University of Massachusetts Amherst ScholarWorks@UMass Amherst Tourism Travel and Research Association: Advancing Tourism Research Globally 2013 Marketing Outlook Forum - Outlook for 2014 Outlook on the Attractions Industry Jerry Henry H2R Market Research Follow this and additional works at: http://scholarworks.umass.edu/ttra Henry, Jerry, "Outlook on the Attractions Industry" (2016). Tourism Travel and Research Association: Advancing Tourism Research Globally. 20. http://scholarworks.umass.edu/ttra/2013marketing/presentations/20 This Event is brought to you for free and open access by ScholarWorks@UMass Amherst. It has been accepted for inclusion in Tourism Travel and Research Association: Advancing Tourism Research Globally by an authorized administrator of ScholarWorks@UMass Amherst. For more information, please contact scholarworks@library.umass.edu.
Outlook on the Attractions Industry Presented by: Jerry Henry, President and CEO, H2R Market Research For more information, contact Jerry at jhenry@h2rmarketresearch.com October 28-30, 2013 ~ The Drake Hotel ~ Chicago, Illinois, USA
TTRA OUTLOOK FORUM: Outlook on the Attractions Industry Prepared by Jerry Henry H 2 R Market Research October 2013
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Overview Attraction Industry Performance in 2012. Emerging trends developing in response to changing consumer behaviors. Outlook for 2014
RESULTS Aggregate U.S. Attractions visitation was up 2.4% in 2012 much better than the 0.7% decrease in 2011. Source: H 2 R Market Research
Most Segments of the Attractions Industry Posted Increases in 2012 Zoos Botanical Garden Aquariums Science Centers Theme Parks Water Parks State/national park Museums Major sporting events Historic sites Musical theater Art Museums -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Source: TEA/AECOM, Morey & Associates, Broadway League, ESPN, NPS, H2R Market Research
Worldwide Theme Park & Museum Attendance Category Variance 2012 2011 Theme Park Groups Worldwide +6.7% 357.8M 335.2M Top 25 Theme Parks Worldwide +5.2% 205.9M 195.7M Top 20 Water Parks Worldwide +5.4% 25.0M 23.7M Top 20 North American Theme Parks +3.6% 131.5M 127.0M Top 10 Latin American Theme Parks +2.6% 13.2M 12.9M Top 20 Asian-Pacific Theme Parks +5.8% 108.7M 103.2M Top 20 European Theme Parks -0.3% 58.0M 58.2M Top 20 North American Water Parks +2.2% 15.4M 15.1M Top 15 Asian-Pacific Water Parks +7.4% 16.0M 14.9M Top 20 Museums Worldwide 98.5M Top 20 Museums in North America 57.0M Top 20 Museums in Asia-Pacific 41.6M Top 20 Museums in Europe 71.5M Source: TEA/AECOM 2012 Global Attendance Source: TEA/AECOM 2012 Global Attendance
Destination vs Regional Park Performance 5.0% 4.6% 4.0% 3.0% 2.8% 2.0% 1.0% $83.26 $57.70 0.0% Destination Parks Regional Parks Source: TEA/AECOM 2012 Global Attendance; H2R Market Research
2013 figures will not be out until June 2014. But, early indicators are strong.
2013 YTD Snap Shot: Attendance Trends at Attractions I m Working With This Year State/National Parks Theme/Amusement Parks Shows/Theaters Excursions/Sightseeing Aquariums/Zoos Water Parks -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0%
2013 YTD Snap Shot: Performance Trends at Attractions I m Working With This Year 2.0% 1.5% 1.6% 1.0% 0.5% 0.4% 0.0% Urban Attractions Rural Attractions Source:H2R Market Research
As the industry regains traction, emerging trends become a focal point again.
