Introduction to

Slide 1:Introduction to Rocky Mountain International

& European Tourism Marketing

Slide 2:About RMI

Founded in 1990 Contracted European inbound tourism marketing company for the states of ID, MT, SD, & WY - The Real America Work directly with the international marketing reps. from each of the four states Partnered with two major U.S. gateway cities

Slide 3:About RMI (cont.)

Regional tourism promotion in five European markets: United Kingdom Germany France Italy Benelux (Belgium, The Netherlands, Luxembourg)

Slide 4:RMI Strategic Goals

Market and promote the northern Rocky Mountain states/region as a legitimate international destination Provide a cost-effective way for states without large tourism budgets to become major players in the international travel marketplace through pooling of limited funds and private sector partnerships Provide a structure that still allows individual states and entities to promote their unique products and features

Slide 5:RMI Strategic Goals (cont.)

Provide overseas on-site offices and contract personnel in target markets to represent the region and implement a well-defined and accountable marketing program Implement programs that create opportunities for private sector suppliers to do business and grow the tourism economy within their state and region

Slide 6:Current RMI Services

Maintain five European offices that represent the region Publish a multi-language publication: The Real America Guide Produce a multi-language Web site: www.RMI-RealAmerica.com Distribute state marketing materials to trade, press, and consumers Attend European travel shows and conduct sales missions Travel trade and media liaison

Slide 7:Current RMI Services (cont.)

Coordinate trade and press familiarization tours in the RMI region Host annual RMI Roundup for suppliers and European tour operators Compile TRIP Reports - online inventory of regional product available Maintain online databases for tour operators, media, and suppliers Produce quarterly e-newsletters and annual marketing report Corporate sponsorships and partnerships

Slide 8:Marketing Diversity is the Key!

www.RMI-RealAmerica.com & The Real America Guide RMI Roundup Trade Shows Annual Mega-Fam Sales Missions

Slide 9:Why Target International Markets?

In 2006, International arrivals to the US increased by 4%, for a total of 50.9 million. In 2007, arrivals to the US increased another 10% for a total of 55.9 million visitors. In 2008, arrivals increased 4%, totaling 58 million visitors. 2009 is projected to decrease 8% to 53.3 million visitors. 2010 is projected to increase 3% to 54.8 million visitors, 2011 increase 5% to 57.3 million, and 2012 to increase 5% to 60.2 million. (provided by US Dept of Commerce, OTTI, October 2009) Approximately 41.6% of all International visitors go the 10 major state/territory destinations. (NY,CA,FL,NV,HA,IL,MA,Guam, TX,NJ). Almost 59% visit �non-traditional� destinations. (data is for 2008, U.S. Dept. of Commerce, OTTI)

Slide 10:Why Europe?

European tourists spend an average of $1,982 per trip to the U.S. and stay for 14 days (US Bureau of Economic Analysis, 2002) Europeans have, on average, 5-6 weeks of vacation time, plus up to 16 annual paid public holidays Despite occasional political differences, Europeans love America and what it stands for Europeans are more likely to visit during �shoulder� or off-peak seasons than domestic travelers Europeans are willing to visit �off-the-beaten-path� rural attractions and destinations

Slide 11:Why Europe? (cont.)

Overseas visitation is a hedge against volatile domestic and Canadian market swings Our detriments (lack of population, rural access) are often viewed as benefits to a world seeking out green and open destinations The value of the Euro and British Pound against the U.S. dollar currently makes the U.S. very affordable for many visitors 1�= $1.50, 1� = $1.75

Slide 12:Why Europe? (cont.)

Top Overseas Markets (number of visitors) Rank Country 2008 Change from 2007 1. United Kingdom 4,565,000 1% 2. Japan 3,250,000 -8% 3. Germany 1,782,000 17% 4. France 1,244,000 25% 5. Italy 779,000 23% 6. Brazil 769,000 20% 7. Korea 759,000 -6% 8. Australia 690,000 3% 9. Spain 658,000 27% 10. Netherlands 608,000 20% Source: US Dept of Commerce, ITA, Office of Travel & Tourism Industries (October 2009) Bold indicates RMI markets

Slide 13:The Value of the RMI ProgramWhat it would cost each state without regional partners

1. Overseas offices in Germany, the UK, France, Benelux and Italy��������������.$360,000 2. Overseas trade shows in above markets�������.$ 81,300 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, Communications, Fam Tours, Advertising, Fulfillment, Postage, etc�..������������...$ 490,000 TOTAL $1,165,300

Slide 14:Value of the RMI Program Yearly Benefits

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 (activities, rental cars, 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 *Each State Investment equals 14.5% of total program value.

