Ctftz: C ((4/3 U.S. Department of Commerce United States Travel and Tourism Administration w^ Highlights Report c ^ I . oi U ' J> PLEASURE TRAVEL MARKETS TO NORTH AMERICA CANADA Highlights Report PENNSYLVANIA STATl UNIVERSITY N0V2 4 1992 DOCUMENTS COLLECTION U.S. Depository Cody Prepared for: UNITED STATES DEPARTMENT OF COMMERCE UNITED STATES TRAVEL AND TOURISM ADMINISTRATION By: ANGUS REID GROUP, INC. July 1992 i ■ THIS RESEARCH WAS CONDUCTED ON BEHALF OF THE UNITED STATES TRAVEL & TOURISM ADMINISTRATION, SECRETARIA DE TURISMO, MEXICO, TOURISM CANADA, AND THE LAS VEGAS CONVENTION & VISITORS AUTHORITY BY ANGUS RED) GROUP, INC. TABLE OF CONTENTS INTRODUCTION 1 METHODOLOGY 2 OVERVIEW OF THE CANADIAN MARKET 3 How large is the target market of Canadian outbound vacation travellers? 3 Which provinces in Canada generate that volume? 4 Where do travellers go on vacation, and where would they like to go? 5 How many Canadians would be interested in travelling to my state/city? 9 Does the U.S. have any unique selling points? 11 Does the U.S. have any weaknesses? 11 How, why and when are Canadians coming to the United States? 13 What do Canadian visitors do in the United States? 14 How can potential Canadian travellers be reached most efficiently? 15 OVERVIEW OF MARKET SEGMENTS 16 Travel Philosophy 16 Travel Benefits 16 Travel Product 17 Travel Behaviour 17 Recent Trip Activities 17 Holistic Segmentation 19 Exploring the Holistic Segments 21 INFORMATION AVAILABLE FROM THE RESEARCH 24 INDIVIDUAL USER APPROACHES 26 Digitized by the Internet Archive in 2012 with funding from LYRASIS Members and Sloan Foundation http://archive.org/details/pleasureOOunit United States Travel and Tourism Administration INTRODUCTION The United States Travel and Tourism Administration, in partnership with Secretaria de Turismo, Mexico, the Las Vegas Visitors and Convention Authority, and Tourism Canada, commissioned Angus Reid Group to conduct a segmentation study of the Canadian Outbound Pleasure Travel Market in 1991. Under an agreement between the United States Travel and Tourism Administration and Tourism Canada, dating back to 1986, numerous countries have been studied in a similar fashion, including the United Kingdom, France, West Germany, Japan, Hong Kong, Singapore, Switzerland, Italy, Australia, Brazil, Mexico, Venezuela and South Korea. In previous segmentation studies conducted in the Travel and Tourism sector, the traditional approach has involved segmenting pleasure travellers in three distinct ways: according to their travel philosophy, according to the benefits which they sought in a pleasure travel trip, and according to the interest they expressed in travel products and activities. Angus Reid Group has maintained that the most useful and insightful method of segmentation analysis is to incorporate not only travel philosophy, benefits and products but also actual travel behaviour and more basic psychographic or attitudinal dimensions. Therefore, the Canadian Pleasure Travel Market Study replicates some of the previous segmentation techniques, in that travel philosophy segments, travel benefit segments and travel product segments are identified, but then goes beyond the previous methodology by concentrating upon travel behaviour segments, recent trip activities segments, and finally exploring the market in holistic terms. This highlights report summarizes a more extensive detailed report, which in turn examines salient features of twelve volumes of data tables. Both the full report and volumes of cross-tabulations are available under separate cover. The ultimate objective of this research is to provide strategic information for use in market planning with respect to the Canadian pleasure travel market. This strategic information regarding potential tourism from Canada includes: an assessment of motivations, benefits and product desires of Canadian Pleasure Travellers; an estimation of the size and characteristics of various travel segments within the Canadian public who travelled outside of the country; an