Understanding Niche Travel from an Agent’s Perspective
32
1 Understanding Niche Travel from an Agent’s Perspective ASTA Webinar – April 30, 2014
-
date post
21-Oct-2014 -
Category
Travel
-
view
191 -
download
0
description
Becoming a niche travel expert can be a great way to expand your business. ASTA reached out to our membership to find out what the top niches were from a sales and a client-base perspective. We asked how agents became an expert in that niche and which niches they expect to grow in the future. Agents also told us the marketing techniques that were most effective for their niches.
Transcript of Understanding Niche Travel from an Agent’s Perspective
1
Understanding Niche Travel from an Agent’s Perspective
ASTA Webinar – April 30, 2014
2
Covered in this Webinar
© ASTA 2014
Top Niches
Niche Sales and Size
How Niches Are Marketed
Most Lucrative Niches Currently and in the Future
Marketing Tools Provided By ASTA
Finding ASTA data
3 © ASTA 2014
Top Niches
4
73% of Agents Report That Niches Are Important to Their Business
Most Important Niche Market(s)
ALL Respondents
Most Important Niche Market(s)
ALL Respondents
Cruise (Ocean) 32% Religious/Pilgrimage 3% All-Inclusives/Resorts 26% Culinary 2% Luxury 21% Gay & Lesbian (LGBT) 2% Tours 14% Senior/Mature Adults/Disabled 2% Group 13% Meetings/Planning Events 2% Destination Specialist for One Country, Region or City 13% Student/Youth 2%
Cruise (River, Canal) 12% Asian-Americans 1% Destination Weddings and Honeymoons 10% Hispanic-Americans 1% Disney 10% Nature/national parks 1% Family/Multi-Generational 8% Volun-tourism 1% Managed Corporate Travel 7% Green/Sustainable Travel 0.3% Un-Managed Corporate Travel 6% Medical 0.3% Cultural, Heritage & Educational 6% Spa/Fitness 0.3% Adventure 5% African-Americans 0.0% Safari 5% NA - Leisure Generalist Only 27% Incentive Travel 3%
© ASTA 2014
5
Top Niches Are as Expected When Sorted By Agency Type
Top 20 Niches Only ALL Respondents
Independent Agent (incl. ICs)
Retail Leisure Agency (70%+)
Corporate Agency (70%+)
Cruise (Ocean) 32% 46% 28% 4%
All-Inclusives/Resorts 26% 23% 29% 13%
Luxury 21% 21% 22% 25% Tours 14% 15% 15% 0% Group 13% 10% 14% 21% Destination Specialist for One Country, Region or City 13% 15% 14% 8%
Cruise (River, Canal) 12% 15% 13% 0% Destination Weddings and Honeymoons 10% 7% 13% 0% Disney 10% 11% 10% 0% Family/Multi-Generational 8% 11% 9% 0% Managed Corporate Travel 7% 0% 2% 54% Un-Managed Corporate Travel 6% 3% 2% 33% Cultural, Heritage & Educational 6% 6% 5% 0% Adventure 5% 5% 5% 0% Safari 5% 5% 5% 0% Incentive Travel 3% 1% 4% 8% Religious/Pilgrimage 3% 3% 2% 8% Culinary 2% 4% 2% 0% Gay & Lesbian (LGBT) 2% 2% 2% 4%
© ASTA 2014
6
Hawaii, Europe, Italy and UK Top Niche Destinations
Top 20 Niche Destinations % Share of Responses
Hawaii 8% Europe 5% Italy 5% United Kingdom 5% France 3% Ireland 3% Mexico 3% New Zealand 3% South Pacific 3% Australia 2% Austria 2% Caribbean 2% India 2% Scotland 2% South America 2% Southeast Asia 2% Sri Lanka 2% Switzerland 2% Walt Disney World/Orlando 2% Africa 1%
© ASTA 2014
52 separate destinations were listed as a niche destination.
