Can you believe that next Tuesday is August 1st? Labor Day is just a month away, and schools go back around August 10. Traditionally the summer tourist season here on the northern Gulf Coast runs from Memorial Day to Labor Day, what was called the 100 days of summer. These days, with schools breaking later and returning earlier, it’s almost the 60 days of summer. From the industry’s point of view, there’s a big weekend for Memorial Day, then a pause until the schools have been out for a week. Independence Day is huge, although the real success depends on which day the 4th actually falls. Then the season continues until the schools return when there’s a breather until the big Labor Day weekend.
As we locals know, the passing of Labor Day brings one of the two best parts of the year (the other being between spring break and Memorial Day) when the humidity disappears, the heat backs off just a tad, and the large numbers of tourists (those with their young families) are absent. It’s the time we all love, the ideal time to live here.
It’s also the time to attract those tourists that we really love. The higher spending, lower party size, Boomers and Millennials who come for the festivals, life style, food and culture. Not that we don’t love the families who fill the beaches in the summer of course.
Successful tourism maximizes income during the Summer Season, so that the fewer numbers of higher spending visitors during spring and fall provide the icing on the cake. A small increase in these guests provide a thankfully disproportionate increase in income. How to attract this small increase?
Obviously we need to keep our attractions, restaurants and experiences open. We need to plan our concerts and cultural events for this time of year. We need to heavily promote what we feel is the best season of the year.
Many of my fellow industry professionals want to ban the term ‘shoulder season’ when referring to Fall. The move is to call it the Best Season. I understand where they’re coming from. To those in the industry, between ourselves, it will always be a case of high, shoulder and low seasons. That’s inescapable. But to the tourists renaming Fall ‘The Best Season’ maybe simplistic. Best for what?
This is where really clever marketing will come in. Tailoring our message to individuals or personalizing, is where tourism marketing is succeeding now. If you love fishing then the Fishing Rodeo is YOUR season. Music, seafood, arts all appeal to small but high spending individuals with the opportunity to travel. I will say that if you Google ‘Fall Festivals Florida’ you’ll be hard pressed to find many in our area. That’s something that can be solved with creative search engine optimization of course. The Alabama coast has cracked that.
The Best Season, Your Season, Festival Season whatever. Let’s get the word out that Fall is the absolutely greatest time to be here.
The following article was published in the Northwest Florida Daily News on Sunday, May 28, 2017.
A few people have told me that they read the Talking Tourism column each week, but are a little puzzled by my references to Millennials, Boomers and Zoomers. Fair comment, so I’ll try to explain.
Much as we like to think we’re all the same in our outlooks and approach to traveling, we’re not. There are all sorts of influences on our opinions, but for those of us in tourism and hospitality marketing, we have to make a few generalizations. One of the easiest ways is by dividing the travelers into generations as it’s been found that’s a pretty accurate way to predict how people will behave, what their likes and dislikes are, and how we can best appeal to them. Obviously, the lines between the generations are blurred and, of course, it’s dangerous to overgeneralize how people behave. If you Google the subject you’ll be overwhelmed by academic and not-so-learned opinions.
To read the rest of the article, please Click Here
Back last year we visited Asheville, North Carolina and I wrote about our experience visiting the Sierra Nevada Brewery (See Here) It was great and of course on a return visit this year we felt obliged to go back and check that it was still as good. It was. The restaurant was still serving great food and accompanying it with excellent beer. The store was still selling beer related souvenirs and take-home bottles, six and twelve packs and the ubiquitous Growlers.
We also decided to check out the competing New Belgium Brewery. New Belgium has similar history to Sierra Nevada in that its origin are in the west – Colorado this time, rather than California – and that it was born out of the craft beer movement when beer lovers became disenchanted with carbonated, chemical drinks pushed at us by the big brewers. Similar movements have taken place around the world, notable being the Campaign for Real Ale (CAMRA) n the UK, which subsequently spawned the annual Great British Beer Festival. Suffice to say though that Craft Brewing is spearheaded around the world by excellent US breweries and their beers. However back to New Belgium…..
