Loyalty Segmentation of the Canadian Travel Market

Transcription

1 TAMS 2006 Loyalty Segmentation of the Canadian Travel Market Ontario Report June 2 nd, 2007 Presented to Présenté à The Ontario Tourism Marketing Partnership Corp. The Ontario Ministry of Tourism 1

2 Table of Contents FOREWORD... 3 INTRODUCTION TO THE CONVERSION MODEL... 6 EXECUTIVE SUMMARY COMMITMENT OVERVIEW At TNS, we know that being successful in today s dynamic global environment requires more understanding, clearer direction and greater certainty than ever before. While accurate information is the foundation of our business, we focus our expertise, services and resources to give you greater insight into your customers behavior and needs. Our integrated, consultative approach reveals answers beyond the obvious, so you understand what is happening today and what will happen tomorrow. That is what sets TNS apart. Thank you for allowing us to explore your business needs. We hope you will continue to trust TNS to provide the insight you need to sharpen your competitive edge. GENERAL SUMMARY Ontario Residents Detail Quebec Residents Detail Manitoba Residents Detail West Residents (excl. Manitoba) Detail Atlantic Residents Detail LEVERAGING THE KEY OPPORTUNITIES Ontario Residents Committed Vs. Uncommitted Volume Potential of The Segments Travel Drivers and Choices Travel Activities and Interests Commitment Segment Profiles Quebec Residents Committed Vs. Uncommitted Volume Potential of The Segments Travel Drivers and Choices Travel Activities and Interests Commitment Segment Profiles NON-VISITORS IN QUEBEC CURRENTLY OPEN TO ONTARIO

3 Foreword BACKGROUND Tourism is one of Canada s major industries, with the domestic market representing the greatest source of tourism volume. In order to develop marketing strategies and travel products to attract Canadians to destinations within their own country, the Travel Activities and Motivations Survey (TAMS), was conducted approximately four years ago with a significant Canadian component as a complement to the US survey. Since that time, TAMS has proven to be of considerable value in that it provides a comprehensive assessment of travel behaviour and motivators within North America To offer continuity with, and simultaneously build upon, TAMS, an association of government ministries, organizations and tourism/hospitality groups across Canada (the Partnership) have collaborated to conduct a second wave of TAMS research (TAMS2). As a consequence, TNS Canadian Facts and Statistics Canada were commissioned to conduct a travel survey in the US and Canada respectively. OBJECTIVES Specifically, the objectives of this study are to: Establish tourism needs states and define needs-based consumer segments; Assist in better tailoring tourism products to existing needs; Help establish the tone and content of advertising support and related communications; and, Assist in effectively targeting marketing initiatives to specific needs-based and geographic forms of segmentation. 3

4 Foreword (cont d) RESEARCH METHODOLOGY PERTAINING TO THE CANADIAN SURVEY A total sample of 24,692 was achieved in Canada among individuals who completed both the initial RDD telephone survey and the detailed follow-up mail questionnaire. The survey was conducted from January to June 2006.and was designed to represent all individuals 18 years of age and older in Canada s ten provinces. The questionnaire was adapted from the previous TAMS questionnaire, incorporating the current information needs expressed by the Partnership. Prior to the start of fieldwork, the questionnaire was tested qualitatively in Canada during the summer of 2005 to ensure the workability of the questionnaire and to finalize question wording. Minor modifications were made to the questionnaire based on the pretest results. Completed Canadian questionnaires were processed by Statistics Canada. The data were weighted to adjust for design bias and geo-demographic variation in response rates. The following table outlines the number of completions achieved by region. Completions Achieved Atlantic Provinces Quebec Ontario Manitoba Saskatchewan Alberta British Columbia Province Total Completed Questionnaires ,975 8,153 1,561 2,064 2,663 3,470 4

5 Foreword (cont d) For a more complete description of the research methodology, please refer to the Report of the Methodology. THE STUDY FINDINGS Results of the research are presented under the following main headings: Executive Summary General Summary Appendix Questionnaire The Conversion Model NOTE OF CAUTION Data derived from sample populations are subject to variance. In order not to imply an unwarranted degree of precision, all percentage figures in the General Summary have been rounded to whole numbers; therefore, percentages may not total 100. Throughout the General Summary, bold underlines have been used to denote unusually high figures at the 95% confidence level. Further, it should be noted that percentages derived from actual bases of less than 100 respondents should be interpreted with caution, while percentages derived from actual bases of less than 50 should be interpreted with extreme caution. June,

