“This could be the greatest time for travel businesses to reinvent themselves.” With IPW in Washington, D.C. just seven weeks away, every sector of the tour and travel industry faces significant challenges stemming from the current global political climate and a strong U.S. dollar. In this environment, NAJ’s Inbound Report called upon a panel of thought leaders representing a cross section of the to ask them for their comments and ideas on how the plan to adjust their marketing strategy in this era of a strong U.S. dollar and sensitivity to the USA’s new Administration.
Q: “How does the US politically sensitive environment and exchange rate change your International sales tactics?” Answers were as follows. (Some responses have been edited for the sake of brevity.)
- “While cyclical trends affecting travel intentions and expenditures in different world regions can lead to mixed results on a country level, the overall international market still increased over past performance in 2016. Therefore, we aim to amplify the diversity of our international market mix through a number of tactics including out-of-home media, social media, tourism trade events and conferences, global communications, marketing partnerships, and more.”—Fred Dixon, president and CEO, NYC & Company
- ‘We are more than ever looking for avenues that will allow us to communicate the open and welcoming nature of Houston. Public relations and social media outreach efforts are key to our efforts. In terms of the exchange rate, we are focusing on value. Houston has always been an affordable destination and that matters more than ever now.”—Jorge Franz, senior vice president of tourism, Visit Houston
- “We tend to concentrate on the positive that the guest receives value for their money by staying at the Hotel Beacon. For example one of the things we offer is free Wi-Fi throughout the hotel, and we have kitchenettes in all of our rooms and suites.”—Tom Travers, general manager, Hotel Beacon, New York City
- “In 2016, New York City had the lowest crime rate on record and there were again no major terrorist incidents. …People need to be clear about the Trump Administration’s travel ban proposals. If implemented, it would affect an infinitesimally small percentage of the world’s population. We are open and welcoming to the rest. This is our message.”—M. Elaine Kellogg, executive director, business development, Gray Line City Sightseeing New York
- “If anything, it has made us work harder and invest more in our key international markets. We also rely on our international office representatives to provide us with market intelligence so we know how to best communicate our messages.”—Rafael Villanueva, senior director of international sales, Las Vegas Convention and Visitors Authority
- No matter the scenario, as tourism industry professionals, our job is to double down, step up to the plate and make sure the customer experience is as welcoming as possible. The exchange rates have been affecting the business for quite some time. A shrinking dollar means a higher demand for value and additional reasons to justify their expenditure on a unique experience. Our marketing budgets have become more fluid so we can respond to opportunity. The rules are different. With any revenue generating touch point – from front desk to sales and marketing must be empowered to enhance conversions.”—Robert Graff, vice president of marketing, Papillon Group
- The exchange rate is by far more topical and important to their travel interests and options. Now, more than ever, we need to be present in key markets to protect our market share and to make sure everyone realizes the USA and our destinations are open for business and travelers are welcome. Day-to-day life hasn’t changed and visitors have more options and experiences than ever before. It is more often value for the experience than value for the dollar.”—Brian Said, vice president, global development, Choose Chicago
- “ We will continue to focus on the abundance of choice for all budgets to address exchange rate concerns along with the variety of affordable activities: a day at the beach, a museum visit, a signature food truck experience, to name a few. The silver lining to the current exchange rate is that our resources go further in many of our key international markets, which allows us to do much more in promoting Los Angeles as a premier travel destination.”—Kathy Smits, vice president, tourism, Los Angeles Tourism and Convention Board
- “At the current time, the Florida Keys & Key West tourism council has not made any changes to its international marketing strategy. We continue to monitor indicators, but key international markets–especially Germany–are strong and do not seem to be impacted.”— Stacey Mitchell, director of sales, Florida Keys and Key West
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Q: How have you adjusted your marketing to communicate a positive message to international trade?” Answers were as follows.
