TTRA. Big Data and Its Impact on Travel and Tourism 18 June 2014
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1 1 TTRA Big Data and Its Impact on Travel and Tourism 18 June 2014
2 CAN BIG DATA HELP TOURISM BOARDS DECIDE WHERE TO MARKET MORE AND WHERE TO MARKET LESS?
3 AGENDA Key take aways 3 Realities of tourism board marketing budgets today Changing marketing mix for destination marketers Leveraging Real Time Data to make better decisions and generate a better ROI Doing more with less!
4 DESTINATION BUDGET TRENDS U.S. 4 Wide variances across state budgets The budgets for the top ten U.S. state tourism offices represent more than half, or 53.5%, of the total budget for all state tourism offices. In the fiscal year that ended June 30, 2013, the average budget of those top ten states was $36.6 million while the average for the other 36 reporting states was just $8.8 million. % of Total State Tourism Budgets FY Ended June 30, 2013 Ave. State Budget $8.8 mil Top 10 Remaining 26 Ave. State Budget $36.6 mil Top 10 Hawaii Florida Illinois California Texas Michigan Virginia Alaska Arkansas Wisconsin Source: US Travel Association: Survey of U.S. State Tourism Budgets, Skift, June 2013
5 DESTINATION BUDGET TRENDS -- U.S. Budgets experience change 5 Of the 46 reporting states, 11 state tourism budgets declined between 0.6% and 31.9% while 31 state tourism budgets increased between 0.3% and 126.4%. The average 2013 budget was $14.9 million. Averages have been trending upwards since 2010 when they dropped to $13.3 million after reaching a record $16.9 million in Source: US Travel Association: Survey of U.S. State Tourism Budgets, Skift, June 2013
6 DESTINATION BUDGET TRENDS -- EUROPE European travel market holding steady in European destinations grew by a robust 5% in 2013, which is above what was expected (563 million arrivals). For the first 5 months of 2014, both intra-region and long-haul markets based on large source markets Germany, UK, France and the US, indicate positive prospects for 2014 upwards of 5% growth (Source: European Tourism Commission, 2/27/14 and 5/15/14). Europe s Fourth Consecutive Year of Growth 2013 Country Growth France +8% Spain +6% Germany +4% Italy +3% Greece +12% Iceland +21%
7 DESTINATION BUDGET TRENDS -- GLOBAL New Requirements Put Pressure on Destination Budgets 7 Few destinations get major marketing budget increases unless there are specific new destination branding or positioning objectives Mexico invests $15 billion in tourism infrastructure to position it as global power, and a safe one. Minnesota s $14 million annual It s only in Minnesota largest ever ad campaign Expanded objectives stretch budgets New more aggressive International visitor objectives New technology enablement Newest Line Items for Already Strapped Destination Budgets Reputation and Brand Tracking Analytics (clicks, visits, conversion) Data Acquisition (sign ups) CRM (visitor nurturing) Advocate Building (social/community)
8 WHY IS BIG DATA SO IMPORTANT
9 9 Seven Steps of Travel Process 80 Million Searches a Day 5,000 Websites Worldwide
10 More Choices. More Time. More Looks. Lower Conversion.
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12 SOURCE MARKETS Understanding your marketplace is the key to better marketing ROI 12
13 SOURCE MARKETS 13 Understanding on what markets to focus limited resources becomes extremely critical
14 SOURCE MARKETS 14 Shorter lead times create an advantage for Brussels to market and change behavior over the summer
15 SOURCE MARKETS Conversion is another area where we can see that travelers are actively booking through third-parties, but Brussels is lagging behind the competitive set at the 03 July 08 July these are dates that can still be impacted by online marketing or marketing 15
16 SOURCE MARKETS 16 Filling gap for a need period. Experience Seekers, Adventure Seekers, Self Seekers and Young Free Spirits. Those personas from Germany low penetration could mean opportunity.
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22 22 Improve stakeholder reporting Boost Co-Op marketing programs Destination marketing effectiveness Target international travelers Provide hotel partners additional business intelligence
23 23 Thank You.
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