Cultural Trends

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• Changing Trends Challenges Opportunities for
  Cultural
• Heritage Travel in BC
• British Columbia Museums Association
• Thursday, November 20, 2008

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• Dr. Larry Gustke
• Dynamic partnership
• Destination research and strategic planning
• Research for 100 destinations in 26 states
• Communities, regions and states
• Travel industry focused
• National research data and trends analysis
• Writing and speaking

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2008 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
2009 SURVIVE
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2008 and Beyond
Slower Growth in 2008 Decline in 2009 Gas
prices/shortages Household cost of living
ouch! Mortgage/financial crisis War/Terrorism Tra
vel is no longer just a luxury Travel is much
needed THERAPY! So many will keep traveling.
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TIA Outlook for 2009
?
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2008 and Beyond
And it gets worse.
Time poverty
Too many museums?
Is interest declining?
Do we really have to provide edutainment?
And what about funding?
Where do I begin?
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Know YOUR CTC data
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Who is coming to Canada?
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Balance of Travel
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Regional Competition
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What do they do?
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Canadian Culture/Heritage Traveler

• Profile of the Canadian Cultural Heritage
  Traveler
• Several segments of the domestic market
• Museum Related Cultural Institution (3.2
  million/ 14)
• 9 out of 10 have visited history or heritage
  museum
• Heritage Enthusiasts (2.6 million/ 11)
• Visual Arts Enthusiasts (2.1 million/ 9)
• Wine Culinary Enthusiasts (1.8 million/ 8)
• Performing Arts Enthusiasts (1.3 million/ 6)
• More women (56) than men (44)
• Older, and more often from adult-only households
• Participate in multiple cultural heritage-related
  and soft adventure activities, providing
  opportunity for cross-marketing
• Source CTCs Travel Activities Motivation
  Survey (TAMS), Research Resolutions Consulting
  LTD

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Canadian Heritage Tourism Enthusiasts

• Adults 18 2.2 million
• General history museums 86
• Farmers fairs or markets 67
• Local festivals or fairs 65
• Science tech museums 58
• Historic sites 55
• Historical replicas of cities/towns 54
• Pick your own farms / harvesting 39
• French Canadian cultural experiences 31
• Childrens museums 25
• Western theme events 19
• Aboriginal cultural experiences in remote or
  rural setting 18
• Aboriginal attractions 16
• Pow Wow/other Aboriginal celebrations 9
• Carnivals such as Caribana/ Mardi Gras or Rios
  Carnival 8
• Source Special TAMS Tabulations, page s 10-1/4

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Consumer Confidence

• Lowest on record!
• Americans Canadians ?

CANADA August 08 83.2 (2002 100).
August 07 99.5 Sources The Conference Board
(USA) The Conference Board of Canada.
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Consumer Price Index

• Declining prices!
• Good for the consumer
• Bad for the employer

May - October
DEFLATION POSSIBLE If prices fall below the cost
it takes to produce products, businesses will
likely have to cut production and slash payrolls.
Rising unemployment would cut demand even
further, sending the economy into a vicious
circle.
CORE CPI fell 0.1 - down 2.2 in the last
year (does not include food fuel)
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Cultural Heritage Traveler
U.S. vs. Canadian

• Develop a two-tier strategy when packaging and
  marketing museums and related cultural
  institutions one for Canadians and one for
  Americans.
• American Museum Related Cultural Institution
  Tourism Enthusiasts are older and have a more
  upscale demographic profile than their Canadian
  counterparts and the typical visitors from the
  U.S.A. to Canada.
• Source Canadas Museum Enthusiasts, TAMS CTC

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Focus on 365 days
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Travel Industry Segments

• Lodging - returned to pre 9/11 levels profits!
• Airlines come back, falter, mergers costs
• Cruises growth, growth, growthits easy
• Group Tour rebounding appeals to GenX

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Domestic Leisure
U.S. Leisure Travel (domestic person trips)
(TIA) Increase has never faltered
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Leisure in 2009

• Expected Future
• UNIQUE EXPERIENCES
• Beaches Lakes
• Mountains
• National/State Parks
• Recreation
• Winter skiing/ snow sports
• Increase in adults traveling without children
• Year round leisure visits
• Aggressive discounting packaging DEALS!

