NORTHERN UTAH
INTERNATIONAL TOURISM
& MARKETING
Michael Burnham, Sadie Crabb, Caleb Gorringe,
Daniel Groberg, Kathryn Grover, Allison Huntsman,
Brent Jenson, Erin Kelley, Trevor Lund, Carlie Morrison,
Jeffrey Parker, Logan Smith, Kelsey White
Jon M. Huntsman
School of Business
Huntsman Scholar
Program Fall 2011
Executive Summary
Europe provides a large tourism market that has been relatively untapped by Utah. The Utah Office of
Tourism (UOT) recognizes its need for a better market analysis of Europeans and specific marketing
recommendations that can target European markets. To address these matters, undergraduate business
students at Utah State University have prepared this report for the Utah Office of Tourism.
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The document begins with an analysis of current Northern Utah advertising, as undertaken by the Utah
Office of Tourism. This includes an assessment of the Life Elevated campaign, materials printed in other
languages, social media, the direct flight from Salt Lake City International Airport to Charles de Gaulle
International Airport, the March 2011 issue of Delta Sky Magazine, and Utah’s overall success in
attracting international tourists.
A competitive analysis addresses the context in which Utah is competing for European tourism dollars.
Politically and legally, Europeans face few barriers to visiting the United States. However, economically,
fewer Europeans have been traveling overseas due to the global financial crisis and high cost of
international travel. Socially and culturally, Europeans enjoy large vacation periods that lend themselves
well to international travel; however, language concerns may discourage some from visiting Utah.
Technologically, the Internet facilitates travel planning for many Europeans, and technological
advancements in transcontinental flights will also increase the flow of tourism from Europe to Utah.
Europeans also have geographical motivations for visiting Utah, such as their desire for open landscapes
that contrast with the high population density of Europe. Demographically, the ageing population within
Europe presents a population willing and able to travel. This analysis is followed by the strengths and
weaknesses that Utah has, and the opportunities and threats it encounters. Some of the key strengths
Utah has are the fiscal strength of foreign currencies, rich historical and cultural heritage, a unique social
culture, and numerous outdoor and recreational opportunities. Utah also has the opportunity for
greater interstate cooperation and more distinctive brand promotion. Nevertheless, Utah still faces
threats from other Western states, substitutes within Europe, and budgetary financial constraints.
Utah’s international underexposure and strict gambling and liquor laws may also serve as a deterrent to
potential visitors.
Next is an analysis of the various markets within Europe that could be targeted by the Utah Office of
Tourism. After examining both summer and winter tourists and the different demographic traits of
traveling professionals, young adults without children, and empty nesters, we decided to focus our
analysis upon empty nesters. This demographic includes older married couples whose children have
grown up and moved away, and based on the activities that such individuals like to engage in, we feel
that Utah provides a good match for their tourism needs. This demographic represents the greatest
growth potential and return on investment for Northern Utah marketing. In an effort to market to this
demographic, Utah should put emphasis on golf; arts, culture and history; national parks; state parks;
sightseeing; festivals; national monuments; and scenic byways. We also believe that Utah should place a
greater emphasis on its Western culture and background.
We conclude by making several recommendations of what marketing means the Utah Office of Tourism
should use to increase tourism from empty nester Europeans. These recommendations include fostering
relationships with bus tour companies that have routes and stops within Utah, increasing partnerships
with travel agencies within major cities such as Paris and London, and advertising via airline in-flight
magazines and boarding pass advertisements. We also suggest several low-cost improvements be made
to social media resources such as Facebook and Twitter and that greater online advertising be utilized.
The report concludes with a basic financial analysis of our recommendations, and the feasibility of such
marketing activities for the Utah Department of Tourism.
Several appendices address various other topics such as general European perceptions of Utah, the
willingness of Europeans to visit Utah, further data on business travelers, and various graphs that
illustrate data used in the document.
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Scope Note
This report is a compilation of both primary and secondary data, as collected by undergraduate business
students of Utah State University. Primary data is anecdotal and was collected by talking with individuals
on trains and at various tourist locations within Europe, specifically within Italy, Switzerland, Belgium,
France, and The Netherlands. Our methods for collecting data were far from inclusive, and our sample
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size and demographics were obviously skewed based on the environments in which we talked to
Europeans. To view additional information on European perceptions of Utah, please view Appendix A.
Secondary data was collected from various online sources, as cited within the document.
Our analysis is primarily focused on summer tourism in Northern Utah rather than winter tourism. This
was done for several key reasons. First and foremost, due to the Utah Office of Tourism’s budgetary
constraints, funds should be allocated towards marketing that will provide the best return. Because
there are many locations within Europe that provide winter climates similar to Northern Utah, we feel
that there are lower-cost substitutes for Northern Utah winters within Europe, such as Switzerland.
Because international travel is such an expense, there is a relatively small population of Europeans who
would respond positively to advertising targeted at winter visitors. Additionally, most Europeans’
vacation time is spent during the months of June, July, and August. This is illustrated well in the
following graphic measuring vacation month
preferences of citizens of the European Union.
In addition to dividing the market according to
summer versus winter travelers, we further
segmented the market according to
demographic. Based on interactions with
Europeans, the most common reason why they
had not visited the United States was that their
children created added expenses. For this
reason we decided not to focus on family travel
to Utah. Although we initially thought it might
be a good fit based on Utah’s culture and
values, we ultimately decided that it provided
little room for market growth.
We also decided that expending portions of the marketing budget towards business travelers would also
be wasteful because such travelers are already coming to Utah independent of direct marketing
campaigns. Their presence in Utah is determined by the program, convention, or conference sponsoring
their travel. A study by the US Department of Commerce’s Office of Travel and Tourism shows that
“Activity Participation While in the United States” is 85% accounted for dining in restaurants and 80%
for shopping, two things that visitors will do regardless of direct marketing.1 While marketing directly to
businesses and convention sponsors could increase the number of business travelers to Utah, we feel
that UOT funds will be better spent on other markets.* We also chose not to focus on young people
without children since these individuals are most attracted to Utah for its outdoor recreational activities,
and most of these activities are concentrated in the Southern portion of the state.
*
For a list of international conventions in Utah, please see Appendix B
While there are certainly activities and events for them in Northern Utah, we feel that the majority of
Northern Utah’s offerings directly match the needs of an older demographic and marketing should
therefore be focused upon that segment. Research conducted by the European Union also shows that
older travelers are less likely to find cheaper forms of transportation, cheaper accommodations, and
shorten the length of their trip than younger travelers.2 Empty nesters enjoy a larger disposable income,
fewer time constraints, and other factors that will be discussed at length in our target market analysis. It Page | 4
is for these reasons that we selected an older demographic as out primary target market.
Finally, our data and analysis focuses primarily on citizens from the United Kingdom, France, and
Germany. Not only are these the nationalities of people we interacted with the most, they are the three
European countries with the greatest number of US bound travelers.
Current State of International Tourism and Marketing
The majority of the tourists that come to Utah are from California, Colorado, Idaho, Nevada, Arizona,
and Texas. These states comprise 75% of Utah’s visitors. There is, however, a growing population of
international visitors that are coming to see what Utah has to offer. In 2009, 3.55% of the total nonresident visitation, or over 690,000 visits, came from outside of the United States. A large majority of
these international travelers visited Utah as a part of a multi-state bus tour. These visitors came mainly
from Canada, Mexico, Germany, France, United Kingdom, Japan, Netherlands, and South Korea.
Currently, the money allotted for international marketing represents only 2% of the overall budget. This
amounts to $77,400.3 For every tax dollar that was invested in tourism the 2010 return on investment
was a whopping $16.40.4
Life Elevated
Since the “Life Elevated” campaign began, tourist spending has increased from $5.7 billion in 2005 to
$6.2 billion in 2009.5 The campaign has gained popularity in the United States as well as in Europe. This
was recently evident when Readers Digest subscribers voted Utah’s “Life Elevated” as the reader’s
choice for best among state marketing campaigns.6 In 2011, a spring campaign was launched in an
effort to revamp the tourism efforts made in previous years and $2.1 million was set apart for the
advertising of State and National Parks within the Western United States. 7
The goal of Utah’s “Life Elevated” campaign is to encapsulate Utah in the minds of people around the
world and portray the essence of life in the state.8 The campaign was designed to “showcase Utah’s
natural beauty and unique outdoor activities for both the summer and winter seasons.” Since the
initiation of the campaign in 2006, there has been an increase of one million visitors to Utah per year. 9
In 2008, the state of Utah placed 29 new "Life Elevated" billboards in strategic locations around the
state, welcoming visitors to Utah. Each of these billboards features iconic images associated with Utah,
such as Zion National Park, Delicate Arch, and Golden Spike trains, as well as the "Life Elevated" brand. It
is estimated that about 80% of Utah's visitors arrive by car, and will see the billboards. In 2005, 13.64
million non-residents entered Utah via highway.10
Materials Printed in Other Languages
The Utah Vacation planner is available in eight different languages, with five of those being specifically
targeted towards Europeans. This guide is available in Spanish, Italian, German, French, and British
English. The website, Utah.travel, which is the Life Elevated homepage, is also available in German.
