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North American Adventure Travelers:

Trends and Attitudes About Adventure and Ecotourism in Brazil

September 20, 2011

ABETA Adventure Travel Summit

Sao Paulo, Brazil

Christina Heyniger Tourism Practice

© 2011 Vital Wave ConsultingTM Proprietary and Confidential: Do not copy or distribute.

Background

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This presentation provides a very brief excerpt of the results of a study of U.S. adventure travelers conducted on behalf of Embratur from May – August, 2010.

The presentation also contains analysis based the results of a study conducted in partnership with The George Washington University and the Adventure Travel Trade Association in 2009 which had the goal of sizing the global adventure travel market ( surveyed consumers from 6 countries, 855 respondents).

If you would like to ask questions or discuss any of the materials in this presentation further, please contact Christina Heyniger: [email protected].

Additional research about the adventure industry is available www.xolaconsulting.com/research.


Goals of This Presentation

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Discuss Current Trends in Tourism and Adventure’s Expanding Role

1

Share Key Findings from North American Adventure Traveler Consumer Study Conducted for Brazil

2

Suggest Ways Brazilian Companies Can Apply This Information

3


Defining Adventure Travel

3


Trends in International Tourism Mass Tourism and Adventure

1950s 2000s

Mass Tourism; 4% average growth per year

Adventure Tourism; 17% growth in 2009 and 2010

2010

26% penetration

50% penetration

2050

?

Time

Gro

wth

4


Adventure Travel Global Statistics, 2010

•  $89 Billion in global spending

•  16% of all departures from Latin America, North America and Europe are for “Adventure Travel”

SOURCE: Adventure Tourism Market Report, Study by George Washington University, Adventure Travel Trade Association, Xola Consulting; 2010

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Brazil wants to capitalize on the growing interest in adventure tourism

• Profile U.S.-based international adventure travelers

• Gauge traveler market size for adventure travel to Brazil

• Gauge tour operator market size for adventure travel to Brazil

• Provide competitive analysis

Embratur requested marketing support,with market research which would:

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Study Method and Bias

•  825 complete and valid surveys of U.S. citizens were obtained from a US National behavioral panel. Sampling error = +/- 3.14%

•  Focus groups with adventure travel tour operators: Geographic Expeditions, Cox&Kings, Natural Habitat, Travcoa, Austin-Lehman, Lost World Adventures, Zegrahm

•  Surveys were distributed online

•  Respondents were clustered according to lifestyle values, for example: family security, a comfortable life, a world at peace

•  Differentiated “adventure” travelers by activities they engage in and classified into four groups:

Hard/ Soft/ Eco/Other

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“Eco-Traveler” Seeks connection with authenticity of people and nature

“Adventure Traveler” Seeks connection with nature via thrilling activities

“Eco-Adventurer” Seeks authentic, thrilling and/or awakening activities

Motivations of Adventure Travelers

Understanding the emotional drivers: activities are really a way into the desired emotional experience.


Personality Profile of the current US consumer for ecotourism and adventure travel

“ECO – ADVENTURER” profile is the largest segment:

•  Authentic

•  Thrilling

•  Awakening Experiences

Values:

•  A comfortable life

•  An exciting life

•  “Wisdom” is low on the list

15% of the U.S.

population fits this profile

9

Photo by Ion David, Travessia http://www.travessia.tur.br/pt-

br/


Eco-Adventurer Personality Profiles

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1. ClubMed-goer with Kids (2%):

•  Family Fun and Exciting Authentic Experiences

•  “I would like to have authentic experiences with my son/daughter, but want exciting adventure for me and my spouse/partner as well. All in a safe environment.”

•  Day trip with family to natural sites, volunteer and educational tourism, “Club Med”.

2. Cultural Adventurer Family (2%):

•  Comfort, Visiting Cultural Places

•  “I want to be able to see another culture with my family, and understand it, yet we need comfort, safety, and familiar surroundings.”

•  Day trip to cultural sites, volunteer tourism.

3. Bohemian Bourgeois Adventurer (6%)

•  Organized, Comfortable, Exciting Discoveries

•  “I am not waiting to complete my bucket list. The time is now, and on my terms. Green is important, but excitement says vacation best.”

•  Safari and Amazon Survival


Eco-Adventurer Personality Profile, continued

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4. Museum and Cultural Enthusiast (3%)

•  Relaxing, Discovery of Culture

•  “If its in the guide, I have to do it, but I would love to also discover unique places with my guide.”

•  Visiting World Wonders

5. Young, Eco-Lodge Traveler (1%)

•  Immersion in Natural Environment

•  “Finding the place to stay that captures the essence of the culture is and adventure in itself.”

