Tourism Trends 2012

Travel and Tourism Trends 2012

A Look at the Numbers

2012 Ontario Travel Forecast Results

Disposable Income 3.9%

Visits to Ontario 2.1%

Overnight Visits to ON

1.2

Huron County 2009 Statistics Canada Reports

854,000 total visits; 389,000 overnight visits

94% Ontarians (82% ON);

4% U.S. (11% ON)

Middlesex, Waterloo, Perth, Huron, Bruce –

57% all visits

Top 5 + Halton, GTA –

60% overnight visits

Main purpose: pleasure -

60% (43%), VFR -

37% (43%)

Overnight: pleasure/VFR –

98% (88%)

Source: Ministry of Tourism and Culture Fall 2011 Fall Travel Forecast Results

Tourism Trends in Ontario

Consumers are Caught in the Time Crunch:

Adults – longer & less standardized work hours

Longer commutes

Technology is never turned off

Kids and parents over-programmed

Sandwich generation – dealing with families at home and aging parents

Increasing costs of leisure/travel activities

Time Crunch Implications

Spontaneous Travel

Greater chance of responding to specific offers

Need to know your consumer preferences

Need to develop qualified database through visitation or with good partnerships

Find the balance between too much of a good thing!

Newsletters can present timely offers to drive sales at a time when there is excess capacity

Time Crunch Implications

Intergenerational Travel

Survey by netmums (U.K.) 75% planning a holiday with grandparents in coming year

Ontario resorts, travel to discover ancestry and former pastimes (steam trains, working farms, Maple Syrup Festivals) increased popularity

Travel for Special Occasions

Milestone Birthdays

Milestone Anniversaries

Reunions with old friends

Competition is fierce

Competitive marketplace, Value oriented

Ontario outbound (Jan – Sept 2011) ↑

9.9%

Ontario inbound (Jan – Sept 2011) ↓

2.1%

Choice and price options more competitive than ever (need to know customers better than ever)

Growth of travel deals websites

Travelzoo

Groupon: Groupon Getaways

Living Social – Escapes

Airfarewatchdog.com

SniqueAway- hotels in private sales -7 days or until sold out

Kayak.com/explore – what’s available at a specific pricepoint

Groupon

–

What’s the deal?

$3 billion in worldwide revenue in 2011

Discounts 50 to 90%

Minimum number of purchases required

Merchant generally receives 50 – 60% of cost to consumer

Rice University study – 66% profitable, 40% won’t run again in next 6 months

Must be carefully planned as part of a marketing initiative

Works for surplus inventory or to drive travel at slow times

Need to be cautious about cannibalizing existing customers – could be a one-off

New Technologies will dominate

Companies will use social media to get you to be a brand ambassador – points for booking, facebook promos & contests

Your friends will influence your travel decisions through Social Media

Gogobot, Trippy, Tripped Off, AirBnB

Uploads of trip photos on Facebook

Geo-locators will be tied to what you’re doing

Changing Demographics

Ageing

1.8 m, 65+, 2009

3.7 m, 65+, 2030

2030 seniors will account for 21.9% Ontarians

↑

health care, travel; ↓

consumer goods

Growth in large urban centres – GTA: 46.7% of Ont population in 2009; 50.4% in 2030

Changing faces

By 2017 1 in 5 Canadians will be a member of a visible minority (South Asian, Chinese will be the largest groups – 20% GTA)

Demographics Implications

Ageing population

Increase in soft outdoor – walking, boat tours

Potential for off–peak travel

Stay away from weekend crowds, busy family time

Increased disposable income for travel

personal enrichment, educational learning

Urban Dwellers

Access out of the City?

Nightlife implications – quaint vs boring

Increasing Diversity

Long-term investment approach – niches within niches

Product Development and Integration – what are the barriers

Communication Strategies how and in whose voice?

Grassroots and events marketing

From Activities to Experiences

High Service Expectations

Customization of Experiences

Personal Concierge

Niche vs Mass Experiences

Excellent customer service at all price points

NO service surprises – broadcast on Trip Advisor

Stand Out in 2012