6 Introduction to the Conversion Model 6

7 Introduction to the Conversion Model The Conversion Model provides the traveller segmentation context throughout this report. As such, it is a crucial element of the analytical framework. The concept of the Conversion Model is simple. It is a psychological model that measures the strength of the relationship between people and something else a brand, a service, a political party, a travel destination, and so forth. In the study reported herein, we measured how committed people are to their chosen destinations for leisure travel. The focus is on the commitment to selected destinations within Canada and the US. For more information on the Conversion Model and how to interpret the charts, please refer to the appendix. 7

8 Introduction to the Conversion Model (cont d) Conversion Model segmentation is a powerful tool within the context of consumer research for destination marketing. This model adds value to the data analysis by providing meaningful consumer segments based on their psychological attachment to Canada and competing destinations for vacations or their openess to visiting Canadian versus competing destinations. Exclusive to TNS Canadian Facts, Conversion Model is the leading model for understanding customer commitment and customer acquisition. Used by 80% of the top brands in the world for developing market share acquisition and customer base protection strategies, over 6,000 Conversion Model studies have been conducted since it was first developed. Within the Canadian tourism sector, Conversion Model has been used by a number of clients, including those in the tourism sector. We need to understand which segments travellers are truly open to Canada and which ones are not, and what drives commitment to Canada and competing destinations. How many travellers are available and open to the idea of a vacation trip to Canada? Conversion Model effectively quantifies these issues and provides an accurate portrayal of the consumers in the market that represent the best opportunities for Canada. 8

9 What is the Conversion Model? The Conversion Model segments people into one of eight segments according to the strength of their relationship with the various destinations Visitors Entrenched Average Shallow Convertible Non-Visitors Available Ambivalent Strongly Weakly Unavailable The eight segments are further grouped into four primary segments Committed Visitors Uncommitted Visitors Open Non-Visitors Unavailable Non-Visitors 9

10 Brand Health Indices The commitment, attraction and potential indices are metrics typically used with Conversion Model to give some sense of momentum and potential among brands or, in this case, destinations in the competitive space. These indices are calculated as follows. % committed = committed users/total visitors % attracted = open non-visitors/total aware non-visitors % potential = open non-visitors/(open + uncommitted) Commitment Index (ability to stimulate commitment among visitors) = % committed for brand A Average % committed x 100 Attraction Index = (ability to interest non-visitors) % attracted to brand A Average % attracted x 100 Potential Index (potential to acquire new visitors relative to attrition of existing ones) = % potential for brand A Average % potential x

11 Executive Summary 11

12 Executive Summary With respect to source markets, there is one clear focal point for Ontario when it comes to protecting travel volume generated among Canadians specifically, the retention of frequency and interest among Ontario residents. The domestic (Ontario) market represents the largest pool of travellers in Canada and is also one in which the Ontario brand competes reasonably effectively. The main challenge is to encourage continued regular travel within Ontario among those currently uncommitted to doing so. How is this to be accomplished? The findings in this report point to a number of possibilities with potential for success. 1. From a targeting perspective, cater to the more youthful nature of Uncommitted domestic travellers with some emphasis on sports and participatory activities that challenge the body and mind. 2. Impress them with Ontario s growing strengths on the cultural dimension: Art; Architecture; Museums; Historic sites and exhibits. 3. Invite positive comparisons with BC, the Atlantic Provinces and California. 4. Don t shy away from presenting more remote locations within the province, since ease of access is less of an issue within the Uncommitted segment. Beyond the Ontario source market, Quebec represents the biggest opportunity on paper. However, this possible source of increased tourism volume presents a number of unique challenges as well. Ontario has had difficulty establishing any degree of commitment in this province among those who have visited recently. Moreover, evidence suggests that Uncommitted past visitors will be extremely difficult to motivate sufficiently to encourage repeat visitation in large numbers. Open Non-Visitors, on the other hand, are not especially attractive as potential visitors to the province. Their travel interests are limited and their socio-economic status is below average. All of this suggests a need to review the Quebec strategy and investment in that province. 12

