CTC US campaign targets high yield consumers

(Originally published in TOURISM)

With US overnight visits to Canada declining 11% since 2002 (when Canada peaked even though US outbound was in steep decline post 9/11), these are challenging times for the US market, but the CTC is unrelenting in its efforts to feature Canada south of the border. Says US leisure marketing manager Ernst Flach: “The exchange rate, perceived border crossing hassles, WHTI and oil prices are all significant factors, but our biggest challenge from a marketing perspective is with the US traveller: Americans just don’t have Canada on the radar as a vacation destination; they like Canada as a whole, but don’t feel an urgent desire to visit.”

The CTC’s US leisure team wants to change that: “Our US program aims to make Canada a compelling place Americans will want to visit in the short term. Our program is driven by the objective of generating return on investment by targeting and converting highest yield travellers. This implies defining and targeting our best prospects, the ones who are most likely to overcome any barriers between them and Canada.”

These are the people who will spend more, stay longer and who will influence others to come as well, explains Flach. “We want them to think of Canada as a leisure destination of choice, lead them down the path to purchase with partners to close the deal. For this to happen we need to create brand relevancy," he explains. "The new Canada brand gives us an opportunity to leverage and integrate that platform not only within the CTC channels, but also by getting partners to come on board and collectively build a louder Canada voice in the marketplace as a result.”

As it stands, Flach goes on, Canada and all its partners, together, have an advertising share of voice of about 4% in the US. “So there is a lot of competition out there. Plus, consumers actively screen out advertising they deem irrelevant.”

“And looking ahead, we need to plant seeds that will generate marketing and business intelligence. This translates into pilot programs, innovative partnerships, e‑marketing leadership, and on‑going consumer research that will help us in the years to come – the desired outcome of all initiatives being increased tourism export revenues.”

The key word in the US strategy is “segmentation,” Flach points out, something which is rooted in a very research‑based approach inspired by the 2006 US Travel Study that was commissioned by the CTC: “Among other things, the study suggested we should target the US outbound traveller, a sector that is growing by about 5% a year. Outbound folks have passports; they are less sensitive to currency issues. They tend to fly, and the average people who fly spend $851, whereas people who drive spend about $379 per trip.”

Flach notes that previous visitors to Canada represent a 27% share of outbound travellers. Research indicates we should be targeting them, as “people who have been here before are easier to convert, and they have influence on people who haven’t been to Canada.”

The US Travel Study highlighted that the mid‑ to southern US states are the ones with the highest potential yield, because they are home to people who tend to fly, and there is a slight increase in passport ownership as one moves south. Add to this the fact New York, California and Massachusetts are states that are particularly rich in high yield travellers, apply the CTC’s Explorer Quotient (EQ) research, and you have quite the audience filtering tool, explains Flach: “The EQ stems from an in‑depth analysis which groups people in nine different segments based on their travel values and lifestyle motivations. In the US we will focus on three of these segments: the Authentic Experiencer, the Free Spirit, and the Cultural Explorer.”

Members of these three segments have higher passport ownership, tend to be travellers rather than tourists, and spend more: “The Authentic Experiencer is someone who wants to see or observe an authentic vacation moment. The Cultural Explorer is similar to the Authentic Experiencer, but he or she seeks more of a learning experience. The Free Spirit is just somebody who wants to have a great story when they get home, so they can brag about it and share it with their friends.”

This strategic platform will be integrated across all three marketing channels of Direct‑to‑Consumer, Media/PR, and Travel Trade/MCIT. It starts with a constant brand message that will be consistently leveraged in order to position Canada as the destination of choice.

With the direct‑to‑consumer tactics, the first step was determining where they can best be reached. “This means we will put emphasis on New York, LA and Boston. We looked at a number of counties, ranked them in terms of household income, and identified those where the foreign travel index is highest. We narrowed it down to six counties in New York, three in LA, and four in Boston. In a many instances, we drilled down to Zip Code level.

