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How the Hawaii Tourism Authority Markets Paradise to the World

Promoting Hawaii in a changing world

(page 1 of 2)

      The Hawaii Tourism Authority’s VP for Brand Management,
      David Uchiyama, is a numbers man. Under his leadership,
      the state’s international marketing strategy has been
      increasingly driven by good data.
      Photo: Irwin Wong

Tokyo, Japan —

High on the stage of the Hawaii booth, overlooking the hubbub of Japan’s biggest travel fair, the musical group Manoa DNA launches into “Aloha You, Aloha Me.” It’s a catchy tune, sung mostly in Japanese, that has become the band’s signature song here in Japan, and the smiling, enthusiastic crowd gathered at the foot of the stage seems to know all the words.

 The group’s performance brings business at the neighboring booths to a standstill. At the Canada booth, instead of watching videos of Nova Scotia on giant plasma screens, visitors swivel 180 degrees to watch the band and clap to the music. The Japanese women hosting the Las Vegas booth set down their brochures to dance and sing along. They cheer and flash shaka signs when the song ends. This might be Japan, but there’s a great deal of Hawaii at the Japan Association of Travel Agents Congress and World Travel Fair.

That makes Japan an excellent place to start talking about how Hawaii sells itself to the world. Japan, after all, is our most lucrative foreign market, and three of the most important players in that marketing effort are at the event. On the edge of the crowd is Takashi Ichikura, dapper in an aloha shirt and blazer. Ichikura-san, as he’s known to almost everyone here, is the director and principal owner of Hawaii Tourism Japan, HTJ, the state’s marketing partner in Japan, and the person most responsible for organizing Hawaii’s presence at the JATA fair. At the back of the crowd are the two key players from Hawaii: Hawaii Tourism Authority president and CEO Mike McCartney and his right-hand man, VP for brand management David Uchiyama.

They’re an odd couple: McCartney, the sensitive, soft-talking former politician; and Uchiyama, the taciturn numbers man and marketing guru. The industry consensus is that their good cop/bad cop routine, the mix of political sensitivity and strategic planning, has been one of the keys to reviving Hawaii’s battered tourism economy. Here’s how they’re doing it.
 

      More than 111,000 people attended the JATA World Travel
      Fair in Tokyo in September. HTA president and CEO Mike.
      Photo: Irwin Wong

Old-School Marketing

Even in the digital era, marketing is sometimes just about getting in front of as many people as possible, and the JATA World Travel Fair is one of the largest tourism expositions in the world. This year, 71,740 consumers attended and, more important, so did 39,492 travel agents, tour operators, media and others in the travel industry. That makes the fair an extraordinary marketing opportunity, which is why HTJ invests so much time and money on its booth every year. It still works.

For example, HTJ used a contest at the fair to persuade nearly 5,000 consumers to complete surveys about how they choose a destination. Employing QR codes, the survey provided consumers with a link to HTJ’s new mobile website, resulting in 74,199 hits and 23,712 unique visitors, a 33 percent increase over the previous month. Exposure at the fair also boosted hits to HTJ’s regular website by 69 percent to 1,387,079 during the month. And, of course, tens of thousands of brochures were handed out at the booth, each offering a specific call to action.

Beyond the raw numbers, the fair also generated the kind of good will that marketers love, even if they can’t measure it. All those people singing along to Raiatea Helm and Manoa DNA are priceless.

Like almost all HTJ programs, the fair also offered marketing opportunities for the state’s travel partners – hotels, wholesalers and attractions that depend on tourism. In fact, six Hawaii-based travel partners paid a nominal fee – helping offset the cost of the event – to have a table at the Hawaii booth. These included the Kaanapali Beach Hotel, Hilton Hawaiian Village and Kualoa Ranch. Travel professionals and consumers file past their tables collecting brochures and listening to the company pitch. HTJ also provides free brochure hosting for companies that can’t come to the fair.

