Research on Minnesota's tourism market segments reveals key information on important market segments, trends in travel, changing Minnesota demographics, the state of sustainable practices in tourism businesses, & Minnesota tourism's perspectives on invasive species
West North Central US: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota
Our state tourism office has done a wonderful project researching tourism market segments, so I am going to stand on the shoulder of a giant and share with you some of the highlights from the project.In January 2012, the state tourism office reached out to adults living in Minnesota, Wisconsin, Iowa, North Dakota, Illinois, Missouri, Colorado, Michigan, and Winnipeg (Manitoba, Canada) and asked them to complete an online survey. Altogether, more than one thousand adults completed the survey, generating a lot of information to work with.
The information revealed that there are six major types of visitors.Sun seekers: this segment skews slightly female and least likely of all segments to be residents of Minnesota. They are also the least likely to have ever travelled to Minnesota and have interests in travelling to Minnesota in the future. As their name indicated, this segment identifies warm weather as one of the top factors that influences their choice of travel destination.Guided guys: This segment skews younger and male. They are the most likely of all segments to have young children at home. This segment also has more negative perceptions of Minnesota than the overall average.Thrifty traditionalists: this segment skews female and are highly educated. As the name indicates, they are thrifty when it comes to leisure travel spending—this group has the lowest average spending among all segments. They are also among the least likely to visit Minnesota in the next year.Family folks: this segment skews older and male. They are also among the most likely of all segments to live in Minnesota. This segment also has an average leisure spending lower than the overall average. They look for excellent hunting and fishing when choosing a travel destination.
Have graduated from college
Cultural explorers:Want to be entertained and enriched—need to emphasize to them that your resort is where they can get away from their stressful lives and let life come to themSpontaneous adventurers:Look to enjoy different activities and engage in a wide range of experiences when having the opportunity —show them the diversity of culture and nature, let them know what your resort and the surrounding area have to offer in terms of activitiesLike to take short getaways and do things “spur-of-the-moment”, so communicate that your resort is the perfect place for a weekend/long-weekend getaway
Indeed, adventurers had higher participation in activities while in MN
SO, resort is an important element, BUT these travelers may not know about our resorts, or, may not perceive our resorts to be so. In fact,, when developing the 2020 vision in 2009, our state tourism office gathered tourism businesses in the state to brainstorm the kinds of things that need to be offered to travelers in the coming years. One of the common theme that came up during the brainstorming is “new and upgraded lodging accommodations—including resorts—that offer the quality and amenities today’s travelers look for”!
Online resources:Use search engines such as Google—Appear on Google key word searchesUse lodging websites—Build and maintain your official websiteOfficial state tourism agency website—are you on there?Websites where people post reviews of hotels, restaurants, etc.—are you on there?Travel portal sites (e.g., Expedia, Travelocity)—are you on there? Own a smart phone—not necessarily to develop an app (expensive!), but at least, have a mobile site
Now that we know who they are, their interests in and likelihood of traveling to Minnesota, their average spending on leisure and spending trend, their approaches to life and travel, what they look for when they travel, their images of Minnesota, where Minnesota resorts are in the picture, and where they are in the digital world, let’s do some reflection and activity! First, I want you to pull out a pen and a piece of paper. And then, I want you to decide which segment, cultural explorers or spontaneous adventurers or BOTH, that your resort wants to attract, for the sake of this activity. After making the choice, I want you to think through four aspects: what strengths that your resort already has in terms of attracting the market segment—for example, you have a wonderful website, what weaknesses that your resort needs to address or overcome in order to attract that market segment—for example, you want to update that visitors’ guidebook but still haven’t yet, what the opportunities are for you to attract that market segment—for example, you have miles of bike trails close to your resort, and what you think are the threats that you face to attract that market segment—for example, invasive species.How can you use your strengths to take advantage of the opportunities that you have?
