Yukon Market and Trade Readiness Workshop September 30

Yukon Market and Trade Readiness Workshop September 30, 2015 At the Gold Rush Inn, Whitehorse, Yukon With Outcrop Communications & Jonview Canada

Today’s Agenda 9 am – A Project Overview and definitions – Best practice examples from the Trade – Initial research findings 10: 45 - Break 11: 00 – The business case to becoming Trade Ready – Workshop to gather input from stakeholders about the project, possibilities, concerns, ideas and next steps 12 noon • Working Lunch and continue break-outs 1 pm - Adjourn This information will be collected to ensure that any proposed project meets the needs and opportunities for northern tourism stakeholders

Market and Trade Ready Project • A Pan-North Tourism Marketing Consortium (PNTMC) Project • Purpose: to increase national and international trade readiness in the region, growing sales and visitation, trade-ready standards for northern operators, improved Trade partnerships and ultimately, enhanced visitor experiences. • The Project team will present research findings from industry and trade, best practices by Destination/Provincial/Territorial Marketing Organizations (aka DMO/PTMO’s) in Canada and industry learning tools. • Team will then propose and build a common standard of market and trade ready criteria and communications, learning and awareness tools and resources for operators.

Who’s in the room • Your name and business name • # Years in business • Business vision is (pick one): 1. To sell – working on exit strategy 2. Stay same and get smarter (more profitable, same seasons and products) 3. Grow in new markets and do more business (volumes and dollars) 4. Expand into all seasons and serve multiple markets (growing in reach, staff, volumes, revenues, etc. )

Readiness Levels in Business • Your business plan and approach, • how and where you want to grow, • your level of formal training and years experience… …all impact your level of business readiness.

Sampling Standards…

‘Readiness’ Levels (Tourism Yukon) 1. • 2. • • • Business Ready Maintain good standing of all applicable licenses, insurance and legislative requirements. Market Ready Maintain good standing of all applicable licenses, insurance and legislative requirements. Have marketing materials such as a brochure, rack card or web site. During operating season, maintain a 24 – 48 hour response time, or less, to inquiries and a 24 -hour response time to reservation/booking requests. Provide a contact telephone number or e-mail contact year-round. If closed for season, provide automated response through voice mail and/or e-mail. Have a published consumer billing, payment and cancellation policy.

Readiness Levels cont’d 3. Trade Ready • Meet all of the mandatory market-ready criteria. • Have a published trade-oriented billing, payment and cancellation policy for groups and • FIT (Fully Independent Travellers) bookings • Have been market-ready for at least one year, or have successfully operated a tourism business working with the travel trade and with a proven track record for safe and professional operation. • Offer wholesale (net) rates to receptive/inbound tour operators and outbound/ international tour operators throughout the negotiated time period and provided at least one year in advance of the selling season. Be able to guarantee those prices during the selling season.

Criteria are Not Universal From China ADS • Tour Operators must have been in the inbound tourism business in Canada for a min. of 2 years • Agreement to only work with approved tour groups from ADS travel agents • Specifically naming $1 M in commercial liability insurance From Destination Canada • • Specifically naming a minimum $2 M Liability on adventure travel products Demonstrate an adequate budget and marketing plan Accept client vouchers and negotiate billing arrangements in writing When requested, you must be prepared to provide credit to RTOs, and to negotiate industry standard billing arrangements

Have a Vision? … then you have to plan

Definitions Market ready, supplier, whole sale trade, travel agent, outbound, inbound, RTO and more? ? ? Common terminology please….

Definitions Suppliers: • Companies in destination who create and deliver products used in travel industry (accommodations, activities, attractions, transportation, food services etc. ) Receptive Tour Operators: • Companies who research, contract and consolidate travel products in a certain country or area for further distribution to other industry players (typically off-shore) - wholesalers, tour operators, travel agents. • RTOs promote one destination to multiple markets. Key efficiencies RTOs bring to the table: – For their clients – destination knowledge and product expertise; one-stop shopping for great variety of products across the country; packaging solutions; research, booking, production and accounting tools; operational functions; in-destination customer service – For their suppliers – increased marketing outreach at no upfront cost; consolidation of the client base for administration, booking and accounting purposes; inclusion of individual supplier products into a wider context; technological distribution solutions

Definitions cont’d Wholesale Tour Operators: • • Companies who select travel products, prepare them for retail distribution and market to the end consumer. They establish retail selling prices Wholesalers/ TOs promote multiple destinations in one market. They may contract directly or use RTOs as their suppliers. Wholesalers’/ TOs’ main distribution tools are printed brochures and/ or websites. They may be selling to end consumers directly via online booking engines and call centres or through travel agents. Travel Agents: • Companies or individuals who sell travel products marketed by RTOs, wholesalers/ TOs or suppliers directly for commission.

