Étiquette : travel behavior

Catégories
Products and activities Transportation

Tourist Taxis

The following text is a translation of the French original, which can be found at: (Les taxis touristiques)

 

Taxi drivers interact with many tourists on a daily basis and sometimes even constitute the first human contact a visitor has on arriving at his or her destination. This realization of the importance of their role has brought significant change to the global tourism industry. Whether on land or water, the mission of so-called “tourist taxis” sometimes goes beyond merely transporting their clients from point A to point B to focus on the overall visitor experience.

Québec taxis: a highly-regulated industry

In Québec, the number of taxi owner permits is restricted. According to the Montreal Economic Institute, in 2010 there were 84 taxis in Sherbrooke, 629 in Québec City and 4,445 on the island of Montreal. When they have a fare, drivers may not travel outside the zone for which they have a permit. These regulations are designed to protect the consumer and ensure quality service.

Montréal-Trudeau International Airport is the taxis’ most coveted client. To avoid disputes, it was decided in 2009 that a draw would be held for the right to purchase the 297 permits for this destination. The greater profit from trips and high volume of business and tourist clientele explain the popularity of this location.

A different kind of taxi service

Tourist taxis are different from other types of taxis in that they focus on the visitors’ experience and helping them discover a given destination. Often, the drivers will either have some relevant training or work closely with the destination’s Tourism Board. These companies usually offer a range of tours, as well as some customized ones.

In Québec City, for example, TaxiCoop Québec offers six tours of the city ranging in length from two to six hours.

  1. Québec City, its life and history
  2. Montmorency Falls and Orléans Island
  3. Québec City and Montmorency Falls tour
  4. Religious sites and surrounding area of Québec City
  5. Québec City adventure tour
  6. Québec City, its life and history (includes a cruise)

These tours, which can also be customized, are conducted by drivers who are certified as tourist guides by Merici College. The hourly rate for a group of 4 people is $65.

There are several reasons to use a tourist taxi, such as:

  • Flight layovers often take up precious travelling time. Rather than spending tedious hours at an airport, some travellers would rather use that time to see as many sights as possible without necessarily renting a car. The solution? Hire a taxi. In Singapore, Taxi Tourist Guides are targeting those travelers, offering their captive clientele guided city tours that leave from Changi Airport and last a minimum of three hours. These guides have been certified by the Tourism Board and the Singapore Taxi Academy. The three-month long theoretical and practical training teaches drivers the main tourist attractions, some history, guiding techniques and client relations.

 

  • Driving a car when on a wine tasting tour is problematic and possibly dangerous. Several French Tourism Boards have recruited taxi companies in order to resolve this problem. In the Bordeaux region, for instance, visitors can take a guided taxi tour of the region’s great wineries.

Boat taxis

In many cities, bodies of water have at least some impact on transportation. This fact has inspired some communities to provide water-based transportation. Water taxis bring visitors to otherwise inaccessible locations, enable them to avoid long detours and offer a pleasant boating experience. They can be found in a few major cities around the world as well as in some nature parks. We have provided three examples:

  • Rowes Wharf Water Transport, a Boston company that operates a water taxi service, offers transportation to many of the city’s major attractions and has exclusive rights to a few destinations, such as the New England Aquarium and Logan International Airport.

Source : Rowes Wharf Water Transport

  • At New Zealand’s Abel Tasman National Park, water taxis play an important role in getting people around. Since the park has no roads, visitors travel along the coastline either on foot or by kayak. A water taxi is an excellent alternative for exploring the shores, visiting seal colonies on neighbouring islands and making sure the travelers get back to dry land.

Source: Marahau Water Taxi

  • For the past five years, Québec’s own Excursions Maritimes has been providing a water taxi service in the capital region for visitors and residents alike. The company offers a number of different tours and packages from predetermined boarding points such the Quai des cageux on Champlain Boulevard, the Port de Québec Marina and île d’Orléans.

Source: Excursions Maritimes Québec

The company also offers more customized services. For example, passengers can ask to be dropped off at a certain point in the tour and be picked up at the same place a few hours later. In order to offer a wider range of services, the company has developed partnerships with other players in the local tourism industry.

The importance of quality service and innovation

The value of tourist taxis is based on the training of driver-guides, the flexibility and relevance of the services they offer, and how those services mesh with the existing tourism product. Although the taxi industry is highly regulated in Québec, whether they operate in the city or in outlying areas, taxi owner permit holders are free to implement this innovative business model.

Sources:

– Conseil canadien des ressources humaines en tourisme. «Normes de compétence nationales».

– Institut économique de Montréal. «Industrie du taxi: en route vers une réforme», août 2010.

Websites:

– Excursions Maritimes Québec

– Bordeaux Tourism Board

– Abel Tasman National Park

– Rowes Wharf Water Transport

– Singapore Taxi Academy

– TaxiCoop Québec

– City on the Move

 

Catégories
Sustainable tourism

Assessing the Demand for Sustainable Tourism

Rachel Dodds, Director, Sustaining Tourism, & Assistant Professor, Ryerson University and Marion Joppe, President, Tourism Environment, & University Research Chair in Tourism, University of Guelph are assessing the demand for sustainable tourism in this article.

Although there is no question that tourism needs to be sustainable, the actual demand for sustainable tourism is difficult to assess as most figures reflect anecdotal evidence of market share. In recent years, a number of surveys have assessed the demand for more sustainable forms of travel and, in some instances, a willingness to pay and/or financially offset the impact of respondents’ travel.

A number of studies have shown that consumers are becoming more interested in sustainable forms of tourism. In Europe, 95% of Swiss tourists consider respect for local culture to be highly important when choosing a holiday(1) and approximately 87% of respondents in a 2004 responsibletravel.com survey indicated they were also interested in locally produced food, local culture and using local guides when on holiday. A 2002 survey commissioned by the Association of British Travel Agents(2) found that, for 87% of respondents, it was very important that their holiday not damage the environment and, for 76%, that it benefit the people of the destination they were travelling to (for example, through jobs and business opportunities). According to National Geographic Traveller(3), there are 55 million Geotourists in the United States who are environmentally and socially responsible. Geotourists are defined as having “ceaseless expectations for unique and culturally authentic travel experiences that protect and preserve the ecological and cultural environment.” Of these travellers, 38% would be willing to pay a premium to patronize travel companies that use sustainable environmental practices (although it should be noted that only 6% of US travellers take holidays overseas).

It would seem that 2007 was the year when everyone jumped on the “environment bandwagon,” with contradictory results. Most optimistic, a Lonely Planet poll of 24,500 consumers from 144 countries stated that 93% of people said they would or might purposefully partake in environmentally-friendly travel in the future(4). Travellers who consult Lonely Planet are already likely to be much more sensitive to sustainability issues, which accounts for this high percentage that is not supported by other research. For instance, in April 2007, the online travel community, TripAdvisor(5), surveyed 1000 travellers worldwide. Of these, 38% said that environmentally-friendly tourism is a consideration when travelling, 38% had stayed at an environmentally-friendly hotel, 9% specifically seek out such hotels, 34% are willing to pay more to stay in environmentally-friendly hotels and 37% are willing to pay a premium of at least 5-10%. Perhaps of greater long-term concern to the travel industry was the finding that 24% believe air travel should be avoided.

An October 2007 study by TNS Travel & Tourism of over 6,000 people in Great Britain, France, Germany, Italy, Spain and North America(6) concluded that the willingness to pay to offset the environmental costs of their holiday ranged from a low of 2% for Germans, to a high of 12% for Spaniards. With regard to taking steps to reduce their environmental impact, the Italians lead all countries with 32% willing to switch to greener plans, while the United States lag well behind other countries with only 16% expressing such a willingness.

