Bellingham Market Segmentation and Trend Report

Preparedfor:CityofBellinghamPlanning&CommunityDevelopmentDepartmentByCherylHargrove,HTCPartners

April15,2017

CULTURALHERITAGETOURISMSTRATEGICPLAN:MARKETTRENDSANDSEGMENTATIONREPORT

Bellingham/WhatcomCounty:CulturalHeritageTourismStrategicPlan1.3–MarketTrendsandSegmentationReport1.3–MarketTrendsandSegmentationReport

PreparedbyHTCPartners–Page2of17–April2017

ThisMarketTrendsandSegmentationReportisdesignedtoinformBellinghamandWhatcomCountyonthepotentialaudiencesandsegmentsmostappropriateforthedestinationtogrowculturalheritagetourism.TheAssessmentReportandCommunityPresentation(Phase1)providedsomeinitialresearchforconsideration;thisreportdelvesmoredeeplyintodescribingsignificantmarketsforBellingham/WhatcomCountyandconsumertrendstowatch.

1. Cultural Heri tage Tourism Target Markets InthecommunitypresentationonMarch1,2017,consultantCherylHargrovedefinedtheprofileoftheculturalheritagetraveler.Inadditiontothegeneralculturalheritagetraveler,otherpotentialaudiencesincludegeneralleisuretravelers,nature-based/adventure/eco-tourists,regionalvisitorsandgenerationalaudiences.

1.1.CulturalHeritageTraveler

MandalaResearch,LLCproducedthemostrecentnationalstudyontheprofileandimpactoftheculturalheritagetravelerin2013.Thereportcitesthat76%ofallleisuretravelers–or129.6millionadultsannually–engageinaculturalorheritageactivity,spending$171billionUS.Thisstudysupportedpreviousresearchreportsprofilingtheculturalheritagetraveleras:

• Older(49vs.47)• Moreaffluent• Generallyhavehighereducation(manywithgraduateorhigherleveldegrees)• LikelytobeMarriedorwithapartner.

Whilebabyboomerscontinuetodominatethemarket,GenXarerapidlygrowingasaculturalheritagetourismsegment.Multi-generationaltraveltohistoricandculturalattractions/eventsisalsoontherise.The2013MandalaResearchReportalsodeterminedthesedesirablecharacteristicsoftheculturalheritagetraveler:

• Culturalheritagetravelersstaylonger,spendmorethangeneralU.S.leisuretravelers($1,319vs$820)andaremorelikelytostayinahotel,motelorB&B

• Arefrequenttravelers–taking3.61leisuretripsinthelastthreeyears(comparedwith3.4tripsforthegeneralleisuretraveler)

• 46%oftheirtotaltripbudgetwerespentonactivities,dining&shopping• 72%seektravelexperienceswherethedestination,buildingsandsurroundingshave

retainedtheirhistoricalcharacter• 66%preferleisuretravelthatiseducational• 52%spendmoremoneyonculturalandheritageactivitieswhileontheirvacation/trip;and

49%willpaymoreforlodgingthathasadistinctiveculturalorheritagecomponent(historicbuilding,localartordecor,architecture,etc.)



• Amajorityofculturalheritagetravelerswanttoengagewithlocalsand“do”something(preferringimmersionandparticipationtobeingaspectator)

A2009MandalaResearchReportrevealedthetopactivitiesofculturalheritagetravelersas:

1. Visitinghistoricsites(66%)

2. Participatinginhistoricalre-enactments(64%)

3. Visitingartmuseums/galleries(54%)

4. Attendinganart/craftfairorfestival(45%)

5. Attendingaprofessionaldanceperformance(44%)

6. Visitingstate/nationalparks(41%)

7. Shoppinginmuseumstores(32%)

8. Exploringurbanneighborhoods(30%)CulturalheritagetourismisnotlimitedtodomesticU.S.travelers.InternationaltravelersarealsointerestedinU.S.culturalheritage.Accordingtothe2015CulturalHeritageTravelerreportproducedbytheNationalTravelandTourismOfficeattheU.S.DepartmentofCommerce,morethan22millionoverseasvisitorstotheU.S.(excludingCanadaandMexico)engageinaculturalheritageactivity–or28%ofallinternationalinboundvisitors.Thisrepresentsa56percentincreasefrom2008to2015,withthemajority(78percent)ofthesevisitorsonvacation/holiday.1Likedomestictourists,shoppingcontinuestobethenumberoneactivityforinternationaltouristswhileintheUnitedStates.However,theytraditionallyfavor–andparticipatein–culturalandheritageactivitiesduringtheirholidayhere.Specifically,

• 61percentvisitNationalParks/Monuments• 50percentvisitartgalleriesormuseums• 46percentvisithistoriclocations(morethanamusement/themeparksat33%)• 40percentvisitsmalltowns/countryside• 32percentparticipateinaguidedtour• 28percentattendconcert/play/musical• 28percentvisitcultural/ethnicheritagesites• 9percentvisitanAmericanIndianCommunities.2

TheCanadianTravelActivitiesandMotivationsSurvey(TAMS)providessomeofthemostrelevantandcurrentmarketresearchavailableforspecifictourismsegments,includingthedemographicprofileofheritagetravelers(USandCanadian).TAMSresearchprofilingpleasuretravelerstoBritishColumbia2007-2009foundasimilarprofileoftheculturalheritagetravelertotheMandalaResearchLLCstudies–educated,affluent–althoughtheCanadianheritagetravelerswereyoungerwiththelargestgroupbetweenagesof18to34(31%participated;29%motivatedbyhistoricsitesandmuseums).Thosemotivatedbyarcheologyandinterpretiveprogramsweremorelikelytobeage45-54.31Preliminary“2015SectorReport:CulturalHeritageTraveler”providedbyNationalTravelandTourismOffice,InternationalTradeAdministration,U.S.DepartmentofCommerce(August2016)2Preliminary“2015SectorReport:CulturalHeritageTraveler”providedbyNationalTravelandTourismOffice,InternationalTradeAdministration,U.S.DepartmentofCommerce(August2016)3TourismBritishColumbia,HeritageTourismProductOverview,April2009