Jonview Canada The leading Canadian Receptive Tour Operator, subsidiary of Transat • Established in 1982 as Jonik Tours, a private company acquired by Transat in 2004 • Head office in Toronto: Corporate, Sales (all markets except Latin Europe), Contracting & Product (all of Canada, except for Quebec and Maritimes), Reservations, Customer Service, Groups (except Latin Europe) • Montreal office: Sales (Latin Europe, France the largest market), Contracting & Product (Quebec and Maritimes), Reservations (Latin European clients), Groups (Latin Europe) • Senior outside sales staff based in Europe

Jonview cont’d Product lines: • Escorted tours, client special series and ad hoc groups • FIT fly-drive programmes, rail and road packages, adventure and wildlife viewing packages • FIT a la carte services (hotels, ranches, lodges, excursions and activities, transportation) Client base: • 500+ wholesalers and tour operators worldwide. Key markets: Germany, France, United Kingdom, Switzerland, Netherlands, Belgium, Italy, Spain, Australia, Canada*, USA*, India

Jonview cont’d Total passengers serviced annually: approximately 250, 000 Main selling tool is wholesale tariffs (in order of appearance): • Winter (ski) – end of March • Escorted Holidays & Group Services – end of April • FIT Services (a la carte year round tariff) – end of July • Fly/Drives & Packages (packaged products year round tariff) – end of July • Sélection Spéciale (French tariff) – mid September • Italian tariff – end of September • Spanish tariff – mid October

Jonview cont’d Technology: • Proprietary reservation system with host to host capabilities and web application. The system functionalities include: • Supplier contract and client profile management, real time inventory management, package building, a la carte and packaged products reservation application, FIT and group accounts payable application. Approximately 80% of Jonview business is booked electronically

Jonview Criteria Product and service standards • Identifying standards: (a) Accommodations – minimal requirements and trends (b) Sightseeing and activities – content and flow; concept of experiential tourism • Consistent delivery Pricing and terms of business – reference to next slide • Distribution channels and the concept of price integrity* • Availability and instant confirmations • Cancellations and grace period • Payment options – benefits of direct billing Long term commitment • Price and service guarantee for 12 to 18 months Efficient administration • Wholesale clients’ needs • Service expectations

Benefits of Working with RTO’s - summary For the clients: a. In-depth expertise and product knowledge and access to hundreds of Canadian suppliers b. One stop shopping for the entire product array c. Diverse technological solutions – online booking with instant confirmations, packaged product tailoring, vouchering, consolidated invoices, access to content and images d. Product differentiation by client e. Passenger documentation for packages f. Reduced administration and back office costs g. Multilingual in-destination customer service For the suppliers: a. Access to multiple markets worldwide and network of international wholesalers/ TO’s – an expanding and flexible variety of distribution channels b. Creative product packaging through different product lines c. Reduced sales, marketing and operational costs

BREAK 15 minute network, refreshment and stretch

Initial Research Findings • Talked to Suppliers in the North – via an online survey tool and one-on-one interviews. – Learned from 5 Receptive Tour Operators that understand northern climate, suppliers, and geographical challenges » Consulted each Territory’s DMO or Tourism Department • Researched the practices of western provincial DMO’s, that have northern products and/or renowned trade ready programs

Yukon Data Yukon est. 700 +/- …. 1 # of Tourism Businesses 2 % of businesses in region est. <10% successfully working with the Trade 3 4 # of RTO Relationships in est. <20 region Key and Emerging Markets US, Canada, MX, Brazil, UK, Germany, 5 Visitation in 2014 443, 300 6 GDP from Tourism $113. 8 M of 4. 3 % of Yukon’s total GDP 7 Jobs from Tourism 3, 000 or est. 11. 3% of Yukon’s private sector jobs Switzerland, Austria, Netherland, France, Belgium, Luxembourg, Australia, New Zealand, Japan, China and South Korea *Yukon Sources: Bureau of Stats, Statistics Canada, Membership Numbers, Vacation Planner Ad Sales, Wilderness Tourism Licenses, etc. 2004 -2014