In an American STI survey(7), 75.4% of respondents who are self-declared environmentally-oriented consumers indicated that they were willing to pay $1-20 extra per ticket to mitigate the greenhouse gas effects of their travel and 76.7% said they would switch online travel sites to one that made contributions on their behalf to offset the portion of their emissions. The TNS Travel and Tourism survey was thus less optimistic about the attitude of Americans than the earlier STI study and the survey undertaken by the Travel Industry Association of America (TIA) in 2003(8). The TIA study suggested that more than half of all US adults would be more likely to select an airline, rental car or hotel that uses more environmentally-friendly products and processes. Yet only 14% said their actual selection of a supplier would be influenced by the supplier’s efforts to preserve the environment. In terms of products, 13% would be willing to pay more to use green products – although fully 56% said they might. The amount or rate of the fare premium seems to be the source of their hesitation: 76% would pay less than 10% more per usage, with the majority indicating they would pay less than 5% more.

Compared to their American neighbours, Canadian “travellers express a willingness to take personal action. One-third say that they would switch from a preferred holiday destination to another that supported sustainable tourism, while four in 10 would try to find and use a travel agency that adheres to environmentally sensitive guidelines. And over one-quarter (28%) say they would pay a premium for an ethical and sustainable holiday.”(9) Research conducted by Dodds & Leung(10) suggests that 25% expect travel agents to provide information on climate change and carbon-offsetting options.

While it has been suggested that 44% of British travellers would likely choose an airline with a reputation for fuel-efficient planes(11), Tiscali(12) found that 67% would not even be thinking about the impact their summer holidays could have on the environment. Although consumers may indicate that they expect environmental and social issues to be taken into consideration on their holidays, they do not take it upon themselves to ensure these criteria are being met. Responsibility for ensuring that tourism is more sustainable falls into the hands of the operator. In the UK, over 80% say tour operators should be responsible for preserving the local environment and culture and ensuring that local people benefit from tourism, and the same percentage is more likely to book a holiday with a company with a ‘responsible’ travel policy – a 28% increase since 2001(13). A report by Tearfund(14) declared that 55% of consumers believe that travel agents have a responsibility to provide the information, while 48% think tour operators should provide it.

So what now? Are industry and government moving in this direction?

Although consumers may expect to see social or environmental considerations addressed in the brochures and Websites of operators and travel providers, they do not currently demand these when booking travel packages because many operators simply do not offer responsible/sustainable travel options.

To further the sustainability agenda within the tourism industry, there are a number of recommendations. First, governments should focus their capacity-building efforts on suppliers, using methods like legislated compliance (e.g., environmental, reputation and business probity) and ensuring that resources are available for supplier training and learning and, where needed, filling resource gaps. Second, there is a need to increase public-private partnerships to train the tourism sector in environmental and social awareness and mitigation strategies and industry associations should offer incentives and reporting guidelines. Governments and industry alike need to support training and the sharing of best practices while encouraging industry associations to make adherence to sustainable or responsible tourism policies a condition of membership and to report on progress.

Third, with greater consumer awareness of issues such as climate change, the demand for more information is growing. Demand for sustainable tourism products and services may also grow, if the industry starts to offer more sustainable choices to clients. Businesses can diversify and gain a competitive advantage.

Finally, there is a need to encourage corporate social responsibility reporting from tour operators, airlines, cruise lines, hotels and destinations so that they can understand the impact they themselves are having. Reporting will also provide measurable criteria to allow for comparison of companies and destinations.

Sources:

1. Switzerland Travel Writers and Journalism Club, cited on the Fair Trade in Tourism South Africa Website. Retrieved July 5, 2005, from http://www.fairtourismsa.org.za/fairtrade/index.html
2. MORI (2002). “Package Holidays 2002.” London: Association of British Travel Agents (ABTA).
3. Travel Industry Association of America (2003). “Geotourism: New Trend in Travel Study.” Prepared for National Geographic Traveller, October 2003.
4. Travelmole (2007). “Travellers Back Radical Moves to Protect Environment.” Retrieved August 8, 2007, from http://www.travelmole.com/stories/1121133.php.
5. TripAdvisor (2007). “TripAdvisor Travelers Keen on Going Green.” Retrieved January 16, 2008, from http://www.tripadvisor.co.uk/PressCenter-i120-c1-Press_Releases.html.
6. TNS Travel and Tourism (2007). “Quarter of holidaymakers say they’ll switch to greener plans.” Press release. Retrieved January 16, 2008, from http://www.tnsglobal.com/news/news-4078B2FF93A14AD084EE03C776EE6009.aspx
7. Anavo & STI (2004). Retrieved July 5, 2005, from http://www.sustainabletravelinternational.org/enewsletters/february05travelreport.html
8. TIA (2003).
9. TNS Canadian Facts (2007, December 4). “Canadian travellers express willingness to change their travel behaviours owing to environmental concerns: survey”. Press release. Retrieved January 16, 2008, from http://www.tnsglobal.com/news/news-4CEBC86E3705458FBD60A0D5D960E94A.aspx
10. Dodds, R., & Leung, M. (2007). “Climate change awareness in the tourism industry.” Conference Proceedings TTRA Canada, October 18-20, 2007.
11. TNS Travel and Tourism (2007).
12. Tiscali (2007). “Summer Lifestyle Report 2007.” Retrieved January 16, 2008, from http://www.tiscali.co.uk/presscentre/press_release/2007/july/071807summerlifestyle.html
13. Taylor Nelson Sofres (2004). Responsible Travel ‘Had Enough’ Survey. Retrieved July 5, 2005 from http://www.responsibletravel.com/Copy/Copy101763.htm.
14. Tearfund (2001). “Worlds Apart – A call to responsible global tourism.” Middlesex, UK

Catégories
Accommodation Trends

CouchSurfing: profile of a virtual community of travellers

The accommodation sector is experiencing an intense diversification phase, where establishments worldwide continue to distinguish and redefine their image by incorporating themes amongst other things to create an authentic visitor experience. The same process of diversification is also present in the cyber travel community CouchSurfing, where authenticity has a meaning that goes well beyond traditional tourism products and landscapes.

CouchSurfing is an online travel community of globally minded and socially conscious community of travellers. It “seeks to internationally network people and places, create educational exchanges, raise collective consciousness, spread tolerance and facilitate cultural understanding”. It is all about seeking authentic visitor experiences while staying at other couchsurfers’ homes at any destination. Although many couchsurfers may join the community to save money on accommodation, there are many benefits that accrue to both hosts and guests.

Couchsurfing in Practice

CouchSurfing is enabled by an interactive Web 2.0 Website that offers free membership to anyone, thereby facilitating social interactions amongst people. The profile page is a basic prerequisite for membership and it indicates the person’s intended level of interaction with the general couchsurfing community. This can include to “offer a couch” for sleeping or just “meet up for coffee or tea”. The profile page also shows a member’s involvement in the community over time and contains a friends list that states how a person knows others on the list. By clicking on someone’s profile page, it is possible to see whom he or she has hosted and when, where he or she has traveled and with whom they stayed at each location. Couchsurfing communities at any given destination organize a range of social activities such as parties and get-togethers where live interaction takes place between members who have not had prior personal contact via email or the community’s Website. When couchsurfers travel, they contact other members at their destination and request accommodation on their ‘couch’. The latter is a term used symbolically to represent any private space provided for an overnight stay in the home of a couchsurfer. The average length of stay is 2 to 3 nights per host and a visit of a week or more at the same destination is usually spent at different hosts. This may be alternated with hostels if no host is available.

CouchSurfing became publicly accessible in January 2004 and by January 2008 it counted over 400 000 members, making it the largest community of its kind in the world. Website statistics show that couchsurfers are predominantly from industrialized countries with Europe representing approximately half and North America around 30%. On a country basis, the United States of America accounts for about a quarter of all members worldwide. Couchsurfing is clearly a male-dominated activity, as females represent just under 40% of all members. Couchsurfers are also young: 70% fall in the 18-29 age group and the average member age is 26.

