent 80% of its budget before the vacation period so couldn’t respond to last minute demand.  So they took the brave decision to pull 50% of their ad spend out of print and put in reserve. Vail now uses social media and operates like a political campaign to communicate in real time response to local market conditions.

It’s a brave call – their competitors are still present in the big ski publications with the conventional rich brand messaging but Vail has a war chest with which to strike as demand rises closer to the holidays. No wonder Katz likens himself to Braveheart!

If it works and the gamble pays off, you can bet others will follow – hopefully the print community possesses similar gutsy leadership within its ranks. They’re going to need it.

UK Tour Operators Lead in Thinking About the Future

Kudos to ABTA, British Airways, Carnival UK, Co-operative Travel, The Travel Foundation and TUI Travel plc  and Forum For The Future for leading the way towards some really thoughtful and intelligent debate on the future of outbound tourism.

The report, Tourism 2023, available here, should be mandatory reading for every tourism destination. It’s highly readable, full of substance and deliciously thought provoking. 

Even though it doesn’t quite achieve its own objectives – i.e. “to set out a clear vision of a profitable, successful future in which the travel and tourism industry recognizes its wider responsibilities to society,” it does makes a very good start. While designed to help the signatories identify and address the complex environmental, social and economic issues affecting outbound tourism, it contains enormous food for thought for all places that attract visitors.   

The talented team at Forum for the Future apply a scenario planning approach to paint a picture of four possible futures based on the inter-play of two key variables: the appeal of overseas travel and the presence of inhibitors to overseas travel. 


The four scenarios represent a caricature of a possible future but are described with compelling detail and logic. Sadly,  none is particularly attractive!

1.    Boom and Burst describes a world in which mass tourism continues to grow fast and furiously based on disposable incomes rising in developed economies and the middle classes of emerging economies exercising their right to roam the planet.  It’s a similar forecast to that outlined in the HBR article: Tourism: The Ticking Time Bomb and describes overcrowded, congested iconic destinations and the disappearance of wilderness. 

2.    Divided Disquiet describes a different world in which devastating impacts from climate change, resource scarcity and social unrest have rendered the planet as unstable and hostile; protectionism is rife, yet where the most popular form of  tourism is “doomsday tourism” with a few tourists wealthy or brave enough flock to see places before they disappear. 

3.    In the Price and Privilege scenario, high oil prices have also caused the cost of travel to soar. Many companies couldn’t cope with the efficiency gains needed and went out of business. Capacity shrank and long-haul travel reverted to the aspirational luxury status associated with the turn of the century. 

4.    Carbon Clampdown describes a possible future in which the high cost of carbon , combined with growing environmental awareness and concern, make travel both uneconomic and anti-social.  Tradeable  carbon quotas restrict demand and economies are more localized. 

I simply cannot do justice to this useful piece of work  in a short blog post, so will likely revisit the topic – often. I am also loath to be critical as I would hate to discourage others from showing such thought leadership. But there are some serious limitations – most likely reflecting the fact that a consortium commissioned the work and each company would probably like to think and respond to its findings privately.  

While no one can argue with the six motherhood principles for creating a sustainable future, the three areas where they say urgent action is needed sound lame and self serving: 

1. The industry needs to demonstrate and monitor the economic benefit tourism delivers to destination communities to help protect them for the future and increase their appeal and value to customers. (The insertion of the word NET before benefit would have made this objective so much more credible as it’s the destinations that generally bear the external costs and not the tour operators)      

2. Low carbon innovation – the industry needs to focus on trialling new technologies and taking them to scale; increase energy efficiency, reduce waste and use more renewables. (Of course, but why not set a big hairy audacious goal and say that enterprises based on the grownd will go carbon neutral while we strive to find less harmful ways of getting airplanes to stay airborne?)
                     
