SustainableTourism: Travel

& Trends

Kurt Kutay, President

Today’s Presentation

• Adventure Travel Trends• The Geotraveler as Awakening Consumer• Wildland Adventures brand research• WA Customer survey and profiles• Industry trade associations

Sources: George Washington University, Xola Consulting, Adventure Travel Trade Association, Mercury PR

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What is Adventure Travel?What is Adventure Travel?

• Adventure travel is more than challenging adrenaline sports

• Today’s adventure traveler seeks a mix of activities that enable authentic, un-manufactured experiences

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• It’s resilient when other sectors flux… and rebounds faster

• It’s bigger than most people realize- so it has real impact US$52B

• It’s a driver of economic development where it’s often needed most- It’s the life system for rural areas, supporting multiple cottage industries.

• It’s transformative and turns customers into passionate advocates for conservation and community support.

• And because it’s focused on nature, culture and rural economic development, it affects the triple bottom line of people, planet and profit

Why It Matters…

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65% of US citizens with passports live on the east or west coast in mostly urban areas.

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• More wealthy • Better educated

• Very well traveled• Share their travel experiences

The North American Geotraveler

58 M “Awakening Consumers”

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• Importance of “green” products & services: Sustainable Tourism

• ”Enlightenment”…more informed views emerging on sustainability, climate change, reduce-reuse-recycle, …

• Changing personal and household consumption spending patterns + economic uncertainty = saving for “experiences”

• Drastically altering media consumption habits driving quest for personal observations and global experiences

• Shifting more toward global travel and “adventure” for holidays

• Increasing personal and family emphasis on health, wellness and recreation – all while time starved

Awakening Consumer Lifestyle Values

Adventure Travel Trends: Macro• Soft and luxe• Less distinctions between adventure travel and

mass tourism� Migration of traditional leisure and luxury

travelers toward the “adventure” travel spectrum� Importance of sustainable tourism: culture,

environment, traveler philanthropy• Rapidly urbanizing world, emergence of “return

to the farm”

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Adventure Traveler Trends: Micro• Comparison shopping• Pricing pressures: sell experience, not price• Book last minute• Peer review and social networking tools• Well educated and knowledgeable travelers

want custom trip with personalized experiences:“The criteria for excellence in our profession have changed from knowing the product to inventing the most profound and valuable benefits that travel can provide; from knowing the market to knowing the individual client; from knowing what the individual client wants; to knowing what the individual client should want.” Michael Kaye, Costa Rica Expeditions 9

“The criteria for excellence in our profession have changed from knowing the product to inventing the most profound and valuable benefits that travel can provide; from knowing the market to knoknow what the individual client should want.”

Geotravelers value authentic immersion in places and cultures.

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• Experience local culture and support local business

• Learn about daily life, esp. indigenous• Try local foods• Trip not damage environment• Protect and preserve history, culture,

environment• Willingness to pay, including opportunities to

give back

Sustainable tourism alone is not sustainable

• Requirements of a vibrant sustainable destination or business is not just a matter of how it is sustainable and marketed

• Sustainability is not a primary factor in a traveler’s purchasing decision.

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No confunda su pasion para turismo sostenible con la del viajero.

”Los empresarios están enamorados de sus ideas, y deberían estarlo; después de todo, por qué alguien dedicaría toda su energía, ahorros de toda la vida, y parte de su sanidad, a menos que se trate de una intensa pasión. Debido a que los empresarios son apasionados por sus ideas, productos, o servicios, asumen inocentemente que otras personas sentirán lo mismo. La mala noticia es que no funciona así!

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Entrepreneur Network

Geotravelers’ criteria for decision to buy a trip.

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• It connects them with a passion• It enhances their life in deeply meaningful ways• It saves them time to plan their vacation• It includes unique experiences could not do alone• It is sustainable…

Sustainability is only one component.

Geotravelers expect sustainability.

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• Sustainability is a cost of entry for many travelers.

• It is a decisive factor in choosing a trip and operator after all services and experiences are prevalent.

• But it is not the primary reason to travel and select a travel provider.

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WILDLANDBRANDING RESEARCH FINDINGS

Wildland TravelersPersonal Discovery

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Elders

Initiation - Shed the Baggage…Find Your Soul

Experiences

Adventure

Authenticity

Fun

Children/Grandchildren

Ritual/Celebration

Membership

Breaking Down Barriers

Learning

Timeless Truths

Transformation

Passion

What matters most

Sustainability

Breaking Down Barriers

• “Dad (our tribal chief) chatted with the chief of the Mogues; they talked about crops, how the two tribes made their way through life...” (panama)

• “...feeling the connections to the people and appreciating the opportunity to give back.”

• “It has made me more aware of what is going on in the world...how even though we may live in different parts of the world, we all have the same common goal...”

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Taking risks, Opening up, Making connections, Trusting self & others, Letting go, Appreciation of others

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The best adventures are not part of the planned itinerary.

