It's In Your Heart travelthompsonokanagan.

com

Tips from the Trenches

TOTA Tourism Summit Embracing our Potential
Quaaout Lodge & Spa, Chase BC 26 March 2013 1:45 - 4:45 pm

Lesley Anderson, Canadian Tourism Commission & Nancy Arsenault, Tourism Cafe Canada

Did You Know?

25 years ago we were competing against 10
signicant destinations that had 80% of the market competition! Theres a lot more
Minister Pat Bell, Nov 2012

Today 200 destinations!

We have to differentiate. Experience represents one method that can generate new revenue and new value.

Tourism is growing ... but were not getting our share

Interna/onal&Tourist&Arrivals&Received& Index&Year&1990&=&100& Source:&&UNWTO,&2011;&Sta/s/cs&Canada,&2012&

350#
Index&Year&1990&=&100&

&

300# 250# 200# 150# 100# 50# 1990# World# Canada#

1995#

2000#

2005#

2010#

2015#

2020#

In 2000 we embarked on a journey

Inuenced by:

Knowing the traveller better The internet creating a new playing eld Increased competition The Experience Economy and emerging eld of
Customer Experience Management from Me to We

Learning, innovating, trying, adjusting, and shifting Collaborating to compete

Experiential Travel

Edible Canada,Vancouver BC

Barkerville, BC

Engages visitors in a series of authentic, memorable travel activities, revealed over time, that engage the senses, are inherently personal and makes connections on a physical, emotional, spiritual, intellectual or social level.
Source: Nancy Arsenault (2004)

Experiential product development and marketing focuses on emotion

Benets

Layer on a new value proposition, ROI + ROE Respond to growing market demand with value-based pricing Competitive advantage beyond services Lower investment cost, higher emotional returns Rewarding for sta , partners, guests Community development, involving nontraditional partners

TOTA Strategy

CTC Experiences Toolkit (Vol. 2), p. 11

1999

In the Beginning

2000

Canadian Tourism Commission Task Force

2002

2003

CTC Launches New Experiential Brand

2005
Atlantic Canada begins investing in Experiential Travel Training

Invests in EQ Research

2007

Australia released their Experiences Toolkit

2009

Canadian Tourism Commission Launches

2011 Nova Scotia Toolkit Released

TOTA Begins their Strategic Planning Process

2012

10-year Strategy rooted in experiential tourism & EQ research

2013

Case Studies Providing Insight

Emerging destinations are SERIOUSLY investing

Marketing focused on high yield customers

The competitive landscape is such that Canada cannot gain through mass tourism
220# 200# 180#
Overnight*Arrivals* Index*100*=*2000*

Compe&&ve(Landscape:(# CTC#Overseas#Markets## Trendy#Des;na;ons##

Canada# World# United#States# Selected# Emerging# Des;na;ons#*#

160# 140# 120# 100# 80# 60#

2000#

2002#

2004#

2006#

2008#

2010#

2012#

Source:##Tourism#Decision#Metrics# *#Emerging#des;na;ons#include#Brazil,#India,#China,#Turkey,#Southeast#Asia##

Converted in USD, it is still increasing

Real'spending'per'trip'by'visitors'to'Canada,'1997;2011'' (Constant'2002'US'dollars)'
1200#

Brand'' Premium'

Constant'2002'US'dollars'

1000# CTC#Overseas#Markets# 800# 600# 400# 200# 1997# 1998# 1999# 2000# 2001# 2002# 2003# 2004# 2005# 2006# 2007# 2008# 2009# 2010# 2011#
Source:##Sta=s=cs#Canada,#Interna=onal#Travel#Survey,#Na=onal#Tourism#Indicators;##Bank#of#Canada## #CTC#Overseas#Markets:#UK,#DE,#FR,#AU,#IN,#CN,#JP,#SK,#MX,#BR#

US#

Be in it for the long haul

... in a world where theres a customer revolution going on ... Building a Brand Takes Time So Does Product Development & Market Development

We All Have A Role To Play

Creating Memories
(Operators)
Market Development

Building Themes, Selling Dreams

(Enablers)

Infrastructure Activities Programs

Research Destination Development Inspire Visitation & Sales

Driving the Sale

(c) Nancy Arsenault & Lesley Anderson (2013)

Support & Build Capacity

Research Customer Proles Market Research Conversion Performance Measures Product & Market Development Training & Capacity Building Funding Stakeholder Relations Promotions & Advertising (Traditional, online & mobile) Media Relations Distribution Channels & Sales
(c) Nancy Arsenault & Lesley Anderson (2013)

Destination Development

Inspire Visitation & Sales

Responsible for the Visitor Experience

Infrastructure Hotel-Resort-B&B Attraction - Heritage Site Restaurant Retail Sports & Performing Venues Convention Centre Outdoor Adventure Wildlife Viewing Artisans/Musicians Visitor Information Centres Guides - Storytellers Tour Operators Festivals, Special Events Non-Traditional Providers
(c) Nancy Arsenault & Lesley Anderson (2013)

Activities

Programs

(c) Dr. Nancy Arsnault (2013)

Whats your core business?

