China overtakes the UK as the number one source of international visitors to the USA

China

This will be the headline within 5 years from now, according to the Department of Commerce/National Travel and Tourism Office.
The forecast predicts 4.9 million Chinese visitors versus 4.4 million Brits. China generated 1.8 million arrivals in 2013, setting a new record for arrivals to the United States for the seventh consecutive year. China now ranks 7th in visitors to the United States. Spending by Chinese visitors to and within the United States was a record $21 billion in 2013, second only to Canada.
5 years is not a long time in global marketing. Are we ready? What lessons can we learn from the past?
Many years ago before the modern world existed (1992 pre-internet) I was Chairman of the International Marketing Committee with the American Hotel and Lodging Association.
Inbound tourism to the USA was in its infancy in general marketing terms. Many larger travel, tourism and hospitality companies had established international sales strategies that were simple in nature due to the (then) lack of electronic sophistication.
The US industry was familiar with marketing to the European countries and were embarking on South American initiatives. South America was regarded as an emerging market.
Making many headlines back in the early 1990’s was the super resilient Japanese market. They were known as high spenders and everybody wanted a piece of the Yen action. Back in 1990 3.2 million Japanese visited the USA. They spent on average $2,312 per person. Compare that to the $330 per person coming from Canada, but there were 17.3 million Canadians and were much easier to reach from a marketing perspective. Japan became the “Market du Jour” and we went all out to sell the USA to the Japanese.
The big “ah-ha” moment was quickly learnt, how do we not just attract but more importantly, how do we serve international travelers. Being smart and savvy marketers we began to gain insight into the Japanese traveler.
Food, as an example, was very American. Asian items simply didn’t exist in mainstream hotel menus. We weren’t too good in understanding other cultures, traditions and matters of protocol.
We can’t attract international visitors and forget that we have to serve them. This was the key driver behind my small team writing and publishing a book on International Marketing, called “The Hospitality Guide to Attracting and Serving International Travelers”. This was published by the American Hotel and Lodging Association.
It became so popular that we teamed up with the Department of Commerce, US Travel Association and many DMO’s and developed a road show providing a practical approach to the topic.
Fast forward.
Today, China is the country getting all the attention. Our government has just announced the extension of the validity of tourist and business visas to ten years, Brand USA have compelling sales and marketing programs in place, many states have launched aggressive marketing plans with China as a stated top priority, NTA have a dedicated China program, many mega hotel brands have sales programs and regional Chinese offices in place – some for many years.
A few weeks ago, CITM (China International Travel Mart) took place in Shanghai with the largest contingent of American suppliers. The participants ranged from large to small suppliers, each wanting to grab a share of the rapidly expanding Chinese outbound market.
Many participants will not get Chinese visitors. That may sound harsh but it will be a matter of fact. If you build it they may not necessarily come. Do you have something that will appeal to a Chinese traveler? What will it take to woo these Chinese travelers? Are you prepared to make the long term investment required and have you built your ROI model?
China expert Chris Spring, president of New York based Spring O’Brien, represents the China National Tourist Office here in the USA. He suggests that a good first step is to develop relationships with the established Chinese inbound operators here in the USA. Chris noted “If you have the right product in the right place you will get immediate business. By developing product with the inbound operators you will learn the nuances of the Chinese traveler first hand. It will be an invaluable learning tool and a lot less expensive than a sales or marketing program in China.”
China has four times the population of the USA. How much do you invest in the easier to reach domestic market? Is your investment in China going to resonate?

Before you follow in the footsteps of Marco Polo and begin your Chinese adventure I would strongly suggest a deep understanding of what the road ahead looks like. In the words of a Chinese proverb “Dig the well before you are thirsty”. Be prepared. Here is a basic check list that may help you before you start seeing Chinese travelers at your front door.

  • Are there any Chinese travelers already visiting my area?
  • Do I have Chinese translations of any informational material?
  • I have Chinese translations of any informational material?
  • Do I have a Chinese speaker on staff or in my community?
  • Are Chinese language menus available?
  • Are menu items Chinese friendly?
    •   Rice option
    •   Asian veggies
    •   Chili sauce (Chinese not Heinz)
    •   Soy sauce
    •   Tea
  • Appropriate dining utensils
  • Is there a smoking area
  • Are there globally understood symbols in place
  • Where can currency be exchanged
  • Is there a local doctor who speaks Chinese
  • Free WiFi connectivity

A pragmatic self assessment will help you define your real potential. Do you have a marketing plan? Does your location have appeal to the Chinese market? Are you accessible? Does your DMO have a plan in place that you can co-op with? Do you understand your defined target market? As with any market Chinese travelers do not all share the same demographic. Are you up to date with current affairs that may impact your plans? Can results be measured?
China will, without doubt, have a dramatic impact on inbound tourism. There are many who have been marketing to China for numerous years. It would be prudent to listen to those who have made this marketing journey before. Let’s learn from lessons of the past. I will end appropriately with another Chinese proverb…”Only he that has traveled the road knows where the holes are deep”.

