Gay and Lesbian Travel Is This Market Right for You? Presentation by: Ed Salvato Gay tourism marketing consultant
TITLE OF SLIDE • Consultant • Independent gay tourism • Global gay travel expert • Presented in US, Canada, Brazil, Argentina, Belgium • Board member IGLTA • Editor in chief • ManABoutWorld, the first gay travel magazine for iPad only • #1 in iTunes App Store for “gay travel” • Radio • Sirius/XM & Proud FM Toronto • Author • Gay and Lesbian Tourism: The Essential Guide for Marketing Vol 2. (International)
Business potential An aha! Moment A note about bus travel Demographics What is gay friendly? LGBT outreach pays Power of the invitation Business threats and opportunities Plan of action There ’ s gold in them thar groups Success in this market: Philadelphia LGBT market trends and insights
TITLE OF SLIDE ! LGBT GROUP, CONVENTION BUSINESS CAN BE INCREDIBLY LUCRATIVE Las Vegas: King (queen) of LGBT group travel Mya Reyes Las Vegas Convention and Visitors Authority IGLTA Board member
TITLE OF SLIDE In 2010 Number of room nights LGBT meetings: 83,000 Non-gaming revenue: $25M (yes M) In 2011 Vegas is consistent and innovative • OutServe non-gaming rev $200K In 2012 January: • Sin City Shootout ’ s 5 th annual tournament: 3,000 players • Non-gaming revenue expected: $2.7M Memorial Day: • NAGVA (volleyball); number of players: 1,200 • Non-gaming revenues expected: $1M • Square feet of meeting space: 350K NAGAAA (softball) cup event • Number of players: 300 • Non-gaming revenues expected: $270K
TITLE OF SLIDE In 2010 Ft. Lauderdale hosted the IGLTA convention Number of attendees at peak: 500 Net economic impact*: $1.5M *(According to the DMAI) IGLTA : International Gay & Lesbian Travel Association (IGLTA.org) • Consists of gay, lesbian and straight travel professionals and marketers from around the globe. • This is a highly desirable group to stay at your destination since they are influencers in the LGBT travel space.
TITLE OF SLIDE MAJOR ASSOCIATION EVENTS & SPORTS ASSOCIATIONS : NLGJA, OUT&EQUAL, HRC, GLAAD, NGLCC SPORTS: 2003 NAGAA softball world series 3-4K room nights 2013 NAGAA softball world series Soccer championships Ball-room dancing Line dancing dancing Swimming Mid-winter bowling championships Bid on Gay Games but came in second place. KEY TO SUCCESS: Grass-roots support Team DC
TITLE OF SLIDE IGLTA Convention (2010) Number of attendees: 600 Rooms occupied at peak: 350 Direct spending*: $670K *(According to Laurie Armstrong Visit SF) NLGJA Convention (2010) Number of attendees: 600 Rooms occupied at peak: 113 Direct spending: $200K NLGJA: National Lesbian & Gay Journalist Association (NLGJA.org) Could work with groups on pre-, post-fams.
TITLE OF SLIDE Regarding gay travelers and bus travel: In 2005 Gay and Lesbian Tourism: The Essential Guide for Marketing declared: “Gays don’t do busses.” And that is still largely true. • Though it is changing. • This segment is missing out on a very satisfying type of travel • that is surprisingly suitable to their travel styles. The industry is losing out on getting a chunk of this lucrative • segment. Will address this more in marketing section later. •
TITLE OF SLIDE • It ’ s obviously lucrative. • But it ’ s not as easy as just wanting this segment. • It ’ s a unique market in many ways that can hide in plain sight. • There are many characteristics and nuances to learn. • The next section of this presentation provides a few facts and figures about the LGBT market. • These are often used by leisure segment marketers but the group consists of individual travelers so these are very important to learn.
TITLE OF SLIDE Build shoulder seasons Attract new customers Help marketers stay competitive Increase repeat visitation Improve a marketer ’ s image Steal travelers! A key to getting more straight tourists Spend more/do more
TITLE OF SLIDE 6.5% of U.S. adult population self identifies as gay, lesbian or bisexual 15 M adults total: 8 M gay men and 6 M gay women 99.3% of U.S. counties include same-sex couples living there. Lots of good demographic info available. Example:
Income Demo Gay men Gay women Median HH income $83,000 $80,000 Singles $62,000 $52,000 Couples together $130,000 $96,000 %HH > $100,000 35% Key segment demo: by and large gay men (and to a certain extent gay women) comprise the most valuable of segments: Dual-income, no-kid couples
TITLE OF SLIDE $70.3 B This is the amount estimated to be spent annually by gays and lesbians on domestic travel $6,300 total ($1,250 per trip) This is the amount the average respondent spent on travel in the last year $800 vs. $540 This is the amount gay men spent on their last solo leisure trip compared to heterosexuals 200% to 800% more Amount spent on alcohol on gay cruises compared to straight cruises. OVERALL MARKET SIZE LGBT buying power expected to reach $845 B in 2011. Ker-ching!