- “With recent events related to the two proposed travel bans and surrounding rhetoric, we have launched the ‘New York City – Welcoming the World’ campaign and messaging. The campaign, valued at $3 million (USD), landed in the UK in March, and later in spring it will be seen in Germany, Spain and Mexico..”—Fred Dixon, president and CEO, NYC & Company
- “We are back to basics. In my opinion, face to face contact matters more than ever right now.” —Jorge Franz, senior vice president of tourism, Visit Houston
- “We really haven’t adjusted our message to international travel trade. We are simply reinforcing the message above and asking our partners to clearly communicate these accurate and positive points to their clients. —M. Elaine Kellogg, executive director, business development, Gray Line City Sightseeing New York
- “We have stayed on the message that NYC is a safe and great place to visit.”—Tom Travers, general manager, Hotel Beacon, New York City
- “We haven’t adjusted our messaging all that much. Las Vegas is a welcoming destination and we continue to promote our brand promise of Adult Freedom, where you can escape reality and partake in whatever that phrase means to you. It is also a place where you can get the most bang for your buck and our value proposition still resonates well with the international audience. Las Vegas is an escape and the gateway to the many national parks. All of these messages continue to be strong today.” —Rafael Villanueva, senior director of international sales, Las Vegas Convention and Visitors Authority
- “Organizations have seats or rooms to fill, revenue managers have to adjusting pricing based on demand. When demand is weak, that means every hotel can drop their price. This is where relationships come to play and the sales and marketing role becomes even more critical. Companies need to provide flexibility, value, encourage advance and pre-bookings and provide operators with targeted promotions and specials. This could be the greatest time for travel businesses to reinvent themselves. Smaller, nimble and responsive companies will benefit the most.“ —Robert Graff, vice president of marketing, Papillon Group
- “We highlight value for money, that we are open, welcoming and now is a great time to visit. Many markets are enjoying amazing airfares and long haul carriers are helping mitigate the exchange rate fluctuations. Travelers are savvy and have access to information that can help them find ways to still take a trip within their budget by taking advantage of pubic and often free activities, bundled attraction passes that provide savings, travel in shoulder periods, connected yet diverse neighborhoods, etc to maximize their time. Once in Chicago, travelers are delighted to find that they are in a major American City with a variety of experiences thus providing more value.” —Brian Said, vice president, global development, Choose Chicago
- “We have not adjusted our marketing to the trade at this point. What we have begun to do is speak directly to our elected officials to make sure they realize the economic impact that international visitors bring to Corning and the Finger Lakes, and that replacing these visitors is not likely, or even desirable. I do reach out directly to the international trade partners to ask if there are any opportunities that CmoG can take advantage of in partnership with them. We all want to succeed in this challenging time, and we can only do it by working together.” —Sally K. Berry, tourism sales and marketing manager, Corning Museum of Glass
- “Los Angeles celebrates diversity and rolls out the red carpet for visitors and this will not change. Residents hail from 180 countries and speak more than 220 languages in our city; we come from everywhere and welcome everyone. Our President & CEO Ernest Wooden Jr. captured this sentiment and expressed his gratitude to our travel trade partners in a personal video message that we shared across our key international markets. Our trade partners are instrumental in promoting L.A. globally and we wanted to ensure this message was effectively communicated. Our international offices and representatives continue to work closely with the industry to promote L.A.’s most defining features: creativity, openness, variety and diversity.” —Kathy Smits, vice president, tourism, Los Angeles Tourism and Convention Board
- “Our international messaging has and will always be positive. Florida Keys travel points focus on the convenience factor for a subtropical islands vacation that can easily be reached via major U.S. international airports. We also highlight the more laidback atmosphere of the Keys and how longer vacations can be easily paired with major attractions in Orlando, or other Florida destinations, for operators seeking diversified sun vacations for their clients.” — Stacey Mitchell, director of sales, Florida Keys and Key West
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And this: After answering the two questions, Robert Graff e-mailed us from his cell phone with this quick after-thought that is worth mentioning: “An increase airline capacity to the USA, combined with Low airfares, are also helping us keep USA vacation cost in check.”
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