U.S. ROAD TRIPS REINVENTED FOR COVID-19 AND BEYOND

SEPTEMBER 15, 2020

Chris Adams Amir Eylon Head of Research & Insights President & CEO With You Miles Partnership Longwoods International

Liz Fitzsimmons Mike Mangeot Executive Director Commissioner Maryland Office of Kentucky Department of Tourism 1. Research Summary – U.S. Road Trips 2. International Examples Agenda 3. Maryland & Kentucky Case Studies 4. Panel Discussion 5. Q&A 6. Additional Resources RESEARCH AND ADDITIONAL RESOURCES

www.milespartnership.com/usa-road-trips

COVID-19 RESOURCES Covid19.MilesPartnership.com

www.milespartnership.com/usa-road-trips Where Are We Going? Road Trips Revisited! Fresh research & insights on marketing to US Road Trip Travelers Longwoods International

o Established in 1978 as consultancy-focused research company

o Tourism since 1985

o USA ® since 1990 Methodology (short version):

Travel USA®

• Largest ongoing study of American travelers

• Quarterly random samples of U.S. adult population

• Consumer online panel

• Profiles of representative sample of 300,000+ overnight and day trips each year

• Overview survey, then a custom follow-up After Looking Back 20+ Years… and at the Current Situation…

We See Six Key Takeaways: 1. Road Trips Will Lead Us Into Recovery! IMPACT ON TRAVEL PLANS – APRIL 29

First Trip Travelers Plan to Take in the Next Six Months

Travel by to see friends and relatives within 200 miles 20%

Travel by car to see friends and relatives more than 200 miles 19%

Travel by plane to see friends and relatives within the U.S. 13%

Travel by car for a /getaway within 200 miles (not to see friends/relatives) 12%

Travel by car for a vacation/getaway more than 200 miles (not to see friends/relatives) 12%

Travel by plane for a vacation/getaway (not to see friends/relatives) in the U.S. 10%

I am not planning to take a trip in the next 6 months 8%

Trip to another international destination 3%

I will vacation at home first (i.e., ) 2%

International trip to Canada or 1%

0 5 10 15 20 25

Travel Sentiment Study Wave 8 IMPACT ON TRAVEL PLANS

Reduced travel plans 50% 67% Canceled trip completely 34%

Changed destination to one I can 33% of travelers planning to drive to as opposed to fly travel in the next six months Changed trip from international to 15% will change their travel domestic

plans due to coronavirus 0 30 60

Base: Coronavirus Changed Travel Plans

Travel Sentiment Study Wave 20 IMPACT ON TRAVEL PLANS

Impact of COVID-19 on Upcoming Travel Plans: Change From Fly to Drive

60

40 33% 30% 29% 29% 27% 28% 27% 27% 27% 26% 25% 25% 24% 22% 21% 22% 22% 18% 19% Changed destination 20 17% to one I can drive to as opposed to fly

0 Mar 11 Mar 19 Mar 26 Apr 1 Apr 8 Apr 15 Apr 22 Apr 29 May 6 May 13 May 20 May 27 June 3 June 17 July 1 July 15 July 29 Aug 12 Aug 26 Sep 9

Base: Coronavirus Changed Travel Plans

Travel Sentiment Study Wave 20 IMPACT ON TRAVEL PLANS

First Trip Travelers Will Take in the Next Six Weeks

I am not planning to take a trip in the next 6 weeks 35%

Travel by car to see friends and relatives within 200 miles in the U.S. 15%

Travel by car to see friends and relatives more than 200 miles in the U.S. 11%

I will vacation at home first (i.e., staycation) 10%

Travel by plane to see friends and relatives in the U.S. 9%

Travel by car for a vacation/getaway within 200 miles (not to see friends/relatives) in the U.S. 8%

Travel by car for a vacation/getaway more than 200 miles (not to see friends/relatives) in the U.S. 5%

Travel by plane for a vacation/getaway (not to see friends/relatives) in the U.S. 5%