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Leveraging Today’s Travel Technology Tools to your Advantage

Touchpoint

Accor just announced they aim to regain power from the OTAs. They will spend $284 million between now and 2018 in digital initiatives that will reverse the 60/40 current OTA imbalance to a more reasonable 40/60 ratio and trend away from OTAs by focusing on “being outstanding players at every stage of the customer journey.” This, on the heels of Expedia Inc. third quarter results (10/30/14) of 50% year over year income growth of $257.1 M.

I applaud Accor’s action to win back the hearts and minds (and wallets) of their customer and I offer smaller organizations a digital strategy for a lot less than $284 million.

How do you become outstanding players at every stage of the customer journey? We start that journey with the first step; gaining actionable insight from relevant available data. Let’s also acknowledge that every single customer touch point is an opportunity to engage.

Relevant insight provided by available technology will allow you to engage more personally, more frequently and importantly – ahead of the competition and is a key step in regaining control from the OTAs.

Success today, in its simplest form, is all about successfully connecting with your audience. The key pillars of success have been built by delivering the right content at the right time in the right place for the right price to the right audience.

This concept has not changed but most certainly evolved as technology has allowed us to gain advanced actionable insights into the demographic, psychographic and other behavioral characteristics of the consumer. This allows a high degree of personalization and relevance. .

The travel consumer of today differs dramatically from the travel consumer of the past. Yesterday’s planning process was linear. There were less research options available. Today’s consumer is more non-linear in approach, almost a mind mapping process, with one thought leading to another, and then another.

Search engines are the reason for this non-linear travel planning approach. Review sites, OTA’s, DMO sites – a plethora of options. There are so many sites visited in the planning process and can be as many as thirty, according to Expedia. “Yesterday” we would visit our travel agent and ask planning questions for a visit to Paris. Today, typing in Paris in Google gets over 180 million results in about one half second. No lack of information! So, how do we as hoteliers, destinations, cruise lines, attractions and tour operators beat the OTA multi-million digital marketing spend, win the customer and yield award winning ROI, increase revenue and intent to purchase?

  1. Increase and Enhance Lead Generation Success

Understand who your customer is. Better still, analyze your high valued customers. It’s this group you want to truly gain valuable decision making insights. Define their DNA. DNA may vary by strategy. Are you looking for a high spending “One and Done” traveler, or a traveler that is more predisposed to frequent visits? Perhaps you may want to identify travelers who have visited more recently, that have more top of mind awareness. Whoever your ideal customer is, understand their DNA. This DNA is what you will use to clone your high valued customers. This will be essential as you embark on getting higher converting guests, visitors, passengers and customers. Once you have your “cloned” group identified your objective is to figure out where this identified group shop. There are service providers who do a great job in this type of marketing and this effort is much more sophisticated that list rentals.

  1. Let Technology Outsmart your Competition

I have always been intrigued by successful non-travel technology and adopting and adapting it for travel, tourism and hospitality. One such technology was developed in California by higher math PHDs and published Neural Scientists and mimics the way the human mind reasons content. This technology’s strongest value is the early intersection of travel planning before destination decisions are made. The kicker here is that your rich media banner ads will be dynamically displayed on over one million potential websites ONLY when the content and consumer is considered a match by the technology. You can also integrate RTB (Real Time Bidding) strategies. This higher degree of relevancy will lead to higher conversions. This is customer triggered and also incorporates “offsite” retargeting. Key data is provided enabling you to make strategy shifts “on the fly”. There are a number of service providers that can access many more websites than available through Google’s or OTA channels. For smaller organizations this lets you to punch above your weight. For larger organizations you can outperform OTA’s.

  1. Get a Better Meta Platform

Until now, metasearch engines only allowed the consumer to book through an Online Travel Agency (OTA). Enter disruptive technology. Today, metasearch has met metadirect, allowing consumers to book directly with destinations, hotels, cruise lines, attractions, tour operators etc. You are getting closer to your customer and increasing your chances of enhanced personalized engagement. Embedding a meta direct booking tool within your dynamic display ad will not only increase intent to purchase but provide increased profitability by sending the customer directly to your site.