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Strategy - Focus on Age Groups
Provide a higher level of service and product to
all age groups Baby Boomers 15 more good
years GenX is entering its peak spending
years Younger Generations are
deciders
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Trends for 2008/09
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Strategy Your Customer
What will you do to address the higher
expectations of each of the three primary
customer groups driving spending?
Matures
GensXY
Boomers
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So Many Generation Gaps!
War Generation Silent Generation Baby
BoomerGenX GenY - Millennium M Generation
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War Generation

• 1901-1924
• Age 84
• Helpers
• Sacrifice Service
• For the children
• The Greatest Generation
• Travel industry built for them!

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Silent Generation

• 1925 - 1942
• Age Range 66 - 83
• Right vs. Wrong
• Loyal
• Resentful, determined
• Ive earned it
• Do the right thing
• Traveling with grandchildren

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Strategy - Boomers

• 1943 - 1960
• Age Range 48 - 65
• Me, me, me
• Not loyal
• Impatient
• Forever young
• Choices/privileges
• Spoil Me

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Strategy - GenX

• 1961 - 1981
• Age range 27 - 47
• Suspicious, skeptical
• Disenfranchised
• Concerned
• Waste not
• Self reliant, independent yet
• very group oriented
• Value

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Strategy - GenY

• 1982 - 2000
• Age Range 8 - 26
• Came of age at the Millennium
• Optimistic, confident, self assured
• Strong
• Empowered
• Care for others
• Care for environment
• Love to buy enjoy life
• Relate to the War Generation

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Trend - Innovation
A free market approach to respond to consumer
demands

• Research is key - know your customer

• Current customer is most likely future

• Per person/party expenditures

• Look for unmet needs

• Focus on service upselling

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Trend - Time Poverty

• Time Poverty
• 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

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Strategy - Time Poverty

• CONCIERGE SERVICE
• Internet booking
• Visitor centers selling
• Signage cash registers
• Front-line train to sell
• MUST-SEES Allin-one maps

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Strategy - Concierge
Front-line Training for sales Management must
learn to lead and inspire Ritz Carlton We
are Ladies and Gentlemen Serving Ladies
and Gentlemen
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Trend - Trading UP

• Trading Up
• Truckers drinking lattes
• Consumer is more demanding
• Stay on top of rapidly changing trends
• Luxury experiences even now
• Fine art/craft as souvenirs
• THE TRAVELING PUBLIC IS
• IN A HIGHER INCOME
• BRACKET

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Transumers
Transumers- consumers in transition Term was
coined in 2003 All consumers not just
travel Changes in travel behavior
The world's watch makers may be in trouble as
teenagers increasingly look to their mobile
phones -- rather than their wrists -- to tell
time. -www.adage.com 6/26/08
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New Traveler Expectations
Travel is much needed therapy Keep the
experience up-to-date! - Visitor centers as
experience centers - overnights at historic
sites? - program ads or catalogs?
- website ads or catalogs? When did you
last assess the visitor experience? What can your
museum do?
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Cruising for Culture?

