Part 4 in a five-part series.
Before I start with this week’s article, let me address a couple of comments from some readers who were concerned that the overall tone of this series is negative. If you consider yourself in this group, let me explain.
It is never fun to talk about serious things — such as illness, war, inflation, food shortages, and unemployment. The situation we all find ourselves in has been called a polycrisis. No one looks forward to discussions involving these hard topics, but it does no one any good to bury these subjects under the rug. They won’t go away if you do. Therefore, it is best to address them head on. And regardless of whatever difficult situation you are most concerned about, here at the WFTA we have always believed that every cloud has a silver lining. Lost your job or business? Then it means a new, better opportunity awaits you. Worried about how to heat your home this coming winter? Now is the time to make sure you have enough blankets and sweaters, and join a solar energy cooperative (or even install solar panels if you have the means). Concerned about global warming? Then do all you can to mitigate against it, and embrace new agricultural crops that thrive in your area’s new warmer weather. There are two sides to every coin. Change is unquestionably hard. But acknowledging and preparing for current challenges gives you the best chance of survival and success.
We are thought leaders here at the World Food Travel Association. It is our job to talk about the hard topics. But at the same time, we always try to offer helpful solutions for your consideration. Unlike Chicken Little, we don’t think the sky is falling. But many, many things are changing. It is a lot to manage all at once, we know. We are facing the same myriad changes as you. The best thing you can do is to be prepared. Timely articles like this and others will help to germinate seeds of thought for ways that you can prepare yourself, your family and your business for the future. Do not despair. Try to think of the positive, and let’s take our gastronomy tourism industry together ahead into a successful decade!
Part Four
CHANGES HAPPENING FOR ENTREPRENEURS
In April 2020, early in the pandemic, we surveyed our community to see how the pandemic might impact the various tour operators, tourist guides, restaurants, hotels, and others who comprise our industry. The results were quite surprising, and in a positive way. Only 10% of our community said that they planned to shut their business down for good. Given the severity of the global crisis, this was tremendously good news. We analyzed that number further. Certainly some of those businesses had planned to close soon anyway, due to owner retirement, preexisting financial instability, or simply changed priorities. Did the pandemic just usher a few people more quickly into different situations? Regardless, many businesses closed or cut back their operations severely. We all had to learn hard lessons fast.
As small business owners, we had the flexibility to be able to pivot quickly. Some larger corporations took more than a year to adjust to the changes. As we pivoted, we learned how to reinvent how we do business. Cutting out the middleman was a top priority, especially for tour operators and lodging properties that saw 30–40% of their booking revenue go to commissions on websites like TripAdvisor and Airbnb. Ouch. No small business can afford to pay commissions like those anymore. Smart operators questioned the status quo. What if we charged the same prices and sold directly to travelers? We would make up to 40% more income! It sounded quite appealing, but also daunting.
How would you, as a sole proprietor (or team of two even), reach enough food lovers who want to take your cooking class or stay in your small hotel? There is an answer, but it is complex. Start by analyzing and overhauling your digital marketing strategy. Make sure that your website is easy to use with pristine SEO.
Food lovers are not all the same, so target the right groups of travelers on social media, using specific hashtags (like #vegetarian #authentic or #gourmet). You could even look at buying Facebook ads or paying for Google search results, although we have never achieved good results with those methods, so take that advice with a grain of salt. You can still have a presence on TripAdvisor and Airbnb but don’t count on them for the lion’s share of your sales. Would you like direct sales where you earn 100% of the price you charge (and have to tell Airbnb that you are sold out for the rest of the year)? Or would you rather earn 60% of the price you charge and rely on referrals from the big booking sites? Your goal should be always to be sold out or at capacity through other marketing channels so you don’t have to resort to paying those exorbitant commissions.
TRAVEL COUNSELORS REINVENT THEMSELVES … AGAIN
For any travel agents who are concerned that we are recommending consumers bypass you, on the contrary. When airlines cut commissions to travel agents three decades ago, travel agents had to get clever. Many did, and many others went out of business because they could not adapt.
