Product, Marketing Strategies To Shift in 2010 According to First Half 2009 Adventure Travel Tour Operator Study
October 15, 2009
Results of an August-September 2009 Adventure Travel Trade Association (ATTA) first-half of 2009 survey, which reveals the perspectives of 287 tour operators spanning 51 countries, reflects changes in traveler interests and behaviors which are influencing tour operators’ product and marketing approaches planned in 2010.
Participating tour operators, which together serve roughly two million customers annually, in responding to a series of questions concerning actual and perceptual changes in consumer behaviors experienced between January and June 2009, reported that travelers are showing increased interest in the following:
- Custom itineraries: 84% (i.e., 84% of operators reported an increased interest)
- Shorter duration trips: 73%
- Closer-to-home, shorter haul trips: 55%
- Activity based adventures: 79%
- Cultural-interaction adventures: 70%
- Volunteering within travel: 40%
- Multigenerational travel: 55%
According to the ATTA study, customers of surveyed tour operators also showed changing interest in destinations and booking behavior in the first half of 2009. Regions of the world tour operators indicated travelers expressed the highest positive change in interest compared to 2008 included South America (26%), North America (24%), Southern Africa (24%), Western Europe (23%), Middle East (20%) and South Asia (20%).
Meanwhile, operators also reported that travelers are booking trips closer to the actual time of departure. Thirty-five percent of tour operators believe that travelers’ shorter booking windows are here to stay or that the period will be even shorter than it is now. And, one third of operators believe that the booking window in the future will be completely unpredictable.
In line with traveler shifts, approximately half of the tour operators intend to offer more variety of inventory in 2010, with very few reporting a reduction in product offerings. The ATTA interprets, based on formal survey responses and feedback gathered through informal phone surveys throughout 2009, that operators may be increasing product variety to keep up with travelers’ changing preferences, including increasing demand for custom trip, shorter-duration and varied price-point options, as well as to further distinguish for travelers specialized product that helps to further distinguish providers in a highly competitive environment.
“There also appears to be continued strong support among customers for high quality, value-oriented companies, especially those with a clear sustainability message”, said ATTA Vice President Chris Doyle. “Survey results continue to tell us that operators are quickly adjusting marketing and public relations efforts to better address the way in which travelers are becoming aware of and learning about adventure travel options, how they choose destinations and activities of interest, and when they book their holidays.”
Commensurate with the ATTA’s mid-year findings concerning shifting consumer interests, operators indicated that their marketing budgets and strategies also have shifted for 2010.
As in 2007 and 2008 ATTA tour operator surveys, shifts toward more online marketing continue in 2009, with activities such as search engine optimization (SEO) and keyword buying outflanking more traditional means of advertising. Of the 287 tour operators surveyed, 66 percent indicated that 2010 budgets are increasing for online advertising and 72 percent for SEO, while 77 percent plan to dedicate resources specifically for online social networks. Facebook, Twitter and Linked In were the top sites indicated for these endeavors. Additionally, while the social networking phenomenon aspect of the Internet continues to climb, tour operators also are increasingly returning to more traditional customer (‘social’) relationship practices, with both serious increases in both public relations (55%) and physical world consumer/client events and activities (72%).
In the study, traditional advertising budgets continued to decline. Forty-seven percent of operators reported they plan to decrease or eliminate print advertising all together in 2010. Sixty percent of respondents reported they plan to reduce the number of shipped catalogs, while 65 percent plan to more narrowly target their direct mail efforts. Forty-six percent of respondents reported eliminating print catalogs altogether in 2010, reflecting travelers’ move toward digital means of securing information about adventure travel options.
Tour operator booking and profit performance reports for the first half of 2009 were mixed. Despite the economic situation, 33 percent reported bookings in the first half of 2009 were up, eight percent reported flat bookings compared to prior year, and 56 percent reported bookings were down, of which most were reporting bookings down between 10-30 percent compared to the first six months of 2008. Thirty-five percent recorded profits in the first half, 13 percent were flat, and 51 percent recorded losses in the first half of 2009 compared to 2008. Survey responses for the survey reflect actual performance in the first six months of 2009.
“Overall, the adventure travel industry, while impacted by the economy, had solid pockets of resilience and most companies were able to flex enough to survive and in a few cases, thrive, especially in very recent months,” said ATTA President Shannon Stowell. “Many companies did take fairly aggressive measures including layoffs, delay of capital expenditures, salary freezes and, ironically, travel budget reduction.” Not reported in this survey are anecdotal reports from phone surveys conducted between July and October 2009 of ATTA members and non-members indicating that bookings appear to be on the rise in the second half of 2009, so the thought of potential recovery is forefront.
