The E-Factor Belfast, Northern Ireland 5 March 2013 The Next Tourism Frontier Keynote Address By: Dr. Nancy Arsenault, Managing Partner We hope the information shared stimulates thinking that helps grow your business or destination. Feel free to share the contents, but if you extract slides for an alternative use, please credit the source: Dr. Nancy Arsenault@ Tourism Cafe Canada. Thank you. (c) 2013. Dr. Nancy Arsenault The Experience Factor • New visitor value • New business opportunity • Strengthens brand • Host and community pride • A response to growing demand The customer experience ... the next competitive battle ground & new currency. It’s about the memories
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The E-Factor
Belfast,Northern Ireland5 March 2013
The Next Tourism Frontier
Keynote Address By: Dr. Nancy Arsenault, Managing Partner
We hope the information shared stimulates thinking that helps grow your business or destination. Feel free to share the contents, but if you extract slides for an alternative use, please credit the source: Dr. Nancy Arsenault@ Tourism Cafe Canada. Thank you.
(c) 2013. Dr. Nancy Arsenault
The Experience Factor
• New visitor value
• New business opportunity
• Strengthens brand
• Host and community pride
• A response to growing demand
The customer experience... the next competitive
battle ground & new
currency.
It’s about the memories
(c) 2013. Dr. Nancy Arsenault
Success Requires
• A paradigm shift
• Leap of faith in the customer
• Truly putting the customer at the heart of your operation
• Investing in innovation, creativity and industry product & market development
• Recognizing results take time, not as quick as marketing campaign
Shared-riskInvestmentInnovation
Collaboration
(c) 2013. Dr. Nancy Arsenault
We’re on a journey
The Future
1999
As you are
•The customer seeking authenticity, engagement, personalization & being in the conversation
•Internet creating a new playing field
•More product development insights
•Increased competition
•The Experience Economy and emerging field of Customer Experience Management
•Growing demand
Influenced by: The Future
1999
(c) 2013. Dr. Nancy Arsenault
• 85% experiential travel as important/extremely important• 53% planned new experiential programs in 2012.• Baby boomers have the ability to pay.• Europe and South America are excelling• Food/wine/culinary tours, historical and educational, art
and culture in demandUSTOA, Dec 2011
There’s a growing demand
“Travellers have a desire for authentic experiences. They face a lot of complexity in terms of finding these experiences, putting them together and finding value.”
– Scott Nisbet, Globus
Seeing the sights is no longer enough.
Experiential travellers want to venture beyond the beaten tourist paths and dive deeper into authentic,
local culture, connect with people in deep and meaningful ways, and fulfill a desire to give back.
More than ever people are travelling their passions.Joe Diaz, Afar Magazine (2009)
Engage visitors in a series of authentic, memorable travel activities, revealed over time, that engages the senses, are inherently personal and make connections on a physical, emotional, spiritual, intellectual or social level.
•Forge on with a tourism idea when people think you’re nuts?
•Build a 10-day pre-tourism season festival in a town of 785 people?
•Try to grow the spring season to help all businesses?
Trails, Tales & Tunes: Festival Norris Point Newfoundland Population: 785
(c) 2013. Dr. Nancy Arsenault
Every community has a unique stories
and authentic storytellers
... that are yours
(c) 2013. Dr. Nancy Arsenault
Each of these represent a success story.
What do they have in common?
They Use Experiences to Compete on Value
Value is the immunization factor. When there is no difference in value people buy on price alone. Competing on value allows you to create a ‘be different’ strategy that your competitors will have difficulty copying.
Roy Osing. (2009). Be Different or be Dead
Credit: Inniskillin The CN Tower:Photo Credit: CTC
(c) 2013. Dr. Nancy Arsenault
They CHOOSE to Raise the Bar on:
•Engagement •Personalization •Connections•Value ... for travellers
•Partnerships•Collaboration•Shared revenue•Competitive positioning•New business
A tale of two attractions
The First Attraction ...
New and right across from the other attraction
Beautiful repurposed heritage building
The BC Experience
The 2nd Attraction
Which seems more appealing?
Why?
(c) 2013. Dr. Nancy Arsenault
One focused on the physical
assets
The other on emotional
engagementGuess who’s
still in business?
Infrastructure
Activities
Greater Differentiation,
Emotion, & Engagement
No to Low Differentiation,
Emotion, & Engagement
Competitive Position
Pricing & Profits
ROI
PhysicalEngagement
Cost Based Pricing Value-Based Pricing
The First Attraction Focused on the “Stuff”
Programs
Framework: Lesley Anderson & Nancy Arsenault (2012)
The 2nd Put You In The Story
Infrastructure
Activities
ProgramsGreater
Differentiation,Emotion, & Engagement
No to Low Differentiation,
Emotion, & Engagement
Competitive Position
Pricing & Profits
ROI
ROI + ROE
Emotional Engagement
PhysicalEngagement
Cost Based Pricing Value-Based Pricing
The 2nd Attraction “Engaged Travellers IN the Story”
Framework: Lesley Anderson & Nancy Arsenault (2012)