Making the Shift to Experiential Travel

TIABC Tourism Summit Vancouver BC

6 November 2012 10:45 - 12:00 An Industry Workshop with: Lesley Anderson, Canadian Tourism Commission & Nancy Arsenault, Tourism Cafe Canada

Making the Shift to Experiential Travel

What is experiential travel? Driving the value proposition up - from a business and destination lens Tips from the Canadian Tourism Commissions Signature Experience Collection Members

Yesterday we heard Minister Bell say ...

25 years ago we were competing against 10 signiant destinations who had 80% of the market Today 200 destinations! Theres a lot more competition!

We have to differentiate. Experience represents one method that can generate new revenue and new value.

Experiential product development and marketing focuses on emotion

Experiential Travel

Edible Canada,Vancouver BC

Barkerville, BC

Engages visitors in a series of authentic, memorable travel activities, revealed over time, that engage the senses, are inherently personal and make connections on a physical, emotional, spiritual, intellectual or social level.

Source: Nancy Arsenault (2004)

Benets from Raising the Bar on Engagement, Personalize, Connections & Value
Greater Differentiation, Emotion, & Engagement

Partnerships+&+Connec0ng+ to+People,+Place+&+Culture

Emotional Engagement
Competitive Position

Programs

Physical Engagement
No to Low Differentiation, Emotion, & Engagement

Activities

ROI + ROE

Infrastructure
Market Price

ROI
Pricing & Prots

Increased+Sales,+Brand+ Strength+&+Advocacy
Value Price

(c) 2012 Lesley Anderson & Nancy Arsenault

What business are you in?

Infrastructure

Creating Memories
(Operators)

Activities Programs

Tourism Marketing

Selling Dreams
(Enablers)

Value of Economic Progression

Greater Differentiation, Emotion, & Engagement Activities/ Services Increased Sales Deliver Competitive Position Goods Make Commodities Increased Sales No to Low Differentiation, Emotion, & Engagement Market Price Pricing & Prots Premium Price High Volume Low Yield Increased Sales Experiences Stage Low Volume High Yield

Barkerville, BC

Edible Canada, BC

Inniskillin, ON & BC

Infrastructure Based Companies

Fairmont Empress, BC

Edible Canada, Vancouver, BC

www.ediblecanada.com Greater Differentiation, Emotion, & Engagement Low Volume High Yield

Granville Island Chefs Market Tour (Experience) Competitive Position Restaurant Dining (Service) Culinary Artisan Store (Goods) No to Low Differentiation, Emotion, & Engagement Market Price Pricing & Prots Food ingredients (Commodities) Premium Price High Volume Low Yield

Commodity: Goods: Services: Off-site Culinary Adventures:

Vegetables: $1 to $3/kg Olive Oil: $12 to $100 Served Meals: $12 to $23.00+/per person Chefs Market Tour: $35/pp (2- 8 pax) Chefs China Town Tours: $40 - 60/pp (2-8 pax) Guest Chef Market Dinner: $100/pp (14 - 24 pax) Gourmet Kayaking Weekends: $750/pp (8 - 12 pax)

Edible Canada, Vancouver, BC

www.ediblecanada.com Greater Differentiation, Emotion, & Engagement

Competitive Position

' nt, ue me 'Val e ag nd n g n s 'a 'E o n 4o ar' nnec 'B he C o g't on,' i si n 4 Ra aliza n rso Pe

' I'& RO

E RO

No to Low Differentiation, Emotion, & Engagement Market Price

I RO

Sales,'Brand'Strength' &'Advocacy
Premium Price Pricing & Prots

Fairmont Empress, Victoria, BC

www,friendsoftheempress.ca Greater Differentiation, Emotion, & Engagement Low Volume High Yield

Friends of the Empress (Experience) Competitive Position Retail (Goods) No to Low Differentiation, Emotion, & Engagement Market Price Pricing & Prots High Volume Low Yield Dining, Spa, Restaurant (Service)

Hotel (Commodities) Premium Price

Power River Sea Kayak Ltd, BC

Arctic Range,YK/NWT

Activity Based Companies

Gatheralls Pufn and Whale Watch, NL

Snowy Owl Sled Dog Tours, AB

Gatheralls Pu
Greater Differentiation, Emotion, & Engagement

n & Whale Watching

Low Volume High Yield

www.gatheralls.com

Picnic with the Whales (Experience) Competitive Position Restaurant Dining (Service) Culinary Artisan Store (Goods) No to Low Differentiation, Emotion, & Engagement Market Price Pricing & Prots Food ingredients (Commodities) Premium Price High Volume Low Yield

