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Covered in this Webinar
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Top Niches
Niche Sales and Size
How Niches Are Marketed
Most Lucrative Niches Currently and in the Future
Marketing Tools Provided By ASTA
Finding ASTA data
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73% of Agents Report That Niches Are Important to Their Business
Most Important Niche Market(s)
ALL Respondents
Most Important Niche Market(s)
ALL Respondents
Cruise (Ocean) 32% Religious/Pilgrimage 3% All-Inclusives/Resorts 26% Culinary 2% Luxury 21% Gay & Lesbian (LGBT) 2% Tours 14% Senior/Mature Adults/Disabled 2% Group 13% Meetings/Planning Events 2% Destination Specialist for One Country, Region or City 13% Student/Youth 2%
Cruise (River, Canal) 12% Asian-Americans 1% Destination Weddings and Honeymoons 10% Hispanic-Americans 1% Disney 10% Nature/national parks 1% Family/Multi-Generational 8% Volun-tourism 1% Managed Corporate Travel 7% Green/Sustainable Travel 0.3% Un-Managed Corporate Travel 6% Medical 0.3% Cultural, Heritage & Educational 6% Spa/Fitness 0.3% Adventure 5% African-Americans 0.0% Safari 5% NA - Leisure Generalist Only 27% Incentive Travel 3%
© ASTA 2014
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Top Niches Are as Expected When Sorted By Agency Type
Top 20 Niches Only ALL Respondents
Independent Agent (incl. ICs)
Retail Leisure Agency (70%+)
Corporate Agency (70%+)
Cruise (Ocean) 32% 46% 28% 4%
All-Inclusives/Resorts 26% 23% 29% 13%
Luxury 21% 21% 22% 25% Tours 14% 15% 15% 0% Group 13% 10% 14% 21% Destination Specialist for One Country, Region or City 13% 15% 14% 8%
Cruise (River, Canal) 12% 15% 13% 0% Destination Weddings and Honeymoons 10% 7% 13% 0% Disney 10% 11% 10% 0% Family/Multi-Generational 8% 11% 9% 0% Managed Corporate Travel 7% 0% 2% 54% Un-Managed Corporate Travel 6% 3% 2% 33% Cultural, Heritage & Educational 6% 6% 5% 0% Adventure 5% 5% 5% 0% Safari 5% 5% 5% 0% Incentive Travel 3% 1% 4% 8% Religious/Pilgrimage 3% 3% 2% 8% Culinary 2% 4% 2% 0% Gay & Lesbian (LGBT) 2% 2% 2% 4%
© ASTA 2014
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Hawaii, Europe, Italy and UK Top Niche Destinations
Top 20 Niche Destinations % Share of Responses
Hawaii 8% Europe 5% Italy 5% United Kingdom 5% France 3% Ireland 3% Mexico 3% New Zealand 3% South Pacific 3% Australia 2% Austria 2% Caribbean 2% India 2% Scotland 2% South America 2% Southeast Asia 2% Sri Lanka 2% Switzerland 2% Walt Disney World/Orlando 2% Africa 1%
© ASTA 2014
52 separate destinations were listed as a niche destination.