CouchSurfing strives to build connections worldwide that create and strengthen (inter)cultural understanding because members seek deep intense experiences linked to discovery. Based on a survey of 3000 members, over half (56,21%) of all respondents are motivated to learn about themselves and the world around them via meeting like-minded strangers at their destination.

Organization and Management

As an organization CouchSurfing provides its members with a series of practical tips to facilitate safe lodging and it also provides advice to members to build awareness about staying with members in the event of problems. Except for some technical staffers who maintain the Website, CouchSurfing is entirely run by volunteers where some members have particular responsibilities within the organizational structure of the community. There are around 700 ambassadors worldwide who organize gatherings and activities that attract both local and travelling couchsurfers. In Montreal, couchsurfers are known to organize larger meetings that coincide with international festivals and these gatherings vary in duration, location, size and member composition. After Paris, Montreal has the second largest local couchsurfing community in the world, although this position is presently rivaled by London.

As couchsurfers stay with other couchsurfers, they are excluded from official accommodation statistical counts, but nonetheless they are still important contributors to local economic activities. They visit tourist attractions, participate in a range of cultural activities and frequent bars and restaurants just like regular tourists. The biggest difference is that, with the help of their local hosts, they are likely to visit places off the official tourist map in their search for the authentic visitor experience. Thus, their economic contribution is likely to include the consumption of products and services outside the realm of the average visitor.

The future

CouchSurfing is a product of modern tourism in the age of mobility and it regroups the Internet-minded and the globally networked. It is a form of tourism that moves travellers away from the simple consumption of traditional tourism spaces and it also changes people’s expectation of a memorable visitor experience. Although they may have similar travel patterns compared to regular tourists, couchsurfers are likely to be more responsible towards the host community and their local environment. Given that the majority of couchsurfers seek the authenticity of their destination by by building deep emotional connections to places through personal contacts, the role of the traditional tourism landscape becomes less important. This means that iconic tourist attractions and spaces become secondary and social interactions as primary, if not the core of the visitor experience. However, the very essence of seeking out ordinary private spaces and new local people at a destination means that any place on the planet can become a potential couchsurfing haven. Given the direction of global telecommunication patterns and the general expansion of the travel sector, communities like CouchSurfing will continue to exist and grow. Consequently, there may be an increase in spin-offs, resulting in smaller communities that are more specialized and suited to the needs of those users in search of yet a different experience.

This article was written with the collaboration of Joris Sprakel, a lawyer and CouchSurfing ambassador for the city of Amsterdam in the Netherlands.
analyse_couchsurfing_en

Sources:

– Bialski, P. (2007). Intimate Tourism. Friendship in a state of mobility – the case of the online hospitality network. Master’s Thesis. Institute of Sociology. Department of Social Psychology. University of Warsaw, Poland. 85 pages.
– CouchSurfing (2008). Website: http://www.couchsurfing.com/ Last accessed January 23, 2008.
– Hospitality Club Website: http://www.hospitalityclub.org/ Last accessed January 23, 2008.
– Global Freeloaders Website: http://globalfreeloaders.com/ Last accessed January 23, 2008.
– Péloquin, C. (2007a). “Facebook, the new darling of Web 2.0,” Tourism Intelligence Network, UQAM, September 6, 2007.
– Péloquin, C. (2007b). “What is Facebook’s impact on the tourism industry?” Tourism Intelligence Network, UQAM, September 21, 2007.
– Servas International Website: http://joomla.servas.org/ Last accessed January 23, 2008.
– United Nations World Tourism Organization (2008). http://www.unwto.org/frameset/frame_sustainable.html Last accessed January 23, 2008.

Catégories
Customer segments Facts and figures

Enough of Gen-X, Y and the Boomers; here comes the senior market

Consumer society has not always been responsive to the needs of travellers aged 60 and up. And yet, this customer segment is flourishing as the world’s ageing population creates a major demographic shift. When they are healthy and free of time constraints and financial obligations, older consumers are an ideal clientele. Now is the time to examine the characteristics and preferred leisure activities of seniors, an emerging consumer market.

At what age does one become a “senior”?

There are numerous terms to describe individuals of a “certain age”: seniors, senior citizens, Golden Agers, pensioners, retirees, the elderly. The age at which one assumes the title of “senior” varies from 55 to 65, depending on the study or statistic. To distinguish seniors from Baby Boomers (those born between 1947 and 1966), who are currently 41 to 60 years old and have already been examined by the Tourism Intelligence Network, this article will focus on drawing a portrait of those aged 60 and up. Naturally, any predictions, even short-term ones, will inevitably include some Baby Boomers as they are slowly entering this market segment, creating what some have called the “senior boom” or “senior surge.” However, the seniors of tomorrow will definitely be very different from those of today.

The silent generation

At the present time, the 60+ market segment is populated by members of the “silent generation.” Marked by the war and thus, in many respects, less spoiled than later generations, this generation can be characterized as follows:

  • instilled with a sense of duty
  • respectful of authority
  • looking for stability
  • thrifty and cautious
  • often neophytes when it comes to information and communications technologies

These are, of course, generalizations, and they apply in varying degrees, depending on the age of the individual in this cohort. For example, many 60-year-olds are familiar with or even experienced in information technology, unlike those aged 75 and up.

Quebec seniors

In Quebec alone, there were 1.5 million people aged 60 and over in 2006, or 20% of the entire population. According to the Institut de la Statistique du Québec, this number will grow to 2.27 million by 2026 to represent 28% of all Quebeckers. The Print Measurement Bureau (PMB) estimates that 621,000 Quebeckers aged 60 and up have taken an overnight vacation trip within Canada in the past 12 months, with 475,000 of these trips taken in Quebec. During the same period, 356,000 Quebec seniors travelled outside the country.

Figure 1
Percentage of Quebeckers aged 60 and up
who took at least one overnight trip in the past 12 months

Visiting friends and relatives

The preferred type of accommodation for seniors travelling in Canada is the home of friends and relatives (44%), followed by a hotel (25%); amongst the general population, the favourite accommodation is a hotel.

Figure 2

The primary activities of these travellers are visiting friends and relatives (54%) – which is higher than the percentage recorded for the entire population –, sightseeing (38%) and shopping (25%). Furthermore, the percentage of golfers is higher among seniors (7%) than it is among the overall travelling population (4%).

Figure 3

Walking, cultural activities and golf

Generally speaking, those aged 60 and up also engage in a number of leisure activities that can be easily practised when travelling: walking and biking, live theatre, classical music concerts, museum visits and golf, for example (Figure 4).

Figure 4
Percentage of Quebec seniors participating in leisure and sports activities

Destinations

The foreign destinations most often visited by Quebec seniors are listed in the following table. When compared to Quebeckers of all ages, a higher percentage of seniors have gone to Florida and Italy.

Table 1
Top destinations of Quebec seniors who have travelled outside the country in the past 3 years

The senior market also represents:
• one-third (32.5%) of all Quebec coach travellers (for trips within Canada)
• 30% of travellers who have taken a cruise in the past 3 years
• 57% of those who use travellers’ cheques
• 25% of the clientele of Quebec travel wholesalers (65 and over)

Products adapted to seniors

Some companies are targeting this booming market. At Boston travel agency Vantage Deluxe World Travel, the median customer age is 71 and trips and travel components are selected to meet the needs and desires of this clientele. For example:

  • trips are longer than average
  • itineraries are less full, meaning that sites can be visited at a leisurely pace
  • cruise ships are smaller, with spacious cabins
  • customers can travel alone or be paired with a travel companion

As the AG2R Group notes, to accommodate travelling seniors, one must provide secondary services:

  • transfers to and from airports
  • baggage transportation or even shipping bags in advance
  • especially attentive and warm receptions in hotels

Some Quebec ski resorts offer lifetime passes to those aged 70 and up. These seniors must first purchase a regular season pass, which is then automatically renewed the following year. Older skiers practise the sport with friends, who are sometimes younger, or with family members, so they bring “paying” skiers with them. They also tend to visit resorts during less busy periods.