AboriginalculturaltourismisstronginBritishColumbiatotaling$42millionin2011,upfrom$20millionin2006.AccordingtotheAboriginalTourismAssociationofBritishColumbia(AtBC),theaverageAboriginalculturaltourismvisitortoBritishColumbiatendstobefemale,middletolateaged,well-educated,andearnsanupper-middleincome.AtBCreports,“Aboriginalculturaltourismvisitorsundertheageof50preferactiveexperiencessuchascanoeing,kayaking,dog-sleddingandhorsebackriding,whilevisitorsaged50+preferlessvigorousexperiencessuchashiking,walks,natureobservation,andindooractivities.”4

ThisclusteringofpreferredculturalheritageactivitiesbodeswellforBellingham/WhatcomCountyasthedestinationoffersalloftheseactivitiesinitscurrentvisitor-readywheelhouse.

1.2.GeneralLeisureTravelersForBellinghamandWhatcomCounty,natureandrecreationaretopmotivatorsforvisitation.However,cultureandheritageactivitiescanbeastimulustoextendlengthofstay,increaserepeatvisitationorserveasacatalystforselectingadestinationshowcasingplace-basedauthenticexperiences.A2009PGAVStudyconductedbyJerryHenryandAssociatesfoundthat80percentofvisitorsliketovisitplacesthatareauthentic.5The2013MandalaResearch,LLCStudyfoundthatgeneralleisuretravelersoftenengagedinculturalheritageactivities.Topactivitiesincluded:

• Visitedheritagebuildings/historicalbuildings(42%)• Attendedcultural/heritagefair,festival(40%)• Attendedhistoricalreenactments(38%)• Participatedinanorganizedtouroflocalhistoryorculture(37%)• Visitedlivinghistorymuseums(37%)• Tookatourfocusingonlocalarchitecture(34%)• Researchedfamilyhistory(32%)• Shoppedforitemsmadebylocalartisans,craftspeople(31%)• Visitedfarmsandranches(25%)• Exploredsmalltowns(24%)• Experiencedlocalorregionalcuisineforauniqueandmemorableexperience(23%)• Selfguidedwalkingtour(22%)

Withadesireformoreauthenticexperiences,afocusonhealthandwell-being,anddistinctiveplacestoescapefromeverydaylife,theoutlookispositivefordestinationsthatprovideabalanceofbothnature-basedandplace-based(culturalheritage)experiences.

4TourismSectorProfile,AboriginalTourismAssociationofBritishColumbia(May2014),p2,http://www.destinationbc.ca/getattachment/Research/Research-by-Activity/All-Sector-Profiles/Aboriginal-Cultural-Tourism-Sector-Profile,-May-20/Tourism-Sector-Profile_AboriginalCulturalTourism_May2014.pdf.aspx5JerryHenryandAssociatesforPGAVDestinations(2009),RealPotential:ThePowerofAuthenticitytoRepositionYourDestination



CompetitorsforLeisureTimeThecompetitionforleisuretimeandspendingisintense.AccordingtotheAmericanTimeUseSurvey(2015)bytheBureauofLaborStatistics,nearlyeveryoneage15andover(96%)engagedinsomesortofleisureactivity;thetopthreearewatchingTV(2.8hoursday),socializing(51minutes),orparticipatinginsports,exerciseandrecreation(29minutes).6TheshifttouseofelectronicsasleisureactivitiesishighlightedinNielsen’sTotalAudienceReportwhere“Americansaged18andolderspendmorethan11hoursadaywatchingTV,listeningtotheradioorusingsmartphonesandotherelectronicdevices.”7

1.3.Adventure/Nature-based/EcoTouristsNature-basedtourismsimplydescribestraveltonaturalplaces.Nature-basedvisitorsseekoutdestinationsthatcareforandshowcasenaturalattractions.Ecotourism,themostwell-knownsegmentofnature-basedtourism,isnowdefinedas“responsibletraveltonaturalareasthatconservestheenvironment,sustainsthewell-beingofthelocalpeople,andinvolvesinterpretationandeducation.”8AccordingtoTheInternationalEcotourismSociety:

• Eco-touristsareresponsibleconsumersinterestedinsocial,economic,andenvironmentalsustainability.

• Theyseekoutauthenticlocalexperiences.• Manyeco-touristsusevoluntourismactivitiesasawaytogivebacktothecommunities

theyvisit.• Eco-touristsseektominimizethecarbonfootprintoftheirtravel,withclimateinmind

byplanningwiselyandchoosingconsciously.9AdventureTravelisdefinedbynature+physicalactivity+culture.TheU.S.AdventurePulserecognizesfivesegmentsofleisuretravel.Onegroupismasstravelers(34%)notcurrentlyparticipatinginadventure;anothergrouparepre-adventurersorup-and-comingadventurers(14.4%)whomhavetriedanadventureactivityasasecondaryactivitytoaformertrip.Threecoreadventuretravelpersonasare:1)23.9%areadventuregazers;2)20%areadventurers;and3)adventureenthusiasts(7.5%). AdventureGrazer Adventurer AdventureEnthusiastCharacteristics Bucketlistdriven Activelyseekingto

improve/enhanceskillsPracticeactivitiesathighskilllevel

Notlikelytorepeatactivitiesonceexperiences

Repeatafavoriteactivityoractivityonmultipletrips

Accepthigherriskstoachievegreaterthrill

Performatnovice/beginnerskilllevel

Performatintermediatelevel

Dedicatedtooneactivity

6“AmericanTimeUseSurvey–2015Results”,BureauofLaborStatistics,U.S.DepartmentofLabor,http://www.bls.gov/news.release/pdf/atus.pdf7Nielsen’sTotalAudienceReport,AmericansUseElectronicMedia11+HoursaDay(Q42014),https://www.statista.com/chart/1971/electronic-media-use/8TheInternationalEcotourismSociety(TIES)20159Whoareeco-tourists?TIES(nd)https://www.ecotourism.org/book/who-are-eco-tourists



