TOP TRENDS AT NTA CONVENTION DEC 5-9, LAS VEGAS:
By Jake Steinman, Founder and CEO, North American Journeys, producers of www.thetouroperator.com
DMOs as new idea facilitators … appeal of smaller destinations … and the move toward merger of NTA and ABA shows
NTA Rolls The Dice In Las Vegas. Maybe it was fitting that NTA, which attracted 1228 sellers and 323 buyers (a 3.9:1 ratio) chose to hold its annual convention in Las Vegas for the first time in its 60-year history, as many feel that the organization has placed some high stakes bets on the future with a new direction as an inbound-and-outbound show in keeping with its new tagline “Selling Travel to, within and from North America.” Then, its leadership decided to let their bet ride when they scheduled their 2013 show (Jan. 19-23, 2013) which will be co-located with that of the United Motorcoach Association, just one week apart from the American Bus Association (ABA) Marketplace (Jan.9-13, 2013), forcing a showdown as many suppliers and DMOs and operators who attend both shows, will now only be able to attend one.
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NTA SHOW BY THE NUMBERS: |
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| Companies | Individuals | |
| Tour operator buyers | 187 | 323 |
| DMO’s | 321 (11 International, 30 Canada) | 387 |
| Tour Suppliers | 694 | 841 |
| Total | 1202 | 1551 |
| Source: 2012 NTA Convention Program | ||
• On Wednesday morning when DMO’s sat in their booths and buyers came to them, the mood was somewhat subdued. During a walk through the show that morning it seemed as though at any point in time only about 25-30% of the booths were engaged in appointments while others, especially second and third tier DMO’s, were at their booths on their phones or Blackberrys. Traffic seemed light until Thursday when operators took their positions in the booths and activity grew more robust.
The opening icebreaker reception was scheduled from 7:45-11:30 at Maverick Helicopters’ new facility at the Boulder City airport, about 25 minutes from the Mandalay Bay, leaving nearly 90 minutes between the end of the wine reception on the floor of the show and the departure time for the buses. Attendance was spotty as a number of delegates opted instead for dinner. Those who attended were given the option of taking a helicopter tour of the Las Vegas strip at night. Chris Donnelly, founder and owner of Vermont-based Sugar Tours, took the tour and observed on his Facebook page that he felt eerily strange when he learned that a Sundance Helicopter Tours craft had crashed near the Grand Canyon the next day, killing five people.
A Global Signature: NTA has done an excellent job of branding for its new direction, as evidenced by the graphics at the convention and on its website, which are eye-popping and clearly articulate the association’s direction. And at Las Vegas, it separated international and domestic DMOs into different sections of the show floor at the Mandalay Bay Hotel & Casino. Based on discussions with delegates, operators and through participation in several seminars, as well as from conversations overheard in the aisles as delegates were waiting for business appointments, a potpourri of convention coverage notes follows.
TRENDS AND INSIGHTS:
China Inbound program finally gains traction. The NTA China Inbound Program, now under the direction Haybina Hao, director of international development, who is both of Chinese origin and a former tour operator who worked at Western Leisure Tours in Salt Lake City, is moving in the right direction. Not only has NTA solidified its position as the officially designated gatekeeper (by the Chinese government) for any tour operator to receive approval to sell to the Chinese market, but it has extended its outreach and education initiative on the ground in China to include road shows to several cities educating the trade. (This year the U.S. Department of Commerce, U.S. Commercial Service, in a surprise award, gave NTA a Certificate of Appreciation for Achievement in Trade for “exceptional contributions to U.S. travel and tourism exports in the China market.” ) And at least 10 of the Chinese Inbound operators were in booths taking appointments and expanding their base of destinations.
Industry awaits second wave of Chinese visitors. In a seminar session entitled Best Practices in Serving the Chinese Traveler, panelist David Huang, owner of Chinese Host Inc. in Las Vegas told TDM that he practically had to restrain a Chinese receptive operator in the audience who openly denounced the practice of Chinese receptives’ selling impossibly priced budget tours for $40/day inclusive of meals and hotel to first time visitors. A lively discussion ensued as to the ethics of baiting unsuspecting Chinese tourists and engaging in such activities as locking the door of retail stores visited by a tour bus until the tourists reached a certain amount of purchases.