Tapping in to these newer technologies will not only give you an edge on your competition but also against OTAs. You will not only be developing your own web of relevance, but you will be able to test, measure and refine. You can now tag along with the travel consumer on their journey as they undergo travel metamorphosis from ideation → researcher → planner → shopper → purchaser. . Your own messaging can also change based upon the point of the travel planning cycle.

Ultimately there is a question of price. Price is relative. Accor have announced their budget of $284 million. What are the projected costs in the strategies I have outlined above? These services can be developed individually or bundled. In my experience, a refined lead generation program can start as low as $10,000. Effective integration of all three strategies discussed in this article can cost about $60,000. Many decimal points to the left of the Accor budget. This can deliver a stunning ROI.

Depending on the size of your business, this represents a compelling investment for customer acquisition and creates a positive environment to level the playing field with OTAs’

In our efforts to captivate the traveling public, it isn’t only the Big Boys that have all the “toys” to deliver the right content at the right time in the right place for the right price to the right audience. Today, we are blessed with incredible resources and leading edge technology that will transform insight into action, leading to increased relevance, engagement and conversion.

The Art of Content Strategy

Content Strategy 2

For years we have known that Content is King. More recently (our current Social (R)evolution), we have engaged Content in a different place. Namely, at the intersection of Search and Social.

Sometimes we shy away from content because we don’t understand its hierarchy in our attempts to captivate and intrigue the customer. Traditionally, content is for publishers. However, by having a website automatically makes us a publisher. We need to think as a publisher and act as a publisher. Our audience thrives on content. Relevant content, refreshed on a regular basis is a necessity. No news is actually bad news.

Content has re-emerged as the marketing go-to superstar in the social world we live in. Yet so many companies do not have a Content Strategy. First we have to agree on what a Content Strategy is all about. To me, it is simply stated as “getting the right stuff, to the right folks, at the right time, in the right channel, on the right device”. Easier said than done. The customer is at the epicenter of the universe attacked by a non-stop barrage of whirling junk debris and we as customers have become smarter and do a decent job of avoiding this clutter.

How do we avoid being part of the clutter? Embracing the “getting the right stuff, to the right folks, at the right time, in the right channel, on the right device”  definition, where do we start ?

We start with customer insights. Understanding needs and wants and delivering a ‘sensing and serving’ approach to the customer. As seamless as possible. Data driven. Relevant, timely and personal. A good Content Strategy will extend the Life Time Value of your customers.

Successful Content Marketing is developed by organizing your customers into clusters or persona’s. This allows us to message appropriately. It keeps our eye on the ball and we can build Objective Profiles that relate to your defined customer group(s).

As we gain insight from this defined group we determine the triggers that will drive them to (as an example) your website. The goal here is to get your product or service, your destination or hotel, on to the radar screen and in to the consideration zone. But first we need to intrigue them with relevant content to fuel their planning and ideation process.

We should learn the timing of this from insights gained from the characteristics and behavior patterns of the defined group. Maybe even overlaid with transactional data.

Next develop your Communication Calendar. The Communication Calendar should again be driven by data insights. Preferably triggered by the customer as opposed to “Spray and Pray”. If you have specific events, make sure that you have created the persona group that will improve response rates and conversion. Remember the mantra “getting the right stuff, to the right folks, at the right time, in the right channel, on the right device”.

You are now ready to share your content. Make sure your content is the right content for the defined group. Is there anything missing? Do you need to grab additional content. Does the content fit the group. As an example, mountain biking content at a resort might not fit a customer group composed of Boomers. (Although a number of Boomers do enjoy mountain biking).

Today’s Über-Connected consumer can reach you from a multitude of channels and devices. Your content strategy should identify the various customer touch points. This requires some creativity in repackaging your content in to something that looks new and fresh. As an example; a series of top notch consumer generated themed photos collected over the last few months repackaged to tell a themed story. All content shared should be classy, polished and compelling. And remember that the first point of contact is likely to be mobile. Make sure you content renders well in this environment.

As you define your Content Strategy ensure your framework has good metrics. If you can’t measure it seriously consider it being part of your plan. What can’t be measured normally doesn’t get funded.

Another major reason for a Content Strategy (as if we needed another reason) is the continually changing algorithmic playing field from Google as they continue to tinker with their search bots. We have witnessed Google give content a higher priority over keywords. Cramming keywords in to posts and messaging doesn’t cut it anymore. We should be more concerned about the topic searched and make sure it is found in an authoritative and naturally flowing content. This landscape will be in continual flux as Google’s encrypted organic search keyword algorithms change in future updates.

