Do you remember that phrase “Keep on Truckin’ "? I know some of you do! It may bring back memories of music by Eddie Kendricks, the Temptations, the Grateful Dead or the Road Hammers; a one-page comic with four guys leaning back, stepping boldly forward; or bumper stickers and hats from the late 60s and 70s. For our younger industry members, take a look in the Urban Dictionary and you will find “Keep on Truckin’” defined as “a general phrase of encouragement meaning to stay focused in general or on a particular job.”
I think that is a pretty good mantra for the Division and the Ohio Tourism Industry right now. Here at the Division, we are focused on the programs and partner opportunities we presented to you during the Town Hall meetings (click here to download). At the same time, we also are continually seeking opportunities to improve our services to and relationships with you, our Ohio Tourism Industry Members. To that end, I encourage you to take a moment to complete our BuckeyeLine Survey to help us better serve you.
Looking at the future for the tourism industry as a whole, we can’t help but be reminded of past cycles. While “Keep on truckin’” and CB radios were replaced by “Just Do It” and iPhones, fashions cycle back around and so does the economy. For 2010, the predictions are for “Less Bad.
What does “Less Bad” look like? For starters, there have been a few rays of hope in 2009. The Great American Road is great again. Gas prices are down from a high of more than $4 per gallon back in July of ’08 to around $2.58 a gallon in September of 2009. While consumers are wary of price increases, we saw around an 8 percent increase in auto travel nationally from March 2009 to August 2009. Not tremendous growth but good news for road-trip destinations like Ohio.
Though the “Affordability of Travel Index” surged from July 2008 to July 2009, lowered pricing has not been enough to spur demand. As we all know, once prices are lowered, it typically takes a lot more time to raise them again, and consumers don’t currently feel good enough about the economy that our industry can make up the price differential through volume.
For 2010, we are looking at slow improvements including:
• Slow tortoise-like improvement in the economy and the travel and tourism industry;
• Often smaller losses rather than positive gains;
• More reductions in air flights – return to immediate post-9/11 levels
• Increases in international visitation, but return to previous levels not likely to occur until 2013;
• Consumers still wary of spending money on large-ticket items;
• Rising unemployment dampening ability of consumers to support economic growth.
The result is a “New Norm” in which we need to emphasize:
• Value is king!
• Authentic Experiences
• Focus on “Re” (Relaxation, rejuvenation, reconnection…)
• “Togethering” – couples, girlfriends, guys
• Ease of Travel – Time is short so the easier it is to locate and book an experience, the better
• Social Media – Be Strategic
• Package!
According to research from the U.S. Travel Association and YPartnership, 142 million people intend to travel in 2010, 43 million have no plans to travel and that leaves 40 million people who are unsure whether they will travel. Those 40 million represent an opportunity for us as marketers to utilize the strategies above and provide at least a portion of this group with a reason to travel. Research shows that the greatest obstacles to convincing this group to travel are budget concerns, travel costs and gas prices. H1N1 (Swine Flu) also could be a game changer in 2010.
Aside from business travel, predictions are for modest recovery in 2010 – up about 2 percent according to the U.S. Travel Association. So, like the song says, “Hey, man, don't slow down and don't stop for nothin'; When the goin' gets tough, you just keep on truckin'!"
Safe travels,
Amir