The Office of Tourism teams with companies in the UK and Germany in order to sponsor Utah websites
and advertise about the state. The tourism office has individual websites that are custom tailored to
individuals living in these countries at Goutah.de and Goutah.co.uk. Another website, Utah.com, is
available with all of its content in French, Italian, Spanish, and German.
Social Media
The Utah Office of Tourism currently has links to various forms of social media, although they are
underused:
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



YouTube – The UOT channel currently has 193 subscribers and 12 uploaded videos.
Blogs – http://utahlifeelevated.blogspot.com/ is a blog about Utah and tourist adventures. It
hasn’t been updated since November of 2010.
Twitter – The link from the website has 0 followers and UOT has tweeted 0 times. There does
appear to be another twitter account that does get more traffic but it not directly linked to the
website.
Facebook – The Visit Utah page was liked by 112 people and is updated fairly regularly.
Paris Direct Flight
Ed Bastian, the president and chief financial officer for Delta, stated that Salt Lake City was chosen
among a number of other cities to host the flight because of the high number of flights that already
travel through Delta’s hub in Salt Lake. The city and state also provided incentives worth $1.85 million.
Jason Perry, the Executive Director for the Governor’s Office of Economic Development, has said that
this flight is “going to be a starting point for us to show the world what we’re like. Not just for the
tourist destinations but for business as well.”11 Currently, 49% of all international flights that come in to
Utah are from the direct Paris or Tokyo flights.12
Delta Sky Magazine
In the March 2011 issue of Delta Sky Magazine, a publication read by over 5 million people per month,
Salt Lake City was highlighted with a 53-page article that showcased the positive current business
atmosphere of the state. It also had spots on the many activities and landscapes for which Utah is
known. Several celebrities from the state or those with ties to it were interviewed about why they like
the state.
Ski Days
International skiers or snowboarders account for approximately 3% of the total 4.23 million ski day
visits. Skiing visitors stay, on average, an estimated 10 days and spend around $500 a day.13 This is
approximately 127,000 international ski days. This figure includes all international tourists and does not
specify which country or continent the visitors are from. It is estimated that at least half of these tourists
come from European countries.14
Ski Magazine, a popular ski magazine, recently ranked Utah ski resorts number one in ten of twenty
categories. This far surpassed ski resorts in any other region in the world. Deer Valley was named as
“the top ski resort in America” in 2010 by the same magazine. This upcoming ski season marks the tenyear anniversary of the Olympic games and since the conclusion of those games the Utah ski industry
has grown by an astounding 42 percent.15
Strategy
The Utah Office of Tourism appears to be doing a great job attracting visitors from the Western United
States by means of advertising, especially with television commercials and ads in other various locations.
The additional funding as combined with the “Life Elevated” campaign has played a significant role in
branding the essence of the state and distinguishing Utah from surrounding states. In regards to the
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marketing efforts made to international sectors, the current strategy has appeared less than effective as
international markets only make up 3.55% of all Utah tourists.
PEST Analysis
In analyzing the tourism industry, we focused on six specific areas that will affect it on a macro level.
These are: political/legal, economic, social/cultural, technological, and environmental/geographic, and
demographic. Discussed below are the trends we found to be most relevant to the Utah Office of
Tourism in its efforts to increase international tourism.
Political/Legal
European countries that are targeted by Utah marketing have reached a level of stability that is
conducive to tourism and the general flow of people across international borders. Because of this, the
political and legal barriers created primarily involve mundane issues with visa and passport
requirements. However, thanks to the Visa Waver Program instituted by congress, many of these
barriers have been removed and tourism between the US and Europe has been greatly facilitated.
However, some older European travelers may not qualify for the Visa Waver Program since their
passports may not be biometric or machine-readable, in which case they would have to go through the
process of obtaining a visa or updating their passport. Another potential hindrance involves European
travelers with small children. Currently it is required that infants and toddlers have their own passport.
Only the primary traveler's biographic data is included in the machine-readable zone of the passport,
therefore, children may not be included on their parents’ passports.16
For European Union citizens, obtaining a passport is a fairly straightforward process and most will
already be in possession of one because they are required documentation.17 However, the close
proximity of one European countries to one another results in a high level of international travel. For
this reason, the need to obtain a passport for travel to the US is probably not a significant barrier for
European travel to Utah. However, many Europeans may be persuaded to stay within Europe since
there are no visa requirements. This is a result of the Schengen area agreement, which eliminates
international traveler border controls between 25 major European states. Therefore, the easier the
process of entrance for tourism into the US, the greater the competitive advantage it will enjoy.
In our qualitative research and discussions with Europeans, we encountered no specific political trends
that would currently deter European tourists from visiting Utah. Currently, the United States is on
generally good terms with the EU member countries, and there are no legitimate threats of political
instability or terrorism that may deter Europeans from travelling to the US. Of course, these factors are
always highly variable and create a somewhat unpredictable element of European travel projections.
Economic
Fewer Europeans have been traveling overseas in large part due to the financial crisis that affected the
globe. Instead, many have opted to save money by traveling or vacationing locally. Overseas
international flights are costly, and may limit many people from international travel.
Unemployment, one of the effects of the recent financial crisis, is quite high in the EU-27 area. As of
September 2011, 23.264 million men and women were unemployed in the EU-27 and 16.198 million of
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those were in the euro area. In the course of the year prior to the writing of this report unemployment
has increased by 215,000 in the EU-27 and 329,000 in the euro area. Youth unemployment rates are
even higher; 21.4% in the EU-27 and 21.2% in the euro area are without jobs.18
To combat the grim economic landscape and Euro crisis, Europeans have been tightening their belts in
many different areas. However, these austerity measures are being taken more by governments than
individual citizens, as most individuals have yet to feel the pain of the Euro crisis specifically.19
European countries that provide the largest market for Utah tourism also tend to be those with the
highest disposable incomes. Because there is an obvious correlation between the two, examining
disposable income will give Utah tourism a good idea of where expansion is possible. Below is a table
showing the ten countries in the world with the highest disposable income:
Annual Total Personal Average Income20
(in Constant 2005 International Dollars)
Country
US
Switzerland
Germany
UK
Austria
France
Netherlands
Australia
Taiwan
Sweden
Disposable Income
19,776
17330
17,069
16,710
14,909
14,490
14,393
14,185
13,982
13,746
As we can see from this table, Germany, the UK, France,
and The Netherlands, countries that already provide a
significant amount of tourism, are all within the top ten.
Switzerland, Austria, and Sweden are also on the list, yet
were not on Utah’s list of foreign countries that most
frequently visit. These three countries represent
significant growth potential in Utah.
Another important economic factor influencing
Europeans’ travel decisions is exchange rates. The Euro,
the Swiss Franc, and British Pound in particular, enjoy a
strong position relative to the American dollar. This trend
has both positive and negative implications. European
travelers could feel comfortable spending more due to
the favorable exchange rate, but many potential
European visitors that we talked to seemed to be attracted to Utah by the prospect of camping, hiking,
experiencing “raw nature,” and spending as little money as possible.
Social/Cultural
European tourism trends will be heavily influenced by their work and vacation schedules. All Europeans
are entitled to at least four weeks of paid vacation time as mandated by the European Union, and many
countries give even longer breaks. Finland, for example, grants six weeks of vacation time.21
Additionally, most Europeans tend use all of their vacation time; eighty-nine percent of French workers
indicated that they use all their vacation days within a year.22 This trend in vacation time is evidence of a
broader European emphasis on quality of life, which impacts the decisions Europeans make when
planning vacations.
Language can also provide a significant cultural barrier to international travel. In examining data on
European visitors to the US, it is clear that the UK is the greatest contributor to the total number of
European visitors. In 2010 there were 3,851 thousand visitors to the US from the UK.23 The next most
visiting country was Germany with 1,726 thousand visitors.24 We believe that this is due to a
combination of the UK’s high level of disposable income and the lack of a language barrier. If Utah hopes
to attract visitors from a broader spectrum of European countries it must find ways to bridge the
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language barrier. Because of the large number of Latter-day Saint return missionaries in Utah, the state
is well equipped to close social and linguistic gaps.
Technological
The increase of “skilled consumers” as a result of people utilizing the Internet to plan their own travel
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will have an effect on how Utah should market itself. Travel websites, blogs, and other resources make
finding information about tourist destinations and planning vacations simple and have nearly eliminated
the need for travel agencies or professionals.25 Travelers can plan a trip that is more convenient and
specialized to their needs. Because of this, it will be effective for Utah to focus on Internet advertising
and helping to facilitate individuals in planning their own trips. Utah is already doing a good job
addressing this trend through their website and the travel planner capability found there.
Another impact of the Internet, and Internet capable handheld devices, is that tourists can obtain
information and make travel plans once already at a destination.26 For example, a European traveling
through Utah on his way to Las Vegas may see an interesting billboard or advertisement and be able to
quickly obtain more information. Finding ways to help individuals utilize technology while traveling will
ease the process of locating and visiting tourist sites in Utah. This will, in turn, encourage travelers to
make detours and stay an extra day.
