Changing consumer habits warrant better-targeted marketing

(Originally published in TOURISM)

Le Québec maritime was founded in 1997 by five tourism associations seeking to promote their regions to markets outside Quebec. Christian Ouellet, a research officer with the organization, says he noticed an important consumer shift since 2002 in how consumers find out about products:

“Consumers are less and less likely to access tourism products through travel agents and are becoming more autonomous when planning their trip. This is mainly because of the increasing role played by the internet.” Ouellet refers to a 2005 study conducted among visitors to the region which found that two‑thirds of those surveyed had made use of the internet to plan their trip.

“The internet is becoming a very important planning tool," he points out. "This means it is also becoming an important marketing tool, which compels Québec Maritime to change its practices. More and more, we use the web to lure consumers; for instance, this year we worked in partnership with Tourisme Québec and the Société des établissements de plein air du Québec (SEPAC) to stream 20‑second short videos introducing the Québec maritime experience on outdoor activity and weather websites. The intent was to get the web users’ attention and to lead them to our marketing campaign sites where products and tourism offerings were featured in greater detail.”

Depending on their profile, surfers were directed to different web channels. ‘Contemplative’ visitors were directed to one channel. Those surfers targeted as ‘outdoor enthusiasts’ were directed to another. This approach,” Ouellet says, “fosters a market segmentation which allows us to get to know our clients better. It is also harmonized with our exit survey reaching 1,500 tourists from outside Quebec (English Canada, the United States and Europe).”

With this intelligence in hand, Ouellet goes on, “we are able to flesh out a general portrait of our visitors. It allows us to not only establish our visitors’ point of origin, but to target regions, cities, neighbourhoods and streets. With the help of available statistics (like those of Statistics Canada), we can get to know the profile of people who live there, what their specific family income is, whether or not they have children, are part of the workforce, or are retired. All of these factors influence the way we commercialize our product.”

By gaining greater knowledge of visitors’ profile, it becomes easier to speak with them in terms they can relate to. Ouellet says his team has witnessed a growth in marketing tactic performance as a result. It also yielded valuable intelligence, like an observed increased concern for the environment: “We need to offer a quality experiences that respect the client as well as the environment.”

The other emerging aspect which matters is authenticity, Ouellet finds. “Along with beautiful landscapes, considerations around nature, local hospitality and culture also matter.” More specifically, he highlights consumers’ curiosity around what is commonly referred to as “free” culture (as opposed to museum or artisans shop visits).

The memorability of the travel experience often stems from people finding themselves suddenly on shared, yet unfamiliar ground, thereby creating opportunities for exchange. That is often the essence of the journey, and it is the element we all too often tend to put aside.

CITM Plus: a CTC‑driven value‑added opportunity in the Chinese market

(Originally published in TOURISM)

Continuing its strategy of increasing Canada awareness in China, the Canadian Tourism Commission (CTC) has invited Canadian operators with an interest in this emerging market to take part in a value-added opportunity that is bundled with participation at CITM 2007 (China International Travel Mart 2007) scheduled to take place in Kunming from November 1-4.

“Without approved destination status (ADS), we have limited opportunities to promote Canada in China,” says Derek Galpin, the CTC’s managing director in China. “We continue to promote Canada through extensive agent training, FAM tours for trade and media every month, and we also have a significant presence at the major trade shows," he continues. "We try to complement trade shows with more targeted business‑to‑business events such as Showcase Canada to provide opportunities for our partners to build strong personal and business relationships with the travel trade.”

CITM alternates between Shanghai and Kunming, Galpin explains. “After the show in Kunming this November we have added a week of business‑to‑business meetings in Shanghai and Beijing, where participating partners can meet with new travel agencies. These agencies are based in large affluent cities in Southern and Northern China which have a strong interest in selling Canada, and this fits with our tactical initiatives for 2007 and beyond to expand and develop new market centres.”

Galpin notes that his office has invested considerable energy on Beijing, Shanghai and Guangzhou over the last two years, and it is now time look at other big cities and regions in cooperation with key Canadian partners.

CITM Plus takes the delegation to Shanghai on November 4. On November 5, the CTC and DMOs will conduct a full day of training for 100 operational staff from Shanghai agents, while other partners will be free to do sales calls in Shanghai. In the evening, there will be a reception with teambuilding activity for new agents and Canadian partners. On November 6, the CTC events will feature pre‑scheduled appointments with the new Chinese agents from Nanjing, Hangzhou, Suzhou, Wuhan, Chengdu, Fuzhou and Chongqing and a farewell evening dinner. “The evening events are designed to reinforce friendship and strengthen relationships in a social as well as a business environment, and this is essential when doing business in China,” says Galpin.

On November 7, the schedule is repeated when the delegation travels to Beijing, and November 8 will feature a full training day for operational staff from agencies in Beijing. This will be followed the same evening by a reception and team building activities for new agents from the Northern cities of Qingdao, Jinan, Xi’An, Changchun, Zhengzhou, Harbin, Shenyang and Dalian. These agents will then attend the business‑to‑business session with Canadian partners on November 9, followed by a farewell dinner.