Seniors around the world

Thanks to scientific progress, human beings are living longer, healthier lives. The age pyramid is slowly becoming inverted in most developed countries. In conclusion, here are a few facts and figures about the senior phenomenon around the world:

  • By the year 2050, more than one person out of five, or 22% of the world’s population, will be aged 60 and up, compared to only 10% today. The number of people over the age of 60 was 602 million in 2000; this number will rise to nearly 2 billion by 2050.
  • In the United States, some 37 million people are aged 65 and over, and 9.2 million of them are aged 80 and up.
  • The Americas are home to 75 million seniors (those born before 1945).
  • France was home to 200 centenarians in 1950, 3760 in 1990 and 18,962 as of January 2007. According to the Institut National de la Statistique et des Études Économiques (INSEE), this number will rise to 150,000 by 2050. France now keeps a list of “supercentenarians,” that is, those over the age of 110.
  • In the United Kingdom, recreation accounts for the largest share of household spending among seniors, more than lodging and food.
  • In the very near future, seniors will represent the largest customer segment for the travel industry.

Sources:
– Durand, Amandine. “Seniors: les agences de voyage spécialisées,” L’Internaute. [www.linternaute.com] Last accessed December 14, 2007.
– Hunter-Jones, Philippa and Adele Blackburn. “Understanding the Relationship between Holiday Taking and Self-Assessed Health: An Exploratory Study of Senior Tourism,” International Journal of Consumer Studies, Vol. 31, No. 5, September 2007.
– Institut de la statistique du Québec, 2006.
– Institut de la statistique du Québec, Si la tendance se maintient… Perspectives démographiques, Québec et régions, 2001-2051, November 2004.
– Mesmer, Philippe. “Bienvenue dans un monde senior,” Vivre en 2020, Le Monde, hors série, October 2007.
– Pak, Cabrini and Ajit Kambil. “Over 50 and Ready To Shop: Serving the Aging Consumer,” Journal of Business Strategy, 2006, Vol. 27, No. 6.
– Print Measurement Bureau, 2007.
– Seniorjournal.com. “Travel Agencies that Target Senior Citizens May Best Meet Special Travel Needs,” Senior Citizen Travel & Vacation, September 10, 2007.

Catégories
Customer segments

Spotlight on Generation Y

Although the definition can vary, the term “Generation Y” generally refers to people born between 1978 and 1989, or those aged 18 to 29. Whether you call them Echo Boomers or Generation Y, they are without doubt a major, surprisingly different, customer segment. However, does Quebec’s Generation Y travel? If so, what are its favourite activities when travelling, and in general? What is the best way to appeal to these complex new consumers weaned on technology?

Profile of the Echo Boomer market segment

In 2005, Generation Y represented 20.3% of the Quebec population 18 years and over. They account for a similar proportion of the travel market, constituting 18.8% of the province’s domestic travellers and 19.5% of its international travellers during the past year.
According to the Print Measurement Bureau (PMB), 42% of young Quebeckers in Generation Y have travelled within Canada in the past year, while the rate is 46% among the entire population aged 12 years and over (Table 1). Nearly one-third of them made at least one trip within Quebec and 10% visited Ontario.

 

Table 2 lists the most popular international destinations among Generation Y travellers in the past three years, noting the percentage of those who made at least one trip to each destination, as compared to the entire Quebec population. Though this demographic group visited the Northeast United States and France in greater numbers than did the overall Quebec population, it was not as fond of Cuba as other customer segments were.

Figure 1 illustrates the percentage of young people aged 18 to 29 who take part in certain activities while travelling in Canada, compared to the number of participants from the overall Quebec population. Members of Generation Y are more likely to practise sports activities, hiking and skiing, and engage in shopping and nightlife than other travellers. However, they are less likely to attend cultural activities like museums, art galleries and events.

Here are some more pertinent facts taken from the PMB with regard to the travel behaviour of Quebec Generation Y travellers in Canada:

  • 85% travel by car, 9% by bus and 10% by plane
  • 78% travel for only a few days, 22% for one week and only 7% for two to three weeks
  • their favourite type of accommodation is with friends and family (40%), followed by hotels (34%), motels (18%), campgrounds (18%), cottages (17%) and, rarely, B&Bs (5%)

When travelling outside the country:

  • 41% travel for a few days, 44% for one week, 27% for two to three weeks and 12% for one to two months
  • 76% travel by plane, 36% by car and 10% by bus

Other than their favourite activities while travelling, what interests this clientele? What are its favourite hobbies and leisure activities? Figure 2 illustrates the percentage of this generation that engaged in various sports and leisure activities over the past year.

Compared to the overall population, young people aged 18 to 29 have a higher participation rate in a greater number of sports and activities (cycling, dance, photography, running, canoeing, amusement parks, etc.). Nightlife is especially popular, with 46% of young people having gone out to bars in the last year.

As illustrated in Figure 3, some Quebec events are quite popular with young people in Generation Y: for example, 15% attended the Montréal International Jazz Festival last year. Other Quebec attractions are popular too, with one out of five Quebeckers aged 18 to 29 having visited La Ronde, a proportion that is twice that of the overall Quebec population.

Looking beyond the numbers

With personalities and behaviours that differ from those of preceding generations, Echo Boomers are a challenge for the companies who would like to attract them. However, they are not unreachable, and the following information may help you understand them better.

  • For this generation, travel offers a sense of accomplishment and pleasure; it is a tool of personal development, a way to discover new lands and an enriching experience, both personally and socially. Traditional sightseeing activities, guided tours and museums are not attractive to them. They prefer adventure tourism, sports tourism, the latest forms of entertainment and outdoor activities.
  • Professionally, the children of Baby Boomers do not want to be like their parents. While the latter are often workaholics, Generation Y aims for a better balance between work, family and one’s personal life. Not particularly loyal employees, these people look for work that they can be passionate about, rather than something stable and well paid. They do not like hierarchical organizations.
  • Though often big consumers, they are also savvy, experienced buyers. As a customer segment, they are demanding and hard to predict. Because they often have limited budgets and many have a high debt ratio, the quality-price ratio is key to them (they often travel with only one credit card). In addition, they are very skilled at searching the Web for the ideal destination and price. The Internet now offers tremendous information transparency and Generation Y is certainly the generation that takes full advantage of this.
  • Technology is part and parcel of their lives and the internet holds few secrets for them; they navigate easily and confidently, whether searching for information or making online reservations.
  • Unlike other customer segments, Echo Boomers are not afraid of innovation. On the contrary, they enjoy surprises, adapt quickly, and like to get off the beaten path to discover new horizons, new destinations and new activities.
  • In terms of marketing, it is vital to remember that they have been immersed in advertising since birth and, as a result, are less sensitive to it or even immune. Therefore, they can be difficult to reach through traditional media and more easily reached through the internet. However, viral marketing, search engine referencing and online public relations are more effective than conventional advertising banners. Furthermore, the advent of social networking sites like MySpace and Facebook means that marketing efforts must “listen” in order to identify, target and reach Generation Y. Members of this generation like to talk about themselves and their lives (their trips, friends, photos, etc.) on personal pages and blogs.
  • Remember that they share a lot. Thanks to social websites, cell phones, online chatting and Skype, they are instantly up to date with whatever their friends are doing, no matter where or when. This is why well-executed viral marketing campaigns can be so effective.
  • The most powerful hook for them is probably a sense of humour, or even sarcasm. Strategies that can make them (and their friends) laugh will win points. Some marketing campaigns have used humour to great effect, even with limited budgets.

In short, they are skilled negotiators, ambitious and nonchalant, and they question everything. They are also wholehearted hedonists, sensitive to the fate of the planet and keen to learn more about the world. Full of ideas, these people are inspiring.

