Exploring New Markets: The Gay & Lesbian Opportunity
By Darrell Schuurman Co-Founder, Canadian Gay & Lesbian Chamber of Commerce | October 28, 2008
The hotel industry, and the tourism industry in general, has changed dramatically over the last several years. Everything from war, terrorism, the economy, the fluctuating exchange rates, and a variety of other negative travel influencers have made the industry much more volatile and challenging than ever before. The fight for market share has gotten tougher, and hotels have started to see the need to find new ways to grow that diminishing share.
So in an industry that remains increasingly competitive, how do you prevent a decrease in your market share, and what opportunities are there for you to grow your market share? One way is through diversification in your target markets. Hoteliers and the tourism industry need to look at alternative sources to tap into and to draw on.
The gay and lesbian market is one market that hotels and other tourism-based companies have for too long overlooked, or simply chose to ignore. But can the industry continue to ignore this market? Can you? The simple answer, in my opinion, is no. And why would you want to?
Most hoteliers understand the importance of diversifying their markets, but many aren't completely sold on the gay and lesbian market. I've identified three main reasons for why you and your hotel should choose to target this market.
1. Size of the Market
According to San Francisco based company Community Marketing Inc (www.communitymarketinginc.com), the US gay and lesbian travel market is worth an estimated $54.1 billion per year, or approximately 10% of the total US travel industry. Research shows that this market has a higher discretionary income, with 76% having household incomes above the national average. Not only do they have higher discretionary income, but they also tend to spend more when travelling. Is that really a market you want to continue to ignore?