Marketing partners like HTJ provide other essential services, like training and educating travel agents and wholesalers. HTJ, for instance, offers extensive destination training, both online and through seminars it conducts around Japan. Last October, HTJ collaborated with numerous Hawaii hotels and attractions to bring more than 200 Japanese travel agents to the Islands on a familiarization trip – or megafam. It’s much easier to sell a place when you’ve been there yourself. Similarly, in November, the Hawaii Visitor and Convention Bureau, HTJ’s North American equivalent, hosted a small group of travel writers on a trip to Oahu.

      Photo: Irwin Wong

The JATA travel fair in Japan is also a good opportunity to see the competition. This year, more than 1,000 delegates from 90 countries gathered at nearly 900 exhibition booths. A stroll through the exhibition hall reveals that Hawaii doesn’t have a monopoly on good marketing ideas. The Croatian booth, for example, is a collaborative affair, with Croatia’s equivalent to HTA lauding the country as a tourism destination, and its version of DBEDT wooing Japanese investors. (The fair’s organizers awarded the Croatian representatives “best destination marketer” for 2010.) In the Yemen booth, visitors can change into Bedouin garb and pose for photos in an ersatz harem. Mexico, one of Hawaii’s most important tourism competitors, has a spectacular booth with multiple flat-screen displays showing videos of Chiapas, Oaxaca and the Yucatan. Not to be outdone by Hawaii’s performers, Mexico employed a full mariachi band, replete with balladeers and brass.

Big exhibitions like JATA highlight one of the great challenges facing Hawaii: As a small, island state, we don’t have the financial resources to compete with entire countries such as Mexico or Australia, or large states like Florida or California. Even some cities, such as Las Vegas or Macau, have larger marketing budgets than Hawaii. Industry observers estimate Mexico’s tourism marketing budget at $200 million to $250 million a year. Florida’s destination marketing – split among many agencies – probably totals more than $150 million.

In contrast, the total marketing budget for the state of Hawaii in 2010 was $65 million, which had to filter through HTA, to the marketing partners such as HTJ and the Hawaii Visitors and Convention Bureau, down to the individual island chapters. Most insiders say this simply isn’t enough money. “We ought to be spending about $150 million a year instead of $60 million,” says Outrigger president and CEO David Carey.

Big events like the JATA fair aren’t cheap. It cost HTJ $48,326 just to rent the floor space in the exhibition hall for three days. Building and manning the booth, including the stage and the sound system, cost $111,657. Transportation, accommodations and nominal per diem for the performers ran another $41,350, even though HTJ was fortunate that much of the talent was already in Japan. Roll in HTJ’s staff time to plan for the event and to support the HTA visit, and the tab for JATA approaches a quarter of a million dollars. That doesn’t include the money spent by the travel industry partners or the cost of flying in the HTA board members and staff. There’s no way around it: Big-time marketing is expensive.
 

      McCartney spoke at a JATA symposium on how to increase
      global travel among Japanese people who live outside the
      Tokyo area.
      Photo: Irwin Wong

The Blitz

Although Japan is an important market for Hawaii tourism, it’s dwarfed by North America, particularly the U.S. West, which contributed about 2.8 million arrivals to Hawaii last year, more than twice as many as Japan. So, in 2009, when plummeting visitor counts threatened a crisis in Hawaii’s largest industry, it’s not surprising that the marketers looked to the West Coast. In the wake of the loss of Aloha Airlines and ATA, the question for the Hawaii Visitor and Convention Bureau seemed to be: How do we preserve and grow airlift? And from the marketer’s perspective, how do we do that and still maintain the integrity of the Hawaii brand? As HVCB president and CEO John Monahan points out, “We didn’t want to dilute its value, built over decades, by putting ‘Hawaii on Sale.’ ”

The answer was “The Blitz.” Jay Talwar, senior vice president for marketing at HVCB, ascribes its origins to a conversation HVCB had with Hawaiian Airlines and its ad agency. “They said to us, ‘What if we focus on one market and just saturate it with a cooperative marketing program?’ And we said, ‘That’s great, but what if we invited everyone – all the hoteliers, the attractions, the travel sellers, all of them – to come and really try to get the tide to rise?’ And Hawaiian was good enough to say, ‘That’s fine. We know we’ll get our share. If the pie grows, our slice grows with it.’ That’s the birth of The Blitz.”