Technological advancements in transcontinental flights will also increase the flow of tourism from
Europe to Utah. Delta Airlines has provided international travelers with a nonstop transatlantic flight
from Paris to Salt Lake City since the early 2000s. General advancements in aviation will help make this
flight more accessible and more pleasant. Boeing recently released the 787 Dreamliner. This aircraft
seats up to 290 passengers and can travel up to 8,000 miles, more than enough to cover the distance
from Salt Lake to Paris. The aircraft is capable of maintaining higher levels of humidity within the cabin
to make a less dry and stuffy, and creates a more pleasant travel experience. Additionally, a 20% greater
fuel efficiency than similarly sized aircraft will hopefully drive down ticket prices in the future.27
Although there are very few of these aircraft in operation due to its relative newness, Boeing has set a
higher standard for long distance airline travel. As these aircraft make a greater presence in the long
distance travel market flights, such as the one from Paris to Salt Lake City, will become cheaper and
more pleasant.
Environmental/Geographic
One environmental factor that could influence Europeans’ travel decisions is the impact that global
warming is having on natural winter ski resorts in Europe. It is possible that in major mountain resorts
there will be a need for artificial snow, which could cause marginal skiing areas to disappear and
perhaps increase interest in travel to Utah for skiing.28
Another effect of global warming and the “green” movement is consumers desire to be reassured of the
sustainability and environmental responsibility of certain tourist activities. Therefore, marketing will
have to focus on promoting the environmentally conscious aspects of tourist activities. The demand for
tourism in “unspoiled” environments may also increase as awareness of the finite nature of natural
areas increases.29
The population density of the European continent will also have an impact on tourism decisions.
Europe’s population density is more than four times than that of the United States.30 As a result, much
of Europe lacks open areas without civilization. Europeans may be drawn to the US, and Utah in
particular, because of the open and western landscape.
A geographic factor that could discourage Europeans from coming to Utah is the long distance between
Europe and Utah. However, the direct flight between Paris and Salt Lake City makes Utah a desirable
initial destination. When talking with Europeans, we discovered that most couldn’t distinguish the
borders and boundaries between states. Many Europeans did not readily recognize state names, with
the exceptions of California and New York, and instead identified more with cities and regions. The
implications of this “regional mindset” will be expounded upon further when we issue
recommendations for industry enhancement.
Demographic
Perhaps the most significant demographic change in Europe that will have an effect on tourism is the
ageing population. Life expectancy has been increasing and is the main driver behind the increase in the
older population.31 Senior age groups within Europe are expected to grow and will likely benefit from
early retirement schemes and well-financed pensions. Because they will have both the time and
resources to travel, this will most likely be a growing market. Due to the flexibility of time within this
demographic, off-season tourism may also have opportunities for growth.32 The ageing population may
also demand more health-related travel, increasing the demand for spa services and health tourism
products. Older generations also tend to be interested in cultural tourism and programs specifically
designed for the elderly traveler.33 Genealogical research, another activity that typically attracts an older
audience, will have an increasing return on investment in the future.
Another trend is the gradual rise in fertility. However, it is less clear how this could impact the tourism
industry, except that there may be a rise in demand for family travel.34 Utah maintains strong market
position to capitalize on this due to its family friendly atmosphere. Cities like Las Vegas and New York,
which advertise gambling and nightlife, will be less attractive to those with children.
Population growth in Europe is primarily fueled by immigration. Intra-EU mobility is also increasing, and
the latest Eurobarometer survey shows that “one in five of the EU-27 respondents has either worked, or
studied in another country, lived with a partner from another country or owns property abroad. One in
ten of the respondents plan to move to another Member State in the next ten years.”35 Because of the
mobility of the European population within Europe, travel within the EU will likely increase as people
travel to visit family, friends, and relatives. Intra-European travel may be a substitute for international
travel and cause a decrease in tourism to the United States.
SWOT Analysis
In order to gauge how the UOT can best capitalize on the existing trends identified in the PEST analysis
we utilized a basic SWOT analysis. By juxtaposing Europe’s trends with Utah’s strengths and weaknesses,
clear market suggestions can be made. The following chart provides a basic outline of the analysis:
Strengths
Strong historical and cultural heritage
Unique social culture
Outdoor and recreational opportunities
Opportunities
Weaknesses
International underexposure
Gambling/Liquor laws
Threats
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Possibility of interstate cooperation
More distinctive brand promotion
Tourism alternatives in the United States
Tourism alternatives in Europe
Financial constraints
Strengths
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Foreign Currencies
Utah’s primary strength lies in its unique historical background; it is one that no other state can provide.
The pioneer heritage is highly marketable to Europeans for two reasons: First, the legacy of Utah’s
pioneers is an embodiment of the ideals of the West. Historically, Mormon immigrants pushed further
westward than any of their contemporaries in order to settle uncharted territory. Our personal
interactions with Europeans across several market segments indicate that one of the primary
experiences travelers look for when they visit the United States is a feeling of separation from society in
untamed lands. The second reason lies in the reality that the pioneer story is as much a European story
as it is an American one. Nearly all of the 94,000 19th century LDS converts who immigrated from abroad
to cross the American wilderness and settle in the Salt Lake Valley first crossed the Atlantic Ocean. 36
Statistics from the UOT indicate that tourists from the United Kingdom, France, Germany and the
Netherlands visit Utah most often.37 These same statistics also show that a significant portion of
travelers surveyed from these market segments rank visiting historical and cultural heritage sights high
on the list of activities they engage in while visiting the United States.
Country of Origin
Interest in Historical Places
(in percentages)
Interest in Cultural Sites
(in percentages)
United Kingdom38
France39
Germany40
Netherlands41
42
55
48
53
25
37
42
28
The distinct cultural heritage and abundance of historically and culturally significant sites is one of the
great marketable strengths of Northern Utah. The data show that history and culture are important to
Europeans, and proper marketing of a shared European/American pioneer heritage will give European
visitors the chance for a historical, cultural, and genealogical experience that is both personal and
unique to Utah.
Unique Social Culture
Our team members’ conversations with European citizens indicate that the LDS church is a recognizable
religion that is often directly associated with Utah. LDS Temple Square is widely considered one of the
top tourist attractions in America, earning the 15th slot in Forbes Traveler’s “Top 25 U.S. Attractions.”
According to statistics from the LDS church, Temple Square gets traffic from 83 different countries and
has tours available in 42 different languages. 42 Temple Square is a venue where foreign tourists can feel
linguistically comfortable and experience the culture and heritage of Utah.
Outdoor and Recreational Opportunities
Last year, 71% of European travelers reported to the U.S. Department of Tourism that the primary
purpose of their trip was for leisure or recreation.43 Roughly a quarter of Europeans surveyed indicated
that they either visited or intended to visit national or state parks while in the U.S. Utah boasts five
national parks and forty-five state parks that would appeal to such travelers. The Office of Tourism has
already established a strong market position regarding outdoor offerings to foreign and domestic
visitors. 44
Weaknesses
International Underexposure
Our interaction with Europeans indicates that Utah is largely unrecognizable to a significant portion of
the populace. The state does not have a well-established brand abroad. Within much of the European
demographic, roughly 80% of the tourism market share is held by the states of New York, Florida,
California and Nevada; states that are home to sights that Europeans see as being distinctly American. If
Utah hopes to become one of these quintessential American states, it must capitalize primarily on its
cultural and historical strengths to align itself closely with the image of the American West.
Gambling and Liquor Laws
Utah’s strict gambling and liquor laws stem from its Mormon heritage. There is a possibility that these
laws could dissuade certain target markets from spending much time or money in the state, particularly
due to the prevalence of social drinking in Europe, and the affinity that many foreigners seem to have
for gambling.
Opportunities
Utilizing Interstate Cooperation
Geographically, Utah is fortunate to be close to many famous landmarks and parks, including
Yellowstone and the Grand Canyon. Because many Europeans have mandatory vacation time for
periods of about three weeks, an advertising campaign that tours through main sites in the “American
West” would give western states the opportunity to capitalize on one another’s strengths and benefit
from a synergistic increase in international tourism.
More Distinctive Brand Establishment
Because few states have actively promoted their brand in Europe, Utah’s primary weakness in marketing
abroad can also be a significant opportunity. Utah has the opportunity to pioneer the European market
and establish itself as the quintessential western state. Utah is uniquely equipped, through its historical
and cultural heritage and its large volume of bilingual residents, to bridge linguistic and cultural gaps and
connect more completely to European cultures.
Threats
Competition from Tourism Opportunities in Other States
Attractions and sites in other states and regions threaten Utah’s tourism industry indirectly. Media and
popular culture have seemed to draw the vacation aspirations of many Europeans either to the West
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Coast, such as California, or to larger cities and in the Eastern or Central United States. New York,
Chicago, and other large business centers were most often mentioned in the course of our
conversations.