Highthrillseeker Moderatethrillseeker Seekuniqueandnewdestinationstopracticefavoriteactivity

Motivations Timetobewithfamily Relaxation ExploringnewplacesExploringnewplaces Timetobewithfamily ExcitingnewactivitiesTimetobewithfriends Exploringnewplaces Relaxation

TheAdventureTravelTradeAssociation,inpartnershipwithMichiganStateUniversity,recentlyconductedastudytobetterunderstandtheadventuretravelerandtheirmotivations.Transformation–intermsofpersonalgrowthandchallenge,accomplishment/achievement,gratitudeandmindfulness–rankedhighestinmotivations.ExpandedWorldview–a“broadenedperspective,expandedhorizons,andculturalunderstanding”–rankedsecond,andLearning(newskills/knowledge,newexperiences,enrichingoverallexperience)rankedthird.Otherimportantmotivationsincludenature&discovery,mentalhealth,fun&thrills,connection,meaningfulstories,physicalhealth,anduniqueexperience.Whereasa2005surveyoftravelersmentioned“extreme,danger,exertionandpower”,the2017studyshowstravelersfocusingon“anaturalenvironment,learning,andmeaningfulexperiences.”Accordingtothe2016IndustrySnapshot,customizedtripsremaininhighdemand.Activitiessuchascyclingandculturalactivitiestoppedregionallists.10ThisprovidesanopportunityforBellingham/WhatcomCountytocombinenatureandculturetoprovidedesiredexperiencesandestablishadistinctivedestinationbrand.Withintheoutdoorrecreationspace,the2016OutdoorParticipationReport11citesadventureracing,non-traditionaltriathlonandtrailrunning,paddlesportsaresomeofthefastestgrowingsports(up26percentfrom2012to2015)amongyouthandyoungadults.Kayakfishingandsea/tourkayakingsawbigparticipationincreasedinthepastthreeyears.Thereportcitestheexperienceasthereasonforgrowth,“thatpeoplearelookingfornonconventionalwaystogetinshape.”12

• NearlyhalfofallAmericans–48.4%–participatedinatleastoneoutdooractivityin2015.• OutdoorparticipationishighestamongCaucasians(71%)andlowest(percapita)amongAfrican

Americans(11%).• Asian/PacificIslandersrepresent7%oftheU.S.’youth/youngadultsparticipatinginoutdoor

activities.• HispanicAmericanyouthandyoungadultshaveoneofthehighestoutdoorparticipationrates

(12%),secondonlytoCaucasian/White,non-Hispanic(71%).• Running,includingjoggingandtrailrunning,isthemostpopularactivitiesamongAmericans

whenmeasuredbynumberofparticipantsandbynumberoftotalannualoutings.• Participantsaged6-24fromthePacificCensusRegiongrewonepercent(14percentto15

percent)from2014to2015.In2015,19percentoftheyouth/youngadultpopulationresidingintheSouthAtlanticregionand17percentofthisyouth/youngadultpopulationfromtheEastNorthCentralregionparticipatedinoutdooractivities.

102016IndustrySnapshot,AdventureTravelTradeAssociation,http://www.adventuretravel.biz/research/industry-snapshot-2016/112016OutdoorRecreationParticipationReport,OutdoorFoundation,www.outdoorfoundation.org12http://www.holabirdsports.com/blog/adventure-racing-is-one-of-the-fastest-growing-sports-in-us/



1.4.GenerationalProfiles:Millennials,Boomers,andGenXMuchhasbeenstudiedandwrittenaboutthegenerationsoftoday.AccordingtotheU.S.CensusBureau,MillennialssurpassedBabyBoomersasthenation’slargestlivinggenerationin2016.Eachofthesedemographicmarketshasspecificpsychographicandbehavioralcharacteristics.ThesemarketsareprofiledandanalyzedbelowtohelpassesstheirpotentialforBellingham/WhatcomCounty,withalensonmotivationsandexpectations.Millennials(GenY)intheU.S.nownumber75.4million.Thisgrowthisdueinparttoyoungimmigrants.TheMillennialpopulationisprojectedtopeakin2036at81.1million.By2050therewillbeaprojected79.2millionMillennials.13

• Theycomprise24%oftheUSpopulation.• MedianincomeforyoungerMillennialsis$25,000,while

olderMillennialsmakealmostdouble($48,000).• Only21%aremarried.• Theyarethemosteducatedgeneration;23%havea

bachelor’sdegreeorhigher;38%arebilingual.• Mostethnicallyandraciallydiversegeneration,19%of

MillennialsareHispanic,14%African-American,and5%Asian.• TwointhreeMillennialsareU.S.-born;11%areborntoat

leastoneimmigrantparent.• Millennialsaccountforone-fifthofsame-sexcouples. • Top10marketsbyconcentrationforMillennialsare

primarilyintheWesternpartofthecountry(Austin,SaltLakeCity,SanDiego,LosAngeles,Denver,Washington,Houston,LasVegas,SanFrancisco,Dallas-FortWorth).14

AccordingtoMMGYGlobal,“nearly60percentofMillennialswouldratherspendmoneyonexperiencesthanonmaterialgoods.”Dollar-wise,thattranslatestotheaveragemillennialtravelerplanningtospendabout$5,300pertrip.15OneuniquecharacteristicofMillennialsisthedesiretostayconnectedwhiletraveling,usingtechnologynotonlyforon-sitetripplanningbutalsoforrecordingexperiencesandsharingwithothersviasocialmedia.TheU.S.ChamberFoundationprepared“TheMillennialGenerationResearchReview”toprofilethiscohort.Thestudyusesbirthyearsof1980to1999todefinetheMillennialgeneration(differentfromthePewResearchCenterabove.)Millennialsare:

• Technicallysavvy,astheyhaveonlyknownawired,connectedworld13PewResearchCenter,http://www.pewresearch.org/fact-tank/2016/04/25/millennials-overtake-baby-boomers/14Neilsen,http://www.marketingcharts.com/traditional/demographic-stats-about-us-millennials-40016/15AsreportedbyRoesler,P.(May2015)“MobileTechnologyandFutureofTravel”Inc.com,http://www.inc.com/peter-roesler/mobile-technology-and-future-of-travel.html