International trip to Canada or Mexico 1%

Trip to another international destination 1%

0 25 50

Travel Sentiment Study Wave 19 IMPACT ON TRAVEL PLANS

First Trip Travelers Will Take in the Next Six Weeks

35% I am not planning to take a trip in the next 6 weeks 34% 40% 15% Travel by car to see friends and relatives within 200 miles in the U.S. 13% 14% 11% Travel by car to see friends and relatives more than 200 miles in the U.S. 12% 11% 10% I will vacation at home first (i.e., staycation) 8% 9% 9% Travel by plane to see friends and relatives in the U.S. 8% 7% 8% Travel by car for a vacation/getaway within 200 miles (not to see friends/relatives) in the U.S. 9% 8% 5% Travel by car for a vacation/getaway more than 200 miles (not to see friends/relatives) in the U.S. 7% 7% 5% Travel by plane for a vacation/getaway (not to see friends/relatives) in the U.S. 4% 3% 1% International trip to Canada or Mexico 1% 1% 1% Trip to another international destination 4% 1%

0 25 50

Aug 26 Jul 1 May 27

Travel Sentiment Study Wave 19 IMPACT ON TRAVEL PLANS

Activities Travelers Plan to Participate in During Their Fall

Visit friends and family 66% Take a road trip 58% Visit a national park, state park, or monument 33% View fall foliage 30% Go on a hike or bicycle ride 28% Visit a farmers market 27% Visit a museum, art gallery, or other arts/cultural institution 22% Visit a farm to experience fall harvest activities* 22% Go to a winery, brewery, or distillery 19% Visit an amusement park or theme park 19% Attend a festival 17% Go fruit or berry picking 15% Attend or participate in a sporting event 12% Tour a college or university 5% Other 3%

0 10 20 30 40 50 60 70

*Corn maze, hay rides, pumpkin patch, etc.

Travel Sentiment Study Wave 20 2. Road Trips are Still a Hidden Gem! Total Size of Road Trip Segment in 2019

Total Overnight Road Trips = 137 Million

Children Adults 108 29 Million Million 21% 79% Total Spending on Road Trips in 2019 — by Sector

Total Spending = $51.3 Billion Eating/Drinking 19% Accommodations 34%

Transportation to/from Destination Transportation at 16% Destination 8%

Retail Recreation 11% 10% 3. Road Trips Were & Are a Growing Market! Road Trip Segment

Base: Overnight Trips 10 9 9 9 8 8 8 8 8 8 8 8 8 8 7 7 7 7 7 7 7 7 7

5 Percent

0 `98 `99 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 `19 Regional Destination of Trip

Base: Overnight Person-Trips

24 South Atlantic 25 21 Pacific 17 16 Mountain 13 11 Middle Atlantic 13 10 East South Central 7 10 East North Central 12 9 West South Central 9 7 New England 5 7 West North Central 7 0 10 20 30

Percent Road Trip Leisure Norm 3. Road Trippers are Valuable! Average Per Party Expenditures — By Sector

400 Road Trip Total Per Party = $ 1,106 Leisure Norm Total Per Party = $ 870 300

200 $381 Dollars

$256 100 $213 $169 $181 $166 $124 $100 $113 $104 $93 $75 0 Lodging Food & Transportation to/from Retail Purchases Recreation/ Sightseeing/ Transportation at Beverage Destination Entertainment Destination

Road Trips Leisure Norm Past Visitation to Destination

Base: Overnight Person-Trips

80 Ever 89

52 Past Year 69

0 20 40 60 80 100

Percent Road Trip Leisure Norm Accommodations

Base: Overnight Person-Trips 28 Other 19 25 16 24 hotel 23 9 Bed & breakfast 5 9 Rented home/condo/apartment 5 6 Any Commercial Lodging Rented cottage/cabin 3 5 Road Trip = 76% Time share 4 5 Leisure Norm = 58% Country /lodge 3 5 Campground/trailer park/RV park 4 5 Home of friends or relatives 25

0 10 20 30 Percent Road Trip Leisure Norm 4. Road Trippers are Unique! Length of Trip Planning

Base: Overnight Person-Trips

5 More than 1 year in advance 4

18 6-12 months 15

22 3-5 months 19

18 2 months 17

29 1 month or less 32

8 Did not plan anything in advance 14

0 20 40 Percent Road Trip Leisure Norm Trip Planning Information Sources

Base: Overnight Person-Trips

21 Hotel or resort 18 18 Online travel agencies 13 18 Destination websites 7 14 Advice from relatives or friends 12 11 Auto club/AAA 8 11 Social media 8 11 Travel company websites 8 10 Travel guide/other books 4 9 A visitors' bureau/government tourism office 4 9 Official travel guide of a state/city/region 3 0 5 10 15 20 25

