California Benefits from Market Trends
California remains a hot travel market, and the state stands to benefit from a confluence of market and demographic trends.
- Leisure travel is booming, even as business travel remains flat;
- People are taking shorter vacations and longer weekends;
- Extended families and friends are traveling together; and
- People are looking for new destinations and authentic experiences.
California the Top Destination
Peter Yesawich of Yesawich, Pepperdine, Brown & Russell, a marketing, advertising and public relations agency that specializes in the travel and leisure industries, presented the findings of the 2006 National Travel Monitor at the Cal Tourism Industry Association conference in March, 2006. The annual Travel Monitor, which uses a poll of U.S. households to track trends, found:
- California has passed Florida as the most popular vacation destination, with 34% of those interviewed describing themselves as “very interested in visiting,” versus 32% for Florida.
- Half of the respondents were very interested in visiting San Francisco and Lake Tahoe. San Diego, Orlando and Las Vegas were right behind the Northern California destinations.
- National parks are the second most popular destination, just behind Hawaii. Nearly three quarters of those polled are very interested in the parks, up from 66% in the 2005 survey.
The Business of Leisure
Travel declined sharply after September 11, but five years later leisure travel has rebounded. In 2005, 66% of the survey respondents took at least one trip, and 9 of 10 of these trips were for vacation, not business. Just a couple years ago, only half the sample planned a trip.
Looking closer at these numbers, a couple of important trends emerge. Just looking at the statistics, Americans are working longer hours, making it harder to get away. Combine that with the fact that we average only 13 days of vacation a year, and it’s easy to understand why folks are more likely to take a number of long weekends each year, rather than take that one two-week vacation.
The data bears out the monitor’s findings. The growth in California tourism in recent years is attributable to residents seeing California first. YBPR found that weekend travelers want to spend less than four hours on the road, which puts much of the state within reach. From San Francisco, a traveler can make it to Big Sur or the Hearst Castle, Yosemite or Lassen, the Redwoods or the Mendocino Coast. The wine country in the Anderson Valley counties, the Gold Country, or Paso Robles are all within reach. Visitors can bike a mountain and run a river rafting in a single weekend.
Yesawich advises companies to develop weekend packages–Sunday to Thursday, and Thursday to Sunday–to capture more of this market.
The 21st Century is the New Age
Not only are people working more, but they are likely to keep on their cell phones and laptops because of life’s 24/7 demands. Free wi-fi access is quickly evolving from a popular amenity to a ubiquitous feature at destinations, cafes, hotels and public parks.
As Silicon Valley makes our wireless life increasingly complex, Americans are taking their relaxation in hour increments, enough time for a massage, yoga class or spa treatment. Between Calistoga and Esalen, California has long been the home of hot springs; now we’re seeing a proliferation of day spas and rural retreats.
Parental Guilt Never Higher
With parents working longer hours, Yesawich says, “parental guilt is at an all time high.” The 2006 travel monitor found a renewed interest in family: 71% of respondents want to spend more time with the kids. The generation that created “extreme sports” have traded their back packs for a snugglies.
Increasingly adults are not only traveling with their kids, but their parents, as multi-generational travel becomes more popular. Yesawich defined the trend as “togethering,” ad hoc groups consisting of extended families and friends on holiday.
Disney jumped on the trend, marketing their “Magical Gatherings” vacation packages:
“Travel parties of eight or more enjoy special benefits, exclusive personalized merchandise and one-of-a-kind experiences. As a Grand Gathering you can take advantage of travel planning services, custom events and unique opportunities such as a Safari Celebration Dinner or a Magical Fireworks Voyage. Grand Gatherings multiply the magic even more.”
Disney offers a special online “Vacation Planning Kit” and a slew of special events including the Safari Celebration Dinner, Good Morning Gathering, and Magical Fireworks Voyage. Since its introduction in 2004, Yesawich says these packages have become its more successful marketing tool.
Boomers Always Make their Mark
Baby boomers remain active, but after a long day of hiking or kayaking, they can afford a massage and gourmet dinner. Boomers are more demanding, seeking both an “authentic” and personalized experience.
The 2006 monitor found that 92% of travelers believe “there’s no reason to pay full price.” The web has makes it easy to compare prices, and new search technology such as QIXO will accerlerate bargain hunting and online purchases. Half of those surveyed by YPB&R said they expected to make a lodging reservation and 70% will book their airline tickets online.
Yesawich predicts that travelers will increasingly use the web to personalize their holidays. Just as consumers pick up a car at their local dealership that they “customized” online, travelers are willing to pay a premium for a customized travel product.
Been There, Done That
The survey found that travelers are seeking for new destinations to explore, even if visitors loved their last vacation. Lesser known destinations can seize upon this trend by developing marketing strategies that highlight their local assets. Wine lovers are exploring the Gold Country vineyards, birders set their sights on another flock. Visitors are seeking the unique characteristics of local historical districts, heritage sites, and arts communities.