By saying connectivity, it certainly includes mobile devices and social media, but the word “connectivity” is more than these. Today’s visitors start their experience well before checking-in at your property. At the trip planning stage, people use multiple channels to gather information. They talk to their families and friends for suggestions and tips; they use destination websites; and believe it or not, they still pay attention to magazine ads and articles, particularly women! According to the Meredith group, an effective magazine ad does not jam as much information as possible into that small square of paper. Instead, think through and then settle on one key message and get this message front and center clearly. Use visuals, because photos reveal more than a thousand words!During the trip, people LOVE connectivity in hotels. Do you offer wireless Internet connection? How is cell phone signal on your property? When people travel, more than a third of them use the Internet to research nearby attractions, eateries and activities. And here is where mobile devices are playing a big role. We all know that developing an app can be expensive, and in fact, not every business needs an app. But it is critical that you have a functioning and easy to navigate mobile website. People open Safari on their iPhone or Chrome on their Android devices, and expect to find and enjoy a user friendly mobile website. So if nothing, create as good a mobile website as your regular website.Now, where is social media? Let me divide social media into two parts. The first part is travel review sites, including Trip Advisor and Yelp. Do people use these sites at the planning stage? Yes, they do, but these are one of the several channels that they use. However, at the post-trip stage, when people are so eager to share, particularly if the trip is not so great, all of a sudden, these travel review sites and their equivalent, become dominant. Remember, magazines and destination websites are all one-way streets. These media outlets communicate TO consumers, but consumers do not have a way to communicate back. And so travel review sites fill the void and give consumers a platform on which they can have a voice. The similar pattern applies to the second type of social media--Facebook, Twitter, and their equivalent. Their importance at the planning stage is actually quite small, but at the post-trip stage? They are important. With the word connectivity and the various channels that consumers use, it is clear that today’s marketing involves a suite of tools and methods. This can be challenging, even daunting, from time to time. But always revisit the basics when it feels overwhelming: 1. What is my key message? 2. Am I using the right channels to get to my target audience? 3. Am I engaging my audience on the channels that I use?
The activities that visitors can do in the local communityThe natural beauty that the local community boastsThe local food!
Cultural explorers—the name already tells itSpontaneous adventurers—interested in historical sites and placesCulture includes not just historical places, but also modern spaces, in a nut shell, unique, once in a life time cultural experience
http://www.youtube.com/watch?v=1QDxcqco2M8Let the experts from the Brookings Institution, an independent think tank, give us a high-level summary (stop at 1:15)
In 2005, about 86% of the state population was non-Hispanic White alone. By 2035, about 75% of the state population will be non-Hispanic White alone. So the majority of the state population will still be non-Hispanic White by 2035, but the size and the proportion of the minority population will be larger.In addition, the non-Hispanic White population will be much older, given the large number of aging baby boomers and the slow growth of children population. On the other hand, the Hispanic, African American, and Asian population will be much younger, reflected in the number of families with kids younger than 18 years old living at home.
Another important aspect is where the minority population live. By 2035, about two-thirds of the Hispanic population, 83% of the African American population, and 82% of the Asian population will live in the Twin Cities Metro area. Why is this important? Well, let me ask you two questions. First, how many of you see the Twin Cities as one of the major markets? Second, how many of you do advertising that reaches the Twin Cities market?The demographic changes are already underway. The demographic landscape changes gradually, rather than overnight. However, when you do your strategic planning, which entails a longer-term view for business development, it is a good idea to keep the shifting demographics in mind.
In the 2020 vision, the environment was listed as a key aspect of the tourism industry, along with business operation, tourism product, marketing, and transportation. The importance of the environment to the tourism industry in Minnesota is undeniable. The bounty of beautiful lakes, rivers, forests, prairies, parks and other natural areas in our state is a great appeal to travelers, who enjoy these natural areas not just for their scenic views but also for the recreational opportunities they offer. Therefore, I believe it is proper and important to make the environment the last part of my talk today.
Ask the audience to answer each of the eight statements
Ask the audience to answer each of the eight statements
Lastly, I want to bring to your attention to the services that the Tourism Center and our colleagues at University of Minnesota Extension can offer you. For example, our colleagues did a study of the lodging sector in Chisago County. By doing zip code analysis, the study showed that the County is a short trip destination for couples and families from the Minneapolis-St. Paul metro area. In addition, there is real room to build greater demand and sales for existing accommodations in the County before developing new lodging facilities. In 2013, another study was conducted for the lodging sector in Murray County. The study found that there isn’t sufficient market to support a new hotel although there might be some demand for local meeting and banquet space.