2006_Oregon_Golf_Travel_Market_Pres

Agenda

• Seizing Segmentation

• Women’s Market

• The Power of the Golfer as Traveler

• 2005 Golf Travel & Destination Study• Planning Golf Vacations• Destination Awareness• Golfer Perceptions

• Process of Vacation Planning

• The Role of the Media

- Here Come the Zoomers

- The Burgeoning Women’s Market

Seizing Segmentation

4

Meets

Becomes Today’s New Generation For Marketers

God’s Waiting Room GODSPELL


5

“To be successful in reaching the growing Boomer market, we can’t let the past get in our eyes… put aside the old, negative stereotypes, cast aside previous assumptions and begin to look at this population through a new lens.” – William D. Novelli


6


• 78 million baby boomers range in age from 40 to 58

• The Boomer population controls $28 trillion or 67% of our nation’s wealth, plus:

– 40% of all mutual funds

– 60% of all annuities

– 48% of all luxury cars Source: Age Wave, Inc.

Median net worth of households – 2000 Census

$112,000

$7,000

Headed by leading edge Boomers

Headed by someone under age 35

The Power of the Boomer Market

7


– Richard Hobbs, American Institute of Architects

“The impact of the aging population on markets, employers and cultures cannot be overstated. Just as the Baby Boom flooded maternity wards, ignited school construction and made youth the cultural icon of the ’50s, ’60s and ’70s, the Senior Boom of this century will shape the 2010s, ’20s and ’30s.”

TOMORROW

• Economists estimate than Boomers will experience the greatest wealth transfer in history – $12 trillion over the next 20 years and $161 billion alone in 2003 inheritances according to Boston University economist Laurence Kotlikoff.

8


• Idealism

• Spiritualism

• “Been there, done that” (rejection of the ordinary – experience seekers)

• Fun & Novelty

• Instant Gratification

• Selfishness

• Rejection of Traditional Values

Unlocking the Boomer Mindset – Not Your Father’s Retiree

9


Compared to My Parents…

…I’m more self-indulgent

75%Agree

…I plan to work at least part-time during retirement

80%Agree

…I’m confident that I will have enough to retire in comfort

65%Agree

Source: Study of 2,000 Baby Boomers – NOP World

Unlocking the Boomer Mindset – Not Your Father’s Retiree

10


“We are all beginning to realize that because we are living longer, old may not begin until 75 or 80”

– Ken Dychtwald, Age Wave, NY Times, 12/01/2003

Vibrant ▪ Active ▪ Free To Spend Considerable Wealth ▪ Seeking Relevance ▪ Re-inventing Retirement

45 is the New 25!

11


Competitive • Brand Conscious • Pursuing the Best •The Club Community and Travel As Important Anchors

And The Golf Lifestyle Is In Synch With Many Of “Life’s Rewarded” & “Country Club Elite”

Women’s Market

13

+1%25,400

20,574

4,826

27,400

20,824

6,576

All Golfers Male Golfers Female Golfers

2000 2003

Women’s Market

Source: National Golf Foundation 2001, 2004

+8%

(000)+36%

The Burgeoning Women’s Market

14

Women’s Market

• 1.5 million girls age 5-17

• An increase of almost 400% in 2 years

Youth Movement

The Power of the Golfer as Traveler

16

6.5

1.4

8.5

2.5

Women Men

1989 2002

Estimated Number of Golf Travelers(In Millions)

Golf Traveler: A golfer who played at least once in the past year while traveling on business, vacation, or a golf-only trip

Source: The National Golf Foundation: Golf Travel in the U.S. 1990, 2003

+31%

+79%


Golf Travel Has Seen Significant Growth in The U.S.