More Travel Agencies becoming Tour Operators. New blood in the form of several large retail travel agencies such as Sarasota, Fla.-based Legendary Journeys, which sent 10 buyers and Eau Claire, Wisc.-based Holiday Vacations, with five buyers taking meetings, were emblematic of the blurring line between travel agents and operators. While these agencies were interested in meeting with international DMO’s during the first day primarily, many took meetings with U.S. suppliers as well.
.Showdown Looming between NTA and ABA may force Delegates to make a choice. Competition with ABA will come to a head later next year, when U.S. suppliers and DMOs will have to choose which January 2013 trade show—the NTA Convention in Orlando or the ABA Marketplace in Charlotte, NC—to attend. Citing a lack of interest among its membership, NTA rejected an overture made last January by ABA’s Chairman, James Jalbert president of Portsmouth, N.H.-based C&J Trailways, to merge the two trade shows. Back channel discussions are being held to revive discussions about bringing the shows together, but there was not enough impetus at the convention to say that it is an item that has immediate possibility. Perhaps they will work on a special discount for those attending both shows.
Operator-to-operator exchanges on the rise. The NTA-led facilitation of operator-to-operator interaction initiated proactively after 9/11, has ultimately resulted in many mid-to smaller operators assuming the role of a local receptives servicing the areas around which they are based, while filling in their brochures with tours purchased from other operators. While this tactic has served to reduce the risk of developing tours on their own, it has made meeting with destinations and suppliers in areas where they buy from local receptives unnecessary.
Small mom and Pop Operator Companies are losing ground and closing their doors. Asked at one panel discussion by TDM about succession planning for small operators, all three panelists, from mid-sized companies, maintained they had plans in place, but small mom-and-pop operator companies are closing with greater frequency as there is no market for their companies and their offspring are not willing to put in the necessary work time. A DMO representative from the Portland CVB asked about succession plans for their customer base. “Aren’t they all dying off?” she asked. “Some of them are dying,” replied Richard Maxcy, owner of Agri Travel Services in Lakewood, Colo., “but there is a huge group of Baby Boomers coming in behind them that will eventually turn to group travel.” Operator strategy is to figure out how to stay alive until the year 2021, when baby boomers reach their mid-70s and 80s, and the next boom in group travel will occur.
• What operators really want from DMOs—help in facilitating surprise experiences. During an “Ask the Operator” session that we attended three operators (Richard Maxcy; Janet Varn, senior program manager, Academic Travel Abroad in Washington, D.C.; and Heather Huska, escorted product manager for Calgary-based Anderson Vacations) told the audience that what is truly resonating with their markets is the small interaction that tour members cannot arrange on their own. For examples, the CVB in Yuma, Arizona helped one operator to facilitate and arrange a morning of picking oranges in a grove. “They kept eating those oranges for the next two days,” said Huska, “and that was all they were able to talk about. Another destination in Michigan facilitated apple picking, she added, indicating that “they want to touch it, hold it or make it.” This includes baking buns, patting horses and seeing animals, all ad hoc and an unexpected diversion from the itinerary. Maxcy, of Agri Travel Services, said that today’s Baby Boomers are three generations removed from the farm and want to experience it.
Operators Slow to Embrace Social Media and Web marketing Tools. Asked about social media and all two of the three operators in the same session said their clients are not only not on social media, but they don’t even like being e-ailed. They would like to eliminate their printed brochures, but clients prefer them. George A. Cooley II, domestic tourism sales manager for Destination D.C., asked for a show of hands of the DMOs and suppliers in the room who were using social media and 95 percent of the hands went up. Huska of Anderson Vacations noted that her company has a dedicated person to build and maintain a Facebook-and-Twitter program.
To request for hoteliers: More Flexible cancellation policies. Operators want hoteliers to be more flexible with hotel cancellation policies since the booking window has moved so much closer to the departure date. They also want hotels to host cookie-and-punch or wine-and-cheese receptions as a way to keep groups occupied while assembling room keys and delivering baggage to rooms.
Where’s NTA Management? At the ABA Show, Peter Pantuso, ABA’s president, was seemingly ubiquitous—all over the show floor, at functions, and schmoozing in the hallways. His seeming omnipresence even spawned a “flat Peter” spoof at the show a couple of years. At NTA in Las Vegas, more than one person commented that Pantuso was more visible shaking hands and slapping backs than the NTA leadership staff, who were probably holed up in a series of non-stop back-to-back meetings.