Percent Road Trip Leisure Norm Method of Booking

Base: Overnight Person-Trips

32 Hotel or resort 29 22 Online travel agencies 18 13 Airline/commercial carrier 16 11 Travel company websites 10 11 Short term rental websites 6 10 Auto club/AAA 10 8 Travel agent/company 9 8 Destination websites 6 4 Visitors' bureau/government tourism office 3 3 Travel/ski show or exhibition 2 0 5 10 15 20 25 30 35 Percent Road Trip Leisure Norm Devices Used for Trip Planning

Base: Overnight Person-Trips

93 Used any device (net) 84

46 Laptop 38

45 Desktop/Home computer 38

30 Smartphone 30

17 Tablet 14

0 20 40 60 80 100

Percent Road Trip Leisure Norm Mobile Devices Used During Trip

Base: Overnight Person-Trips

86 Used any device (net) 78

68 Smartphone 62

26 Laptop 23

26 Tablet 22

0 20 40 60 80 100

Percent

Road Trip Leisure Norm Activities and Experiences

Base: Overnight Person-Trips 39 Shopping 31 34 Landmark/historic site 12 28 National/state park 10 23 Museum 10 19 Beach/waterfront 14 17 Hiking/ 8 16 Fine/upscale dining 12 15 Swimming 14 13 Bar/nightclub 14 10 Brewery 6 10 Winery 4 0 15 30 45 Percent Road Trip Leisure Norm Activities and Experiences (Cont’d)

Base: Overnight Person-Trips 9 Art gallery 5 7 Casino 13 7 Zoo 5 6 Theater 6 6 Theme park 7 5 Fair/exhibition/festival 4 5 Fishing 5 5 Boating/sailing 4 5 Spa 5 5 Camping 4 4 Biking 3 0 15 30 45 Percent Road Trip Leisure Norm Activities of Special Interest

Base: Overnight Person-Trips

51 Historic Places 22 31 Cultural Activities/Attractions 17 16 Exceptional Culinary Experiences 11 12 Winery Tours/Tasting 7 11 Brewery Tours/Beer Tasting 7 7 Eco-tourism 5 6 Film Tourism 4 5 3 4 Marijuana Tourism 4 4 Religious Travel 3 3 Wedding 5 3 2 0 20 40 60 Percent Road Trip Leisure Norm Household Income

Base: Overnight Person-Trips

7 $150K+ 7

18 $100-$149.9K 16

17 $75-$99.9K 15

24 $50-$74.9K 22

35 <$49.9K 41

0 15 30 45 Percent Road Trip Leisure Norm Education

Base: Overnight Person-Trips

23 Post-Graduate 21

43 College Graduate 41

19 Some college 22

14 High school or less 15

1 Other 1

0 10 20 30 40 50

Percent

Road Trip Leisure Norm 6. Road Trips are a Partnership Opportunity! Number of Nights Away on Trip

Base: Overnight Road Trips 10

6 6 6 6 6 6 6 6 6

5 4 4 4 4 4 4 4 4 4 4 4 4 3

0 `98 `99 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 `19 Size of Longer Road Trip Segment in 2019

Total Overnight Road Trips = 137 Million

5+ Nights 28%

1 - 4 Nights 72% Total Expenditures of Longer Road Trip Segment in 2019

Total Road Trip Spending = $51.3 Billion

1 - 4 Nights 55% 5+ Nights 45% Average Per Party Expenditures — By Sector

Base: Overnight Person-Trips 800 5+ Nights Segment Per Party = $2,120 Road Trip Norm Per Party = $ 1,106 600

400

Dollars $755

200 $381 $411 $385

$181 $213 $195 $190 $184 $113 $124 $93 0 Lodging Transportation to/from Restaurant Food & Recreation/ Sightseeing/ Retail Purchases Transportation at Destination Beverage Entertainment Destination

5+ Nights Road Trip Norm Trip Planning Information Sources

Base: Overnight Person-Trips 25 Destination websites 18 24 A hotel or resort 21 20 Online travel agencies 18 19 Advice from relatives or friends 14 18 Travel guide/other books 10 17 An airline/commercial carrier 9 16 Travel company websites 11 14 A visitors` bureau/government tourism office 9 14 Official travel guide of a state/city/region 9 13 Auto club/AAA 11 12 Short term rental websites 8 0 10 20 30 Percent 5+ Nights Road Trip Norm Activities and Experiences