More directly, Utah tourism faces competition from the marketing efforts of neighboring states that
have branded themselves in similar ways. Such states are competing for the interests of similar target
markets. Colorado, Montana, and Idaho all market themselves as natural paradises ideal for vacationing
families or outdoorsmen.45 However, as referenced in the “Opportunities” section, these competitive
threats can be mitigated by efforts to homogenize tourism marketing across the western U.S. region.
Tourism Alternatives in Europe
Another viable substitute to American travel is the option for Europeans to vacation in other European
countries. European states have an incredible appeal and diversity for tourists to see much closer to
their homes. Many Europeans have the option of seeing environments comparable to those in Utah
somewhere nearby in Europe for a fraction of the cost and time commitment.
Financial Constraints
Although the exchange rate vis-à-vis the dollar is favorable, the euro’s future is still looming in
uncertainty. This makes consumers less inclined to spend on leisure and luxury goods. As a testament to
this trend, in 2008 and 2009, Utah saw a drop in visitors from its four primary countries (U.K.,
Netherlands, France, and Germany). While visitation rates climbed the following year, the U.S. in general
and Utah specifically could stand to lose a significant amount of tourism from these countries if their
currency continues to deteriorate.
Target Market Analysis
Utah’s primary market in Europe consists of citizens that reside in the UK, Germany and France. This is
supported by the data present in the 2016 Tourism Forecast compiled by the US Office of Travel and
Tourism Industries. As shown in the chart below, these countries make up three of the top four overseas
countries that travel to the US46.
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Within these countries there are three main population segments that will create the bulk of the
market. These are: Traveling Professionals, Young and Childless Adults, and Empty Nesters.
Traveling Professionals
The demographic of the Traveling Professional is made up of 30-50 year olds, of which, 78% are male.
Although these people tend to spend the majority of their time working and attending conferences
while in Utah, in their free time they usually shop, eat in restaurants and visit cultural and heritage sites.
The main goods and services purchased by them are taxis, rental cars, hotel rooms and restaurants.47 48
The most effective way to market to this demographic is through information provided at the hotel or by
the organization with which they are traveling; and through in-flight magazines.




Interests and Lifestyle
o Working Professionals
o Engaging/Networking Opportunities
o Upscale Preferences
Mode of Interaction with location
o Proximity to Airport and Hotel
o Information at Hotel
o Going out with Colleagues
Target Goods and Services
o Taxis
o Rental Cars
o Art & Cultural Exhibits
o Shopping
o Dining
For additional information pertaining to Traveling Professionals see Appendix B
In our conversations with Europeans we found that traveling professionals are often unaware of
sightseeing or tourist opportunities available at their destination. One man who would be traveling to
Florida assumed that it would be very similar to New York. Although he said that he had plans to engage
in tourist activities during his free time, he did not know exactly what kinds of opportunities were there.
Traveling Professionals are in many ways a captive audience; the UOT does not need to spend additional Page | 15
funds to attract this market. Instead, focus should be placed on finding ways to facilitate in the planning
of tourist activities.
Young and Childless Adults*
The demographic of Young and Childless Adults is composed of both single and married adults ranging in
age from 20-30. This demographic can be further separated into two categories; one consisting of 18-24
year olds who are enrolled in post secondary education programs, such as a college or university or
recently graduated and are entering into a professional career. The remaining division is 25-30 year olds
who have begun their professional careers but have not yet started their families.
As students, we all fit into this demographic and found many similarities with our European
counterparts, making it easiest to talk with and relate to this market segment. For the most part, their
interests aligned closely with the interests of Americans of similar age and personality.



Interests and Lifestyle
o Adventurers
o Exciting Nightlife
o Low Budget options
Mode of Interaction with location
o Active Outdoor Activities
 Hiking, Biking, Mountain Climbing, Water Sports, and Camping
Target Goods and Services
o Public Transportation
o Budget Hotels and Rental Cars
o Campgrounds
o Day Tours of State Parks and Historic Sites
o Downtown Shopping Centers
o Dance Clubs and Bars
Prior to visiting Europe, we felt that marketing Utah as a family travel destination made a lot of sense
due to Utah’s family oriented environment. However, based on our experiences in Europe, we believe it
is more likely that young, relatively independent individuals will visit Utah rather than European families.
Our reasoning can be explained through the following example:
While traveling on a train across Switzerland, we met a Swiss couple vacationing for the weekend. They
were in their early to mid forties, the man worked in the banking industry and the woman was an
English teacher at a local school. The couple lived near Zurich, Switzerland, however, the husband was
Spanish and the wife was German. They had three children who were all in their early to mid teens and
living at home. While conversing, the woman mentioned that she has a sister who lives in New Mexico
*
For additional information pertaining to Young and Childless Adults see Appendix C
whom she has not seen for quite some time, but who she did not foresee visiting in the near future
because of the expense associated with traveling to the United States. She indicated that traveling with
three children for an extended period of time was not a possibility for her family, although they fit
comfortably within the upper middle class. This is just one of many examples that demonstrated to us
European travelers’ aversion to high cost travel. The couple did mention, however, that they foresee
themselves visiting the US after their children have all left home and they are more financially stable to
make the long trip.
We also interacted with several middle-aged Europeans with children who had previously traveled to
the United States as exchange students. Many of them expressed their intention to encourage their
children to have the same experience, but their unwillingness to travel to the US for leisure purposes as
a family.
Utah could certainly market towards a young adult group without family constraints and promote their
travel to the US as part of a study abroad program. However, we still feel that Northern Utah is best
suited to another demographic, whom we will call empty nesters.
Empty Nesters
This demographic consists of older, married couples whose children have grown up and moved away.
Generally, these individuals are between the ages of 50 and 60, although many of our recommendations
fit nicely with the more elderly, too. Empty nesters are characterized by their increased freedom and
better quality of life based on more money and more time. Currently, this demographic is growing
within Europe, a trend previously mentioned within our PEST analysis. We identify this market segment
as having several key characteristics that will determine their tourism choices.



Interests and Lifestyle
o Often retired, with fewer time constraints
o Disposable income
o Seeking new experiences
o Older, but still active and healthy
o Enjoy greater freedom
o Want to develop closer relationship with spouse
Mode of Interaction with location
o Bus tours or other organized programs
o Rental Cars
Target Goods and Services
o State Parks and Historic Sites
o Golfing
o Scenic Drives
o Arts and Culture
o Shopping
o Dining
Many empty nesters discover new interests, activities, and needs as they develop a new relationship
with their partner. This creates a great opportunity for marketers who can provide products and services
that match the needs of the empty nesters’ new stage of life.49 We feel that Northern Utah provides a
good match for their tourism needs based upon the following experiences and data:
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Our host while staying in Leysin, Switzerland, was Dominique Delasoie, a man about 60 years old who
along with his wife owns and manages several hotels, including the one where we stayed. While
speaking with Dominique, he told us about a trip he had recently made to the Western United States. He
flew to Salt Lake City and then rented motorcycles and toured the entire region from Yellowstone to Las
Vegas to San Francisco and back to Salt Lake City, spending a lot of time sightseeing within Utah.
Dominique mentioned that he had always wanted to visit the United States but had been unable to do
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so while raising a family. It was only after his children moved away that he had the disposable income
allowing him to afford the trip he had always dreamt of making.
Utah has many scenic drives and byways. In talking with older Europeans, we discovered that most are
interested in scenic landscapes and road trips. Many older Europeans also desire that the logistics of
travel be arranged for them, making bus tours an attractive option. This is a common method of touring
for older generations even within Europe. Upon multiple occasions while in Europe we saw seniors
traveling via organized tour bus. We feel that this is an activity that could really attract empty nesters.
We also talked with a winter sports enthusiast in Leysin, Switzerland, who owned a ski shop and had
traveled the world in pursuit of the best snow. When asked if he had heard of Utah, he replied, “Of
course, the Greatest Snow on Earth!” He was able to name several ski resorts in Utah. When asked if he
had been to Utah, he said yes, but not for skiing. His response was, “I do what every other European
does: a bus tour.” While this is just one example, we did talk with other older Europeans whom were
either already touring within Europe via bus tour or expressed interest in touring via organized bus
tours. Several bus tour companies within the United States offer tours that visit several of the national
parks within Utah. These specific tours and the potential for relationships with these companies will be
discussed in more detail in the recommendations portion of our paper.
