Profiting from the visiting friends and relatives sector

Visiting friends and relativesVFR (visiting friends and relatives) travellers are the unsung heroes of domestic travel, however they are largely ignored in terms of hotel industry and local government tourism marketing efforts. They represent an untapped marketing opportunity as the ‘low hanging fruit’ of domestic tourism.

Plus, VFR is a stable sector. As my colleague and VFR expert Elisa Backer, senior lecturer in tourism at Federation University in Victoria, says: “The need to reconnect socially remains regardless of the economy.  In particular, people need to travel for family events, such as graduations, weddings, funerals, christenings. This is why VFR tends to be stable and not as susceptible to seasonality as other forms of travel.  Expenditure by VFRs and their hosts tends to occur more broadly throughout the local economy. Its benefits are therefore considerable.”

Indeed, Tourism Australia estimates that the VFR segment is about 48% of Australia’s overnight tourism market, with direct value to the economy of about $15 billion a year.

A few months ago, MyTraverlResearch.com, conducted a study of 800 VFR travellers. We found that hosts, as de facto local tourism ambassadors, want loyalty or discount access to local attractions. The hosts asked a good question: “Why should I pay full price for bringing out of town relatives or friends to a local attraction multiple times?”

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Our survey found that both visitors and hosts want more information targeting their pain points. For example, grandparents who see their grandkids a couple of times a year need to know where to eat that is child friendly, which parks in town have a kids’ play zone, what to do in wet weather, and so on.

It is vital for VFR hosts to have information about what there is to do that is appropriate to the visitor — things to do and enjoy together. But first and foremost, it is about catching up and reconnecting with those you love.

Despite some misconceptions, the VFR experience is an overwhelmingly positive and relaxing one for both the visitor and host.  In Australia, we tend to undermine the VFR trip as being a chore or something we are obliged to do. Nearly all of our respondents spoke very fondly about the experience and looked forward to it.

There are many things that local public sector authorities and accommodation providers can do to boost VFR expenditure. The VFR market is potentially ‘easy money’ for accommodation providers, regions and local government areas. Unfortunately, many local government areas see the VFR sector as a market that will come anyway, so the majority of local government areas ignore this market.

Although the VFR market will come, opportunities lie in stimulating the market.  From this, we mean that there are many ways to increase spending from both hosts and visitors.  Stimulating the market will also help increase the length of stay.

Southern Highlands in NSW Australia have locals campaigns on a regular basis and have many attractions, local shops and cafes that offer special ‘locals VFR deals’.  These are designed to get the host to bring their visiting friends and relatives along – for example, free entry for locals if they bring along their VFR. They run e-card campaigns asking locals to invite their friends back at certain times of the year.

The Roman Baths in the UK give residents of Bath and North East Somerset a residents Discovery Card. It allows locals free admission to the Roman Baths and the Fashion Museum and a discount at the restaurant in the Pump Room which encourages locals to bring visitors to the attraction.

Marketing is important. As with any good marketing tactical execution, words and images play an integral part.  VFRs should be able to connect and relate to your marketing. The VFR is a powerfully emotive sector with real creative opportunities.

VFR marketing imagery should be centred around people and situations that constitute authentic experiences. Please, no empty landscape shots – show families and friends enjoying attractions, outlets and outdoor spaces together.

About the author

Bronwyn White_1Bronwyn White is the co-founder of MyTravelResearch.com, a market research and marketing firm specializing in the travel, tourism and aviation industries. Its specialty is providing insights that are actionable. Founded by principals with lifetime careers in travel, tourism and aviation, MyTravelResearch.com exists to build the visitor economy and successful tourism businesses.

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