In a February 23rd article in USA Today it was reported that some families will cut back on or cut out some of their summer vacations. Prediction is that overall spending will be down 10% this summer. This is obviously bad news when you consider that hotels are already feeling the sting of lowered occupancy, ADR and RevPAR.  Consultants D.K. Shifflet & Associates and IHS Global Insight report that Americans may spend 9.7% less on leisure travel in April, May and June, and 9% less in July, August and September than in 2008.  So this was the bad news of my day...

After anxiously awaiting the weekly pace reports on our clients, studying the booking pace overlayed with online marketing and advertising campaigns I realized that we were hitting the mark and we were affecting bookings. In fact, the good news is that according to STR report we are actually increasing occupancy, ADR and RevPAR, and most importantly we are beating our competitive sets in all of our destinations.  For the month of January that is not bad.  February is strong and March looks really good.  So why am I surprised?  I am not really.  Although there is a 10% drop in travel, that still leaves 90% of the pie in tact. I also beleive that this is one of the best opportunities we could ever have to take brand share away from competitors. In our destination clients we are doing just that.

So the bad news is that 2009 will be harder to make the numbers than 2008, but then 2008 was a banner year.  The good news... it can be done.

till next time

Leah

BTW, please give me some time to answer your emails.... I am swamped and know that I am behind a bit. I do like hearing from you all. : )

A major protest against Facebook erupted last week after a change in the company's "terms of service" was reported in a blog. The blog pointed out that new language in the user policy gave Facebook legal rights to Facebook member’s content, including photos.

Members inundated the company with thousands and thousands of “hate mail” about the change. Users were irate that Facebook was now claiming ownership to the consumer generated content in the community. In the same week Facebook realized that they had made a mistake. They changed the policy back.

Consumers have adopted their right to post comments and photos, videos, etc. on community sites, travel sites, blogs, twitter and more. Social commentary is influencing people as they make buying decisions and we as marketers realize how important this content is. In reality this is their content, we are only visitors as marketers.

When thinking about advertising on social marketing platforms or in communities we really have to be careful about how we do that and not violate the trust or the “culture” of the social media. If you really want to reach out to these communities, do it the way you go to a party… don’t just burst in the room and into an ongoing conversation announcing “I am here and I have something to say!”. Move into the room and conversations by respecting what is already going on there and make sure you are contributing in some way… humor, advice, etc.

As marketers we have great tools to work with online. We have to respect the community that makes it all possible.

You can get details of this story in the Mercury News http://www.mercurynews.com/peninsula/ci_11736943

Till next time…

Leah

As we have always preached to our clients and in our numerous speaking engagements around the world, Search Marketing (SEOM) is a critical component of your online marketing. Today it has become the foundation of tourism online marketing. Case in point is that around 80% of consumers use search engines to find a web site. With that said, consider that Google is now testing a new wiki that customizes search for consumers so that they can delete key word ads or rearrange organic listings according to their preference. Google debuted SearchWiki, which enables users to actually move search results either up or down... a great feature for consumers, but marketers who have not been focused on search must pay attention.

Google searchwiki might be used to audit a users modifications or reordering of search results, resulting in a community sharing of this informatin with other users of the same interest. Already Twitter users share news about new apps, new links to view, etc. It makes sense that consumers with like interests would want to share.

As I talk to hundreds of travel and tourism marketing executives I stress the importance of the SEOM tactics and the ongoing Strategy for their Search program. Search is very likely the best way to generate qualified web traffic to your site and your eCommerce during this uncertain economy. Organic and paid; a balance of both. If you are tracking which key words (organic or paid) are actually responsable for booking conversions you know if your budget spend is on target. Or you need to continue to fine tune your approach to gain better and better results with conversions. 

This new accouncement/wiki from Google will be interesting to watch. They get it right.

till next time...

Leah

The new stimulus package is indeed good news if it passes. The $789 billion bill appears to have a real chance for quick passage and be a major boost to travel marketer's outlook for spring and summer tourism. Travel marketers are holding their breath.

My phone is ringing like crazy with prospective USDM.net new clients who are companies searching for more results-oriented marketing and advertising programs. I hear the constant complaint that what they did last year is NOT working this year. I also had a conversation with one of the leading executives at PhoCusWright and shared with him that it would be helpful for them to supply all of us with some research data that is almost on the fly... this market is so fluid.

I still believe that companies and organizations have to virtually start over with their 2009 travel marketing approach. This is a totally different environment than most companies have ever dealt with. Even 911 did not have the potential longstanding consequences. But, there is also opportunity in all this. I know that there will be a thinning out of companies that are not strong marketers or those that pull in and are afraid to or cannot afford to market and advertise. I have already seen this with our clients like hotels and resorts doing much better in a destination than their competitors. Market share and brand share will go to the aggressive companies in this economy and those will emerge as real giants in 2010.

Like one of my best friends said to me yesterday... don't sweat the small stuff. Just do what you do and it will all work out well. I believe what she says and I will add to that; you also have to stay strategic and fluid... be ready to turn on a dime when the wind changes. I believe that change is in the wind and it will be good.

keep your fingers crossed that we get the good news on this bill before week's end.

Leah

U.S. Government Regulations and the Threat for Travel Industry

Earlier this week, the U.S. Treasury Department announced new regulations for recipients of funds from the Troubled Asset Relief Program (TARP). In addition to executive compensation limits, the department will require the Boards of Directors of those recipient corporations to adopt a company-wide policy on expenditures related to, among other things, conferences and events.

This will have global ramifications on the travel industry and specifically the destination marketing industry. As a long time advocate of Destination Marketing Organizations I am concerned over the numbers of conferences that have cancelled due to fear of the media outcrys of corporate waste and abuse. The fact is that business travel is a necessary occurrance for companies and organizations. So how do we deal with this issue that keeps growing every day?

Companies who are planning conferences or incentive trips must make sure that their goals for the conferences are clearly stated and that these goals become part of the mass communications about the event. Conferences have suffered from the economy already in that participants are very budget constrained. Now companies must also be aware of the media implications of attending an event that is for pleasure and not commercial necessity. As for incentive travel or conferences, we all know that compensation for a job well done comes in many forms, and studies show that rewarding hard work by cash bonus is not as effective as incentive travel. If we start to limit these compensation tools we undermine the commercially reasonable ways that we have always done business.

Excess is wrong. Using taxpayer money to give bonus pay is wrong. But we are in an industry where millions of hard working people are trying to make the best of this economic situation. The DMOs (destination marketing organizations) have to weather this economic storm, and the hotels need to retain group business that they so desparately need. The leaders and CEOs of these destinations are facing some of the most critical times of their careers. As a travel marketing company for more than 25 years offline and 15 years online, what I see is alarming. We need to work together.

Leah