Differences between NTA and ABA operators are becoming more distinct. While there is some overlap among operators who belong to both associations, in general ABA buyers tend to own motor coaches and their tour programs exist to augment their bus utilization so they are more open to new products but less committed to marketing because tours are not their primary source of revenues. NTA operators, meanwhile, rely on operating and selling tours for their entire livelihood and as such as less likely to take risks on new destinations and products that won’t sell. It’s a little like the ham and egg metaphor: the chicken is involved, but the pig is committed.
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I was not only a member but a staunch supporter of NTA for 25 years, but had to leave when their loyalty changed from domestic to foreign inbound tour operators (I won’t even mention the CrossSphere debacle). I have switched my allegiance to ABA and it was definitely the right decision.
I do disagree with the author’s description of the two organizations. ABA used to be primarily coach owners who needed to keep those wheels rolling. But today – at least partly due to those of us who felt driven out of NTA – there are many more who do NOT own any equipment at all.
A cursory look through the ABA directory seems to reveal that about 75% of their membership own buses, but I agree with you that the CrossSphere debacle caused many defections.
That will change, no doubt, when the two combine (or NTA throws in the towel). Which will it be, do you suppose?
I don’t quite understand the big deal about CrossSphere? It was a name change which led to a branding change but the associations direction of being a global association with travel to, from and within North America was part of that branding and remains a part of NTA’s branding today? It’s just a name, sure it wasn’t a popular name but all of the other aspects of what came along with that name remain in tact today. The world is a mighty small place and the association that works with everyone is going to be the association that grows. NTA had done an excellent job in attraction in and out bound tour operators and worked well with specialty markets such as faith based travel, adventure travel, student travel, receptives and gay and lesbian travel. We all need to work together and get along. Get over the name change, it’s past history!
Thank you Shebby. ABA, according to a tally from their show directory, is comprised of 73.4% bus owners. But prior to CrossSphere it was probably 5%.
NTA offers those of us on the west coast a geographic balance that ABA does not. ABA simply does not have as many members on the western side of the country as NTA. Those of us based in or who do business in, the western side of the country, need to see those suppliers and destinations. They are better represented at NTA.
Both are solid organizations. My hope is that there are opportunities in the future where both organizations can work together in the best interests of the industry.
Diplomatically put, Mark.
I wholeheartedly agree that ABA does not have as many western DMOs and Suppliers that I need to meet with. However, I believe that is changing and with NTA more or less forcing a showdown with next year’s marketplace schedule, it will be interesting to see how things shake down. The economic reality is that everyone – including tour operators – may be forced to choose.
I’ve always believed their is a marketplace for everyone and everything and the association who works the hardest and shines the best will come on out top. Our company had been an ABA member for over 25 years and dropped our membership simply because being a California attraction their simply wasn’t that many ABA motorcoach operator members that were making trips to our area and those that were that were doing so in volume we saw at the NTA Convention. ABA has traditionally been an east coast motorcoach association. If you compare the ABA versus UMA membership in California there are 12 ABA motorcoach companies in California versus 31 UMA motorcoach operators in California. I’m thrilled NTA and UMA will be co-locating their annual trade shows together as a California attraction I feel I will see a faster return. We did wonderfully at the 2011 NTA Convention in Las Vegas in the number of pre scheduled appointments and the number of tour bookings from the convention.
Paul:
Thank you for your comments. I referred to CrossSphere as a debacle only inasmuch as they lost so many members to ABA and paid an agency $150,000 to arrive at the name, which I liked and supported editorially at the time.
Thank you, Paul. I was ignorant of the geographical imbalance. Wish there were more operators on the West Coast in general.
I think NTA show will eventually attract tier 1 and 2 of U.S. destinations and international tourism boards and suppliers, while the smaller destinations will prefer ABA, whose buyers are more open to them.
As a longtime member of NTA and a convention attendee since 1986 I thought the Las Vegas Convention was very productive and the evolution of NTA is a great member benefit.
We all join great associations for various reasons. All associations try and provide benefits and business opportunities to their membership. The NTA membership is diverse and the association’s reach has expanded providing additional business opportunities to its members.
