This document summarizes a keynote speech by Dr. Nancy Arsenault on experiential tourism. She argues that experiences are the new currency in tourism and businesses must shift from focusing on infrastructure and assets to prioritizing customer engagement, personalization, and authentic connections. She provides examples of tourism operators who have innovated their offerings to focus more on experiences through activities like interactive exhibits, storytelling, and immersive cultural experiences. These operators have seen increased visitation, economic impacts, and competitive advantages compared to those who focus only on physical assets. Dr. Arsenault concludes that all tourism players have a role to play in collaboratively creating memorable experiences for visitors.

1. The E-Factor
Belfast,
Northern Ireland
5 March 2013
The Next Tourism
Frontier
Keynote Address By:
Dr. Nancy Arsenault, Managing Partner
We hope the information shared stimulates thinking that helps grow
your business or destination. Feel free to share the contents, but if
you extract slides for an alternative use, please credit the source:
Dr. Nancy Arsenault@ Tourism Cafe Canada. Thank you.
(c) 2013. Dr. Nancy Arsenault
The Experience Factor
• New visitor value
• New business opportunity
• Strengthens brand
• Host and community pride
• A response to growing demand
The customer
experience
... the next
competitive
battle ground
& new
currency.
It’s about the memories

2. (c) 2013. Dr. Nancy Arsenault
Success Requires
• A paradigm shift
• Leap of faith in the customer
• Truly putting the customer at the
heart of your operation
• Investing in innovation, creativity
and industry product & market
development
• Recognizing results take time,
not as quick as marketing
campaign
Shared-risk
Investment
Innovation
Collaboration
(c) 2013. Dr. Nancy Arsenault
We’re on a journey
The
Future
1999
As you are

3. •The customer seeking authenticity, engagement,
personalization & being in the conversation
•Internet creating a new playing field
•More product development insights
•Increased competition
•The Experience Economy and emerging field of
Customer Experience Management
•Growing demand
Influenced by: The
Future
1999
(c) 2013. Dr. Nancy Arsenault
• 85% experiential travel as important/extremely important
• 53% planned new experiential programs in 2012.
• Baby boomers have the ability to pay.
• Europe and South America are excelling
• Food/wine/culinary tours, historical and educational, art
and culture in demand USTOA, Dec 2011
There’s a growing demand
“Travellers have a desire for authentic experiences. They face
a lot of complexity in terms of finding these experiences,
putting them together and finding value.”
– Scott Nisbet, Globus

4. Seeing the sights is no longer enough.
Experiential travellers want to venture beyond the
beaten tourist paths and dive deeper into authentic,
local culture, connect with people in deep and
meaningful ways, and fulfill a desire to give back.
More than ever people are travelling their passions.
Joe Diaz, Afar Magazine (2009)
Signing Boat Guide Cowboy Poet Atl-Atl Throwers Female Cod Fisher
As businesses we must find ways to:
Engage visitors in a series of authentic,
memorable travel activities, revealed over time,
that engages the senses, are inherently personal
and make connections on a physical, emotional,
spiritual, intellectual or social level.
Photo Credit: Celes DavarPhoto Credit: GMIST Photo Credit: Experience PEI
Author: Nancy Arsenault 2004, evolved 2007.

5. (c) 2013. Dr. Nancy Arsenault
So let me ask you
... if you could
... would you
But we can’t
package and sell
what doesn’t exist
(c) 2013. Dr. Nancy Arsenault
Attractions: If you could, would you
•Have the courage to lead program innovation against the norm?
•Create ways to connect with niche traveller types?
•Charge £ 150pp /$300 CDN for a 3-hour experience for 4 people?
•Help generate revenues for community partners?
•Value getting LOTS of free media coverage?
The Halifax Citadel National Historic Site of Canada

6. (c) 2013. Dr. Nancy Arsenault
Soldier for a Day
understood different people are
willing to pay for different
experiences
http://www.pc.gc.ca/lhn-nhs/ns/halifax/visit/visit9/visit9d.aspx
The Halifax Citadel National Historic Site of Canada
(c) 2013. Dr. Nancy Arsenault
Hotels: If you could, would you
•Target your local community for your high-end property?
•Enjoy a permission database of 12,000 in your own city to invite
regularly to your hotel?
•Excite people in your own community to spend $$$ and choose to
stay over night?
•Develop brand aligned people & partners to deliver experiences to
your guests?
The Fairmont Empress,Victoria British Columbia