THEGENERATIONSDEFINEDTheMillennialGenerationBorn:1981to1997Ageofadultsin2016:19to35*GenerationXBorn:1965to1980Agein2016:36to51TheBabyBoomGenerationBorn:1946to1964Agein2016:52to70TheSilentGenerationBorn:1928to1945Agein2016:71to88TheGreatestGenerationBorn:Before1928Agein2016:86to101*Nochronologicalendpointhasbeensetforthisgroup.Source:PewResearchCenter



• Optimistic,despitetragiceventsthathaveshapedthisgeneration(9/11,terroristattacks,schoolshootings,tsunamiandhurricanes

• Moretolerantofracesandgroups• Consideredmulti-taskers• Morecaring,communityorientedandpoliticallyengaged,althoughtheyarealsodescribedas

overlyself-confidentandself-absorbed• Mastersofself-expression,with75%creatingaprofileonasocialnetworkingsite,20%posting

personalvideo,38%withonetosixtattoos,and23%withapiercinginsomeplaceotherthananearlobe.Trendtowardpersonalbranding

• Mainsourcesfornewsaretelevision(65%)andInternet(59%).Alsoinfluencedbyparents(61%)• 13%livewithparents(aboomerangeffectoftherecession)and36%dependonfinancial

supportfromfamilies16• Biggestobjectiveforyoungadultstoday,bothmaleandfemale,ishappiness;thisgenerationis

tradinginmoneyandpowerinfavorofloveandfriendship• Millennials(andincreasinglyothergenerations)use“Facebook,Twitter,andothertoolstoself-

organizeandparticipateincausestheycareabout;theysimplyarenotasinterestedinjoiningestablishedmember-basedorganizations.”

• Further,theyhave“littlepatienceforthespeedtowhichthingsgetdoneandmaynotseethevalueinbecomingamemberofwhattheyseeasinefficientorganizations17

• Intheareaoffundraising,Millennialdonorsblendtheirpreferencefortechnologywithadesireforpersonal,traditionalgivingrequests.

• Theyuseonlinetoolstomaketheirdonations,butneedtotrusttheorganizationstowhichtheyaredonatingandfeelthattheyhaveacompellingmissionorcause,andtendtogiveonetimeforaspecificcauseoreventversusannually.Millennialstendtogivesmallerdonationstoanumberoforganizations;20-somethingsdonateonaverageto3.6groups.18

AdditionalstatisticsusingNielsendatafrom2013describesomeofthebehavioralandpsychographiccharacteristicsofMillennials:19

• 52%ofMillennialsconsiderbeingagoodparentimportant • RoughlyaquarterofMillennialswilltryabrandorproductthatsponsorsamusiceventforan

artistorgrouptheylike • Sponsoringaconcertincreasespurchaserateover25%amongMillennialfans • Artistendorsementincreasesbrandmarketshareupto2.4pointsamongMillennialfans • 75%ofMillennialshavemadeafinancialdonationtoanot-for-profitorganization • 71%ofMillennialshaveraisedmoneyforanot-for-profitorganization • 57%ofMillennialshavevolunteeredforanot-for-profitorganization • Over60%ofMillennialswillpaymoreforaproductwherethecompanyisenvironmentally

friendly.

16“TheMillennialGenerationResearchReview”,U.S.ChamberofCommerceFoundation,https://www.uschamberfoundation.org/reports/millennial-generation-research-review17ProfessionalAssociations–KeyFindings,“TheMillennialGenerationResearchReview”,U.S.ChamberofCommerceFoundation,https://www.uschamberfoundation.org/reports/millennial-generation-research-review18NoteontheMillennialDonor“TheMillennialGenerationResearchReview”,U.S.ChamberofCommerceFoundation,https://www.uschamberfoundation.org/reports/millennial-generation-research-review19Cohen,H.“30MillennialDemographicsYouNeed”(February2014)http://heidicohen.com/30-millennial-demographics-chart/



MarketingtoMillennials:Millennials’directpurchasingpowerisestimatedat“$200billion,and$500billionofindirectspending,largelyduetotheinfluenceonthespendingoftheirmostlybabyboomerparents.“20KeyfindingsandrecommendationsfromU.S.ChamberofCommerceFoundation’sTheMillennialGenerationResearchReview“Marketplace”sectioninclude:

• ThemajorityofMillennialsusesocialmediatoconnectwithbrands;theyspendabout1.8hoursdailyonsocialmediasites.80%sleepwiththeircellphonenexttotheirbed

• Theyalsoconnecttoabrandthroughaffiliationwithacause,moreimportanttoMillennialsthanpreviousgenerations

• Advertisingshouldbeplacedaroundengagingcontent.EngagementishigheramongMillennialsthanothergenerationsfortelevisionandparticularlywebsites

• Duetotechnologyandaccesstoinformation,marketingcommunicationisatwo-waystreet,with86%ofMillennialswillingtoshareinformationabouttheirbrandpreferencesonline

• TheyaremorelikelytousetheInternet,broadcastthoughts,andcontributecontent(60%)thanothergenerations

• Theyalsorelyonrecommendationsfrompeersandfriendsmorethanexperts• Mobiledevicesareusedtoreadreviewsandexploreinformationonsocialnetworks;“Having

grownupwithmobileanddigitaltechnologyaspartoftheireverydaylives,theyswitchtheirattentionbetweenmediaplatforms27timesperhour”21

• Traditionalgenderdistinctionsnolongerapply,withmore“stayathome”dadsandwomeninsports.