The New Belgium Brewery is smaller than its Sierra Nevada comrade but none the worse for that. It has a different vibe, just a little more relaxed on the tourism front. The tour is of course free to tempt the faithful to identify even more closely with the brewers. Their maximum number of tour members is 20, but on our tour there were only 5 plus the tour guide, Lucy. Lucy was part of the Brew Team and was certainly knowledgable about the process, history, culture and products. There is a great sense of fun in the organization with employees being given a New Belgium bike after a years service and things like a slide to get from one level of the plant to another – see the photo! New Belgium is an employee owned company and so is unlikely to be absorbed into one of the Big (Chemical Producing!) companies. Unlike Sierra Nevada where the tasting session takes place at the end of the tour, New Belgium indulges visitors with tastings at strategically placed ‘bars’ throughout the plant. The tour ends being dropped off outside the tap room and gift shop (of course) and the Sierra Nevada full scale restaurant is replaced by a Food Truck which is really VERY good.
Which was best? Neither. They are both professional, fascinating and well worth a visit. If you’re going to the area, please try both. Not just from the beer tasting point of view, but to look at how an industrial process has been turned into a tourism opportunity.
Down here on the northern Gulf Coast we have also been absorbed by the Craft Beer movement in recent years. Both the tourists and of course the locals have been calling for something other than mass produced fizzy chemical water. Our large Military contingent along the coast has contributed to this, as they know their beer!
Without too much research you can find 13 craft breweries between Pensacola and Apalachicola. These are virtually all paired with good restaurants and all sell their own beers and the souvenirs aimed aimed at their followers. A good number have formal brewery tours, an I’m guessing that that those that don’t could happily arrange a meet up with their Brewmaster on request.
Of course this is another tourism opportunity for our Destination Marketing Organizations to jump on. The Emerald Coast Beer Trail (I’ll happy donate that title to the cause in exchange for a glass of IPA) could have tourists visiting sites right along the coast. Perhaps some sort of treasure hunt collecting stamps at the different locations, with a prize for getting all of them? Nice Marketing at it’s best and simplest, appealing to Millennials, Boomers and Foodies at the same time. The other thing to mention is this is a year round activity, and it isn’t dependent on the weather.
Just to help out here’s a list of the local Northern Gulf Coast Craft Breweries that I’ve found.
Pensacola Bay Brewery
225 E Zaragoza St
Pensacola, FL 32502-6048
(850) 434-3353
www.pbbrew.com
McGuire’s Irish Pub & Brewery
600 E Gregory St
Pensacola, FL 32502-4153
(850) 433-6789
www.mcguiresirishpub.com
Gulf Coast Brewery LLC
500 E Heinberg St
Pensacola, FL 32502-4145
(850) 696-2335
www.gulfcoastbrewery.net
Props Craft Brewery
255 Miracle Strip Pkwy SE Unit B19
Fort Walton Beach, FL 32548-5833
www.propsbrewery.com/
McGuire’s Irish Pub and Brewery – Destin
33 Highway 98 E
Destin, FL 32541-2309
(850) 654-0567
www.mcguiresirishpub.com
Destin Brewery
505 Mountain Dr Ste N
Destin, FL 32541-7334
www.destinbrewery.com
3rd Planet Brewing
120 Partin Dr N
Niceville, FL 32578-2053
(850) 502-9952
www.3rdplanetbrewing.com
Grayton Beer Co
217 Serenoa Rd
Santa Rosa Beach, FL 32459-6099
(850) 231-4786
www.graytonbeer.com
Idyll Hounds Brewing Company
845 Serenoa Rd
Santa Rosa Beach, FL 32459-5019
www.idyllhoundsbrewingcompany.com/
Nivol Brewing
483 N Richard Jackson Blvd
Panama City Beach, FL 32407-3647
(850) 249-1150
www.nivolbrewery.com
Uncle Ernies Bayfront Grill & Brew House
1151 Bayview Ave
Panama City, FL 32401-1452
(850) 763-8427
http://uncleerniesbayfrontgrill.com/welcome/
Oyster City Brewing Company
17 Avenue D
Apalachicola, FL 32320-1801
www.oystercitybrewingco.com
If I’ve left anyone out, please let me know!
getting employees to another level.A morale boosting experience?The brewery is built on the site of an old circus.After a year of service each employee gets a bike.
