ROLE OF RESEARCH IN DESTINATION MARKETING - TTRA International Conference Melbourne, Australia June 2019 Craig Gibbons Regional Director ...
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ROLE OF RESEARCH IN
DESTINATION MARKETING
TTRA International Conference
Melbourne, Australia
June 2019
Craig Gibbons
Regional Director, Australia
Los Angeles Tourism & Convention Board
TRAVEL TRADE
INTERNATIONAL
TEAM STRUCTURE
• Hybrid of dedicated offices and representation
• Team of 28: 13 HQ in Los Angeles and 15
worldwide
• Offices in London, Sydney, Beijing, Shanghai,
Guangzhou and Chengdu
• London overseas representation in Germany,
France, Scandinavia and Gulf/Middle East
• HQ oversees representation in India, Japan, S.
Korea, Canada and Mexico
Los Angeles Tourism & Convention Board 2
WHAT DIFFERENTIATES L.A. TOURISM?
• Thorough Understanding of aviation, travel and international marketing sectors
• Airline Experience working for U.S. and international carriers and direct experience partnering with
airlines
• Collective Marketing Expertise in advertising, public relations/ communications, digital marketing
and travel promotions
• In-Market Experience with understanding of economic and governmental impacts and
regulatory practices
• Based in Key International Markets
Los Angeles Tourism & Convention Board
3
INTERNATIONAL FOOTPRINT Los Angeles Tourism & Convention Board 4
AUSTRALIA TACTICS
• Online Training
• General Tradeshows
• Sales Missions/Road Shows
• E-Communications
• Training
• Familiarization Trips
• Co-Ops
• Individual Tradeshow Support (i.e. Flight Centre)
5
L.A. INSIDER SPECIALIST
TRAINING PROGRAM
• Celebrating 1 Year (launched February 2018)
• English Modules: USA/Canada, Australia, India,
UK/Scandinavia/Middle East (4)
• Translated Modules: Spanish, German, French, Japanese,
Korean China “Angel Academy” – WeChat Platform (6)
• L.A. Insider: 10,191 registered travel trade / 4,700
completed
• 30 sales incentive campaigns since July 2018
Los Angeles Tourism & Convention Board 6
L.A. I n s i d e r – C o m p l e t e d Tr a i n i n g s
(since Feb 2018)
Australia & USA & Mexico Middle East & Korea
New Zealand Canada Scandinavia
France India Germany UK & Ireland Japan
7
LAX
LAWA – LAX MARKETING Los Angeles Tourism & Convention Board 9
LAX MODERNIZATION Los Angeles Tourism & Convention Board 10
ROLE OF RESEARCH IN DESTINATION MARKETING TTRA International Conference Melbourne, Australia June 2019 Wendy Kheel Vice President, Tourism Insights Los Angeles Tourism & Convention Board
VISITOR PROFILES
AUSTRALIA
Market Conditions Changes in Laws/Policies Competitive Landscape
Australians to face new credit lending barriers: • The U.S. remains the #1 long-haul
GDP Forecast – 2.5% in 2019 & 2.5% in 2020
destination for Aust/NZ travelers.
• Australians will find it harder to get a credit
card from 2019, with sweeping changes • CA is facing increasing competitive
Exchange Rate – 1 Aust $ = 0.72 U.S. $ coming into effect to mitigate pressures. Now, LAX & SFO are just two
irresponsible lending. of a number of ports with non-stop
flights available with new gateways
• Under the changes, customers who sign such as Houston & Dallas with other U.S.
up for new cards will have to prove they ports expected to be announced.
can repay the full balance within a three-
year period. • There are now over 25 U.S. destinations
with representation in Australia.
• Experts say the restrictions can help card
users from running into debt but will make • 2018 has seen the re-emergence of the
it harder for new customers to be issued a U.K. & Europe as an increasingly
credit card. competitive threat. With terror levels
subsiding and airline competition
• The latest RBA figures show Australians increasing, the Europe is becoming top
owe a massive $51.5 billion on credit cards of mind for travelers.
