This particular blog post is written specifically for group travel suppliers. But if you are a buyer and want to weigh in, feel free.
Since we started Itineraries, we’ve have quite a few CVB’s and venues who depend on tourism dollars tell us, “No we don’t do the group travel market…we want the corporate meeting and event business…”, or, “we just want the leisure travelers [like families and couples]“. Now the tune has changed, and group travel is looking much more attractive.
Well, things have changed rather quickly, haven’t they?
Consider that the corporate market is only one of the 3 major components of tourism. The other two components are leisure tourism (families, couples and individual travelers), and group travel (tour operators, bank clubs, and specialty groups). Let’s talk briefly about these three in relation to the current U.S. (and even the world) economy.
There was never any doubt in my mind that the corporate segment was worthwhile, or that leisure travel would always be a significant component, but the current economy took my thoughts in a different direction…consider this and see what you think about it:
THE CORPORATE MEETINGS & EVENTS MARKET has significantly reduced in activity. Why the disappearance of the corporate market? Because many businesses don’t NEED to do off-site meetings and events, and this economy calls for downsizing. Hence the corporate market has diminished.
THE LEISURE MARKET is also not bringing in as great a return as CVB’s would like to see. Or need to see. Even with the fluctuations of gas prices and growing environmental concerns, families, couples and individual travelers are not traveling as far, and are taking fewer trips during the year (hopefully these trips will be longer in duration). They don’t NEED to go anywhere for the most part (except for weddings, funerals, visits, etc), and are looking for new ways to feed their travel habit.
THE GROUP TRAVEL BUSINESS (tour operators, bank clubs and group leaders) is going to be the last to diminish (look at Europe’s group travel industry – they’ve been growing for years, and that’s where we are headed). The boomer segment is growing and willing to travel, finances are calling for a change in the way people travel, the travel habit has been established is not going away anytime soon, and tour operators are giving their groups great trips and experiences better than ever.
And think about the tour operator… Have you ever owned your own business? If so, then you can understand tour operators and why this market is not significantly shrinking. Tour operators NEED TO STAY IN BUSINESS and they are going to work to keep it going (as opposed to businesses and leisure travelers). Most tour operators are small businesses and entreprenuerial (never could spell this word). And they don’t want to go out of business. So this component of tourism is where you can maintain and grow your tourism business. Remember in an earlier post I quoted industry leaders talking about the growth of the group travel industry? This is where those quotes need to be taken to heart and now is the time to develop and grow your group travel component into your over marketing strategy. Because of the BUSINESS of group travel many DMO’s and venues that didn’t want tour groups are now scrambling to get into the radar of the tour operators and group travel planners.
In summary, and unlike the corporate market and the leisure travel market, the tour operators need to fill their motorcoaches, and you are in a perfect position to help yourself by helping them. This is where you can be a hero for both your venue or dmo members, and the planner who wants to do business with you.
So congratulations if you have been cultivating group travel business before our current economic state of affairs. Now y0u need to stay in front of them. Or others will take your place in the radar of the group travel planners.
Your strategy for building your group travel business now in this economy? Keep presenting the planners with NEW AND UNIQUE. Remember, you can be a hero by helping them fill their motorcoaches. Many of them will reward you by bringing their groups. Over and over again.
As always, your partner in tourism,
Mark