Sources:

– Print Measurement Bureau, 2007.
– Renaud, Jean-François. « Le Web de la génération Y », Adviso, conseil + stratégies, 7 décembre 2005.
– Hira A., Nadira. « You Raised Them, Now Manage Them », Fortune, 28 mai 2007.
– « The Children of the Web », Business Week, 2 juillet 2007.
– Ramsay, Charles-Albert. « Fallait y penser: un nouvel emploi chaque semaine? », Les Affaires, 7 juillet 2007.
– Canning, Simon et Lara Sinclair. « End of the Love-in », The Australian, 20 octobre 2006.

Catégories
Sustainable tourism

Understanding the certification jungle

Welcome to the jungle of quality labels and certification programs! There is certainly a lot to choose from. Are these marks of recognition a sign of quality, a guarantee of success or simply a marketing tool? Do travellers care about them and can they distinguish among them? The following article explores many of these questions and provides a few answers. It was prepared by Michèle Laliberté of the Tourism Intelligence Network of the ESG-UQAM Chair in Tourism (University of Quebec at Montréal):

Everyone wants to boast a mark of distinction

Among the most prestigious international distinctions is “UNESCO World Heritage Site.” The European Union recently announced plans to develop a similar quality label as a way of developing culture and heritage tourism and enhancing its prestige and educational value.

Europe abounds with a variety of eco-labels, Tourism Australia has launched an ecotourism certification program, and the Quebec adventure and ecotourism sector boasts a quality program managed by the Bureau de normalisation du Québec. The Ministère du Tourisme du Québec is restarting its Démarche Qualité Tourisme total quality program. Under the aegis of the World Tourism Organization (WTO) and with funding from both the Quebec and Canadian governments, the World Center of Excellence on Tourist Destinations (CED) recently opened in Montreal. It is currently developing criteria to measure the excellence of destinations.

In the US, five hotels are proudly displaying their certifications from the US Green Building Council. Every year, the World Travel & Tourism Council (WTTC) hands out its Tourism for Tomorrow Awards and is currently studying the possibility of establishing an accreditation for organizations which meet sustainable development standards. In Quebec, Grands prix du tourisme recipients proudly feature their awards in their advertising campaigns. And, although primarily a marketing association, the prestigious Relais & Châteaux hotel chain, synonymous with luxury, is not open to just anyone.

And the list goes on. Classifications, certifications, social labels, quality labels, labels of origin, eco-labels, major awards, luxury banners… if recognition is what you seek, there is certainly a lot to choose from!

It goes without saying that growing consumer awareness of the environment and the negative impacts of tourism has led to an inevitable reassessment of tourism practices. Certification is one way to prove one’s commitment and provide a guarantee of good practice. More and more, the principles of sustainable development are key to establishing criteria and creating new labels.

Advantages for businesses

Committing to a certification program or total quality approach is not easy. It is very time-consuming and can even lead to a complete overhaul of work processes. In a business climate where customers are demanding and often enjoy a wealth of options, more and more companies are looking for a seal of quality, recognition or distinction to:

  • improve their services and product quality
  • reassure consumers and provide a guarantee
  • distinguish themselves from the competition
  • enhance their visibility and reputation
  • access new markets
  • improve business practices and increase productivity
  • and, to some extent, reduce the negative impacts of tourism

Even certification has its failings

The stars used to rank hotels are undoubtedly the most recognized travel rating system in the world. But who awards these stars? They can come from tour operators, the hotel itself, recognized organizations with very different criteria from one region to the next, or even – with the advent of Web 2.0 – internet users (also read:
You haven’t heard the last of Web 2.0!).

As a traveller, how often have you lamented the disparities in evaluations from different regions and the lack of uniformity among the various programs? In fact, many organizations would like to establish an international certification system, but this may only be a pipe dream.

The challenges? How can international standards take into account the realities of different regions, and how can mass tourism products and niche tourism products meet the same standards? How can a community have a say in the decision-making process, and how can small businesses rally the technical, financial and human resources to take on heavy, costly procedures?

These same questions apply domestically as well. To be “certified” means to ensure that something is true, to provide a guarantee of… what, exactly? Many companies, having understood the promotional benefits of certification, will go so far as to declare themselves certified, even if they are not. This is not uncommon in the case of various “eco” products.

Ambiguous surveys and an ideological debate

Can a “seal” truly influence consumer choices, and do travellers care about evaluation criteria when selecting a certified business or do they simply have faith in the “seal”? Do travellers know which criteria distinguish a 4-star hotel from a 2-star hotel? And do they know that rating systems differ from one country to the next?

In response to these questions, here are some survey results to answer these questions and point out some contradictions:

“Green” programs are definitely very popular! A survey by the Hotel Association of Canada shows that 60% of Canadians feel that membership in an environmental program is a major factor in their choice of hotel. In Quebec, this percentage is 72%, the highest of any Canadian province. Many other surveys illustrate the popularity of environmental programs, both in Canada and around the world.

If something has a “green” label, then it must be good! Various surveys indicate there is still a high level of confusion and lack of understanding when it comes to eco-labels. Consumers support certifications and quality labels, but they are rarely able to distinguish among them or understand their true meaning.

When travellers are on vacation, their principles take a break as well! On one hand, an Orbitz survey reports that 63% of people would pay more to stay in a “green” hotel and 67% attach importance to the “eco-friendliness” of a destination. On the other hand, according to a Starwood survey, most Americans leave their environmental conscience at home because 70% of frequent travellers state they do not waste water at home, while this percentage drops to 18% when they are in a hotel.

Although respect for the environment is now an integral part of contemporary mores, vacations are associated with freedom and a lack of restrictions. Consequently, high principles and good habits also go on holiday. Consumers are exhibiting an openness and commitment to the state of the environment, but tourists’ positive attitude towards eco-labels is not a guarantee of environmentally responsible behaviour.

Says Marie-France Turcotte, “Certifications have the potential to make a modest contribution to meeting a major challenge, that of changing business practices and tourist consumer habits.” So, the question is, should travellers purchase a product on the pretext that it is certified, or do we need to become accountable as travellers, companies and social actors? The answer is, no doubt, both.

With the growth of certifications, businesses will probably face the same dilemma they do vis-à-vis distribution channels: which one will improve their position in the wonderful world of competition, increase their visibility and make them the chosen one of consumers? Start strategizing!

Sources:
– Boyd, Christopher. “Green Hotels Are Cleaning Up – Embracing an Eco-friendly Philosophy Resonates with Tourists,” The Orlando Sentinel, July 9, 2007.
– Breaking Travel News. “Survey: US Travelers Stress Eco-friendly Travel,” April 12, 2007.
– Delisle, Marie-Andrée and Louis Jolin. Un autre tourisme est-il possible? Presses de l’Université du Québec, 2007, 144 pages.
– ehotelier.com. “Survey: Most Americans Drop their Green Habits when They Check-in to Hotels,” July 10, 2007.
– Le Figaro.fr. “Vers une liste du ‘Patrimoine de l’Europe’,” May 22, 2006.
– Hotel News Resource. “As Hotels Focus on Environmentally Friendly Programs, Awareness among Hotel Guests Lags,” July 24, 2007.
– Hotel News Resource. “Leaving Home often Means Leaving Green Routines behind according to New Survey from Element Hotels,” July 10, 2007.
– HSMAI. “Asian Hospitality Leaders at HSMAI Roundtable Call for Standardization of Ratings System for Asian Hotels,” July 17, 2007.
– Karantzavelou, Vicky. “Six out of 10 Canadians Want To Stay at Green Hotels,” [www.traveldailynew.com], June 10, 2005.
– Parnières, Émilie. “Le tourisme responsable: Convergence de deux démarches de labellisation,” Veille info tourisme, May 2005.
– Salerno, Neil. “Stars & Diamonds – Do They really Matter any more?” Hotel News Resource, January 31, 2007.
– Turcotte, Marie-France. L’écotourisme entre l’arbre et l’écorce – Labels et certifications d’écotourisme et de tourisme. Le contexte et la portée, Presses de l’Université du Québec, 2006, p. 348-369.
– World Travel & Tourism Council. “Big Companies Must Show how Green They Are,” November 24, 2006.