7 © ASTA 2014
Niche Sales and Size
8
Some Agencies Very Dependent on Niche Sales
Niches Extremely
Important (more than 75% of sales)
Niches Extremely
Important (more than 75% of sales)
Hispanic-Americans 50% Incentive Travel 18%
Asian-Americans 50% Tours 17% Religious/Pilgrimage 44% Disney 16%
Un-Managed Corporate Travel 44% Meetings/Planning Events 14%
Student/Youth 40% Adventure 13%
Senior/Mature Adults/Disabled 33% Culinary 13% Destination Specialist for One Country, Region or City 30% Family/Multi-Generational 12%
Group 29% Cruise (River, Canal) 10%
Cultural, Heritage & Educational 28% Green/Sustainable Travel 0%
Safari 27% Gay & Lesbian (LGBT) 0%
Luxury 26% Medical 0%
Destination Weddings and Honeymoons 25% Volun-tourism 0%
Managed Corporate Travel 24% Nature/national parks 0%
All-Inclusives/Resorts 22% Spa/Fitness 0%
Cruise (Ocean) 20%
© ASTA 2014
9
Sales Importance Varies from Niche to Niche
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Extremely Important (more than 75% of sales) Very Important (50% - 75% of sales)Important (25% - 50% of sales) Moderately Important (10% - 25% of sales)Not Important (less than 10% of sales)
© ASTA 2014
10
Business Decision Primary Reason for Many Agencies in Choosing a Niche
Personal interest/passion of myself or other staff person
Business decision based on the market
Started after myself and/or other staff received a
"certificate"/completed a course
Green/Sustainable Travel Medical Student/Youth
Meetings/Planning Events Spa/Fitness Hispanic-Americans
Volun-tourism Asian-Americans
Nature/national parks Culinary
Gay & Lesbian (LGBT)
Disney Volun-tourism
NA - Leisure Generalist Only
Cultural, Heritage & Educational
© ASTA 2014
11
Involvement is Based on a Variety of Reasons For Most Niches
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
OtherStarted after myself and/or other staff received a "certificate"/completed a courseBusiness decision based on the marketPersonal interest/passion of myself or other staff person
© ASTA 2014
12
Small Client-Bases Is the Norm for Most Niches 1-500 clients 500-1,000 clients 1000 - 5,000 clients
Culinary Senior/Mature Adults/Disabled Volun-tourism Green/Sustainable Travel Religious/Pilgrimage Hispanic-Americans Medical Gay & Lesbian (LGBT) Managed Corporate Travel Meetings/Planning Events Spa/Fitness Safari Adventure Cultural, Heritage & Educational Family/Multi-Generational Disney Cruise (River, Canal) Luxury Nature/national parks Un-Managed Corporate Travel Tours Destination Weddings & Honeymoons All-Inclusives/Resorts Cruise (Ocean) Incentive Travel Group Student/Youth Destination Specialist
© ASTA 2014
13
Client-Base for Most Niches Is Small with Some “Large” Exceptions
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1-500 clients 500-1,000 clients 1000 - 5,000 clients 10,000 + clients
© ASTA 2014
14 © ASTA 2014
How Niches Are Marketed
15
Word-of-Mouth Top Marketing Method for Niche
88%
39%
34%
28%
23%
12%
10%
6%
22%
4%
0% 25% 50% 75% 100%
Word of Mouth/Referrals
Social Media (facebook, linkedin, twitter, etc.)
Community Groups (church, clubs, civic organizations)
Print Ads
Consumer Shows/Expos (Wedding Expos, NY Times…
Blog
Consumer Social Media (join online consumer-based…
Banner Ads
Other
NA - Do market niche expertise
Top Methods for Marketing Niche Experience
© ASTA 2014
Top Marketing Methods for General Agency Marketing Customer referrals Networking Direct Mail Website (agency's own site) Open house/Mixer at agency Seminars/Presentations at retirement homes, clubs, etc. Local events (bridal shows, festivals) Email marketing Print advertising - local Yellow pages - print Source: ASTA Marketing & Customer Retention Report
16
Methods of Marketing Shift Based on the Niche
82%
61%
60%
59%
20%
20%
0%
0%
0% 50% 100%
Community Groups (church, clubs,civic organizations)
Word of Mouth/Referrals
Social Media (facebook, linkedin,twitter, etc.)
Print Ads
Consumer Social Media (join onlineconsumer-based groups)
Consumer Shows/Expos (WeddingExpos, NY Times Show, Travel…
Blog
Banner Ads
Top Methods for Marketing to Hispanic Travelers
80%
61%
39%
34%
32%
11%
7%
5%
0% 50% 100%
Word of Mouth/Referrals
Community Groups (church, clubs,civic organizations)
Social Media (facebook, linkedin,twitter, etc.)
Print Ads
Consumer Shows/Expos (WeddingExpos, NY Times Show, Travel
Adventure Show, etc.)
