Consumer Mindset Update Travel in Atlantic Canada Atlantic Canada Agreement on Tourism - Actionable Insights for the Tourism Industry

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Consumer Mindset Update Travel in Atlantic Canada Atlantic Canada Agreement on Tourism - Actionable Insights for the Tourism Industry
Consumer Mindset Update
      Travel in Atlantic Canada
Actionable Insights for the Tourism Industry

                Atlantic Canada
           Agreement on Tourism
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Consumer Mindset Update Travel in Atlantic Canada Atlantic Canada Agreement on Tourism - Actionable Insights for the Tourism Industry
OUR GROUP OF COMPANIES

                         ▪   MQO Research is a leading Atlantic Canadian Market
                             Insights company. We believe that market research is a
                             powerful tool when used to inform business and
                             organizational strategies and decisions.

                         ▪   MQO is part of the m5 Group of companies, which also
                             includes m5 Marketing Communications - a full-service,
                             integrated marketing agency with over 35 years of
                             experience and more than 120 employees, making it the
                             region’s largest marketing agency.

                                                                                      2
Consumer Mindset Update Travel in Atlantic Canada Atlantic Canada Agreement on Tourism - Actionable Insights for the Tourism Industry
Share insights on the mindset of Atlantic and
SESSION GOAL   Central Canadians on travel to suggest areas of
               opportunity for future planning.

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Consumer Mindset Update Travel in Atlantic Canada Atlantic Canada Agreement on Tourism - Actionable Insights for the Tourism Industry
INTRODUCTION

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Consumer Mindset Update Travel in Atlantic Canada Atlantic Canada Agreement on Tourism - Actionable Insights for the Tourism Industry
BACKGROUND

The COVID-19 pandemic has had a substantial impact on Atlantic Canadian economies
and the tourism sector in particular.

     What do we need to know and understand about consumers to help
                 navigate the coming tourism season?

                                                                                    5
Consumer Mindset Update Travel in Atlantic Canada Atlantic Canada Agreement on Tourism - Actionable Insights for the Tourism Industry
METHODOLOGY

          n=2,127 residents of Atlantic Canada
          completed the survey

          Data was collected between April 26th
          and May 16th.

              Survey was conducted online

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Consumer Mindset Update Travel in Atlantic Canada Atlantic Canada Agreement on Tourism - Actionable Insights for the Tourism Industry
SUMMER & FALL TRAVEL PLANS

                             7
Consumer Mindset Update Travel in Atlantic Canada Atlantic Canada Agreement on Tourism - Actionable Insights for the Tourism Industry
CURRENT TRAVEL PLANS
Over half of Atlantic Canadians have current plans for summer/fall travel during 2021, those who do
              not have plans cite self-isolation protocols as a large part of this decision.

     55%            Of Atlantic Canadians currently have plans to take a
                    pleasure trip between May and October 2021

     58%            Of those with travel plans will travel within their home province

     71%
                    Say that self-isolation protocols for out-of-region travel have
                    had a “significant impact” on decisions to not make plans.

      .
                                                              ATLANTIC CANADA TOURISM STUDY       8
Consumer Mindset Update Travel in Atlantic Canada Atlantic Canada Agreement on Tourism - Actionable Insights for the Tourism Industry
CURRENT TRAVEL PLANS
                                                 Travel Within My Home Province

                                                 76%
Among those who currently have plans,
Newfoundland and Labrador residents were far
more likely to be travelling within their home
province this coming summer or fall.

                                                        43%

                                                 49%
                                                            55%
      .
                                                 ATLANTIC CANADA TOURISM STUDY    9
Consumer Mindset Update Travel in Atlantic Canada Atlantic Canada Agreement on Tourism - Actionable Insights for the Tourism Industry
CURRENT TRAVEL PLANS:

                                                     Current travel plans are concentrated primarily in
                                                     Atlantic Canada in the months of July and August
       0%
                    0%               0%

                                                                                       26%    28%
                                                    23%                         14%                 13%
        2%                                                                                                 9%
                                                                          5%
                 2%
                         0%      1%
                                               2%
                                          4%                  12%         MAY   JUNE   JULY   AUG   SEPT   OCT

                                                           29%              Current Travel Plans by Month
Outside of Canada
Other International Destination 2%
United States 2%                                    21%

                                                                     ATLANTIC CANADA TOURISM STUDY
                                                                                                                 10
CURRENT TRAVEL PLANS

  Atlantic Canadians plan to take a small number of shorter trips this tourism season.
                                                     .
           25% of travelers will not stay in paid accommodations for all or part of their trip.