Tourism Yukon Programs, Tools and Information Formally • Check list – note TCMF • Delivering Expectations – business, market and trade ready • One-on-One guidance with Product Development Officer, Industry Services Unit, Tourism Yukon • Trade ready suppliers invited to RVC • Workshops, Hosted Panel Discussions and Tourism Yukon Open House events Informally • Networking with Tourism Yukon reps • Participating in Fam’s and with Travel Media

Trade Experiences • The relationship with the DMO or Gov. Dept. is important to network and learn – expect governments to support infrastructure for the experience in destination • Relationships with suppliers is important • The Trade is looking for flexibility, accommodation, reliability, strong communication, advance notice of issues from the supplier • Experiences that are unique, involve wilderness or wildlife, bucket list and creative experiences • They are looking for refreshing, unique, dependable • Safety is number one • Need fixed start and stop dates and to plan around uncontrollable variables – like weather or illness

Provincial/Territorial Practices Best Practices of DMO’s/Tourism Departments in serving suppliers to learn about or to become Trade Ready: Policy – in place, practiced and communicated Programs – in support of learning, at all levels of readiness Tools – checklists, printed materials, etc. Supports – one on one guidance, outreach, alignment across DMO or Department • Data – understanding who is there, how many, levels of readiness or compliance • Standards Compliance – contracts, maintenance, management, support, etc. • •

Northern Supplier Experiences • • • Working with the Travel Trade is about relationships The internet is changing how consumers work with the trade – doing a lot of their own investigating and some eventually doing their own trips direct with the supplier Getting listed in ‘tariff books’ takes time Some travel trade links are not niche enough for us – we will always have to direct marketing and working with travel trade Those new to tourism or being a supplier don’t understand this distribution channel and are hungry for tools and information and networking Marketing organizations shouldn’t be doing business development Trade relations and engagement can be done independently of the DMO or tourism department – but the DMO does have a role Some feel its up to the individual suppliers to become trade ready and that DMOs’ or Governments have no roles but in communication of standards or checklists At the same time, expressed the importance of standards and criteria and communication

Northern Supplier Experiences cont’d • Consider finding a mentor to support the trade ready conversation – training isn’t needed • If you want to work in this distribution channel - getting there is easy • Consistency helps the supplier, as they are aligned in a dependable destination, with effective relationships • Suppliers cited in-person workshops and online learning with links or materials as ideal ‘learning tools’ • DMO’s and tourism departments shouldn’t have training mandates • One encouraged aligning with one standard – that is for the Canadian Signature Experiences program – a CSE certificate would be the authentication • Does travel trade have a role in future distribution channels and business development? • Governments job should be to prevent non-ready businesses from participating in the Trade – until they are ready.

The Business Case for Being or Becoming Trade Ready Becoming TR is not a guaranteed windfall. . It is not a sudden explosion in volume, revenues and market share…. • It is an opportunity to diversify your reach and to have new customers through your door invited and booked by the Trade –you don’t pay for the Trade effort until they book guests for you. • Access to networks and channels through the DMO/Tourism Dept. and someone else bringing you new business – they are your sales force - for a commission/service fee.

Is it for everyone? NO • You need to ask: • How much of your product goes unsold each year? • Who are you currently selling to and do you need to diversity your reach? • Do you have experiences that the Trade can sell – that their customers want? • Can you commit to the criteria pertinent to be Trade Ready?

Group Discussion Where you help shape the resources, programs or tools for your region…

Opportunities for the North • WORKSHEETS See Yukon Data, Provincial/Territorial Practices, Yukon Tourism Programs, Tools #’s 2, 5, 7

Concerns about Travel Trade • WORKSHEETS See Readiness Levels 1 -3 & Criteria are not universal, Trade Experiences #’s 4 and 6

Supplier Ideas re: Education and Support • WORKSHEETS See Yukon Programs, Provincial/Territorial, Northern Supplier Experiences #’s 5, 7 and 8

The Role of the DMO • WORKSHEETS See Yukon Programs, Provincial/Territorial #’s 5 and 7

Supplier Insight to Benefits • WORKSHEETS See Northern Supplier Experiences, Distribution Channels

Standards and Maintenance • WORKSHEETS See Provincial/Territorial Practices # 7

In closing… • • Final thoughts Evaluations Parking lot revisited Next steps

Contacts • Sarah Marsh, Manager, Industry Services Unit, Tourism Yukon (867)667 -5632 sarah. marsh@gov. yk. ca – Patti Balsillie, Project Manager, Market and Trade Ready Project (867)334 -2522 pattib@northwestel. net – Roman Dushatsky, Contracting Manager, Jonview Canada (416)323 -9090 ext 7902 rdushatsky@jonview. com