As mentioned in the article the China Inbound Program can be a benefit to all US members. At the convention the luncheons that included the National Parks and the North American Panel were not only informative, but displayed the benefit and reality of governments , associations and the industry working together to provide a better experience for every traveler.
My business appointments were very productive. I made great contacts on site, changed some inclusions in existing itineraries and directly booked with a supplier on the floor.
So, from my standpoint, the NTA convention was
1. Very productive
2. Very educational
3. A great networking opportunity
4. Gave me a sense of pride in our association and its members.
I think that is the goal of any great association.
I’m not sure that anyone is trying to create a standoff- I’m not privvy to any of the factors that went into selecting dates, but I imagine with the addition of UMA to convention NTA must now seek first tier cities with convention centers large enough to handle the whole group and exhibit space. UMA uses warm weather destinations and it may have simply been a matter of what time frame was available to book. Some suppliers and dmos may have to pick and choose, but I think merging the two (ABA and NTA) would actually net fewer appointments for the dmos and suppliers. And as a small DMO I like the fact that sponsorship at both shows can put me on the playing field with the big guys. At both shows, you get out of it what you put into it- the best thing anyone can do is get involved, sponsor, get on the leadership committees, do whatever it takes to get noticed. One of the facets of NTA that I appreciate is the fact they are trying to bring in more buyers (faith based, UMA). That helps feed the operators new customers which benefits suppliers in the long run. Both shows have their own market- I view NTA as higher-end, ABA as more day trips and value focused, but the two work well for us. As far as the whole Cross Sphere thing, that was forever ago. The Association listened to their members and went back to NTA and it’s time to move on. Incidentally, NTA did survey the members about merging with ABA before they announced any decisions, so again, they listened to what their membership wanted. The schedule will eventually work out I’m sure.
Thank you for your comments and perspective, Katrina. I think both shows benefit from the presence of your scrumptious clam chowder and Johnny cakes
I’ve always believed there is a marketplace for everyone and everything and the association who works the hardest and shines the best will come on out top. Our company had been an ABA member for over 25 years and dropped our membership simply because being a California attraction their simply wasn’t that many ABA motorcoach operator members that were making trips to our area and those that were that were doing so in volume we saw at the NTA Convention. ABA has traditionally been an east coast motorcoach association. If you compare the ABA versus UMA membership in California there are 12 ABA motorcoach companies in California versus 31 UMA motorcoach operators in California. I’m thrilled NTA and UMA will be co-locating their annual trade shows together as a California attraction I feel I will see a faster return. We did wonderfully at the 2011 NTA Convention in Las Vegas in the number of pre scheduled appointments and the number of tour bookings from the convention.
Good point about the regional distinctions between the two organizations and that NTA is perceived to be more appealing to Western destinations.
I do not have the reference point to compare NTA to ABA. I can say, having come from the NTA Convention, I was impressed again. From my experience there were more business opportunities than prior conventions and more competition as well. That’s a good thing as iron sharpens iron.
The quality of the NTA membership is what makes this event and what makes NTA a global leader. I came away from the convention inspired by the courage of the organization’s leadership, educated from the seminars and from interaction with other operators while recognizing that NTA leads the way. For those who choose to be involved the benefits are there.
I will be in Orlando in January 2013, ready to see NTA take its membership to the next level. In my opinion NTA is only going to get better and in doing so they will be a benefit to the travel industry in North America and worldwide.
Why the move to January?
There were a lot of factors considered when the topic first arose. I’m privy to this information because I sat in on those initial meetings (four or more years ago – this wasn’t a hasty decision). Since my time in those meetings a number of other very competent operators, suppliers and DMOs have been in follow up meetings regarding this decision so I’m certain my points below are only an initial basis for the final decision.
One of the key considerations was the general growth plan for the association. NTA hasn’t opted to maintain the status quo. They have sought out partnerships with other associations with the intent of growing both the scope and membership of the association. The joint convention with UMA exemplifies this. The huge amount of work done to establish the China Inbound Program and the new initiative to focus on faith-based travel are other examples. Since the plan was to grow, and to work on these partnerships and joint events, it became necessary to look at destinations for conventions that could handle larger events. These locations are generally more expensive, and most expensive during the fourth quarter. Thus, the move to January/February was considered.