evaluation of awareness and attitudes towards various U.S. destinations; a profile of media habits of key Canadian tourism segments; a profile of the demographic and psychographic dimensions of various travel segments. To provide insightful and actionable information, the extent of tourism and the potential for tourism to specific destinations and regions within the U.S. is examined for the total Canadian market, as well as the individual travel segments which emerged from this analysis. Canadian Pleasure Travel Market Study Page 1 United States Travel and Tourism Administration METHODOLOGY The methodology for this project consisted of two major phases of research: ■ a telephone survey with 5 , 850 Canadian adults 1 8 years of age or older (screened for having travelled outside of Canada within the past three years on a trip three nights or more, or expressing intention to travel outside of Canada in the next two years, and who agreed to participate in the follow-up mail-out portion of the study); ■ the methodology for the pre-recruitment telephone survey involved drawing a stratified random probability sample based on population of Canadians by region; ■ telephone interviews were conducted on a weekly basis over a nine week period, from August 1991 through September 1991, with 650 interviews being conducted each week; ■ the data were computer-weighted by region/province and by major sampling point within that region, to reflect the actual incidence of travelling encountered in the screening process, and to account for the actual population distribution by region according to those incidence figures and Census Canada data; ■ a self-completed questionnaire was mailed to all 5,850 contacts, and 3,506 respondents returned completed questionnaires by the specified cut-off date in November, 1991 (60% response rate was achieved after a reminder phone call and a second survey was sent to initial non-responders). Canadian Pleasure Travel Market Study I MM I M HHHI i |iij|ijjj.M.nii i ij i ijijii|iAiii!jiAi i jijjjji|^ijijjijjj|ijjijJjjijj| i AiiJJJJiJij|iJJJiJj|UAUJJJJ.i. i .i^ Page 2 Hlll l llllllll ll l l l l llll l llllllimilllllmKuin lSTfi; li ' »— i i iiii ii iiii i iii i i i m United States Travel and Tourism Administration OVERVIEW OF THE CANADIAN MARKET How large is the target market of Canadian outbound vacation travellers? The total potential size of the Canadian Outbound Pleasure Travel market is 13.38 million , based on an estimated population of 19,968,000 Canadian adults and 67 % of Canadian adults contacted having taken a trip for three or more nights outside of Canada in the previous three years or intending to in the next two years. Of this number, 96% express interest in visiting the U.S. specifically, resulting in a total potential pleasure travel population to the U.S. of approximately 12.84 million Canadians. TABLE 1 CANADIAN MARKET POTENTIAL INCIDENCE OF OUTBOUND CANADIAN TRAVEL Total Calls 47,975 100% Qualified* And Completed 5,850 12% Qualified* But Refused 26,340 55% Not Qualified 15,785 33% Approximate Adult Population In Canada 19,968,000 Incidence of Outbound Travellers 67% Estimated Total Outbound Travellers 13,378,000 % Potential U.S. Travellers 96% Estimated Potential U.S. Visitors 12,843,000 * Qualification: Travelled Outside Canada in past 3 years for 3 or more nights, or intend to in next 2 years for three nights or more. Canadian Pleasure Travel Market It SB 111 riMIHIMMMMMfifffltifiVi^^ .^^H Pane 3 United States Travel and Tourism Administration Which provinces in Canada generate that volume? Outbound Canadian pleasure travellers have taken on average 4.6 trips outside of Canada in the past three years; residents of Western Canada account for a disproportionately higher number of these outbound trips (41 % of all outbound trips, 29% of outbound population) compared to Eastern Canadians (59% of all outbound trips, 71 % of outbound population). ■ British Columbians take the most outbound trips on average (6 trips per year on average); ■ Residents of Quebec tend to take fewer trips per year (4.3). TABLE 2 MARKET SIZE BY PROVINCE Proportion of Outbound Travellers Proportion of Outbound Trips Average # Trips Taken (Past 3 Years) TOTAL CANADA (5850) (26,656) (4.6) Of of 70 70 British Columbia 12 19 6.0 Alberta 9 11 5.5 Manitoba/Saskatchewan 8 11 5.2 Ontario 37 30 5.5 Quebec 25 19 4.3 Atlantic* 9 10 5.1 * Includes Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland. Canadian Pleasure Travel Market Study ^^™!!!!M ..I ■'■! M !