Slide 15:RMI Gateway Cities

The RMI states work closely with a network of Gateway Cities that are exciting destinations and provide easy access to the RMI region Denver, CO Minneapolis/St. Paul/Bloomington, MN

Slide 16:RMI Marketing Partners

RMI Marketing Partners are region suppliers who support RMI�s marketing efforts and want maximum exposure in the European travel community Xanterra Yellowstone Parks & Resorts Rapid City CVB Buffalo Bill�s Cody/Yellowstone Country Cheyenne Area CVB Southwest Idaho Travel Association United, KLM, Delta, Best Western* *unofficial partners that provide ticket and accommodation assistance for the RMI Roundup and fam tours

Slide 17:RMI Official Receptive Operators

RMI Official Receptive Tour Operators specialize in the RMI region for individual and group travel Rocky Mountain Holiday Tours America 4 You

Slide 18:RMI�s European Offices

� RMI-GERMANY: Rita Hille, Director - German Market Office: Wiechmann Tourism Services, Scheidswaldstra�e 73, D-60385 Frankfurt/M Germany �Email: rita@wiechmann.de � RMI-UK : Martin Roberts, Director - UK Market Office: 1G The Chandlery, 50 Westminster Bridge Road, London, SE1 7QY UK �Email: martin@rmi-realamerica.co.uk � RMI-BENELUX: Arjan Helle, Director - Benelux Market Office: Target Benelux BV, Hof ter Weydeweg 10-b, 3451 ST Vleutian, The Netherlands �Email: arjan.helle@rmi-realamerica.nl � RMI-FRANCE OFFICE: Herv� Duxin, Director - French Market Office: 3 Square Neuilly Chateau, 92220 Neuilly sur Seine, France �Email: herve@duxin.com � RMI-ITALY: Dr. Olga Mazzoni, Director - Italian Market Office: Thema Nuovi Mondi, Via Carlo Pisacane 26, 20129 Milano, Italy �Email: rockymountain@themasrl.it

Slide 19:State Growth: South Dakota

Overnights Offered by Tour Operators Overnights Offered by Tour Market Increase in Overnights from 07/08 to 06/09: +73,017 Percent Increase: 21%

Slide 23:Web Marketing

www.RMI-RealAmerica.com Visibility The website receives over 2 million hits and nearly 230,000 unique visitors per year with monthly average visitors at just over 15,000 Reaching the Right Audience Your target audience is buyers throughout Europe who are logging onto the site because they are interested in booking packages to the RMI region Value For as little at $300 a year, you can get the word to as many as 230,000 online visitors Year-Round Promotion For an entire 12 months, your ad will be just a click away!

Slide 24:RMI Publications

The Real America Guide The guide is a unique travel magazine, published to foster both trade and consumer travel to ID, SD, MT, & WY - The Real America Professionally produced by Phoenix International Publishing 36 page, full color guide to the RMI region Printed in 4 languages English German Italian French Distribution program in five countries to tour operators, travel agents, journalists, and consumers Primary regional response piece for fulfillment

Slide 25:International Marketing 101

The Do�s Define your objectives Analyze your tourism product Identify you main selling points Analyze your economic environment Establish your rates (if applicable) Target your markets Establish personal relationships Attend RMI Roundup Attend international shows (ITB, WTM) Host fam tours Advertise Learn about the market you want to enter Use your resources Work closely with your state marketing representative

Slide 26:International Marketing 101

The Don�ts Don�t go unprepared into foreign markets Don�t enter foreign markets without a long-term commitment (it can take years for new product to develop) 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

Slide 27:How the Industry WorksPricing your product for the international market

Nigel, Philippe, Harry Internet Wholesaler or Receptive Travel Agent You Tour Operator

Slide 28:Pricing your Product

There are two ways to price your product for the travel trade to include commissions: Deduct the commission from your published rack rate (deduction will be 20-30%) Determine a net rate for receptives and tour operators that already includes the profit you need (most preferable) The deductions/commissions paid to a tour operator or receptive need to be considered a marketing expense. You do not pay a receptive until they book a room for you.

Slide 29:Promoting your Product

Establish Credibility Relationship development is key to success RMI Roundups International Trade Shows Using your networks is the key to relationship development (RMI, state tourism, region CVB) Build Trust Reliability and consistency 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/regulations are strict and enforceable Full disclosure of rates with taxes and tips inclusive

Slide 30:Promoting your Product (cont.)

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 ones pertinent to your business (leads from travel shows are available from your state rep.) Host state and regional familiarization tours and use the opportunity to sell your product!

Slide 31:Promoting your Product (cont.)

RMI Roundup The RMI Roundup is a unique marketplace that brings tour operators and RMI region suppliers together for meetings that focus on intense product development Held annually, the Roundup has been an extremely cost-efficient and effective way for suppliers with limited marketing budgets to be able to market internationally 2010 Roundup will be held in Great Falls, MT April 14-16

Slide 32:Effective Communication

Faxes 011 gets the international operator Verify city/country code, check the phone book or online for these codes Acknowledge receipt of any fax received so they know you got it, even if you cannot immediately answer their questions Email 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 In-person Acknowledge possible language differences and act accordingly

Slide 33:Use Targeted Advertising

Advertisements Utilize RMI�s targeted advertising avenues RMI-RealAmerica.com, The Real America Guide State travel guides Include email address w/country, fax and phone Avoid using 800 numbers unless they work from overseas and if so not in the copy Avoid vanity numbers (no letters on phones overseas) Editorial Guide books Newspaper and magazine articles

Slide 34:Get Involved Today!

There is no membership fee thanks to your state. Here is how you can get involved in the State/RMI International Marketing Program