“Now that we know where the target is, the right consumer channels to reach them needed to be identified,” says Flach. “Outdoor advertising indexed high against all three of our segments. This means that in New York and Boston, commuter trains will play a role in our campaigns. In LA, where the target doesn’t really use public transit, it became clear to us that outdoor is a good brand building channel there. It generates a high number of impressions at a relatively low cost per thousand.”

Daily newspaper showed strong reach against adventurers and travellers in all three target markets, Flach comments:

“Newspapers rated high against our older and more affluent targets. For that reason, major dailies will play a role. In addition, Free Standing Inserts (FSIs) will be used again, as they are an important tactical tool for partners. This year, we will be a little more precise about where the inserts are being dropped, using Zip Codes where our targets live. Furthermore, our program is integrated from a media relations point of view, as we have a list of the writers and editors at each of those community papers where we are dropping inserts. We will be contacting them to generate content in the newspapers that will contain the Canada inserts.”

Magazines and e‑marketing will also be used. “We are spending significant amounts on national and targeted regional online buys," says Flach, "and we are in select national and city magazines, too. Of course, the much celebrated Pure Canada magazine is playing an important role in all this, as are niche‑oriented programs in gay and ski markets, while the high‑end fishing lodges campaign from last year has evolved into a luxury campaign.

“In all programs, we have made sure to create opportunities for partners to join the CTC. And the response has been terrific. “In terms of messaging, a new ad campaign we call “Intrigue” has been created. It portrays specific experiences within Canada in unusual, surprising ways which will provide inspiration for the curious traveller to learn more – and visit!” concludes Flach.

Canada’s success at ITB bodes well for the German market

(Originally published in TOURISM)

With 10,000 exhibitors from 180 countries and regions, ITB (originally known as Internationale Tourismus-Börse and held annually in Berlin) represents the full spectrum of global tourism at all levels of the value-added chain. It is therefore encouraging from Canada’s perspective to find out that the March 2007 edition of ITB – the largest marketplace in the world – yielded auspicious signs for Canada in the German market for this year.

CTC managing director in Dusseldorf, Karl‑Heinz Limberg, put it this way: “There is a definite improvement in the air. We have seen a great winter season with an increase of 14% in December and 8% in January, which bodes well. This renewed interest for our destination was reflected at ITB also, where Canada was featured in a newly‑branded pavilion that received many positive comments from both partners and visitors. We had 50 exhibitors from all over Canada, including representatives from every Canadian province and territory and some new exhibitors.”

In Limberg’s assessment, the Canadian industry can expect a slight increase from Germany after a what was a rather bad year in 2006, largely because of the World Cup of Soccer and the high Canadian dollar.

To add a “Wow” element to Canada’s participation, the Canadian Embassy hosted (for the third time) a dramatic reception in Berlin under the theme Keep Exploring. Explains Limberg: “The Canadian Embassy building in Berlin is a very eye‑catching piece of architecture, located right downtown. All the materials used to build it are Canadian. It is a rather fitting venue for an evening celebration that must compete with an array of other events around the city. Needless to say, we were proud to have 225 guests at our event, which is more or less the maximum number of people we can host at the embassy.”

Guest speakers included Canadian ambassador Paul Dubois, The Honourable Stan Hagen, BC Minister of Tourism, Sport and the Arts, and CTC president and CEO Michele McKenzie. Among attendees were some 70 Canadian exhibitors, along with German and Swiss members of the media and trade representatives from the industry as a whole – including tour operators, travel agents and incentives companies.

Limberg notes a celebrity athlete and media personality as well: “Gunda Niemann‑Stirnemann, Germany’s most celebrated speed skater, who won eight Olympic gold medals and several world championship titles between 1989 and 2001, attended the event," he notes. "Today she is a popular sports commentator on TV.” The entertainment component for the event was looked after by Chamaeleon Theatre Berlin (a German‑Canadian variety theatre company best described as a hybrid between comical chaos and Le Cirque du Soleil).

