Mr. Schuurman

Diversity Issues

Gay Marketing: Case Example - Reaching the Gay & Lesbian Travel Market

By Darrell Schuurman, Co-Founder, Canadian Gay & Lesbian Chamber of Commerce

Hotels are facing ever increasing competition and challenges, and must continually identify new ways to grow market share. For the past few months I've told you about the opportunities that lie with targeting the gay and lesbian travel market, and how to be successful in your efforts. I'm sure you've been thinking how interesting it all was, but wondering if it works. So this issue I've decided to let you see first hand the process, experiences, and results a small luxury, three property hotel company went through to reach the gay and lesbian travel market.

In 1997, three landmark hotels in the small historic town of Niagara-on-the-Lake, Ontario joined to create Vintage Inns. Now known as Vintage Hotels, it is a collection of three CAA/AAA four-diamond hotels offering a total of 374 guest rooms, over 30,000 square feet of meeting space, three four-diamond restaurants, and two spas. Over the past nine years, Vintage Hotels has grown to offer some of the most spectacular hotel properties in Ontario, and has helped the Niagara region become a top tourist destination.

In 2005, Vintage Hotels decided to look at targeting the gay and lesbian travel market. After extensive research and discussions with organizations like the Canadian Tourism Commission and other industry resources, they soon realized that this market was worth reaching out to. According to Colin Sines, Director of Marketing for Vintage Hotels, "it is a market that has discretionary income, that takes more than one trip per year, has estimated spending power of $540 billion, is an affluent and loyal affinity group, and that 84% of gay and lesbian travelers hold valid passports (compared to the national average of 29%)." But even more importantly than the fact that it is an attractive market, it is a natural fit for Vintage Hotels. From their market research, Vintage Hotels knew that their properties were what the gay and lesbian traveller demanded. As a result, in November of 2005, Vintage Hotels began to actively campaign to reach the gay and lesbian traveller.

In their efforts over the past year, Vintage Hotels has realized the importance of planning and approaching this new market strategically. Vintage Hotels has demonstrated this in the products they serve and the activities done to reach the market.

Product, Packaging, and Partnerships

Vintage Hotels understood the importance of having gay and lesbian specific product available for this market. Through their research, they knew what the market demanded, and saw opportunity. Vintage Hotels was able to use their existing services to create product specific for the gay and lesbian travel market. They leveraged their recently renovated 13,000-square-foot spa (with a wide selection of services to "soothe body and soul") to offer spa packages targeted to gay and lesbian visitors.

Externally, Vintage Hotels worked with the world-renowned Shaw Festival to create and offer a package that spoke to the theatre lovers. Combining products that the research showed the market demanded, they produced a package that included two theatre tickets to a high calibre production and one night in one of their luxurious guestrooms.

The role of partnerships is crucial when targeting the gay and lesbian travel market. Vintage Hotels recognizes this, and has maximized partnerships to their advantage. By ensuring their strategies are aligned, Vintage Hotels has partnered both with their local DMO as well as other local industry to share resources and increase exposure within this market.

Execution

In their efforts to reach the market, Vintage Hotels implemented various promotional, partner relations, and community involvement tactics.

For their promotional activities, Vintage Hotels realized the importance of showing commitment to the market, while speaking directly to them. In preparation, they had all their properties approved by both Travel Alternative Group (TAG) and Travel Gay Canada (TGC), which allowed them to be listed on those organizations' websites as "Gay Friendly" accommodations; this also allowed Vintage Hotels to display the TAG and TGC logos on their own website. They also took specific gay and lesbian images for use in their marketing efforts, extremely valuable in attracting the market and building their trust.

To date, Vintage Hotels has done a targeted email blast to 10,000 gay and lesbian travellers in the North East States, promoted their Shaw Festival package on travelgaycanada.com, advertised in Gay Canada Travel guide, and advertised in Toronto's Pride edition of Now Magazine. For 2007, they have planned on increasing their electronic marketing efforts.

Enhancing relations with tour operators and travel agents, as well as DMOs, is vital in increasing a hotel's reach into the gay and lesbian travel market. Through membership in the International Gay & Lesbian Travel Association (IGLTA), Vintage Hotels now has access to hundreds of travel agents and tour operators that are committed to serving this market. Their local DMO, Tourism Niagara, has recently formed a gay and lesbian committee to focus on attracting this market to the region, and Vintage Hotels is a member.

Recognizing the importance of community involvement, Vintage Hotels has become active in both the local and regional gay and lesbian business groups. Provincially, they are members of the Ontario Gay & Lesbian Chamber of Commerce. Not only does this provide a great source of information and insight into marketing to the gay traveller, it also shows to the community itself that Vintage Hotels is committed to the market.

One of the key ingredients I stress to businesses that are contemplating targeting the gay and lesbian travel market is to ensure that their property is market-ready. Are the staff prepared to serve gay couples? Can their property ensure the expectations of the gay traveler are met? For Vintage Hotels, their team goes through training programs where employees understand what diversity is and how it applies in the workplace. Although they don't specifically focus on gay and lesbian diversity training, their staff are well prepared for serving all markets. Vintage Hotels did ensure that they highlighted to all staff that the properties were going to be directly marketing to the market, so the team was fully aware of this direction and therefore ready to accept the gay and lesbian market and any special requirements.

Results

Now a lot of you have been reading this waiting to see what the results from Vintage Hotels' foray into the gay market were, if any. So I asked Colin this and if those results met his expectations. His response: "We really didn't have any expectations. This really is our first year and... we are in the "getting established mode" right now. However, in 2007 we will be aggressively marketing with a specific marketing plan." I asked Colin what has worked well for their properties over the past year. Although his Shaw theatre package is doing well, he's hesitant to attribute it solely to the promotions they've been doing. As it has only been a year, he realizes that it's too early to tell and to accurately track. As Colin says, "We know that it takes time to get established in this specialized market and to gain credibility for Vintage Hotels or any other properties."

I know that for the accommodation sector, hard numbers are what is typically needed and wanted to be able to justify an investment, but as I've stressed before, you must be willing to commit to this market for at least three years before making decisions. However, I can tell you that even in Vintage Hotels' first year, they have received recognition in the market, sold some packages, hosted a gay wedding, and were included in the itinerary for the American Gay and Lesbian Psychiatrist Association tour of the Niagara region.

For being in the market for just less than a year now, Vintage Hotels is a great example of what a company can achieve if they are truly committed to serving this market. Colin described their approach to the market as a simple "Here we are attitude, and we welcome the gay community". Colin is confident that as they increase their activities, they will find other opportunities to encourage the gay and lesbian travel market to come to Niagara-on-the-Lake and have a great getaway. It is this commitment, determination, and attitude that will, in my opinion, ensure Vintage Hotels' success in reaching the gay and lesbian travel market and improving their bottom line in the ever increasing competitive world.

Darrell Schuurman is co-founder of the Canadian Gay & Lesbian Chamber of Commerce, and is Director of the tourism program. He is responsible for improving opportunities for gay and gay-friendly tourism-based businesses through research, market development, and promotion of Canada as a gay travel destination. Darrell has worked in the accommodation, transportation, tourism, and travel sectors of the industry. He now works with Canada's national passenger railway, VIA Rail, as Manager of Market Development. He holds a Bachelor of Commerce concentrating in Tourism from the University of Calgary. Mr. Schuurman can be contacted at 416-761-5151 or darrell@cglcc.ca Extended Bio...

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