Galpin is confident that those Canadian partners and DMOs who take part in these marketing activities will reap substantial benefits from their investment, because perhaps more than anywhere else in the world, Chinese culture invests immense value in relationship‑building. And as we all know, there is no industry that values relationships more than tourism.

More Asian women are travelling

(Originally published in TOURISM)

The CanWest News Service reports Asian women are travelling more than ever before, citing a recent survey which found – out of every 10 Asian Pacific travellers – four are women. That figure used to be one in ten in the mid-1970s.

The news agency notes that in the past 12 months, 54% of Chinese women surveyed had undertaken an international trip for personal reasons, compared to 47% of men, according to the MasterCard survey, Women Travellers of Asia Pacific.

The most active female travellers originate from wealthier places like Tokyo, Singapore, Taiwan, Beijing, Shanghai, Hong Kong and Seoul, and tend to have higher education levels and higher disposable incomes. Don Birch, president of Abacus International, an Asia‑Pacific travel service firm based in Singapore, is quoted as saying these women are represented across demographic segments: “From the young to businesswomen to energetic grandmothers, they're travelling more often – and further – solo, in pairs with their female companions or as members of women‑only interest groups," he said.

KANATA 2007 introduces new era in CTC’s Japanese market efforts

(Originally published in TOURISM)

It will come as no surprise that the number of Japanese visitors to Canada and some of other long-haul destinations is no longer what it used to be – Japan numbers have been declining since 1996. As a result, the Canadian Tourism Commission (CTC) has decided to adopt an aggressive approach to reach deep into the travel preferences of Japanese consumers. The approach is based on harnessing the concerted efforts of the CTC’s partners in Canada and Japan, according to acting marketing manager of the Asia/Pacific marketing team in Vancouver Kyoko Manabe.

“To revitalize the Japanese market, we have grouped together with our Vancouver‑based team," says Simon Pitt, Managing Director of the CTC office in Japan. "We have come up with an energetic strategy and KANATA 2007 will be a very important event to demonstrate Canada’s new approach and partnerships." KANATA is an annual event organized by the CTC, where Canadian companies meet with Japanese professionals from travel industries in order to promote their products. Since its launch in 1990, KANATA has grown and gained a stable reputation among travel professionals. In 2007, it will be held from October 15 to 19 in Tokyo, Nagoya and Osaka, and will feature the new brand Canada.

Says Pitt: “KANATA 2007 will feature enhanced experiential products from Canada which reflect a modified approach. We will expand our target market segments by shifting from conventional demographics and adopting more of an interest‑based segmentation rooted, for instance, in a grouping identified as ‘local flavour seekers.’ These are people who want to come to Canada and experience it as Canadians do.”

They may want to stay at a local family’s home, or take cooking classes for example. Pitt admits these consumers may not constitute a huge volume in the general sense, “but it is substantial in terms of influencing knowledge about Canada in Japan,” he points out.

To support those efforts from a communications perspective, the Kanata Media Event will plant seeds on the media side, through proposed story ideas in five regions where new experiential products will generate a longing for media representatives to travel to Canada.

“KANATA will feature tea blending by BC’s Salt Spring Tea Company, ranch‑style Alberta beef and Canadian beer, Niagara wines and Quebec cuisine, PEI quilt displays and berry water testing, as well as performances by Ontario First Nations artists,” Pitt says.

One hundred key Japanese media representatives are expected to attend the event at the trendy Honey’s Garden in Roppongi (Tokyo), where a Canada House will be “erected” for the occasion. “This spot is a hot destination known for luring sophisticated socialites,” notes Pitt. “It is located in an area named the ‘Art Triangle’ because of the number of contemporary museums nearby.”

A gift package has already been mailed with Canada Day greetings and tips to 100 qualified media representatives and received overwhelming responses. KANATA Media Event guests will receive a passport as part of their invitation letter, which will be stamped as they come in. The garden space will be lit up with candles and colourful projections featuring CTC graphics. A special press kit will be issued for the occasion.

Kyoko Manabe stresses that the concerted efforts around KANATA 2007 (including those of the Canadian partners) bode well for the future of the Japanese market. She invites Canadian sellers to join all the partners, to shed new light on Canada’s tourism offering in Japan.

Visit www.kanata2007.com to find out more.

Canada‑Japan Conference held in Niagara Falls

(Originally published in TOURISM)

The 11th edition of the Canada-Japan Tourism Conference (CJTC) was held at the Sheraton on the Falls Hotel in Niagara Falls from September 5 to 7, 2007. According to Canadian Tourism Commission (CTC) chair Charles Lapointe, the conference played a crucial role in fostering business ties with trading partners who currently account for 14% of Canada’s tourism revenue from the region.

“Events like this keep Canada on the minds of Japanese decision makers,” said Lapointe. “Increasing our market share in Japan is going to require that we work harder and more closely than ever before with our Japanese partners at all levels.”

