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Experiential Travel Product Development

Wid i th N t f O t itiWidening the Net of Opportunities

WithWith

Celes Davar Celes Davar Earth Rhythms, Inc.Earth Rhythms, Inc.Presented byPresented byNancy Arsenault Nancy Arsenault Faculty of Tourism and Hotel ManagementFaculty of Tourism and Hotel ManagementRoyal Roads UniversityRoyal Roads University

April 29, 2008April 29, 2008Truro, Nova ScotiaTruro, Nova Scotia

Photographs courtesy of:Photographs courtesy of:NS Tourism, Culture & Heritage NS Tourism, Culture & Heritage Celes Davar , Nancy Arsenault and Royal Roads UniversityCeles Davar , Nancy Arsenault and Royal Roads University

Tourism Experiences vs. Products?

“ A tourism product is what you buy. A tourism experience is what you remember.”(Canadian Tourism Commission, Experiences Toolkit 2008)

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Who is the Customer?

The National Invitation Keep Exploring!Speak to the hearts and minds of travelersSpeak to the hearts and minds of travelers

Experience Canada through its land, culture, and personal exploration

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The Provincial Invitation

T i N ’ S i ’♦ To experience Nova’ Scotia’sOld world charm,New world pulse,

♦ Shaped by the sea and the spirit of ourand the spirit of our people

What is Your Invitation?T id l ( )?To your customer, your ideal guest(s)?

How much do you know about them?

• Demographics?• Activities?• Psychographics?• Psychographics? • Their propensity to spend?

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DemographicsFacts about people: age, income, education, location

ActivitiesWhat people like to do while vacationing

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The Explorer Quotient TM

A deeper understanding of the modern travelersFree Spirit Rejuvenator

Gentle Explorer Authentic Experiencer

What is the Explorer Quotient?A fun, easy, engaging, and innovative approach to matching consumers with

tourism products based on individual travel values and motivations

Excepts from the Canadian Tourism Commission

pRecognizes that two people can be standing in the exact same spot,

participating in the exact same activity, yet having two completely different experiences

Seen as an opportunity to position Canada as a place for exploration, to “Keep exploring”

Presents Canadian experiences in a more relevant wayT t t l h hi i t d f hi / ti it b iTargets travelers on a psychographic instead of geographic/activity basis

Assumes we have enough experiential product to sell Canada to reach these travelers

**OUR JOB/ OUR OPPORTUNITY**

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Propensity to Spend

It is more about what a person is willing to spend, than how much they earn.

How much is a great experience worth while travelling?while travelling?

All are important!* Destination

* Location

* Activities * Experiences

We’ve just been working positioning destinations and selling activities, longer than crafting memorable visitor experiences!

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What is experiential travel?Travel that engage travelers

in a series of memorable events,

that are revealed over time,

are inherently personal, involve the senses,

and make a connection on anand make a connection on an

emotional, physical, spiritual or intellectual level.

Experiential TravelProducts

Series of events …participatory activities

MarketingMarket dreams

position themes

Result

Memories!…participatory activities…engage senses… authenticity

… personal connection

… position themes … personal relevance

Grand Pre WineryCape Breton Square Dance

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“The customer experience is the next competitive battleground.”

Shaw & Ivens (2005)

We are living in a commoditized economyProducts, prices, people, and technology are so similar

To differentiate we must develop and sell ‘meaningful things’ that travelers will remember, along with the activities in special places

Embracing ‘experiences’ requires a fundamentally different mindset, it is t t i i ti l hift

WHY a strategic organizational shift

“The customer experience will be the next business tsunami.”

Y?

Core ExperiencesWe realize that we need to differentiate ourselves

by presenting experiences that match our customers’ passions.

Today’s travelers are increasingly sophisticated and have varied interests.

Core e periences are at theCore experiences are at the heart of everything we offer our consumers.

New Realities New Directions2008 Tourism Plan & Partnership Opportunities

NS TPCNS Tourism, Culture and Heritage

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Great Experiences Already in Market

The 2007 Royal BC MuseumTitanic Exhibit

❖451 120 visitors 1/3 said this was the

A Resounding Success!