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Some Agencies Very Dependent on Niche Sales
Niches Extremely
Important (more than 75% of sales)
Niches Extremely
Important (more than 75% of sales)
Hispanic-Americans 50% Incentive Travel 18%
Asian-Americans 50% Tours 17% Religious/Pilgrimage 44% Disney 16%
Un-Managed Corporate Travel 44% Meetings/Planning Events 14%
Student/Youth 40% Adventure 13%
Senior/Mature Adults/Disabled 33% Culinary 13% Destination Specialist for One Country, Region or City 30% Family/Multi-Generational 12%
Group 29% Cruise (River, Canal) 10%
Cultural, Heritage & Educational 28% Green/Sustainable Travel 0%
Safari 27% Gay & Lesbian (LGBT) 0%
Luxury 26% Medical 0%
Destination Weddings and Honeymoons 25% Volun-tourism 0%
Managed Corporate Travel 24% Nature/national parks 0%
All-Inclusives/Resorts 22% Spa/Fitness 0%
Cruise (Ocean) 20%
© ASTA 2014
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Sales Importance Varies from Niche to Niche
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Extremely Important (more than 75% of sales) Very Important (50% - 75% of sales)Important (25% - 50% of sales) Moderately Important (10% - 25% of sales)Not Important (less than 10% of sales)
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Business Decision Primary Reason for Many Agencies in Choosing a Niche
Personal interest/passion of myself or other staff person
Business decision based on the market
Started after myself and/or other staff received a
"certificate"/completed a course
Green/Sustainable Travel Medical Student/Youth
Meetings/Planning Events Spa/Fitness Hispanic-Americans
Volun-tourism Asian-Americans
Nature/national parks Culinary
Gay & Lesbian (LGBT)
Disney Volun-tourism
NA - Leisure Generalist Only
Cultural, Heritage & Educational
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Involvement is Based on a Variety of Reasons For Most Niches
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
OtherStarted after myself and/or other staff received a "certificate"/completed a courseBusiness decision based on the marketPersonal interest/passion of myself or other staff person
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Small Client-Bases Is the Norm for Most Niches 1-500 clients 500-1,000 clients 1000 - 5,000 clients
Culinary Senior/Mature Adults/Disabled Volun-tourism Green/Sustainable Travel Religious/Pilgrimage Hispanic-Americans Medical Gay & Lesbian (LGBT) Managed Corporate Travel Meetings/Planning Events Spa/Fitness Safari Adventure Cultural, Heritage & Educational Family/Multi-Generational Disney Cruise (River, Canal) Luxury Nature/national parks Un-Managed Corporate Travel Tours Destination Weddings & Honeymoons All-Inclusives/Resorts Cruise (Ocean) Incentive Travel Group Student/Youth Destination Specialist
© ASTA 2014
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Client-Base for Most Niches Is Small with Some “Large” Exceptions
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1-500 clients 500-1,000 clients 1000 - 5,000 clients 10,000 + clients
© ASTA 2014
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Word-of-Mouth Top Marketing Method for Niche
88%
39%
34%
28%
23%
12%
10%
6%
22%
4%
0% 25% 50% 75% 100%
Word of Mouth/Referrals
Social Media (facebook, linkedin, twitter, etc.)
Community Groups (church, clubs, civic organizations)
Print Ads
Consumer Shows/Expos (Wedding Expos, NY Times…
Blog
Consumer Social Media (join online consumer-based…
Banner Ads
Other
NA - Do market niche expertise
Top Methods for Marketing Niche Experience
© ASTA 2014
Top Marketing Methods for General Agency Marketing Customer referrals Networking Direct Mail Website (agency's own site) Open house/Mixer at agency Seminars/Presentations at retirement homes, clubs, etc. Local events (bridal shows, festivals) Email marketing Print advertising - local Yellow pages - print Source: ASTA Marketing & Customer Retention Report
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Methods of Marketing Shift Based on the Niche
82%
61%
60%
59%
20%
20%
0%
0%
0% 50% 100%
Community Groups (church, clubs,civic organizations)
Word of Mouth/Referrals
Social Media (facebook, linkedin,twitter, etc.)
Print Ads
Consumer Social Media (join onlineconsumer-based groups)
Consumer Shows/Expos (WeddingExpos, NY Times Show, Travel…
Blog
Banner Ads
Top Methods for Marketing to Hispanic Travelers
80%
61%
39%
34%
32%
11%
7%
5%
0% 50% 100%
Word of Mouth/Referrals
Community Groups (church, clubs,civic organizations)
Social Media (facebook, linkedin,twitter, etc.)
Print Ads
Consumer Shows/Expos (WeddingExpos, NY Times Show, Travel
Adventure Show, etc.)