Base: Overnight Person-Trips 47 Shopping 39 46 Landmark/historic site 34 44 National/state park 28 33 Museum 23 31 Beach/waterfront 19 24 Swimming 15 24 Hiking/backpacking 17 22 Fine/upscale dining 16 17 Bar/nightclub 13 12 Brewery 10 12 Art gallery 9 12 Winery 10 0 20 40 60 Percent 5+ Nights Road Trip Norm Number of States Visited on Trip — 2019 Longer Road Trips

Base: 5+ Nights Trips

Percent of multi-state (3+) trips One State that are 5+ nights long = 67% 75%

Three or More States 14%

Two States 12% In-State and Multi-State Partnerships! FINAL Thoughts on ROAD TRIPS 2020 - 2021

Road Trips will be the dominant share of leisure travel into 2021 in many ways…

● VFR First – Invite Them!

● VFR Second

● Leisure Third – Sweet Spot of Opportunity!

● Groups

Too…

International Examples

Case Study Examples Travel the Byway: A Road Trip for Recovery 64 Harriet Tubman Underground Railroad Byway

68 69 Run video here THANK YOU Kentucky Department of Tourism We’re already a drive destination

• 88% of overnight visitors drove to Kentucky in 2019 • Kentucky over-indexes compared to US Norm on VFR, Touring & Outdoor Activities • Existing drive itineraries such as distillery tours, horse farms, historical sites, national parks • Kentucky is within a 4-5 hour drive of key metros: – Cincinnati, Columbus, Cleveland, Nashville, Knoxville, Memphis, Charleston/Huntington, Indianapolis, St. Louis, Atlanta, Chicago, Charlotte, Birmingham – I-65 and I-75 are major arteries bisecting Kentucky

Source: Travel USA 2019 Kentucky Visitor Profile, Longwoods International Marketing Campaign Objectives

• Increase in-state travel while developing stronger and deeper engagement with visitors • Inspire consumers to consider a Kentucky vacation through content that highlights all there is to see and do across the Commonwealth • Subtly emphasize traveler safety and health • Remind Kentuckians they don’t have to travel far to be transported a world away. The Bluegrass State is full of surprises…even to those who call it home. Marketing Activities

• #TravelKYRoadtrip

– One per month from August – October

– Launched week of 8/10

– Second is happening now

– Three primary platforms – Facebook, Twitter & Instagram #TravelKYRoadtrip

5 days of content 1 post per day 1 story per day

Instagram

Facebook

Twitter #TravelKYRoadtrip

Day One Red River Gorge Area

Facebook #TravelKYRoadtrip

Day Two – Jenny Wiley State Resort Park Instagram #TravelKYRoadtrip

Get your partners involved!

Thank you Prestonsburg for the repost! #TravelKYRoadtrip

Twitter Day Three Land Between the Lakes, Lake Barkley

Twitter Last Day Kentucky Dam Village State Resort Park #TravelKYRoadtrip

Instagram Stories = added value for your partners, locations and attractions #TravelKYRoadtrip Join the Kentucky Department of Tourism for our next #TravelKYRoadtrip this week!

@KentuckyTourism Featured this week: • Mammoth Cave National Park @kytourism • Bernheim Arboretum and Research Forest @travelkentucky • Jim Beam American Stillhouse • Shaker Village of Pleasant Hill • Danville, KY Marketing Activities

• Stay Close. Go Far Marketing Advertising campaign

– Running 8/31 – 10/15

– Digital, TV, Radio, Print

– Only running in-state currently

– Flexibility is key Print Digital Television/OTT Panel Discussion Resources ROAD TRIPS RESEARCH AND ADDITIONAL RESOURCES

www.milespartnership.com/usa-road-trips BLOG: GLOBAL BEST PRACTICES IN

www.milespartnership.com/blog/ FUNDING FUTURES The Impact & Future of Tourism & DMO Funding in Response to COVID-19

Final Report available at www.milespartnership.com/FundingFutures UPCOMING FUNDING FUTURES WEBINARS

Funding Futures: Canadian Edition Thursday, September 17, 2pm ET

Funding Futures: Building Reserves & Short-term Rental Revenue Tuesday, September 22, 3pm ET

Register at www.milespartnership.com/FundingFutures Q&A

Thank you!