Ontario and Niagara Falls submitted a very comprehensive proposal to lure the event, according to CTC representatives, who also noted the support of partners like the Niagara region, Sheraton on the Falls, Niagara Falls Tourism and the Niagara Parks Commission.

Ontario Tourism Marketing Partnership president and CEO Robin Garrett was thrilled to have Ontario host this year’s conference: "Japan is the #1 Asia‑Pacific market for Ontario. If you put that into perspective over all markets, it is second only to the UK. So it is a very, very important market for us.”

Themed Ahead of the Curve, this industry gathering was "an unparalleled opportunity to bring together leaders from both the Canadian and Japanese tourism industries," noted Lapointe. Since 1993, the event has strengthened tourism trade relations, sparked the innovation of new products, lowered trade barriers and provided an important forum for discussion and knowledge sharing.

British Airport Authority and WorldPoints team up with CTC

(Originally published in TOURISM)

The Canadian Tourism Commission (CTC) has entered into a partnership with the British Airport Authority (BAA) in a two stage campaign offering holiday prizes and retail vouchers to some 100,000 active members of the BAA WorldPoints premier retail loyalty scheme. The aim is to inspire members to visit Canada.

A competition to win a trip to Quebec with Frontier Holidays, Fairmont Hotels and BAA Heathrow is currently featured in the BAA e‑newsletter “eEmporium”. This holiday prize is also featured on www.baa.com/worldpoints, which typically receives 120,000 hits per month.

“This is a fantastic opportunity to promote Canada as a holiday destination and capture the data of members of the BAA World points scheme,” states Sarita Atkins, promotions and incentives manager at the CTC's UK office. “These typically cash‑rich, time‑poor, affluent executives fly seven times a year from BAA airports. This promotion gives us a chance to reach them and inspire them to visit Canada.”

In the autumn the campaign enters its second phase with a booking offer to Canada with Frontier Holidays. If BAA WorldPoints members book a holiday or opt into the holiday prize competition, they will receive a voucher applicable to any of the retailers at London Heathrow Airport. This offer is all the more attractive when one considers that BAA WorldPoints members spend 75% more on airport shopping and services than non‑members, collectively spending around $45 million a year. Their average spend per visit is over $125, with an average transaction value of $95.

Accommodation industry profits to reach new heights – Conference Board

(Originally published in TOURISM)

Strong travel spending by Canadians and healthy price increases will enable Canada’s hoteliers to post their second consecutive year of record profits in 2007, according to the Conference Board of Canada’s Industrial Outlook: Canada’s Accommodation Industry – Summer 2007.

“After three years of improvement, accommodation profits are expected to rise slightly to $982 million in 2007,” said Michael Burt, senior economist. “However, with labour shortages and the resulting increases in wage costs limiting profits, the industry can expect weaker profits next year."

The study suggests an ongoing decline in foreign spending on accommodation is also limiting the profit outlook. "Although visitors from countries other than US rose in 2006, the declining number of US visitors caused real foreign spending on accommodations to fall. This trend is expected to continue,” the Board’s outlook notes, “due to the surging Canadian dollar and the ongoing implementation of the Western Hemisphere Travel Initiative (WHTI).”

However in the longer term, it is predicted that strong growth in domestic travel spending will continue to support the industry. "Once the WHTI is fully implemented, foreign spending will also start to recover,” the report adds, noting also that the Vancouver Olympics in 2010 are expected to provide a boost to the industry’s performance.”

A new generation of Japanese travellers go it alone

(Originally published in TOURISM)

Younger Japanese consumers are embracing the freedom and experiences that come with independent travel, according to a new Canadian Tourism Commission (CTC) study looking at how to restore Canada's performance in the Japanese Travel Market.

Japanese travel interests are broadening, which provides Canada with new selling opportunities. Unfortunately, Canada's share of these travellers is falling, despite the fact the Japanese are travelling outside their country in record numbers. "There's a whole new generation of Japanese travellers out there who want to get in on the action," says Neil McInnis, executive director of research for the CTC. "Instead of just seeing the sights from behind the window glass of a tour bus, they want to experience the Canadian outdoors and lifestyles for themselves."

The new consumer and trade research also maps out the critical factors that have to be addressed in order to spark growth in this market. Based heavily on research and feedback from the overseas travel trade, the CTC is currently drawing plans to put Canada back on Japan's radar. The CTC will maintain its strong group tour focus but will be adding a new younger market segment called "local flavour seekers" who want to experience first‑hand the way local people live.

"The CTC is cutting a new path in Japan that's going to expose these consumers to a whole new range of products, and provide tour wholesalers with increased service and more powerful selling tools," says Andrew Clark, vice‑president of sales for the CTC, who is overseeing the rejuvenation of the Japan market.

Small‑ to medium‑sized tourism businesses will find the study extremely useful in understanding the new generation of Japanese travellers and the experiences that are in demand regardless of how old they are.

The new study is available at www.canada.travel/research.