■ ■ . ■ . ! .1 I . . ^^^^*- I B I . I . 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Visiting friends or relatives was the main type of trip taken (63%), followed by resorts (49%), exploring cities (40%), and business/pleasure (28%). The modes of travel varied somewhat to and within the U.S., however private car was the number one mode of transport, as illustrated below: TABLE 7 TRANSPORTATION USED ON MOST RECENT TRIP TO U.S. WITHIN % U.S. % Private Car Plane Camper/RV Bus Rental Car Train Boat Public Transportation 50 39 4 4 1 1 1 * 63 16 6 8 22 2 4 13 * Denotes less than 0.5% response. Figure 3 shows that most recent trips to the U.S. lasted 10 days or less (42% spent 3 to 6 nights and 27% spent 7 to 10 nights) - the average length was 10.2 nights away . July (20%) and August (21 %) were the busiest travel months, followed by September (10%), March (8%), and June (7%). Canadian Pleasure Travel Market Study lllllllll ill m I mi uiiiiniiiiiiin.ni mil Page 13 i i iii ii i iiiii i iin ii ii i iuim imms United States Travel and Tourism Administration What do Canadian visitors do in the United States? The activities most often participated in by Canadians on their most recent trip to the U.S. were dining and shopping. Nearly two-thirds reported that they went and took pictures of places they visited. Visiting friends and relatives is also quite common for Canadians, with 39% reporting that was done on their last trip to the U.S. Other activities included: TABLE 8 ACTIVITIES PARTICIPATED IN WHILE IN THE U.S. Dining in restaurants 87% Shopping 84% Sightseeing in cities 65% Taking pictures 62% Sampling local foods 50% Sunbathing/beach 49% Sightseeing in countryside 47% Swimming 47% Visiting historical places 40% Visiting friends 39% Visiting scenic landmarks 37% Short guided tours 37% Canadian Pleasure Travel Market Study Page 14 l M iiltl n ll f7 il TTfnf lg '■'■"■*■*■"■"■"■'■*"'■"■'■"■"■"■"■'■'■'■■' ■ United SttUes Travel and Tourism Administration How can potential Canadian travellers be reached most efficiently? It is important to understand the sources of information Canadian travellers use when planning trips to the United States. Close to half of Canadians referred to family /friends, brochures or travel agents when planning their U.S. trip. Newspaper/magazine articles were used by nearly one-third of the travellers, while auto clubs were contacted by approximately one-fifth of travellers. Airlines, books, tourist boards and tour companies were mentioned each by 10% or less of the respondents. The single most preferred sources of information were friends/family, and travel agents as Figure 4 illustrates. Figure 4 PREFERRED SOURCES OF INFORMATION 60S I Total I Mentions I Most I Important Frtoottv Broehuraa Travel Artctes Auto Airlines Books Tourist Tour Famly Agtm Assoc. Board Company The newspapers which are read differ greatly by the origin of the reader. Overall, the national paper, The Globe and Mail is read on a regular basis by 21% of the travelling population, followed by The Toronto Star (19%) and La Presse (14%). However individual newspapers in specific cities of origin are extensively read, for example in Toronto, the Toronto Star is read by 74% of travellers. The leading magazine read is Chatelaine (31 %) followed closely by National Geographic (29%), and Maclean's (27%). Canadian Living and Time are read by nearly one-quarter of these travellers. Canadian Pleasure Travel Market Study Page 15 '•:-■ ■:-.:■. y-^m ■'■■ m 1 1 1 1 1 H 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ' United States Travel and