ITB 2011: Part 1 - key trends and learnings for Cape Town

This year will see a record number of exhibitors participating - 188 participating countries with a total of 11 163 exhibiting companies and organisations, media, trade and travelling public are spoiled for choice. Parallel with the trade fair, the ITB Berlin Convention, the largest travel industry event of its kind in the world, is being held from 9 -11 March 2011.

Cape Town Tourism attended the "Future Day" Convention of ITB where attendees and exponents reflected on the global mega trends affecting people's travel behaviour and choices, and we had a glimpse into how this will shape future travel patterns.

Mega Trends

Some of the highlights and predictions that I found most relevant for Cape Town and the future of travel include:

• The three most relevant Mega Trends affecting the tourism industry are globalisation, demographic change of our customers and climate change.
  
• With 935 million trips in 2010, world tourism is firmly on the growth path. Those destinations hoping for a recovery to what we were used to before the recession are in for a rude awakening. The world is a different place and people's travel behaviour has changed fundamentally and forever. Growth is being driven by emerging markets such as Asia and South America while mature markets are seeing low growth. In China, 400 million people have been taken out of poverty over the last few years and in India, 150 million people. Demand driven markets are being created. These are the world's new middle-class travellers.
  
• World travel in 2011 is predicted to grow by 3-4% with most confidence in Asia and South America. China and India are the economic powerhouses of the future and Asia is expected to see a double-digit outbound growth in 2011. Around 46 million Chinese travelled abroad last year, as did over four million Indians. As nations grow, so does their exposure and disposable income, leading to trips further afield. There is huge opportunity in these new markets for Cape Town, especially during our off-peak winter months, but we should not rush in without a plan and without understanding more about these new customers.
  
• Destinations must understand how new travel behaviours will impact on us and we must adjust our marketing, communications and offerings to meet the needs of our customers. It is about the customer, not the destination. Once we get this, we can influence their travel choices. Some interesting new travel behaviours include:

  • The 'too busy to care' traveller that cannot be bothered to give destinations or products feedback.
    
  • Complex lives and pressurised finances. With the average world citizen earning less than they did ten years ago and low birth rates in developed countries, people are working harder and leisure time is shrinking. Time is now our most precious commodity.
    
  • Craving simplicity and a return to basics. Slow living, slow food and slow travel.

  • Wealthy travellers who are getting harder to please and who are demanding more and more from the destinations they visit.

• Sustainability is no longer a nice to have, but a need to have. With the world heading towards a massive over-capacity and demand shrinking in traditional markets, destinations and businesses have no choice but to cascade sustainable tourism practices throughout entire operations and experiences offered.
  
• Climate change is not only directly affecting the cost of aviation; it is speaking to people's moral values. More and more people will question the acceptability of flying long-haul for recreational or leisure purposes. Cape Town as a long haul destination must be able to answer these tough questions and promote sustainable local experiences to offset long-haul travel. It is predicted that individual carbon budgets could be in the pipeline. We must be ready for dramatic change in this arena.
  
• Despite positive outlook and economic growth, all indications are that tourists around the world are still being careful with their money. Total spending by international travellers is expected to increase by 7% to €781* billion this year, the World Travel Monitor found. Average spending per night is expected to be €107 while spending per trip will be €1141. Big spenders this year in terms of international tourism expenditure include China (+22%), the Russian Federation (+26%) and Brazil (+54%), according to UNWTO figures.
  
• New skills and talent required by the tourism sector to play on the new global travel arena. The signs of an economic recovery are positive but risk will always remain. The skill to scan the horizon for change and the ability to anticipate change are important. We must get closer to our customers. By allowing the customer to give us ideas and answers to our questions we can move from idea to implementation much quicker. Businesses must become laboratories of ideas by using their customers and attracting and nurturing young and diverse talent. Those destinations and businesses that are willing to open the door to the future and stay curious about what makes their customers tick will lead the way to prosperity.
  
• The science of neuromarketing in destination and tourism experience marketing, advertising and communication has tremendous potential for destination marketing organisations like Cape Town Tourism and the industry. Neuromarketing recognises that up to 95% of all decisions are made on a subconscious level. It asks scientific questions like: how do consumers' subconscious minds react to destination advertising? What are the different consumer types and what travel decisions do they make? Researchers around the world are searching for the latest secrets of our purchase decisions, and a growing number of destination marketing agencies are putting their findings into practice by selecting imagery and language that speaks directly to subconscious decision making patterns of consumers. Neuromarketing recognises implicit personality systems that dedicate what's important to the customer. It identifies four different personality types. Understanding your customer and what makes them unique will make it possible to match your destination and experiences to the right customer resulting in a much better conversion.

• 1. The Economical Customer relates to data, facts and efficiency

• 2. The Relationship Customer relates to harmony, partnership, a more personal approach and trust
  
• 3. The Trendsetter Customer relates to opportunities, gut feelings and creativity

• 4. The Exclusive Customer relates to aesthetics, quality and visions

• The most interesting innovation in tourism marketing is the ability to communicate in an instant, relevant and personalized way with customers. The internet and social media in particular, allow us to personalize relevant information for our customers and share it instantly with them.

In Part 2, I will look at some of the exciting new developments in social media and how a challenger destination like Cape Town can lead the way in innovative, future fit marketing. Cape Town Tourism has opened our doors wide to let the future in and is curious to learn more about what makes the Futourist tick.

For more information go to www.capetown.travel.

*Exchange rate at time of publication €1=R9.55