Established in 1990, the Seattle-based ATTA (www.adventuretravel.biz) is a global membership organization dedicated to unifying, networking, professionalizing, promoting and responsibly growing the adventure travel market. ATTA members include tour operators, destination marketing organizations, tourism boards, specialty travel agents, guides, accommodations, media and service providers. Host of the annual Adventure Travel World Summit executive trade conferences (www.adventuretravelworldsummit.com), the ATTA also makes possible www.Adventure.Travel, the traveler’s hub of physical, cultural and nature-based adventure travel and guide to trusted tour operators from around the globe.
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Editor’s Note: The full study will be made available free to ATTA Members by October 16, 2009. It will be available to non members for $50USD via online download beginning the week of October 26th.
In This Economy, Industry Vets Concur: “Don’t worry about the wind; adjust the sails.”
February 19, 2009
There are no two ways around it: It’s time to, “Adjust the Sails”. So says adventure travel professionals possessing decades of experience who have weathered the worst tempests to date who’ve recently borrowed from that now infamous Ted Turner quote.
It’s been said that the two most important drivers of adventure travel business is the geopolitical scenario and the economy. And, one of the drivers is suffering.
Before a combined total of more than 125 adventure travel industry peers, eight adventure travel industry veterans speaking on two “Weathering the Economic Storm” panels during recent ATTA Regional Meetings in San Francisco (Dec. 5, 2008), Seattle (January 28, 2009) and in Los Angeles (February 13, 2009) agree that this economic downturn is the most challenging the adventure travel industry has experienced. They also agreed in principle that the recession is expected to be prolonged, representing more of a “U” than a “V” shape. Another suggested that a “W” is a more likely scenario, whereby it’ll be an up-and-down ride for the foreseeable future.
In light of our industry’s shared concerns, top-level executives representing Backroads, REI Adventures, Geographic Expeditions, Wilderness Travel, Wildland Adventures, EverGreen Escapes, Travcoa and Classic Journeys stepped forward to share their current experiences, steps they’ve taken to brace for a sustained recession and their prognostications for the next year or two of business.
It’s not all bad news they say. Some companies are still reporting double-digit growth, fueled in part by travelers seeking custom trips and increases in domestic and closer-to-home travel. One company shared, “We’d already done 25% of our 2009 bookings by end of summer 2008, but we anticipate that by this next fall, that situation will be eroded.” The reality is that most companies are feeling the pinch in some fashion.
Most companies would agreed that it’s high time to revisit the fundamentals, ensure sustainability and prepare to come out ahead of the competition. Each of the companies contributing to this industry dialogue were confident of their survival, but noted it would come with serious focus on the bottom line, a serious reassessment of everything, smart cash management, and extra investment in marketing and strategic planning.
In fact, one pragmatic vet encouraged the industry to view this economic downturn as a gift of sorts suggesting that other leaders consider viewing this period as a time to adjust on some key areas that will positively affect the bottom line for years to come. Others from within the aforementioned stable of brands, also dug in and shared tips for ensuring their companies would come out stable, stronger and more smartly positioned once the rebound eventually arrives.
Immediately, experts suggest, consider the following exercises, some strategic, some tactical, to fortify your organization:
To access the remainder of this article featuring dozens of specific prescriptions to weather the economic storm:
ATTA Members – visit your ATTA Members Only Website (If necessary, email info@adventuretravel.biz for your login information)
Not an ATTA Member? Click here to consider joining and playing an active role in the global adventure travel community:
2008 Adventure Industry Research Report Analyzes, Reveals Global Trends
November 21, 2008
(SANTA FE, NM) – November 20, 2008 – Xola Consulting, Inc., in collaboration with the Adventure Travel Trade Association (ATTA), today released its 2008 Adventure Industry Research Roundup, the only comprehensive tourism industry research report dedicated specifically to adventure travel.
‘Adventure travel’ is generally defined by industry leaders today to include a mix of adrenaline sports such as whitewater rafting, softer nature experiences such as birdwatching, and cultural engagement and learning.
Featuring trend information and in-depth analyses about the countries, consumers and industry players engaged in adventure travel, the report covers a wide range of subjects from operations to marketing. It also provides statistical data to support business planning and decision-making for adventure companies, policy makers, destination marketers, and media.