Tourism Administration OVERVIEW OF MARKET SEGMENTS A series of segmentation analyses were conducted on the data, starting with separate segmentation of travel philosophy, travel benefits, travel products, travel behaviour and recent trip activities, and culminating in a holistic segmentation incorporating all aspects of the investigation. These segmentation analyses are generated using multivariate cluster analysis, which is a means of identifying groups of people who share a common set of beliefs, attitudes or behaviour which differentiate them from other segments of the population. Four approaches to Travel Philosophy were identified by clustering 24 variables which asked travellers their level of agreement or disagreement with various statements, concerning their approach to travel. Travellers with common responses to statements such as "I like to have all my travel arrangements made before I start on a vacation" and "I usually choose vacation places where I have been before" were grouped in the following four segments: ■ ORGANIZED & FAMILIAR (18%); people who like organized trips to familiar destinations; ■ ORGANIZED VARIETY (29%); people who like group tours and packages, but to a variety of destinations; ■ INDEPENDENT VARIETY (29%); they like to make their own arrangements to a variety of places; ■ FAMILIAR INDEPENDENT (24%); they also make their own arrangements, but to familiar destinations. Travel Benefits sought in a vacation can be used to segment Canadian travellers into four groups. Travel Benefit segments were derived by clustering 32 variables which assessed the importance travellers attached to statements such as "Escaping the ordinary" and "Visiting places my family came from". The four segments are: ■ PLAYERS (24%), who like to participate in sports and games and who seek luxury and leisure; ■ BREAK AWAY (25%), who want to escape from ordinary routine on a vacation; ■ KNOWLEDGE SEEKERS (30%), who want to learn on a vacation by trying new things; ■ SOCIAL TRAVELLERS (20%), whose primary motivation for travelling is to see family and friends. Canadian Pleasure Travel Market Study Page 16 m i in' ' ■■^■■■■■■■■.■■■■■■■■■■iiiiiiiiniiin- United States Travel and Tourism Administration Travel Product segments were based on 57 variables. These included very specific activities such as "Fishing" and "Live theatre and concerts". Travel product segments can be identified in five groups: ■ WILDERNESS/OUTDOOR RECREATION (19 %), who enjoy all kinds of outdoor and wilderness activities; ■ INDIGENOUS CULTURE travellers (16%), who want to explore cultures native to a particular area to increase their knowledge and broaden their horizons; ■ DEVELOPED AMENITIES (24%); these people want a high comfort level, in a city or resort with many amenities; ■ SPORTS, SUN AND SAND (22%); they want physical activities associated with the beach/water; ■ SUN AND SERVICES (19%); these people want a warm sunny destination where they can shop (not just lie on the beach). Travel Behaviour segments split into three groups based on intention to visit, actual visitation and frequency of travelling: ■ ACTIVE NORTH AMERICA (14 % of travellers) travel fairly often, particularly to the U.S.; they account for 20% of all outbound travel. ■ ACTIVE INTERNATIONAL (21 % of travellers but 36% of all trips taken), primarily to off-shore destinations; ■ INFREQUENT CLOSE-TO-HOME travellers are the largest group (65%), but they account for less than one-half of all trips (43%), most of them to border destinations. Travellers were also segmented into four groups based on Recent Trip Activities . A total of 42 variables were combined from actual activities travellers participated in on their last pleasure trip of three nights or more. The segments are: ■ DO ALL/SEE ALL segment (16%), who participated in more activities than the rest of the travellers combined. ■ ACTIVE NATURE segment (20%), who primarily did outdoor activities; ■ FUN AND SUN travellers (28%), who went to a beach, sun tanned and sampled the nightlife; ■ INACTIVE travellers (37%), who had the lowest activity levels of any group, except for high visitation to friends and relatives. Canadian Pleasure Travel Market Study Plage 17 1 1 < < J i > ■ * t ■ M ■ < t * ^ > J > 1 1 1 ■ I J ti 1 1 1 1 M 1 1 ■ 1 1 1 < I < ^ 1 1 1 4 1 1 1 1 1 1 ' 1 1 1 1 1 1 1 1 1 M 1 1 1 1 1 1 1 1 1 1 rf 1 1 < 1 1 1 J 1 1 ^ 1 1 1 1 1 1 1 1 1 * 1 1 1 1 1 1 1 1 1 1 > 1 1 1 1 i 1 1 r 1 1 1 1 1 1 1 1 1 1 J 1 1 1 M I J 1 1 1 1 1 1 1 1 1 1 1 J 1 1 1 1 . ■ i i 1 1 1 . 