BabyBoomers,definedbytheboominU.S.birthsfollowingWorldWarII,werethelargestgenerationandpeakedat78.8millionin1999.Theyremainanimportantmarket,especiallyfortravel,duetotheirsize(74.9million)andwealth.22Boomershavethehighestconcentrationofthesuper-affluent($5to%25millionininvestibleassets)andultra-affluent(morethan$25million)ofanygeneration.23Thismarketisexplorationhungry,interestedinculture,wantstherealdestination(notcommercialtourismproduct),lovesnature,isdrivenbyfoodandcuisine,andconsideredactivityseekers.24BabyBoomersspend$157billionontripseachyearandmanypollsranktravelasthismarket’sNo.1leisureactivity.25Boomersareactivetravelers,takingan

20“TheMillennialGenerationResearchReview”,U.S.ChamberofCommerceFoundation,https://www.uschamberfoundation.org/reports/millennial-generation-research-review21“TheMillennialGenerationResearchReview”,U.S.ChamberofCommerceFoundation,https://www.uschamberfoundation.org/reports/millennial-generation-research-review22PewResearchCenter,http://www.pewresearch.org/fact-tank/2016/04/25/millennials-overtake-baby-boomers/23Goldberg,B.TheTruthAboutHowDifferentGenerationsTravel,VirtuosoLuxuryTraveler(May2015)http://blog.virtuoso.com/traveler_trends/the-truth-about-how-different-generations-travel/24http://www.statista.com/statistics/318071/profile-of-baby-boomer-travelers-in-the-us/25Gerber,S.NextAvenueLiving&Learningchannel,TheHottestTrendsinBoomerTravel(August2013)http://www.forbes.com/sites/nextavenue/2013/08/01/the-hottest-trends-in-boomer-travel/#3316f10b2cd4



averageof4-5tripsperyear.Morethanhalf(55%)ofBoomerswilltravelonlywithintheU.S.;91%havevacationtimeavailable,and51%willuseallofit.Thetopmotivatorsforpersonaltravelareto:

• Getawayfromnormal,everydaylife(57%) • Spendtimewithfamilyandfriends(55%) • Relaxandrejuvenate(54%)

64%BabyBoomersareprimarilylookingforalaidbackandrelaxingtrip(70%ofGenXerswanttorelax);16%ofBabyBoomersseekadventurous/outdoorstrips,andonly7%seekeducationaldomestictrips.26Multigenerationaltripsareincreasinginimportance,with32%ofBoomersplanningthistypeofdomestictrip.Othertoptypesoftripsinclude:summervacation(30%),weekender(26%),holidaytravel(22%),celebrationvacation(17%),familyreunion(17%)andromanticgetaway(15%).Acity/townisthemostpopulardomesticdestination.27GenXarethesmallestofthegenerations,asthespanisshorter(16years)comparedwithMillennials(17years).TheywerealsobornduringaperiodwhenAmericanswerehavingfewerchildren(3.4millionperyear,comparedwith3.9millionwhenMillennialswereborn.)GenXisanticipatedtopasstheBoomersinpopulationby2028.28ThetravelprofileofGenXissimilartoBabyBoomers,withinterestinexploration,culture,authenticityandcuisine.GenXrate“naturelovers”asa60.5onStatista’sAverageTravelerPsychographicIntensityIndexScore.29FamilylifeshapestravelpreferencesforGenerationX.Timingvacationsalongschoolcalendars,manytripsareclosertohome–favoringbeach-orientedvacations.Theywant/needtimetorelaxandunwind,wherethetoppriorityisahotelstay.AccordingtoMMGY,82%booktravelonlineand71%researchtravelthroughtheirOnlineTravelAgencies(Expedia,Travelocity,etc.)30

26AARP2015BoomerTravelTrends,http://www.aarp.org/content/dam/aarp/research/surveys_statistics/general/2014/AARP-2015-Boomer-Travel-Trends-AARP-res-gen.pdf27http://www.aarp.org/content/dam/aarp/research/surveys_statistics/general/2014/AARP-2015-Boomer-Travel-Trends-AARP-res-gen.pdf28PewResearchCenter,http://www.pewresearch.org/fact-tank/2016/04/25/millennials-overtake-baby-boomers/29http://www.statista.com/statistics/318088/profile-of-generation-x-travelers-in-the-us/30Goldberg,B.TheTruthAboutHowDifferentGenerationsTravel,VirtuosoLuxuryTraveler(May2015)http://blog.virtuoso.com/traveler_trends/the-truth-about-how-different-generations-travel/

Averagespendingperdayonvacation: Millennials $527 GenX $627 BabyBoomers $522 Matures $471Source:http://blog.virtuoso.com/traveler_trends/the-truth-about-how-different-generations-travel/



1.5.FamiliesFamiliesseekvalueanduniqueexperiencesintourpackages.Thefamilyvacationisbecomingthenewfamilydinnertable:withourtime-impoverishedsociety,familiesneedtomakeextraefforttospendqualitytimetogether.31

31Family&MultigenerationalTravelMarket,NationalTourAssociation,http://www.ntaonline.com/includes/media/docs/Family-Travel---NTA.pdf



• 44%ofallleisuretravelersbroughtkidsalongontrips32 • 40%ofallactiveleisuretravelershavetakenatleastonemulti-generationaltrip(definedasa

tripwiththreeormoregenerationspresent)duringtheprevious12months33 • Grandparentsmakeup26%ofallleisuretravelersinAmericaandathirdtookatleastone

leisuretripwithgrandchildrenlastyear34 • WhatkidswantwhentravelingdiffersbyageaccordingtoNancySchretter,aFamily&

MultigenerationalTravelMarketExpert,asreportedintheNationalTourAssociationStudy:35 o Ages1-4:SenseandSensibility–storytelling,fantasyandwonder o Ages3-5:DIYYears–interactive,educationandvariety o Ages8-11:IdentityQuest–variety,educationandinteractive o Ages12-17:TheThrillYears–thrills,authenticityandhistory36 o YoungAdultConnections–experiences,adventure,authenticity,makingadifference

• AccordingtoPGAVDestinations(2013),familiesrepresentonethirdoftheU.S.populationbutmakehalfofallvisitstoattractions.Prioritiesare:togetherness,fun,variety,uniqueexperiences,learningsomethingnew,andgoingsomeplacenew.