Location, location, location… A large and key supplier sat in on the meetings when these changes were being considered. He said in so many words, “make the convention a desirable destination – make it more than just a good business opportunity, make it a ‘wow’ place to be”. Note the location of the next NTA conventions… Orlando, Los Angeles and New Orleans. Charlotte is a beautiful city, but in January where would you really rather be?
The concern about ABA was brought up (the dates), but after considering these two factors and many others a consensus was finally reached that you don’t “run your business” based on what another business is doing. I’m certain Coca-Cola didn’t look at any Pepsi distribution maps and say, “oh no, we can’t sell there because they already are”.
If you look at where NTA is going as a DMO or Supplier, I hope you see the potential that is blooming at NTA. Not only are there a number of well established operators still there, but there is a huge potential blooming on the horizon. China has come into its own, and is arguably the largest potential market segment for attractions and suppliers in the US for the tourism market. NTA has a clear edge here. For our business the faith-based market has maintained us. While the average in numbers has dropped in general groups, the faith-based groups have maintained full sized groups. The joint convention with UMA offers the return of bus owner companies thanks to UMA, and maintains the far more international presence of NTA. With international inbound tourism to the US on a rise, this isn’t a market to be ignored. I was curious about ABA’s international component so I just checked their website. Suffice it to say there isn’t an international component.
We’ve considered taking a look at ABA and perhaps even paying a visit to a convention, but as a general business position we’d never consider moving to ABA at the cost of losing what we get from NTA, and the ever growing potential the NTA staff continues to nourish.
I have not been at NTA for a number of years and was pleased to visit and observe the conference. I was impressed by the vibrance and energy of the the marketplace. NTA has always shown the leadership, innovation and committment to build the tour market. That dedication is still a key burning desire that drives this organization. The name or almost renaming of the organization means nothing, it is what the organization delivers is what counts. The progressive move to join UMA in future conventions, once again shows their committment to grow the market and bring better value to their membership.
UMA has the industies finest equipment show, and a membership of over 900 coach operators. UMA like NTA has always demonstrated a committment to innovation and building the motorcoach market. Combining these two organizations conferences under one roof will make this the industry’s premier motorcoach event of the year. Over the last few years I have been devoting my attention to building our coach operation and have missed my involment with the tour marketplace activities. I look forward to a joint show in the future where I can join my tour planning staff and attend a show which brings both sides of our industry together.
Like many of my friends from both NTA & ABA I have found both organizations have evolved in different directions. ABA for me has become what NTA used to be. I am a small tour operator that has little to do with buses other then chartering them and riding on them. I am a receptive tour operator that brings people from all over the world to New England and take people from North America all over the world. I have found a home at the ABA marketplace where I have quality appointments with my vendors and networking opportunities with my colleagues. The ABA marketplace and the NTA conventions are different for all of us as we all have to follow the money. For those that don’t do the majority of business at the networking events will most likely find NTA meeting their needs. For those of us that do our business at the networking events, there is no comparison. For me the networking opportunities at ABA are well thought out, the events well planed, leading to networking opportunities resulting in return on investment. The chance to meet one on one with industry leaders as my piers is the reason I enjoy the ABA marketplace so much. When I joined NTA 20 years ago and had the chance to get to know the industry leaders, in an informal setting, they gave me a different understanding of how the industry worked These discussions allowed me to become successful in my market. You can be the smartest person in the world, but with out relationships in the travel industry you have no where to grow. The all night discussions in the after hours suites changed my entire business outlook. Last summer at the NTA Contact the same one on one, that we used to have at the convention took place. If the NTA conventions were as well thought out and as well planned as Contact last summer, I might still be an NTA member.but they are not. NTA functions are about standing in line, waiting for scraps of food, with no place to sit, no place to talk, or do business. Both organizations offer different experiences for different reasons. Roughly 20 % of my business comes form my fellow tour operators and networking and smoozing is essential for my business model. Every included meal and function at ABA is a chance to do business. At NTA the breakfasts have gone away and the noise level at lunch makes doing business almost impossible. The suites are long gone, The lack of caffeine in the afternoon, lead to non productive appointments for me. I already made my choice and I will be at the ABA Marketplace next year and won’t be renewing membership with NTA.
Mel Tye
Tye’s Tours
Thank you, Mel, for a much clearer explanation. Your directness, along with your ability to articulate what value means to you (as well as other operators) is appreciated.