7. (c) 2013. Dr. Nancy Arsenault
Friends of the Empress Program
... reached an entire new market
that now enhances other markets
http://www.friendsoftheempress.ca/
The Fairmont Empress Hotel
(c) 2013. Dr. Nancy Arsenault
Local Tour Operator: If you could, would you
•Allocate 75% to product development; 25% to marketing?
•Define your ideal guest as: open minded people, seeking
enlightenment to build on?
•Shift from show and tell to engaging visitors with your people,
special places and stories?
•Find ways to respond to demand for groups or 12 to 400, but only
using locals from a community of 12,600?
Great Spirit CircleTrail, Manitoulin Island Ontario

8. (c) 2013. Dr. Nancy Arsenault
Great Spirit Circle Trail
Innovative Business Model
Built On
Program Modules
People and Experiences 1st
www.circletrail.com
(c) 2013. Dr. Nancy Arsenault
Fishermen: If you could, would you
Shediac Bay Cruises, New Brunswick
•Share your passion for the sea with visitors?
•Enjoy a new revenue stream from your boat?
•Take pride in showcasing a part of your history/culture to guests from
around the world?
•Hire people who share your passion and love telling stories?
Tranquility Cove Adventures, Prince Edward Island

9. (c) 2013. Dr. Nancy Arsenault
Non-traditional providers
abound
... fishermen, farmers,
artisans, artists, chefs ...
(c) 2013. Dr. Nancy Arsenault
Passionate Person: If you could, would you
•Forge on with a tourism idea when people think
you’re nuts?
•Build a 10-day pre-tourism season festival in a
town of 785 people?
•Try to grow the spring season to help all
businesses?
Trails,Tales &Tunes: Festival Norris Point Newfoundland Population: 785

10. (c) 2013. Dr. Nancy Arsenault
Every community has a
unique stories
and
authentic storytellers
... that are yours
(c) 2013. Dr. Nancy Arsenault
Each of these represent a
success story.
What do they have in
common?

11. They Use Experiences to Compete onValue
Value is the immunization factor. When there is no difference in value
people buy on price alone. Competing on value allows you to create a
‘be different’ strategy that your competitors will have difficulty copying.
Roy Osing. (2009). Be Different or be Dead
Credit: Inniskillin The CN Tower:Photo Credit: CTC
(c) 2013. Dr. Nancy Arsenault
They CHOOSE to Raise the Bar on:
•Engagement
•Personalization
•Connections
•Value ... for travellers
•Partnerships
•Collaboration
•Shared revenue
•Competitive positioning
•New business

12. A tale of two attractions
The First Attraction ...

13. New and right across from the other attraction
Beautiful repurposed heritage building

14. The BC Experience
The 2nd Attraction

15. Which seems more appealing?
Why?

16. (c) 2013. Dr. Nancy Arsenault
One focused on
the physical
assets
The other on
emotional
engagement
Guess who’s
still in
business?
Infrastructure
Activities
Greater
Differentiation,
Emotion, &
Engagement
No to Low
Differentiation,
Emotion, &
Engagement
Competitive
Position
Pricing &
Profits
ROI
Physical
Engagement
Cost Based Pricing Value-Based Pricing
The First Attraction Focused on the “Stuff”
Programs
Framework: Lesley Anderson & Nancy Arsenault (2012)

17. The 2nd Put You In The Story
Infrastructure
Activities
Programs
Greater
Differentiation,
Emotion, &
Engagement
No to Low
Differentiation,
Emotion, &
Engagement
Competitive
Position
Pricing &
Profits
ROI
ROI + ROE
Emotional
Engagement
Physical
Engagement
Cost Based Pricing Value-Based Pricing
The 2nd Attraction
“Engaged Travellers IN the Story”
Framework: Lesley Anderson & Nancy Arsenault (2012)
Partnerships+&+Connec0ng+
to+People,+Place+&+Culture
Increased+Sales,+Brand+
Strength+&+Advocacy

18. RESULTS
• 451,120 visitors, 1/3 said this was the reason to visit
Victoria in 2007
• $30M/£15M economic impact
• Fabulous exhibit but the passenger manifest and the ‘ticket’
… were the ticket, to an impactful memorable experience
• I received my boarding pass and entered …I saw, I sampled, I
tried on, I touched, then … Discovered my fate on April 15th,
1912.
(c) 2013. Dr. Nancy Arsenault
(c) 2013. Dr. Nancy Arsenault
We All Have A Role To Play
Infrastructure
Activities
Programs
To create and
deliver on the
memories.
Creating Memories
(Operators)
Building Themes, Selling Dreams
(Enablers)
Promotions &
Media Relations
Destination
Development
ResearchMarket
Development
Collaborate
to Compete
Dare to be
Different
(c) 2013. Dr. Nancy Arsenault

19. Thanks!
www.tourismcafe.org
nancy@tourismcafe.org
Tel: 250.391.6077
The Experience Gal
Stay Connected
& Access Free Info
Click “Join Us” @
www.tourismcafe.org