1.6.GroupsThegrouptravelmarkethaschangedsubstantiallyinthepastdecade.Nolongeraretouroperatorsbookinglargemotorcoachesof55-60peopleonafast-paceditinerary.Grouptraveltodayismuchmoreflexible,andoftenorganizedonasmallerscaleortargeteditineraryforatheme.Collette’sExplorations,launchedafewyearsagoasasmallgroupbrandfor18orfewerparticipants,sawgrowthindemandforsmallgrouptoursispartofalargertrendfavoring“nichetours”thatallowconsumersto“divedeeper”intoadestinationandtomeetandminglewithpeoplewithsimilarinterests.37Oneofthemostinfluentialgrouptravelplannersforculturalheritagetourismistheeducationaltravelsegment.TheannualGlobalGatheringoftheEducationalTravelCommunity,nowinits31styear,convenestwodistinctgroupsinvolvedinthismarketsegment:nonprofittravelplannersandspecial-interesttouroperators.

• NonprofitTravelPlanners:Largeandsmalltravelprogramsarerepresentedfromalumniassociationsandcontinuingandinternationaleducationdepartments;art,science,andnaturalhistorymuseums;culturalandpreservationorganizations;zoos,aquariums,andconservationgroups;andfromnationalandregionalnonprofitorganizationsandaffinityassociations.ThinkRoadScholar,StanfordAlumniAssociation,CaliforniaAlumniAssociation-Berkeley,TheSierraClub,TheNatureConservancy,NationalTrustforHistoricPreservation,NationalGeographicSociety,andOaklandMuseumofCalifornia.

32Source:MMGYPortraitofAmericanTravelersSurvey33PreferredHotelGroup,http://www.ntaonline.com/includes/media/docs/Family-Travel---NTA.pdf34PreferredHotelGroup,http://www.ntaonline.com/includes/media/docs/Family-Travel---NTA.pdf35Family&MultigenerationalTravelMarket,NationalTourAssociation,http://www.ntaonline.com/includes/media/docs/Family-Travel---NTA.pdf36PGAVDestinations–TheArtoftheFamilyVacationStudy37InterviewwithDanSullivanIV,DirectorofSales,in“Smalleris(Sometimes)Better:TheGrowthofSmallGroupTours”,http://www.travelmarketreport.com/articles/smaller-is-sometimes-better-the-growth-of-small-group-tours



• LeadingU.S.TourOperatorsandSuppliers…Inadditiontoforgingconnectionsbetweentravelplannersfromsimilarinstitutions,ETCbringstogetherallthekeyandestablishedspecial-interestgrouptraveloperators,destinations,andsuppliersfromallcornersoftheworld.Noothermeetingassemblessomanyexpertsdedicatedtoservingthiseducational,alumni,andnonprofittravelmarketniche.110+special-interesttouroperatorsand50+specialtysuppliers,frommorethan40internationaldestinations,attendandexhibitduringETC.Companiesandbusinessesrepresentedinclude:AcademicArrangementsAbroad,DistantHorizons,OdysseysUnlimited,LindbladExpeditions,MIR,NomadicExpeditions,AlaskaWildlandTours,GlobalAdrenaline,OberoiHotels&Resorts,USITravelInsuranceServices,Egyptair,OrganizationforTropicalStudies,AlumniHolidays,andTCSExpeditions.

2. Trends Impact ing Cultural Heri tage Tourism

Manyconsumertrendsimpacttravel.YouneedonlylookattheglobalresearchinnovatorJWTIntelligence’sannuallistoftrends38andyouwillseehowthepredictionofcelebrityendorsementshasbecomeareality,orhowtwopredictionsfrom2014resonatewithtravelersandinfluencetourismdevelopmenttoday:thedesirefor“immersiveexperiences”andtheimpactoftechnology“asagatewaytoopportunity”particularlythroughtheuseofvisualimagesandmobiledevices.JWTIntelligence,publishersofTheFuture100:TrendsandChangestoWatchin2017,recognizestheenrichmentfactorasamotivationforconsumer’sexperiences.Atrendemergingisthefocusonsocialgood,whereconsumerstakepartinvolunteerworkduringtheirleisuretimeorvacation.“Technaturalism”isthemarriageofnaturalchoicesandpick-and-choosetechnology,especiallyrelatedtohealthandwellness.AnothertrendispublishingInstagramstories,bite-sizedarticleswithastrongvisualleadtoreachthemedium’suserbaseof400million.39In2015,JWTIntelligencenotedseveraltrendsrelevantforBellingham/WhatcomCountyinitsannual“Future100”report:

• Thedesirefor“experientialpublicspaces”multisensoryexperiencesthataugmentnature• Focusonwellnesstourism–repackagedparticularlyforMillennialsandBoomers,witha

predictedgrowthof55%by2017• Growthin“thoughtleadershipgetaways”• AdventuristImpulse–championingoutdoorpursuits• Tech-FreeTravel–takingtimeoutfromtechnologyandofferingspaceforcontemplation.

Indevelopingastrategicculturalheritagetourismplan,BellinghamandWhatcomCountyleadersarewisetotrackandmonitortrendsimpactingconsumerchoicesandtravel.Thefollowingsixtrendsprovide“foodforthought”fordestinationleaderstoconsiderinsettinggoals,fundingpriorities,

38JWTIntelligence,https://www.jwtintelligence.com/trend-reports/39“TheFuture100:Trendsandchangetowatchin2017”,JWTIntelligencehttps://www.jwtintelligence.com/trend-reports/the-future-100-2/



developingauthenticactivities,eventsandproducts,anddeliveringconsistentlyhighqualityexperiences.

Trend1:IncreasedCompetitionThenumberofactivemuseumshasdoubledinthelast20years(from17,500to35,000+in2014).40TheNationalRegisterofHistoricPlaceshas90,540listings,representingatotalof1.4millionindividualcontributingresources(includingbuildings,sites,structures,objects).41TheUnitedStatesalsohasdesignated2,532nationalhistoriclandmarks,20WorldHeritageSites,49nationalheritageareas,andmorethan800PreserveAmericacommunities.Addmorethan2,000MainStreetcommunitiesacrossthecountryandthesupplyofculturalheritage“product”ishigh.Asmentionedonpage5,competitionalsocomesintheformofotherleisuretimeactivitiesoutsideoftravel,withmultipleoptionsnowvyingforaconsumer’sfreetime.Culturalheritagesitesmustprovidedynamicandvaluedexperiencesworthyofatourist’stimeandmoney.