13 Executive Summary (Cont d) Western Canada possibly represents the greatest growth opportunity with respect to attracting new visitors. The pool of Open Non-Visitors is reasonably large in the West, and there are significant opportunities to leverage VFR. However, it should be acknowledged that the long-haul nature of the trip to Ontario represents a potential barrier. It is also likely the case that Western Canadians open to the idea of vacationing in Ontario are likely difficult (expensive) to reach since they are spread among the large numbers of Westerners adamantly opposed to visiting Central Canada. Still, marketing efforts directed to key urban centres might yield some success (Calgary, Edmonton, Vancouver). If there is a sense among Ontario marketers that Westerners are uniformly intransigent, there is sufficient evidence in this study to counter that position. Moreover, positive tourism messages may represent a means of easing tensions that do exist and reintroducing Central Canada to Western Canadians in a positive light. The absence of communication has a tendency to harden negative misperceptions. 13

14 Commitment Overview 14

15 Commitment to Ontario by Region 15

16 Conversion Model TM Brand Health Chart For Ontario by region As might be expected, within Canada Ontario has demonstrated the greatest success at attracting travellers within its own domestic market. In fact, there are few Ontario residents who have not taken at least one overnight trip within the Province during the past two years. The domestic challenge is defined by a need to retain frequent repeat visitation among past visitors. The relatively high commitment level posted among Ontario residents clearly indicates the potential to be successful in this endeavour. In the rest of Canada, the province faces the dual challenge of retaining the interest of past visitors, while also attracting new ones. The growth opportunity (attracting new visitors) is perhaps most prominent in the Atlantic and the West, while the need to retain the interest of past visitors (Uncommitted rather than Open) is more clearly evident in the border provinces - Manitoba and especially Quebec. It should be noted though, that there is a fair amount of resistance to visiting or returning to Ontario across the country, reaching its peak in the Western Provinces and Quebec. This implies significant constraints on the magnitude of growth that can be expected. % Visitors % Non-Visitors Ratio of Committed to Uncommitted Ratio of Open to Uncommitted Ontario Quebec Manitoba Atlantic West Committed Uncommitted Open Aware Unavailable 16

17 Projected Size of the Most Relevant CM Segments For Ontario by region Sheer size of the populations of travellers in play confirms the domestic market as the primary focal point for Ontario within Canada. Retention strategies are therefore key. In the rest of the country, the main effort should be placed on reigniting interest among past visitors in Quebec and, secondarily, the West, and in the latter region particularly, convincing Open non-visitors to choose Ontario in the near future. Projected Population Size of Each Segment (in thousands) Ontario Quebec Manitoba Atlantic West Committed Visitors 1,543 Uncommitted Visitors Open Non-Visitors 4, , Unavailable Non-Visitors 2, ,215 17

18 General Summary Ontario Residents Detail 18

19 Commitment Segmentation Ontario Residents 19

20 Strength Of Commitment To The Destinations Visited Among visitors from Ontario in each case When focusing just on past visitors to specific destinations among residents of Ontario, there is evidence that the Province s capacity to stimulate enthusiasm and exceed the expectations of visitors is modestly positive, placing it in the the middle of the pack among the destinations assessed. The relatively high proportion of Convertible visitors (those with very little psychological reason to choose Ontario again) is cause for concern, however, particularly when compared with destinations such as Hawaii, but also some of those closer to home, such as British Columbia and Newfoundland. Ontario is evidently a convenient choice, but not one that operates in the realm of the ideal for most residents. % Committed % Uncommitted Hawaii Newfoundland and Labrador British Columbia Arizona New Brunswick Florida California Ontario Nova Scotia Alberta Colorado Quebec New York State Prince Edward Island Saskatchewan Manitoba Note: Only destinations with >76 visitors are shown Entrenched Average Shallow Convertible 20

21 Summary Of The Overall Positions Of Destinations Among total travellers resident in Ontario Convenience (and the related factors of cost and familiarity), nonetheless, has a very significant part to play in directing behaviour. When examining each destination s standing within the total Ontario population (rather than focusing just on visitors of each), Ontario emerges as the market leader by a wide margin with respect to the penetration level achieved overall and in terms of the absolute number of Committed travellers maintained. Quebec, followed by Florida and New York State are well behind. This being said, a number of competitive destinations, though weakly penetrating the market at the present time, exhibit significant potential to eat into Ontario s share. British Columbia, the Yukon, Newfoundland and Labrador, Arizona and Hawaii, all exhibit above average capacity to stimulate commitment and either in the absolute or in a relative sense, significant opportunity to grow within the Ontario market. Moreover, BC Nova Scotia, California and Hawaii, rival Ontario with respect to their ability to stimulate interest among Ontario residents who have not visited.. (See Following Chart) 21