Bottom line is that consumers love content, fresh compelling content…and so do Google bots.

So, let’s head in the right direction at the intersection of Search, Social and Content or you could be headed down Lonely Street and checking in to Heartbreak Hotel.

heartbreak-hotel

You Have the Power. Use it Wisely.

As we approach summer, there are many that feel the need to create a summer campaign because that’s what’s expected and what we have been doing since summer vacations were invented.

I suggest we turn the concept of a summer* campaign on its head.   (* spring, fall, winter)

It’s not necessarily a radical approach when you really think about it.

As sophisticated hoteliers, we have data everywhere. As an example, we know:

  • The guest name
  • Where they live
  • When they book
  • How long they stay
  • How much they spend
  • Visits to spa, golf, dining and other activities
  • How often they visit
  • The channel they book
  • Their credit card of choice
  • Etc.

So, at the very least, you have what I would call the basics. And it’s a great place to start.

Multiply this data by all the guests that have stayed with you over the past few years. Hopefully, your records go back several years. This is your active database. You collect guest data from all key touch points. If you are lucky they have opted in to receive information on your property.You are sitting atop a gold mine.

Let’s create a scenario.  Mr. and Mrs. Seymour Profit visit your property 2 times every winter because they enjoy cross country skiing. They are in your database. They live a 3 hour drive away. Fast forward. Your Summer Family Special is emailed to your entire database because it’s your Summer Family Special. It has a great rate and kids eat free. You blast your past guests with this Summer Family Special.

You may give your Summer Family Special a fancy marketing name but it’s what we call Spray and Pray. There is no defined strategy and clearly no targeted focus behind this promotion, other than summer is coming. There is no benefit to Mr.  & Mrs. Seymour Profit, who have no kids and only visit in winter. You may perceive it as a great offer but meaningless without relevance and good timing. In fact, you have probably upset Mr.  & Mrs. Seymour Profit because they feel you really don’t know them and they now have you in their Junk Mail folder. Goodbye Seymour Profit.

This illustrates a one way communication path reminiscent of the 1980’s.  More importantly you have valuable data, but not gaining insight from it. Correct analysis of basic data provides wisdom to create relevant, well targeted promotions that will provide a higher ROI. Highly personalized, relevant and timely. You have rich data that assists in extending the customer life cycle. It enhances engagement. You can begin or expand the conversation with your guests on their needs. This is not new.  I remember successfully working on these types of models several years ago with hospitality and DMO clients. Baby steps, leading to more sophisticated modeling.

What you have is powerful. More powerful than the dollars OTA’s spend on search. You own the customer relationship built on all the data that an OTA does not have. You know the guests likes and dislikes.

Einstein said “We should take care not to make the intellect our god: it has, of course, powerful muscles, but no personality.”

OTA’s may have intellectual transactional  data but you have powerful insights into the behaviors and characteristics of your guests. You have the ability to learn more about your guest than any OTA.

You have the power, use it wisely.  And Seymour Profit will become a very good friend and frequent visitor.

7 Tips for Travel Agents to Attract, Engage and Retain Customers

So, here I am…..I am a travel agent/tour operator/DMO…..what the heck is going on? I see the world changing around me. I see consumers finding new channels to go direct. I see many competitors getting more sophisticated and I see myself being disintermediated. What do I need to do to stay in the game?

Life used to be less complicated. Business used to be less complicated. There were less information and distribution channels. I knew my customer.

We have witnessed the transfer of power to the consumer. Actually, it was always there but the consumer didn’t know it.

We see the Boomers getting older and younger generations growing up in a digital connected world, becoming more sophisticated and “iTravel” savvy. We are again at a crossroads. Which way do we turn?  Well, let’s look at the facts.

Is disintermediation a reality or is it a fear based myth leading to a self-fulfilling prophecy.

Let’s look at reality and data. In a recent ASTA study (undertaken by my friend Steve Cohen – Insights guru at MMGY), they found that 59 percent of Millennials, 53 percent of Gen Xers, and 58 percent of boomer leisure travelers, who had used travel agents, stated that vacations planned through travel agents were better than those organized without their assistance. Importantly, those same travelers that use an agent actually travel more (4.7 trips on average) than average consumers.

There was better news for Travel Agents. The use of traditional travel agents appears to be growing. According to the survey, 13 percent of U.S. travelers used a traditional travel agent in the past year, which is up from 11 percent a few years ago. Knowledge coupled with convenience are key factors in using agents. Knowledge and convenience are strong building blocks for value creation.