For those not on our mailing list, here’s the March newsletter!
Navarre Beach.
Last month, we discussed how some politicians in Tallahassee, the Florida State capital, were playing politics with the future of Visit Florida, the State’s destination marketing organization. That fight isn’t over as we’ll report.
This month other politicians both here in the USA and in other parts of the world are having influences on tourism in ways they cannot predict.
Good news however is that Culinary Tourism is booming. Read on….
Political shenanigans
The move by Speaker Corcoran to de-fund Visit Florida continues, although he has indicated that he no longer wants to close the organization down, merely to limit its ability to operate and drastically reduce its budget. Governor Scott is fiercely fighting this along with the Tourism Industry and it would appear, members of the Senate. The fight is not over and if you’re involved in the industry in Florida, I urge you to a) contact your representatives to support Visit Florida and b) attend Tourism Day in Tallahassee this month to lobby in person. Please contact me if you need details of how to attend Tourism Day.
In what promises to be a difficult year for international tourism, further obstacles are being dreamt up by politicians on either side of the Atlantic.
The strong US dollar has the potential for discouraging European tourists in particular from visiting the USA this year. Some of those European economies are not strong currently and the USA could be expensive for them.
We now have the three year-old dispute between the EU and the USA over visas. The EU parliament consider that the countries of the community should be considered as one (that has resulted in the UK wanting ‘out’ with their Brexit vote), although the US still recognizes individual states. The US has refused to allow some EU states access to the Visa Waiver Program which allows visa free travel into the US. Poland, Croatia, Bulgaria, Romania and Cyprus don’t meet the US security requirements. The EU has said that either the US accept these countries or all US Citizens will require visas to visit any EU country.
This is an old dispute and has now reached the ‘Who blinks first’ stage. Despite the strong dollar which makes overseas travel attractive, American tourists would be very discouraged if they were required to get a visa. Europe needs those US dollars after a lackluster 2016 tourist season following terrorist attacks, and although advance demand has been strong, it wouldn’t take much to scupper that.
Traveling the other way – east to west – is also potentially threatened. I mentioned the strength of the dollar being a hazard, but what has been called the ‘Trump Effect’ is apparently causing a softening of travel demand. I’m not making any political points, just reporting on figures coming from sources in the tourism industry.
It appears that first announcements of a travel ban had a detrimental effect on European tourists plans to visit the US. I’ve been asked why, say, a German tourist would feel threatened by a ban on travelers from certain middle east countries. I can’t answer that easily, but believe me they are worried. Even the UK tourists who believe they are part of a ‘special relationship’ with the US, are as a group being cautious. Suffice to say that enquiries for flights to the US are down an average of 22%. Tourism research firms are projecting a loss of 6.3 million visitors ($10.8 billion in lost revenue). The tourism board of New York City has predicted that 300,000 fewer tourists will visit than did in 2016. Previously New York was predicting an increase of 400,000. Philadelphia has already lost one conference worth an estimated $7m as a result of the proposed travel ban.
Even the Canadian market is seeing a drop in the number of tourists intending to travel below the 49th.
That’s International tourism of course and it’s been suggested that it won’t affect US destinations that don’t cater for Internationals (like Northwest Florida, where only 1% of tourists are from outside the US). That may be true, but of course the markets that attract overseas travelers are hardly likely to sit and do nothing. They will want to find domestic tourists to replace the foreigners and they are not averse to creating marketing campaigns and making offers to lure those domestic guests away from places like the Northern Gulf Coast.
As the old Chinese curse says “May you live in interesting times”.
It’s not all bad news though…..
