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)
Signing Boat Guide Cowboy Poet Atl-Atl Throwers Female Cod Fisher
As businesses we must find ways to:
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.
Photo Credit: Celes DavarPhoto Credit: GMIST Photo Credit: Experience PEI
Author: Nancy Arsenault 2004, evolved 2007.
(c) 2013. Dr. Nancy Arsenault
So let me ask you
... if you could ... would you
But we can’t package and sell
what doesn’t exist
(c) 2013. Dr. Nancy Arsenault
Attractions: If you could, would you
•Have the courage to lead program innovation against the norm?
•Create ways to connect with niche traveller types?
•Charge £ 150pp /$300 CDN for a 3-hour experience for 4 people?
•Help generate revenues for community partners?
•Value getting LOTS of free media coverage?
The Halifax Citadel National Historic Site of Canada
(c) 2013. Dr. Nancy Arsenault
Soldier for a Day
understood different people are willing to pay for different
experiences
http://www.pc.gc.ca/lhn-nhs/ns/halifax/visit/visit9/visit9d.aspx
The Halifax Citadel National Historic Site of Canada
(c) 2013. Dr. Nancy Arsenault
Hotels: If you could, would you
•Target your local community for your high-end property?
•Enjoy a permission database of 12,000 in your own city to invite regularly to your hotel?
•Excite people in your own community to spend $$$ and choose to stay over night?
•Develop brand aligned people & partners to deliver experiences to your guests?
The Fairmont Empress, Victoria British Columbia
(c) 2013. Dr. Nancy Arsenault
Friends of the Empress Program
... reached an entire new market that now enhances other markets
http://www.friendsoftheempress.ca/The Fairmont Empress Hotel
(c) 2013. Dr. Nancy Arsenault
Local Tour Operator: If you could, would you
•Allocate 75% to product development; 25% to marketing?
•Define your ideal guest as: open minded people, seeking enlightenment to build on?
•Shift from show and tell to engaging visitors with your people, special places and stories?
•Find ways to respond to demand for groups or 12 to 400, but only using locals from a community of 12,600?
Great Spirit Circle Trail, Manitoulin Island Ontario
(c) 2013. Dr. Nancy Arsenault
Great Spirit Circle TrailInnovative Business Model
Built On
Program ModulesPeople and Experiences 1st
www.circletrail.com
(c) 2013. Dr. Nancy Arsenault
Fishermen: If you could, would you
Shediac Bay Cruises, New Brunswick
•Share your passion for the sea with visitors?
•Enjoy a new revenue stream from your boat?
•Take pride in showcasing a part of your history/culture to guests from around the world?
•Hire people who share your passion and love telling stories?
Tranquility Cove Adventures, Prince Edward Island
(c) 2013. Dr. Nancy Arsenault
Non-traditional providers abound
... fishermen, farmers, artisans, artists, chefs ...
(c) 2013. Dr. Nancy Arsenault
Passionate Person: If you could, would you
•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)
Partnerships+&+Connec0ng+to+People,+Place+&+Culture
Increased+Sales,+Brand+Strength+&+Advocacy
RESULTS
• 451,120 visitors, 1/3 said this was the reason to visit Victoria in 2007
• $30M/£15M economic impact• Fabulous exhibit but the passenger manifest and the ‘ticket’
… were the ticket, to an impactful memorable experience• I received my boarding pass and entered …I saw, I sampled, I
tried on, I touched, then … Discovered my fate on April 15th, 1912.
(c) 2013. Dr. Nancy Arsenault
(c) 2013. Dr. Nancy Arsenault
We All Have A Role To Play
Infrastructure
Activities
Programs
To create and deliver on the
memories.
Creating Memories(Operators)
Building Themes, Selling Dreams(Enablers)
Promotions & Media Relations
Destination Development
ResearchMarketDevelopment
Collaborate to Compete
Dare to be Different
(c) 2013. Dr. Nancy Arsenault
Thanks!
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