Download - 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)


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%


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


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


Niche Markets Most Likely to Grow in the Future


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

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

https://www.facebook.com/ASTATravelSense

https://www.facebook.com/AmSocTrvlAgents

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.

mailto:[email protected]