Los Angeles Tourism & Convention Board Source: Tourism Economics ;Visit CaliforniaAUSTRALIA
Population Household Income
Population of Select Countries & Cities in 2019 Sydney 2019 Average Household Income $114,700
% of City to
Country & City 2019 Population Sydney Households by Income Band
Country
60% 46% 40%
Total Australia 24,981,000 40% 14%
Sydney 5,309,000 21.3% 20%
0%
Melbourne 5,058,000 20.2% Lower Middle Upper
Sum of Key Cities 10,367,000 41.5% ( < $35k) ( $35k - $100k) ( > $100k)
Other 14,614,000 58.5%
Melbourne 2019 Average Household Income $88,600
Melbourne Households by Income Band
53%
60%
40% 19% 28%
20%
0%
Lower Middle Upper
( < $35k) ( $35k - $100k) ( > $100k)
Los Angeles Tourism & Convention Board Source: Tourism Economics City to City Data, United NationsAUSTRALIA TO THE USA
Travel Outlook Deterrents to Visiting the USA What One Word Best Describes The USA
USA Is Too Expensive - 38.2%
Days Available for Unfavorable Currency Exchange Rate – 30.0%
International Travel 19.3 Better Destinations Exist – 24.1%
Concerns About My Personal Safety in the USA – 23.2%
Most Important Content for I Don’t Have Enough Holiday Time – 17.8%
Destination Decision
Desired U.S. Vacation Experiences
Hotels & Lodging 38.5% Visit Famous/Iconic Landmarks – 67.3%
Sightseeing in Cities – 61.4%
Relaxation – 60.4%
Restaurants & Food 31.1%
Visiting Historical Sites – 58.5%
Desired Lodging Types
Sightseeing Tours 29.5%
Full Service (4 or 3 Star) – 59.4%
Mid-Priced (2 star) – 29.5%
Transportation &
28.9% Bed & Breakfast – 20.2%
How to Get Around
Vacation Home or Apartment – 18.0%
Los Angeles Tourism & Convention Board
Source: Destination Analysts “The State of the International Traveler” May 2018AUSTRALIA TO L.A.
Airlift Visitation
2019 Average Non-Stop Weekly Flights to L.A. L.A. County Visitation
Weekly Year Volume +/- Change % Change
Departing City Weekly Seats
Flights 2017 418,000 -3,000 -0.7%
Sydney 33 10,970 2018 426,000 8,000 2.0%
Melbourne 21 7,230 2019f 438,000 12,000 2.7%
Brisbane 16 4,35 2020f 447,000 9,000 2.2%
Total Australia 70 22,550 2021f 457,000 10,000 2.2%
2022f 472,000 15,000 3.2%
2023f 487,000 15,000 3.3%
2019/18 Seat Capacity Growth – -3.5%
2019/18 Decreased Service – 2019f Australian Visitation by City
- United from Sydney 60% 51%
- Qantas from Melbourne 40% 26% 23%
- Virgin Australia from Brisbane 20%
0%
Sydney Melbourne Other
Source: OAG, Tourism Economics January 2019
Los Angeles Tourism & Convention BoardAUSTRALIA TO L.A.
Demographics L.A. Travel Details U.S. Destinations Visited on Same Trip
Las Vegas 40%
Average Age 37.7
Average Party Size 1.9 San Francisco 32%
New York City 31%
Anaheim 19%
First-Time Visitor to U.S. 33%
Average HHI DC 13%
$104,314
U.S. Average Length 0% 10% 20% 30% 40% 50%
20.7
of Stay Nights
Primary Reason for Recent L.A. Trip Most Popular Trip Months
3% L.A. Average Length 5.5 15.0%
of Stay Nights 9.8% 9.6%
9% 9.5%
10.0%
Leisure
Business Average # of U.S.
3.6 5.0%
Destinations Visited
Other
0.0%
88%
December April June
Los Angeles Tourism & Convention Board Source: U.S. Department of Commerce, NTTO / APISAUSTRALIA TO L.A.
Top Resources Used to Plan Trip Advance Planning for Trip Timing of Booking L.A. Trip (Airline)
< 7 Days 3% < 7 Days 3%
Airlines OTA 8-30 Days 7% Average 8-30 Days 11% Average
52% 47% Planning Time Booking Time
31-60 Days 12% 184 Days 31-60 Days 17% 126 Days
61-90 Days 14% 61-90 Days 16%
Personal Travel
Recommendation Agency > 3 Months 64% > 3 Months 53%
44% 43%
0% 20% 40% 60% 80% 0% 20% 40% 60%
Travel Companions* Modes of Transportation in U.S. Place of Stay
Alone 49%
Spouse/Partner 31% Airlines Taxi/Limo Paid Lodging 84%
64% 48%
Family/Relatives 20%
Friends 8% VFR 16%
Tour Group Ride
1% Subway/Bus
Sharing
Business Assoc. 43%
1% 45%
Mean Nights In Paid Lodging - 4.7
0% 20% 40% 60%
Los Angeles Tourism & Convention Board *Note- The SIAT question asked is “With whom are
you traveling now” which may skew the “Alone” Source: U.S. Department of Commerce, NTTO
and “Tour Group” travel companion responses.FOCUS GROUPS
INTERNATIONAL FOCUS GROUPS
• 2016: Vancouver, Mexico City, London, Sydney, Shanghai and Beijing
• 2018: Delhi, Mumbai and Seoul
• Four groups conducted in each city among Millennial travelers
• Objectives
1. Gauge the mindset of Millennial travelers
2. Explore perceptions of Los Angeles as a travel destination
3. Understand the appeal of visiting Los Angeles
4. Identify communication opportunities for Los Angeles