Infrastructure Activities Programs Research Destination Development Inspire Visitation & Sales

Raising the Bar on Engagement, Personalization, Connections & Value

Making the Experiential Product Shift:

Greater Differentiation, Emotion, & Engagement

Partnerships+&+Connec0ng+ to+People,+Place+&+Culture

Emotional Engagement
Competitive Position

Programs

Physical Engagement
No to Low Differentiation, Emotion, & Engagement

Activities

ROI + ROE

Infrastructure
Cost Based Pricing

ROI
Pricing & Prots

Increased+Sales,+Brand+ Strength+&+Advocacy
Value-Based Pricing

(c) 2012 Lesley Anderson & Nancy Arsenault

Making the Shift to Experiential Marketing

Raising the Bar on Connection and Conversation
Greater Differentiation, Emotion, & Engagement

Increased+Sales,+Brand+ Strength+&+Advocacy

Emotional Engagement
Competitive Position

Personalization

Benets
Generate Awareness

Interactive

No to Low Differentiation, Emotion, & Engagement

Features
Cost Based Pricing

Present Info
Conversation

Value-Based Pricing

(c) 2013 Nancy Arsenault & Lesley Anderson

The Brand Premium

Raising the Bar on Loyalty

Greater Differentiation, Emotion, & Engagement

Increased+Sales,+Brand+ Strength+&+Advocacy

Emotional Engagement
Competitive Position

Fan/Advocate

Generate Awareness
No to Low Differentiation, Emotion, & Engagement

Recognition/ Appreciation

Loyalty

No awareness/ recognition
Cost Based Pricing

Consideration

Perception

Value-Based Pricing

(c) 2013 Nancy Arsenault & Lesley Anderson

Experience PEI
Greater Differentiation, Emotion, & Engagement

Partnerships+&+Connec0ng+ to+People,+Place+&+Culture

Emotional Engagement
Competitive Position

Programs

ROI + ROE Physical Engagement

Activities

No to Low Differentiation, Emotion, & Engagement

Infrastructure
Market Price

ROI
Pricing & Prots

Increased+Sales,+Brand+ Strength+&+Advocacy
Value Price

(c) 2012 Lesley Anderson & Nancy Arsenault

Oceanview Hotel, NL
Greater Differentiation, Emotion, & Engagement

Partnerships+&+Connec0ng+ to+People,+Place+&+Culture

Emotional Engagement

Programs

Competitive Position

Physical Engagement

Activities

ROI + ROE

No to Low Differentiation, Emotion, & Engagement

Infrastructure
Market Price Pricing & Prots

ROI

Increased+Sales,+Brand+ Strength+&+Advocacy
Value Price

(c) 2012 Lesley Anderson & Nancy Arsenault

Its about layers of opportunity

Photo: Womens Day Magazine

It's In Your Heart travelthompsonokanagan.com

Lets Apply This Through Your Themes

Identifying the Iconic Enriching local avours Revealing the story Expanding personal horizons Building authenticity

#1 ENRICHING LOCAL FLAVOURS

INNISKILLIN

Inniskillin, Niagara-on-the-Lake, ON
www.inniskillin.com Greater Differentiation, Emotion, & Engagement Low Volume High Yield

Extreme Icewine (Experience) Competitive Position Restaurant & Wine Tasting (Service/ Activity) Wine & Gift Store (Goods) No to Low Differentiation, Emotion, & Engagement Market Price Pricing & Prots Grapes (Commodities) Premium Price High Volume Low Yield

www.inniskillin.com

Credit: Inniskillin

Credit: Inniskillin

Commodity:
Market Price

Grapes: 88/kg -$2.20/kg or 40 to $1.00/lb Wine: $12 to $100

Goods:

Activities/Services: Inniskillin Classic Tour: $9/per person

A Sampling of Experiences
www.inniskillin.com

Extreme Canadian Wine Experience $27 pp

Great Canadian Kitchen Party: $80 pp

Market Price

Exclusive Cool Culinary Experience: $150 pp

Credit: Inniskillin

Inniskillin, Niagara-on-the-Lake, ON
www.inniskillin.com Greater Differentiation, Emotion, & Engagement

Competitive Position

t,' en alue m g e d 'V g a s 'a n n n 'E o n r'o nec4 a e'B on 'th n,'C g i s i n 4o Ra aliza n rso Pe

' I'& RO

E RO
Sales,'Brand'Strength' &'Advocacy

No to Low Differentiation, Emotion, & Engagement Market Price

RO

Premium Price Pricing & Prots

Edible Canada, Vancouver, BC

www.ediblecanada.com Greater Differentiation, Emotion, & Engagement Low Volume High Yield