22 Summary Of The Overall Positions Of Destinations Among total travellers resident in Ontario (continued) % Visitors % Non-Visitors Commitment Index Potential Index Attraction Index Ontario Quebec Florida New York State British Columbia New Brunswick Alberta Prince Edward Island Nova Scotia California Manitoba Newfoundland and Labrador Arizona Saskatchewan Hawaii Colorado Yukon Northwest Territories * Committed Uncommitted Open Unavailable Read: For Ontario: 23% of the market is Committed, 61% is Uncommitted, 8% is Open & 9% is Unavailable. Commitment is 6 points above the market average, Potential is 84 points below the market average, and Attraction is 41 points above the market average. 22

23 Conversion Model Brand Health Bubble Map Among total travellers resident in Ontario The bubble map shown below demonstrates that Ontario s standing among its own residents is relatively strong and stable as a leading brand. However, to generate increased volume domestically, it will likely be necessary to raise the level of commitment. By contrast, Quebec and New York State have limited growth potential among Ontarians, while BC, New Brunswick, Newfoundland, Hawaii and the US Southwest are positioned to grow Delivery Problems? Good potential, but low Commitment amongst visitors. Do these destinations fail to deliver once visited? Colorado California NWT Yukon Arizona Nfld. & Lab. Good Position High Commitment and good potential for further growth Hawaii Potential Sask. PEI Manitoba New York State Quebec Nova Scotia Average Alberta Florida New Brunswick Ontario British Columbia 20 0 Poor Position Low Commitment and potential Strong Position Leading destinations with high Commitment Commitment Note: Bubble size represents penetration 23

24 General Summary Quebec Residents Detail 24

25 Commitment Segmentation Quebec Residents 25

26 Strength Of Commitment To The Destinations Visited Among visitors from Quebec in each case In Quebec, Ontario has significant difficulty stimulating commitment o return among recent visitors. There are no Entrenched visitors from Quebec and a relatively high proportion of Uncommitted. In these terms, Ontario stands in sharp contrast to British Columbia, which surpasses even Quebec itself with respect to generating a strong commitment ratio among Quebecers who have recently visited. British Columbia Arizona California Quebec Colorado Newfoundland and Labrador Florida Alberta New York State Nova Scotia New Brunswick Prince Edward Island Ontario Manitoba Saskatchewan % Committed % Uncommitted *Caution: Small base size Note: Only destinations with >33 visitors are shown Entrenched Average Shallow Convertible 26

27 Summary Of The Overall Positions Of Destinations Among total travellers resident in Quebec When the Quebec market is considered as a whole, Ontario is well established as the second most commonly selected destination, after Quebec itself. Still, Ontario stands out among all of the destinations assessed as one that elicits little passion and maintains little growth momentum. Other regions of North America, particularly to the west (and including BC), appear to be far more enticing to Quebecers. % Visitors % Non-Visitors Commitment Index Potential Index Attraction Index Quebec Ontario Prince Edward Island Florida New York State Nova Scotia British Columbia New Brunswick Alberta California Saskatchewan Arizona Manitoba Newfoundland and Labrador Hawaii Colorado Yukon Northwest Territories * 18 * * Committed Uncommitted Open Unavailable Read: For Ontario: 4% of the market is Committed, 31% is Uncommitted, 14% is Open & 52% is Unavailable. Commitment is 55 points below the market average, Potential is 60 points below the market average, and Attraction is 23 points below the market average. 27

28 Conversion Model Brand Health Bubble Map Among total travellers resident in Quebec Ontario s vulnerability in the Quebec market is clearly evident in the chart shown below. Ontario is isolated in the lower-left quadrant with a relatively high level of penetration. This suggests considerable potential for erosion to competitors. By contrast, Quebec is well positioned as the leading brand in its home province (better positioned, in fact, than is Ontario domestically) Delivery Problems? Good potential, but low Commitment amongst visitors. Do these destinations fail to deliver once visited? Good Position High Commitment and good potential for further growth New Brunswick Manitoba Sask. PEI Yukon Colorado California Nova Scotia Nfld. & Lab. Alberta Average Florida Arizona Hawaii British Columbia NWT Potential Ontario New York State Quebec 20 0 Poor Position Low Commitment and potential Strong Position Leading destinations with high Commitment Commitment Note: Bubble size represents penetration 28