Los Angeles Tourism & Convention Board 20HOMEWORK ASSIGNMENT Los Angeles Tourism & Convention Board 21
SYDNEY: TRAVEL DRIVERS
• Australians embrace overseas travel – so much to see in the world
– Desire to return to past destinations is limited
– Given the effort, extended long-haul trips and packaging several destinations together is common
• Well-know, iconic tourist attractions are an important part of the trip
– Would be missing out if did not “tick off the list” of certain well known attractions
• Desire to experience a destination as a local does
– Genuine, authentic side of a destination
– A more spontaneous, go-with-the-flow type of experience
Los Angeles Tourism & Convention Board 22SYDNEY: VISITING LOS ANGELES
• Perception of Los Angeles primarily as a collection of things to see and do
– Not quite the “glorified” view that residents of other cities have
– Activities are centered around Hollywood – Universal Studios, Walk of Fame, Hollywood sign
• Belief that Los Angeles is similar to Sydney in many ways
– Same urban outdoors and beaches in Sydney
– Didn’t see Los Angeles as unique as other cities did
• Some things did feel “quintessential” to Los Angeles
– Sun setting over the ocean. Only occurs in Western Australia
– Carefree energy and lifestyle but also luxury, sophistication and indulgence
– Celebrity watching and filming and sports in L.A. such as the Dodgers and the Lakers
– In-N-Out Burgers…and tacos
Los Angeles Tourism & Convention Board 23POLITICAL SENTIMENT RESEARCH
NEGATIVE
SENTIMENT
TOWARDS U.S.
• “America First’ rhetoric
• U.S. – Mexico relations strained
• “Travel Bans” and “Extreme Vetting”
• Anti-immigration stance
Los Angeles Tourism & Convention Board
25WORLD PERCEPTIONS OF TRUMP
Australia India
Source: Survey of International Travelers; Destination Analysts
Los Angeles Tourism & Convention Board 26BRAND USA SENTIMENT RESEARCH • Brand USA monitors visit intent to the US • Those saying US was NOT a likely destination, “current political climate in the USA” was increasingly a reason Los Angeles Tourism & Convention Board 27
L.A. TOURISM SENTIMENT RESEARCH
• Determine and track the attitude towards L.A. among travelers from China, Mexico, U.K, and Australia
– How much influence does the current political climate have on the likelihood to visit L.A.?
• Methodology
– Duplicate Brand USA for comparability
– Online survey of 10 closed ended questions
– N=500 adults 18-54 per country
– Three waves
Los Angeles Tourism & Convention Board 28WAVE 1 BASELINE RESEARCH RESULTS
AUSTRALIA CHINA MEXICO UK
How much influence does the political climate have on your
likelihood to visit Los Angeles?
% Significantly Less/Slightly Less 36% 27% 55% 31%
Based on what you know or have seen, read or heard, how would
you compare Los Angeles, CA to the rest of the USA as a whole?
% L.A. is Much More/Somewhat More Welcoming 49% 71% 66% 44%
Based on what you know or have seen, read or heard, how would
you rate Los Angeles, CA on these attributes
Is culturally diverse: % Completely/Well Describes 64% 78% 78% 62%
Los Angeles Tourism & Convention Board 29“EVERYONE IS WELCOME” VIDEO: V.1 Los Angeles Tourism & Convention Board 30
“EVERYONE IS WELCOME” RATINGS
AUSTRALIA CHINA MEXICO UK
% “Like it very much/Like it” 67% 88% 91% 68%
% “Greatly Improves/Improves” my perceptions of L.A 53% 84% 74% 48%
% “Significantly more/More likely” to visit L.A. 45% 82% 69% 45%
Los Angeles Tourism & Convention Board 31LAX ACTIVATION VIDEO Los Angeles Tourism & Convention Board 32
“WELCOME” INITIATIVE RESPONSE RATE Los Angeles Tourism & Convention Board 33
“EVERYONE IS WELCOME” EVOLUTION:V.2 Los Angeles Tourism & Convention Board 34
DOMESTIC FOCUS GROUPS
• Conducted in February 2019 in New York City and Atlanta to generate feedback regarding the revised
“Everyone is Welcome” campaign
• Results showed that the video reinforced the positive appeal of Los Angeles and visitation intent
• “Everyone is Welcome” campaign was not interpreted as a political message… it is a vacation message
• Conclusion
– Based on the research conducted Internationally and Domestically, marketing will continue to evolve the
“Everyone is Welcome” campaign for the
– Focus groups will be conducted in NYC, Atlanta and Dallas to test new revised version
Los Angeles Tourism & Convention Board 35THANK YOU! Los Angeles Tourism & Convention Board
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