Catégories
Management

Is your destination in decline?

« Tell me who visits your destination, and I’ll tell you whether it’s in decline! » This was the bet made by Stanley Plog when he developed his model of matching traveller profiles with phases in a destination life cycle. When a destination is visited by large numbers of tourists, it has reached a critical phase in this cycle; to avoid decline, destinations must understand that tourism growth must be planned and controlled.

The life cycle of a destination: from discovery to decline

There are five different traveller profiles in Stanley Plog’s model: from venturers to dependables. According to Plog, these various tourist personality types are associated with phases in a destination life cycle because the type of tourist who visits a region indicates the area’s level of development, and in some ways determines its life cycle. Figure 1 illustrates the various phases in a tourist area’s life cycle (TALC), which were developed by R.W. Butler, Ph.D, in 1980.

Figure 1

MLa_talc

 

Discovery
During this phase, a little known destination is visited by the first venturers in search of new discoveries and unexplored areas. Through word-of-mouth, the area begins to attract more tourists.

Discovery – Development
Once venturers have begun exploring a destination, they are followed by near-venturers. This creates the first major wave of visitors who – because they are more demanding in terms of services – initiate real development.

Development
With the destination’s notoriety growing, the media, always looking for something new, show up in the region and enthusiastically report on its charm and cachet. This then « condemns » the destination to rapid growth and the arrival of so-called centric travellers. Growth continues and everyone is happy: the number and value of hotels increases; jobs multiply; government coffers overflow with taxes; many areas are enhanced; local stakeholders smugly congratulate themselves on finding a gold mine and believe that tourism is the perfect industry to ensure longevity and unlimited growth. By this time, venturers and near-venturers have abandoned the area and mass tourism has arrived.

This phase is crucial because when a destination is really booming, no one cares about planning or controls. For this reason, it is important to take action at this stage to manage development and define a long-term vision.

Maturity – Decline
Riding this wave of popularity, a destination is too often lax in its regulations: the number of hotels continues to grow; fast-food restaurants pop up everywhere; shops, movie theatres and other forms of entertainment multiply; wholesalers develop packages. The area starts to get « touristy » and there is unchecked development. The destination is unable to resist the easy money of tourism and unsustainable development. Under such pressure, the destination loses its distinctiveness and looks like any other destination. The centrics now stop coming and the near-dependables start to frequent the area. According to Plog, if 30% or more of a destination’s reservations come from package deals, the destination has begun a decline that will last for several decades.

Decline
Despite the boom, decline is now inevitable. The destination now only attracts dependables, who prefer to visit and revisit well-established known quantities. Though often more loyal, this clientele spends less, stays a shorter time and is less active. The destination becomes less lucrative. Deserted by the other tourist segments, the market gets smaller. Managers don’t understand what has happened because arrivals kept rising. The destination must then try to differentiate itself and reposition itself in the market.How many times has this happened? Emerging destinations suddenly become popular and then are ignored as travellers head to newly discovered destinations. Over-crowding leads to decline and a different traveller clientele, and then everything changes!

Obviously, Plog’s model does not apply to every destination, but it does provide food for thought. Furthermore, a destination may find itself in a different position on the curve depending on whether one is considering local, regional, national or international travellers.

Can decline be overcome?

According to Michael Leven, a 45-year hotel-industry veteran, only an earthquake can revive a product at the end of its life cycle. One way to overcome decline is for a destination to develop a new product to give itself a boost or reposition itself and change its marketing strategy. As an example, Leven points to the cruise industry, which languished for many years and then successfully rallied by developing products to meet the needs and preferences of different types of travellers, from Antarctic cruises to classic luxury cruises to thematic cruises.

The case of Costa Rica

A group of researchers from the Cornell University School of Hotel Administration used Plog’s model to examine the profile (behaviour and preferences) of American travellers to Costa Rica. From 1999 to 2003, the number of tourists in Costa Rica grew 20%, with Americans accounting for the biggest jump, 30%. The country’s beautiful landscape make it one of the most popular destinations in Central America and it definitely attracts more international travellers than its neighbours (Belize, Salvador, Guatemala, Honduras, Nicaragua and Panama).

With such an increase in tourist arrivals, one would say the destination is in the development phase. The study findings confirm this as well, indicating that the country is becoming more popular with centrics and that fewer near-venturers are visiting now. If Costa Rica wants to continue riding this crest, it must orchestrate its growth so as to avoid excessive or inappropriate development, because it enjoys a high profile as an ecotourism destination.

Plog’s model applied to US visitors to Canada

Although statistics show Americans are travelling abroad in record numbers, the drastic drop in their numbers to Canada could signal the decline of Canada as a destination. On the other hand, perhaps the exchange rate, the price of gas and upcoming heightened security measures are the only reasons behind this dip. Still, near-dependables and dependables (who make up the smallest percentage of the population) may continue to visit Canada, while the centrics (who make up a majority of the population) will abandon it for more exciting or attractive lands. It may be time for Canada to start courting other American states, revamp and reposition its product for its neighbours or even target other clienteles.

Maintain attractiveness, or perish!

If there were a magic formula, many destinations would have adopted it long ago. However, once a destination understands how the life cycle works, it can control development and maintain its ideal position. Here are a few suggestions:

  • Understand what makes the destination attractive and capitalize on its features and distinctiveness
  • Develop new products that reflect travellers’ changing socio-demographics and values
  • Become familiar with the profile of tourists
  • Plan and control development
  • Preserve the original character of spaces
  • Do not allow business to call the shots
  • Orchestrate marketing for the target clientele
  • Encourage locals to take part in the success of the experience (after all, residents don’t want to lose their quality of life and the things that make their community special)

According to Stanley Plog, destinations that do not plan their development are only harming themselves – by losing the charm that attracted venturers in the first place!

Sources:
– Enz, Cathy A. et al. « Competitive Destination Planning: The Case of Costa Rica, » Cornell University, Center for Hospitality Reports, Vol. 6, No. 12, October 2006.
– Plog, Stanley. « Why Destination Areas Rise and Fall in Popularity, » Cornell Hotel and Restaurant Administration Quarterly, Vol. 42, No. 3, June 2001.
– Weiermair, Klaus. « Le vieillissement – Une réalité qui s’impose aux destinations touristiques, » Espaces, No. 235, March 2006, p. 18-20.

Catégories
Customer segments Products and activities

More to luxury travel than meets the eye

The transition from an emphasis on the tangible to a focus on the emotional is changing the face of luxury travel. Products are evolving to include uniqueness, eccentricity and exclusivity in the travel experience. In the luxury market, authenticity is key and providers have to keep things fresh.

Without doubt, today’s luxury consumers are increasingly diversified and their behaviour has changed over time. Travel industry insiders now talk about traditional luxury versus new luxury: the former is associated with five-star hotels, posh resorts and high prices, and the latter, while still expensive, is the anti-thesis of material consumption and the desire to possess costly objects. Focused on emotions and experience, it has more to do with the manner in which one consumes luxury items.

Luxury means…

  • a spacious hotel suite, a room with a view, a penthouse, a limousine
  • an upscale brand, a place where the staff knows your name

But it also means…

  • time, space, silence, privacy
  • an emotional experience
  • getting away from daily concerns and the complexity of the world at large to a place where everything is simple and easy
  • something original, out of the ordinary, and above all…
  • exclusivity!

A diversity of experiences, from the eccentric to the unique

A luxury traveller can rent a fifty-room castle in the Scottish Highlands for a family reunion or charter a fully crewed yacht for a honeymoon in the Mediterranean. He can practice an extreme sport and look forward to a butler and spa services at the end of the day. Interested in personal development, she can learn photography, sailing, join an archaeological dig or cook with a famous chef. Consumers are pushing the envelope in their quest for what is new and exclusive. Established standards are falling by the wayside; more and more, luxury clientele want to be where the action is and optimize the self-fulfilment aspect of their experience.