29 General Summary Manitoba Residents Detail 29

30 Commitment Segmentation Manitoba Residents 30

31 Strength Of Commitment To The Destinations Visited Among visitors from Manitobain each case Ontario also stimulates little passion in Manitoba. The proportion of recent visitors uncommitted to returning is quite high, not only when compared with exotic locations such as Hawaii and California, but also in relation to provinces such as Nova Scotia, New Brunswick and British Columbia. Moreover, many of those uncommitted to returning to Ontario are on the very cusp of attrition (Convertible). Quebec has a similar problem among Manitobans, but despite being more distant, has still had greater success than Ontario in stimulating commitment to return. % Committed % Uncommitted Hawaii California Arizona British Columbia Nova Scotia New Brunswick Quebec Florida New York State Alberta Ontario Colorado Prince Edward Island Manitoba Saskatchewan *Caution: Small base size Note: Only destinations with >25 visitors are shown Entrenched Average Shallow Convertible 31

32 Summary Of The Overall Positions Of Destinations Among total travellers resident in Manitoba Travellers in Manitoba tend to view Ontario similarly to Alberta and more positively than Saskatchewan and their own province in terms of psychological endorsement. None of these destinations is a stellar performer in this regard. Penetration scores are reasonably strong, but this seems to be largely a function of proximity, convenience, cost and expediency rather than real preference. Support is soft and it would seem, therefore, that in the case of Manitobans, familiarity or perceived similarity to their own province breeds disinterest. By way of contrast, B.C. is a standout in terms of its ability to stimulate openness to visiting and commitment to return. Manitoba Ontario Alberta Saskatchewan British Columbia Quebec California Florida New Brunswick Prince Edward Island Arizona Nova Scotia Colorado New York State Hawaii Newfoundland and Labrador Yukon Northwest Territories 8 % Visitors % Non-Visitors Committed Uncommitted Open Unavailable Commitment Index Potential Index Attraction Index Read: For Ontario: 8% of the market is Committed, 37% is Uncommitted, 22% is Open & 33% is Unavailable. Commitment is 12 points below the market average, Potential is 51 points below the market average, and Attraction is 5 points below the market average. 32

33 Conversion Model Brand Health Bubble Map Among total travellers resident in Manitoba There clearly exists a great divide in Manitoba, between destinations with limited growth potential (bottom left) and those with significant growth momentum (top right). Unfortunately, Ontario falls into the former category. The Province is, however, reasonably well placed to attract better return rates among past visitors, short-term, through effective promotion and image building most notably asd an alternative to Manitoba itself Delivery Problems? Good potential, but low Commitment amongst visitors. Do these destinations fail to deliver once visited? Colorado PEI New Brunswick New York State Nova Scotia NWT Florida Quebec Good Position High Commitment and good potential for further growth Nfld. & Lab. Arizona California Hawaii Yukon 100 Average British Columbia Potential Sask. Manitoba Alberta 20 0 Poor Position Low Commitment and potential Ontario Strong Position Leading destinations with high Commitment Commitment Note: Bubble size represents penetration 33

34 General Summary West Residents (excl. Manitoba) Detail 34

35 Commitment Segmentation West Residents (excl. Manitoba) 35

36 Strength Of Commitment To The Destinations Visited Among visitors from the West (excl. Manitoba) in each case To be blunt, Ontario does not stimulate a great deal of interest in returning among recent visitors from Western Canada. To be sure, it performs better than Manitoba and Saskatchewan in this regard, but with the exception of these two provinces, is among the weakest performers in one key area the number of visitors imminently convertible to competitive destinations. Moreover, its capacity to stimulate commitment appears to be relatively weak when compared with British Columbia and many destination in Eastern Canada and the US. Hawaii Newfoundland and Labrador British Columbia Yukon Arizona New Brunswick New York State California Quebec Nova Scotia Alberta Ontario Prince Edward Island Florida Saskatchewan Northwest Territories Colorado Manitoba *Caution: Small base size % Committed % Uncommitted Entrenched Average Shallow Convertible