❖451,120 visitors, 1/3 said this was the reason to visit Victoria

❖$30M economic impact

❖Fabulous exhibit but the passenger manifest and the ‘ticket’ … were the ticket, to a terrific guest experience.

❖ I received my boarding pass and entered …I saw, I sampled, I tried on, I touched, then … Discovered my fate on April 15th, 1912.

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Oth E iOth E iOther Experiences Other Experiences in Marketin Market

InternationalInternational

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The Music of MigrationThe Music of Migration

Music of Migration❖The experiences

❖A ti f d di

Experiential ingredients

❖Great theme❖Active use of sound recording a technology to listen to birds

❖Guided walks

❖Wine and cheese

❖Access to experts

❖Great theme

❖All senses are engaged

❖Learning

❖Authentic❖Access to experts

❖Uses local inventory - sky

❖EQ Types - Cultural Explorer and Cultural History Buff

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Where could this approach be used?

❖Brier Island

❖University campuses

❖Rural and urban museums

❖Coastal resorts and areas

❖Create your own acoustic experiences

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By partnering By partnering B2BB2BB2B B2B

with local providers, Santa with local providers, Santa Fe Mountain AdventuresFe Mountain Adventures

has a richer inventory.has a richer inventory.

What is your inventory of What is your inventory of

experience providersexperience providers? ?

Creating a shift in how the product is positioned

❖Away from all-inclusive to customized packaging.

❖Teasing travelers with possibilities - we help you “create your own”

M ti❖Many group options

❖Shift from product to experience focus

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Crabbing ExperienceCrabbing ExperienceTangier Island, VA Tangier Island, VA -- USAUSA

Package Offers:Package Offers:••More timeMore time••What watermen doWhat watermen do

The ThemeThe ThemeBirdsBirds

••Explores other Explores other thingsthings••LunchesLunches••B&BB&B••Time on your ownTime on your own

BirdsBirdsBoatsBoats

Peeler PotsPeeler Pots& Other Tangier Things& Other Tangier Things

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Médoc Marathon, FranceMédoc Marathon, FranceMarathon, wine, cuisineMarathon, wine, cuisine

experienceexperienceFor the cultural explorer:For the cultural explorer:

••Conviviality Conviviality -- a merry festivity a merry festivity personalized for each runnerpersonalized for each runner

••Fun Fun -- runners in costume disguises, runners in costume disguises, individual & groupindividual & group

••Sport Sport -- 42.195 km42.195 km••Health Health -- 22 gourmet food stands; 22 gourmet food stands; local wineslocal wineslocal wineslocal wines

••8500 runners max 8500 runners max -- limitlimit••100,000 spectators100,000 spectators••300 medical support300 medical support••52 other events simultaneously 52 other events simultaneously (music, etc.)(music, etc.)

MastercardMastercardMastercardMastercard

RecognizingRecognizingwhere product where product and marketing and marketing come togethercome together

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CanadaCanada

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Horizon & Co.Our methodology: We understand how to design an experience that has a lasting effect beyond its consumption whether that lasting effect is in the form of a life-long memory or retentionconsumption, whether that lasting effect is in the form of a life-long memory or retention of learning – either way it is the memory that extends the experience over time. Staging experiences that resonate over time is not just about entertainment but rather about engaging all the participants in a program that finds the “sweet spot” across five different experience areas: 1) Entertainment; 2) Education; 3) Activity; 4) Environment; 5) Sensation.

Lighthouse Picnics

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Tips for operators from Lighthouse Picnics

Offer a genuine experience - do not try to be anything other than what you are.

What our setting and experience does so well is provide the ingredients for people to create their own memories - they’ve got

sea, sky, good company, and great food!y g p y g

ExperiencesA Toolkit for partners of the CTC

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Briarcliffe Inn, B&B, PEI

...we have ...we have designed our designed our

exclusive exclusive experiential experiential

adventures to adventures to take you off thetake you off thetake you off the take you off the typical tourist typical tourist

routes to meet routes to meet fascinating fascinating Islanders...Islanders...

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What is the What is the difference difference between between a product a product

and and an an

experienceexperience????