17Source: MRI Spring 2004, MRI Fall 2003, MRI Doublebase 2002

INDEX(100=U.S. Average)+14% +5%

185

89

211

86 85

221

Golfers Non-Golfers

2002 2003 2004

The Power of the Golfer as TravelerGolfers Are Even More Likely Than Non-Golfers to Be Avid Travelers (5+ Domestic Trips )

18Source: MRI Fall 2005

Golf Traveler: Played golf on vacation in past year

Traveler: Taken 1+ trip in past year

$68,136

$83,471

$51,700

MedianHHI

TRAVELER

GOLF TRAVELER

NON-GOLF TRAVELERMedianHome Value

$218,782

$266,852

$180,120

TRAVELER

GOLF TRAVELER

NON-GOLF TRAVELER


The Golf Traveler: A More Affluent Traveler

19Sources: RRC calculation of TIA and NGF data



Non-GolfBusiness Travel

Non-GolfLeisure Travel

Golf Travel$19.522%

$31.236%

$36.742%

• Last Year Travel Expenditures Amongst Golfers Exceeded $87.4 Billion– Spending nearly more than twice that of non-golfers on a per person basis

20Source: MRI Fall 2005


Cruise Travel: Past 3 Years

187

96

295Taken 7+

Round Trips

TRAVELER

GOLF TRAVELER

NON-GOLF TRAVELER

Taken Cruise of 1+ Days

Spent $5,000+

on Domestic

Trips

158

98

176

187

91

518GOLF TRAVELER

NON-GOLF TRAVELER

TRAVELER

GOLF TRAVELER

NON-GOLF TRAVELER

INDEX: 100 = U.S. Average



TRAVELER

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Source: MRI Fall 2005


Car Rental: Any Use/Rented last 12 months

153

98

211Car Rental

TRAVELER

GOLF TRAVELER

NON-GOLF TRAVELER

Spent 15+ Nights in

Hotel/Motel174

96

307

TRAVELER

GOLF TRAVELER

NON-GOLF TRAVELER

INDEX: 100 = U.S. Average

The Golf Traveler: A More Active Traveler

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(Spent $2,000+ on Domestic Vacation in Past Year)


Source: MRI Fall 2005

Golf 1,371,000Bicycling 882,000

Running/Jogging 661,000

Health Spa/Retreat 818,000

Snow Skiing 685,000

Play Tennis 219,000

2005# of People

Participated in the Following on Vacation

The Golf Traveler: Spends More On Vacations

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Base: Heads-of-Households; HHI: $75,000+Source: Mendelsohn Affluent Head-of-Household Study 2005

Tennis Backpackers/Players Sailors Skiers Campers Golfers

Target (millions) (millions) (millions) (millions) (millions)Took a Domestic Airline Round Tripin the Past Year 4.5 1.6 4.4 7.5 10.2Took a Domestic Airline Round Tripfor Business in the Past Year 2.0 1.0 2.0 3.3 5.1Took a Domestic Airline Round Tripfor Vacation in the Past Year 4.1 1.5 4.0 6.3 8.9Took a Foreign Airline Round Tripin the Past Year 2.2 1.0 1.2 2.7 3.8Took a Foreign Airline Round Tripfor Business in the Past Year 0.6 0.2 0.5 0.6 1.1Took a Foreign Airline Round Tripfor Vacation in the Past Year 1.9 0.8 1.6 2.2 3.0Member of a Frequent Flyer Program 2.2 0.8 2.1 3.4 4.8

The Golf Traveler

Golf is the #1 Sport Among Affluent Travelers (2004 MMR)

2005 Golf Travel&

Destination Study

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93%

41%

36%

91%

38%

29%

2004

2002

Vacation/ Pleasure/ Personal

BusinessOnly

Business/Vacation

Took Trip Past 12 Months

68%

30%

25%

64%

30%

20%

2004

2002

Vacation/ Pleasure/ Personal

BusinessOnly

Business/Vacation

Took Air Flight 12 Months

• 46% said they flew more than a year ago!

General Travel Up Across the Board in 2004!

2005 Golf Travel & Destination Study

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Took Golf Trip Past 12 Months

58%

65%

26%

15%

87%

52%

64%

27%

15%

86%

2004

2002

Golf Vacation

Vacation Where Golf was Played

Business Trip Where Golf was Played

Trip to Play in Tournament

Any Trip Where Golf Was Played


Golf Vacation Travel Increased Measurably!

