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How the Hawaii Tourism Authority Markets Paradise to the World

Promoting Hawaii in a changing world

(page 2 of 2)

Beyond Marketing

Much of what makes marketing work isn’t the flashy media campaigns or public relations bonanzas; it’s what happens quietly in the background, and one of the keys to the recent successes of HTA and HVCB is their growing use of data. While the whirlwind nature of the blitzes makes it seem like those decisions were made by the seat of the pants, in reality they were grounded on hard numbers. The target cities were chosen because the data showed they accounted for more than half of Hawaii arrivals. Just as important, as HVCB’s Talwar points out, most U.S. East Coast visitors also pass through these cities, so it’s critical that marketers preserve as much airlift from them as possible. “Protecting the West Coast hubs allows us to protect our East Coast markets as well,” Talwar says.

Similarly, good strategic data was behind almost all the tactics used in the blitzes. Extensive consumer surveys allowed HVCB and its ad agency to craft advertising and public relations material based on the lifestyles and interests of the target audience. Demographic data and customer profiling helped identify appropriate media outlets and event locations. Social media allowed the marketing professionals to track the effectiveness of blitz activities in near real time. New-age marketing is all about data.

Hawaii’s marketers increasingly rely on sophisticated private-sector specialists to develop and make sense of all these numbers. In addition to DBEDT analysts (who recently moved under the HTA roof), these include companies like Hospitality Advisors, a Hawaii-based company with a global reputation as a strategic tourism consultant; Smith Travel Research, a respected industry consultant providing competitive set surveys that allow HTA and its marketing partners to see how Hawaii tourism is doing compared to its major competitors; and Sabre Airline Solutions, the giant travel conglomerate, which provides critical airlift analysis.

Airlift data is particularly critical for an island destination like Hawaii. Our economy depends on having enough air seats and, as the loss of Aloha Airlines and ATA demonstrated, maintaining that airlift is complicated. As David Uchiyama, HTA’s No. 2 man, points out, prior to contracting with Sabre, the state’s marketers had no idea if an airline’s route was having problems. As a consequence, it had no way of knowing if the airline needed help. “With the use of Sabre Aviation,” Uchiyama says, “we can now look months in advance to see booking pace, what the load factors are, and what’s the average fare they’re charging. Now, we can go to them and say, ‘We see that the route’s not doing so well. How can we support it with some kind of marketing boost?’ ” Those sorts of conversations are now commonplace.

Another quiet factor in the recent success of HTA has been the teamwork of Uchiyama and McCartney. HTA is not without critics, and one of the main complaints has always been that the organization’s structure makes it easy prey to politics. Most industry partners say they would prefer a much tighter focus on marketing, and less emphasis on cultural and environmental programs, and other priorities. (The money to fund HTA, after all, doesn’t come from the general fund; it’s paid by hotel guests through the transient accommodations tax.) So, when McCartney was selected to run HTA, many worried about his lack of a marketing background. Starwood Resorts senior vice president for operations Keith Vieira readily admits he preferred Paul Casey, the other major candidate for the job. “Mike had legislative experience and community experience,” Vieira says. “Paul had industry experience.”

Yet Vieira, like other industry critics, have been pleasantly surprised by HTA’s performance under McCartney. “Looking back,” he says, “I would say Mike McCartney was a very good choice.” Partly, that’s because McCartney has been careful to delegate most of the marketing decisions to Uchiyama, whose marketing background at Starwood puts him in good stead with the industry. David Carey, the CEO of Outrigger and another long-time critic of the politics and organization of HTA, points out, “Under Mike, they have a pretty good team in place. And now David’s so much more involved on a higher level.” Both Vieira and Carey acknowledge that McCartney’s political gifts have been useful, too, and not simply in dealing with the Legislature. In fact, his sensitivity and political skills have probably been most on display internationally, where he’s helped transform HTA’s relationship with key travel partners. The best example may be how the McCartney/Uchiyama team dealt with the loss of Japan Airlines’ Narita-Kona flight.

McCartney tells the story this way: Last spring, after losing money on its Narita-Kona route for years, JAL announced it was shutting the route down. For Kona, the result would be devastating, not only because Kona would lose a steady stream of lucrative Japanese visitors, but because, besides Honolulu, Kona is the only international point of entry for the state. Without JAL’s international arrivals, TSA would likely close its temporary facilities there, probably for good. With that in mind, the next time he was in Tokyo, Uchiyama paid a visit to Sunichi Saito, then JAL’s executive officer for passenger sales and marketing. He asked Saito a simple question: “How can we help?”

Those four words changed everything. The next day, Uchiyama was summoned to JAL headquarters to meet with Kiyoto Morioka, JAL’s VP for international passenger sales. “We’ve been flying to Hawaii for 55 years,” Morioka said in astonishment. “This is the first time anyone’s asked us that.” What ensued was a frenzied effort by JAL and tour operators in Japan, and HTA, the Big Island Visitor Bureau, and travel industry partners here to work together to develop marketing and promotional campaigns to create enough demand to sustain the route. This unprecedented cooperation succeeded in raising JAL’s load factor by more than 20 percent – not enough, ultimately, to preserve the route (as part of its bankruptcy restructuring, JAL shuttered 40 percent of its international routes) – but enough to set a new tone in the relationship and create a model for how to market in the future.

That same sensitivity to the needs of travel partners was on display during a string of courtesy calls made by the HTA entourage after the JATA travel fair. Over the course of a day, Ichikura-san chaperoned McCartney, Uchiyama and the HTA board members through a string of corporate offices around Tokyo. Along the way, they visited with executives at airline partners, such as JAL and Delta; at major travel wholesalers, such as JTB and JALPAK; and with trade organizations like JATA and the Japan-Hawaii Tourism Council. These meetings, as you would expect in Japan, were frequently formal and stylized. They were also surprisingly candid, with each side volunteering inside information about corporate strategy or political challenges, swapping industry rumors, and asking for opinions and advice.

In the end, it always came down to those four words: How can we help?

During one of the symposia at the JATA conference this September, McCartney sat on a panel that discussed how to get more Japanese from beyond Tokyo to travel abroad. But, seeing JAL VP Kiyoto Morioka in the audience (a courtesy in itself, since the audience was mostly midlevel managers), McCartney took a question about how low-cost carriers were going to affect the market, and he turned it inside out.

“We appreciate all airlines,” McCartney said, nodding to Morioka, “but we want to say a special aloha to Japan Airlines. Your Kona flight did very well for many years. But, because of the downturn in the world economy, you came to us to apologize that you could no longer fly to Kona. You showed us pictures of your trips to Hawaii when you were a child and told us how important Hawaii was for you. We will never forget that. We’ll never forget the commitment that JAL has for Hawaii. And I wanted to say, ‘We’re the ones who should be apologizing for not coming to you sooner to help.’ Thank you so much for all you’ve done for Hawaii.”

When McCartney finished, Morioka and his small entourage of JAL executives stood and bowed deeply.

 

Which media produce results in Japan

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Effect of mainland “blitzes”

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Marketing “blitzes” in key Mainland cities generated lots of traffic to the GoHawaii website. For example, the June blitz in Los Angeles drove that city’s share of all traffic to the website from about 6 percent to 20 percent. Perhaps more important, Los Angeles’ interest in Hawaii after the blitz seems to have what marketers call a “long tail.” 

 

Where HTA spends its marketing Dollars

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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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