NORTH AMERICA MARKETING. Hawai i Visitors and Convention Bureau
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1 NORTH AMERICA MARKETING Hawai i Visitors and Convention Bureau
2 North America MARKET SITUATION
3 Air Leisure Traveler Travel Sentiment t 2013 Q4 Q) Compared to a year ago, would you say you. INTEREST Oct 2013 Oct % 10% 39% 50% 54% 41% TIME Oct 2013 Oct % 20% 42% 52% 35% 28% PERSONAL FINANCES Oct 2013 Oct % 30% 43% 48% 31% 22% AFFORDABILITY Oct % 40% Oct % 40% Less/worse About the Same More/better 22% 12% Sources: MMGY Global, travelhorizons research
4 Changes in Travel Planning Behaviors How likely are you to do each of the following on leisure trips during the next six months compared to the last six months? (Top two box Percentage more likely to ) Oct 2013 Oct 2012 Oct 2011 Diff 2013/12 Take advantage of special travel deals 56% 58% 51% 2 pts Use air, hotel, and/or credit card reward points 54% 49% 43% +5 Plan leisure trips farther in advance to get best deals 53% 54% 50% 1 Save more for vacations 51% 41% 40% +10 Drive rather than fly 42% 33% 34% +9 Buy vacation packageincl incl. more than accommodations 36% 31% 25% +5 Pay more for airfares 31% 30% 23% +1 Pay more for hotels/resorts 31% 22% 21% +9 Sources: MMGY Global, travelhorizons research
5 Overall Near-Term Travel Intentions ti Over the next six months, do you plan to take any leisure trips of 50 miles or more one way, or that will include an overnight stay? 75% 74% 71% 75% 79% 73% 78% Oct 07 Oct 08 Oct 09 Oct 10 Oct 11 Oct 12 Oct 13 Sources: MMGY Global, travelhorizons research % who said "Yes"
6 Hawai i Travel Intentions 4 th Quarter How likely you are to visit Hawai i in the next 24 months? 27% 15% 14% 17% 19% 19% 22% Oct 07 Oct 08 Oct 09 Oct 10 Oct 11 Oct 12 Oct 13 %Extremely/Very Likely to Visit Hawai i in next 24 months Sources: MMGY Global, travelhorizons research
7 Hawai i i Price Sensitivity Have you ever considered visiting Hawai i, but decided not to after all? YES: 35% NO: 65% Reason why you decided not to visit Hawai i? Price of the airfare Price of the vacation package Price of the hotel Flight to Hawai i i is too long 22% Don t have enough time 20% Better value at another destination 17% Been to Hawai i before bf 14% Local people are not friendly 12% Accommodations were not available 10% Not sure which island(s) to visit 7% Hawai i is not exotic enough 5% Sources: MMGY Global travelhorizons, October % 38% 49%
8 Air Service Indicators Mixed in 2013 Year-Over-Year Growth in Hawai i LF Passengers, Seats & Airfares Domestic Inbound Load Factors Qtr 1 87% 89% 20% Qtr 2 91% 88% Qtr 3 88% 85% 15% Oct 90% 88% YTD 89% 87% Quarterly 10% Air Seats Passengers Monthly US Mainland 80% 80% 5% HI Int l 76% 79% Domestic Airfare Average Each Way Fares % 5% Airfares Qtr 1 $303 $313 Qtr 2 $317 $333 Qtr 3 $338 $316 10% QTR 1 QTR 2 QTR 3 Oct Nov Dec YTD $320 $321 Sources: US DOT T-100 data from Diio Mi.
