Speakers at USTOA Event See Negative Messaging as Obstacle to Recovery

Messaging is a big problem in getting people confident in traveling again, according to Damian Cook, co-founder of E-Tourism Frontiers, speaking at the fifth annual Destination for Destinations Virtual Forum, conducted online for the first time by the United States Tour Operators Association (USTOA). The event is designed by Destination Management Organizations (DMO’s) for DMO’s to discuss relevant industry topics and exchange ideas and best practices.

Cook said messages about health and safety might be going too far. He cited one headline about Singapore requiring the wearing of electronic tags by visitors – and another about Emirates airlines promising to cover funeral costs if a passenger died of COVID.

He said better messages would be simple certifications of health and safety, as well as traditional appeals around a warm welcome and appealing attractions.

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Cook said that even after a vaccine, health protocols will probably remain in place because “travel is an excellent delivery system for disease.” He said a vaccine will not be a cure-all but would present a major psychological shift for travelers.

Greg Lassen, principal with Twenty31 Consulting, said ambiguous messaging from governments, media “hysteria” and warnings by health authorities have created a crisis in confidence. Even millennials, he said, are afraid to fly or travel in general. “The number one fear,” he said, “is not Covid, it’s just that travel will not be interesting because of the restrictions, long lines and attractions like museums being closed.”

What will bring a recovery, said Lassen, is encouraging governments and health authorities to reduce confusion, ambiguities and perceived risk and talking about travel as a fun thing to do. Tour operators, said Lassen, can be mobile – moving to destinations that have good strategies about dealing with the pandemic, are easy to work with, that generate confidence in travel, offer testing and promise a genuine welcome.

Small businesses, said Lassen, will be first to come back – with less volume but higher yield. They will emphasize new experiences rather than new processes – open and natural spaces, for instance. Tour operators, he said, should be prepared to support these smaller businesses, as well as more sustainable travel.

Reinventing Tours and Reimagining Destinations

Al Merschen, partner with MMGY Global, said that almost half of all tour operators in a survey conducted by Travel Consul, a marketing collective, said they were adjusting their business models and designing new products to adjust to the changing landscape. That is a result of the fact that health and safety certification is the top issue for potential travelers followed closely by a destination’s management of the virus. Price is not as important as safety factors, said Merschen, with only a third of U.S. respondents citing that factor.

One “eye opener,” he said, is that a full two thirds of respondents are interested in solo travel, perhaps, he quipped, a result of couples spending so much time together during the past year. He said there is also a strong interest in all-inclusive resorts and cruises.

Tour operators and travel agency associations remain the preferred data source during this crisis (64 percent) followed by destination tourist offices (40 percent).

Terry Dale, CEO of USTOA, said that 34 percent of countries responding to a survey said they don’t know when their countries will open to U.S. travelers; 10 percent said the second quarter of 2021, and the remainder cited other periods of time. He said the FIT market is strongest in terms of future bookings, followed by groups of 20 or fewer, then luxury and river cruises.

About 30 percent of DMO’s have restarted marketing in the U.S., said Dale, and 20 percent said they would start in the first quarter of next year.

Tour Operators Look at Trends

A panel of tour operators answered questions from viewers of the conference, many of which involved projections for recovery. They agreed that bookings are already strong for 2021, with Nish Patel, CEO of Mayflower Tours saying “2022 will be a banner year.” All also agreed that domestic travel is doing very well, including New England and national parks.

Other Trends Seen by Tour Operators

Women are ready to travel and are already planning trips as they mobilize in small groups.

—Support of travel agents is key. Laudi Hanou, vice president of SITA World Tours, said that early in the pandemic when consumers were calling for refunds, it was her company’s strong relationships with advisors that got them through.

—Jon Grutzner, president of Insight Vacations and Luxury Gold, said that all of his tours now include a wellness director, whose job is to heed strict protocols.

—Grutzner also said that no matter who wins the election, there will be a surge of bookings after it is over as people finally stop being distracted by it.

—With DMOs having such limited budgets, creativity is called for – like South Africa having a virtual fireside chat with safari guides.

—Even without budgets, DMOs can provide tour operators with databases and access to consumers.

One overall takeaway from the event, said Merschen, was “Openness is the way to recovery – openness in terms of not having to quarantine, openness in the sense of outdoors, openness in the sense of transparent communications. Consumers,” he concluded, “are looking for openness more than ever.”