We observed that European empty nesters are interested in cultural and historical attractions and
activities. According to the 2009 Eurobarometer, “cultural attractiveness is the second motivation for
Europeans (after value for money) when deciding on a holiday destination or accommodation.”50
Statistics from the US Department of Tourism indicate that within the four countries that visit Utah most
often (the UK, France, Germany and the Netherlands), visiting historical and cultural heritage sights
ranked high on the list of activities engaged in while visiting the US. In fact, visitation of national parks,
which much of the Utah marketing is currently centered around, ranked significantly lower.51 Based on
statistics from the Office of Tourism and Travel Industries, 55.5% of the international tourists to the US
in 2010 who were “cultural heritage visitors” were from Europe. Of the specific European countries of
residence, 16.7% of those came from the UK, followed by 8.9% for Germany and 7% for France.52 One
older man we spoke with in France had been to Utah multiple times and mentioned that his favorite
thing in Utah is the Golden Spike National Historic Site and visitors center. He liked the area for its
historical significance and unique Western appeal. We observed that amongst Europeans, the French
are especially keen on visiting museums and participating in cultural activities. We feel that empty
nesters would respond very well to historic monuments and museums within Utah. Utah has a unique
cultural heritage and background, providing museum experiences inaccessible to Europeans within
Europe and also unique from other states within the US. Temple Square alone provides visitors with
several different kinds of museums, and has the additional appeal of a multi-lingual staff.
Through conversation, we discovered that many Europeans are very attracted to the United States
because of its romantic link the to the Wild West and authentic western experiences. Untamed
landscapes, wide-open spaces, rustic mountains, and the iconic cowboy seem to awaken a desire to visit
America and see those things for themselves. Utah provides the culture, history, and terrain to provide
such experiences. Indeed, Utah could market itself as the authentic cowboy state. We witnessed this
European fascination with the Wild West when in Disneyland Paris. “Frontierland” and “Adventureland,”
themed areas of the Disneyland Park, both had a noticeably Western American feel and hearkened to
the idea of being “home on the range.” Germans are especially interested in the old West aspect of
American heritage and would respond positively to traditional Western-style experiences such as the
American West Heritage center and the “Festival of the American West.” The festival includes a Native
American Village, Mountain Man Rendezvous, Military Encampment, Pioneer Encampment, Cowboy
Page | 18
Poetry Gathering, Quilt Show, Western Art Show, World Championship Dutch Oven Cook-off, Horse
Parade, Historical Pageant, and lots of western entertainment. Tourists can relive the days of the Pony
Express and stop at the old stations to really get a feel for the “Wild West” or participate in a real cattle
drive at the Rockin' R Ranch in the town of Sandy. At the Hardware Ranch in Logan, Utah, tourists have
the opportunity to ride a horse drawn sleigh among a herd of Rocky Mountain elk.53 We feel that empty
nester Europeans would respond very well to marketing emphasizing these sorts of experiences, since
they are experiences unique to the Western United States and therefore cannot be substituted within
Europe or other non-US destinations.
Older generations of Europeans are interested in genealogy. When the United Kingdom published the
1901 England and Wales census, it was quickly taken offline due to the incredible demand. There was
great fear that the vastly exceeded capacity of the system could compromise the entire UK telephone
network.54 Within Utah, the pioneer story is as much a European story as it is an American one. Many of
the individuals who crossed the American wilderness to settle in the Salt Lake Valley first crossed the
Atlantic Ocean. History is important to Europeans and many will be interested to see how their
ancestors came to America to become cowboys. In fact, genealogical research is one of the fastest
growing hobbies around the world, and the Family History Library in Salt Lake City houses the largest
collection of genealogical records in the world; records from over 100 countries. All records are free to
the public and significant portions of them are European based. Each day, the museum attracts over
2,400 visitors, many of whom come from Europe.55 Utah also hosts annual global genealogical
conventions. Genealogical research can serve as an important selling point unique to Utah, and if
marketed correctly, could give Europeans a historical experience that is both European and unique to
Utah.
Empty nesters often enjoy shopping and staying at resorts or higher-end accommodations. This means
that they will likely be spending more money when visiting Utah than younger tourists who may be
attracted to camping options. Empty nesters are likely to find places such as Park City attractive for a
variety of reasons, including its broad range of summer activities that are a good match for older
travelers, such as golfing, the Olympic Park, outdoor concerts, and shopping.56 We met two empty
nester couples from the UK who were traveling together within France, visiting historical locations such
as Versailles. These couples both mentioned activities such as museums, golfing, and shopping. They
also expressed their love of travel and the increased ability they have to travel now that their children
have grown up. We strongly feel that it is these sorts of people that will be attracted to Utah’s unique
experiences.
Based on our observations and research of the empty nesters demographic, we feel that when
marketing to that demographic, Utah should emphasize the following activities, as outlined on their
travel website: golfing; arts, culture and history; National parks; State parks; Sightseeing; Golfing;
Events; National Monuments; and Scenic Byways. Again, we emphasize that such marketing should take
on a Western theme and should highlight the ease with which older people can participate in these
activities and the specific ways in which these leisure tourist activities match their demographic needs
and desires.
While much of the older demographic in Europe is definitely technologically savvy and Internet capable,
we feel that traditional means of advertising could be very effective. Such forms of advertising could
include large posters and advertisements on public transportation and in train and metro stations. We
also feel that television ads could reach empty nesters, however such a method of advertising could be
very expensive. Another good option for advertising would be in-flight magazines on major airlines. The
ads contained within these magazines could be specifically targeted at the empty nester demographic,
but would also be viewed by a wider audience and could thus have a broader impact.
Recommendations
Partnership with Bus Tour Companies
We recommend that Utah Office of Tourism create mutually beneficial relationships with existing
companies that provide bus tours in the western United States. We believe that certain routes that have
either the beginning or ending point in Salt Lake City would be excellent to target because tour
participants are more likely to be persuaded to “stay another day.” The following are a few companies
that we suggest looking into: Caravan Tours, Inc., Grand Circle Travel, and Elderhostel, Inc. These
companies have bus tours of the Western United States, and travel through Utah.
There is a route by Caravan Tours Inc. based out of North Dakota that has an 8-day route starting in
Rapid City, South Dakota and ends in Salt Lake City, Utah57. Grand Circle Travel hosts a bus tour,
“America’s Majestic National Parks,” which travels through South Dakota, Wyoming, Montana, Utah,
Arizona, and Colorado.58
This company also specifically targets older travelers and empty nesters. Road Scholar, a program
designed by Elderhostel, Inc., provides numerous tours and programs in Utah. These are also targeted
towards the older traveler, interested in learning and experiencing new things.59 We suggest that the
Utah Department of Tourism work to build relationships with these companies for the purpose of
garnering more stops within Utah and attracting more tourists. One possible relationship would be to
have bus tour companies hand out information on local activities which would encourage people to stay
an extra day in the surrounding area. A perfect example of this would be to distribute information
regarding the genealogical resources easily accessible in Salt Lake City (for more information refer to the
financial report under the heading genealogy). It may also be beneficial for the Utah Office of Tourism
to have links to these sorts of tours on their website, so that older travelers can see that there are
programs and activities within Utah that are suited to their needs.
Internet– Social Media & Advertisements
We recommend the department place a greater influence on the use of the internet- social media and
advertisements in their marketing efforts. The use of the Internet in travel planning is rapidly increasing
and is very important to citizens from all three countries. According to U.S. Department of Commerce
50% of the French visitors in 2010 used their personal computer for information when planning their
trip. Fifty-one percent of Germans and 48% of U.K. citizens also used their personal computers.60
The current Facebook page for the UOT is very difficult to find unless the user follows the link from the
Utah.travel webpage. We feel that Facebook is a free source of marketing that isn’t being fully utilized.
The UOT should revamp their efforts in social media by continually updating and adding new content to
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their Facebook account in order to reach the various market segments. An example of content to be
added includes: videos and photographs that showcase the state as well as the various activities for
tourists. Additionally, the Facebook feed should publish tweets from the UOT twitter account. These
tweets could be reminders of activities going on around the state, as well as brief informal
advertisements for interesting tourist sites and activities. Both Facebook, and twitter accounts have not
been utilized to their full potential and are free means by which the UOT can market to people around
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the world.
Another aspect of the Internet that should be utilized is online advertising. With target markets spread
out over a large geographic region, it is more economical to utilize Internet advertising rather than
traditional print or television campaigns. A single Internet advertisement can reach out to various
people in different locations at the same time and can also be tailored to fit the need of the department.
There are various companies, such as Google and Facebook, and methods from which the UOT can
choose from. Due to the limited budget of the UOT we have suggested the use of Facebook’s
advertisement program. Facebook gives the UOT the ability to advertise to specific audiences and the
advertiser can choose the specific target location, language, age, etc. in a marketing campaign.61 The
advertisements created would be simple, yet can visible and accessible to millions of people worldwide,
or just to specific individuals within the target market.*
Partnership with Travel Agencies
We recommend working with existing travel agencies within Europe in order to break into
advertisement areas that are traditionally inaccessible to the UOT. Older Europeans tend to enjoy
having their vacations planned for them. For example, a popular program that is sponsored by the
European Union called “European Senior Tourism” explains on their website, “You don’t need to worry
about a thing; we will make all the arrangements” a few of the things the program emphasizes are:
nature, food, culture, friendly service, and organized transportation and lodging.62 The only
requirements to participate in this program are to be citizens of the European Union and over the age of
55.
