Travel Trends And Travelers To Buffalo & Erie County. September 30, 2015

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1 Travel Trends And Travelers To Buffalo & Erie County September 30, 2015

2 Successful marketing starts with solid research You MUST monitor the ever changing behavior of YOUR visitors Why would they pick you?

3 So many places to visit

4

5 Trends Worth Tracking.or not? The traveling public the average American The quest for authentic and unique Been there, done that jaded travelers Boutique brand proliferation vs. squeeky & leaky Sharing Economy rentals & transportation Website intuitive & responsive design Big DATA Boomers shift from irrational exuberance to cautious travelers focused on retirement Millennials picking up the pace but WILL do it their way!

6 AMERICAN EXPRESS SURVEY SOURCE: Survey conducted for American Express by The Futures Company, polled more than 1,000 consumers in the U.S. on their attitudes toward travel. 85% said they are more interested in making memories than making money. 91% said they would rather focus on meaningful life experiences over their profession. 85% also agree with the statement that spending money on travel is an investment worth making 93% said that despite digital advances in the travel industry, personal service can t be replaced. And that trend is prevalent even among millennial travelers: 83% of millennials value personalization and want to have travel brands track their habits in exchange for a better, more individual experience. 85% of those surveyed said that a customized itinerary is far more appealing than a pre-packaged one

7 AMERICAN EXPRESS SURVEY 72% said they would spend more time planning a trip that is tailored to their interests. 90% of those surveyed said they appreciate the efforts of a travel professional who can customize an experience based on their preferences. 76% of those surveyed said they turn to technology for air and hotel bookings 73% said they use the web for researching places to go for leisure travel 60% said they will use technology to check in for flights and hotels 47% said they want the technological capability to share their travel experiences on social media to add to their enjoyment of the trip (65% of millennials said they want the same capability). -SOURCE: Survey conducted for American Express by The Futures Company, polled more than 1,000 consumers in the U.S. on their attitudes toward travel.

8 AMERICAN EXPRESS SURVEY "Increasingly, travelers want to see the world on their terms with tailored, personalized and differentiated experiences that reflect their passions and needs. The boundaries between technology and personal service are being blurred, allowing more intimate connections for travelers with the world around them. - Claire Bennett, executive vice president of American Express Travel. Bennett said there were three major insights from the survey: 1. the travel industry is incredibly healthy 2. that travelers want both high-tech and high touch 3. travelers value a personal connection that makes a difference when they travel.

9 Know YOUR visitor and how to reach them at the critical point of decision making

10 Competition? Overlapping Travel Planning Cycles January February March April May June July August September October November December Winter Getaway Spring Getaway 41day search Mid March Family Memorial Day 32 day search Late May Trip Couple It s not either/or If they are looking at you It s now or later? Summer Vacation 50 day search July Trip Family Labor Day 9 day search Early Sep. Couple THE BIG TRIP OF THE YEAR 120 day search & planning Late October Couple Holidays 90 day search for deals November & December Family January February March April May June July August September October November December

11 Visitor Profile Research Prepared for: Visit Buffalo Niagara Preliminary Date Review: May 5, 2015 Presentation to VBN Board: July 31, 2015

12 Buffalo Travel Impact & Rank in NY Buffalo & Contiguous Counties in NY Traveler Spend '000s / 2013 % Erie $ 1,562,736 $ 1,605,832 $ 1,638, % Genesee $ 89,627 $ CLINTON 92,441 $ 93, % Niagara $ FRANKLIN 521,003 $ 525,079 $ 580, % Orleans $ ST. LAWRENCE 23,132 $ 23,016 $ 23, % Wyoming $ 35,743 $ 36,786 $ 38, % CHAUTAUQUA NIAGARA ERIE GENESEE CATTARAUGUS ORLEANS MONROE LIVINGSTON WYOMING ALLEGANY WAYNE ONTARIO CAYUGA SCHUYLER STEUBEN TIOGA CHEMUNG JEFFERSON TOTAL $ 2,232,241 $ 2,283,154 $ 2,375, % OSWEGO ONONDAGA BROOME LEWIS ONEIDA MADISON HERKIMER SENECA CORTLAND YATES OTSEGO TOMPKINS CHENANGO DELAWARE HAMILTON FULTON MONTGOMERY ESSEX WARREN SARATOGA SCHENECTADY SCHOHARIE RENSSELAER ALBANY COLUMBIA GREENE ULSTER DUTCHESS SULLIVAN WASHINGTON Source: Oxford Economics 2014 TEIM Economic Impact Model for NY State ORANGE ROCKLAND RICHMOND PUTNAM WES CHESTER NEW YORK BRONX NASSAU QUEENS KINGS SUFFOLK