Trend2:SavvyConsumersConsumersarebettereducated,moreexperiencedtravelersandthereforehavehigherexpectationsfortourexperiencesthanevenadecadeago.In2014,JWTIntelligencenamedthe“ageofimpatience”asoneofthetop10consumertrends,alongwiththedesireforimmersiveexperiences.42Placesoffthebeatenpathanddestinations“newandnear”arealsogaininggroundasconsumersseektostepoutoftheirnormalenvironmentandfindlittleknowndiscoveries(events,attractions,dinersanddestinations)withinaday’sdrive.43Customizationiskey,andprovidingtailoredexperiencesforeachtargetmarketisessentialtoattractsavvycustomers–especiallyasBabyBoomersageandMillennialsmoveintothepowerspotfortravel.

Trend3:ImpactofTechnologyMorethanonequarterofculturalheritagetravelersreporttheyvisitwebsitesviaaQR(QuickResponse)codeusingtheirsmartphone.Theculturalheritagetourististhreetimesmorelikelytousetheirmobiledevicestolearnabouteventsandgetrecommendations,andmorefrequentlybookdiningandattractionsviamobiledevices(smartphonesandtablets)thangeneraltravelers.Socialmediahashighusagebytheculturalheritagetouristmarket,aswell:75%useFacebookand40%useYouTube.44The40InstituteofMuseumandLibraryServices,GovernmentDoublesOfficialEstimate:Thereare35,000ActiveMuseumsintheU.S.(May2014)https://www.imls.gov/news-events/news-releases/government-doubles-official-estimate-there-are-35000-active-museums-us41NationalRegisterofHistoricPlaces,http://www.nps.gov/nr/42JWTIntelligence,TheFuture100–Trendsandchangetowatchin2015(December2014)https://www.jwtintelligence.com/trend-reports/the-future-100/43Reid,Robert,76-SecondTravelShow,reidontravel.com(December2014)forNationalGeographicTraveler44MandalaResearch,LLC,2013CulturalHeritageTravelerreport



StateoftheAmericanTraveler™TechnologyEdition,publishedinApril2016byDestinationAnalysts,highlightstheimportanceofsocialanddigitalmediaininfluencingtraveldecisions:59.8percentsaidtheopinionsoffriendsandrelativesimpactedtheirinterestinvisitingaplace.While90percentofword-of-mouthstillhappensviapersonalconversation,socialmedia(Facebook,Twitter,Instagram,Pinterest,etc.)accountsfor35.6percent,andemails/texts/postcards/lettersinfluence29.4percentofdecisionsregardingtravel.Whatpeopleofinfluencepost,particularlyfriendsandrelatives,matterstopotentialtravelers.Two-thirdsoftherespondentsalsohearaboutnewtechnologyviaword-of-mouth.45Perhapsthegreatesttechnologicaladvancementistheuseofmobiledevicesforpre-planningresearch,purchasesandon-sitedecision-making.Fromdownloadingappstoprovidemoredetailedcontentaboutexhibitsandtours,tofindingrestaurantsandmakingreservations,smartphoneshelptravelerslocatedesiredinformation.Websiteswithresponsivedesignareessentialtobecometheportalforaccessinginformationonanydevice–tablet,desktop,orphone.TheStateoftheAmericanTravelerReport,producedbyDestinationAnalysts,46citessomerevealingstatisticsregardingtravelmediaandtechnology.Despitegrowthinuseofmobiledevices,threequartersoftravelersstillpreferorstronglypreferplanningontraditionaldevices–desktoporlaptop–especiallyforresearchingactivities,attractionsorevents.SlightlymorethanaquarteroftravelersuseAPPsintravelplanning.Thetechnologyissue(April2016)identifiedprofilesoftechnologyadopters.Notunexpected,theinnovators–thefirsttoadoptnewtraveltechnologies–areMillennialsandGen-Xers.Innovatorsalsotravelthemostandhavethelargestannualtravelbudgets.Thisethnicallydiversesegmentmakesmostorallthedecisionsregardingtravelonline.47Astechnologyadvancesrapidlyintoallfacetsoflife,travelanddestinationsracetokeepupwithdemandforquickaccess,personalization,mobilepayandotherinterconnectedtransactionstosimplifyandspeeduplogistics.48TheexplosivegrowthofInstagram,SnapChat,Flickr,Pinterestandothersocialmediasitesforimageuploadandsharingdemonstratehowapictureisindeedworthathousandwords.Culturalheritagesitesanddestinationsneedtoconsiderwhatimagesresonatewithvisitors–andhowwelltheyshowonsocialmediasites.Technology,anditsimpactontravel,isimportanttoconsiderandintegrateintoallmarketingandplanningtools.

Trend4:TheImportanceofStorytellingTellingstorieshelpsgrabthetourist’sattentionwithrelevantcontentthatconnectsthemtotheplace.Engagingtouristsintheconversationaddstotheexperiencevalue,asdialoguehelpsbuildunderstandingandconnectiontoplace.Crowd-sourcedcontentturnsstorytellingintostoryinvolvement–aconversationwiththecustomerandcommunitybuilding.TripAdvisor,Yelp,Squidoo,Hubpages,

45“TheStateoftheAmericanTraveler”™TechnologyEdition,Volume20(April2016)producedbyDestinationAnalytics,http://www.destinationanalysts.com/wp-content/uploads/2016/05/TheStateoftheAmericanTraveler-April2016.pdf46DestinationAnalysts,Inc.(July2015),TheStateoftheAmericanTraveler,Volume1847DestinationAnalysts,Inc.(April2016),TheStateoftheAmericanTraveler,Volume20,http://www.destinationanalysts.com/wp-content/uploads/2016/05/TheStateoftheAmericanTraveler-April2016.pdf48EricssonConsumerLab,OrbitzTravelTrendsfor2015(December2014)



blogs,andotheronlinesitesarenowkeytripplanningtoolsforconsumerrecommendations,ratingsandresearch.