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• 7.2 million total trips

• 6.4 round trip air flights

• 5.2 million golf trips

• 1.7 million golf vacations

Note: Projected from ABC, period ending 2004

In the Past Twelve Months Golf Digest Subscribers Took…

A Powerful Travel Base

Planning Golf Vacations

2005 GOLF TRAVEL & DESTINATION STUDY

Subscribers Make The Decisions And Influence Others


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Who have you planned a golf vacation for?

8%

8%

32%

41%

88%Myself

Other Family Members

Co-Workers

Business Associates

Friends


79% of Golf Digest Subscribers Have Planned a Golf Vacation – and Those Planning Golf Trips Often Handle the Details for Others!

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• 69% of respondents strongly agree that going to different destinations enhances the golf experience

• Nearly half research a variety of destinations before making a final decision (49%)

• 70% of those surveyed disagree that home state golf courses haveimproved to the point that they will take fewer golf vacations

• Following a strong 2004, half say they are planning more golf vacations in the coming 12 months

Planning a Golf Vacation

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Planning golf vacation 3+ months 49% 52%

Booking reservations 3+ months 33% 39%

2002 2004


Golfers Spent More Time Booking Golf Vacations In ‘04 Compared to a “More Impulsive Attitude” in 2002!

32Base: Planned a golf vacation

Which are the two most important deciding factors for choosing a golf destination?

41%

37%

29%

24%

15%

15%

11%

13%

11%

33%

31%

29%

27%

18%

14%

12%

11%

9%

2004 2002

Quality of Golf Course

Value for the Money

Weather Conditions

Availability of Multiple Courses

Choice of Accommodations

Recommendations of Others

Reputation Based on What You’ve Heard

Availability of Other Recreational Activities

Easy To Get To

Planning Golf VacationsThe “Paradigm Rules” and is More Important than Ever in 2004!


Which are the two most important deciding factors for choosing a golf destination?

38%

44%

33%

18%

13%

14%

11%

11%

11%

44%

32%

26%

30%

17%

16%

11%

15%

9%

Less than $100K HHI

$100K+ HHI

Quality of Golf Course

Value for the Money

Weather Conditions

Availability of Multiple Courses

Choice of Accommodations

Recommendations of Others

Reputation Based on What You’ve Heard

Availability of Other Recreational Activities

Easy To Get To

Planning Golf VacationsDecision-Making Drivers are Universal

34Base: Planned a golf vacation; rated “4” or “5” on a five point importance scale

How important do you rate the following amenities when choosing a golf destination?

3%

9%

15%

18%

19%

51%

56%Fine Dining in the Area

Restaurants On Site

Spa

Fitness Center

Concierge Services

Business Center

Golf School


Serious Golfers Seriously Consider Dining Opportunities When Choosing a Golf Vacation Destination


How important do you rate the following amenities when choosing a golf destination?

<$100M >$100M5 Point Scale Mean Mean

Spa 1.9 2.3

Fitness Center 2.1 2.6

Concierge Services 2.0 2.4

Fine Dining in the area 3.3 3.6

– INCOME LEVELS –


Income Drives Significant Differences in Desired Amenities

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How important do you rate the following aspects of a golf vacation advertisement in a golf publication?

42%

51%

53%

57%

63%

73%

84%Prices

Special promotions

Photos of the accommodations & resorts

Photos of the golf courses

Info about area attractions

Info about the course, architects, ratings

Info about Accommodations & amenities

Base: Planned a golf vacation; rated “4” or “5” on a five point importance scale


Golf Digest Readers Want to Read Most About Prices, Promotions and Accommodations

Destination Awareness



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Q. Based on your experience, what you have heard from others or read about, how familiar are you with each of the following golf destinations?

Know a lot about

Know something about

Know name only

Not familiar with

Destination AwarenessDestination Awareness

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– Top Ten U.S. Destinations & Oregon Destinations –Percent Who Know a Lot/Know Something About These Areas

2004 2002 2001Rank Incidence Rank Incidence Rank

Myrtle Beach, SC 1 68% 1 69% 1Hawaii 2 67% 5 64% 5Hilton Head 3 67% 1 69% 4Las Vegas 4 66% 3 68% 2Orlando 5 64% 4 65% 2Charleston/area 6 57% 6 56% 7Scottsdale/Phoenix 7 57% 7 55% 6Pinehurst/surrounding area 8 51% 9 51% 12Miami/Ft. Lauderdale 9 48% 8 52% 8San Diego 10 48% 13 40% 9Oregon Coast, OR 33 21% 33 18% NMBend/Sun River area, OR 35 18% 35 14% 28Number of Common Markets Measured: 36 36 28

