Introduction to Rocky Mountain International&European Tourism Marketing: Introduction to Rocky Mountain International & European Tourism Marketing


Rocky Mountain InternationalFY05: Rocky Mountain International FY05 Successful Regional Tourism Promotion For Wyoming, Idaho, Montana, South Dakota Why International? How RMI Works RMI Partnerships Trends and Tactics


What is Rocky Mountain Intl.?: What is Rocky Mountain Intl.? Rocky Mountain International is the contracted European inbound tourism marketing company for the states of South Dakota, Wyoming, Montana and Idaho. We work directly with marketing representatives from each of those four states.


Why Go International?: Why Go International? International tourists spend five times as much time and five times as much money visiting the United States than domestic tourists. Domestic: $ 331.00 International: $1,530.17 *1999, U.S. Dept. of Commerce Europeans have, on average, 5-6 weeks of government mandated vacation time plus up to 16 annual paid public holidays.


Why Go International?: Why Go International? International guests are predisposed to visit. International guests are more likely to visit during "shoulder" or off-peak seasons than domestic travelers. Many international guests are much more willing to visit "off-the-beaten-path" rural attractions or destinations than domestic visitors.


Why Go International?: Why Go International? International (overseas) visitation is a hedge against volatile domestic and Canadian market swings. Our “detriments” (lack of population, rural, access) can often times be viewed as benefits to a world seeking out green and open destinations. International guests enhance the visitor experience for domestic visitors and create additional perceived value.


Why Europe?: Why Europe? Legal Time Off Requirements: Austria : 30 Days UK : 22 Days France : 25 Days Germany : 24 Days Japan & US : 10 Days


Top Overseas Markets: Top Overseas Markets Rank Country 2003p(Millions) Change(p) 1. United Kingdom 4,687,000 10% 2. Japan* 4,244,000 7% 3. Germany 1,423,000 7% 4. France 995,000 8% 5. South Korea 710,000 8% 6. Venezuela 544,000 4% 7. Brazil 583,000 4% 8. Italy 550,000 8% 9. Australia 514,000 10% 10. Netherlands 495,000 10% *The UK has overtaken Japan for the first time in 15 years. Source: Tourism Industries, U.S. International Trade Administration - 2003 Bold indicates RMI markets


Why RMI?: Why RMI? Founded in 1990: South Dakota & Wyoming in 1990; Montana in 1991; Idaho in 1993; Gateway Cities, independent North Dakota program in 1997. STRATEGIC GOALS: 1.) Market and promote Northern Rocky Mountain states/region as a legitimate international destination;


Why RMI?: Why RMI? 2.) Provide a cost-effective way for states without large tourism budgets to become major players in the international marketplace through pooling of limited funds and private sector partnerships; 3.) Provide a structure that allows individual states and entities to promote unique products.


Why RMI?: Why RMI? 4.) Provide overseas on-site offices and contract personnel in target markets to represent the region and implement a well-defined and accountable long-range marketing program; 5.) Implement programs that create opportunities for the private sector to do business and grow the tourism economy within the state and region.


Current RMI Services: Current RMI Services Five Overseas Offices & Personnel Multi-Language Publication - Real America Guide Multi-Language Web site: rmi-realamerica.com Central European Fulfillment and Distribution Overseas Trade and Consumer Shows Familiarization Tours “Roundup” Marketplaces for Private Sector


Current RMI Services: Current RMI Services TRIP Reports: On-Line Inventory and Statistics on regional product On-Line Databases Quarterly Newsletters & Annual Report Corporate Sponsorships and Partnerships Travel Trade and Media Liaison Specialized Promotions and Events


What It Would Cost Each State Without Partners: What It Would Cost Each State Without Partners 1. Overseas offices in Germany, the UK, France, Benelux and Italy $360,000 Overseas trade shows in above markets $ 81,306 3. Scandinavia Mission $ 30,000 4. Foreign language publications, website(s), Visit $175,000 USA participation in each market 5. Staff Travel &Accommodations $ 29,000 6. Administration, Staffing, Roundups, $ 490,000 Communications, Fam Tours, Advertising, Fulfillment, Postage, etc. TOTAL $1,129,915


Benefits of RMI Cooperative Marketing in FY05:: Benefits of RMI Cooperative Marketing in FY05: State Contracts* : $776,000 Gateway City Agreements : $ 44,500 Partner Agreements : $ 37,350 Airline Partnerships (in-kind) : $ 42,000 Accommodation Partnerships (in-kind) : $ 43,000 Other Partnerships (in-kind) : $ 34,500 RMI Publications : $152,400 RMI-RealAmerica.com : $ 42,000 Trade Shows, Roundups, Seminars : $162,100 Value of Regional Marketing Program :$1,333,850 *State Investment: $ 14.5% of total program value.