95% of travelers have said that they engage in unique and memorable food or beverage experiences while traveling, according to the World Food Travel Association ( I guess that they would say that!). Another research organization, Destination Analysts, claim that 50.7% of Millennials won’t visit a destination that doesn’t have good restaurants – although they don’t define what makes a good restaurant.
Before you state that Millennials are just children, remember that the first Millennials turn 35 this year! Also important is that the Centennial Generation (Generation Z or ‘Post Millennials’) are now just beginning to enter the workforce, so are beginning to effect the market.
Certainly the younger generations are having a strong influence on their parents and grandparents when it comes to food. A recent report by the HAAS Center (part of the University of West Florida) was created to examine tourism trends in Okaloosa County (home to Destin, Fort Walton Beach and Okaloosa Island). They found that although tourist spending in restaurants in the county increased in 2015 more than 15% over 2011, its revenue per seat had grown only 12%, where peer and competing counties had grown by 28%. The competing counties are where most (but certainly not all) of the new and more creative restaurants are found. Interestingly, the area has seen an increase in the number of up-scale grocery stores (Whole Food Market, Fresh Market and Publix). Whereas in 2011 tourists spent twice as much in restaurants as they did in grocery stores, it’s likely that 2016 will see tourists spend more in grocery stores than in restaurants for the first time.
The take away (sorry!) is that those tourists are seeking culinary experiences, and finding them.
Which brings me to the really good news for my home area. I recently attended the Florida Restaurant and Lodging Association’s annual awards ceremony for the North West Florida region. The display of talent at that event was stunning. The quality of the areas chefs, wait staff and managers was exceptional and their depth of knowledge, experience and creativity was at least a match for more recognized tourist areas. A similar level of expertise was evident in the hotel, resort and accommodation sector.
That Culinary Tourism is growing makes really good news for the industry as a whole. It’s also great for The Northern Gulf Coast of Florida. The Tourism Industry worldwide is going for Culinary Tourism in a big way from the traditional destinations of Europe to the New World and areas like Australasia. Even Costa Rica getting in on the act. Don’t underestimate the Cruise lines either.
I’m not one for making resolutions, mostly because I change my mind so much! If you want to change something, better to just to get on with it than wait for some arbitrary date to start. That’s my excuse anyway. Similarly, looking backwards doesn’t help because we can’t change what has past – although as numerous people (apparently) are quoted as saying – if you don’t remember past mistakes, you’re doomed to repeat them!
So, in the interests of progress, let’s look forward.
I’ve read two articles over the end of the year break that I felt were right on point. I’ve attached links to these so you can read them yourself.
The first was by anti-aging & sports medicine pioneer, and futurist, Dr Robert Goldman (http://ow.ly/Akd9307C9Bt). Dr Goldman pointed out some of the changes that society will be subjected to over the next few years. What is most striking is the speed at which these changes will take place. I remember talking to a scientist with British Telcom back in the early ‘90s who said that they knew absolutely what developments would arrive within 5 years; they had a pretty good idea what would happen in the next 10 years but beyond that they were ‘wishing and hoping’! as Dr Goldman suggests we are now in the exponential age, where changes occur at an ever increasing rate. In many cases these changes happen faster than most businesses can adapt. If you read the article you’ll see that many developments will directly affect the Travel and Tourism Industry.
The second piece was by Christopher Elliott in the Washington Post (http://ow.ly/Hrvl307C9Ob). Chris is suggesting that 2017 is the year many people, especially Americans, won’t be traveling on vacation. He cites many reasons and offers suggestions of how as a tourist you can benefit (please go and read it!) but for those of us in the industry there are three main takeaways. That tourist will be looking for alternative accommodations, authenticity and satisfying their needs for instant gratification.
I’ve talked to many travel and tourism professionals over the past year and we’ve discussed the inevitable changes that are happening and I can’t think of anyone who has disagreed. After all, the signs are really clear – very ‘in your face’ as it were. However, many are not willing to accept the speed of changes.