37 Summary Of The Overall Positions Of Destinations Among total travellers resident in the West (excl. Manitoba) The challenge faced by Ontario in Western Canada is illustrated by the fact that its penetration of this market is below that evident in any other region of the country. Moreover, while Ontario has some potential to win new visitors, it is under-developed in this regard relative to the competition. It not only stimulates commitment among visitors at below average rates, but also has difficulty convincing non-visitors to consider an Ontario vacation. As a consequence, all of the the Province s performance indices are below norm. It might be concluded, then, that while opportunity exists in Western Canada, the challenge of realizing this potential is daunting. British Columbia Alberta Saskatchewan Ontario California Manitoba Quebec Hawaii Florida Arizona New Brunswick New York State Prince Edward Island Nova Scotia Yukon Newfoundland and Labrador Northwest Territories Colorado % Visitors % Non-Visitors Committed Uncommitted Open Unavailable Commitment Index Potential Index Attraction Index Read: For Ontario: 3% of the market is Committed, 14% is Uncommitted, 20% is Open & 63% is Unavailable. Commitment is 37 points below the market average, Potential is 23 points below the market average, and Attraction is 25 points below the market average. 37

38 Conversion Model Brand Health Bubble Map Among total Among total travellers resident in the West (excl. Manitoba) When charted in two-dimensional space, it is evident that Ontario s brand positioning requires improvement in Western Canada. However, while the Province currently has limited room for maneuverability, it could realize some growth by targeting Alberta. British Columbia, by contrast, is in a strong, established position and likely quite immune to aggressive marketing initiatives taken by Ontario. Potential Delivery Problems? Good potential, but low Commitment amongst visitors. Do these destinations fail to deliver once visited? Colorado NWT Manitoba Sask. PEI Nova Scotia Florida Average Ontario Alberta Quebec New Brunswick California Yukon Arizona New York State Nfld. & Lab. Good Position High Commitment and good potential for further growth British Columbia Hawaii 20 0 Poor Position Low Commitment and potential Strong Position Leading destinations with high Commitment Commitment Note: Bubble size represents penetration 38

39 General Summary Atlantic Residents Detail 39

40 Commitment Segmentation Altantic Residents 40

41 Strength Of Commitment To The Destinations Visited Among visitors from the Atlantic Provinces in each case In Atlantic Canada, it is British Columbia, California and Newfoundland and Labrador that stimulate the strongest positive psychological responses among their respective visitors. Ontario is placed well down the list in this regard, on par with immediate regional competitors such as Quebec and New York State as well as some of the Maritime Provinces, namely PEI and Nova Scotia. (The latter are possibly regarded as offering insufficient diversity or difference relative to one s normal, day to-day environment to warrant an extended trip). Of some interest, Manitoba and Saskatchewan may have the most significant issues with regard to delivering adequately to Atlantic Canadians. % Committed % Uncommitted Newfoundland and Labrador California British Columbia Florida Arizona New Brunswick Alberta New York State Ontario Nova Scotia Prince Edward Island Quebec Saskatchewan Manitoba *Caution: Small base size Note: Only destinations with >30 visitors are shown Entrenched Average Shallow Convertible 41

42 Summary Of The Overall Positions Of Destinations Among total travellers resident in the Atlantic Provinces Ontario has been successful at penetrating the Atlantic marketplace in the recent past, but may have reached its limit in terms of capacity to grow. The pool of Open Non-visitors is somewhat smaller than the number of past visitors uncommitted to returning, and many Atlantic Canadians (43%) are effectively unavailable. In this respect, Ontario performs similarly to Nova Scotia, and the other backyard Maritime Provinces. % Visitors % Non-Visitors Commitment Index Potential Index Attraction Index New Brunswick Prince Edward Island Ontario Nova Scotia Newfoundland and Labrador Quebec Florida Alberta British Columbia New York State California Saskatchewan Arizona Manitoba Colorado Hawaii Yukon Northwest Territories Committed Uncommitted Open Unavailable Read: For Ontario: 7% of the market is Committed, 27% is Uncommitted, 23% is Open & 43% is Unavailable. Commitment is 12 points below the market average, Potential is 36 points below the market average, and Attraction is 7 points above the market average. 42

43 Conversion Model Brand Health Bubble Map Among total travellers resident in the Atlantic Provinces The following bubble chart demonstrates that Ontario s standing in Atlantic Canada is not unlike its position elsewhere in the country (with the exception of Ontario itself). It has difficulty differentiating itself as an exciting region capable of meeting expectations and providing good reason to return Delivery Problems? Good potential, but low Commitment amongst visitors. Do these destinations fail to deliver once visited? NWT Manitoba Colorado Arizona Yukon BC Good Position High Commitment and good potential for further growth California Hawaii 120 Sask. Alberta NY State Florida Nfld. & Lab. Potential Quebec Nova Scotia PEI Average Ontario New Brunswick 20 0 Poor Position Low Commitment and potential Strong Position Leading destinations with high Commitment Commitment Note: Bubble size represents penetration 43

