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September 29, 2009
In this issue:

COTA Member Update
Timing is Key - 2010 TIC Survey
Media Report
Online Travel Web Site Traffic and Conversion Remain Strong
Best Practices for the Student Youth Travel Industry
Baby Day at VCM


COTA Member Update

SPECIAL COTA BOARD MEETING - September 30, 2009

COTA's Board of Directors will be meeting in Vancouver on September 30 and receiving delegations of members. The purpose of this meeting is to create more opportunities for COTA's Board to engage with members and ensure we do not overlook any important issues in this period of significant and fast moving change.

There has been considerable interest in this process but some members have indicated they do not have the time or ability to come as a delegation. There are also limited opportunities within a one day meeting due to time constrains. Therefore, COTA is encouraging written feedback related to the September 2, 2009 COTA Council Resolutions or any other areas that members want to bring to COTA's attention.

To enhance transparency COTA will communicate the general nature of all topic and issue areas that are brought to the Board's attention in our next Member update, scheduled for the week of October 5th.


SAVE THE DATE:

COTA COUNCIL MEETING & AN EVENING TO RECOGNIZE ROD HARRIS
October 30, 2009, Hyatt Regency Hotel, Vancouver

This COTA Council meeting will serve to update the Council on progress and to seek further Council guidance and support for achieving the results identified in our September 2, 2009 Council Motions.

In conjunction with the Council Meeting, COTA will be hosting an industry-wide event on the evening of October 30th to recognize and honour the contribution of the outgoing President and CEO of Tourism BC, Rod Harris. This will be a ticketed event.

More information on both of these events will follow once details and agendas have been confirmed. Please contact Kitka Neyedli at kneyedli@cotabc.com or 604-678-4012 for more information.


SEPTEMBER 2, 2009 RESOLUTION UPDATES

HARMONIZED SALES TAX (HST) RESOLUTION

COTA continues focusing its efforts on addressing tourism industry concerns relating to the HST.

After dozens of meetings with members, government officials, and other stakeholders, COTA has drafted and distributed an initial letter to federal Finance Minister, Jim Flaherty and provincial Finance Minister, Colin Hansen regarding the HST.

The first component of the strategy is to seek a delay or phasing-in of the HST in order to provide businesses and consumers with the flexibility to absorb price increases. COTA is also seeking clarity and confirmation regarding the Foreign Convention and Tour Incentive Program (FCTIP) which provides GST rebates to tour operators and conventions.

COTA is seeking to have the FCTIP provide rebates for the full 12% HST and is advocating for a return to individual rebates and point-of-sale rebates as in the past GST Visitor Rebate Program.

Click here to read COTA's letter to Finance Ministers Flaherty and Hansen.

The second tier of COTA's strategy is to work with the provincial government to identify potential HST mitigation options in order to reduce the impact of HST on tourism-related businesses. COTA's initial analysis suggests that nearly all tourism-related sectors will realize few benefits from Input Tax Credits (ITCs) to reduce costs, whereas most tourism-related businesses will be required to charge an additional 7% tax on most products and services. In many cases businesses will be unable to increase their prices (tax inclusive) due to fixed price contracts, consumer sensitivity, or wholesaler / packager inflexibility.

In these cases the businesses will be forced to absorb the 7% tax themselves, which in some cases may even threaten the viability of these businesses.

COTA will finalize its HST economic impacts analysis in the coming weeks and will share this with members, government, and other stakeholders.

COTA has a meeting scheduled with the Ministry of Finance on October 7 to discuss potential mitigation options, based on discussions initiated by the COTA HST Tourism Working Group. We have also been working to ensure broader business community support for our HST mitigation recommendations.

COTA will keep its members apprised of progress on this important file in the upcoming weeks.


UPCOMING INDUSTRY EVENTS

Royal Roads University Information Session
September 30, Vancouver

Meet with a Faculty member from the School of Tourism and Hospitality Management from Royal Roads University for a conversation about how we can help advance your career with our Graduate Certificates and Master of Arts in Tourism Management.

Click here for more information.

Hospitality Industry Conference & Exposition
November 22-24, Vancouver

Join the BC Hotel Association (BCHA), the BC Restaurant and Foodservices Association (BCRFA), the Alliance of Beverage Licensees of BC (ABLE) and the BC Lodging and Campgrounds Association (BCLCA) in Vancouver for the BC Hospitality Industry Conference & Exposition on November 22-24, 2009. You will have the opportunity to get informed about the most relevant and timely issues affecting the hospitality industry today.

Click here for more information


Timing is Key

The 17th Annual Tourism Industry Conference (TIC) will be held April 18 - 20, 2010 following the Olympic and Paralympic Winter Games. The format for TIC 2010 will change significantly from past Tourism Industry Conferences, to specifically target the delivery of critical business information to operators, while promoting opportunities for tourism leaders and operators to network and support business development needs.

TIC Survey - Your Input is Encouraged!

Specific elements and topics for the 2010 conference are being designed around a survey COTA is currently conducting, plus suggestions provided by a committee comprising industry leaders.

To participate in the survey, please click here: http://www.surveymonkey.com/s.aspx?sm=ucxql7u_2fNqOu7yK1_2f2tmKg_3d_3d

Deadline for submissions is Wednesday, September 30.