NM = not measured

Destination AwarenessHawaii & San Diego Come Back; Las Vegas and Orlando Lose Rank Over Last Two Reports; Oregon Increases Awareness - Still Ranks Low


Golfer Perceptions


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Q. On a scale of “1” (excellent) to “4” (poor), how would you rate each golf destination you are familiar with based on “Quality of Golf” and “Value for the Money”?

Golfer Perceptions

Golfer Perceptions

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Top Ten U.S. Destinations – Mean “Quality of Golf” Scores

2004 2002 2001Rank Rank Rank

Kohler, WI 1 3 NMMonterey Peninsula, CA 2 1 2Pinehurst & surrounding area 3 2 1Hawaii 4 4 3Hilton Head, SC 5 7 5Robert Trent Jones, Trail, AL 6 9 8Bend/Sun River, Oregon 7 15 10Scottsdale/Phoenix, AZ 8 6 4Myrtle Beach, SC 9 8 7Oregon Coast, OR 10 10 NMNumber of Common Markets Measured: 36 36 28NM = not measured

Golfer Perceptions

Newbie Kohler Tops List for Quality, Oregon Delivers Both Bend and the Oregon Coasts; RTJ Trail Posts Remarkable #6 Spot

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Myrtle Beach, SC 1 1 2Robert Trent Jones Trail, AL 2 2 1Northern Michigan 3 6 3Gulf Shores, AL 4 3 7Minnesota 5 7 NMNorthern Carolina Mountains 6 3 6Bend/Sun River & surrounding area, OR 7 5 8Oregon Coast, OR 8 13 NMMississippi Gulf Coast, MS 9 9 NMCharleston & surrounding area, SC 10 8 9Number of Common Markets Measured: 36 36 28

Top Ten U.S. Destinations – Mean “Value for the Money” Scores

NM = not measured

Golfer PerceptionsOregon Coast Breaks into Top Ten; Mid-West Takes #3 an #5 Positions; Myrtle Beach and “The Trail” Lead in Value

44

“t” = tie

Competitive Set – Mean “Quality of Golf” Scores


Monterey Peninsula, CA 1 1 1Hawaii 2 2 2Bend/Sun River area, OR 3 t 6 4Scottsdale/Phoenix, AZ 3 t 3 3Oregon Coast, OR 5 4 NMSan Diego, CA 6 8 6Tucson, AZ 7 5 5Canadian Rockies/ Banff, CA 8 9 NMLas Vegas, NV 9 7 7Lake Tahoe/ Reno, NV 10 10 8Number of Common Markets Measured: 10 10 8

“t” = tie NM = not measured“t” = tie

Golfer Perceptions

Oregon Destinations Share Strong “Top 5” Positions for “Quality of Golf” Among Major Regional Competitors!

45

Competitive Set – Mean “Value for the Money” Scores


Bend/Sun River area, OR 1 1 1Oregon Coast, OR 2 2 NMTucson, AZ 3 3 2Canadian Rockies, Banff, CA 4 5 NMSan Diego, CA 5 4 3Scottsdale/Phoenix, AZ 6 6 4Lake Tahoe, Reno, CA 7 7 5Las Vegas, NV 8 9 6Hawaii 9 8 7Monterey Peninsula, CA 10 10 8Number of Common Markets Measured: 10 10 8

NM = not measured

Golfer Perceptions

For the Past Three Studies Bend/SunRiver area Tops List of Regional Competitors for “Value for the Money!”

46* ranked top 15 for “Quality of Golf”** ranked in top 15 “Value for the Money”

U.S. Destinations 2004 2002 2001

Myrtle Beach, SC Yes Yes Yes

Robert Trent Jones Trail, AL Yes Yes Yes

Oregon Coast, OR Yes * NM

Bend/Sun River area, OR Yes ** Yes

Pinehurst & surrounding area, NC ** ** Yes

Number of common markets measured: 36 36 28

NM = not measured

Golfer Perceptions

Oregon Rocks! Myrtle Beach and “The Trail” Best forQuality/Value Paradigm

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Golfer Perceptions

• Based on the 58% of respondents who took a golf vacation in the past year, the average length of stay was 6 days. Only 18% stayed longer than one week.