44 Leveraging The Key Opportunities 44

45 Leveraging Key Opportunities Evidence presented in this section of the report focuses on the key opportunity areas for Ontario when it comes to retaining the allegiance and continued support of recent visitors. Geographically, the essential focal points are Ontario and Quebec. It is here that the need to shore up support and the possible benefits of re-commitment are greatest. Results suggest that Ontario does not have top re-invent itself in order to remain relevant to its own residents. Investment in the cultural/historical product offers the potential to rekindle the interest of those who are currently uncommitted to a trip within the province at any time in the near future. What is required, is some emphasis placed on a youthful ambiance and participatory activities that are fun and, to some degree, challenging. The affluence and travel frequency of Ontario s Uncommitted residents, suggests good possibilities for growth. The same can not be said of the Uncommitted in the Quebec market. Personal profile characteristics may be favourable, but Ontario would have to bridge a very significant perceptual gulf in order to encourage large numbers to return any time soon, however briefly. These travellers are likely to consider a range of other options first, and are fairly closely tied to their own province as a source of travel experiences akin to those that they perceive to exist in Ontario. (See Following Charts) 45

46 Ontario Residents Committed Vs. Uncommitted 46

47 Volume Potential of The Segments Ontario Residents Frequency of travel 47

48 Frequency of Pleasure Travel Ontario Residents Number of Overnight Pleasure Trips Taken In Past 2 Years Committed Visitors Percent Of Uncommitted Visitors Difference One Two Three Four Five of More

49 Travel Drivers and Choices Among Ontario Residents Understanding what motivates those committed to Ontario 49

50 Differentiating Motivations: Vacation Benefits Sought Ontario Residents Percent Of Stating HIGHLY IMPORTANT Vacation benefits: Committed Visitors Uncommitted Visitors Difference Get a break from your day- to-day environment ±0 Relax and relieve stress Enrich relationship with spouse/ children Create lasting memories Keep family ties alive Have a life with no fixed schedule See or do something different Enrich your perspective on life Gain knowledge Renew connections with people Stimulate your mind To be physically challenged Have stories to share back home To be pampered Seek solitude and isolation Significant difference at 95% level of confidence 50

51 Differentiating Motivations: Importance of Destination Characteristics Ontario Residents Destination Characteristics: Percent Of Stating HIGHLY IMPORTANT Committed Uncommitted Visitors Visitors Difference Feeling safe No health concerns Convenient access by car Lots for adults to see and do Direct access by air Information about the destination online Low cost package deals Lots for children to see and do Familiar with the culture and language Great shopping opportunities Convenient access by train/ bus Having friends or relatives there Disabled person friendly Very different culturally than yours Significant difference at 95% level of confidence 51

52 Assessment of Potential Destinations for Overall Appeal Ontario Residents Percent Of Giving High Rating (8,9 or 10) Specific Destinations: Committed Visitors Uncommitted Visitors Difference Ontario British Columbia Nova Scotia Hawaii Prince Edward Island Florida Quebec Alberta ±0 California Newfoundland And Labrador New Brunswick New York State Arizona Yukon Colorado Northwest Territories Manitoba Nunavut ±0 Saskatchewan Significant difference at 95% level of confidence 52

53 Travel Activities and Interests Ontario Residents 53

54 Travel Activities Differentiating* Committed From Uncommitted Ontario Visitors Ontario Residents Any Travel Activity (2 Years): Percent Of. Com mitted Uncommitted Went to fruit picking at farms / open fields Viewing northern lights 9 6 Fishing - ice fishing 8 5 ATV (sub-net) 9 7 Hiking (sub-net) Buildings / architecture in city Art galleries Winter outdoor (net) Kayaking or canoeing - freshwater Skiing (sub-net) Museum (sub-net) Exhibits/historic (net) Difference *Difference significant at.05 54

55 Commitment Segment Profiles Ontario Residents 55

56 Socio-Economic Profile: Income Ontario Residents Household Income : Committed Visitors Percent Of Uncommitted Visitors Difference Under $20, ±0 $20,000 To $39, $40,000 To $59, $60,000 To $79, ±0 $80,000 To $99, $100,000 Or More Not Stated Significant difference at 95% level of confidence 56