1 1 ^ I . I * 1 1 1 1 > 1 1 . 1 . ■ i ■ J i J I i i i , I ^* = ""'"Mil Ml I I .1, ~~ United States Travel and Tourism Administration FIGURE 5 HOLISTIC SEGMENTS OF THE CANADIAN PLEASURE TRAVEL MARKET No Surpr Family Value--17% Packaged Sun Services Culture & Nature Seekers-13% Knowledge & Experience-12% History & Hospitality-14% Active Players-1 5% C anadian Pleasure Travel Market Study Page 18 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 i n 1 1 1 1 1 I I i I I i i 1 1. 1 m 1 1 1 1 1 1 II i n m i . 1 1 , 1 m. 1 , 1 . 1 . 1 , 1 u 1 ,1, 1 ,1 1 1 1,1, 1 , 1 1, i .i. i M. I mmm mmw m ,m j .i, j ,m,j,m i. i 1, 1 ,1,1. 1 m mm^m^^ j ..... t .. .... ■ n .■'.■■■■■■.■■■■,■■■■: ■ .. ■ i.. ..i_ : .i.i i .n j . ■ . ■ < ; i ! . . ■ . ; . r? . _ ■ ■ . . i .77- ■ tm in ' ' . ■ ai irMrmrmiiiii ;^^ 1 m 11 ill iiiiiiYii i.i 1 1. MiViViV .aaaWiWi» MMTM iViViViYi'i i mr. United States Travel and Tourism Administration The Holistic Segmentation incorporated attitudinal differences across each of the previous segmentation types: travel philosophy, travel benefits, travel products, travel behaviour and travel activities. The holistic segmentation also includes how travellers feel about lifestyle or psychographic dimensions. This segmentation approach links the attitudes, preferences and behaviour patterns of individuals into a coherent and consistent whole. A total of 162 variables were used to create this segmentation, resulting in seven distinct holistic segments: ■ CULTURE AND NATURE SEEKERS (13%); primarily outdoor/ wilderness travellers who like to travel independently to inexpensive places where they can enjoy local culture and nature. Their confidence and independent nature allows them to explore destinations which other travellers may hesitate to visit. ■ KNOWLEDGE AND EXPERIENCE travellers (12%) are also interested in cultural experiences, but usually of a more "civilized" or urbanized variety - they yearn to learn about new and different aspects of life but are not very interested in forests and parks. European destinations hold considerable appeal for these people. ■ HISTORY AND HOSPITALITY travellers (14%) are most interested in sampling local history through group tours where they can be assured of convenience, safety and hospitable surroundings. Packaging of vacations is important to these people, since they try to avoid risks of any sort and enjoy travelling in a group. ■ ACTIVE PLAYERS (15%) are interested in games of all types, from sports (watching or participating) to gaming/gambling. They have a pre-disposition toward luxury, and like to travel in style, and indulge themselves. They are outgoing, active people who want to do and see many things on a vacation. ■ PACKAGED SUN AND SERVICES travellers (14%) enjoy vacations in the sun on a beach, arranged by someone else, which are all-inclusive. They go on a vacation to escape from their ordinary routine and to socialize with the locals and do a bit of shopping. ■ FAMILY VALUE (17%) travellers are most motivated by family considerations, seeking predictable lower priced accommodation and arrangements. Activities the family can enjoy (like theme parks) are important to them, as long as they perceive they are getting good value, in a safe setting. ■ NO SURPRISES travellers (15%) are very risk averse, preferring to have all arrangements settled before embarking on a trip, and avoiding changes in schedule or location upon arrival. Whereas some segments seek variety and activity on a vacation, these people want predictability and little activity, with the exception of golf. Cana