Cool gift for a cool cub: promoting Canada in Germany

Photo: Canadian Tourism Commission

(Originally published in TOURISM)

Talk about content-based marketing! A cover story, TV series and video podcast don't come along every day, let alone a tourism promotion that centres around a polar bear cub. The photogenic little fellow has received wide coverage, playing with his very own beach ball that very clearly says "Canada: Keep Exploring".

The red beach ball is a gift from the Canadian Tourism Commission (CTC), presented to the orphan cub at his home at a zoo in Berlin, Germany. Knut the bear hams it up for his adoring fans from around the world as one of Canada's youngest ambassadors for tourism. Raising his profile even more, Knut is the poster "cub" to raise awareness for the International Polar Year, climate change and everything green.

The CTC office in Berlin presented the ball "to thank Knut for all his good work, shining a light on Canada's amazing wildlife-viewing experiences such as polar bear watching in the northern Manitoba and the Arctic". As part of this campaign, German consumers will get a chance to win a six-night all-inclusive polar bear watching trip to Churchill, Manitoba compliments of the Canadian Tourism Commission, Travel Manitoba and Frontiers North Adventures.

Grappling with a red-hot economy: an HR perspective

(Originally published in TOURISM)

Graeme Barrit is Business Co-Chair of the Canadian Tourism Human Resource Council (CTHRC) and president of Coast Hotels & Resorts. He spoke with TOURISM magazine during the CTHRC Tourism HR Forum in Vancouver on May 1, 2007:

TOURISM: Employee shortages are endemic in Canada, across all sectors. Strong economic growth coupled with an aging workforce are having their impact in all industries, to be sure, but are there any factors that make tourism unique in this overall climate?

Barrit: Immigration policy in this country over the last number of years has not favoured the type of immigrant who has traditionally populated the tourism workforce, so we believe our situation is perhaps exacerbated by this problem. We do indeed face an aging workforce, as well as a growth in our industry that we see as unprecedented, over the next ten years. All projections for tourism industry growth across the country are exponentially larger than they have been historically, so we don't only face a decrease in the available workforce - we also face increased activity in our sector.

TOURISM: Are there overall strategies at play to address this?

Barrit: Immigration is a short-term fix for us that may or may not translate into a longer-term fix. The CTHRC and its member organizations across the country are focused on developing tourism as a real career choice for younger folk. I would like grade ten high school students to be waking up in the morning saying, "I want to be a hotel general manager when I grow up." So, we need to educate at that level, and we need to improve the distribution of the professional credentials that we offer through the CTHRC's emerit program. Tourism needs to be seen as not only a bona fide career choice, but one where you can receive industry recognition that is transportable.

The goal must be to educate, retain and attract more people into the industry, and immigration is only one of the tools and is seen as a near-term strategy. We are very interested in developing employment opportunities in the Aboriginal sector of our population; we see that as a great untapped resource for the industry, folks we'd love to have involved in tourism and hospitality across Canada.

TOURISM: Where are the biggest challenges right now? Is it at the front-end positions (like room attendants, restaurant service) or is it at the management level?

Barrit: It is not felt as strongly at the leadership levels within the organizations. That, too, is an issue, but - for example - a hotel can get by without a manager for a period of time but you cannot get by without a room attendant for any period of time; someone has to clean that room today! So you feel it more at the line level; nonetheless, shortages are present for positions right up through the organizations. When it comes to shortages at the line level, the pain is immediate because you can't serve customers.

TOURISM: How much have wages got to do with the challenge of bringing employees into tourism?

Barrit: We have an unfortunate reputation for being a low-paying sector, but I am not sure the reality supports that reputation. There is a legacy of that, definitely, but over the last five-plus years, as an industry our rate of pay has escalated to the point where we don't believe pay is the issue. People are looking for a more complete work environment, and in a lot of cases, if you can provide that, it will outweigh a dollar difference. Important things include the respect of your peers, professional accreditation, recognition - all those things that present us as a palatable industry.