Take ‘alternative accommodation’ – Airbnb in particular. Home sharing has expanded incredibly rapidly. Airbnb are now the largest accommodation provider in the world with over 2.5million homes (incidentally, they own no hotel rooms!) yet most of the vacation rental companies here in Northwest Florida’s Northern Gulf Coast seem to think think they are not a serious threat to their business model.
The past year the 1.5 million guest arrivals to Florida via Airbnb represent 114 percent year-over-year growth. This comes as Floridians increasingly embrace the home sharing platform as an opportunity to earn supplemental income and make ends meet. The Airbnb Florida host community grew 74 percent in 2016 to a total of 32,000 hosts.
Yes, the local industry says, but it’s in cities, not here.
This is the total supplemental income earned by Airbnb hosts in our local counties:
Bay County $4.9 million
Walton County $3.3 million
Okaloosa County $2.9 million
Escambia County $1.8 million
Santa Rosa County $683,000
That’s a total of nearly $13.6 million. True, it’s only 10% of the income from Miami-Dade alone, but its still remarkably significant.
People love the idea of either staying with a local host, or staying in the home of a host which they perceive differently than the relatively anonymous experience of a cookie cutter condo or a ‘standard’ hotel room.
This contributes to the ‘authenticity experience’ that comes from home sharing, boutique hotels and the like.
Chis Elliott also refers to ‘Instant Gratification’. I know I’m always talking about the attitudes of Millennials and younger Boomers but they do have have a seemingly out of proportion effect on our industry. Their behavior appears to affect the other sectors of our audience too. The ubiquity of smartphones and the ability to access information from wherever you are, makes the almost impulse decision to book a vacation all too easy.
You’ve bought things on Amazon. How many times have you been tempted by the ‘people who bought this also bought this’ suggestion?
Think what will happen when someone suggest “How about we go to The Gulf of Mexico next weekend?”. You look at your phone and up pops the local CVB websites – you see what events are happening, and guess what? You can book the Airbnb accommodation right there, and the concert tickets, and the Uber from the airport. Of course there was link to book flights too but you’ll probably want to do that with the airline because you get your miles there – and suddenly Delta Air Lines are offering 1 mile for every $1 you spend with Airbnb if booked through them – oh, and Uber credits too.
We have a change to the whole vacation booking experience, which is not taking 5 or 10 years to develop but is happening as we speak.
Put a note in your calendar to contact me at the end of 2017 and tell me if there have been no changes to your tourism business during the year. To be frank, I don’t think you’d be able to do that by June!
Whatever happens is going to be exciting. The evolution of the world’s biggest industry has always been fascinating and the near future won’t disappoint I’m sure.
Please follow the Owen Organization blog on www.owenorganization.com, sign up for the newsletter and follow us on Facebook at www.facebook.com/OwenOrganization. Lastly, check out the weekly ‘Talking Tourism’ column in the Northwest Florida Daily News every Sunday.
An old joke in the ‘80s and ‘90s was “ I bought a video recorder that was ‘so simple, a 5 year-old could program it’. I ended up having to get my 5 year-old to program it as I couldn’t’.”
That five year old is now likely a Millennial generation adult and is having a major disruptive effect on the whole of the tourism industry.
The Millennial generation now comprises around 25% of the US population according to the US Census Bureau and they travel a great deal. PhoCusWright reports that 71% take at least one trip of three nights or less, 42% travel internationally (compared with 28% of older travelers), and they are twice as likely as older generations to take longer trips of 14 nights or more.
The Millennial generation also travel differently than previous generations in that they don’t always stay in hotels. They stay with friends and they use services like Airbnb. They don’t always use taxis, car services or rental cars – they use Uber and Lyft.
Unlike previous generations, they may take more trips but spend less. They are more connected, with 90% owning a smart phone – compared to 57% of older travelers – which 66% use to shop or buy travel. They use a wide variety of sources for their research and booking from OTAs, review sites like TripAdvisor and of course peer advice shared through a whole raft of social networking.