TRENDS 9 EMERGING GLOBAL ATTRACTION TRENDS 1. Reinvestment. 2. Blurred Lines. 3. Architectural Facelifts. 4. Optimizing the GX. 5. Entertaining Queue Lines. 6. Demographics 7. VIP Experiences. 8. Technology. 9. Leveraging Guest Information.
TREND 1 REINVESTMENT It takes money to make money.
Great Recession is in the rearview mirror. Attractions worldwide have entered the Post-Harry Potter Era now.
Rijksmuseum Natural History Museum MD Science Center
TREND 2 BLURRED LINES New capital is not just delivering more of the same.
Experiences are becoming deeper, more enhancedand blurred. Zoos are adding rides. Theme parks are adding animals. Museums are adding 4D movie experiences.
EXPERIENTIAL DESIGN Designing environments with a focus placed on the quality of the user experience. MORE INTRICATE STORYLINES Obscure characters & detailed storylines are popping up more places as attractions seek to become more relevant to kids in the age of video games, smartphones & 3D TVs. UNIVERSAL DESIGN Broad spectrum of ideas meant to manage environments that are accessible to older adults and people with and without disabilities.
TREND 3 ARCHITECTURAL FACELIFTS Some capital is just surface deep.
McDonalds $ 1 Billion makeover. Attractions soon joined in.
Even those with iconic facades have upgraded. Bigger, Better and More Eye Catching
TREND 4 OPTIMIZING THE GX The product is not the only focus. Attractions are more guest-centric.
The experience is becoming the marketing. Traditional marketing is dying But, good is not good enough. Must be share worthy. Retention is the new acquisition. Source: Purple GoldFish, Stan Phelps
Pain points negatively impact the guest experience. Biggest pain points across industry are: Rude or indifferent employees Dirty restrooms Rides/exhibits not operational Overly aggressive tour guides/sales people Long lines/waits Source: PGAV Destinology; H 2 R Market Research
Test before you invest. New product concept testing is the norm. Enlist consumer input before ideation, during concept vetting and in the selection process.
TREND 5 ENTERTAINING QUEUE LINES Attractions have begun taking one of guests biggest pain points seriously.
Queue lines at U.S. attractions are getting longer. Some are investing big money to make wait time less boring, more comfortable.
Fact is, guests expect lines. They just want to know management is doing everything they can to alleviate the situation.
TREND 6 DEMOGRAPHICS A sea change is upon us that is going to impact every attraction.
Changing faces. Older. More Diverse. Fewer Family HHs. More Multigenerational HH Trips. More Travelers, Fewer Locals in 2013. Higher Incomes. Source: U.S. Census Bureau; H 2 R Market Research
Millennials Younger Millennials are changing the game. Lower incidence at theme parks & other attractions. Connection is key. Older Millennials who are marrying, having kids are converting. Long-term prognosis is positive.
Bulk of visitors are middle class. But, there s been a shift toward providing those with money even more... Innovative, unique and luxurious experiences.
TREND 7 VIP EXPERIENCES Wealthier visitors have the money and desire for upscale experiences.
Splurge travel is back to pre-recession levels. But, the inspiration is different this time. More about stress reduction & control. Less about personal enrichment. Recent data suggests the trends will only grow larger. Source: PGAV Destinology, H 2 R Market Research
VIP Tours Tour Guide Facilitates Entire Visit Exclusive front-of-the-line ride access Priority parking VIP admission & badge 2 complimentary on-ride photos Lunch or Dinner Unlimited Soft Drinks Priority live show seating
Museum VIP Tours Europe (Starting at $332 pp) NAQ Penguin Encounter Cincinnati ($25 pp) Lujan Zoo Argentina (US $84 pp) San Diego Zoo San Diego ($599 for up to 5 hours) American Museum of Natural History New York ($500 for up to 5 people)
TREND 8 TECHNOLOGY Influencing both front stage & back stage consumer environments.
