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Denver Networking Event Yields More Industry Challenges, Opportunities

Following close on the heels of June’s Seattle and San Francisco networking events, ATTA President Shannon Stowell and ATTA Director Chris Doyle were joined by nearly 30 industry executives the Denver, Colo., REI Flagship store on July 13th. National outdoor gear retailer REI again made meeting space available to the ATTA to provide regional adventure travel leaders with comfortable, outdoor-oriented venues to network and exchange ideas.
In addition to sharing new ATTA initiatives underway, the ATTA engaged participants in special, facilitated sessions designed to deliver an informal S.W.O.T. (Strengths, Weaknesses, Opportunities, Threats) analyses.

Session input is being put to immediate use by the ATTA in conjunction with recent trade survey results (From the June issue of AdventureTravelNews™ see – Traditional Definitions of Adventure Travel Too Limited in Scope Says New ATTA/MSU Research) to continue to evolve the adventure travel industry agenda, much of which are set for discussion at the October 2005 Adventure Travel World Summit (www.adventuretravelworldsummit.com).

Leaders from Austin Lehman, Adventure Center, Colorado Tourism Bureau, Deeper Africa, Outdoor Industry Association, Renaissance Guides, local universities, and a host of other respected adventure travel businesses partnerships opined on a range of topics. Marketing and research, liability and competition, the impact of the Internet, homogenization and commoditization of product were again called as some of the key issues having very real impacts on the industry.

Similar to previous networking session, despite the challenges uncovered, optimization ruled the day with regard to the industry’s potential for growth. Participants also brought new ideas for collaboration and growth initiatives to the table, much of which are already set for discussion during the October Summit in Seattle.

Here’s just a summary of key points (raw data presented here) collectively identified at the Denver event – there’s a lot here, and it’s a direct reflection of your industry colleagues’ perspectives:

STRENGTHS

Entrepreneurial vigor
Awareness of ecotourism is on the rise
Expanding market (more inclusion of women, family, etc.)
Definition of adventure travel is broadening
More personalization and customization
People are moving beyond team sports mentality
Outdoor/recreation equipment manufacturers are bolstering marketing
Outdoor/recreation equipment manufacturers are making better, safer, high quality equipment
Industries outside adventure travel are presenting adventure travel/recreation more frequently (e.g., automobile manufacturers)
Adventure travel is inherently an exciting industry
Adventure travel industry keeps re-inventing new product (endless possibilities)
Consumers get bragging rights when returning from adventures • Adventure travel becoming more accessible
Diversity of product is amazing, malleable
Low barriers to entry
According to OIA research, 56 million Americans identified themselves as having participated in adventure travel – a major increase over prior years
Risk management strategies are improvingExperiential/authentic
Good fit with curve of demographic interests
Passionate business people
It appears to be a growth industry
Public lands appear to be more in tune with consumers these days (incorporating outdoor recreation/adventure travel like never before)
Packaging is increasing in diversity and getting easier
Industry players are creative
Macro trends favorably impacting adventure travel (wellness, quality of life, health, whole-living, lifestyle choices)
Industry is showing people they have a psychological need to explore/adventure and it is being integrated in their lifestyles
Improvements in marketing to niche groups (African Americans, alternative lifestyles, etc.)
Media (TV shows, magazines, films, etc.) doing more in general with adventure
Technology is making adventure travel easier (from Web to GPS units)
Nostalgia with “adventure travel” is particularly helpful to industry
Quality and experience of tour operators is getting stronger
Adventure travel industry is maturing

WEAKNESSES

Hard to define adventure travel
Industry fragmentation
Lack of public lands cooperation among themselves and w/ adventure travel industry
General lack of understanding of world affairs (industry and consumers have this weakness)
Poor communication system to get out real travel threats (geopolitical, terrorism, etc. – noted US State Department as one key problem)
Lack of outreach regarding safety of destinations combined with overall ignorance (specifically directed at Americans)
Conflicting messages surrounding the topic of safety – differences between government, tour operators, etc.
U.S. lacks of department of tourism – no real US leadership to support travel and tourism industry
Adventure travel is oversold
No rating system is available to build trust with consumers – no independent auditing mechanism, etc.
Industry lacks certification program – “there are simply no standards for this industry)
Lack of consumer trust of tour operators
Adventure travel carries with it dangerous images (puts consumers off)
Adventure travel perceived as expensive
Adventure travel too niche oriented – works against the industry at times
Consumer perception that adventure travel industry doesn’t do enough with regard to stewardship
Destinations, people and cultures visited not receiving enough support
Adventure travel (and travel and tourism in general) industry too dependent upon existing transportation infrastructure (causes bureaucracy, etc.)
It’s not in mainstream travel distribution
Lack economies of scale
Small private companies with no data to use as benchmarks
Very little co-op marketing
Not enough training/definition of needs from the industry to educators, so poorly trained workforce
Low barrier to entry allows ‘fly by night’ operations
Too many shady operators
No objective rating system or accreditation
Lack of differentiation

OPPORTUNITIES

Redefine industry and broaden the definition to bring more people in
Market to families and youth
Pursue more niche audiences (ethnic diversity, alternative lifestyle, physically challenged)
Increase overall consumer awareness of adventure travel (new healthy activities, new destinations to explore, etc.)
Create new partners to build larger customer bases to market to
Develop more localized adventure travel programs (in-bound to U.S., and more specifically to specific regions and markets)
Need to tap into 159 million (according to OIA 2004 study) people who are active outdoor enthusiasts
Cross pollinate outdoor and adventure travel markets
Build “ambassador” program – consumer focused to better educate people (Americans specifically) to become better educated travelers
Increase inbound tourism to US
Explore “consortium based” marketing efforts with bottom-line focus (group efforts to drive insurance, catalogs, marketing, outreach, etc.)
Industry mentoring – develop opportunities to create symbiotic relationships to co-brand, co-market, share databases, etc.
WWW remains a MAJOR opportunity
Tap into additional distribution channels
More alliances (with guarded intersections)
Unified Rating Systems / Standards
Traveler Education
Insurance partnerships

THREATS

Political volatility / Economic Volatility
HR Challenges (seasonality of guides)
Other industries (media, Hollywood) define our industry better than we do to the masses
Regulatory environment can be scary
Liability insurance problems/access
Natural disasters (weather, disease, etc.)
Cash flow
Client flow
The ability to conduct transactions is getting more difficult (e.g., underwriting is a challenge, risk is higher and tour operators are having more difficult time making high $$ transactions)
Customer acquisition costs
Lack of creativity
Recruiting and retaining qualified labor
Increased competition in a world of finite consumer base and natural resources
Overexposure of the adventure travel industry
Overuse of natural resources
Commoditization of adventure travel
Gaming industry and TV are pulling kids (youth are staying inside more)
Lack of family time
Government bureaucracy at EVERY level
Misrepresentation of adventure travel in the media (one person drowns in a rafting accident and the media blows it out of proportion when driving a car is much more dangerous)
Consumers aren’t well educated about their world, travel, etc. – “Americans tend to leave their brains at home”
Adventure tour operators being able to deliver what they promise (can’t control all variables during a trip)

Sound off – Do you agree/disagree with these points or have something to add? Email with your adventure travel industry S.W.O.T. analysis and/or challenges! If we receive sufficient and/or diverse input, we’ll collect online input and present new findings.

Want to get the chance to voice your opinion? Additional networking sessions are being considered for the New England, New York and D.C. region. Email to receive an invitation to an upcoming session near you.