According to Samantha Worgull of ‘Hotel News Now’ and PhoCusWright, Millennials tend to book at the last minute with 23% booking less than one week before departure.
They seek experiences and want to share those with their peers and families through social networks. Experience is the whole raison d’etre for their traveling. No matter if this foodie, eco-tourism, adventure or pure excitement. The simple fact is that this group want to do more than lie on a beach.
To return to the old joke about video recorders, those same adults who sought advice from their children are now Boomers and are again seeking advice from their Millennial offspring. They want to where and how to buy their travel. They want reassurance that Airbnb or Uber are safe.
Marcello Gasdia, senior analyst of consumer research at PhoCusWright said during a recent conference “Millennials have been the trend setters, they are the ambassadors of technology.”
So, this is the disruptive influence the Millennial generation is having on the whole tourism industry:
They book late
They look for value
They seek experiences
They share their trips with others
They research intensively
They influence older travelers
How does this affect the traditional providers of tourism products?
For airlines and hotels the loyalty of the Millennial traveler cannot be guaranteed. Many fewer are members of loyalty programs, 22% compared with 41% of older travelers. The inference is that they may not trust the advertising and promotion of established companies blindly. They are more likely to take advice from friends and independent reviews, and change their booking habits accordingly.
Travel agents as we knew them are largely a thing of the past, particularly in the USA. In Europe and Canada the situation is slightly different but certainly the old style travel agent is dead. In their continuing quest for value, On-Line Travel Agents (OTAs like Expedia) are well in the mix to seek bargains and value. Anything that is not an ‘experience’ like a conventional hotel room or condo becomes a commodity, to be booked wherever the best deal can be found – preferably at the last moment.
The last minute tourist is still looking for the destination experience, the tour (hopefully not conventional but personally led by a local!) or activity will probably be left until arrival when the weather and local area has been checked out. Tour and activity booking specialist TripShock! confirm that most of their bookings are made after a guest arrives in the destination. Where does the Millennial tourist find the information? Again, peer advice or advice of a local. Local tourist boards (CVBs, Chambers of Commerce and similar organizations) are seemingly trustworthy sources, particularly in areas where the likes of TripAdvisor or Expedia do not have much content (Virtually everywhere except places like Orlando, New York or Las Vegas!).
The problem with local tourist organizations is that on the whole they further refer visitors to individual tour providers for follow up. Given the attention span of website visitors, they want to get advice and book there an then, not have to make lists and do even more research.
Experience from tourist organizations in New Orleans shows that if they offer advice and reviews and then enable on-site, immediate booking it results in more bookings for local businesses, happy tourists and a bonus of commission payments to the tourist board.
Disruption is a current buzz-word, but the Millennial generation has disrupted life in the tourism industry worldwide. Not only by their different travel habits and use of technology; their search for ‘experience’ and value, but also their influence on the other generations of traveler. Particularly the Boomer generation. The important factor with this group is that they have more opportunity to travel and have a higher disposable income. They also learn fast when it comes to technology.
The Boomers also learnt, back in the day, to listen to their offspring……
The Economist recently published an article about tipping in the USA. The main thrust was that we Americans are as confused about tipping as the rest of the world is confused about our tipping habits. It made me remember an incident that happened to me way back……
I’ve been in the travel industry since Methuselah was a boy, and have been fortunate to have traveled to a great many places, including here in the US. On this particular occasion I was the host to a group in a New York restaurant. A great meal, good service and an enjoyable if not spectacular experience. I left a tip of 15%, which would be considered very good in the UK. Imagine my surprise at being approached by the Maitre d’ who asked what had been wrong with the meal. I told him nothing was wrong, it had been a perfectly good evening. I was told in definite terms that I should be tipping at 20-25%.
In Europe, 10% is pretty much the norm. In some places in Scandinavia, and certainly in New Zealand, tipping is considered an insult, and may result in a tirade from the person tipped – just don’t do it!
It’s true that we should be aware that different cultures around the world expect different behaviors and we should be aware of that when traveling. But should we be as guarded traveling in our own country? Surely a tip is a tip, wherever we are in the USA?