TOURISM: Talking to people who have gone through tourism management programs, at both the diploma and degree levels, I hear comments that seem to point to industry's lack of recognition for training and certification received - a sense that industry isn't willing to hire people into management positions until they have "done their time in the trenches", in a manner of speaking. Do you hear this too?

Barrit: This is similar, in some ways, to the pay issue. I think there has been a legacy of that attitude, but I think it is fading. I think people are starting to recognize the difference between the acquisition of skills and the development of leaders. Employees need to confirm they have acquired the necessary skills, but then the transition from being skills-based to becoming a leader is a very different process. Education - at some level - is one method of improving leadership skills, so it has a role, and I think you can see an evolution in that thought within the industry.

TOURISM: How is it working at the transition point where employees move from the line level to take on supervisory roles?

Barrit: The transition level from line worker to leadership is a very difficult area for all industries because that first step up is the most difficult one for many people. It is important that organizations recognize this, and provide a support network to help people with that transition. Certainly, it is the most difficult transition in the development of a career.

TOURISM: So, is there room for people to progress from the line to supervisory positions?

Barrit: Of course. There are wonderful opportunities in this industry at all levels, in all sizes of organizations. I don't believe we are a closed shop at all - no forward-thinking organization could allow that to happen within itself.

TOURISM: The CTHRC has put a lot of emphasis on emerit, the organization's training program for the tourism and hospitality sector. How is it working?

Barrit: Well, last year there were over 600 graduates at various levels of certification in the province of Alberta alone. Speaking from the perspective of Coast Hotels & Resorts, all of our employees, as part of their probationary period, complete their emerit certification in their area of expertise. I think the program is very well used by people who recognize its value. It helps with retention, and shows a commitment on the part of employer and employee alike that they have taken the time to do the training. I'll give you one example: we recently employed a restaurant manager in one of our hotels, and when I met the young woman, she was most proud of the fact she had - of her own volition - completed all of the necessary emerit certification online while she was on maternity leave and was looking forward to coming back into the workforce. How can you say "no" to someone like that? And it's great example of people's faith in the emerit program, and having it online is a great advantage.

TOURISM: Senior governments recognize that human resources are a huge issue - in all sectors - these days. Are they investing enough in tourism training?

Barrit: Well, of course, the simple answer is that there is never enough money from government, but the reality is that as an industry we get our share. We are not at all disadvantaged compared with other sectors.

TOURISM: Thank you!

Americans concerned about their image abroad

(Originally published in TOURISM)

Geoff Freeman, executive director of the Discover America Partnership, contends that travellers are more afraid of US government officials than they are of the threat of terrorism or crime. A Discover America survey has found that – by a margin of more than two to one – the US ranked first among 10 destinations that included Africa and the Middle East as the most unfriendly to international travellers. Foreign tourists were worried they will be detained for hours because of a simple mistake or a mis-statement at a US airport; even accessing a visitor's visa appears to be becoming time-consuming and problematic.

The Discover America Partnership is an effort led by some of America’s foremost business leaders to strengthen America’s image around the globe, recognizing that public diplomacy is not the sole responsibility of government, but also of business and the American people. The partnership aims "to empower the American people as our greatest ambassadors – by increasing their opportunities to interact with international visitors. With each new visitor, we have an opportunity to share what is best about America – our diversity, our energy and our optimism."

In a presentation to the Pacific Asia Travel Association Board (PATA), meeting recently in Vancouver, Freeman noted that these perceptions stem from the US government's security responses to 9/11, and called for travel‑friendly improvements such as enabling entry visas to be processed in 30 days or less and a world‑class entry system in which visitors are processed in 30 minutes or less.

Freeman says one factor that consistently stands out is the perception foreign travellers are no longer even welcome to come to his country; he is calling for a targetted promotional campaign to reverse these negative perceptions. Freeman's comments were received with considerable interest from PATA delegates in attendance; some delegates saw the possibility many potential overseas visitors may even be postponing visits to Canada which might otherwise have been part of a larger North American holiday.