•  Trekking, Whitewater, mountaineering

6. Mature Eco-Traveler (1%)

•  -Understanding cross-cultural differences in a relaxing way.

•  “I find it fascinating to engage locals in a conversation, and be able to help them the best I can.”

•  Volunteer Tourism, Kayaking and Trekking with locals


Demographic Profile of Respondents and Use of Tour Operator Services

50% Male 50% Female

25% Age 18-29

40% Age 30-41

20% Age 50-74

15% Age 42-49

37% of this age group use tour

operators

63% of this group use tour operators

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The largest demographic segment is not currently using tour operator services


Current U.S. Consumer Market to Brazil for Adventure Travel

$18.8B Value of U.S. eco-adventure outbound to worldwide destinations

(Based on consumer surveys, 855 respondents from 6 countries representing 73% of global expenditures)

600,000 visitors (per Brazil Ministry of Tourism: 765,380 total travelers from Canada, US and Mexico; approx. 600,000 from USA) We used consumer surveys to find out, how many are engaging in adventure activities? 15% or 90,000 are coming to Brazil and participate in adventure activities (independent and through tour operators). Average spend per trip = $1200 (Average trip = 5-7 days Spend per day = approx. $171 per day)

$108M Value of current eco-adventure to Brazil

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Photo by Ion David, Travessia http://www.travessia.tur.br/pt-br/


Spending Detail: The spending per trip seems low! What’s the story there?

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•  This survey collected information from all clusters of travelers without regard for whether they use tour operators; backpacker and independent adventurers comprise some of this group

•  Embratur data, which does not break out mass vs eco travelers indicates that average spending is $81 per day for tourists in general and $113 for business travelers, with an average of $1100 per trip

•  Package analysis of adventure operator services shows that the average price per day for Brazil is $258. However, we know these businesses are aiming at the tip of pyramid, and are not capturing a large proportion of travellers, so this number is on the high end

The current per trip spending is $171 per trip; this indicates an important opportunity. There is room for growth!


Potential U.S. Consumer Market to Brazil for Adventure Travel

The final result is growth from 90,000 people to 241,000 people for adventure travel to Brazil @$1200 per trip = $426 million per year

Increase Tour Operator Demand

Bring this up from 1% to 3% = 144,000 people

Increase Independent Adventurers

Double this from 80,0000 to 160,000 people

Convert More Mass Tourists

600,000 mass tourists – 90,000 eco adventure = 510,000 mass. Convert 10% of those = 51,000

Tour operators taught us that they currently send 1% of guests to Brazil (about 48,000 people). Increase this to 3% of guests, you have 3x the volume of 144,000.

Consumer survey responses indicate few people use tour operator services

$426Million

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Conservative projections for possible growth in 24 months…


25%

20%

18%

16%

8%

8% 3%

Landscape of US Market of Eco-Adventure Tour Operators

small businesses $5,000,000 in annual revenues

estimated $1,000,000 in annual revenues

$500,000 in annual revenues



over $30,000,000 in annual revenues

over $10,000,000 in annual revenues

Estimated Total number of eco-adventure tour operators = 3383

Total Annual Revenues = $14, 839, 027, 500

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Why is Brazil Under-Represented Among Tour Operators

Tour operators don’t offer more Brazil for the following reasons:

1)   Low awareness

2)   Fear of administrative hassles (visas, for example)

3)   Lack of understanding of adventure opportunities, dominating image of Brazil is Carnival, for example

4)   The competition does a better job of raising awareness for eco-adventure, especially around icons such as Macchu Pichu, Galapagos, Patagonia

Brazil needs to select and promote adventure

related icons

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Brazil’s Market Share in contrast to the competition

•  3.3% of US eco adventurers have been to Brazil in the past 3 years

•  5% have been to Australia

•  3% have been to New Zealand

•  25% have been to Mexico

•  31% to Canada

•  75% travel within the United States

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What makes eco-adventurers choose Brazil?

Travelers see Brazil as a part of Latin America and choose it as a destination from among other Latin America destinations, after they’ve already decided to visit Latin America

• Advice of Friends and Family, Internet Searching • Attractive offers from Tour Operators

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Selling Eco-adventure to Brazil Looking at Current Branding

Great for Consumer Recall

Does not convey Brazil’s competitive differentiators to eco-adventurers

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What about the language used to sell “adventure” travel and “ecotourism”?

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It doesn’t matter what you call it; people choose the trip based on how well it is described to them


Next Steps

Local Activities

Web 2.0+ New tech is lowering cost of entry for this

fragmented sector into travel distribution

Search Web search is

increasingly focused on local (e.g Yelp,

Google)

Mobile: Using mobile devices to deliver relevant local

content from GPS, profile, social network

Social: Tying social

connections into online “local”

recommendations

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Thank you! For more information:

[email protected]

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