TITLE OF SLIDE Gay Travel Facts 71% vs. 25% Percentage of gay U.S. respondents holding valid passports compared to all U.S. respondents. 47% Percentage of gay respondents who used passport in past year. 85% vs. 64% Percentage of gay U.S. respondents who take annual vacations compared to all U.S. respondents.
TITLE OF SLIDE Gay Travel Facts During the previous year… Demo Description 5 Median number of overnight trips by gay travelers 23% Took more than 5 trips 67% Rented a car at least once 25% Consulted a retail travel agent 84% Took at least one trip by air
TITLE OF SLIDE Travel Behavior in Recession “ Find less expensive activities ” 51% gay vs 61% heterosexuals agree “ Find less expensive meal options ” 42% gay vs 60% heterosexuals “ Stay with friends or family instead ” 26% gay vs 39% heterosexuals “ Take a ‘ staycation ’ instead of vacation” 18% gays will stay home vs 32% of heterosexuals
TITLE OF SLIDE USA 1. New York 32% 2. San Francisco 27% 3. Las Vegas 26% 4. Chicago 25% 5. LA/WeHo 24% 6. DC 23% 7. Ft. Lauderdale 17% 8. San Diego 15% 9. Orlando 14% 10. Seattle 14% 11. Boston 13%
TITLE OF SLIDE Brand Ranking: U.S. Destinations Which destinations did the best job in the past year reaching out to LGBT travelers? 1. Las Vegas 11% 2. Philadelphia These are the destinations to study. 7% 3. San Francisco 7% 4. Palm Springs 7% 5. Provincetown 5%
TITLE OF SLIDE What Is “ Gay Friendly ” Group attendee perspective A place where gay visitors and same-sex couples are known to be safe from harassment, intimidation, threats or physical violence ("a place where I can hold my partner's hand in public") Is a city or community known to be culturally welcoming and to support diversity and LGBT civil rights Positive word of mouth from gay friends, relatives, and colleagues Has gay nightlife, gay clubs and/or gay bars Is located in a state, province or part of a country known to be culturally welcoming and to support diversity and LGBT civil rights.
TITLE OF SLIDE What Is “ Gay Friendly ” Group organizer ’ s perspective Make an authentic invitation to the LGBT community. Conduct your business in a manner that embraces people ’ s diversity, making everyone feel welcome. Your business policies don ’ t penalize your LGBT customers or employees. Example: Gay car renters don ’ t like it when rental car companies charge same-sex partners a supplement straight married couples wouldn ’ t have to pay, preferring to spend their ‘ pink dollars ’ at a gay-supportive company. “ Gay welcoming ” is another phrase, meaning you acknowledge gay consumers and welcome their business. This is another excellent phrase used to describe the same process of acknowledging and welcoming gay customers.
TITLE OF SLIDE Marketing to Gays Pays: Loyal Gays reward marketers who invite them 74% More likely to visit destinations where tourist office has gay marketing campaign 37% Would ‘ reward ’ destinations advertising as gay friendly by spending more money when they visit 33% Would stay longer at such destinations Gays like to be invited and to feel warmly welcome. 40% Prefer to purchase products from companies that advertise in gay media (all else being equal). 42% Say ads read online influence purchase decisions for one product over another, versus … (next line) 32% Percent of heterosexual travelers saying this.
TITLE OF SLIDE Marketing to Gays Pays: Influencers Gays reward marketers who invite them 24% Keep up with latest styles/trends versus 17% of non-gays 55% On Facebook versus 46% of heterosexuals 20% On Twitter versus 12% heterosexuals
TITLE OF SLIDE Marketing to Gays Pays Beyond the financial motivations • Welcoming gay and lesbian travelers is a signal to other groups of travelers that you appreciate diversity, value creativity, and promote acceptance. • Gay tourism marketing sends a positive, morale-boosting message to gay and lesbian employees. • “ Gays are trendsetters. ” Yes, its a stereotype but it is one that you can play to your advantage
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