Membership

• “Our daughter may have asked, she may have been invited, but she was clearly welcomed by the others.”

• “John learned to milk a cow, discover bones and cook bread with the Massai. He was proud to wait tables with them. He was also asked to jump with them at evening campfire.”

• “My son helped with the hunt and shot the bow and arrows.”

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Earned, Privilege, Deeper connection, Participation, Responsibility & stewardship, Indelible bonds, Shared values

Timeless Truths

• “We had experienced a million year old lifestyle.”

• “I often look back at the Maya as living life in the original condition.”

• “It was incredible to witness a ritual that had no doubt been happening for thousands of years.”

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Connection between past & present, Roots, Essence of what it is to be human, Continuity,Inter-generational

Transformation

• “I no longer thought in terms of myself...I saw myself as part of a larger thing.”

• “I had such a feeling of acceptance for the situation and a deep inner peace....it was unexplored terrain but I was willing to try.”

� “..to remember we can always help others, learn from others and use WA to create a better world.”

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Life altering, Spiritual growth, Deep understanding, Finding my true self, A new perspective, Awakening, Fundamental change

WA Brand

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• Facilitates deeply personal journeys of discovery

• It’s about people, customer relationship and making new friends traveling, more than places or wildlife

• It’s as much about the small things & the details as it is the big stuff

• Strong spiritual element to WA

WA Brand• Our guests trust us with what matters

most…their precious vacation time• The unexpected & unscripted moments

are usually when the ‘magic’ happens• Guides are hugely important

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The Wild Style

The “Wild Style" de viaje es basado en la sinceridad, la compasión y la comprensión. Trae armonía con la naturaleza y entre gente del lugar y compañeros de viaje que rotas las barreras y las fronteras que separan y dividen para construir durando bonos interculturales, interpersonales y ambientales que aumentan en vez de explota.

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WA ALUMNI ONLINE RESEARCH FINDINGS

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Preferred Style of Travel

Rate the style and purpose of travel that suits you most closely.

• 71% said “small group tours”• 59% said “private custom travel”• 39% said “family adventures”

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Sources for Travel Planning

Indicate how often you use the following list of references & sources to choose a tour company.

• 70% said “word of mouth referrals”• 59% said “internet search”• 58% said “travel guide books”• 49% said “travel review web sites”

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Important ActivitiesWhich activities would be important in choosing your next adventure vacation.

• Wildlife observation/safaris – 88%• Cultural interaction/village visits – 76%• Hiking – 76%• Multiple activities – 69%• Natural history – 67%• Walking – 62%

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Factors in Choosing

Rate relative importance of following factors in choosing adventure company.

• Expertise/experience of guides – 98%• Reputation of company – 96%• Quality of on ground operations – 90%• Experience/expertise of sales staff – 86%• Environmentally/socially responsible – 81%

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CUSTOMER PROFILES

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US Demographic Segments

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Age 14-29

Age 30-45

Age 65 +

Age 46-64

Wildland Travelers

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Age 14-29

Age 30-45:

Age 65 + :

Age 46-64:

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• Easy: easy hikes/walking, wildlife safaris/game drives, family adventures with young kids, small yachts/ships (Galapagos, Turkey, etc)

• Moderate: multi-sport adventures, easy African walking safaris, day hikes, day kayaking, rafting

• Strenuous: extensive walking, Inca Trail and Mountain Lodge Trekking in Peru, Patagonia hiking, Kilimanjaro climb

Wildland Traveler Activity Level

Kelly J. BeardAn AV rated attorney, assigned by Martindale-Hubbell as the highest rating possible. Drawn to law by her passion for justice and fair play. Awards: Weymouth D. Symmes Award for Excellence in Advocacy (1988), the Order of Barristers Award (1988); and the 1987-88 Erasmus Scholar award.

Sent: Saturday, May 02, 2009 9:25 PMSubject: New Info RequestWe're trying to find an eco-friendly trip to the Galapagos islands as a HS graduation gift for our daughter -- so there would be a mix of people in terms of ages and abilities, but all committed to the most eco-friendly trip possible and one that will be remembered for a lifetime.

Kelly Beard: Attorney, with high school daughter, seeking environmentally friendly trip to the Galapagos.

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Dennis is the leader of The Forster Group at Smith Barney. He focuses on estate planning for high net worth families, education funding, endowment management for nonprofits, and strategic consulting to businesses. Dennis is an accredited member of the prestigious CERTIFIED FINANCIAL PLANNER™ Institution. He recently enjoyed his 68th birthday but this veteran financial advisor is not anywhere near retirement! An active member of his community …

From: Dennis Forster, CFP[mailto:dennis.e.forster@smithbarney.com] Subject: RE: Wild Welcome Home!Dear Grettel,Our Wildland Adventure trip to Costa Rica

exceeded our expectations by a huge amount. As you may remember it was a bonding trip for my twelve year old grandson. Life should be an adventure, so I wanted him to have one with me. There was no way the trip could have been better planned, or enjoyed more by its participants. Congratulations to you, and to everyone involved in our "trip of a lifetime".