Fundamental shift in human behavior. Experience used to exist only in the moment... now lives along a timeline. Broadcasting life experiences is a form of social expression, conversation & status among friends Source: WhiteHutchinson.com, Randy White
Dynamic Pricing being used to help optimize revenue management Variable pricing by season, week of month or day of week. Make big days bigger revenue days Day-part pricing Higher prices as new products are introduced Guest segmentation & targeting. Source: Magellan Strategy Group, Chris Cavanaugh
Digital elite account for 34% of travelers. Digital elite are those with smartphones & tabletsthe number has tripled since 2011. Far more engaged in smartphone activities, e.g. find an attraction, navigation, monitor latest info, etc. Source: MMGY Digital Traveler, Harrison Group
Technology is also impacting the GX Abraham Lincoln Presidential Library & Museum. Ghosts in the Library. Dramatic & magical special effects using Hologram technology. Union Theater- multivenue special effects. Live Performances
High Museum of Art: ArtClix! Explore art from Picasso to Warhol on your High Museum s Smartphone app, ArtClix! Integration of photorecognition and social media -total interactive experience. Snap images of artwork to access text and audio. Create personalized post cards to share with friends. Engage with museum staff about the exhibition.
TREND 9 LEVERAGING GUEST INFO Leveraging guest insight & personal information to provide better experiences.
Disney s $1 Billion+ MyMagic Program MagicBands are rubber bracelets that are: All-in-one theme park tickets Room Keys Credit Cards FastPass+ RFID sensors trigger unique moments at attractions. Source: Orlando Sentinel, 8.23.13 Spend larger share of wallet at Disney, Spur incremental spending on-park, and Cull far more personal data about its guests to enable it to customize more sales offers.
Not Just Disney. Big Data is Revolutionizing Business. The NSA is not the only one recording your every move. Big business tracks your every move, keystroke, transaction, etc.
VOC Programs are using many new tools to dig deeper. Online triads/quads Online bulletin boards Online video diaries Social listening
Net Promoter Score Measure of customer happiness. Subtract brand detractors (0-6) from promoters (9-10) to get a net score. NPS is one of the only KPI s you need to track. It correlates closely with corporate growth rates. Source: Fred Reichfield
The aggregate attractions industry has a Net Promoter Score of 43%. NPS by Consumer Segment 45% 6% NPS: 43% 49% Promoters (9-10) Neutral (7-8) Detractors (0-6) Planetarium Water Parks Botanical Garden Museums State/national park Zoos Art Galleries Theme Parks Aquariums Symphony/opera/concert Special events or festivals Historic sites Science Centers Casino/gaming Old homes/mansions Family Entertainment Major sporting events Live music theater Other 9% 75% 63% 60% 57% 57% 53% 50% 47% 45% 44% 43% 42% 40% 36% 33% 33% 26% 47% Source: PGAV Destinology, H 2 R Market Research
OUTLOOK Looking to 2014: Longer drive vacations Continued growth of VIP experiences Fresh, different wins the day Greater focus on optimizing the GX
H 2 R Market Research Attraction s Industry Forecast Annual Aggregate Variance 3.5% 3.0% 2.5% 2.4% 2.7% 3.0% 2.0% 1.5% 1.0% 0.5% 0.5% 0.9% 0.7% 0.0% -0.5% -1.0% -0.7% 2008 2009 2010 2011 2012 2013f 2014p Source: H 2 R Market Research
Summary of Emerging Global Attraction Industry Trends 1. Reinvestment 2. Blurred Lines 3. Architectural Facelifts 4. Optimizing the GX 5. Entertaining Queue Lines 6. Demographics 7. VIP Experiences 8. Technology 9. Leveraging Guest Information
Key Takeaways 1. Aggregate attraction industry performance is improving. 2. Changing demographics are causing a sea change. 3. The composition of attraction experiences is evolving rapidly to provide more immersive, deeper connections with guests. 4. The industry is becoming far more consumercentric optimizing the guest experience, minimizing pain points & leveraging information.
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