For adventure tour operators, global and regional trends in activities, destinations, services and consumer behavior are discussed in detail. For example, significant growth is reflected in:
- Tours that offer biking, diving, sailing, surfing, expedition cruising;
- Service offerings including more specific focus on individual consumer interests;
- Unexpected luxury in remote, exotic locations;
- Emphasis on personal growth; and
- “Front-country” recreation — areas relatively close to home where busy people can enjoy outdoor activities after work.
In addition to sections on Global, Regional and Traveler trends, the 2008 report also provides analyses on Supply Chain Trends, Destination Rankings, Travel Media, and Top U.S. Adventure Company News. It examines the industry in light of recent global financial market upheavals and discusses emerging trends in destination development and monitoring.
“The Adventure Industry Research Report presents a comprehensive overview and understanding of today’s dynamic adventure travel industry,” said Bryan Kinkade, Director, Travel and Tourism, National Geographic Adventure magazine. “Drawing from a great mix of proprietary research and industry data and analysis, this valuable resource taps into the pulse of adventure travel and offers information we frequently use.”
In November 2008, the following six supplementary sections to the 2008 report will also be available, providing additional in-depth examination of emerging issues relevant to the adventure travel industry:
- Tourism, Climate Change and Sustainability
- An Integrated Approach to Sustainable Tourism, Mining and Agriculture
- Chinese Tourism Market Trends
- U.S. Tourism Market Trends
- The Global Economy and the Tourism Industry
- Recent Trends in Tourism Financial Flows
A free copy of the executive summary is available at www.xolaconsulting.com/industry-research.php. Adventure Travel Trade Association members may purchase the full report at a discount from the Adventure Travel Trade Association website at www.adventuretravel.biz or by calling 1-866-411-3131.
For more information about the 2008 Adventure Industry Research Roundup or other Xola research, contact Christina Heyniger at Christina@xolaconsulting.com.
About Xola Consulting
Xola Consulting, Inc. (www.xolaconsulting.com) is a consulting and research services firm assisting tour operators, tourism boards and non-profit organizations with sustainable adventure tourism destination and product development, marketing and research. Xola also supports Off the Radar (www.travelofftheradar.com) a newsletter and website providing travelers with information about the best entrepreneurial adventure operators around the world – those who provide guests with a genuine, personal experience; who believe in sustainable, environmentally sensitive travel; and who believe in incorporating the local people and traditions of the places where they operate.
About the Adventure Travel Trade Association
Established in 1990, the Seattle-based ATTA (www.adventuretravel.biz) is a global membership organization dedicated to unifying, professionalizing, promoting and responsibly growing the adventure travel market worldwide. ATTA Members include tour operators, destination marketing organizations, tourism boards, travel agents/agencies, guides, lodges/resorts/attractions, media, and service providers. Host of the ATWS, the ATTA provides professional support, development, education, research, marketing, career building, networking and cost saving resources to its members.
Media Contacts:
Xola: Christina Heyniger at Christina@xolaconsulting.com
ATTA: Mr. Shannon Stowell, 360.805.3131 shannon@adventure.travel
39% of tour operators surveyed by the ATTA recorded more than 16% growth in 2007
March 28, 2008
ATTA’s 2007 industry-wide snapshot represents more than $300,000,000 of adventure travel business and 875,000+ travelers. 57% from North America, last year was 61%. The profile of tour operators that took this year’s survey was very similar (size, number of employees, year started, etc) to those in 2005 and 2006.
Reflecting on 2007 and looking ahead to 2008:
• 86% indicated positive growth rates, with 39% recording more than 16% growth in 2007
• 40% reported more than 11% net margin
• 98% project growth in 2008, with 66% expecting more than 16% growth
• Trends evident to tour operators:
- 34% reported increased competition among adventure operators (marketing, pricing, sales promotions)
- 59% reported increases in demand for custom itineraries/trips
- 38% reported increases in demand shorter duration trips (less than one week long)
- 43% reported increases in demand for eco-tourism/environmental trips
- 35% reported increase in demand for cultural/educational trips
• Most significant threats:
- 45% reported increased cost of operating (capital/infrastructure spending, equipment )
- 39% reported increased cost of marketing due to competition from other adventure travel businesses
- 39% reported reduced client travel due to poor economy
Tour Operators – most productive types of marketing used in 2007:
85% – Word of Mouth/Viral
70% – Repeat Business/Clients
64% – Travel Agents
*Internet (SEO, Web links, emailing, etc.) and PR follow in the 50+% range
Feature Coming Soon!
January 1, 2008
Stay tuned for the first feature article in this section.
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