Incentives for Travel — Good Idea or Bad?

Feb 22, 2021 | Tourism, Travel

We have written two previous blogs encouraging communities to find ways to make travel and tourism part of the economic recovery in 2021. Our rationale in those earlier blogs was not to offer loans or grants to tourism businesses, although they have certainly been hit hard and deserve some relief. We want to see more travel. We want shops, museums, inns, restaurants, outfitters and hotels to thrive from serving more visitors than ever before. Make the economy work for them better and stronger than ever before.

In those earlier blog posts, we called upon communities to invest in their tourism economy by getting behind their local Destination Marketing Organization and increasing funding not decreasing it. In most cases tourism marketing budgets are dependent on lodging taxes, which have been weak during the pandemic. We continue to believe that the cities, towns and counties who zig when everyone else zags, and find a creative though temporary way to boost tourism marketing will reap the benefits.

Recently we read about another way that one destination is supporting its tourism economy — by paying people to travel. It’s a stimulus plan worth considering. The Falkland Islands is encouraging domestic travel by offering vouchers up to 500 pounds (more than $650 US) per adult and 250 pounds for children.

Could this idea work in the United States? Every time the government offers a stimulus plan, they hope citizens will spend it on retail or travel. Often recipients use it to pay down debt. Why not offer an incentive to travel? Whether it’s a direct payment like a voucher or a tax deduction. It would make a powerful impact on the economy, but the benefits of travel go far beyond economics, which makes the case for an incentive even more compelling.

• Travel brings people closer together — friends, couples, families, even multiple generations of family — through shared experiences and memories.

• It’s always a learning experience. Even if the itinerary doesn’t seem educational like visiting museums, people still learn just by being on the road. They learn about geography by getting a firsthand look at different landscapes or grasping the distances between places; and history by understanding how a place was influenced by it settlers, location and events.

• It fosters understanding between people of different cultures and backgrounds.

Anything that encourages travel sounds like a decent idea to us. What do you think? Would you travel within the U.S. if offered a voucher or a tax deduction?

Now is the time to invest in tourism marketing

May 6, 2020 | Advertising, Tourism

A few weeks ago in this space, we published a post titled “Make Tourism Part of the Comeback.” I think a lot of people interpreted it as a gentle reminder, “Hey, don’t forget about travel and tourism.” Readers not in the tourism industry probably thought of the blog as a suggestion to use their wallets to help businesses by returning to travel as soon as they were comfortable with it. That’s a great thing to do, but I think it’s time for bolder action.

I want to be clear on exactly what we meant in the original post. Now is not the time to cut spending on destination marketing. Unfortunately, in many cases, DMO budgets are directly tied to lodging tax collection, which has obviously come to a screeching halt. So, that’s the end of the story? Wrong. We’re calling on community leaders to be bold, forward thinking and creative. Find a way to invest in tourism marketing now in order to hasten your community’s recovery. There are endless stories around the country of politicians trying — and too often succeeding — in diverting lodging taxes that should be used for tourism promotion to some other pet project when times are good and money is flowing in. Isn’t now the right time to turn the tables and let funds flow to tourism instead of away from it?

Tourism marketing is not like most other line items on a budget. It’s an expense that is also an investment. Tourism is a revenue generator. Travelers not only fork over money to businesses and attractions that desperately need it (who then put it to good use providing jobs), they also deposit money directly into local tax coffers including lodging, sales, meals, gas and, in some cases, ticket taxes. When things are going well and the economy is humming along, local elected officials are in love with tourism and very happy to have that tax money.

We are in the midst of a major economic crisis right now. The road back to prosperity is not going to be easy or quick. The communities that are wise enough to invest in marketing at a time when others are slashing the marketing budgets will come out ahead in the long run.