A tourism product is what you A tourism product is what you buy. An experience is what buy. An experience is what

you remember...you remember...ExperiencesA Toolkit for partners of the CTC

BUSINESS PROPOSITIONSBUSINESS PROPOSITIONSCREATING EXPERIENCESCREATING EXPERIENCES

It’s all about Creating Opportunities to respond to visitor demands It’s all about Creating Opportunities to respond to visitor demands who bring different interests by:who bring different interests by:who bring different interests by:who bring different interests by:

1.1.Creating new or refreshed forms of Creating new or refreshed forms of programming programming -- new $new $..

2.2.Adding value to your existing enterprise with new products that Adding value to your existing enterprise with new products that feature feature experiences experiences -- new product lines.new product lines.

P t i ith l l lP t i ith l l l dd l t th kdd l t th k••Partnering with local people Partnering with local people -- add value to the packageadd value to the package..

••Partnering B2B Partnering B2B -- you are strongeryou are stronger together! Rewards all.together! Rewards all.

••Responding with Responding with new higher yield opportunitiesnew higher yield opportunities..

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Crafting Great ExperiencesCrafting Great ExperiencesThrough PartnershipsThrough Partnerships

Experiential Tourism Ingredients

1.Enrichment & Authenticity

2.Partner with your community

3.Invent themes that will intrigue visitors!

4.Engage all the senses!

5.Increase the value - with local people

6.Invent new forms of programs

7.Personalize and customize your services

8.Add interaction and hands-on activities

9.Feature local people - it’s what visitors want

10.Add local retail items

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B2B B2B Business to Business

PartnershipsBusiness to Business

PartnershipsElkhorn Resort & Earth Rhythms

A hotelier - local tour operator exampleElkhorn Resort & Earth Rhythms

A hotelier - local tour operator example

Accommodations partner - Year RoundAccommodations partner - Year Round

Elkhorn Resort, Spa & Confrerence CentreElkhorn Resort, Spa & Confrerence Centre

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ERER22

Elkhorn Elkhorn ResortResort

Earth Earth RhythmsRhythms++

A yearA year--round partnership offering bigger round partnership offering bigger benefits to both companies and the benefits to both companies and the

surrounding community.surrounding community.

B2B with local partner - efficient

❖ Elkhorn Resort1 Their CRS drives all bookings

Earth Rhythms1 P d t t ( k ) f1. Their CRS drives all bookings

2. Direct link to Earth Rhythms on their website - seamless

3. Partner with Earth Rhythms -Bigger Sales Team!

4. With Earth Rhythms, a fuller and high quality offering is available.

1. Product creator (packager) - focus: experiences!

2. Direct link to Elkhorn Resort on our website - seamless

3. Partner with Elkhorn - We own ideas, not property or amenities. A perfect match!g q y g

5. Multiple sub-markets, each with their own needs and interests.

6. Broad offering

4. With Elkhorn Resort & Spa, lots of packaging ideas.

5. Provides outdoor experiences -customized for four key target markets at the resort.

• Specific and exclusive offering

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Lessons learned

1.Create simple programs, easy to deliver logistically, close-by. 2 C t i C t i C t i (hi h i ld )2.Customize • Customize • Customize (higher yields)3.Offer Once-in-a-lifetime programs (night time, elk kill, snowshoe, spa)

in places we take for granted.4.Create “the extra-ordinary” with local inventory.5.Partnering lowers overhead costs.• Small groups as a focus is key.• Resorts have multiple niche markets - we serve them!

TIME SHARE FAMILY (US)TIME SHARE FAMILY (US)

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COUPLES WEEKEND GETAWAYSCOUPLES WEEKEND GETAWAYS

small groups - informal

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The Extended Family(Inter-generational)

Corporate teams

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Feel the Beat!Feel the Beat!Feed the Soul.

Nourishment & Nutrition!Chef’s Choice

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Understanding and OpportunityMaking meaning from our experiences!