Trend5:DisruptiveBusinessModelsTheimpactofthepeer-to-peermovementorsharingeconomyhaspotentiallyfavorableimplicationsfortheculturalheritagetourismsegment.AccordingtoVipinGoyal,nowcofounder/partnerofstart-upstudiocalledShipyardNYC(previousfounder,CEOofSideTour,acquiredbyGrouponinSeptember2013) “thismovementisdrivenbyaninterestinsupportinglocalcommunitiesandartisansand knowingmoreaboutthepeoplebehindthethingswebuy.It’sashiftawayfrommass- marketefficiency…thathasdominatedthepastcoupleofdecades.Increasingly,people wanttoexperiencetheuniquegems(whiletraveling.)”49Thesharingeconomy–asevidencedbythesuccessofAirbnbandUber–demonstrateashiftinthedeliverysystemsforhighlypersonalexperiencesandexceptionalcustomerservice.Whilethesharingeconomyistestingtraditionalnorms,especiallyrelatedtopaymentofhotel/moteloccupancytaxanddriverregistration/certificationrespectively,thesharingeconomyisincreasinglyengagedintheproductdevelopment,distributionsystems,andhostingservicesofthetravelandtourismindustry.Socialmediaprovidesinsightsintodesiresandproductdevelopmentdesiredbyneworemergingmarkets–particularlyMillennials–toestablishanew“TrustEconomy”thatsatisfiesacravingforauthenticityandquality.

Trend6:DesireforImmersiveExperiencesAnadditionalimpactofthesharingeconomyisitsgreatinsightandopportunityforculturalheritagetourismdevelopment.Providingdirectaccessforvisitorstomeetandinteractwithresidents(experts,residents,guides,etc.)opensadialogueforlocallysourcedcontentandexperiences.Thesocialinteractionwithlocals,orengagementinfavoritelocalactivities,alsoachievesagrowingdesireofvisitors(particularlyculturalheritagetourists)togobeyondthesuperficialviewofadestinationthatskimsthesurfacewithonlytourstoknownattractions.Delvingdeeperintothecharacterofaplaceallowsvisitorstoconsiderlifeasalocal,andlearnmoreabouttheculture–pasttopresent.Twotravel-relatedstressesnegativelyimpactingthepleasureofatripare1)managingdetails,and2)notfeelingsafe.Thehassleofplanninglogisticscanbestressful;soistheconcernoversafetyandsecurity.Tocountertheseconcerns,andcatertothedesireforimmersiveexperiences,touroperatorsareincreasinglyaddingspecificopportunitiesforexclusive,up-close-and-personalencounterswiththepeopleandculturesthatdefinetheirdestinations.TheAmericanExpressLifeTwistStudy,conductedbytheFuturesCompanyin2013,echoesthisthemeofimmersion.Accordingtothereport,respondentsdefinedtheirownsuccessbyembracingnewexperiences/challenges(65percent)andalwaystryingtolearnanddonewthings(65percent)–

49JWTIntelligence,Peer-PoweredTravelReport,2013



numbers9and10respectivelyoftheTop10contributorstosuccess.Moreimportantlyforculturalheritagetourism,thereportsaid“72percentwouldratherspendmoneyonexperiencesthanthings.”50TheLifeTwistStudycontinued,“Americanshaveestablishedanewstandardofsuccesswherepursuingpassionsandseekinglifefulfillmentnowsupersedethesheeraccumulationofwealth.”Traveling,especiallytonewplaces,toppedthebucketlistforAmericans(88percent)polledinthestudy.51Millennials,whocomprise32percentofU.S.travelers,gobeyondthedesireforacasualmeetingorlocalinteractionintheirdefinitionof“immersiveexperiences.”Theinterestinculturalheritageexperiencesforthisgeneration,inparticular,ishigh.DestinationAnalysts’July2016ProfileofMillennialTravelersintheUnitedStatesreportsacomparabledesireforauthenticdestinationproducts,culture,andcuisine–similartothebabyboomertraveler.52AccordingtoMMGYGlobal,“nearly60percentofMillennialswouldratherspendmoneyonexperiencesthanonmaterialgoods.”Dollar-wise,thattranslatestotheaverageMillennialtravelerplanningtospendabout$5,300pertrip.53Millennialsliketostayconnectedwhiletraveling,usingtechnologynotonlyforon-sitetripplanningbutalsoforrecordingexperiencesandsharingwithothersviasocialmedia.

Conclusion

AstheBellingham/WhatcomCountyCulturalHeritageTourismplanningcommitteeandadvisorygroupbegintodefinedesiredoutcomesforthedestination,itisvitaltounderstandtrendsimpactingsuccessandalsothemostappropriateaudiencestomarketto/attract.Developingtherightexperiences,craftingresonatingmessagesandmarketingtools,preparinghoststoprovidethenecessaryhospitality,andmeasuringtheimpactofculturalheritagetourismareimportantingredientsofastrategicandsustainableculturalheritagetourism.Focusandprioritizationwillensuremaximumreturnoninvestment.Foradditionalinformation,contact:CherylHargrove,912-638-6078;202-236-3777E-mail:[email protected]

50TheFuturesCompany(2014)AmericanExpressLifeTwistStudy,pp751TheFuturesCompany(2014)AmericanExpressLifeTwistStudy,pp1252DestinationAnalysts(July2015),AverageTravelerPsychographicIntensityIndexScore,ProfileofMillennialtravelersintheUnitedStates,http://www.statista.com/statistics/318096/profile-of-millennial-travelers-in-the-us/53AsreportedbyRoesler,P.(May2015)“MobileTechnologyandFutureofTravel”Inc.com,http://www.inc.com/peter-roesler/mobile-technology-and-future-of-travel.html

Bellingham Market Segmentation and Trend Report

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