Brands Matter More Than Ever

Apr 21, 2020 | Advertising, Branding, Tourism

The combination of a strong brand and effective marketing are more important than ever as destinations emerge from the coronavirus pandemic. To be clear, it really mattered before the crisis hit. This situation has turned a lot of things about life in America completely upside down, but it has actually clarified the role of brands and marketing. The good news — for some destinations — is that destinations that have a solid foundation of good branding and marketing are in a position to recover faster.

Keep in mind that a strong brand and excellent marketing are related but definitely distinct things.

• A destination’s brand is what people think of the place whenever they are reminded of it. It’s a set of emotions. It can’t be completely controlled but it can be strongly influenced. What makes a branding effort successful is understanding what makes a place special and using every opportunity to portray it truthfully to the public.

• Marketing is heavily influenced by the brand strategy. At a bare minimum, it steers the message so that it speaks about the destination’s strengths in a way that appeals to the most likely target audience. Ideally, everything about the marketing is creative and professional. Plus, the marketing plan should be balanced and robust. It’s building brand awareness and engaging people all the time in as many ways as possible. Marketing is the necessary hard work — the muscle, if you will — that pushes the brand in front of people.

Why do we say that both are more important than ever as we emerge from the coronavirus disaster?

There are well-know benefits to having a strong brand, including:
– Recognition and recall — That will be helpful as consumers have been temporarily focused on other things, like childcare, working from home, providing their family with the basic necessities.
– Trust — It’s earned over time by being honest, consistent and familiar to consumers

The benefits of investing in high-quality, aggressive marketing are:
 – Awareness — Which is typically considered the first level of the marketing funnel. The simple truth is, having more consumers in any stage of the marketing funnel puts a destination in a better, competitive position to convert them to visitors quickly when people begin traveling again.

Make Tourism Part of the Comeback

Mar 28, 2020 | Advertising, Tourism

No industry will be unaffected by the COVID-19 Pandemic. Some will experience setbacks and others will be utterly devastated. Many of our clients are in the tourism and hospitality sector so we are keenly attuned to that industry. There is no way to sugarcoat it – They are being hit very hard. You don’t have to work in tourism to know that. It’s been widely covered in the media.

Not only does the travel industry support a lot of jobs, it also generates a lot of state and local taxes such as lodging, meals, sales and ticket taxes on concerts and special events. When tourism slows, it impacts the revenue to local governments, which generally run on lean budgets anyway. The ripple effect could be felt by many municipal departments for a long time to come.

The loss of tourism-generated revenue should serve as a stark reminder of not only the good times when people were vacationing and hotel occupancy was good, but of how there is always room for improvement and growth. The travel and hospitality industry that has been so hard hit also has the potential to play a huge role in the recovery. Entire communities are suffering economically. Now, more than ever, tourism promotion needs to be viewed as an investment and not merely another line-item expense on a municipal budget. The communities that understand that will reap the rewards.

Kudos to Jackson Hole, Wyoming

Dec 26, 2019 | Advertising, Campaigns, Skiing, Travel

I have always liked out-of-home advertising because it offers such a great opportunity for creativity. Some out-of-home options like billboards, busses or metro stations can accommodate larger-than-life, eye-popping ads.

A campaign for Jackson Hole, Wyoming, got my attention the other day in an industry e-newsletter. It makes very clever use of the space. It’s more than just a big poster ad. They turned this into a mini experience that is sure to be a conversation starter and maybe even a selfie opportunity. Sitting on that bench/chairlift with that awesome image of the Tetons in the background — most likely while you’re in the midst of your daily commute — surely makes a skier or snowboarder think, “I gotta get out of Chicago and go there.” Heck, I’m thinking that just from reading the article in my office in Virginia.

Even though out-of-home advertising results are difficult to track, this campaign reinforces something we have preached for many years. Great advertising — which means creative messaging, strong imagery, and clever use of whatever medium you happen to be working within — moves consumers through the sales funnel at lighting speed. Whereas, lame creative work doesn’t inspire anyone to take action. Weak advertising moves people through the sales funnel at a glacially slow pace, like waiting in a long lift line at a crowded ski resort.

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