One specific agency we were able to find is the German DER Reisebüro group, which is a group of the
three largest travel agencies in Germany working together. The three individual agencies are “Dertour”
(which deals with individual travel component bookings), “Meier’s Weltreisen” (which focus on the
“long-haul” vacations), and the “ADAC Reisen” (which specialize in self-drive travels). Between the DER
Reisebüro Group and another group known as Atlas Resien, they cover the second largest business
segment in Germany.63 The UOT can approach the DER group with the proposal to create a travel
package focused on Utah and in exchange, the UOT would pay for the advertisement space for that
vacation package. The advertisements could then appear in European In-Flight Magazines, RyanAir
Boarding passes, and Metro Stations.
We would suggest that targeting people who travel is a logical choice for marketing campaigns, and we
would advise the UOT to use the partnership with European travel agencies in order to work with
European airlines and better approach this group. One type of advertisement that could be used
through this method is buying a one-page advertising spread in the airline’s magazine. Because there
are many airlines in Europe, we suggest focusing on the main European airlines and/or the airlines that
*
Specifics figures for a Facebook advertisement campaign are included in the financial report
under the subheading Facebook.
are important to the three countries of our focus (France, United Kingdom, and German). The following
is a list of possible airlines and the name of their in-flight magazine:64
European Airline
In-Flight Magazine Title
Air Berlin
Air Berlin Magazine
Air France
Air France Magazine
Air Malta
Sky Life
British Airways
High Life
Easy Jet
Easy Jet In-Flight
Lufthansa
Lufthansa Magazine
RyanAir
RyanAir Magazine
RyanAir is particularly important because of the large number of passengers it transports each year.
Each year the airline services 73.5 million passengers, has over 1,400 daily flights, travels to 27
countries, and visits 160 destinations within Europe. Although RyanAir flights are known to be
inexpensive (the average flight costs $53), the average passenger earns nearly double the national
salary. Besides the in-flight RyanAir Magazine, we suggest buying advertising space on the boarding
ticket which is printed at home before flying. Buying advertising space will be more feasible and cost
effective than obtaining a page in an in-flight magazine.65*
Working with foreign travel agencies may also allow the UOT to purchase space for advertisement
campaigns in large European cities (Paris, Berlin, Hamburg, London, etc.). This is because many billboard
advertisements our student teams found in metro cars and stations were vacation package ads
produced by travel agencies, rather than general advertisements for a specific location. This would have
huge advertising power, while so many people use the public transit systems in Europe. For example,
about 4.5 million people ride the Paris metro system each day to reach popular sites like the Eiffel
Tower, Notre Dame Cathedral, the Arc de Triumph and the Louvre66.
On a final note, we recommend the design of the advertising to focus on a western theme, and suggest
also putting information about the Delta direct flight from Paris, France to show that direct access
through flight is available to Europeans.
Financial Analysis for the International Marketing Budget
From our research we see that the Utah Office of Tourism budget for 2012 is $7,000,000. This is an
increase of $500,000 over the 2011 budget.67 We propose that this $500,000 increase be utilized in
conjunction with a supplemental $100,000 that is comprised from a number of cuts from existing funds.
We propose that this total $600,000 be dedicated to increasing tourism in the European Market. We
propose these funds be used in Facebook advertising, on a few select European airlines and in
promoting genealogy work at Temple Square
*
More information on RyanAir advertisement fees is located in the financial report under the
heading RyanAir.
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Beginning predictions state that a Return on Investment (ROI) of 175 will be achieved the first year
throughout all of our recommendations. This is down slightly from other current department of tourism
advertising ventures,68 but it is our belief that our proposed strategies to the European market will see
an ROI of 225 by 2016.
Our proposal of the $600,000 is as follows:
Genealogy
Genealogy is one of the fastest growing hobbies in the world. Due to this large demand and the everincreasing global interest we propose that the Utah Office of Tourism focus a specific effort on
increasing tourism visits to Utah because of genealogy. Equally as important, we believe that this tactic
could be effectively used in keeping tourists in Utah for an extra few days. We believe that $50,000
should be allocated for this project. A comprehensive plan should be established that splits the funds
between genealogy conferences in Salt Lake and advertising on genealogy sites in conjunction with
specific magazine publications.
Expenses
Once this plan has been effectively created we feel strongly that a partnership with the Church of Jesus
Christ of Latter-day Saints would be the best way to maximize the sustainability and effectiveness of the
campaign. We propose that a presentation be made to the Church with a proposal that a partnership be
established and the LDS Church ultimately matching the UOT funds. Together with these supplemental
funds would bring the total budget for genealogy tourism to $100,000. Of this $100,000 we propose that
$20,000 be spent on advertising in publications and on the bus tours entering the state. Another
$20,000 would be spent on advertisements on Internet sites such as ancestory.com. $5,000 would be
dedicated to booths at the annual Salt Lake Institute of Genealogy Conference. The remaining $5,000 is
left for the managerial costs associated with this exciting new venture.
Projections
This partnership with the Church of Jesus Christ of Latter-day Saints coupled with smart advertising will
attract a whole new demographic to the state. These people will bring tourist-spending dollars with
them. This program will also benefit regional, national, and specifically in our case, international visitors
thus benefiting the Utah Office of Tourism as a whole as well as the entire tourism industry in the state.
We feel that there is a wealth of opportunity that exists in this realm and we envision an increased
emphasis on this special Utah niche in tourism in the future. We projected that the first year this
venture will produce an ROI of 175, which by your own measure is a very healthy ROI. We do not
believe that the genealogy venture we propose will grow at a rate of our other ventures, and project a
ROI of 195 in five years. Although the ROI for this venture may not increase as quickly as our other
advertising ventures we still definitely believe this is a supporting venture that will pay dividends long
into the future.
Facebook
We propose a $200,000 budget for the first year in Facebook advertising. The projected ROI for the first
year is 200. We realize this is an optimistic number but feel like it is in line with your 2010-2011winter
report that stated that the ROI for the ski-season advertising was just above 200.69 While 200 is a high
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number we do not think it is unrealistic, and actually predict that the ROI for our Facebook venture will
by 250 by 2016.
Expenses
After much research, we believe that the best way to utilize the $200,000 Facebook budget is to use the Page | 23
pay per click Facebook marketing approach. This is a process in which a company or organization is
charged according to the number of clicks on a specific advertisement. This price per click will vary a
great deal depending on the chosen target audience and time of day. This is due to the overall process
by which different organizations submit bids for specific times and demographics. The Utah Office of
Tourism would bid against competitors that are looking to target similar target markets during similar
time slots. The price charged can vary anywhere from $.07- $1.5.70 We believe that, on average, the
Utah Office of Tourism can expect to pay approximately $.40 per click.
A proposed budget allotment of $200,000 would allow you to spend $500 per day on this marketing
strategy. This figure allows for roughly 13,000 daily visitors that could potential click on the
advertisement. A daily summation of this number would result in 4,745,000 potential tourists seeing
the advertisement each year. The yearly expenses of this strategy would add up to $182,500. This
would therefore leave $17,500 for managerial and maintenance costs.
We suggest hiring a local Utah advertising company to manage the account. We spoke to one company
“clickable” that specializes in Facebook advertising. They use algorithms to figure out when a specific
target market is using Facebook most heavily, what time frames are the cheapest, and decide (with you)
what the best strategy would be to advertise to the target markets. They then take care of all the
bidding and managing of the account. After providing the rep with a brief explanation of what the Utah
Office of Tourism would be seeking he said that “clickable” would charge roughly $1000 a month to
manage the account.71 The remaining $7,000 would be used to supplement the operation and offset
any unforeseen costs that may arise.
Projections
As mentioned, the projected ROI for the first year would be 175. However, within the first five years we
expect that number to go up, and by 2016 we believe that the projected ROI will be closer to 250. This
prediction is not an empty projection, and after researching other similar highly successful Facebook
advertising campaigns72 we believe that this is actually quite possible. The more ‘likes’ and comments
made on the advertisement page, the more traffic it will receive. If designed correctly, with links to
YouTube videos, other informational websites, and a blog we believe both the advertisement and
Facebook page could go “viral”. If this were to happen, we believe our prediction of an ROI of 250 by
2016 would become a reality.
We further believe we can reach this ROI by utilizing social media tools in a method illustrated by KFC.
Before discussing their methods we would like to emphasize the point that “customers who were
exposed exclusively to social media ads for KFC were seven times more likely to spend more than the
average consumer.”73 The goals KFC used were to:



Connect and engage with KFC followers
Cultivate relationships
Respond to any and every inquiry

Have fun (e.g. asking funny questions on the Facebook page)
These goals may seem somewhat vague, but through allowing creativity in restaurant/consumer
interaction they found remarkable success. KFC found fans were excited about initiating conversations
as well as responding to the business’s questions. Fans would also upload pictures of them with KFC
products, increasing peer advertising.74
We do not expect Utah to have the same initial success as KFC, as this is a state rather than a farreaching global dining chain. However, we could conservatively expect those consumers who interact
with Facebook to spend three to four times more than their non-Facebook counterparts. This would
arise because of an increase in attention and excitement from photos, conversations, and Facebook
offers. The projected social media success will greatly benefit the international tourist and they will have
a better idea about Utah and what activities are there once they arrive.
