GoBC Newsletter

Newsletter April 2010

Tuesday Apr 20, 2010

Marketing during tough Times - Making it Count
The economy is recovering, but not yet fully recovered. Businesses are cutting their advertising budgets and are wondering whether it is wise to invest in marketing at this time.
What if the market just isn't there? Here is what the experts say:

• Be aware of market niches that are less affected by the economy.
• Think local, even when catering to international visitors.
• Keep advertising and expect long-term gains beyond your expectations. How?

Here are some tips:
VFR Tourism (short for "Visiting Friends & Relatives") and the Economy
VFR Tourism and Long-Haul Travel
The Long Term Payoffs of Marketing during Tough Times
The Good News for You

-----------------------------------

VFR Tourism (short for "Visiting Friends & Relatives") and the Economy
VFR travel defies the Economic Downturn.
Tourism marketers have been pointing out that the VFR category (visiting friends and relatives) continues to be a major driver and is less affected by the economy. People continue to plan weddings and reunions, and visit friends and relatives for many reasons. This translates into tours, accommodations, meals and entertainment, as well as shorter trips combined with visiting. VFR travellers are not influenced by advertising campaigns; instead, they know their destination and will be searching for local offerings.

Special events is a similar category and often cited as another major driver. Consider visiting performers, race participants, competitors, teams and their families - all in need of accommodations and things to do in YOUR community.


VFR and Long-Haul Travel
The Canadian Tourism Commission publishes an annual report about tourism from various countries, including Germany. In 2009, research showed that "both potential and recent visitors are more likely to have friends and relatives living in Canada, again showing the influence of VFR as a pull factor."

The report also points out that, while Canada's natural environment continues to be a top attraction, German travellers are culture-conscious, an area Canadian tourism marketing has been slow to embrace. The full study can be found at here

Marketing during Tough Times Pays Off
Strategy Online has this to say: "In Canada, Scotia Capital predicted last month that overall advertising in Canada will drop by 4.6% this year ... And yet many observers are optimistic, pointing out that history demonstrates the value of maintaining ad expenditures in a slow economy. Speaking to Media in Canada upon the release of Bensimon Byrne's Consumerology Report last spring, for instance, agency president Jack Bensimon cited a Strategic Planning Institute study that revealed an average gain of 1.5 share points for brands that increased spending in a recession. And a McGraw-Hill study from 1987 found that companies that kept spending on advertising through the 1982 recession were rewarded by a sales hike of 275% over five years. (http://www.strategyonline.ca/articles/magazine/20090201/biz.html)

The Good News: You're ahead of the Game Already
Your GoBC listing provides full information about your business. This makes you the accessible local choice to Canadian and international VFR travellers and their local hosts.
Your German listing on GoBC makes your business accessible to visitors from Canada's largest non-English speaking market. Not to mention, GoBC's emphasis on arts and culture makes our website and your area even more attractive to many Europeans!
Hundreds of event organizers province-wide use GoBC to promote their events. Your GoBC listing is only a click away for the organizers and their visitors!

In case you were wondering...
GoBC is pleased to report that our online tourism marketing website has experienced steady traffic. In fact, visits have increased somewhat over last year. Concurrently, we noticed that some customers delay their advertising decisions - meaning that those of our customers who continue to advertise are getting more attention than in the past.

I hope these tidbits of information are interesting and useful to you. As always, we'd love to hear from you and welcome your questions, suggestions and feedback.

Enjoy the warmer weather - we certainly do!