• Cruise Lines (CLIA)
• Out-performed all other
• travel segments since 2000
• - avg. 7.4 annual growth since 1990
• 12.6 million in 2007, 4.6 million more than
  2006, 10.6 million originating from North America
  expecting 12.8 million in 2008
• 60 Caribbean, 20Alaska, 20northeast/west
  coast/other Galapagos Belize
• Approximately 6 million (56) originate out of
  Florida
• 14 out of California/Washington/Hawaii/Alaska
• 8 out of Texas
• 10 out of Mid-Atlanta (NY, PA, NJ)
• 5 out of Massachusetts
• 7 out of Louisiana, Maryland,
• 2008 moving ships to closer ports to avoid air
  costs

Cruise Ship on Land!
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Orientation Facilitation
Visitors Centers Sales Centers
Gateways that create a sense of place A unique
destination
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Trend - Technology

• Technology
• Internet Social Media - 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)

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Strategy WEB Social Media
Sell to a generation of Technophiles Younger
generations cant operate without technology
MUST Be innovative communicate on their terms
or risk losing them
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Geotourism place

• -Increased traveler DEMAND for destinations that
• PROTECT THE AUTHENTICITY
• AND GEOGRAPHIC CHARACTER OF PLACE
• its 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

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Lodging
No other segment of the travel industry has
changed as much in the last decade as lodging
1. New lobby spaces
2. New room design
3. New bedding
4. New bathrooms
5. Improved loyalty programs
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Lodging
Hotel rooms as retail stores
1. Getaway 2. Redecorate 3. Extends the
experience
BB/Inn goal 20 of revenue from retail
Do your local lodging rooms feature your museum?
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Strategy Be Creative

• NEW traveler expectations
• Valet car service at the mall?
• Jiffy Lube valet service?
• Going Green vs. greenwashing
• Local food sourcing at dining
• What can your museums do?

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Museums

• Challenges
• More to doless 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

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Strategy reinvent the experience

• New or through!
• Hearst Castle worst year in 20 years (USA Today)
• Biltmore Estate best year ever!
• Its not the product
• its the EXPERIENCE
• Requires constant reinvestment

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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

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Biltmore and more
NEW TOURS, ATTRACTIONS, EVENTS

• Downstairs Tour
• Behind the Scenes
• Christmas
• Festival of Flowers
• Winery
• Retail
• Dining
• Hotel

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Biltmore Conservatory
Before a grand greenhouse with formal gardens
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Biltmore Conservatory
Renovated extensively1998/1999
.and updated
Retail added - A Gardener's Place Located in the
Conservatory's lower level, this shop features
estate-grown plants, garden accessories, books,
and gifts. PARTNERSHIPS Lowes for plants
200 increase in revenues from an area that was
not a profit center
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Biltmore and more
William Amherst Vanderbilt Cecil
We dont preserve Biltmore Estate to make
moneywe make money to preserve Biltmore Estate!
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Promote Year Round
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Case Study Depot Gift Shop

• 1997 consignment items from historical society
  net 4,000
• 1998 - Museum opens and new items are added
• By 2004 retail sales gross 112,000!

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Case Study Trolley Tour

• Research showed need
• Solicited auto partner
• Created funding for start-up with partners
• Test program
• Results were stunning

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Promote Year Round
You must have a strategy for every month of the
year with a limited budget
HYPERFESTIVALIZATION - Berkeleyism 365 days
less one festival equals 362 days left to
sell too many declining
numbers too much work loss of
volunteers too much money poor ROI
Hint Online packaging and promotions
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Public Libraries
Competing with Barnes Noble
Built 2001 Michael Graves, Architect A library
as a tourist attraction?
Café Catering Book store Meeting space Art
gallery Community center
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Event Programs
the format hasnt changed in decades
An ad that requires them to go to a store at a
later time Why not make it a catalogue So they
can shop at the event PLAYBILL SkyMall
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TAKE-AWAYS

• Yes its a tough economybut people are traveling
• QUIT WHINING and get on with it

2. Embrace CHANGEor face the
consequences Time Poverty bad economy drive
demand for concierge style service selling
REQUIRED - pay attention to Transumers
3. Research and focus on your CORE customers
4. Year Round focus 365 days need periods
(slow)
5. Technophiles demand online marketing
PARTNERSHIPS TEAMWORK to grow your TRAVEL
market
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Want to know more?
Berkeley Young, Young Strategies byoung_at_youngstrat
egies.com 704-677-4018
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