I started my career as a travel agent, and later earning my CTC. I have been a tour operator as well. (I worked as a travel agent with Thos Cook, and ran the Walt Disney Travel Company at Disneyland).  I learned from both companies that “value” was a key driver in the success of any business. Not the lowest price but highest value. What is the value and how is it measured?

Value is a theme that will continue to resonate. Regardless of price, we all want value. The critical task in today’s environment is defining the word “value”. We, as travel producers, can’t tell a consumer what the value is. Consumers tell us what and where the value is. We just need to look, listen and respond. We need to gain insight on the consumer’s changing needs and ensure we are in a position to sense and serve. It reminds me of a great hockey player – playing the puck to where the player will be, not where he is.

It does not take a rocket scientist to figure out that information on travel and destinations abound. If you ‘Google’ Orlando Travel you will receive over 350 million results in under a half second. To a consumer it is overwhelming, confusing and perplexing.

So how does a Travel Agent leverage the perplexities and confusion :

  1. Become the Convenient Authority

One of the most important elements in any business is how one is perceived. Being recognized as the recognized authority will build business. Ask for recommendations. Share your success stories. You are more convenient that an OTA. You are not anonymous. You have a name and a face. You have been there. You have the answers to complicated questions. You are there if something goes wrong. You are the authority.

  1. Leverage the Experience

Insights gained from a very recent TripAdvisor research paper reported that today’s vacationer is looking for an experience when planning their vacation. This experience is driven by a desire to discover more about the culture of the destination. The experience factor ranks as high as the price factor. Experience divided by price equals value. We need to inspire travel, to intrigue clients, tease and conjure up an alluring destination based on your insight gained from your customers.

  1. Website/Facebook

The moment you publish a website you become, well, you become a publisher. This means your site must never get stale. It must be fresh, intriguing, teasing. The goal is to engage. Is there a clear call to action? Do you have Specials and Last Minute deals. Use your supplier relationships to get great fresh content. They are eager to help you. Your website is your store front. Think of it that way. Maintain your curb appeal.

  1. Knowledge Broker

You must become the font of all travel knowledge. Where to go, when to go, what to pack, how to pack, expected weather, what to see and do, …in fact your are the walking talking human being that doesn’t hide behind a computer screen. Flout your knowledge. Blog your knowledge. Get on your local radio with tips and tricks. Write an article for your local newspaper. Get blogging. Create a Bucket List. Strut your stuff.

  1. Trust

The reason social websites like Trip Advisor have grown leaps and bounds is that they have become part of our circle of trust. It is a community site driven by (mostly) consumers. You need to represent that sense of trust. How do you build trust? Belief in yourself is key, but remember you are communicating to others. You will need to display integrity, intent (how you work and interact with customers), skill sets, and reputation. All of this builds your credibility and ultimately trust.

  1. Specialize

Jack of all Trades – Master of None is figure of speech used in reference to a person who is competent with many skills, but is not necessarily outstanding in any particular one. Don’t just stay alive but thrive by owning a niche. Large Tour Operators have done a great job in creating smaller niche brands. I salute Tauck Tours (founded in 1925!) who have created niche partnerships with filmmaker Ken Burns, as an example, and created experience and cultural based tours with topics that include the Civil War, Jazz, National Parks but all with that special Tauck touch.  Tauck also launched a new river cruise boat in Switzerland but with a focus on a smaller number of passengers. Less is more.

Determine your area of expertise. Cruises – large ship, small ship and river cruise, skiing, Europe, faith based, sports, educational, theme parks, national parks, all inclusive, Caribbean, Mexico, family, rail journeys, safaris, eco tourism, foodie, houseboats, honeymoons, and the list continues. Learn your product better than anybody else. Lean on your Tour Operator partners as well. They have much to give, share and contribute.

  1. Definition of Insanity

The definition of insanity is a well known question and answer. The definition is (if you have been caste off on a desert island) continuing to do the same stuff but hoping for different results. It takes courage to make change. It is a risk taking exercise. It is not for the faint of heart.

My recommendation is to try something different on a small scale. Consider it a test. Your own Petri dish project. Make sure you have your measurement criteria in place. Learn fast. If it fails nix the project and try something new. Keep repeating until you find the successes you are looking for.

So, in closing; look up and down any Main Street USA, there are so many small businesses that do very well. Everyone of them has an online competitor. They succeed in providing a personal service not found online. They aren’t just alive but they thrive by simply leveraging what an online agency cannot provide.