USTOA Operators Counsel Chile on Destination Marketing

At its annual out-of-country meeting in Chile this week, the U.S. Tour Operators Association paused in its exploration of the country to hold a panel discussion on the state of the industry and Chile’s status in the travel market. Local suppliers turned out eager to learn tips about breaking into the U.S. market from representatives of the tour operator organization that accounts for 11 million passengers and $9 billion worth of travel business a year.

The panel was introduced by Pablo Moll Vargas, general manager of Turismo Chile, and moderated by John Stachnik, president of Mayflower Tours and current chairman of USTOA. It was a tightly organized panel, based on a list of specific questions, considered in advance by the operators on the panel.

About 20 operators sat on the panel, representing such major companies as Tauck, Collette Vacations, Travel Impressions, IsramWorld, SITA World Travel, Travel Bound, CIE Tours, Australian Pacific Tours and Avanti Destinations. Questions focused on the state of the industry and the ways Chilean suppliers can break into the U.S. market.

Vargas had been lobbying USTOA for the last four years to get the attention of major U.S. tour operators, and though the out-of-country meeting had been planned far in advance, the Feb. 27 major earthquake in Chile only six weeks before the planned event put the whole thing in jeopardy. “The USTOA board met to decide whether to continue with our plans, and while we were meeting, the U.S. government discouraged all unnecessary travel to Chile,” Stachnik said. “But Chile Tourism told us, ‘You must come, and judge for yourself.’ So we did. And we are sure glad.”

Harry Dalgaard, president of Avanti Destinations, which concentrates on FIT business to Latin America and Europe, said the last impression left by the major news media was that “you probably wouldn’t be able to get into the city from the airport.” Contrary to those reports, he said, “it was a breeze.” By the time the airport was back in operation and Chile had recovered most of its functions, Dalgaard said, the story was no longer sensational enough to attract media attention, so the public was left with the impression of a broken down Chile.

The panel was also asked to assess business prospects for 2010. “It’s no secret that 2009 was a rough year for Tauck and for many other companies, but 2010 has taken off,” said Tauck’s Dewan said. “We are cautiously optimistic.” The market continues to be deal-driven, he said. “Consumers are not ready to pay top dollar. They are looking for value.”

The panel also examined Chile’s competition in the market. “Chile has so much to offer -- beaches, adventure, food, wine, fjords, the desert,” said Nico Zenner, president of Travel Bound said. “For the desert, is your competition Libya? No. No one wants to go to Libya. For fjords, is it Norway? Norway has no wine.”

Brazil has an aura of sexiness, while Peru is mysterious, Zenner said. “Chile does not have anything like that, yet when we visited Santa Lucia Hill there were many young people getting very close to one another. Perhaps you can promote that, like ‘Virginia is for lovers.’”

Collette’s Twidale suggested that Chile try marketing itself with other destinations. “You could offer it as a stand-alone destination, but people who come to South America want to see more than one country,” she said. “I suggest Chile partner with other countries. How can you marry it to other products?”

Eileen Lowe Hart, senior vice president-marketing and product development for IsramWorld, agreed. “Packaging with other countries is one way to market a country,” she said. “What Chile needs is visibility. People will relate to food and wine. Word of mouth is the best advertising. A happy camper will come back and tell others. That will be us.”

The USTOA operators in attendance showed consensus on most of the issues discussed, especially on the need to heighten marketing and public relations efforts. “Double your PR budgets, get more Matt Lauer shows here,” said Stachnik. Added Dalgaard: “When Matt Lauer came on the Today Show saying, ‘Here we are in Easter Island,’ our Chile sales doubled immediately. You’ve got to do more of that, and spend money!”