I’ll let you read The Economist piece yourself (it’s at http://ow.ly/xStZ303ZhdX). It’s worth a look if only to add to your confusion.
This also let me to consider something that’s been happening here on the Northern Gulf Coast of Florida, particularly the piece known as The Emerald Coast.
The area has traditionally drawn tourists from the whole of the South East, anywhere within a 10-15 hour drive to Destin, Pensacola and Panama City Beach. The tourists tend to peak during the period between Memorial Day and Labor Day – the ’90 Days of Summer’. This, due to schools breaking later and going back earlier, has been reduced to about ‘The 60 Days of Summer’, but that’s another story. Suffice to say, the market is mainly families who drive in. They are traditional in their approach and the families have in the main, been doing the same thing for up to 40 years. Things are changing though…
The shortening and concentration of the family travel period has opened up the rest of the year to new markets – people who can travel without kids, and at short notice. Primarily Millennials and Zoomers (Younger Boomers, Boomers with Zip!). These groups have different requirements than the families. They want experiences, great food, the ability have what they want when they want it – now. They also behave differently. Zoomers tend to have more disposable income, and Millennials tend to do more physically demanding experiences – although those are both very much generalizations.
The local Destination Marketing Organizations (DMOs – Tourist Boards, CVBs etc.) have been consciously aiming their marketing up market. Going after more affluent sector of tourists. Their efforts appear to have worked. For the 30A area (South Walton) this has certainly worked. Their area has been inundated with high spending customers. In fact, let’s face it, they’ve been inundated with all types of customers!
The same appears to be true of all the areas along the Gulf Coast. Tourist Development Tax (Bed Tax) is up across the region, and Okaloosa in the center of the region, appears to have had bigger tax growth than other neighboring DMOs. However, many local restaurants, particularly in the Destin area are complaining that tourists are not spending like they used to. Is this a justifiable view?
I’ve spoken to a number of restauranteurs and to accommodation providers. The later have said that their occupancy has been up, and their ADR (Average Daily Rate) is also up. One hotelier told be he goes out into his parking lot on Memorial Day and checks out the kind of vehicles that are there. He said that this year, there were far fewer trucks and many more upscale SUVs. That would surely show that the income group is probably rising. He also said that on the beach there were far fewer cut-off T-shirts and many more upscale bathing suits. There’s no real science in this approach, but he’s been doing this for many years an he can see a distinct correlation to the amount spent.
Pushing the restauranteurs on if they are actually seeing a decrease or stagnation in the amounts visitors are spending led to a revelation. It’s not the amount of the bill that’s declining, but the amount of the tips.
Tips in Florida generally (in restaurants) have been around 14% for some years. That’s a marked difference from other parts of the US. The North East is closer to 25%. The reason for this is possibly due to the number of overseas guests visiting Orlando, Miami and the other internationally visited areas. Remember that overseas visitors are used to tipping less. Up here in the Panhandle though, tipping has been closer to 20% traditionally. Not too many international guests up here, so what’s going on?
Digging further and doing some research I’ve found that there are other factors in play. It appears that Millennials tend not to tip at the same rate – check out the following articles (http://ow.ly/Xd9u303Zprh. http://ow.ly/26Vo303ZpBs) and try Googling ‘Tipping and Millennials’ and see how much confirmation you get.
It also appears that Zoomers will not just tip at 20% regardless. They modify the tip depending on the service received.
…and it’s not just those groups who are modifying their tipping habits. Locals, family groups and The Military are all reviewingtheir habits, subtly and subconsciously.
It’s not as simple as ‘we’re attracting the wrong people’. It appears we’re attracting the right people, but those visitors are not behaving in the way they used to. Another indicator that the tourism market is changing and it’s changing rapidly.
Having been in the workplace for a long time and having always been in the travel and tourism industry, I consider it necessary – no, a duty – to take vacations. To travel to new and exciting places and have a good time. For me, the new experiences added to my professional knowledge. They gave me more ammunition to use in persuading my customers to spend money on travel, or allowed me to help my business travelers.
