The potential market for responsible travelers is enormous. Research suggests that nearly 36% of adult American travelers (55.1 million people) can be classified as sustainable or geo-tourists ("responsible travelers"), with ceaseless expectations for unique and culturally authentic travel experiences that protect and preserve the ecological and cultural environment.1
The estimated number of LOHAS (Lifestyles of Heath and Sustainability) consumers is 63 million strong and growing and is in line with the number of responsible travelers. These consumers represent a market conservatively estimated to represent more than $226 billion in annual sales in the U.S. and more than $540 billion worldwide.2
Compare these statistics with the U.S. adventure travel market, for example, which has been conservatively estimated to encompass as few as 14.3 million travelers or 6.7% of the total travel market, and it's evident that eco-tourism, and more perhaps more accurately, sustainable tourism is not a niche market anymore.3
Responsible travelers are attracted to travel companies that employ sustainable business practices, and this target market represents a huge profit arena. 58.5 million Americans say they would pay more to use a travel company that strives to protect and preserve the environment. The majority (61%) of those who would pay more to use such companies would pay 5-10% more.5
Build It - And Will They Come?
Regardless, the perceived size and scope of the eco- and sustainable tourism marketplace has led to a false assumption that if you build it responsible travelers and other conscientious consumers will come. This isn't always the case. In fact, many times it's the exception and not the rule.
From the inception of eco- and sustainable tourism projects and businesses, organizations first need to determine the feasibility of the projects and their goals. Then, they need to develop a business plan in conjunction with all affected parties ("stakeholders"), and then secure the resources to properly promote, manage and administer the programs.
Sustainable tourism projects and businesses also need to determine how to market to responsible travelers. The principal tourism products sell "sun, sea and sand" or "recreation, rest and relaxation" and this has been an extremely effective way to reach the mass tourism market, but it's not necessarily an effective strategy for attracting the LOHAS market. Based on existing research, it's obvious that this market segment seeks meaningful connections with nature and community. They care about the environment and want to ensure its heath for future generations. However, there is strong evidence to support the fact that they will not alter their lifestyle choices to address their concerns. There is also evidence that they prioritize price, brand recognition, and word of mouth recommendations over concerns about their environmental impact.4
For businesses and destinations to attract this market and actualize the full potential of utilizing eco- and sustainable tourism as tools for environmental conservation and community development, they're going to have to evaluate what motivates conscientious consumers to purchase related products and services in the first place.
But what motivates conscientious consumers to purchase? And how do we market to them? Quite simply, eco- and sustainable tourism products must offer the right mix of product pricing, quality and convenience, and values and virtues to be competitive in the marketplace.
Product Pricing
Pricing is extremely competitive in the travel and tourism industry with all-inclusive package deals being offered for as little as $65-135 per night or less. However, these vacation destination packages don't always directly benefit local communities, let alone the environment.
There is ample evidence to suggest that consumers will purchase if not pay more for travel and tourism products that preserve the natural, historic, and cultural sites of the destinations they visit. 46 million travelers buy from specific companies because they know that these businesses donate part of their proceeds to charities.5
Still, when it's time to pay, these consumers' purchasing decisions don't always align with their values. For example, according to a recent study, 98.1% of LOHAS consumers are aware of organic foods, but only 37.7% have used or purchased them.6 It's clear that marketers need to determine the connection between creating awareness of organic products and what motivates people to buy them. They also need to address the price disparity between organic and conventional foods. Organic foods often cost 20% or more than conventional foods. This analogy could also apply to the travel and tourism industry.
Those who offer "traditional" tourism products must consider the economy of the market they're selling in and the local economy, product quality, comparable foreign markets, and other competitive interests when establishing price. They must also ensure that their ventures are financially sustainable and offer good value.
Those who offer eco- and sustainable tourism products must take into consideration all of these variables as well as their environmental, economic and socio-cultural impacts. And they need to get their message across to consumers. It's a tall order to fill, but determining the right mix will afford those who provide eco- and sustainable tourism with an opportunity to compete and likely thrive in the global marketplace.
Quality and Convenience
With trans-global, non-stop flights being offered for as little as $800-1200 round trip, most countries are now more accessible to the primary travel markets in Asia, Europe, and North America than they've ever been. This increase in accessibility has created a more competitive marketplace with destinations and businesses that operate or offer programs trying to attract the same travel markets.
