Marketing a Hawaiian Vacation to Canadians
The Big Island
Canadian Demographical Information
This report was generated to serve as the basis for a marketing plan for 2013. The target market will be analyzed in terms of its demographic information as well as its vacation preferences. The target market consists of Canadian travelers who might be interested in a trip to the big island and the goal is to increase the number of travelers as well as the length of the trip and the total expenditures per day and consequently per trip. The Canadian target market segment represents a key segment. Recently activity in this segment has increased fueled by favorable exchange rates. Thus, with an effective marketing plan, the environmental conditions can be leveraged even further to broaden the base of Canadian travelers.
The Big Island
The Big Island Overview (Hawaii Tourism Authority, 2012)
Hawaii Island isn’t just big, it’s still growing. The Island of Hawaii is the youngest island in the Hawaiian chain and is also by far the biggest, providing a vast canvas of environments to discover a variety of unrivaled natural wonders. This is the home of one of the world’s most active volcanoes (Kilauea), the tallest sea mountain in the world at more than 33,000 feet (Maunakea), the most massive mountain in the world (Maunaloa) and the largest park in the state (Hawaii Volcanoes National Park). All but two of the world’s climate zones generate everything from lush rain forests to volcanic deserts, snow-capped mountaintops to beautiful black sand beaches. Whether you’re looking for a romantic getaway or a journey off the beaten path, you’ll discover it all on Hawaii, the Big Island (Hawaii Tourism Authority, 2012).
The Big Island must not only compete with travel destinations other than Hawaii, but it must also compete with other locales within the state of Hawaii. Furthermore, a significant majority of Canadians do not travel once they reach their destination in Hawaii. Rather, there is a strong likelihood that whatever island they choose to visit will be the only island they travel too. Thus if the Big Island is to increase its influx from Canada, then it is reasonable to suspect that it will have to market directly to the Canadian target market before they have decided upon their vacation destination.
Figure 1 – Kona Sea Wall (Hawaii The Big Island, 2012)
In 2011 there were about half a million visitors to the Hawaiian state. Of these travelers, less than twenty percent of them visited the Big Island. Furthermore, less than ten percent of the total travelers visited the Big Island exclusively. Relative to other Hawaiian destinations, the Big Island has either a limited amount of appeal or exposure to Canadian vacationers. The Big Island on average receives only a small percentage of travelers from Canada and of these visitors they are roughly equally split between the Kona side and the Hilo side.
STATE 2011 FINAL
(Arrivals by Air)
Hawaii Island only
Table 1 — 2011 Data for Canadian Visitors (Hawaii Tourism Authority, 2012)
Canadians represent roughly seven percent of the total travelers to Hawaii and the number of traveler as a whole has rebounded significantly after the effects of the recession as well as the Japanese nuclear meltdown scared potential visitors with radiation concerns (Martin, 2012). In fact, after the disaster in Japan, many Japanese travelers did not vacation for an extended period of time and an influx of Canadian travelers help to fill this void (Travel Pulse, 2011). Canadian travelers are heavily influenced by the exchange rate since when there is a favorable rate then this effectively reduces the total price of their vacation to Hawaii (Schaefers, 2011). Recently, the August data suggests that Canadians increased in total visitors as well as in total spending which rose to over one hundred thirty four million in March of 2012 (Hawaiin Toursim Authority, 2012).
Canadian Demographical Information
The three highest provinces in terms of the total population are Ontario, Quebec, and British Columbia, in that order. Toronto is Canada’s largest city with a population of roughly five and a half million people living in the metropolitan area. Roughly five percent of the population in Canada earns ninety thousand or more per year and about half of these high-income Canadians live in Ontario (Murphy, 2007). Canadian have a progressive tax rate that is much different to that found in the United States and earn substantially less than the same income demographic in the United States. The labor force in Canada consists of over seventeen million people.