Granville Island Chefs Market Tour (Experience) Competitive Position Restaurant Dining (Service) Culinary Artisan Store (Goods) No to Low Differentiation, Emotion, & Engagement Market Price Pricing & Prots Food ingredients (Commodities) Premium Price High Volume Low Yield

Commodity: Goods: Services: Off-site Culinary Adventures:

Vegetables: $1 to $3/kg Olive Oil: $12 to $100 Served Meals: $12 to $23.00+/per person Chefs Market Tour: $35/pp (2- 8 pax) Chefs China Town Tours: $40 - 60/pp (2-8 pax) Guest Chef Market Dinner: $100/pp (14 - 24 pax) Gourmet Kayaking Weekends: $750/pp (8 - 12 pax)

Edible Canada, Vancouver, BC

www.ediblecanada.com Greater Differentiation, Emotion, & Engagement

Competitive Position

' nt, lue e a m g e n d 'V a n g s 'a n 'E 4o n o ' r ec 'Ba onn e h C 't ,' i n g a 4o n s i Ra aliz n rso Pe

' I'& RO

E RO

No to Low Differentiation, Emotion, & Engagement Market Price

I RO

Sales,'Brand'Strength' &'Advocacy
Premium Price Pricing & Prots

WATERMARK BEACH RESORT

OSOYOOS, BRITISH COLUMBIA

http://www.watermarkbeachresort.com/

http://www.covertfarms.ca/

Catalyst for Change

Covert Farm Experience Partner

Watermark Beach Resort

Covert Farms & 30 Experience Partners

Greater Differentiation, Emotion, & Engagement

Low Volume High Yield

Competitive Position

Spa, Events, Conferences, Dining (Activities/Services) Gift Store (Goods)

No to Low Differentiation, Emotion, & Engagement Market Price

Land & Buildings (Commodities) Premium Price Pricing & Prots

High Volume Low Yield

(c) Nancy Arsenault (2013)

We are now working with 30 experience partners; companies that have a mutual respect for the customer and the caliber of the experiences they are seeking ...
www.watermarkbeachresort.com

... It used to be that tourism entities viewed their neighbours as competitors. Now we have a chance to deepen our understanding of the traveller together, and help Canada compete for visitors.
Ingrid Jarrett,Vice-President Business Development Osoyoos, British Columbia

#2 IDENTIFYING THE ICONIC

CN TOWER EDGE WALK!

Unique Sky High Adrenaline Rush

http://www.edgewalkcntower.ca/

CN Tower, ON
Greater Differentiation, Emotion, & Engagement

Edge Walk (Signature Experience)

Low Volume High Yield

Competitive Position

Viewing, Restaurant Dining (Service)

Retail Store, Ticket Sales (Goods) No to Low Differentiation, Emotion, & Engagement
High Volume Low Yield

Location & Building (Commodities) Market Price Pricing & Prots

(c) 2012 Lesley Anderson & Nancy Arsenault

Premium Price

#3 REVEALING THE STORY

THE HERMETIC CODE

Heartland Tours & Travel

Greater Differentiation, Emotion, & Engagement

The Hermetic Code (Signature Experience)

Low Volume High Yield

Competitive Position (Goods)

(Service)

EXCEPT THIS EXPERIENCE HAD A BOOK, PUBLISHED BY THE LOCAL NEWSPAPER

High Volume Low Yield

No to Low Differentiation, Emotion, & Engagement Market Price

Legislative Building (Commodities) Premium Price Pricing & Prots

(c) 2012 Lesley Anderson & Nancy Arsenault

#4 Expanding Personal Horizons

Overnight Teepee Adventure Experience the History, Enjoy the Culture Teas of Manitoulin Legends of the Land Riding Trails Mother Earth Hiking Trail

Eagle Cloud Crafts Storytelling Voice of the Drum Medicine Walks and more

Experience the Past, Enjoy the Present (Experience)

Greater Differentiation, Emotion, & Engagement

Low Volume High Yield

Training & Education (Service) Competitive Position Retail (Goods)

No to Low Differentiation, Emotion, & Engagement Market Price

Water, land (Commodities)

May 2013 A New Hotel

High Volume Low Yield

Premium Price Pricing & Prots

#5 Building Authenticity

Your journey! starts here.!

Experience Routes aligned to CTC EQ Cultural Explorer

But it all these great experiences dont mean anything if you forget one core element ____________________

Direct to Consumer
FIT
Travellers

How are you selling your Experiences?

Indirect to Consumer
PIT Travel Trade Other

Group

Canadian Signature Experiences Collection Member Benets Generated

Increased bookings

67%

Generated growth in CTC source markets

48%

Advocacy score

83%

Received international media coverage

51%

Captured in assets

91%

Free Resources

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Thanks!

nancy@tourismcafe.org 250.391.6077 www.tourismcafe.org

anderson.lesley@ctc-cct.ca 604.638.8401 www.corporate.canada.travel/