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Experiential Travel:
Differentiating Your Destination While Spreading
           the Benefits to Communities

                               January 10, 2012




                       Sustainable Travel International
                               Webinar Series
Sustainable Travel International
STI’s forward-thinking solutions strengthen the positive impacts of
   tourism worldwide, with a clear focus on the bottom line for
                  businesses and destinations.

  We look forward to working with you in 2012 and beyond!




                 Leave the World a Better Place®
Program Overview
• Destination Stewardship

• STEP: Education & Eco-Certification

• Carbon Management

• Philanthropy Development

• Partner Program

• Sustainable Travel Leadership Network

• Marketing & Communications
2012 Overview

• Refining our offerings and
  creating next generation tools
• Delivering increased value
  and quality results
• Advancing the sustainable
  tourism movement
• Expanding our global impact
Destination Stewardship
                        Overview

• Share in STI’s innovative and
  strategic suite of sustainability
  solutions
• Connect with destination
  stakeholders across the tourism
  value chain
• Work with STI’s special advisors
   • Identify priority issues
   • Develop practical solutions
   • Foster a collective vision
Destination Stewardship
                     The STI Approach

• Assessment and Roadmap

• Green Communities

• Education & Monitoring

• Sustainable Futures
Your Speakers Today!
Judy Karwacki (MA, MBA)           Nancy Arsenault (Ph.D.)




         www.smallplanet.travel   www.tourismcafe.org
Experiential Travel:
The Defining Global Trend
Experiential Travel


             Photo Credit: GMIST      Photo Credit: Celes Davar        Photo Credit: Experience PEI




Engages visitors in a series of authentic, memorable travel activities,
revealed over time, that engage the senses, are inherently personal
and makes connections on a physical, emotional, spiritual,
intellectual or social level.

                                    Source: Nancy Arsenault (2004). Packaging Experiences.
Experiences can be big and small!
An exciting gastronomic adventure exploring the
       delectable and varied world of Vietnamese cuisine
       A journey that takes in 'must see' sights of Vietnam while tantalising the
               taste buds with some of south-east Asia's finest cuisine.
Highlights (10 days/9night):

• 3 Cooking classes including full day with local celebrity
chef
• Chef-led visit to a Fish Market and cruise on a local drift
boat
• Prepare and dine on a traditional ‘Royal Dinner’
• Learn Relaxing Tai chi in a park in Saigon
• Visit renowned Mai Gallery and private meeting with
owner Doung Tuong, who translated for Jane Fonda during
her visit to Hanoi during the war
• Interpretive walking tour of Hanoi’s Ancients Quarter
• Farewell Dinner at the legendary Hanoi Press Club
Explore multiple ethnic communities and discover their
        cultural and ethnic expressions in dress and textiles
      This is an extraordinary, close up journey into the communities where
       we meet the people and artisans who create visual masterpieces.


Highlights (10 days/9 nights):


• Learn of the Indigenous Textile Traditions of Oaxaca
• Meet weavers and coops in remote communities to learn
of their unique traditions in weaving and dress
• Travel with the purple Murex dyers of the coast to see how
they extract this scarce purple dye
• Learn about the history and evolution of "traje" from the
Isthmus of Tehuantepec
• Meet weavers and dyers from Teotitlan del Valle who
continue to develop their ancient traditions
How is it Different?
    “A tourism Product is what you buy ...

A tourism experience is what you remember. “




                                Photo Credit: Theresa
                                       Storm
The Experience Economy
                                            Authors: Joe Pine & James Gilmore (1999)
    Greater
Differentiation

 Higher Yield
                                                                                       Transformation


                                                               Experiences


                                         Services

                                 Goods                              ROE drives value pricing
Undifferentiated
                   Commodities             • WOW Guest Experiences
  Lower Yield                              • Good Partnerships
                                           • Word of Mouth and Word of Mouse


                             Value of Economic Progression
Agri-Touism
    Greater
Differentiation

 Higher Yield
                                                        Great Canadian
                                                         Kitchen Party
                                                          (Experiences)

                                            Wine
                                           Tastings
                                           (Services)

                                 Bottled
                                  Wine
                                 (Goods)
                    Grapes
Undifferentiated   (Commodity)

  Lower Yield                                                    Inniskillin
                                                            http://www.inniskillin.com



                                     Value of Economic Progression
Differentiating   with
                  Experiences
Step 1:
Know your customer
Step 2: Know your community
         and region
Step 3: Think about experiences that make sense
                for your business