FYO5 RMI Gateway Cites: FYO5 RMI Gateway Cites Denver, Colorado Minneapolis/St. Paul, Minnesota Salt Lake City, Utah Spokane, Washington Portland, Oregon


FYO5 RMI Partners: FYO5 RMI Partners Yellowstone Park Lodges (Xanterra) Rapid City CVB Buffalo Bill’s Cody Country Boise Area CVB United, Northwest, Delta Airlines


FYO5 RMI OfficialReceptive Tour Operators: FYO5 RMI Official Receptive Tour Operators Rocky Mountain Holiday Tours Western Leisure, Inc.


RMI Worldwide Offices: RMI Worldwide Offices RMI-GERMANY: Rita Hille, Director German Market, Wiechmann Tourism Services, Scheidswaldstraße 73, D-60385 Frankfurt/M Germany, •Email: rita@wiechmann.de RMI-UK : Claire Blacknell, Director UK Market, Office: 6 Tamarisk Close, Stubbington, Fareham, Hampshire, P014 2SW UK, •Email: rmi.uk@btinternet.com RMI-BENELUX:Arjan Helle, Karin Gomes, Steynlaan 40, P.O. Box 872, 3700 SW Zeist, The Netherlands, •Email: karin.gomes@targettravel.nl RMI-FRANCE OFFICE: Hervé Duxin, France Office Manager, BP 377, EVREUX Cedex 27003, France; •Email: herve@duxin.com RMI-ITALY: Dr. Olga Mazzoni, Mario Boveri, Directors; Thema Nuovi Mondi, Via Carlo Pisacane 26, 20129 Milano, Italy, •Email: rockymountain@themasrl.it


South Dakota Growth: 25% growth in product from 2003 to 2004: South Dakota Growth: 25% growth in product from 2003 to 2004 Overnights Offered By Tour Operators


Wyoming Growth: 6% increase in product from 2003 to 2004.: Wyoming Growth: 6% increase in product from 2003 to 2004. Overnights offered by tour operators


Montana Growth: 33% growth in product from 2003 to 2004: Montana Growth: 33% growth in product from 2003 to 2004 Overnights offered by tour operators


Idaho Growth: 69% growth in product from 2003 to 2004: Idaho Growth: 69% growth in product from 2003 to 2004 Overnights offered by tour operators


Yellowstone Shows 20.8% International Visitation: Yellowstone Shows 20.8% International Visitation Origin: 1. German Market 21.1%* 2. Canada 15.2% 3. England 9.6%* 4. Benelux Market 7.0% 5. France 6.0%* 6. Italy 5.4%* 7. Korea 4.4% 8. Japan 3.5% 9. China 2.9% 10. Israel 2.8% * = RMI markets Study conducted by National Park Service, 2001


RMI Website: RMI Website REACH THE WORLD! Total redesign as of 2004 Includes 17 regional itineraries Includes 44 pages in each language Excellent Banner Ad Opportunities German, French, Italian mirror sites French, Italian and Benelux stand-alone sites WWW.RMI-REALAMERICA.COM


RMI Website: RMI Website Total Hits last year : 1,877,267 Unique Visitors : 159,000 International Visits : 77% of visitors


RMI Real America Guide: RMI Real America Guide Professionally Produced by Gordon Publishing 78 page full color guide to the RMI Region Printed in 4 languages 35K-English 25K-German 10K-Italian 10K-French Distribution program in five countries to tour operators, travel agents, journalists, and consumers Primary regional response piece for fulfillment www.gordonintl.net


International Marketing 101:The Do’s and Dont’s: International Marketing 101: The Do’s and Dont’s Delete sample document icons and replace with working document icons as follows: From Insert Menu, select Object... Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked Click OK Select icon From Slide Show Menu, Select “Action Settings” Click “Object Action” and select “Edit” Click OK •The Do’s - Define Your Objectives - Analyze Your Tourism Product - Identify Your Main Selling Points - Analyze Your Economic Environment - Establish Your Rates - Target Your Markets - Establish Personal Relationships - Learn About The Market You Want To Enter - Use Your Resources


International Marketing 101:The Do’s and Don’ts: International Marketing 101: The Do’s and Don’ts Delete sample document icons and replace with working document icons as follows: From Insert Menu, select Object... Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked Click OK Select icon From Slide Show Menu, Select “Action Settings” Click “Object Action” and select “Edit” Click OK • The Don’ts - Don't Go Unprepared into Foreign Markets - Don't Enter Foreign Markets Without A Long-Term Commitment - Don't Be Adamant About What You Consider To Be Your Best Feature - Don't Push A Product That Won't Sell - Don't Make It Difficult To Sell Your Product - Don't Panic If Nothing Happens Immediately