13 Buffalo & Erie County Lodging Market Analysis

14 Lodging - Geographic Segmentation of Room Inventory Erie County Overall Lodging Room Inventory Geographic Segmentation Rooms # of Properties % of Total AIRPORT 3, % DOWNTOWN 2, % UNIV/AMHERST 1, % OTHER 1, % NORTH % RALPH WILSON % Total Open Properties 10, % (Properties Under Construction) (627) (5) (5.9%) Total with Properties U/C 10, Source: STR 6-YR Trend for Erie County & YSI 2015 Buffalo Lodging Survey

15 Lodging 4 Year Monthly Occupancy Trend 90% 80% 70% 60% 50% 64.5% Erie County Monthly Occupancy % 87.2% 72.7% 59.7% 52.2% % 46.3% 30% Source: STR 6-YR Trend for Erie County, NY

16 Lodging 6 Year Monthly Supply / Demand Trend Line Monthly Supply vs Demand Trend Line 300, , , , , , ,035 Supply Demand 247, , , , , , , , , ,000 99, , , , , , ,848 50,000 0 Source: STR 6-YR Trend for Erie County, NY

17 Lodging Room Supply & Demand 2014 Erie County 6-YR Supply vs Demand Trend Demand Supply 2014 vs 2009 = 330,313 2,061,779 additional room nights 3,183, ,006,302 1,972,917 1,920,613 1,860,706 1,731,466 3,034,291 2,942,341 2,875,973 2,851,856 2,744, ,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 Source: STR 6-YR Trend for Erie County, NY

18 Lodging 2014 Lodging Guest Segmentation 2014 Erie County Lodging Market Segmentation 36.8% Business Transient 31.7% Leisure 25.0% Group/Meetings/Conference/Events 6.5% Miscellaneous Source: Young Strategies Survey of Erie County, NY Lodging Properties

19 Who Are They? A mix of domestic & International A great getaway destination for shopping, site-seeing, unique dining, attractions & museums, architecture Visiting friends & relatives = hotel & houseguests Couples: Typical party size = 2 or 4 Typical stay = 2-3 nights Drive market with some fly/drive HIGH visit satisfaction = 4.3 on a 5-point scale Average spending per day = $ (biz & leisure) 2,061,779 room nights X $300 = $618,533,700 Annual Hotel Visitor Spending (hotels reporting to STR)

20 A Typical day in Erie County 10,064 rooms in Erie County (STR) Average occupancy is 64.8% = 6,521 rooms sold daily Average daily spend per party in a room = $300 $1,956,300 Hotel Guest Daily Spending! (Plus day-trip, staying with friends & family!)

21 What words would you use to describe Buffalo? Visit Buffalo Visitor Profile

22 Contiguous States Census Data

23 Contiguous States Census Data

24 Contiguous States Census Data

25 Canada Census Data

26 Primary Drive Markets 6 hour drive market NY, PA, OH & MI = 53.5 Million S. Ontario = 11 million+

27 Science and ART in Marketing Page 26 YOUR LOGO

28 When do you connect with potential guests? Inspiration Friends, family, coworkers Reading, watching, listening Search OTAS, Trip Advisor, Facebook, Destination & lodging Booking Airfare, car rental lodging Planning Request visitor guide & destination info. Trip Advisor, Yelp, Twitter, Facebook Page 27 YOUR LOGO

29 When do you connect with arriving guests? From airport to hotel room with no human contact Fly-in Car rental Hotel room From gateway to hotel room with no human contact Drive-in Hotel room Page 28 YOUR LOGO

30 Stay focused, don t get distracted! Observations Mature destination, mature travel market > > Destination life cycle Most travelers within 3-4 hours region know-you or have visited Best target demo - ages 30 65, couples, educated Web/digital marketing is key local, regional state sites TripAdvisor, Facebook, Mobile apps, Yelp, YouTube, Blogs, Pinterest Over ½ book within 30 days Summer maxed out at times Fall, Spring, Winter Shoulder seasons & winter = GROWTH FOCUS: PARTNERSHIP & THE EXPERIENCE YOUR LOGO

31

32 Contact Information Berkeley Young, Young Strategies, Inc Facebook berkeleyyoung LinkedIn berkeleyyoung

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