           Number of Planned Trips                      Nights Planned for Paid Accommodation
      44%                                               57%
                 33%                                          48%

                                                                       29%
                            12%                                               21%
                                      10%                                             14%
                                                                                               6%

       1           2         3        4+                    1-3            4-7            8+
               Current Travel Plans                               Nights Travelling
                                                                  Nights in Paid Accommodations

                                                                    ATLANTIC CANADA TOURISM STUDY   11
CURRENT TRAVEL PLANS
  The majority of those who may be required to self-isolate upon returning to Atlantic Canada from out-
                     of-region travel still plan to take a trip this coming summer or fall.

              Intentions if Self-Isolation is Required for Out-of-Region Travel

              Would not impact travel plans                                   31%

Postpone travel to later in the summer or fall                          27%

              Cancel travel plans altogether                      22%
                                                                                    Among those who indicated
                                                                                        they would change
              Postpone travel until next year                   20%                 destinations, 28% said they
                                                                                     would travel within their
                  Change travel destinations          10%                             home province instead

                                          DK     4%

                                                                                                                  12
CURRENT TRAVEL PLANS

  35%    Of those who have travel plans within Atlantic Canada had originally
         planned to travel to destinations outside of Atlantic Canada.

                    64%

                                  35%

                                                  2%

                    Yes            No            DK
        Those who would normally travel outside of Atlantic Canada
                      between May and October
                                                                                13
TRAVELLER SENTIMENT

                      14
COMFORT WITH TRAVEL
     Atlantic Canadians are largely comfortable with travel in their community now and are waiting for self-isolation
    protocols to be lifted for travel within Atlantic Canada but require more vaccination progress for other locations.

                                                                                                               Comfortable with this now
    Communities within home province                     58%                    12%   7%        9%        6%
                                                                                           3%        4%
                                                                                                               Once I can travel without having to
                                                                                                               self-isolate on arrival/return
                    Other AC provinces     13%           36%              9%        13%    8%        16%
                                                                                                               Once the destination has gone two
                                                                               5%                              weeks with no cases

Other Canadian provinces outside of AC     9%     20%        8%         20%     11%         30%                Following first dose of the vaccine
                                                                  3%

                                                        5%                                                     Following second dose of the vaccine
                      The United States    8%    15%              17%     9%              42%
                                                             4%
                                                                                                               Once most residents of destination
                                                                                                               have been vaccinated at least once
                                                             3%
        Other international destinations   8%    15%    6%        16%    9%               43%
                                                                                                               Once the destination has achieved
                                                                                                               herd immunity

                                                                                                                                                      15
DECISION-MAKING AROUND TRAVEL
                                                                                                                  % rated 8
                                        Importance of Factors in Decision-Making for Travel
                                                                                                                  or higher
                                        The number of active COVID-19 cases at destination                          85%
                                        Health and safety standards at destination                                  82%
   Atlantic Canadians see factors       Full ticket refund policies for events/activities                           76%
around health and safety as being       Free cancellations for accommodations/transportation                        75%
 most important in their decision-      The number of active COVID-19 cases where I live                            74%
            making around travel,       “Safe and clean” designation for businesses from regulatory body            73%
                                        The extent to which residents of destination have been vaccinated           71%
                                        Knowing if local residents would welcome visitors                           70%
 Flexibility in cancellation policies   Information on cleaning procedures at destination                           67%
   and refunds are also important       Requirement for travellers to provide negative COVID-19 test prior to
                                                                                                                    65%
        when making travel plans.       departure
                                        Information on the ability to maintain social distancing at destination     63%
                                        Number of tourism businesses/attractions open                               62%
                                        Waived booking fees                                                         57%
                                        Discounted travel deals                                                     54%
                                        Availability of digital itineraries for activities/experiences              48%

                                                                 ATLANTIC CANADA TOURISM STUDY, PHASE 3                16
TRAVEL PREFERENCES

                     17
INTEREST IN TRAVEL PACKAGES
There is a moderate level of interest in travel packages, and travellers find knowing costs and what is
                 available to them in the region as most appealing when booking.