Dennis Forster: Bonding trip with12-year old grandson on Costa Rica Multi-sport

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Dennis Forster, CFP®Senior VP - Wealth ManagementFinancial Advisor, The Forster GroupSmith Barney, Santa Barbara, CA

Tod HamachekFormer Chairman and Chief Executive Officer, Penwest Pharmaceuticals Company.Served as Chairman and Chief Executive Officer of Penwest Pharmaceuticals Company, Mr. Hamachek served as President and Chief Executive Officer of Penford Corporation, a diversified producer of specialty paper, food starches and pharmaceutical ingredients. He is a director of The Seattle Times Company and The Blethen Corporation (the majority owner of The Seattle Times Company). Member of the board of directors of Virginia Mason Medical Center and Hospital System in Seattle, Washington. Graduate of Williams College and Harvard Business School.

Tod and Barbara Hamachek:Two luxury, custom WA trips with friends to New Zealand and Patagonia.

Our guide, Judy McKenzie, is in a class of her own—extraordinary person doing a wonderful job—she shared “her” New Zealand with us and we loved it!”

Tod

Thomas Freeman, M.D. is the Director of Clinical Research for the USF Dept. of Neurosurgery "Center of Excellence for Aging and Brain repair", and is a national leader in neural transplantation research. Dr. Freeman has worked collaboratively with several other renowned physicians providing the most recent advances in the study of Parkinson's disease. His most current research study is "Lewy body-like pathology in long-term embryonic nigral transplants." Nature Med (in press).

Susan S. Freeman is a Principal with Heads-up Performance, a nationally recognized boutique specializing in executive leadership and transformational change. She was a V.P. with Meridian Partners, a retained executive search firm. She is founding Executive Director of the Tampa Bay Business Committee for the Arts, previously in positions in New York and London at Young & Rubicam and D’arcy, Masius, Benton & Bowles with product launches for Procter & Gamble, General Foods, and Pillsbury. Active in community organizations and on several boards. Ms. Freeman holds an M.B.A. in Marketing from Columbia University and a B.A. in from Wellesley .

Dr Thomas and Susan Freeman:

30th Anniversary 5* Luxury Trip to Peru planned entirely by

Susan.

Dr. Grey is a native New Yorker, born in Manhattan, growing up in the city, Queens, the West Indies, and Westchester. ), she graduated from Tuskegee Institute in 1983, Magna Cum Laude. Dr. Grey has been in private practice for 26 years. She taught veterinary technicians at Suffolk Community College, and has done volunteer work at the Tuba City Veterinary Clinic on the Navajo reservation. She enjoys gardening, working out, cooking (AND EATING) exotic

From: Catherine Grey, DVM[mailto:oakdalecat@mac.com] Subject: RE: Welcome Home!

My guide and I bonded like sisters, and stayed up late talking about everything from men to religion. She was so sweet, and so knowledgeable. And going in to the shops, and bargaining, chatting.....oh I had such fun. I have come to realize just how TOXIC my job and the American (particularly New York ) lifestyle has become..... rush, rush, more, more, bigger, bigger, worry, worry, money, money, money, and all at whatever and whomever's cost).

Dr. Catherine A. Grey, aka Dr. Cat, DVMMedical Director, Oakdale Animal Hospital Traveled solo with Wildland Adventures to Morocco, Egypt, Kenya, Galapagos, Alaska, Madagascar, Peru and Botswana

A Constant Adventure with Unparalleled Opportunitiesby Peter Kaplan This was truly the custom trip of a lifetime! The itinerary was a constant adventure with unparalleled opportunities to experience the Turkish culture, history and archeological ruins, exactly as we had set out to do when we called Wildland. We had extraordinary opportunities to meet local people, to use wonderful local hotels, and we enjoyed so many excellent meals that allowed a full sampling of local dishes and specialties. What really made it for our small group of long-time friends was to make last minute changes to our itinerary that allowed us to tailor the experience as it occurred.

Custom trip planning.

Family Matters

• 39% of guests• 35% of revenue

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Giving Back

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Bringing travelers together with communities and sustainable suppliers.

TOPS: Tour Operators Promoting Sustainable Tourism

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Mas de un vacacion.

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“A viajar es como leer un libro bueno en el que somos los autores, creando nuestras propias historias que permiten nosotros recordar lo que nos hemos olvidado. Ser recordado de que somos, cómo queremos realizarnos en el mundo, lo que es nuestras prioridades para cómo pasamos nuestro tiempo y compartimos nuestra riqueza.”

~Barry Lopez

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Key Marketing Channels

• Wildland website new launch September 2011• Internal sales development and management• E-marketing• Best customers and alumni relations• Partnerships: Trusted Adventures, outdoor retailers,

and affinity groups• Public relations• Brochures, catalogs, print advertising• Online: SEO, social media• Seminars, presentations, trade shows

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