                         Photo:
                        Fairmont
                        Empress
Step 4: Choose a theme or story




 http://www.northernedgealgonquin.com/bike-train.html
Step 5: Plan the experience ...
           in detail!
Step 6: Establish the flow with
         the itinerary
Step 7: Select partners, suppliers and
        experience providers
Step 8: Think about market
        positioning




             Photo Credit: Travel Alberta
Step 9: Set the selling price


       Cost-based Pricing                      Value-based Pricing
Fixed Costs (e.g. rent,                  Fixed Costs (e.g. rent,
                                   $25                                      $25
overhead, HR, insurance)                 overhead, HR, insurance)
Variable Costs (e.g. guide fees,         Variable Costs (e.g. guide fees,
                                   $20                                      $20
fuel, F& B, momentos)                    fuel, F& B, momentos)
                    Total Costs    $45                       Total Costs    $45
Profit Margin @ 30%                $14   Profit Margin @ 30%                $14

                  Selling Price    $59   Value added @ 20%                  $9

                                                            Selling Price   $68
Step 10: Marketing and
         communications




 Photo Credits:
Canadian Tourism
  Commission




                   Photo Credit: Olivier Bekaert
Step 11: Prepare the team
 and pilot the experience




        Photo Credit: Kevin Loughlin
Step 12: Deliver and
evaluate the experience!




    Photo Credit: New Brunswick Tourism Parks and Recreation
Marie France Doucet, General Manager
Le Pays de la Sagouine, New Brunswick, Canada



                                “Getting the
                                 community
                                 involved in
                               tourism instills
                              community pride,
                                particularly in
                             small rural areas.”
Download your
                                                                       FREE
                                                                    toolkit today
                                                                 compliments of the
                                                                 Canadian Tourism
                                                                    Commission


                                                                            Authored by:
                                                                        Dr. Nancy Arsenault




English:     http://en-corporate.canada.travel/resources-industry/toolkits

Francaise:    http://fr-corporate.canada.travel/ressources-industrie/boites-a-outils
Q & A and Wrap-Up: Keep In Touch!

     For more information,
including proposals and pricing:

           Call Us:
+503-488-5500, +44-780-221-3931

          Email Us:
 jeremys@sustainabletravel.com

       Find Us Online:
    sustainabletravel.com
www.responsibletravelreport.com
facebook.com/sustainabletravel
         @STI_travel
Webinar Follow Up
                  Help us serve you better

• Next webinar: STEP Dive Center Standard
  January 25, 9am PST/12pm EST

• Presentation and audio recording will be
  made available via email shortly after the
  webinar

• Feedback Survey – please help us improve
  our educational offerings. No more than 5
  minutes of your time!