Talwar sketches out the thinking that went into the first trial run: “Let’s say we go to San Francisco for a whole month, and each week, we focus on a separate island.” The key, he says, was, for a month, to make Hawaii “unavoidable in that marketplace.” Doing that meant using every marketing tool available. It meant editorial visits to get the Hawaii story in local media – newspapers, magazines, radio and TV. It meant advertising: They cover-wrapped the San Francisco Chronicle and ran banner pages on its online version, SFGate. They put up billboards along the commuter routes of a demographic their analysis described as the habitual traveler. At night, they had “billboards” projected onto the sides of prominent buildings. They used social media and online contests to publicize special events. All of that drove traffic to the website of HVCB or an island chapter or a travel partner. “Basically, we did everything that you would do in Marketing 101,” Talwar says. “We just did it all at once.”

      Several HTA staff and board members also attended JATA,
      including the new chairman, Atlantis CEO Ron Williams
     (center.) The Hawaii booth at JATA is always an elaborate
     affair, although HTJ has reduced its size in recent years due
      to declining attendance at the travel fair.
      Photo: Irwin Wong

For later blitzes in Seattle, Los Angeles and again in San Francisco, HVCB fine-tuned its approach. In coffee-mad Seattle, marketers handed out free coffee to early morning commuters on the ferries, each week featuring coffee from a different Hawaiian island. The pitch: “You can actually go visit the farm where this coffee was raised. You can’t do that anywhere else in the United States.” Similarly, the second blitz in San Francisco took advantage of the city’s reputation as a culinary capital. “This time, we had a few guys with us named Roy and Alan and DK,” Talwar says. “It’s now connected with chefs and the farm-to-table movement. Now, we’re talking to San Franciscans in a language they understand. That got us a lot of great coverage in the local media.”

It worked. “We began measuring results 30 days out,” says Monahan. The steep spikes in visits to the HVCB website after the blitzes are unmistakable signs of marketing success. Perhaps a more meaningful measure is the level of participation among the travel industry partners. Monahan points out, “At one point, we had brand X; then X and Y; then X, Y and Z. Now, they all want to know as far in advance as possible what our blitz schedule is going to be so they can work that into their plans.”

The travel partners are more direct. “We use two metrics to measure marketing success,” says Jack Richards, CEO of Pleasant Holidays, the largest travel wholesaler to Hawaii. “One is brand awareness; the other is sales or passenger volume. And from our perspective, the blitzes have been tremendously effective on both fronts.” He also remarks on one of the keys to that success: Much of the money to pay for the blitzes comes from private industry. “You’ve got to understand that suppliers like me, we spent millions of dollars in matching funds to help drive visitors to the Islands,” Richards says. Exactly how much is difficult to ascertain, but, HVCB’s Monahan says, “We know the funding spent by these partners is a multiple of what we spent.” And HVCB has been spending between $1 million and $2 million per blitz.
 

Hawaii Business magazine invites you to comment on our articles and the issues they raise. Comments are moderated for offensive language, commercial messages and off-topic posts and may be deleted. Some comments may be chosen for inclusion in the magazine on the Feedback page.

Jan 17, 2011 04:20 pm
 Posted by  GrandR

IMHO the tourism people from any destination seem to always miss the one customer that's easiest to reach - the customer who's already visited. I've been coming to the islands for two decades and have just begun to see websites that take a deeper look at Oahu, rather than the same tired old offerings. One is http://absolute-hawaii.com/ and another is http://www.allgetaways.com/view_destination.asp?destinationid=XGP513-012, once you get into the actual guides, tricky to do without buying.

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