"Why Travel Matters" was presented at the 2009 SMG Tourism Conference

1. Why Travel Matters And How Your Organization Can Respond to Remain Competitive

2. The Situation at Hand

3. The Long Boom 1982-2007 Dow Jones industrial Average 1992 803 2007 14,165 Casino Gaming Late 80’s Nevada & New Jersey Today 12 states have casino gaming and 48 have some form The average size of a house has increased by 50% American style capitalism was king Wal Mart & Target => cheap goods Living Large

5. Everything has changed Consumers will behave differently; chastened, will act more wisely The grasshopper and the ant Yankee virtues vs. speculation Recalibrating expectations for the good life Consumer Reset

6. The new calculation: “Do we need it or do we want it?” Reset on Travel

7. Across all aspects of the destination Which destination? What method of travel? What lodging? What dining? What retail? What activities? Reset: Decision Impacts

8. To survive the challenges of change that we currently face within our industry it will be critical to go back to the basic and fundamental starting point and answer the question of why travel matters. The Premise

9. Maslow’s Hierarchy of Needs

10. eH06NfrsGavto Thoughts on Why Travel Matters

11. “Travel matters to get away from the usual routine. I travel to relax and to experience new places and different environments.” Travel Matters

12. “Travel opens you up. We tend to become myopic when we stay in one place. Our interactions are with the same people, or the same types of people. Our world view narrows. Conversation becomes repetitive.” Travel Matters

13. “Travel allows us to escape from our everyday lives and gives us the chance to recharge. And the experience can be enriching, relaxing and rejuvenating. I'm ready!” Travel Matters

14. “We travel, initially, to lose ourselves; and we travel, next, to find ourselves. We travel to open our hearts and eyes and learn more about the world than our newspapers will accommodate.” - Pico Iyer Travel Matters

15. Our New Reality Economic Transition Products Experiences Commodities Services

16. What’s real are the experiences and the connections destinations allow visitors to make.

17. Return on Investment (ROI) = Return On Experience (ROE) In order to get a positive ROE you need to know why travel matters. The New Matrix

18. As consumers ask do I need this or do I want this so too you must ask am I appealing to a consumer want or need.

19. Consumer Wants Needs Destination Appeal Want Need The new battle ground

20. What is the real need? Drill Bit Hole

21. Understanding the New Normal

23. “ A consumer culture invites us to want more than we can ever have: a culture of thrift invites us to be grateful for whatever we can get.” -Time Magazine A Culture of Thrift

24. 63% have cut back on entertainment 56% have cut back on non fast food restaurants 38% are buying less tickets to sporting events 46% are going to the movies less 25% are gambling less 28% are spending less on alcoholic beverages 39% have postponed or cancelled a vacation Consumers are Changing Source: Time Magazine

25. Less consumer and business level debt Insane competitiveness recedes Living a more simple life More haggling over prices More time with family and friends Quality vs. quantity A Reset Mindset

26. Rethink our relationship with the consumer It has to be more than just a sale “We’ve got to get into the overall relationship business. If we sell tickets one-off, and hot dogs one -off and sodas one-off then we are in trouble.” - Todd Leiweke CEO Seattle Seahawks Where Do We Go?

27. Get real with the pricing Authentic experiences from a genuine destination Integrate the local community into your marketing efforts Design and build your destination with locals in mind and visitors will follow A New Strategy to Succeed

28. Prior to the recession the TPI had seen significant increases Pricing must reflect a true price value from the perspective of the consumer Scalable – they may stay at a 2 star in a destination instead of a 4 star, but the ROE is high enough that they need to travel there Get Real with the Pricing

29. Authentic Experiences From a Genuine Destination Experiences will become the new currency of travel Every point of contact that a visitor has with a destination impacts that experience Customer service is more important than ever, as it directly affects ROE

30. The local community has a passion for every activity you offer, it’s why they moved there Harness and integrate those locals Cooperation, collaboration, co-creation Integrate the Local Community

31. Build for Locals….….and Visitors will Follow Develop your destination in a way that will encourages locals to express themselves Locals know what’s authentic - and what’s not Events, infrastructure, community programs Create & allow for nooks and crannies Locals will fill them out and make the destination more interesting

32. Authenticity Community based planning Customer service ROE Sustainable growth Quality vs. quantity Making Travel Matter

33. The Fork in Our Thinking

34. Scenarios to Consider

36. Consumer have gotten to used to their lifestyle and will return to spending and behavioral patterns they had

37. Hold tight and ride the recession throughScenario 1-Back to Normal

38. The world as we know it has changed Rediscover why travel matters to your destination’s visitors – what resonates with them? Make changes to make destination, marketing strategies, communication more compelling and authentic by integrating the local community Scenario 2- The New Normal

39. Are you ready for the New Normal?

41. Target Audiences

42. Core Strategies

43. Program Elements

44. MeasurementsAre they still relevant – Or do they need adjusting with this ‘new normal’? The New Normal & Your Marketing

45. www.smgonline.net