• The average golf vacation party consisted of 8 people - two foursomes

• Golfers are more likely to include friends on their trips (68% of the time) as compared to other family members (48%)

• The average number of rounds played per person was 5 rounds, or, approximately one round per day, excluding travel

The “Quintessential” Golf Vacation

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How Reservations Were Made for Most Recent Golf Vacation

Base: Took a golf vacation in past year

21%

18% 57%

4%

Used A Travel Agency

Called Directly to Arrange Flights,

Accommodations and Tee Times

Used A Golf Packager to Book

Tee Times and Reservations

Used the Internet

Golfer Perceptions

Golf Digest Subscribers Make Their Own Golf Travel Arrangements;Internet Usage Increased from 17% in ’02 to 21% in ‘04

49

How Much Spent on Most Recent Golf Vacation

Base: Took a golf vacation in past year; projected to 1,400,000 subscriber rate base

56%

8%8%

29% <$1,000$1,000-$1,500

$2,001+

$1,501-$2,000

Mean: $1,102

Golfer Perceptions

44% of Respondents Personally Spent $1,000 or More on Their LastGolf Vacation – That’s nearly one Billion Dollars!*

Process of Vacation Planning

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“American’s have come to view vacations as a birthright. They’re not willing to give them up!”

Dr. Susan Cook - SVPTravel Industry AssociationUSA Today



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• The Golf Digest Companies Research Resource Center sought insights on the Vacation Planning Process among affluents, focusing on Major Vacations, and not specific to golf vacations (buddy trips.)

• Men and women golfers, as well as non golfers, were studied allowing for comparison.

• Results provide greater understanding into how Vacation Planning is being approached in today’s consumer marketplace, and the role of various influences

Background & Objectives

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• Quantitative– 400 twelve-minute phone interviews conducted nationwide

• Qualitative– Individual interviews and focus groups in San Francisco and New York– household incomes greater than $125K– Frequent vacationers– Mixture of frequent, infrequent and non golfers

• All respondents, all phases– Took pleasure vacation (exclusive of business trips or visits to relatives)

within past 12 months– Minimum stay of 5 consecutive days– Personally spent at least $1,000


Methodology - Three Distinct Research Phases

54


• Travel inspiration comes primarily from magazines, television, and word of mouth, and secondarily from newspapers and guidebooks.

• Whether consciously or not, travel planning takes on a distinctly linear and highly involved process that encompasses specific stages, each offering key opportunities for marketers to gain share of mind through a variety of media and communication channels.

• Magazines are a critical marketing vehicle, particularly in the initial stages of travel inspiration. They contribute significantly towards framing a traveler’s consideration set.

Key Findings

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• “Value” supersedes price in vacation budgeting…

– Marketers’ Magic formula: Provide a top notch experience that isperceived to be “a deal”

• The Internet is a primary source for executing travel arrangements; especially at bargain prices ….. It’s a “transaction enabler” not necessarily a “brand builder.”

• Participants are looking for a wide range of activities when they travel. Golfers will endeavor to get one round in on most trips, but golfing is not a requirement for all of their vacations.

Key Findings

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• Step I - Location Inspiration & Destination Selection– “We look for special places and new ideas by doing research. See

where we haven’t been. Read magazines, watch TV, talk to friends and read travel books.”

• Step II - Narrowing Down Choices– “Assess the amenities and levels of service we require, the weather

and the time we have to travel. Talk to recent visitors, read reviews and rankings in magazines and on the Internet.”

The Process of Planning a Vacation Hypothesis for Consideration

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• Step III - Prices & Logistics– “Once I’ve decided where to go, I begin to look for deals on the

Internet and make air flight reservations. I’ll search endlessly for accommodations and packages; make reservations for activities and so forth.”