Media Update

Last week Lisa, our Regional Media Representative meet with more than two dozen local and international travel writers, journalists and editors at Go Media Marketplace in Whistler. The quality of media was exceptionally high this year, as those in attendance went through an extensive application process and were qualified by the Canadian Tourism Commission (CTC). The Media also participated in a number of activities and tours throughout Sea to Sky Country, which included Olympic Venue tours.

As a result of her meetings and seminars, Lisa has concluded that the Media want:

  • 2010 stories – something different, catchy, unique and heartwarming (profiles and real stories)
  • New Products – new hotels, spas, restaurants
  • Less Junk – Over using email and/or sending out too many press releases means they are not being read.
  • Get to know your media – don’t send golf information to a food writer, know what they write and personalize emails.
  • Day trip and “staycation” stories – consumers are travelling locally, and Vancouverites are vacationing at home, so even if you haven’t had a local market before, it’s time to pitch your products to locals and local publications.

Online Travel Web Site Traffic and Conversion Remain Strong

Travel Web sites are performing well in the midst of the broader travel industry downturn. PhoCusWright's Online Traffic and Conversion Report, a new study conducted in partnership with Compete Inc., shows that monthly traffic and conversion is up in almost all travel categories in the second quarter of 2009, compared to the same quarter of previous years.

Despite the downturn, transactional Web sites (i.e., suppliers and online travel agencies) showed strong growth in June monthly visitors year-over-year, with cruise lines up 19% and hotel chains up 13%. Online travel agencies (OTAs) also showed slight increases in hotel and car rental visitor volume in the first half of 2009 compared to 2008 and 2007. The only category to show a decline in traffic from 2008 through 2009 was the OTA air category which is down 15%. This is not reflective of weak performance however, as OTA air conversion has increased significantly over the same time period.

"The reliance that consumers have on travel Web sites has not weakened one bit," says Carroll Rheem, director, research at PhoCusWright. "Online channels are attracting, engaging and inspiring travelers who recognize that this year is actually a fantastic time to take a trip. Consumers are certainly spending less, but they are not giving up travel, nor are they turning away from the Web sites that offer them the selection and convenience they value."

Travel suppliers and OTAs display a wide range in their ability to convert their online shoppers to purchasers. In 2009, monthly online conversion rates ranged from 19.7% for car rental suppliers to 0.2% for cruises booked via OTA. Suppliers generally garner higher conversion rates than OTAs. However, OTA conversion levels show a general upward trend in 2009. On the flip side of conversion is the much larger group of travelers who shop, but do not complete a booking. In 2009, this "leakage" remains remarkably consistent across all travel products.

"The online travel ecosystem now supports a diverse variety of transactional and informational sites—each playing a role in how consumers research, shop for and purchase travel," adds Ms. Rheem. "For example, we found that visitation to planning and review sites drives dramatic differences in hotel conversion rates. Understanding the intricate relationships that connect all travel sites is essential to setting the right strategic path."

The study by PhoCusWright and Compete Inc - PhoCusWright's Online Traffic and Conversion Report is available for US $1,395—order before October 23 at the introductory rate of $1,195 (save 15%).

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PhoCusWright is the travel industry research authority on the evolving dynamics that influence how travelers, suppliers and intermediaries connect.


Best Practices for the Student Youth Travel Industry

On your behalf, Kevan recently attended the 13th Annual Student and Youth Travel Association Conference. Did you know that:

  • 24% of all international travelers worldwide are youth/student travelers
  • 23% of all travel dollars spent in Canada is by student/youth travelers
  • 85 million young people in the US and Canada between 5 & 25 years of age
  • Largest youth group is currently 10 to 14 years old

Ever wondered what it takes to work with the “student travel” market? The following have been identified as the ideal characteristics that student and youth tour companies look for when choosing a destination.

What Student Tours (grades K-12) Look for in Hotels (highest priorities):

  • Student friendly & helpful staff
  • Large number of concentrated double-double rooms
  • Affordability and direct billing
  • 1/20 comp ratio
  • Pre-arrival check-in

What Student Tours Look for in Attractions

  • Student/youth friendly and helpful staff
  • Able to handle large groups
  • Easy check-in
  • Group friendly briefing/meeting area
  • Hands-on activities
  • Multi-media/multi-sensory

What Student Tours Look For In Restaurants

  • Student/youth friendly & helpful staff
  • Quick turn-around (45-60 minutes)
  • Location/accessibility
  • Non-smoking area
  • Minimum wait (10 minutes)

What Student Tours Look for in Motorcoaches

  • Student/youth friendly drivers
  • Experienced drivers
  • Driver cell phones/direct communication access
  • Safety record

More of the High and Lowest priorities as well as descriptions of the “Good, Bad and the Ugly” as identified by student and travel tour companies can be found here.


Baby day at VCM

As so many of the current and past VCM and W2D staffers have become mothers over the past few years we thought it would be fun to have a baby day! Fun was had by all!

From left to right:
Jane Stark, with Ellie (3 months old); Mary Ann Bell, with Jacob (2 years old); Jennifer Rhyne with Ava (6 months old); Allison Longshore with Nick (4 years old), Darlene Tandon with Ravi (3 months old)
Missing: Shawna Leung, with Nathan (23 months old) (Nathan needed to go home for a nap!)


Your feedback is most welcome on any subject – please e-mail kevan@vcmbc.com.

Vancouver, Coast & Mountains Tourism Region :: Suite 600, 210 West Broadway:: Vancouver
British Columbia :: Canada :: V5Y 3W2 :: 604.739.9011 or 1.800.667.3306 :: info@vcmbc.com