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The Experiential TRAVEL

  • 1. Experiential Travel: Differentiating Your Destination While Spreading the Benefits to Communities January 10, 2012 Sustainable Travel International Webinar Series
  • 2. Sustainable Travel International STI’s forward-thinking solutions strengthen the positive impacts of tourism worldwide, with a clear focus on the bottom line for businesses and destinations. We look forward to working with you in 2012 and beyond! Leave the World a Better Place®
  • 3. Program Overview • Destination Stewardship • STEP: Education & Eco-Certification • Carbon Management • Philanthropy Development • Partner Program • Sustainable Travel Leadership Network • Marketing & Communications
  • 4. 2012 Overview • Refining our offerings and creating next generation tools • Delivering increased value and quality results • Advancing the sustainable tourism movement • Expanding our global impact
  • 5.
  • 6. Destination Stewardship Overview • Share in STI’s innovative and strategic suite of sustainability solutions • Connect with destination stakeholders across the tourism value chain • Work with STI’s special advisors • Identify priority issues • Develop practical solutions • Foster a collective vision
  • 7. Destination Stewardship The STI Approach • Assessment and Roadmap • Green Communities • Education & Monitoring • Sustainable Futures
  • 8. Your Speakers Today! Judy Karwacki (MA, MBA) Nancy Arsenault (Ph.D.) www.smallplanet.travel www.tourismcafe.org
  • 10. Experiential Travel Photo Credit: GMIST Photo Credit: Celes Davar Photo Credit: Experience PEI Engages visitors in a series of authentic, memorable travel activities, revealed over time, that engage the senses, are inherently personal and makes connections on a physical, emotional, spiritual, intellectual or social level. Source: Nancy Arsenault (2004). Packaging Experiences.
  • 11. Experiences can be big and small!
  • 12. An exciting gastronomic adventure exploring the delectable and varied world of Vietnamese cuisine A journey that takes in 'must see' sights of Vietnam while tantalising the taste buds with some of south-east Asia's finest cuisine. Highlights (10 days/9night): • 3 Cooking classes including full day with local celebrity chef • Chef-led visit to a Fish Market and cruise on a local drift boat • Prepare and dine on a traditional ‘Royal Dinner’ • Learn Relaxing Tai chi in a park in Saigon • Visit renowned Mai Gallery and private meeting with owner Doung Tuong, who translated for Jane Fonda during her visit to Hanoi during the war • Interpretive walking tour of Hanoi’s Ancients Quarter • Farewell Dinner at the legendary Hanoi Press Club
  • 13. Explore multiple ethnic communities and discover their cultural and ethnic expressions in dress and textiles This is an extraordinary, close up journey into the communities where we meet the people and artisans who create visual masterpieces. Highlights (10 days/9 nights): • Learn of the Indigenous Textile Traditions of Oaxaca • Meet weavers and coops in remote communities to learn of their unique traditions in weaving and dress • Travel with the purple Murex dyers of the coast to see how they extract this scarce purple dye • Learn about the history and evolution of "traje" from the Isthmus of Tehuantepec • Meet weavers and dyers from Teotitlan del Valle who continue to develop their ancient traditions
  • 14. How is it Different? “A tourism Product is what you buy ... A tourism experience is what you remember. “ Photo Credit: Theresa Storm
  • 15. The Experience Economy Authors: Joe Pine & James Gilmore (1999) Greater Differentiation Higher Yield Transformation Experiences Services Goods ROE drives value pricing Undifferentiated Commodities • WOW Guest Experiences Lower Yield • Good Partnerships • Word of Mouth and Word of Mouse Value of Economic Progression
  • 16. Agri-Touism Greater Differentiation Higher Yield Great Canadian Kitchen Party (Experiences) Wine Tastings (Services) Bottled Wine (Goods) Grapes Undifferentiated (Commodity) Lower Yield Inniskillin http://www.inniskillin.com Value of Economic Progression
  • 17. Differentiating with Experiences
  • 18.
  • 19. Step 1: Know your customer
  • 20. Step 2: Know your community and region
  • 21. Step 3: Think about experiences that make sense for your business Photo: Fairmont Empress
  • 22. Step 4: Choose a theme or story http://www.northernedgealgonquin.com/bike-train.html
  • 23. Step 5: Plan the experience ... in detail!
  • 24. Step 6: Establish the flow with the itinerary
  • 25. Step 7: Select partners, suppliers and experience providers
  • 26. Step 8: Think about market positioning Photo Credit: Travel Alberta
  • 27. Step 9: Set the selling price Cost-based Pricing Value-based Pricing Fixed Costs (e.g. rent, Fixed Costs (e.g. rent, $25 $25 overhead, HR, insurance) overhead, HR, insurance) Variable Costs (e.g. guide fees, Variable Costs (e.g. guide fees, $20 $20 fuel, F& B, momentos) fuel, F& B, momentos) Total Costs $45 Total Costs $45 Profit Margin @ 30% $14 Profit Margin @ 30% $14 Selling Price $59 Value added @ 20% $9 Selling Price $68
  • 28. Step 10: Marketing and communications Photo Credits: Canadian Tourism Commission Photo Credit: Olivier Bekaert
  • 29. Step 11: Prepare the team and pilot the experience Photo Credit: Kevin Loughlin
  • 30. Step 12: Deliver and evaluate the experience! Photo Credit: New Brunswick Tourism Parks and Recreation
  • 31. Marie France Doucet, General Manager Le Pays de la Sagouine, New Brunswick, Canada “Getting the community involved in tourism instills community pride, particularly in small rural areas.”
  • 32. Download your FREE toolkit today compliments of the Canadian Tourism Commission Authored by: Dr. Nancy Arsenault English: http://en-corporate.canada.travel/resources-industry/toolkits Francaise: http://fr-corporate.canada.travel/ressources-industrie/boites-a-outils
  • 33. Q & A and Wrap-Up: Keep In Touch! For more information, including proposals and pricing: Call Us: +503-488-5500, +44-780-221-3931 Email Us: jeremys@sustainabletravel.com Find Us Online: sustainabletravel.com www.responsibletravelreport.com facebook.com/sustainabletravel @STI_travel
  • 34. Webinar Follow Up Help us serve you better • Next webinar: STEP Dive Center Standard January 25, 9am PST/12pm EST • Presentation and audio recording will be made available via email shortly after the webinar • Feedback Survey – please help us improve our educational offerings. No more than 5 minutes of your time!