The upscale travel site www.thebluefish.com offers clients the chance to become a fighter pilot for a day (Top Gun Challenge), fly over the Himalayas and see the summit of Mt. Everest, take part in a high-performance boat race from Miami to Key Largo (Poker Run), take a private jet to an exclusive golf and safari experience in South Africa, and more.

Conversely, luxury travel can also cater to a completely different set of needs: relaxation, privacy, a focus on health, personal pampering and an opportunity to experience renewal. These other needs mean that companies operating in the luxury niche have to offer a wider variety of more sophisticated products – from spas to spiritualism and from mud wraps to meditation.

At the same time, there is the desire among luxury consumers for ownership – even partial – of something like a villa, yacht or condominium on board a cruise ship. There is also the « small is beautiful » concept, where guests seek the privacy of a residence club or the ambience of a small hotel to fulfil their desire for intimacy.

Many destinations that are still considered exotic, such as South America (with Brazil at the top of the list), the Baltic states, Africa, China, the Middle East, Asia and the Pacific Rim, are attracting new customers, while established urban and resort destinations (London, Paris, Tuscany and the Côte d’Azur) are holding their own.

Soul and style now the signature of the hotel industry

Prestigious institutions in the world of luxury accommodation have recently created chains. For example, the Crillon luxury banner has the celebrated Hotel de Crillon in Paris as its flagship, while the Waldorf-Astoria has given rise to the new Waldorf-Astoria Collection. Another new chain, Capella Hotels & Resorts, has been launched under the direction of Horst Schulze, the man behind the recent success of the Ritz-Carlton.

For the past several years, celebrated architects and icons from the world of fashion and design have been developing hotels stamped with their signature style (there are hotels named Armani, Bulgari and Versace, and each of the 11 floors of the Hotel Puerta America in Madrid was designed by a famous architect). Bathrooms are getting bigger and more lavish. Many hotels are taking on local accents by using materials and décor that reflect the culture of the host country.

Customized and « tailor-made » solutions are now the order of the day. The size of a hotel is becoming a distinguishing factor because it is still quite difficult to deliver quality, personalized service in an establishment with over one hundred rooms. Long-established luxury hotels must shake off the dust if they want to attract Gen Xers (25-40 year-olds), a growing customer segment. In fact, the reputations and austerity of such hotels tend to intimidate these young consumers who are looking for a more modern image and the ease afforded by high-tech amenities.

Spa products very popular

Neil Jacobs, senior vice president-operations, Asia-Pacific, for Four Seasons Hotels, stresses that spas are now a given, just like restaurants and meeting space. Spas have become a deciding factor when selecting a place to stay. Although still in their infancy, destination spas are experiencing tremendous growth. Spas come in various forms: eco-spas, thalassotherapy spas, medi-spas, urban spas and ayurvedic spas (employing traditional Indian folk medicine), to name a few. The privacy afforded by spas, the service focus of these resorts, experienced therapists, authenticity, elegance, refinement and excellent cuisine (famous chefs) are all elements of a luxury experience.

Airline services taking off in all directions

The inconveniences of air travel (crowded airports, restrictive security measures, waiting times, deteriorating service, delays, etc.) discourage most passengers. To avoid these problems, to make every minute count, and to enjoy point-to-point travel with no transfers, many wealthy travellers are turning to various alternatives.

Air taxi services are becoming more common (e.g. Boston-Newark), offering competitive fares and reducing the delays associated with traditional airlines. A helicopter service (US Helicopter) now takes passengers between downtown Manhattan and Kennedy Airport in only eight minutes for US$160.

Rental, charter, co-ownership and ownership of jets are just some of the other options explored by wealthy customers. Growing demand has made the process easier and chartering a jet is becoming as easy as renting a car. The very latest service innovation is the membership card (which requires a large deposit) that enables the holder to subscribe for prepaid charter time at a lower hourly rate.

The new A380 airplane is redefining the notion of luxury service. Its interior can be configured to offer a bar, office, casino, gym, lounge, private sleeping area, open area so passengers can stretch their legs and, the height of luxury, showers! However, water for showers remains problematic because of the weight.

If you are in the business of luxury, it’s got to be real!

In this market segment, the « best » is standard. Although high prices remain a given, they are not the only mark of a luxury product. A number of words contribute to the perception of value: exclusivity, reputation, brand integrity, experience. The « take-care-of-me » attitude of this clientele, the desire for personalization and recognition of one’s standing all require flawless service and flexibility. Moreover, a personal butler for each guest is becoming the norm in the highest luxury bracket.

Although the luxury travel industry is booming, it is worth noting that the life cycle of a luxury product is relatively short and the concept of quality is no longer so narrowly defined. Company executives are feeling market pressure to create more diversified, authentic and unique experiences. Companies must constantly: refresh their products and embrace innovative concepts; update their products to keep them timely, modern and current; adapt products for every customer so that clients enjoy a personalized experience; and recruit exceptional staff who can deliver on the experience.

However, there is an industry trend towards one-upmanship that should be avoided. Is it necessary to offer a choice of 18 different pillows in every room? Does bottled water have to be served by a sommelier? Should customers be able to select from among 12 different pens simply to sign a restaurant bill? If a company is known for impeccable quality, customers should have total trust in the brand.

As clients in this sector become increasingly demanding, customer relations management is key to building loyalty. For this reason, providers must emphasize service quality, attention to detail (like a hand-written note) and extend their efforts both before and after the customer’s stay.

Sources:
– HotelMarketing.com. « Survey: 2006 Consumer Trends in Affluence & Luxury, » June 23, 2006.
– Smith Travel Research. « Experts Discuss Future Of Luxury Travel, » June 26, 2006.
– Travel Weekly, special issue « 2006 Consumer Trends in Affluence & Luxury, June 14, 2006:
– Chipkin, Harvey. « Hotels Indulge the ‘Give Me More’ Generation. »
– Chipkin, Harvey. « Spa-centric Hotels Part of an Evolving Trend. »
– Gebhart, Fred. « Private Jet Travel Taking Off in All Directions. »
– McDonald, Michele. « Airbus’ A380 To Send Luxury Transport Soaring. »
– Weiner Escalera, Karen. « Luxury Travel Now… And What’s Next, » [Hotel-Online.com], October 2005.
– Weiner Escalera, Karen. « Luxury Travel Now And What’s Next for 2006, » [Hotel-Online.com], March 2006.
– Weiner Escalera, Karen. « Luxury Travel Now And What’s Next III, » Smith Travel Research, May 2006.

Catégories
Customer segments

Family travel and Generation X parents

In the last few decades, family realities have changed dramatically. While amenities popular with children (like a hotel pool) are still very important when planning a family vacation, the demand for family travel has been affected by the fact that parents from Generation X now head young families. Having had their children much later in life, this new generation of parents has different values and concerns than their predecessors.

Families look for interesting activities and appropriate services

According to recent findings from Shell Hospitality, owner and operator of a dozen or so resort hotels in the United States and Canada, the top three decision factors in planning a family vacation are the following:
According to recent findings from Shell Hospitality, owner and operator of a dozen or so resort hotels in the United States and Canada, the top three decision factors in planning a family vacation are the following:

  • Location: the destination must offer fast, easy access to a variety of family and recreational activities (amusement parks, visitor attractions, beaches, ski hills, etc.) or be located near the homes of friends and family.
  • Room size: rooms must be spacious enough to allow multiple family members to relax. Families increasingly appreciate amenities like kitchenettes, video games and internet access.
  • Hotel services: naturally, a pool is still the most popular attraction. However, game rooms and fitness facilities are also desirable features. Finally, when the group involves more than one family, teens want their own room; if grandparents are also part of the group, it is vital to be able to reserve neighbouring rooms.

A Travel Industry Association of America (TIA) study confirms that programs for children are very popular with families. Special children’s menus (41%) and hotel discounts for families (30%) are the most popular features, while the availability of toys and video games (22%), supervised activities (13%) and babysitting services (6%) are also well liked by families.