57 Age and Gender Profile Ontario Residents Travel Gender and Age Committed Visitors Percent Of Uncommitted Visitors Difference Gender: Male Female Age: years years years ± years years years Significant difference at 95% level of confidence 57

58 Quebec Residents Committed Vs. Uncommitted 58

59 Volume Potential of The Segments Quebec Residents Frequency of travel 59

60 Frequency of Pleasure Travel Quebec Residents Number of Overnight Pleasure Trips Taken In Past 2 Years Committed Visitors Percent Of Uncommitted Visitors Difference One Two Three Four Five of More

61 Travel Drivers and Choices Among Quebec Residents Understanding what motivates those committed to Ontario 61

62 Differentiating Motivations: Vacation Benefits Sought Quebec Residents Percent Of Stating HIGHLY IMPORTANT Destination Characteristics: Committed Visitors Uncommitted Visitors Difference Get a break from your day- to-day environment Relax and relieve stress Create lasting memories Enrich your relationship with your spouse/partner/children See or do something different Have a life with no fixed schedule Keep family ties alive Enrich your perspective on life Gain knowledge ±0 To be pampered Have stories to share back home Renew connections with people Stimulate your mind To be physically challenged Seek solitude and isolation Significant difference at 95% level of confidence 62

63 Differentiating Motivations: Importance of Destination Characteristics Quebec Residents Destination Characteristics: Percent Of Stating HIGHLY IMPORTANT Co-mitted Uncommitted Visitors Visitors Difference Convenient access by car Feeling safe Lots for adults to see and do No health concerns Direct access by air Information about the destination online Low cost package deals Very different culturally than yours Convenient access by train/bus Lots for children to see and do Familiar with the culture and language Great shopping opportunities Having friends or relatives living Disabled person friendly Significant difference at 95% level of confidence 63

64 Assessment of Potential Destinations for Overall Appeal Quebec Residents Percent Of Giving High Rating (8,9 or 10) Specific Destinations: Committed Visitors Uncommitted Visitors Difference Ontario Quebec British Columbia Florida Hawaii California New York State New Brunswick Prince Edward Island Arizona Alberta Nova Scotia Colorado Yukon Northwest Territories Newfoundland And Labrador Manitoba Saskatchewan Nunavut Significant difference at 95% level of confidence 64

65 Travel Activities and Interests Quebec Residents 65

66 Travel Activities Differentiating* Committed From Uncommitted Ontario Visitors Quebec Residents Any Travel Activity (2 Years): Percent Of. Com mitted Uncommitted Difference + Golfing (sub-net) Ice-skating Garden theme park Health spa Comedy festivals Exhibits/historic (net) *Difference significant at.05 66

67 Commitment Segment Profiles Quebec Residents 67

68 Socio-Economic Profile: Income Quebec Residents Household Income : Committed Visitors Percent Of Uncommitted Visitors Difference Under $20, $20,000 To $39, $40,000 To $59, $60,000 To $79, $80,000 To $99, $100,000 Or More Not Stated Significant difference at 95% level of confidence 68

69 Age and Gender Profile Quebec Residents Travel Gender and Age Committed Visitors Percent Of Uncommitted Visitors Difference Gender: Male Female Age: years years years years years years Bases: Committed Visitors n=234, Uncommitted Visitors n=

70 Non-Visitors in Quebec Currently Open to Ontario 70

71 The Open Non-Visitor Opportunity in Quebec Quebec travellers who are open to Ontario are undistinguished in terms of their travel activities and interests. fewer travel-related needs no defining or differentiating activities generally fewer activity motivators fewer frequent travellers within this group Demographically, they aren t especially attractive lower socio-economic status heterogeneous with respect to age far more 18 to 24 year olds relative to visitors but similar proportion of and

72 Salient Features Open Non-Visitors in Quebec Socio-Demographics: Percent Of Open Non-Visitors With University Degree 22% -16% Difference Vs. Visitors Years 23% Years 34% 65+ Years 12% Travel Motivators: Enrich Perspective On Life 23% Stimulates Mind/Intellectually Challenging 12% Gain Knowledge 22% -10% -7% -7% -2% -2% +14% Number Of Overnight Trip In Past-2-Years: Under 5 60% 5 Or More 40% -20% +20% Number Of Travel Activities Over-Indexed Vs. Visitors Number Of Travel Activities Under-Indexed Vs. Visitors

73