Blog
Banner Ads
Consumer Social Media (joinonline consumer-based groups)
Top Methods for Marketing to Destination Niche
© ASTA 2014
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Print Still Very Popular Vehicle For Agencies
Most Effective Marketing Vehicle % Share of Responses
Most Effective Marketing Vehicle
% Share of Responses
Print Ads (newspaper, church bulletins, yellow pages) 15% Online Ads (including Google Adwords) 2%
Direct Mail 11% Customer Relations (contact with current clients) 1%
Website 9% Flyers 1% Emails 9% TV/Radio Commercials 1% Sales Calls 8% Newsletter 1% Community Involvement (clubs, chamber, networking, booth, fairs) 5% Display Ad at Agency (sign, window display) 1%
Social Media 3% Billboards 1%
Facebook 3% Bridal Shows 0.3% Phone calls 2% Blog 0.3% Events (cruise nights, open houses, presentations) 2% Wrapped vehicle 0.3%
Consortium Marketing 2%
© ASTA 2014
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Half of Agencies Have a Marketing Plan – Real Advantage for Those That Do
40%
11%
21%
20%
9%
0% 20% 40% 60%
Yes, a general plan
Yes, a plan with specific targets
No, but will develop a plan in the future
No, do not see the need
NA - not applicable to business model
Agencies That Have or Have Not a Marketing Plan for Their Niche(s)
© ASTA 2014
Marketing Plan Addresses Niche Marketing Specifically
% Share of Responses
Yes 71% No 29% Note: Asked only of those who indicated they have a plan
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Luxury, All-Inclusives and Cruise (River & Ocean) Considered Most Lucrative
Most Lucrative Niche for Agencies % Share of Responses Most Lucrative Niche for Agencies % Share of
Responses
Luxury 14% Gay & Lesbian (LGBT) 1% All-Inclusives/Resorts 11% Africa/Safari 1% Cruise (River, Canal) 11% Senior/Mature Adults 1% Cruise (Ocean) 10% Europe 1% Groups 7% Disney 1% Weddings/Honeymoon 7% Hawaii 1% Tours 6% Cultural, Heritage & Educational 1% FIT 4% Australia/South Pacific 1% Family/Multi-Generational 4% Medical 1% Managed Corporate Travel 3% Religious/Pilgrimage 1% Destination Specialists 3% Asian American 0.4% Adventure 3% Dive Travel 0.4% Managed Corporate Travel 3% Motorcoach Tours 0.4% Luxury Cruises 2% Nude resorts 0.4%
© ASTA 2014
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Agents Expect Strongest Growth for Luxury, River Cruises, Family and Multi-Generational Niches
Niche Markets Most Likely to Grow in the Future
% Share of Responses
Niche Markets Most Likely to Grow in the Future
% Share of Responses
Luxury 11% Gay & Lesbian (LGBT) 3%
Cruise (River, Canal) 9% Incentive 3%
Family 6% Senior/Mature Adults 2%
Multi-Generational 6% Cultural 2%
All-Inclusives/Resorts 5% Destination Weddings 2%
Adventure 4% Exotic 2%
Group travel 3% Managed Corporate Travel 2%
Cruise (Ocean) 3% Tours 2%
Active seniors 3% Medical 2%
© ASTA 2014
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Pushing Consumer Traffic to your TravelSense Profile
TravelSense.org per month Visits 66,082 Unique Visitors 31,313
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Facebook Messaging - Share on Your Facebook Page
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https://www.facebook.com/ASTATravelSense
https://www.facebook.com/AmSocTrvlAgents
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YouTube http://www.youtube.com/user/astasvideos
© ASTA 2014
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My Upcoming Webinars - Consumer Research
May 21, 2014 Webinar - Messaging for Targeted Marketing to Consumers 2pm ET
June 11, 2014 Webinar - Understanding Business Travelers Who Use Travel Agents, Those Who Don’t and Those Who Plan to in the Future
2pm ET
July 16, 2014 Webinar - Understanding Consumers Who Travel: A Demographic Overview of Known Travelers in the U.S. 2pm ET
© ASTA 2014
32 © ASTA 2014
For Follow-up Questions: Melissa Teates 703-739-6983 [email protected] You can also contact me on LinkedIn.