Table 2- Canadian Workforce (Statistics Canada, 2006)
Canada has a high growth economy with low inflation and a gross domestic product (GDP) rate that has grown as high as five percent throughout its development. Canadians have had a grown disposable income rate that has been rising since the mid-nineties which is a strong indicator of economic health. Canadians spend roughly fifty five percent of their total incomes on consumption and this level varies by a couple percentage points in each direction.
Table 3 – Consumption Trend (Office of Consumer Affairs, 2010)
Table 4 – Disposable Income (Office of Consumer Affairs, 2010)
The Canadian people are among the best educated population in the world. In 2010, when the Organization for Economic Co-Operation and Development’s (OECD) released its 2009 PISA results, Canada was ranked sixth overall and the highest English-speaking and French-speaking nation in the world (Education Canada, 2012). By contrast, the United States ranked seventeenth, slightly above the OECD average. Most of the Canadian education system is publically funded through taxes and the Canadian system is among the best school systems in the world.
The ideal target market for the Big Island would be high-income earners in Ontario between the ages of thirty-five and fifty-four. This demographic has a high level of disposable income, is well educated, and geographically condensed. Many Canadians use the internet as the primary tool for researching a vacation as well as booking. However, other promotional routes could also reach this demographic and there is a likely appeal to “snowbirds” during the Canadian peak season of December through March when it is the coldest in Canada.
Education Canada. (2012). The International Quest for Educational Excellence: Understanding Canada’s High Performance. Retrieved from Education Canada: http://www.cea-ace.ca/education-canada
Hawaii The Big Island. (2012). Historic Kailua Village. Retrieved from Hawaii The Big Island: http://www.gohawaii.com/big-island/regions-neighborhoods/kona/historic-kailua-village-kailua-kona
Hawaii Tourism Authority. (2012). Historical Visitor Statistics. Retrieved from Hawaii Tourism Authority: http://www.hawaiitourismauthority.org/default/assets/File/research/historical-data/2011%20Highlights (2).xls
Hawaii Tourism Authority. (2012). Welcome to Hawaii. Retrieved from Hawaii The Big Island: http://www.gohawaii.com/big-island
Hawaiin Toursim Authority. (2012, April 16). TOTAL VISITOR SPENDING IN MARCH 2012 ROSE 18.9% WHILE ARRIVALS INCREASED 12.9%. Retrieved from Hawaii Tourism Authority: http://www.hawaiitourismauthority.org/default/assets/File/research/monthly-visitors/March%202012%20Visitor%20Stats%20PR%20(Final)%20(2).pdf
Martin, H. (2012, January 31). Hawaii sees a bigger wave of tourists. Retrieved from Los Angeles Times: http://articles.latimes.com/2012/jan/31/business/la-fi-0131-hawaii-tourism-20120131
Murphy, B. (2007). High-Income Canadians. Perspectives on Labour and Income.
Office of Consumer Affairs. (2010, February 11). Consumer Trends Report. Retrieved from Industry Canada: http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca02084.html
Schaefers, A. (2011, September 22). Visitor arrivals from mainland markets continue to fall. Retrieved from Star Advertiser: http://www.staradvertiser.com/news/breaking/130378913.html?id=130378913
Statistics Canada. (2006). Industry Classification. Retrieved from Statistics Canada: http://www12.statcan.gc.ca/census-recensement/2006/dp-pd/tbt/Rp-eng.cfm?LANG=E&APATH=3&DETAIL=0&DIM=0&FL=A&FREE=0&GC=0&GID=0&GK=0&GRP=1&PID=97612&PRID=0&PTYPE=88971,97154&S=0&SHOWALL=0&SUB=0&Temporal=2006&THEME=74&VID=0&VNAMEE=&VNAMEF=
Travel Pulse. (2011, June 20). U.S., Canada Visitors to Hawaii Partially Offset Dip in Japanese Guests. Retrieved from Travel Pulse: http://www.travelpulse.com/us-canada-visitors-to-hawaii-partially-offset-dip-in-japanese-guests.html#
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