In-Flight Advertising
Not only will advertising on European airlines be effective in increasing tourism in Utah, but according to
our projections, it will also be cost-effective. We spoke to a representative at Inter Air Media named
Kyle Ljichi, who was able to send our group a PowerPoint describing the cost structure of advertising on
RyanAir (We chose RyanAir as our primary example because we were able to locate the most
information on them and because Kyle noted that other comparable airlines, such as Air France, would
have similar prices)
Kyle noted that our In-Flight advertising idea was a unique request among the states in the United
States. He stated that he loved the originality of the idea believes that it could be very successful and
cost-effective. With the help of Kyle, we decided that the best way of advertising would be to use
RyanAir’s CPM advertising scheme. The CPM model in this instance is based on volume, or the number
of boarding passes (online advertising). This marketing strategy would involve advertising on the online
boarding passes that are printed off. Other forms of advertising such as utilizing the In-Flight magazine,
or online site advertising could also be seen as beneficial. However, due to the expensive nature of
these mediums we recommend that the Utah Office of Tourism focus on the cost-effective boarding
pass alternative. We do believe that if expanded increased funds can be secured in the future that the
UOT explore these other airline advertisements immediately for we see them as very beneficial means
of attracting tourist to Utah.
There are two advantages to using the online boarding passes as the means of advertising: One, RyanAir
allows their customers to target a specific group— for example, you could target 40 year old men flying
from France to Barcelona during Christmas time;75 Second, it is by far the most cost-effective advertising
approach that would allow the UOT to utilize the vast transportation system that exists within Europe.
Expenses
We estimate that using the CPM model and a budget of $300,000 that the UOT would be able to
custom-tailor Utah-centric advertising on approximately 10,000 tickets per year. This number can
potentially vary depending on the time of year and your specific target market. We believe that the
average spot would be about $30 per advertisement (these are rough estimates and we are waiting to
hear back from a RyanAir representative who will be providing us with more information). Advertising
on these 10,000 boarding passes will total $250,000 leaving you with $50,000 to cover costs incurred
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from managing and oversight of the venture. Kyle from Inter Air Media told us that he believes this
allocation would be sufficient to get started the campaign started.76
Projections
We recognize this is a unique venture that we are proposing, but we also strongly believe this venture
has the most upside for the UOT. With a beginning ROI of 175, we project that within 5 years that the
ROI will be closer to 225. Due to the prevalence of the Internet in today’s age, everything is connected
via the Internet and many travelers use printable boarding passes. We suggest that as travelers wait in
airports around Europe they will glance down at their boarding passes, they see the advertisement for
Utah, be directed to the Utah Facebook page, see the page and ‘like’ it, and eventually ending up
traveling to Utah. This is a silly example, but illustrates that we expect this strategy to catch fire in the
next five years. The ROI will surpass 225 in five years and a will provide a noticeable influx of
international tourists in Utah.
Proposed Cuts
After a thorough analysis of the budget information for the office of tourism in 2011,77 we believe that
there needs to cuts and a reallocation of funds in order to acquire the extra $150,000 not covered by
the increase in state funds needed to fund our proposals. We propose that this amount should come
out of the $118,000 budgeted for the state travel fund, $65,000 budgeted for welcome centers, and the
majority of it coming from the $2,118,700 budgeted for personal services.78 This was a hard decision,
especially with the limited knowledge we had concerning what exactly the personal expense account
consisted of, the importance of the welcome centers, and how well the travel fund is utilized. However,
cuts needed to be made and these departments seemed to be the most over funded.
Potential Problems
The main concern we have with our proposed $600,000 investment is in the mismanagement of funds.
As a group we have carefully chosen these advertising techniques and believe they will be extremely
productive in bringing more Europeans to Utah. However, if the small amount of money we have to
work with is not utilized properly we could miss out—not only on future tourists but also in future
funding. That is why we suggested spending a little extra money at the beginning that would allow
professionals to take care of the day-to-day operations. In order to ensure that funds are being properly
managed we also suggest that an internal UOT manager closely follow the development of the various
strategies and we have budgeted accordingly.
Through our examination of several different sets of financial records from the department of tourism
we noticed that the ROI, for all ventures, never dropped below 130. This number was used as a
benchmark and we would suggest that if any of our proposals drop below an ROI of 130 for the year that
it be scrapped. We recognize that this possibility exists, however we do not foresee this happening and
stand by our projected ROI’s to be realistic.
We believe that the Utah Office of Tourism has great opportunities within reach. Following our outlined
budget coupled with exceptional management of funds and resources the Utah Office of Tourism will
generate increased interest in Utah tourism that will translate into tourist dollars for the state.
Page | 25
Conclusion
Although international travelers represent only a small portion of all tourists Utah attracts, and
Europeans make up an even smaller percentage of that number, we believe there is a lot of potential for
growth within the European market. Particularly, focusing Northern Utah’s marketing efforts upon
Page | 26
empty nesters will provide rich returns. With Northern Utah’s scenic attractions and most of our state’s
richest historical and cultural sites, this region is best suited to an older demographic. Continuing to
focus on countries whose populations already visit Utah, namely the UK, France, and Germany, we
believe we can continue to increase tourism numbers and hopefully begin attracting visitors from other
countries with high disposable incomes such as Switzerland, Austria, and Sweden. If the Utah Office of
Tourism can continue capitalizing upon Utah’s strengths, including our cultural and historical sites and
our rich landscapes, Utah will enjoy a competitive advantage in its efforts to attract a larger number of
European tourists.
1
2010: Sector Profile: Business. U.S. Department of Commerce Office of Travel and Tourism Industries,
2011. PDF.
2
Europeans and Tourism - Autumn 2009 Analytical Report. European Commission, Oct. 2009. PDF.
3
Crayford, Tracey. Message to Utah Office of Tourism. 9 November 2011. E-mail.
4
“2010-2011 Winter Advertising Effectiveness”. Utah Office of Tourism. Jun 2011. 10 Nov 2011.
http://travel.utah.gov/research_and_planning/documents/2010-2011WinterAdvertisingEffectivenessPublic.pdf
5
"New billboards across state welcome visitors to Utah." Ksl.com. Web. 10 Nov. 2011.
<http://www.ksl.com/?nid=148>.
6
"Best of America: Readers' Choice 2010." Reader’s Digest. Web. 10 Nov. 2011.
<http://www.rd.com/slideshows/best-of-america-readers-choice-2010/?v=print>.
7
Utah Office of Tourism. "2010 Utah Tourism at a Glance." Utah Life Elevated . Salt Lake: Governor's
Office, 2010.
8
House, Dawn. Utah aims high with new slogan for tourists. 10 March 2006. 08 November 2011
<http://www.sltrib.com/utah/ci_3588108>.
9
StruckAxiom. Utah Office of Tourism. n.d. 08 November 2011 <http://struckaxiom.com/work/casestudies-detail/utah-office-of-tourism>.
10
Wallace, Brice. "Colorful welcome billboards tout state's diverse tourism options." Deseret News.
Deseret Digital Media, 01 Jul 2008. Web. 18 Nov 2011.
<http://www.deseretnews.com/article/700239425/Colorful-welcome-billboards-tout-states-diversetourism-options.html>.
11
"Nonstop Flight from Salt Lake to Paris Begins Today." Ksl.com. Web. 10 Nov. 2011.
<http://www.ksl.com/?nid=148>.
12
Meeting with the Utah Office of Tourism at Utah State University. September 2011.
13
Utah Office of Tourism. "2010 Utah Tourism at a Glance." Utah Life Elevated . Salt Lake: Governor's
Office, 2010.
14
Email from Jessica Kunzer to Caleb Gorringe. (See Appendix D)
15
"Two Ski Resorts Open Today." Ksl.com. Web. 10 Nov. 2011. <http://www.ksl.com/?nid=148>.
16
US Department of State. Visa Waiver Program (VWP). 2011. 8 Nov 2011.
<http://travel.state.gov/visa/temp/without/without_1990.html#countries>.
17
Europa. For EU Citizens. 2011. 8 Nov 2011 <http://europa.eu/travel/doc/index_en.htm >.
European Commission. News. 2011. 8 Nov 2011
18
Europa. Unemployment Statistics. Sep 2011. 8 Nov 201. <http://epp.eurostat.ec.europa.eu/
statistics_explained/index.php/Unemployment_ statistics>.
19
The Economist. "Be Afraid." The Economist Sep 29 (2011).
20
World Salaries. Total Personal Average Income-International Comparison. 17 Nov 2011
<http://www.worldsalaries.org/total-personal-income.shtml>
21
Weiner, Eric. Memo to U.S. workers: Take a break. 14 Aug 2011. 8 Nov 2011
<http://articles.latimes.com/2011/aug/14/opinion/la-oe-weiner-vacations-20110814>.