Blog
Banner Ads
Consumer Social Media (joinonline consumer-based groups)
Top Methods for Marketing to Destination Niche
© ASTA 2014
17
Print Still Very Popular Vehicle For Agencies
Most Effective Marketing Vehicle % Share of Responses
Most Effective Marketing Vehicle
% Share of Responses
Print Ads (newspaper, church bulletins, yellow pages) 15% Online Ads (including Google Adwords) 2%
Direct Mail 11% Customer Relations (contact with current clients) 1%
Website 9% Flyers 1% Emails 9% TV/Radio Commercials 1% Sales Calls 8% Newsletter 1% Community Involvement (clubs, chamber, networking, booth, fairs) 5% Display Ad at Agency (sign, window display) 1%
Social Media 3% Billboards 1%
Facebook 3% Bridal Shows 0.3% Phone calls 2% Blog 0.3% Events (cruise nights, open houses, presentations) 2% Wrapped vehicle 0.3%
Consortium Marketing 2%
© ASTA 2014
18
Half of Agencies Have a Marketing Plan – Real Advantage for Those That Do
40%
11%
21%
20%
9%
0% 20% 40% 60%
Yes, a general plan
Yes, a plan with specific targets
No, but will develop a plan in the future
No, do not see the need
NA - not applicable to business model
Agencies That Have or Have Not a Marketing Plan for Their Niche(s)
© ASTA 2014
Marketing Plan Addresses Niche Marketing Specifically
% Share of Responses
Yes 71% No 29% Note: Asked only of those who indicated they have a plan
19 © ASTA 2014
Most Lucrative Niches Currently and in the Future
20
Luxury, All-Inclusives and Cruise (River & Ocean) Considered Most Lucrative
Most Lucrative Niche for Agencies % Share of Responses Most Lucrative Niche for Agencies % Share of
Responses
Luxury 14% Gay & Lesbian (LGBT) 1% All-Inclusives/Resorts 11% Africa/Safari 1% Cruise (River, Canal) 11% Senior/Mature Adults 1% Cruise (Ocean) 10% Europe 1% Groups 7% Disney 1% Weddings/Honeymoon 7% Hawaii 1% Tours 6% Cultural, Heritage & Educational 1% FIT 4% Australia/South Pacific 1% Family/Multi-Generational 4% Medical 1% Managed Corporate Travel 3% Religious/Pilgrimage 1% Destination Specialists 3% Asian American 0.4% Adventure 3% Dive Travel 0.4% Managed Corporate Travel 3% Motorcoach Tours 0.4% Luxury Cruises 2% Nude resorts 0.4%
© ASTA 2014
21
Agents Expect Strongest Growth for Luxury, River Cruises, Family and Multi-Generational Niches
Niche Markets Most Likely to Grow in the Future
% Share of Responses
Niche Markets Most Likely to Grow in the Future
% Share of Responses
Luxury 11% Gay & Lesbian (LGBT) 3%
Cruise (River, Canal) 9% Incentive 3%
Family 6% Senior/Mature Adults 2%
Multi-Generational 6% Cultural 2%
All-Inclusives/Resorts 5% Destination Weddings 2%
Adventure 4% Exotic 2%
Group travel 3% Managed Corporate Travel 2%
Cruise (Ocean) 3% Tours 2%
Active seniors 3% Medical 2%
© ASTA 2014
22
Marketing Tools Provided by ASTA
© ASTA 2014
23
Reinvigorating Your Sales Force & Planning Marketing
Sales & Marketing Course
© ASTA 2014
24
Pushing Consumer Traffic to your TravelSense Profile
TravelSense.org per month Visits 66,082 Unique Visitors 31,313
© ASTA 2014
25
Facebook Messaging - Share on Your Facebook Page
© ASTA 2014
https://www.facebook.com/ASTATravelSense
https://www.facebook.com/AmSocTrvlAgents
26 © ASTA 2014
Finding ASTA data
28
YouTube http://www.youtube.com/user/astasvideos
© ASTA 2014
30
Dateline ASTA Weekly
© ASTA 2014
31
My Upcoming Webinars - Consumer Research
May 21, 2014 Webinar - Messaging for Targeted Marketing to Consumers 2pm ET
June 11, 2014 Webinar - Understanding Business Travelers Who Use Travel Agents, Those Who Don’t and Those Who Plan to in the Future
2pm ET
July 16, 2014 Webinar - Understanding Consumers Who Travel: A Demographic Overview of Known Travelers in the U.S. 2pm ET
© ASTA 2014
32 © ASTA 2014
For Follow-up Questions: Melissa Teates 703-739-6983 [email protected] You can also contact me on LinkedIn.
