Adventure&emerging markets wtm 2012

Vital Wave Consulting Field Teams

Latin America Argentina Brazil Chile Costa Rica Dominican Republic Mexico Peru

Asia India China Cambodia

Eastern Europe Estonia Uzbekistan Ukraine

Africa Egypt South Africa Nigeria Kenya

Middle East United Arab Emirates

United States California (Headquarters)

“Mainstreaming the Fringe”: Adventure Tourism Trends & Perspectives

for Established and Emerging Markets November 2010

Shannon Stowell Adventure Travel Trade Association

Christina Heyniger Vital Wave Consulting

© 2011 Vital Wave ConsultingTM Proprietary and Confidential: Do not copy or distribute.

ATTA

•  More than 750 members representing 70+ countries- tourism boards, tour providers, etc.

•  Education & Professional Development

•  Adventure Tourism Development- Norway, Brazil, Mexico, Quebec…..

•  AdventureTravelNews.com

•  Research Initiatives

•  Leadership activity worldwide: GSTC, WTM, ITB, Tourism for Tomorrow, National Geographic Geotourism Summit, Sustainable Communities Guild, PURE, ABETA, NCE, etc.

•  ATTA’s online community, The HUB: more than 1300 professionals online- networking, best practices sharing, business getting done

•  ATTA Regional Meetings and Adventure Travel World Summit


Vital Wave Consulting Solving the problems of business in emerging markets

Social & Mobile Strategies & Implementation

Market Research & Strategic Planning

Platform Implementation

•  Mobile services strategy and implementation

•  Travel product development

•  Emerging market sizing and ROI

•  Niche tourism strategies – adventure, eco, heritage tourism

•  Best practices & sustainability


…Adventure Travel


Factors contributing to adventure tourism’s growing popularity

1. Traveler demand for authentic experiences

2. Consumer demand for ethical products and green, sustainable products

3. Travelers becoming more experienced and seeking new and unusual destinations

4. Changing values and a prioritization of fulfillment, a meaningful life.


Spend Shifters - a sea change

Brand Asset Valuator (BAV) 1million consumers, 20 years, 50 countries, 70 brand metrics

• Exclusive DOWN 60%

•  Sensuous DOWN 30%

• Daring DOWN 20%

• Friendly UP 148%

•  Socially Responsible UP 63%

• Kindness/Empathy UP 391%


Governments are shifting

Survey of over 100 tourism boards:

In 2007, less than half recognized adventure tourism…

Today- 85% do.


Tourism Industry Growth: Mass Tourism and Adventure

1950s 2000s

Mass Tourism; 4% average growth per year

Adventure Tourism; 17% growth in 2009 and 2010

2010

26% penetration

50% penetration

2050

?

Time

Gro

wth

(re

ceip

ts)


Tour Operator Revenue in 2010 vs 2009

18.79%

33.78%

0% 5%

10% 15% 20% 25% 30% 35% 40%

Revenue is Down Revenue is Up

Average Change in Gross Revenue in 2010 compared to

2009 66%

15% 14%

5%

0%

10%

20%

30%

40%

50%

60%

70%

Up Down Flat I Don't Know

Total Gross Revenue in 2010 compared to 2009


Tour Operators


Adventure Travelers

10

WOMEN, MEN, YOUNG, OLDER…


Adventure Traveler Demographics and Purchasing Behavior

11

0%

10%

20%

30%

40%

50%

60%

70%

<18 18-‐41 42-‐74 >74

Adventure Traveler by Age GroupSource: Consumer Survey by ATTA, Vital Wave Consulting & George Washington University

0%

10%

20%

30%

40%

50%

60%

<20 21-‐40 41-‐70 >70

Adventure Traveler by Age GroupSource: ATTA Tour Operator Survey 2010

Younger adventure travelers book less often with tour operators than their older counterparts


Traveler Demands

• They say they don’t want luxury, but there better be hot water and a good meal.

• They say they welcome risk and excitement… and they emphasize safety

• They don’t want to be labeled as exclusive… but they do want small groups and special one-of-a-kind experiences

• They say they want authenticity… and they want it guaranteed


Emerging Markets Tourism Forecasts 5% growth per year compared to world average of 4%

Mill

ion

unwto.org/facts/eng/vision.htm

1950 1960 1970 1980 1990 2000 2010 2020 0

200

400

600

1000

800

1200

1400

1600

Actual Forecasts

1.6 bn

1 bn

694 mn

South Asia

Middle East

Africa

East Asia/Pacific

Americas

Europe


Top markets as % of growth for major credit card company

•  Seychelles •  Sri Lanka • Lebanon • Ghana • Bangladesh • Tanzania • UAE • Ethiopia • Kuwait • Syria • Egypt • Uganda

14


Emerging Markets: Products and Travelers of the Future

15

INDIA

CHINA


Politics & Media: Emerging Destination Perspective

• New Zealand

• Mexico vs. Texas vs. Politicians

• Egypt


Egypt – Tahrir Square

17


Egypt According to

18

U.S. Embassy resumes normal operations in Egypt- April 29, 2011


Destination Opportunities for Adventure Travel



Emerging Markets

Israel Latvia Romania Jordan Slovenia Bulgaria Czech Republic Estonia Chile Slovakia



Developed Countries

Switzerland Iceland New Zealand Canada Germany Sweden Ireland Norway Finland Austria


Technology & Travel, Where We’re Headed

Connected Support for Guided and Self-Guided Trips

Carrier partners allow connection in global markets

Enable mobile purchases while travelling

Feature phone or smartphone depending on network capabilities in destination

Facilitate sharing during trip with secure mobile uploads


Key Take-Aways

• Adventure will be a component of an increasing number of tourism experiences

• Emerging markets represent a source of new destination products and a source of travelers


Thank You!

For more information contact….

Shannon Stowell: [email protected]

Christina Heyniger: [email protected]