3. Driving Customer demand – develop further insight into what will motivate people to take sustainable holidays. (At no point is a “sustainable holiday”  defined nor is the problem addressed. Vacationers could all stay at low impact facilities and drive around in hybrid or electric cars but if the industry as a whole continues to grow at 5% per annum and increases its demand for concrete and kerosene at the same rate, it wouldn't qualify as sustainable)

Tourism 2023 does conclude with a proposed strategic approach that outlines the areas above in slightly more detail and provides one important target – that the outbound industry will sign up to the WTTC target of a 50% reduction in emissions by 2035. It also references the Global Sustainable Criteria but doesn’t go as far as Walmart, for example, in setting a Sustainability Index for the members of the supply chain. 

In addition to the good content and imaginative scenarios, the report does, however, throw down the gauntlet to the managers and policy makers in tourism destinations everywhere.  These are the agencies that should be doing this kind of work – aren’t destinations supposed to determine the kind of tourism they wish to attract and help their businesses operate in a sustainable and beneficial fashion and ensure that their communities benefit not suffer from the influx of tourists? It’s sad and ironic that such public agencies have been upstaged by a handful of tour operators but not necessarily a bad thing….over to you DMOs...... The stage is now set for some action from you…..How are you thinking about the future?

National Parks in Peril from Climate Change

Climate Change is the greatest threat our national parks have ever faced. That's the conclusion of a new report we're releasing today, along with the Rocky Mountain Climate Organization. National Parks in Peril highlights the 25 national parks most at risk.

via switchboard.nrdc.org

The "we" referred to above is the NRDC - that has issued a comprehensive report on current and future impact of climate change on the national parks in the US. Given that National Parks in Canada are likely to experience greater warming levels, such a study for Canada's parks would be timely. Please let me know what might exist. Go to the NRDC site for the report and check out the interactivity supporting this map showing the impact on western US. 

The livelihood of thousands of people involved in tourism around such parks in North America will be negatively affected over the next 20 years and,  given that during that short period, we know that global energy demand will rise by 50%; global demand for food will rise by 50% and water availability will decrease by 30%, the impacts on scenic values, ecosystems and biodiversity both in the Parks and out of them will sadly worsen.  Whether the tourism industry acts to avoid such changes depends on whether it really does care for future generations.

Any state, provincial, or national DMO that fails to include a strategy for carbon reduction in its future strategies is failing both the industry it serves and the future generations that might be their clients.

Using UGC To Attract Visitors - Which Destinations Lead?

In the good ‘ole days – a mere 30 years or so ago – destination marketing was a relatively simple affair: figure out your major selling features, maybe add some positioning spin ( a “snazzy byline or contemporary looking logo), print some brochures, run an ad campaign; ensure there was a “call to action; ” wait for the phone to ring; mail out the brochures and hope for the best.

The Destination Marketing Organization (DMO) had an important role to play in creating awareness and desire among national and international markets on behalf of its small businesses simply because the latter, acting alone, could never develop the same reach, influence or impact. The role of the DMO was “to extend the invitation” on behalf of tourism suppliers and residents.

The Internet has, of course, changed all that and the marketing task has mushroomed in complexity requiring new and unimaginable skill sets and generating a constantly changing set of acronyms. It’s also having a profound impact on the roles of the various members of the tourism ecosystem.

While the role of the DMO used to be to “show, tell and persuade” it is now becoming facilitate, orchestrate and enable. That’s because the same tourism suppliers and residents, who were unable to reach out to international audiences some 20+ years ago, can now enjoy instant contact with anyone 24/7. So while the DMO used to lead from the front with glitzy, push-style campaigns based on a brand, customer and product database they considered to “own;” wise DMOs are learning to lead from behind by allowing and encouraging others to do the persuading for them. Utilizing the power of Web 2.0 (notably open source) and social media, smart destinations are encouraging their residents, local businesses, visitors and third party suppliers tell the destination story. The acronym for this is UGC – user generated content- and is finally capturing the interest of several tourism offices.

Here are just five interesting examples:

1. Visit Britain - According to this press release, Visit Britain will formally launch their new social media initiative at the Travel Distribution Summit being held in London today.

“We want to offer travel organisations promoting Britain a media stream of our reviews, photos and videos”, Comments Justin Reid – Head of Online Marketing for Visit Britain. “UGC has been shown to increase browse time, bookings and online interaction and if we can entice more people to come to the UK using innovative media marketing like this, then this is a win win for Visit Britain and our tourism providers.”

