Expecting different results – and doing something different
Last month we reported encouraging results from the STS/SMITH Road Ahead research project. Fewer members report declines in tourist volume than we might have expected, and the declines reported were much less severe.
Even more encouraging was the outlook members foresee for 2010. Most expect the turnaround to begin here and now.
Bringing about that bright future means facing some facts, though. Here’s how members are responding to the impact of doubt on their budgets – how they’re reporting to their funding sources to build confidence – and how, more and more, the database is becoming the front-end of marketing rather than the back-end.
Members stood strong
STS members reported much better results in 2009 than the travel industry as a whole. More than a fourth said tourism increased in 2009. Fully one-third said visitor volume was level, or declined less than 5%. Behind these results we see that STS members are in many cases destinations on the upswing, still developing their respective brands and attractions. Members tend to be early adopters of solutions, focused on finding answers.
Budgets not devastated, just realigned
Although a little less than half the reporting members said their budgets had declined in 2009, fully 35% saw no change - - and almost one in five saw their budgets increase. Responding to a more cautious visitor, our members tended to limit expenditures on their own travel, attendance at trade shows, conventional media and outside marketing firms and agencies. (Attendance at the Spring Meeting in Nashville was exceptionally strong nevertheless – knowledge is still a priority.)
At the same time, spending on Web enhancements and database marketing has increased. The most successful members see their leads as more than a request for a visitor guide. They are banking them, segmenting them and communicating with them on a regular basis.
Reporting on revenue to protect funding
Members still show room for improvement in speaking the language of their funding sources. While 75% report total inquiries, 70% report total visitors and 52% report hotel occupancy – only 35% of members who responded to the survey say they report on the REVENUE generated by their marketing efforts. STS is emphasizing this bottom-line language in its strategic plan and encouraging members throughout the region to make economic impact the theme of their conversation with civic leaders, constituents and funding sources.
It was striking to hear in the halls of the Spring Meeting how far we still have to go to attain the understanding that tourism is not only a real industry, but also one that is vital to the health of our towns and counties. Even “famous” resorts still struggle with a tendency on the part of government to overlook the hard dollars of direct and indirect salaries, business revenues and local taxes we contribute to our communities. Without this understanding, our budgets are fair game for funding projects that might appear more urgent.
No time to hunker down
Expert speakers at the STS Spring Meeting in Nashville sang harmony to many of the themes that we heard in the Road Ahead research.
Phil Bruno said this in his presentation, "Engaging The New Value Seekers":
Sounds a lot like our leading members and the industry experts are on the same page. We love it when a plan comes together!