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Intro: The Proven AAA market

Intro: The Proven AAA market. Unique insight, Perspective & Practical Tips for CVBs/DMOs, Hotels & Attractions for tapping into the proven, profitable AAA market Presented by Terry Patton Regional Manager – AAA Multimedia. LTPA Summit 2014. Perspective – Proven AAA Market.

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Intro: The Proven AAA market

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  1. Intro: The Proven AAA market Unique insight, Perspective & Practical Tips for CVBs/DMOs, Hotels & Attractions for tapping into the proven, profitable AAA market Presented by Terry Patton Regional Manager – AAA Multimedia

  2. LTPA Summit 2014

  3. Perspective – Proven AAA Market • #4 Overall Brand in Travel Industry Phocus Wright Brand Marketing • “Travel with Someone You Trust” AAA’s slogan • Trusted Industry leader with 54 million members – 1 out 4 households in the US and 22% of all registered cars on the road! • 35% of the entire US travel market – 23% of all room nights in LA, 29% in New Orleans. 4.5 million searches for New Orleans on aaa.com • AAA members travel more often, stay out longer, have higher incomes & spend more i.e. better prospects for the essential upscale leisure/drive market – “best” segment in travel. Members spent 25 billion on entertainment in 2013.

  4. 54million Members in the United States and Canada 35% of all paid room nights are accounted for by members 66% of members have stayed in paid lodgings in the past 12 months Who is the AAA audience? $40 billion spent on lodging room nights 63% of members obtained travel information from AAA $110,285 Average household income of members Slide 5

  5. AAA Members by Age: AVG 50 Millennials:  15% Gen X:  25% Boomer:  47% Matures:  13%

  6. 35% Hotel Chain Website How do members book their hotel stays? 23% Direct to Location 14% Toll-free Number 13% Other Website 8% No reservation 7% Travel Agent Slide 7

  7. What travel products does AAA provide? Slide 8

  8. Attachment B AAA Member’s Vacation Life Cycle Dream • Web Search • AAA Content Search • Club-configured Content on Club Web sites • Travel Experiences from consumers and experts REMINISCE Plan • Photo and Video Sharing • Solicit Reviews & Opinions • Access AAA Travel Information Content • Contextual Mapping • ExpertRecommendations • Consumer Opinions • Itinerary Builder Share Any Content Experience Shop/Book • Mobile App and Web Content • “Around me” Mapping of AAA Value Adds • Self-created Itinerary • Photo & Location Sharing • Member Rewards and Discounts • Hotel, Attraction, Restaurant, Activities & Event Details • Complete Booking Capabilities • Photos, Videos, Member Opinion Anticipate • Logical Sequence of Delivery: Unbiased, Mapped, Detailed Recommendations of Where to Stay & Eat, What to See and Do • Itinerary Suggestions, Top Picks, Best of Lists AAA Confidential

  9. CVBs/DMOs • Get all your hotels, attractions, restaurants to apply to get listed/rated with AAA – builds editorial content in primary AAA travel planning tools –aaa.com, aaamobile, AAA TourBooks . www.aaa.biz/approved • Industry standard rated properties “ raise the bar” to sell your destination and attract more upscale leisure/drive market travelers. • Upscale leisure/drive market travelers stay longer, spend more – higher “retail” rates for hotels means higher tax and local revenue sources. • Get event calendar and editorial for stories to AAA editors –national and club magazines, too. • Develop leads from AAA offices at all industry events – and market directly to AAA travel offices, too.

  10. Lodgings • AAA ratings are industry standards & 60% of all consumers want objective hotel ratings to make informed choices. Trusted ratings means better conversion rates, more trusted marketing & ultimately more revenues. • AAA ratings drive higher revenues by being able to command higher rates & recognition. • Travel agents, consortiums, convention & meeting planners, group & tour business & government contracts rely on AAA ratings. • AAA rates are more high-yield, “retail” rates that can drive ADR and revenues vs OTAs or other business models.

  11. Rate Differential Based Upon AAA Diamond Ratings - 12 Phocus Wright &AAA

  12. Consumers mostly trust expert reviews, but branded content & user reviews have a place… Attention marketers: Look to expert reviews before you deploy your own branded content to attract consumers. According to a new Nielsen study, 85 percent of consumers look to content from experts before they make a purchasing decision. 67 percent of consumers said an endorsement from an unbiased expert would make them more likely to purchase a product. “It’s not about one or the other, it’s about a cohesive marketing mix of different content,” said Inpowered CEO and co-founder Peyman Nilforoush, in an interview with VentureBeat, comparing the value of expert reviews over things like content created by companies and user reviews. “What you need to do is start with trusted content.” While this may all seem like common sense, the results shed light on exactly what consumers pay attention to as they assess potential purchases — which makes this data catnip for marketers eager for consumer attention

  13. So, why do we still need professionals? First, they have much more experience visiting a diverse range of hotels around the world. In most cases — excluding frequent business travelers or travel writers — guests are the opposite, journeying up to five times a year. Second, guests are more likely to rate a stay based on rudimentary property features, how the staff treated them and the narrow scope of amenities they used over the course of a brief stay. Professionals, on the other hand, see the big picture. They’re armed with a checklist; guests are armed with emotions. There’s no consistency to guest criticisms, which is where the experts must play a regulatory role. The average guest might give a property a top score because the front desk staff treated them nicely on top of free water bottles and Wi-Fi. Such a review excludes judgment on specifics like the availability of a 24-hour bellman, the number of amenities in the bathroom, the security details or the food quality. Experts have training, experience and a list to help them pass impartial judgment….

  14. Top Trends within AAA Market : Bookings up 18% on aaa.com with conversion to PPN –due to be completed Dec 2014 Mobile bookings are 19% of all AAA bookings now New Growth in Digital and Extended Audience Programs Higher yield with AAA replaces/decreases dependence on OTAs & other business models – but group/government tie in with AAA. Growth RATE in ADR in US being driving by “retail rates” and qualified discounts like AAA.

  15. Attractions • Get Listed & Rated with AAA • Promote AAA Discounts – call to action • Develop Group/Tour Business with AAA offices • Sell Consignment Tickets • Utilize Show Your Card & Save Affinity Programs for media/promotion value • Get your event calendar into AAA national and club magazine editors and contacts • Utilize GEM designation to showcase your attraction, promote offers, special events to AAA members & other travelers using mobile devices.

  16. AAA Market Questions

  17. Terry Patton Regional Sales & Marketing Manager AAA Multimedia & Digital tpatton@national.aaa.com 636-256-9122 636-448-8555 www.aaa.biz/approved 1000 AAA Drive MS 52 Heathrow FL 32746 407-444-7766

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