• Step IV - Controlling The Situation, Beyond The Booking– “As we get closer to leaving, I’m always getting the inside scoop

on new restaurants and things to do off the beaten path. I startdeveloping an itinerary, reconfirm reservations and make sure everything is OK.”


The Process of Planning a Vacation Hypothesis for Consideration

The Role of the Media

59


Tier OneMagazines • Internet

Tier TwoTelevision • Newspapers

Major Media Influencers

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• “Magazines are great at the beginning of the process; they give me ideas and direction if I don’t know where I am going.”

• “Magazines are good for ideas and locations; I look for rankings to see where the best places to go are.”

• “It would never have occurred to me to look for something like that (trip to Belize) and it was because I read an article in a magazine.”

How Magazines Contribute

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• “We do get lots of travel magazines…its fun to read about it…I tear it out if there’s something I want to check out…I have files of articles.”

– Maureen

• “You can look through that kind of stuff on the internet, but its going to be different pages, where this is all right in front of you (in magazines)”

– Robert

• “Magazines are good for ideas and locations; I look for rankings to see where the best places to are.”

– Paul

Magazines Are Preferred For Travel Inspiration Because Of The Personal, Physical And Visual Interaction They Provide

Travel Inspiration from Magazines

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• Women rely on magazines more than men for “increasing their desire to take a vacation.”

• Vacationers 45-64 are significantly more likely to utilize magazines for their travel planning than those between the ages of 18-44.

More Differences about Magazines

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“I really use the web when I already know where I am going”

– Hadley

How the Internet Contributes an Effective Enabler

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1. Prices & packages2. Encourages me to seek out information3. Ideas about where to stay

4. Re-enforcing decisions5. Ideas about where to go6. Ideas about what to do7. Increasing my desire to travel8. Sparks my imagination

Base: Internet is important for planning

How the Internet Contributes “Prices, Stats & Comparison Shopping”

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75% 80%

0%

20%

40%

60%

80%

100%

The Internet Is Important For Planning

Prices, Packages

GOLFERS NONGOLFERS

It’s Largely About Price


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Captures my imagination 74% 51%Gets me thinking about vacation 76% 54%Keeps me abreast of trends 67% 52%Helps me consider destinations to go to 62% 56%

Helps me determine accommodations 58% 69%Helps me budget 56% 61%Helps me make my arrangements 55% 70%Helps me decide what activities to do 49% 51%

InternetMagazines– Rated Important –

Comparing the Internet and Magazines


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TV’s Role:• Increases desire to travel, especially globally• Sparks imagination and desire through motion

and sound

Re-enforces Destination Selection and Logistics

Newspapers’ Role:• Prices & Packages• Ideas about where to go


Television & Newspapers Provide Complimentary Weight In All Three Steps

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Step 4Beyond the Process

Step 3Prices & Logistics

Step 2Narrowing Down Choices

Step 1Location & Inspiration

Step 1Location & Inspiration


Step 2Narrowing Down Choices

Step 3Prices & Logistics

Step 4Beyond the Process

Magazines, Television, Newspapers and Books

Internal assessment, Internet, magazines and recent visitors

Internet, travel agents, newspapers, books

Direct contact with facilities through phone or email, Special promotions in all media

How Media Serves the Process

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MAGAZINES INTERNET

Macro

Personality

Ideas

Inspirations

Desires

Micro

Prices

Information

Itineraries

Discounts

Towards Better Understanding Magazines and the Internet


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• Revisit favorite places for vacations

• Respond to travel ads, clip and/or read travel articles in magazines

• Take separate vacations apart from their family

• Be interested in purchasing vacation real estate

Golfers Are Significantly More Likely Than Non-golfers To…..

Golfers Provide Unique Marketing Opportunities


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Golfers Do Many Of The Same Things As Non-Golfers Except They Play Golf Too!


Dispelling The Myth That Avid Golfers Are “One Dimensional” On Vacation

Sightseeing 71 69Fine dining 69 57Shopped 66 66Golf 63 8Tennis 31 36Water sports 29 32Theatre, Concerts 27 26Hiking 23 31Casino gambling 20 14Spa 16 20Amusement parks 11 20Horseback Riding 2 9

Golfers%

Non-Golfers%

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