9 Growth in 2013 Arrivals Slows in 2 nd Half 20% Year-Over-Year Growth in Hawai i US Visitor Arrivals, Domestic Airfares & Hotel Average Daily Room Rates 15% Hotel ADRs 10% Air Seats 5% Visitors 0% 5% Airfares 10% 2013 Q Q Q3 Oct 13 Nov 13 Dec 13 % Chge Visitors % Chge ADR % Chge Airfare %Chge Seats Sources: Hawai i Tourism Authority; Hospitality Advisors, LLC; Diio-Mi
10 US West Travelers Preferred Destinations for. Safe & secure Good value Sense of relaxation Unique experiences Friendly local people p Unique scenery Great place to get away Different than other places Authentic experiences Intriguing history/culture 6% 22% 20% 22% 47% 37% 56% 41% 40% 32% 36% 31% 40% 32% 27% 31% 44% 44% 43% 39% 42% 41% 50% 56% 59% 64% 68% 52% 69% 78% Hawai i Mexico Caribbean Source: D.K. Shifflet & Associates Hawai i Marketing Effectiveness Study, 2013 Q1
11 US East Travelers Preferred Destinations for. Safe & secure Good value Sense of relaxation Great place to get away Unique experiences Different than other places Clean environment Friendly local people Unique scenery Authentic experiences 5% 8% 10% 17% 20% 24% 26% 25% 29% 25% 29% 23% 33% 37% 39% 39% 37% 44% 46% 50% 46% 40% 37% 53% 55% 55% 62% 59% 61% 62% Hawai i Mexico Caribbean Source: D.K. Shifflet & Associates Hawai i Marketing Effectiveness Study, 2013 Q1
12 Top-of-Mind Perceptions of Hawai i: Avid Travelers Ta eles Who Have Never e Visited Word cloud mentions: Tell me all the reasons why I should take a vacation to Hawai i i. Source: Never-Been Avid Traveler qualitative research, Heatly Custom Research, LLC, January 2014
13 Hawaii Market Opportunity - Bridging i the Hawai i Information Gap Source: Never-Been Avid Traveler qualitative research, Heatly Custom Research, LLC, January 2014
14 North America Market Outlook Pent-up travel demand and a surge in air seats boosted Hawai i s U.S. arrivals to near-record record levels in 2013; though, business slowed in the second half of the year. Looking ahead.hawai i travel demand is at record levels. However, growth is expected to moderate in 2014, as rising travel prices created by strong demand slow the conversion of this demand into Hawai i trips. A lack of understanding of the diversity of the Hawaiian Islands undermines the perceived value of a Hawai i vacation among some Avid Travelers, which in turn curtails Hawai i s ability to convert potential travelers into actual visitors as travel prices rise. In 2014, marketing efforts aimed at bridging this information gap will aid in the conversion of travel demand into trips to the state.
15 North America MARKETING PROGRAMS
16 North America TRAVEL TRADE
17 Roles HVCB Drive consumer demand to distribution system *
18 Strategy Support all distribution channels with a laser focus on education to develop advocates. Increase channel integration with overall HVCB/IC marketing. Develop robust Travel Trade communication & Sales / Marketing tools to drive targeted conversion through strategic co op marketing Education & Training Travel Trade Website Sales & Marketing Tools Condition Driven Co op Marketing Travel Trade media Consortia Communication & Database
19 Wholesale and Retail Integration ti Firm-wideid Wholesale Request for Funding Annual plan BIG INCREMENTAL Wholesale RFP Need periods and markets HVCB generated Integrate into consumer marketing Advertising call to action to website special offers page
20 Wholesale and Retail Integration ti Firm-wideid Key Consortia Partnerships Elevate Hawai I at key events Secure training opportunities Consider marketing to their loyal customers Often in concert with wholesalers
21 Travel Trade Marketing & Communications RFP Component One: Education & Training Rd Redesign education program to incorporate new learning behaviors Align referral programs Component ttwo: Media & Events Reach broad universe of retail travel agents with comprehensive media plan Develop industry events that reflect a participation i level lconsistent it twith Hawaii goals with high quality participants Component Three: Communication & Database Develop a central ldtb database and communications strategy that allows for automated, targeted and proactive marketing to the travel trade Integrate t a total t statewide tt Hawai i destination message and Island specific message KPI s Firm wide!! Database growth and optimization Growth of Leisure Arrivals Doubling all Hawai i and IC course graduate levels over the next two years Wholesale growth to match annual HTA target arrival growth from North America
22 Total Communications Plan Tie all together with sophisticated st CRM Customize communication through agent scoring/profiling Encourage engagement Trigger s based on touch-points and training progress Use an intuitive dashboard for measuring success Travel Agent Universe Hawai i Target Travel Agents High Potential Hawai i Travel Agents
23 Robyn Basso Senior Director, Travel Industry Partnerships
24 North America MARKET SATURATIONS
25 Golf Channel ALOHA SEASON
26
27 PUBLIC RELATIONS
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30 MAHALO
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