22
Pawlowski, A. Why is America the 'no-vacation nation'? 23 May 2011. 8 Nov 2011
<http://articles.cnn.com/2011-05-23/travel/vacation.in.america_1_vacation-germans-longholiday?_s=PM:TRAVEL>.
23
Office of Travel and Tourism Industries. 2010 Market Profile: United Kingdom. 17 Nov 2011
< http://tinet.ita.doc.gov/outreachpages/download_data_table/2010_UK_Market_Profile.pdf>
24
Office of Travel and Tourism Industries. 2010 Market Profile: Germany. 17 Nov 2011
< http://tinet.ita.doc.gov/outreachpages/download_data_table/2010_Germany_Market_Profile.pdf>
25
European Travel Commission. Tourism Trends for Europe. European Travel Commission. Brussels:
European Travel Commission, 2006. Page 6.
26
Ibid., 7.
27
Boeing. Boeing 787 Dreamliner Will Provide New Solutions for Airlines, Passengers. 17 Nov 2011.
< http://www.boeing.com/commercial/787family/background.html>
28
European Travel Commission. Tourism Trends for Europe. European Travel Commission. Brussels:
European Travel Commission, 2006. Page 3.
29
Ibid.
30
Internet Geography. Population. 2008. 8 Nov 2011
<http://www.geography.learnontheinternet.co.uk/topics/popn1.html#density>.
31
European Commission. News. 2011. 8 Nov 2011. <http://ec.europa.eu/social/
main.jsp?langId=en&catId=502&furtherNews=yes&limit=no>.
32
European Travel Commission. Tourism Trends for Europe. European Travel Commission. Brussels:
European Travel Commission, 2006. Page 2.
33
Ibid., 3.
34
European Commission. News. 2011. 8 Nov 2011. <http://ec.europa.eu/social/
main.jsp?langId=en&catId=502&furtherNews=yes&limit=no>.
35
Ibid.
36
"Mormon Pioneer Overland Travel, 1847-1868." 2011. Web. 18 Nov 2011.
<http://uvpafug.org/classes/UVPAFUG-handouts-LDSGenealogyLinks.pdf>.
37
Utah Office of Tourism. 2010 Utah Tourism at a Glance. 17 Nov 2011.
< http://travel.utah.gov/research_and_planning/documents/TourismataGlance20101.pdf>
38
http://tinet.ita.doc.gov/outreachpages/download_data_table/2010_UK_Market_Profile.pdf
39
http://tinet.ita.doc.gov/outreachpages/download_data_table/2010_France_Market_Profile.pdf
40
http://tinet.ita.doc.gov/outreachpages/download_data_table/2010_Germany_Market_Profile.pdf
41
http://tinet.ita.doc.gov/outreachpages/download_data_table/2010_Netherlands_Market_Profile.pdf
42
"Current languages available for Temple Square tours." Mormon Tabernacle Choir. Intellectual
Reserve, 2010. Web. 18 Nov 2011.
<http://mormontabernaclechoir.org/pages/TempleSquareLanguages>.
43
US Department of Commerce. "2010 Market Profile: Europe." Office of Tourism and Travel Industries.
International Trade Administration, 2010. Web. 18 Nov 2011.
<http://tinet.ita.doc.gov/outreachpages/download_data_table/2010_Europe_Market_Profile.pdf>.
44
"Utah National Parks." Utah.com. 2011. Web. 18 Nov 2011. <http://www.utah.com/nationalparks/>.
Page | 27
45
http://visitmt.com/, http://www.colorado.com/, http://www.visitidaho.org/
Forecast of International Travelers to the United States by Top Origin Countries. U.S. Department of
Commerce Office of Travel and Tourism Industries, 2011. PDF.
47
"International Visitation in the United States." Welcome to Tourism Industries. Web. 17 Nov. 2011.
<http://tinet.ita.doc.gov/outreachpages/inbound.general_information.inbound_
Page | 28
overview.html>.
48
2010: Sector Profile: Business. U.S. Department of Commerce Office of Travel and Tourism Industries,
2011. PDF.
49
"Boomers’ Empty Nest Lifestyle an Opportunity for Marketers." Marketing Charts. Watershed
Publishing, 16 Jan 2008. Web. 17 Nov 2011. <http://www.marketingcharts.com/direct/boomersempty-nest-lifestyle-an-opportunity-for-marketers-3079/>.
50
"Quantitative Eurobarometer study on the Europeans, culture and cultural values." European
Commission Culture. European Commission, 2009. Web. 18 Nov 2011.
<http://ec.europa.eu/culture/key-documents/doc956_en.htm>.
51
US Department of Commerce. "Sector Profile: Cultural Heritage Traveler." Office of Tourism and Travel
Industries. International Trade Administration, 2010. Web. 17 Nov 2011.
<http://www.tinet.ita.doc.gov/outreachpages/inbound.general_information.inbound_overview.html>
. Page 4
52
Ibid.
53
“Things To Do in Utah – Northern Region Attractions.” Software Solutions, 2011.
<http://www.thingstodo.com/states/UT/regions/NO/index.htm>.
54
Powell, Kimberly. "Grow Your Family Tree in Salt Lake City." Genealogy. About.com, 2011. Web. 17
Nov 2011. <http://genealogy.about.com/library/weekly/aa011502a.htm>.
55
Ibid.
56
"Park City Utah Area." Utah.com, 2011. Web. 17 Nov 2011. <http://www.utah.com/parkcity/>.
57
"Mount Rushmore Tours and Yellowstone National Park Tours." Caravan.com. Caravan Tours Inc.,
2010. Web. <http://www.caravan.com/tour/usa-mount-rushmore>.
58
"National Park Tour, Tour American West, See Zion Park (2012)." Grand Circle Travel. 2011. Web.
<http://www.gct.com/Trips/2012/Americas-Majestic-National-Parks-2012/Trip-and-Air-Details/ItsIncluded.aspx#top>.
59
"Road Scholar - Adventures in Lifelong Learning." Road Scholar. Web.
<http://www.roadscholar.org/programs/search_res.asp?Type=A&StateCode=UT>.
60
International Visitation in the United States. (n.d.). Retrieved November 2011, 2011, from ITA Office of
Travel & Tourism Industries:
http://tinet.ita.doc.gov/outreachpages/download_data_table/2010_France_Market_Profile.pdf
61
Customer Service. Phone Interview. facebook.clickable.com/Free Trial. 9 November 2011
62
"European Senior Tourism." Segittur, 2008. Web. 14 Nov. 2011.
<http://www.europeseniortourism.eu/en/index.html>.
63
"Deutsches Reisebüro (DER) Group: Where Travel Is a Way of Life." Tourism in Germany. German
National Tourist Board, 2011. Web. 14 Nov. 2011. <http://www.germany.travel/en/germany/aboutus/partners/tourism-companies/deutsches-reisebuero-gmbh-der.html>.
64
"Airline Inflight Magazines." Itravelnet.com Travel Directory - International Travel Sites Portal |
International Travel Sites Portal. 2011. Web. 17 Nov. 2011.
<http://www.itravelnet.com/publications/inflightmagazines.html>.
65
PowerPoint available upon request: Lyichi, Kyle. (2011, November 16). “RyanAir: Prepared for Utah
State University.”
66
http://geography.about.com/od/urbaneconomicgeography/a/Busiest-Subways.htm
46
67
“Compendium of Budget Information for the 2011 General Session: the Office of Tourism.” 09
November 2011 < http://le.utah.gov/lfa/reports/cobi2011/LI_CLA.htm>
68
Lee, Jasen. “Utah tourism ads pay off despite slimmer budget.” 15 Jan 2010. 09 November 2011
69
Utah Office of Tourism. “2010-2011 Winter Advertising Effectiveness.” June 2011. 9 November 2011
70
"Advertising | Facebook." Welcome to Facebook - Log In, Sign Up or Learn More. Facebook, 2011.
Page | 29
Web. 17 Nov. 2011. <http://www.facebook.com/advertising/?campaign_id=194417723019>.
71
Customer Service. Phone Interview. facebook.clickable.com/Free Trial. 9 November 2011
72
Gallaher, Julie. “Facebook Advertising Pays off.” n.d. 09 November 2011
73
Eckhouse, John. Social Media ROI: Ads Provide a Big Return for KFC. The Realtime Report. Sep 7, 2011.
Web Nov 17, 2011. <http://therealtimereport.com/2011/09/07/social-media-roi-ads-provide-a-bigreturn-for-kfc/>
74
Eckhouse, John. Social Media ROI: Ads Provide a Big Return for KFC. The Realtime Report. Sep 7, 2011.
Web Nov 17, 2011. <http://therealtimereport.com/2011/09/07/social-media-roi-ads-provide-a-bigreturn-for-kfc/>
75
Ljichi, Kyle. “Prepared for Utah State University.” PDF. November 16 2011. November 16 2011. (See
Appendix E)
76
Ibid.
77
“Compendium of Budget Information for the 2011 General Session: the Office of Tourism.” 09
November 2011 < http://le.utah.gov/lfa/reports/cobi2011/LI_CLA.htm>
78
Ibid.