The Experience Profit Cycle

Adapted from: Voss, C. (2003). London Business School

Invest in and manage the destination

InnovationManage the

visitor experience

the destination and experience

Memorable visit, vibrant environment,

anticipation

Increase the length of Visit and expenditure

Marketing & Create a

Increase profitand partnerships, word of mouth, repeat visitation

Marketing & promotion buzz

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Sustainability, Climate Sustainability, Climate Change & TourismChange & TourismChange & TourismChange & Tourism

All graphs created and provided All graphs created and provided through the courtesy of through the courtesy of

Dr Daniel ScottDr Daniel ScottDr. Daniel Scott, Dr. Daniel Scott, Canada Research Chair in Canada Research Chair in Global Change & TourismGlobal Change & Tourism

University of WaterlooUniversity of Waterloo

Make daily choices to reduce Make daily choices to reduce GHG from absolutely GHG from absolutely

everything we do consumeeverything we do consumeeverything we do, consume, everything we do, consume, or create or create

in tourism.in tourism.

Solutions?Solutions?

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What can you do? 8 action steps

1. Continue to adopt conservation practices that reduce energy -less carbon.

2. Keep educating yourselves and your customers about practical solutions to reduce emissions - carbon offsets, carbon footprint, carbon neutral.

3. Deliver your events, facilities and programs with as low carbon emissions as you can.

4 Expand your offer of local foods - Low food miles4. Expand your offer of local foods - Low food miles.

5. Promote self-propelled travel at your facilities. Provide electric scooters, bikes; walk; kayak; canoe.

6. Use, purchase and rent cars that have lower carbon emissions.

7. Invest even more in energy audits, retrofits, and alternative energy for your facilities and communities.

Carbon offsets: Emission reduction credits you purchase from other organizations’ projects to reduce emissions from your

travel.

7. Create experiences in which efforts to deal with climate change are the experiences! Travelers have personal access to climate change and energy experts.

What can you do? 8 action steps

8. Purchase carbon offsets for all ground and air travel, and help your customers to do so. Aventours Adventures (US) now includes the cost of carbon offsets as part of the price for all of its tours to Central America. (Planetair.ca, Less.ca, Zerofootprint.net)

❖ NOTE:

❖ Be ready for the anti-air travel backlash from global markets Have❖ Be ready for the anti-air travel backlash from global markets. Have a plan!

❖ Embrace Slow Travel - It’s all about experiences.

❖ As an industry, become leaders in applying solutions that demonstrate effective reduction in carbon emissions.

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Product Development DaySmall Steps

❖Lunch - featuring local foods. Menu focus.g

❖Very little paper handed out - purposefully.

❖Rental of hybrid cars for facilitators - less fuel, less emissions.

❖Purchase of carbon offsets for return flights.

❖I l di i f ti b t li t h d t i ithi❖Including information about climate change and tourism within our presentations today.

❖Eliminating delegate bags.

❖Online evaluation after workshop - eliminate paper.

❖Car-pooling to come to this conference was encouraged

Graphic Designed by: www.avrilorloff.com

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Rules of Engagement

Set the table!Set the table!One person hold the mementoEveryone is encouraged to contributeConnect perspectivesListen together for insights “Ah-ha’s and Oh’s”3 questions, approx 15 minutes eachShare collective discoveries after coffee break

World Café Questions1 Wh t i i th i d f d h ?1.What experiences in the province are we proud of and why?

2.The year is 2013, what new visitor experiences have been added to Nova Scotia’s inventory?

3.What is needed to build the capacity to develop and deliver bl i it i i b i i ?memorable visitor experiences in your business or region?

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Experiential Tourism Programs and Yield Continuum

$300

T diti l

Diversify Program

Offer

NewProgram Offer 1

NewProgram Offer 2

$ R

even

ue

$75

$150

$225

Traditional Program

Offer

Offer

Type of Program Offer

0

$75

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Thank-you!Nancy ArsenaultNancy Arsenault

Faculty of Tourism and Hotel ManagementFaculty of Tourism and Hotel ManagementRoyal Roads UniversityRoyal Roads UniversityRoyal Roads University Royal Roads University

www.royalroad.ca/tourismwww.royalroad.ca/tourism

nancy.arsenault@royalroads.ca250.391.2600 ext 4424

1.866.241.0674

CelesCeles DavarDavarEarth Rhythms Inc. Earth Rhythms Inc.

wwwww earthrhythms caw earthrhythms cawwwww.earthrhythms.caw.earthrhythms.ca

celes@earthrythms.ca204.848.4680

1.888.301.0030