Great Spirit Circle Trail, ON

Heartland Tours, MB

Cape Race, NL

Program Based Companies

Experience PEI

Greater Differentiation, Emotion, & Engagement

Low Volume High Yield

Experience the Past, Enjoy the Present (Experience) Competitive Position Training & Education (Service) (Goods) No to Low Differentiation, Emotion, & Engagement Market Price Pricing & Prots High Volume Low Yield

(Commodities) Premium Price

Think About Back Home!

Greater Differentiation, Emotion, & Engagement Experience Low Volume High Yield

Competitive Position Goods

Service

No to Low Differentiation, Emotion, & Engagement Market Price

Commodities

High Volume Low Yield Premium Price Pricing & Prots

Developing Experiences
Tips from Members in the Collection

Making the Shift

Your Regional DMO Your Provincial DMO The CTC The Customer!

The Customer! Your Company Your City DMO

as a destination

Dawson Creek, BC Mile 0 of the Alaska Highway

Shift #1: From an infrastructure focus on icons and roads

To understanding the touring experience from a visitors perspective

Your Journey Starts Here

Team Tourism Dawson Creek embarks on a journey of re-discovery and reinvention

From promoting routes, icons, 17 things to do:

Engaging Visitors in the Story
All need an anchor Feeding the Curious Mind

Linking to History Bragging Rights

Sharing the Culture

To becoming the hub for city and regional experiential itineraries targeted to specic traveller types.

Based on CTC Traveller Types

Authentic Experiencer
Understand destination Explore history Personal control over lives Retired, not time stressed Seek self improvement Ethical, eco-conscious Personality: Ethical Eco-conscious Curious Open minded discreet

Cultural Explorer
Journeys w/ likeminded people Enjoys ancient & modern Learn about place, time, culture Like to & will participate in local culture Off beaten track

Free Spirit
sampler indulgent Constant explore Journey w/ likeminded people analytical Free and easy Personality: Open minded Ambitious Enthusiastic Fun Adventurous social

Putting The Personality: Traveler Types Positive Open minded in ContextCurious Risk taker with the Flexible Easy going Mile 0 Postenergetic Seen @ Photo Seen @ Nature reserves Heritage sites World heritage Cultiural Opportunity events Hiking trails Museums
museums festivals

Seen @ Tourism hotspots Top restaurants Luxury hotel Night clubs

Identifying Our Traveler Types & Finding Commonalities

To increase the reasons to stay

Walking Experiences

Back to Basics

Alaska Highway Experience

Journey Starts Here

Welcoming Experience Experience Routes

Keltie's Themes

Shift 3: From promoting the route and icons, to BIG PICTURE THINKING identifying ways to engage, and connect

Key destination shifts From ...

A list of things to do in the community A focus on the market segment - RVs and Caravaners Non-revenue generating focus on an icon

To ...
Examining how to engage people in the community. Travel motivations, attitudes and values
Becoming the hub for visitors to engage in regional itineraries and walking tours that are unique to the area, celebrate the history of the highway and community

Making the Destination Shift in Marketing

New Experience-Based Themes

Identifying the Iconic Enriching local avors Revealing the story Expanding personal horizons Building authenticity

Good bye to heavy place-based text and place based imagery

Hello experience and leading with 44 pages of regional experiences to enjoy the destination ... before the details on geography and traditional information

We are now working with 30 experience partners; companies that have a mutual respect for the customer and the caliber of the experiences they are seeking .. It used to be that tourism entities viewed their neighbors as competitors. Now we have a chance to deepen our understanding of the traveller together and help Canada compete for visitors.
Ingrid Jarret,Watermark Beach Resort

Marketing Experiences
Tips from Members in the Collection

New Signature Experience Collection Case Studies

http://www.canada.travel/SEC

Thanks!

nancy@tourismcafe.org 250.391.6077 www.tourismcafe.org

anderson.lesley@ctc-cct.ca 604.638.8364 http://caen.canada.travel/