Using software developed by Digital Visitor, Visit Britain enables visitors and residents to upload videos, still images, and make reviews on their own and others’ contributions.

2. Vancouver 2010 – in February next year, Canada will host the Winter Olympic Games. Bell Canada – a major Games sponsor and one of Canada’s largest telecoms company has endeavoured to show the host destination through the eyes of residents. A great idea and one we have been promoting for years but, and I hate to be negative, one that suffers from poor execution. Instead of mashing up a range of easy-to-use, well proven software modules that provide the easy-to-use functionality enjoyed by Visit Britain, Bell had to develop its own proprietary and, may I say it, clunky interface that inhibits exploration. Take a look at Canada Code: That’s if you’ve got the time to fill in all the forms. Too bad that they don’t appear to have been working with the tourism agencies – Tourism Vancouver, Tourism Whistler or Tourism British Columbia (Hello BC)…see below

3. Tourism British Columbia – if prizes were to be awarded to individuals who changed the way destinations are marketed, then it should go to Wilhelm Bakker at Tourism BC. What’s most endearing about Wilhelm is his willingness to share his thinking, his trials, tribulations and triumphs with little or no sense of ego – see these posts.  Here’s the link to Tourism British Columbia’s approach to User Generated Content in the run up to the biggest tourism event to be held in the province since Expo 86.

The significance of this would be lost on the average reader if I didn’t share this observation – Tourism BC is an organization that likes to do things very thoroughly and professionally. They like control over the final product and message. So it takes courage to include the less polished, perfect content supplied by non-professionals. The traditional approach would be to produce a high quality, expensive video but, thanks to Wilhelm’s efforts, they are now including the “right stuff”. 

4. Philadelphia – this tourist board embraced the idea of blogging very early on. While they may have got it wrong to start by creating false blogging personas, whose profile happened to correlate to their major market segments,  they quickly learned by doing. Uwishunu  is a major destination blogging community and success story – Go for it, Gophila.com!

5. Disney – thanks to blogger Josh Hallett, we can follow Disney's experience with Social Media. I’ve paraphrased the key points from his blog post below:

Disney started by partnering with CareerBuilder.com to allow consumers to upload a video to apply for a 'dream' job. For Disney it was a totally new arena. They had no idea how many videos they would receive and what the videos would could contain. The big step was of course letting go. Disney was overwhelmed with the number of video applications they received,  eventually narrowing it down to five finalists. The finalists were posted online and consumers were allowed to vote, resulting in millions of votes. The finalists built their own marketing campaigns, driving even more traffic to the campaign. A side benefit was the number of regular job applications that Disney received. Because of this, it was the most successful recruitment effort to date.

The next project was the Walt Disney World Mom's Panel. They launched a search for some of the most passionate Disney moms. Once again the response overwhelming. They received 10,000 applications over the weekend, but turned away over 30,000 applicants. That was the one major mistake they made. As the program evolved, the internal issue was once again giving up control of the marketing messaging. The mom's panel has helped them overcome the two largest barriers they've faced, affordability and age. That is, what is the appropriate age for a child to first visit the theme parks. The honest, open advice of the mom's helped break down this barrier.

 

The women that did not make the Mom's Panel became part of the Mickey Moms Club. One major step was allowing the club to select their own logo. Once again, for Disney to allow somebody outside the brand to do design and select a logo was a huge leap of faith. But, it worked. Their work with the moms made them look at how they consume media. To help promote the new What Will You Celebrate? campaign they created a viral video campaign. The program allows consumers to create a uniquely branded video to 'celebrate' an event such as a birthday or an anniversary. These videos can then be sent to friends and relatives. This builds the standard pass-along/viral effect, spreading the video even more. The site has had an 85% click-thru rate and paid for itself in just over 18 hours from launch and has gone on to blow past all expectations for views and revenue.

I am confident that there are many other great examples of the use of User Generated Content by Destinations to attract visitors so – I invite you, please, to add comments so we can learn quickly from each other. In later posts – we’ll look at UGC to enrich the visitor’s stay at the destination.