Now back in pre history, without the ever-on email, global communications and such, taking break always meant coming back to uncompleted work, piles of letter, lists of folks to be called back. That was the downside. The upside was the comments about the suntan, and the ‘Don’t you look rested’ remarks. Again, being in the industry helped and most folks I worked with and for looked on travel as an educational experience.
Indeed, one company insisted that in addition to vacation time, all our employees, from the front line staff to back office specialists like accountants and maintenance people took a long haul trip once a year – we were a long haul tour operator. We provide the ticket and the time. The idea proved its worth over and over. The people we worked with were motivated, knowledgeable, rested, and loyal.
A recent report by ‘Project:Time Off’ is called The Work Martyr’s Cautionary Tale – How the Millennial Experience will Define America’s Vacation Culture. It’s available to download for free. http://ow.ly/gsDi303tDQb
It’s a fascinating and, to be frank, depressing work. It’s worrying from the point of view of a fellow human being, but frightening for our tourism industry. Although the report studies American attitudes, I have a feeling it applies to many nations.
Apparently the definition is based on belief that:
No one else at my company can do the work while I’m away
I want to show complete dedication to my company and my job
I don’t want others to think I’m replaceable
I feel guilty for using my paid time off
The workers who fit that definition tend to be slightly more female (52%), slightly less likely to be married (55% are married, compared to 62% overall), but what is most alarming is that they are overwhelmingly Millennials. More than 43% of work martyrs are Millennial, compared to just 29% of overall respondents.
I find all this strange given that this demographic have all the tools to take vacations, yet remain ‘in touch’ if they want to. Ubiquitous internet connectivity provides the means to avoid the backlog when you get back, or the ‘not being available’ worry – if you feel unable to cut the ties for a few days.
I’ll leave you to read the report, which if you’re in any sort of supervisory position you should. The future health of your employees and your organization depends on you being the change agent to modify this crazy mentality!
I mentioned this report to my researcher-in-chief (my wife!) who lead me to a Washington Post article (http://ow.ly/VHpX303tBEr) about why Millennials apparently eat cereal. Long story short, although it’s simple to pour the
Breakfast at the Ashford Manor in Watkinsville GA. Definitely worth leaving for!
cereal out of the box, and add milk, you have to clean up the bowl and spoon afterwards! No comment on the apparent laziness of this, it’s more to do with needing to be working rather than cleaning. This also gives a reason for the massive increase in the sales of coffee pods which grew by 138,325% (yes, you read that correctly) between 2004 and 2014. I actually do approve of coffee pods, as the alternative to me was a fancy coffee machine which I felt I had to use. That resulted in way too many espressos a day….but I digress.
So the need to concentrate on work appears to be the reason for not taking vacations and not eating cereal. Interesting sociological points.
However, let me address my fellow travel and tourism professionals……
What are WE going to do about it? (The lack of vacations, not the breakfast choice)
Hopefully as they age, the Millennials will chill out and start to consider their position. They’ll realize that there’s more to life than always working, and that dedication to work and vacationing are not mutually exclusive. In the meantime we have the Boomers and Generation X to rely on. Although not for long. If this mindset continues, it could spread both up and down the generations.
How does the Industry react and how do we – who depend on people visiting our hotels, resorts, attractions, locales and areas; on using our airlines, car rentals, trains, buses etc – make the vacation experience compulsive?
It appears that Millennials only listen to their boss, with 30% saying the boss is their most powerful influencer. Boomers on the other hand list their families (25%) and their doctor (21%) as the most powerful. Only 13% of Millennials consider their doctor – which is not surprising given their age. Perhaps the Tourism Industry need to deal with the boss. Making deals with companies to persuade their employees to travel for leisure? Allowing employees to tack leisure trips on the end of business trips? Using leisure travel as a reward for good work?
I don’t have all the answers (call me for some of them!), but it is a question that our industry needs to address – maybe while you’re relaxing on vacation….
.