How The Industry Works: How The Industry Works Delete sample document icons and replace with working document icons as follows: From Insert Menu, select Object... Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked Click OK Select icon From Slide Show Menu, Select “Action Settings” Click “Object Action” and select “Edit” Click OK You Wholesalers or Receptives 20-30% Nigel, Berthold, Pierre (Potential Customers) Internet


Pricing Your Product:: Pricing Your Product: Delete sample document icons and replace with working document icons as follows: From Insert Menu, select Object... Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked Click OK Select icon From Slide Show Menu, Select “Action Settings” Click “Object Action” and select “Edit” Click OK . There are two ways to price your product for the travel trade to include commissions. The first is to "back off" the commission from your published rack rate. The second, and most preferable, is to establish a rack rate with commission built in starting with your net rate. 1. Determine Your Net Rate $100 Per Night (Including overhead, print, promotion, profit) 2. Determine Commission Via Function x = rack rate x - .25x =.75x x = $100 ÷ .75 $100 ÷ .75 = 133.33 3. Add In Taxes - 4% (Or Whatever) $138.66 Per Night (Commissions should not be paid on tax) 4. Round Off in Your Favor $139.00 Is Your Rack Rate


Promoting Your Product: Promoting Your Product Delete sample document icons and replace with working document icons as follows: From Insert Menu, select Object... Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked Click OK Select icon From Slide Show Menu, Select “Action Settings” Click “Object Action” and select “Edit” Click OK • Establish Credibility - Relationship development is key to success. - Using your networks is the key to relationship development: RMI, state tourism, region, CVB - Build Trust • Reliability • Credibility • Knowledge of your business and other related businesses - Comprehend liability of the tour operator • Greater value placed on vacations as a right • European Union rules/regulation are strict and enforceable • Full disclosure of rates with taxes and tips inclusive. .


Promoting Your Product: Promoting Your Product Delete sample document icons and replace with working document icons as follows: From Insert Menu, select Object... Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked Click OK Select icon From Slide Show Menu, Select “Action Settings” Click “Object Action” and select “Edit” Click OK • Prepare for effective follow-up - Review Business Cards received - Ask when to follow-up? Immediate response may not be necessary - Read leads and pick out pertinent ones to your business - Attend RMI Roundups - Host state and regional familiarization tours and use the opportunity to sell your product.


Communicating: Communicating Delete sample document icons and replace with working document icons as follows: From Insert Menu, select Object... Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked Click OK Select icon From Slide Show Menu, Select “Action Settings” Click “Object Action” and select “Edit” Click OK • Faxes - 011 gets the international operator - Verify city/country code, check the phone book for these codes - Acknowledge receipt of any fax received so they know you got it-even if you cannot immediately answer their question • E-Mail - Acknowledge receipt-even if you cannot immediately answer their question - Look into getting auto response if you will be out of town, in the field, helping guests for any extended period of time


Advertising: Advertising Delete sample document icons and replace with working document icons as follows: From Insert Menu, select Object... Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked Click OK Select icon From Slide Show Menu, Select “Action Settings” Click “Object Action” and select “Edit” Click OK • Images - Invest in scenic slides to which you have full rights - Trade out w/professional photographer - 1st generation - Well captioned so you get the credit! • Advertisements - Real America Guide/State Travel Guide - www.RMI-RealAmerica.com -Include E-mail, address w/country, fax and phone number -Avoid using 800 numbers unless they work from oversees and if so note in the copy - Avoid vanity numbers-No letters on phones oversees • Editorial - Guide Books - Newspaper and Magazine Articles


How To Get Involved: How To Get Involved Delete sample document icons and replace with working document icons as follows: From Insert Menu, select Object... Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked Click OK Select icon From Slide Show Menu, Select “Action Settings” Click “Object Action” and select “Edit” Click OK There is no “membership” fee thanks to your state. In Partnerships, destination associations or as individual product, here’s how you can get involved in the State/ RMI International Marketing Program: Program Date Site Cost/How Real America Guide Aug. 1, 2005 N/A $1,000 and up (Please contact Gordon Publishing or RMI) Website banner ad Currently Available N/A $ 300 and up (Please contact RMI) ITB-Berlin March 11-15, 2005 Berlin, CLOSED Germany RMI Roundup April 14-16, 2005 Boise, ID $ 475 WTM Nov. 7 - 10, 2005 London, $3,600 England Hosting Fam Annual Your Place Contact your state Tours representative