                                                                                                              % rated 8 or
                                                       Appeal of Elements for Booking Packages
   Interest in Travel Packages While…                                                                           higher

                                                       Knowing your trip costs up front                          79%
                        53%
      48%                                47%
                                                       Knowing what is open and available in a region
                                                       before visiting                                           78%

                                                       Discounted rates for activities and experiences           72%
                                                       The ability to try something new as part of a travel
Vacationing in AC Vacationing in Visiting friends or   package                                                   58%
                  home province         family
                                                       Having a suggested itinerary of activities to choose
                                                       from                                                      54%

                                                       Having a vacation fully planned out                       45%

                                                                                                                         18
TRAVEL PACKAGE TESTING
                                                                              TOP
                        TOP
                                                                              PICK
       FAMILY COTTAGE   PICK
                               REGIONAL (WINE/BREWERY)    OUTDOOR ESCAPADES
          GETAWAY                       TOUR

                    FAMILY REUNION                GETAWAY WITHIN A
                                                      GETAWAY        TOP
                                                                     PICK

                                                                                     19
TRAVEL PACKAGE TESTING
  FAMILY COTTAGE
     GETAWAY

                    • Families with children
                                                      REGIONAL
                      under 17                   (WINE/BREWERY) TOUR
                                                                       • Couples
                                                                       • Couples travelling with
                                                                         friends
 FAMILY REUNION

                    • Families travelling with
                      adult children
                                                  GETAWAY WITHIN A
                                                      GETAWAY          • Families with children
                                                                         under 12
OUTDOOR ESCAPADES                                                      • Couples travelling with
                    • Solo travellers                                    friends
                    • Couples
                    • Couples travelling with
                      friends
                                                                                                   20
PACKAGE COMPARISON
 The ‘ ‘Family Cottage Getaway’ was most commonly travellers’ number one choice. The Getaway
  Within a Getaway’ and ‘Outdoor Escapades’ were most frequently ranked in the top 3 choices.

                                                                      Spend         Length of Trip       Location
       Package Type                     Travel Party                                                  Home     Other
                                                                 $500-$900 $1200+    1-3     4-7
                                                                                                     Province Province

Family Cottage Getaway       Families w/ children under 17         38%        13%   40%      37%       71%     53%

Family Reunion               Families w/ adult children            36%        13%   43%      29%       58%     55%

Outdoor Escapades            Solo/ Couples/Couples w/ friends      36%        12%   43%      24%       65%     58%

Regional Wine/Brewery Tour   Couples/Couples w/ friends            34%        8%    58%      18%       62%     61%

                             Families w/ children under 12 and
Getaway within a Getaway                                           39%        13%   49%      26%       65%     59%
                             Couples w/ friends

                                                                           ATLANTIC CANADA TOURISM STUDY             21
BUILD YOUR OWN TRAVEL PACKAGE

        Top Five Activity Choices
        Visiting a beach                                       39%
        Hiking or walking                                      29%
        Having a bonfire                                       25%
        Shopping                                               24%
        Going on a tour of a historical site                   24%
        Restaurant/culinary experiences                        23%
        Coastal sightseeing                                    23%
        Music concerts/festivals                               21%
        Visiting wineries or breweries                         21%
        Visiting provincial or national parks                  20%
        Whale watching                                         20%
        Amusement/water parks                                  17%
        Visiting a museum or art gallery                       15%
        Nature observing                                       14%
        Camping/RVing                                          13%
        Sailing/boat tours                                     12%
        Theatre performances/plays                             12%
        Visiting spas or wellness centers                      10%
        Zip-lining/parasailing or other adventure activities   10%
        Golfing                                                10%

                                                                     22
WHAT HAVE WE LEARNED?
   TOP 7 INSIGHTS FROM THE RESEARCH

                                      23
HIGH OPPORTUNITY CLOSE TO HOME
Travellers still want to stay close to home right now, but that doesn’t mean
they don’t want to have leisure experiences.
▪ Similar to other places in the world, our research has shown that Atlantic Canadians
  intend to stick close to home, and the greatest areas of opportunity are
  “staycations.”