A good travel agent is worth their weight in gold. You need to show your potential clients why they should pay for your services as a travel counselor. Show them how much time or money they can save by actually paying for your time and knowledge. Your knowledge is your greatest asset. Charge for everything you do. Build entire itineraries with unique, hard-to-find resources (but don’t release them until you are paid). Whether the supplier pays a commission to you, or you charge a flat fee to your client, or both, you still win as a travel counselor. Make sure that your website matches the expectations of today’s consumers (we’ve seen too many travel counselor websites looking 20+ years old).
And if travel delays and soaring costs are keeping people from the big ticket itineraries, what can you do? Presumably you are an expert in the area where you live. So promote packages and itineraries to some of your area’s hidden gems. For inspiration as to where those gems can be found, check out Atlas Obscura and their new app, which has mapped every single rare travel-worthy find in the publisher’s database, all around the world.
CONSUMER CHANGES AFOOT
As a consumer, what else could you be doing to prepare for changes that affect how you travel? Well, future trips may be more local and regional. We saw a bit of this during the pandemic, when lockdowns prevented people from traveling outside the limits of cities or provinces. There is so much still to discover in our own backyards. I remember when I lived in New York City in the 1990s, I hardly went to any museums, galleries or shows (but perhaps unsurprisingly, I did visit many restaurants and bars). My logic was that I could always visit the other attractions, and I regret that I rarely did. Does this sound like you — too busy to notice and appreciate what is around you? One of the most attractive benefits of local and regional tourism is that planning far in advance is not always necessary, unlike long-haul international flights. There can be excellent cost savings to enjoy as well.
And consumers are concerned about food sovereignty as well, even though it does not sound like something that should impact travel. But as the culinary tourism industry, it most certainly does.
How do we create or strengthen our own local food systems, which also happens to be the UN’s 13th SDG relating to responsible food systems? First, look to your own local culinary culture. Study the agricultural crops and other ingredients, recipes and cooking methods. Is there something your parents or grandparents could teach you? What crops can you grow yourself? Even apartment dwellers can grow sprouts and some herbs indoors with not much effort. Still, reinforcing our local food systems means getting to know your local farmers.
Going back to the idea of cutting out the middleman, what if your local farmers could sell everything they grow without having to sell through distributors? They would make a lot more money, and you would get fresher produce, perhaps even some financial savings as well. This is a circular economy, where waste is prevented. Did you know that on average, 33% of all the food produced is thrown away? And if the world’s stability degrades further, nothing is going to help you more than a strong circular local economy. Get to know your butchers, your bakers, your cheesemakers and growers. Read more about food waste and the circular economy.
Recovery in the travel sector will be slow, according to major industry researchers like Skift. With so much uncertainty in so many areas, I don’t think anyone can really predict when, or if, things will normalize. The lesson here is that we may never return to the previous “normal”. Therefore, prepare yourself and your business, and establish what the new normal is for you. Don’t let yourself be affected by the never-ending, paralyzing news. Continue your marketing. Work on your comprehensive digital strategy, as discussed above. Continue your own professional development training.
WHAT DOES THE CRYSTAL BALL SAY?
There is no crystal ball, but we do have the benefit of all being in the same boat together. We can learn from each other and we will survive when we work together. Crisis and hardship do not mean an end to travel and tourism. But they do mean that how we define travel and tourism may need to change. And we may also need to adjust our expectations. Never rest on your laurels, and always pay attention to how trends are changing. Be ready to make adjustments on a moment’s notice.
Like what you’re reading? Get our monthly newsletter.
Erik Wolf is the founder of the culinary 🍕 travel 🛩 trade industry, and Executive Director of the World Food Travel Association, the world’s leading authority on food and beverage tourism. He is the publisher 📗 of Have Fork Will Travel (a practical handbook for our industry), author of Culinary Tourism: The Hidden Harvest, and is also a highly sought strategist 🔀 and speaker 📣 around the world on gastronomy tourism. He has been featured in The New York Times, Newsweek, and Forbes, and on CNN, Sky TV, the BBC, the Australian Broadcasting Corporation, PeterGreenberg.com, and other leading media outlets.