In addition, most businesses in the travel and tourism industry strive to provide consumers with high quality experiences designed for a range of tastes and budgets. Referral-based business and repeat clientele oftentimes create financial viability for businesses of all sizes.
Recently, in a report titled The Green Market Gap, EplerWood International quoted Joel Makower as saying, "consumers are willing to make a greener choice if the product comes from a company [or destination] they already know and trust, it doesn't require (m)any behavioral changes to use, and it's at least as good as what they're already buying in terms of aesthetics, style, taste, etc."7
We consumers are creatures of habit. Most of us will not change our buying behaviors unless we have good reason to. This is the challenge presented to those offering eco- and sustainable tourism products and services. To be competitive, pricing has to be similar to non-sustainable tourism products and services, the quality has to be comparable if not better, and they have to be readily available in the marketplace through both traditional and non-traditional marketing outlets.
Values and Virtues
Based on existing research, it's obvious that this market segment seeks meaningful connections with nature and community. They care about the environment and want to ensure its heath for future generations. There are strong indications that eco- and sustainable tourism products must not only deliver price, quality, and convenience; they must also be experiential and educational as well as inspiring and rewarding, providing consumers with connections to nature and community.
Authenticity is also important to travelers. 61% of Americans surveyed in the recent Geotourism: New Trend in Travel study believe their experience is better when their destination preserves its unique natural, historic, and cultural sites. In addition, 41% of these travelers said their vacation experience is better when they can see and do something authentic.5
LOHAS consumers tend to have a relatively holistic world view. Their dominant concerns are for social justice, conservation of natural resources, environmentally friendly products, and the wellness of body, mind, spirit and planet.8 Furthermore, research indicates that 30% of the U.S. adult population makes purchasing decisions based on their personal, social and environmental values.6 LOHAS consumers are also more likely to associate personal values with companies and their brands.
Every country has something that's unique to their destination, whether it is its culture, history, natural beauty, biological diversity or a mix of all of these. Therefore, once a destination determines its strengths and what makes it unique, it's in a position to compete in the global travel and tourism marketplace. The key is to promote the ways in which tourism positively impacts the people and the environments of a given destination. This strategy is not only reflective of the region's values, it's also an exceptional brand and reputation builder.
Measure Your Success!
Though there is ample research to support the size and scope of the LOHAS and sustainable tourism markets, it is challenging for responsible travel companies and related destinations to determine if new business stems from their commitment to sustainability.
Accurately measuring your positive impacts and marketing them along with your responsible tourism policies while educating your clients about responsible travel will help to send a strong message about your company and or destination.
Also, if you ask your clients the right questions, you may be surprised to find that their decisions to travel with your business or to your destination were directly influenced by the values you marketed to them.
Bringing It All Together
For the eco- and sustainable tourism market to grow and support community development, biodiversity conservation, and other environmental, socio-cultural and economic improvements, it will have to appeal to a broad audience who's buying habits have been traditionally based on price, quality and convenience. It will have to offer authentic and meaningful experiences that are experiential and educational as well as inspiring and rewarding.
And perhaps most importantly, the responsible travel market will have to promote its inherit values as additional benefits - protecting the environmental, socio-cultural and economic needs of the places travelers visit, and the planet at large.
Sources
1 - The Geotourism Study - Phase I Executive Summary, Travel Industry Association of America (TIA), National Geographic Traveler 2002
2 - LOHAS, Fall 2001, p. 13, Natural Business Communications and the Natural Marketing Institute
3 - MRI Spring 2004
4 - Ibid
5 - Geotourism: New Trend in Travel study, TIA, National Geographic Traveler October 2003
6 - Understanding the LOHAS Market: Identifying the LOHAS Consumer and Business & Branding Opportunities, Natural Business Communications and the Natural Marketing Institute, 2002.
7 - The Green Market Gap, EplerWood International, March 2004.
8 - America's 50 Million Cultural Creatives Impact the Marketplace: They Care About the World (and They Shop, Too) by Amy Cortese, The New York Times, July 20, 2003
9 - Emerich, Monica. The LOHAS Consumer identified! Natural Business LOHAS Journal. p.12-15, Spring 2002.