I want my paper to relate to the travel and tourism industry, with a focus on the difficulties and opportunities that will arise in the upcoming years of the recession. I think the tourism industry is particularly vulnerable to fluctuations in the economy, because leisure activities are some of the first things people cut from their budget when they need to save money. So companies in the tourism industry must be looking for ways to save as well and market their destinations for the changing economic times.

However, I think this also presents a challenge because luxury travel destinations, which assumedly will be hit hard by budget cutbacks, will want to maintain their luxury appeal in the long term. So higher-end travel destinations must combat the paradox of being temporarily cheap, but still maintain the quality and long term luxury appeal that initially, and ultimately, defined their business model.

There are a variety of ways that travel destinations can market themselves to survive these economic hard times. For instance, corporate groups that have budgets for events, retreats, etc. can be a dependable, safe target segment, because the money is already set aside. The travel destination has to find ways to make themselves attractive to corporate groups, for instance with easy accessibility, event planning resources, in house options (catering, entertainment, meeting arrangements, etc.), and tailored packages for specific companies. The marketing communications have to be aggressive and proactive, seeking out corporate event planners and maintaining contact with the human resources representatives of past and future clients.

Another segment that travel destinations could target is upper class retirees, who have already budgeted for their life and plan on maintaining a comfortable but not extravagant lifestyle. These are people who plan to take annual/semi-annual trips as part of their retirement, and they have a specific set of travel needs. Galit Nimrod’s article “Retirement and Tourism: Themes in Retirees’ Narratives”, explores the different needs that this segment has from other tourists. For instance, comfort and ease are important to retirees. Relaxation and pampering are also valuable. This segment is not as concerned with high energy activities and constant entertainment, but they want to have resources at hand, and have everything hassle free.

Obviously the recession will have a major impact on the tourism industry, and in my paper I would like to explore ways that particular travel destinations can avoid major losses, and perhaps even capitalize on the side effects of the recession. I just outlined a few segments that I thought had potential for travel destinations, and I think that there are other segments also that provide an opportunity. The problem will be finding ways to market the destination, while still maintaining its original destination integrity, so that when the country recovers from the recession, it has not completely altered its business model.

I think this relates to the class because travel destinations must understand the psych of their target markets and seek out target markets that will be loyal and active customers. Travel is innately about an experience, and consumer insights are fundamental to understanding how to create the ideal experience for each target customer and also what value each customer places on that experience.

When Does a Product Transition to an 'Experience'...?

After the last class discussion about hair color and the brand personality created by both L'Oreal and Clairol, I began to think about the different experiences woman had when using those products. For instance, some women probably colored their hair as an act of defiance, for others it was self-impowering, like a stamp of independence. Others transformed themselves into bombshells to attract men or compete with other women, and for some women it was simply part of their cosmetic regime, like applying their morning make up. What struck me was how a simple product was branded into becoming an experience for women, supplying them with positive emotional support and extending the branded concept onto the individual women...women could become Cybil Shepherd or Heather Locklear when they used the product.

In today's world, when pretty much every product out there is standardized to the same level of supreme quality, and there's almost no level of quantifiable quality differentiation, this drive toward experiential products and services has almost taken over marketing. Consumers have developed relationships with certain products and services, and because of the personality the brands take on, it is almost as if consumers don't want to 'hurt the brands feelings' by trying something new or going to a new place.

Take for instance, Starbucks coffee drinkers. Every time I get a Starbucks, I go to the coffee shop on 24th and San Antonio, because I'm comfortable there, they are usually extremely efficient, I know a lot of my friends go there, and it is what I always do. Often when I want a bagel from Einstein Brothers, I'll go there first, get my bagel, and then go across the street (adding at least 15 extra minutes to my routine), and get a Starbucks coffee, even though Einstein Brothers probably has just as good of coffee as Starbucks. I do this because I like the experience I have at "my" Starbucks.

Starbucks is probably a pretty typical 'experiential marketing' example. But there are millions out there, and even more that are popping up every day...ipod and itunes with the artistic/quirky/hip users--mastercard and the priceless slogan--marc jacobs using men models in women clothing--freebirds burritos--redbull--budweiser, all these products that are simply goods, for the most part completely undifferentialable in a brand-free test---have created a brand personality that consumers assume when they use the brand. "I'm an Apple user, He's a PC"...these products are beginning to define who members of society are.

But now it has become a competition, I think, for any and every product out there to create this experiential brand personality, and for many low involvement products it seems almost ridiculous to try and imbude them with some sort of emotional or sentimental attributes. Lately I've been seeing a lot of commercials featuring moms and kids cuddling and safe and laughing, and they will have this slogan like "Now you can know everyday your child has the safest/best/most loving experience in the world"...and then the product is diapers or socks or something that really isn't that emotionally compelling.

Of course I understand that as marketers, our job is to try and make our products as complete and desireable as possible, and often that means looking at low involvement/boring products and finding the deeper, underlying meaning. Like mastercard, it's not just a credit card, but it's a way to give your family the most unforgettable vacation ever, or whatever. But I think that marketers need to realize that the experiential product/service has been a trend that is hugely successful, but that will have to peak and decline at some point. And only those products that can truly back up and substantiate the experience or personality they are trying to assume will survive.

So I think it's an interesting challenge for our generation of marketers to try and look beyond the experiential product and try to see what branding strategies could be popular in the future. Or maybe even just try and find a new take on creating the experience or personality of products. In today's world, everything is evolving at a faster pace, and the world loses interest almost immediately. So I think that to be competitive, marketers must always be doing whatever works at the moment, but searching and looking for the innovation that will be the future.

Overwhelming Choices

I think that Barry Schwartz has touched on something that plagues everyone. For instance, if I am in a hurry or on somwhat strict time table, I never go to the grocery store for the exact reasons he listed: there are too many things to buy, and I get sidetracked and spend hours idly wandering the isles.

I especially related to his observation on young adults and the personal choices they face today. The option of marriage, job, grad school, peace corp, studying abroad, etc, etc, etc, take up thousands of extra minutes in my life. Often when I think to myself 'I really got a lot done today' perhaps only 20% of it was actually related to school (my primary occupation), where as the vast majority of things I 'accomplished' had to do with running errands, shopping, looking for jobs, thinking about all the things i need to do, making lists, filling out applications, e-mailing people questions, calling people with questions, answering other peoples' questions, going to meetings... and all of the million other things that the average adult in an American society deals with on a daily basis.

In regards to the consumer, I think that the choice paradox is a stumbling block in their consumption. In knowing that they have the resources (i.e. internet) to find the 'perfect' good, they spend hours searching and agonizing about it, imagining the ideal object, that when they actually obtain it, it falls short of their expectations. So his observation that today's consumer has high expections and therefore a significant risk of disappointment is very applicable.

When I go dress shopping for a special occasion, I usually got to several small stores and place one item on hold at each. I do this because I think at the smaller store, it's less likely someone will have the same dress I want (because there are usually only one in each size), and especially in Austin, boutiques tend to find out of the labels to attract buyers from the larger dept. stores (i.e. Neiman Marcus, Saks, Nordstrom, etc). But I always buy the dress from the store that has a return policy, because I don't want it to be set in stone if I change my mind, or gain 10 lbs., or end up in the hospital the day of the event and can't attend.

This is just to illustrate that with all of the options available to consumers, marketers have to realize that not only the merit of the good comes into play in the consumer's mind. And many of the variables that affect consumers are difficult to predict and even more difficult to control.