▪ Focus on leisure experiences that may not require much time on the road (dining,
  sight-seeing, shopping, spa packages); shorter trips can be built around these
  experiences.

▪ The family cottage style vacation was the most popular for ‘travel within the home
  province.’ Those in the industry may have significant success with local
              consumers in the coming season.

                                                                                         24
INVESTING IN CONSUMER CONFIDENCE
Communicating safety without travellers having to ask, is still important.
▪ To increase travellers’ comfort level, businesses need to be able to effectively communicate
  that health and safety measures are being followed based on provincial reopening plans.

▪ Travellers do not want to have to ask; they want to be sure. Room for doubt will reduce
  participation in tourism.

▪ Collectivist messaging continues to be prominent in Atlantic Canada: highlighting what
  measures are being taken on the operator side, and communicating what visitors should do,
  will fit within the theme of teamwork and togetherness.

               Larger-scale programs for standardizing adherence to health and
               safety measures are one way to make travellers feel safe.

                                                                                                 25
DIGITIZED EXPERIENCES
Businesses across industries have found novel ways to move into online
spaces. Consumers will appreciate digitized options within tourism now and
in the future.
▪ Travellers are comfortable booking or ordering online, and are interested in digital
  travel packages and itineraries.

▪ Consumers will expect and appreciate uptake of digitized experiences within your
  operations – something we’ve already begun to see in other locations regardless of
  public health concerns.

              There are lots of options for digitizing offerings, including mobile food
              ordering, online events, and self-guided tours on mobile apps.

                                                                                          26
FRIENDS AND FAMILY FIRST
Having friends and family to travel with has been consistently top-of-mind
In previous research when we asked Atlantic Canadians what they missed the most about attending
events, the majority said they missed having experiences with friends and family.

▪   Visiting friends and family was a top mention of pre-planned travel prior to the closure of the
    Atlantic Bubble.

▪   As confidence in the safety of travel continues to improve and restrictions loosen, messaging
    around reunions may be especially effective.

                 There may be opportunity to incentivize inviting friends and family to
                 visit when possible – prep consumers in the meantime.

                                                                                                      27
HIGH YIELD TRAVELERS

    Opportunities for high end offerings still exist within the local market

   Despite shorter stays being the norm for vacations close to home, around 10% of
travellers would anticipate paying $1,200 + for each of the travel packages presented.

             Highlight unique experiences in Atlantic Canada and promote
             authentic cultural experiences or outstanding natural sights.

                                                                                         28
OUTDOOR ACTIVITIES ARE STILL IN HIGH DEMAND
Outdoor activities are favoured. It may take time for Atlantic Canadians to feel
comfortable engaging in indoor activities post pandemic.
▪ Continue to use outdoor spaces for activities as much as possible.

▪ Explore ways to monetize popular no-cost outdoor experiences, such as visiting
  beaches. How can these activities be built into packages.

▪ Highlight nearby beaches, trails experiences, sightseeing etc.

              There may be opportunity to incentivize inviting friends and family to
              visit when possible – prep consumers in the meantime.

                                                                                       29
REIMAGNING THE TRAVEL PACKAGE
Travellers like knowing costs and availability of activities up-front, but have a
preference for flexibility in all other areas of their experience.

▪ Choose smaller packages that can included in an independently planned trip

▪ Build choice and flexibility into packages

▪ Clearly communicate cost and savings

               Build smaller travel packages that can be added on to an
               independently planned trip.

                                                                                    30
KEY TAKE-AWAYS

  Flexibility is even more important as provinces start to truly open back up.
  Change is still the reality for this tourism season, but adaptation continues to be possible.
                   ✓    Capture the imagination of Atlantic Canadians

                   ✓    What IS possible?

                   ✓    Shift your offerings to align with the current consumer mindset

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QUESTIONS?

             32
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