Although an average 60% of families take advantage of these types of services when they travel, Generation X parents are more likely to do so, with 71% of those aged 35 44 using children’s programs. This is the highest proportion among all individuals who travel with children.

Who are Generation X parents?

Generation X covers individuals born from 1965 to 1980. Even though the oldest of these are already in their 40s, many are parents of young children.

In Canada, it is estimated only 17% of Gen Xers have had a first child by the age of 25, while this percentage jumps to 29% among Baby Boomers. In 2002, four out of 10 children (40%) were born to parents aged 30 to 39, compared to 34% in 1991 and 24% in 1981.

Looking for work life balance in a race against time

For Generation X, happiness depends primarily on successfully balancing one?s personal and professional responsibilities. To this end, 80% of parents in this generation would like to spend more time with their families even though, on average, they already spend more time with their children than their parents did.

Shorter, more frequent trips

According to a Spring 2005 survey conducted by the US website thefamilytravelfiles.com, family travel is following the trend towards shorter, more frequent trips. In fact, 35% of those surveyed reported having taken two family vacations during the year, while another 35% reported having taken three or more trips. This frequency had an effect on the duration of family vacations: 75% of them were for a week or less, with 35% of all trips lasting only 2 to 5 days.

Torn between their personal needs, their desire for time with their spouse and the importance attached to family time, Generation X parents are creating a new demand for family travel. Although both leisure and business travel afford opportunities for personal relaxation and rejuvenating time for couples, they are also becoming ideal occasions to spend quality time with the children.

Family responsive vs. family friendly

Family travel was long defined as travel for children, while today it is defined as travel with children. The nuance is important for companies who must become responsive to the needs of both parents and children; traditional family friendly outfits, like theme parks and zoos, must now think about the type of experience available to parents so that visits are enjoyable for every member of the family.

At the same time, to respond to these various needs, some tourism based companies with primarily adult clientele are starting to experiment with new services to show that their facilities can offer everyone, children included, a fun vacation. Last December, Air Transat launched its Kids Club (ages 2 to 11), which provides a number of services and privileges (priority boarding, games, special meals, etc.) to make a family vacation more fun and enjoyable for everyone. Currently, children represent 6% of all Transat Holidays customers.

Resort complexes in southern destinations were among the first to develop mini club services to offer parents a family vacation experience that cleverly combines time with the children with time alone. Club Med remains a leader in this type of approach, breaking down its various children?s programs according to age: Baby Club (4 to 23 months), Petit Club (2 to 3 years), Mini Club (4 to 10 years) and the new Junior Club for teens (11 to 17 years).

Major cruise ship companies quickly adopted this model to attract families. By offering adapted facilities (family staterooms) and appropriate services (organized activities for kids, a water park, arcade, etc.), cruise ships are positioning themselves as the holiday solution that promises something for everyone. And the approach seems to be working: 525,000 of the 3.3 million passengers travelling with Carnival Cruise in 2005 were children.

In Quebec, family friendly initiatives have sprung up recently at spas, country inns and business hotels. These include activities aimed directly at children, babysitting services, supervised game areas for both younger children and older children and family suites furnished specifically for the comfort of children and parents.

In conclusion, in the era of Generation X parents, family travel is no longer defined solely by the preferences of children; parents want to have fun too!

Sources:

– « Cruises: All in the Family, Oceans of Fun for Families, » Family Travel Files Ezine [www.thefamilytravelfiles.com], September 2005.
– Désiront, André. « Partir avec les enfants, » La Presse, February 13, 2006.
– « Kids Want Goodies, Teens Want Adventure: Resort, Airlines and Cruises Cater to All Ages, » Calgary Herald, February 25, 2006.
– « Press Release Family Vacation Survey 2005, » Family Travel Files Ezine [www.thefamilytravelfiles.com], June 2005.
– « Shell Hospitality Reports Trends in Holiday and Family Travel, » Travel 2006 [www.travel2006.org], December 9, 2005.
– Vailles, Francis. « Société : Famille X (2), » La Presse, May 8, 2004.

Catégories
Accommodation Around the world

Luxury hotels now include… camping?

More and more travellers are turning to nature tourism, e.g. trips to unique sites, package tours and outdoor activities. However, these same consumers also want to enjoy comfort, safety and relaxation. Although these needs may seem incompatible, some hotels have successfully combined them by offering camping as part of their latest deluxe products!

A desire for nature and a simpler time

According to French sociologist Jean-Didier Urbain, the desire for nature is one of the primary « needs » generated by city life; the yearning for a natural environment is a reaction to an everyday life of streets and pavement. Furthermore, this phenomenon is likely to increase: it is estimated that by the year 2015, over half the world’s population will be living in cities, especially in the West. For tourism professionals, this nascent trend offers incredible potential.

For his part, sociologist Michel Maffesoli highlights the emergence of a « post-modern paradox »: the prevailing search for luxury, combined with a desire to return to the past. In other words, a desire to get back to the basics. Therefore, those who develop products cleverly combining luxury and nature seem destined for success.

Nature tourism

Defined by the World Tourism Organization (UNWTO) as a « form of tourism in which the main motivation of the tourist is the observation and appreciation of nature », nature tourism responds to the desire for nature by organizing access to exceptional natural environments. To complete the nature tourism experience, the tourism industry has had to develop accommodation solutions that provide a level of comfort to meet customer needs without « de-naturing » the natural environment of the host location. The creation of ecolodges is part of this trend.

Luxury meets nature

Having picked up on this trend – and not wanting to miss out on this market segment – the luxury hotel trade has drawn its inspiration from the tent, a type of lodging traditionally associated with the great outdoors. To attract urban travellers, luxury establishments are designing innovative accommodations that recreate the spirit of adventure so often associated with camping.

First Four Seasons camping site

To help travellers slake their thirst for direct contact with nature, the latest resort from the prestigious Four Seasons hotel chain offers 15 tent accommodations in the Golden Triangle of Northern Thailand. Each spacious tent features a unique décor, zippered doors and windows, a large bed, recycled teak floor, oversized copper bathtub, outdoor shower, high-speed internet access, a safe, and more. A « first » for the hotel group, this pilot project will be used as a benchmark for developing new camps in the future.

Interest on every continent

In 2005, the luxury Resort at Paws Up in Montana added « Tent City » to its product line, offering the American plan (all meals) for US$595 per night. Each tent includes a comfortable bed (fine linen and feather duvet) and artwork on the walls, while the nearby spa provides outdoor massages on the banks of the Blackfoot River, with essential oils from the surrounding region. The concept has been so successful that 6 tents and a new spa will be added in 2006.

In Australia, the Voyages Hotels and Resorts group, which manages 23 luxury resorts, opened Longitude 131°, a 5-star wilderness camp, on July 1, 2004. Located in the heart of a national park, this site -affiliated with the Small Luxury Hotels of the

World group, offers 15 elegant tents mounted on pilings, equipped with air conditioning and satellite television.

Not surprisingly, similar camps can also be found in Dubai (where the Al Maha Desert Resort is located in a 225 square km desert wildlife preserve) and in the Tunisian Sahara, a national park in Namibia as well as some natural sites in Bolivia.

The myth of the adventurer

Amused by the behaviour of city-dwellers wanting to re-experience the past while incorporating the comforts of the city, Jean-Didier Urbain notes that large tourism-based businesses are justified in using the terms « camp » and « camping », because they are referring to the consumer fantasy of being an adventurer. That being said, hoteliers nonetheless seem to have successfully created a promising new market niche by cleverly combining the desire for nature with a taste for luxury.

Sources:
– Hamam, Nadia. « Palais de toile sous les étoiles, » Madame Figaro [www.madamefigaro.fr], February 14, 2006.
– Maffesoli, Michel. ?Un désir de retour à l’archaïque,? Madame Figaro [www.madamefigaro.fr], February 14, 2006.