CalTIA Ticker
Volume 8 | #2 | March, 2011 |
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| Please enjoy this edition of the Ticker newsletter brought to you as a service of the California Travel Industry Association (CalTIA), under the direction of CalTIA's Communications Committee, and Ted Molter, CalTIA 2010-11 Chairman of the Board.
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| TOURISM MARKETING RESEARCH |
OUTLOOK FOR THIS YEAR'S TRAVEL: POSITIVE
The US still faces high unemployment and a slow recovery but more people plan to travel in 2011 and expect to spend more money, says a new report by Travelocity.com. "Judging from the number of respondents who say they intend to both travel and spend more in the coming year, the travel industry could see continued growth in 2011," said Hugh Jones, president and CEO of Travelocity Global. Thirty five percent of 1,403 consumers surveyed by travel web site travelocity.com said they will increase their travel in 2011. Only one percent said they do not plan to go anywhere, compared to four percent last year, the report found. More than one quarter of those surveyed said they would spend US$2,000 or more on their vacations this year, which was up from 20 percent in 2010. More than one third said they will spend more than last year.
"The survey will be welcomed by airlines battling higher oil prices and travel agents concerned that unrest in popular holiday destinations like Egypt and Tunisia might deter vacationers this year," said Reuters Life.
Airfares are about 8 percent higher this year, according to Travelocity, but 34 percent of respondents to the poll said they intended to spend more on their flights, slightly more than the number planning to spend more on hotels. Read More...
NBTA PREDICTS INCREASE IN BUSINESS, GROUP TRAVEL SPENDING A key indicator of economic health - business travel spending - is expected to increase by 5 percent this year, according to the National Business Travel Association (NBTA) Foundation, which this week released the results of its latest "Business Travel Quarterly Outlook - United States" research report. Sponsored by VISA, the report estimates that U.S. business travel spending will be $58.8 billion during the first quarter of 2011, while total trips will equal 109.9 million, up 6.7 percent and 8.6 percent, respectively, over the first quarter of 2010. Meanwhile, NBTA estimates that business travel spending grew 2.3 percent in 2010, up dramatically from 2009, which saw a 14.1 percent decrease in business travel spending. Included in the "Business Travel Quarterly Outlook" is the Business Travel Index (BTI), a headline measure of the current and projected level of business travel in the United States says Successful Meetings. At the last industry peak in late 2007, the BTI was 120. Two years later, it had fallen 20 percent to 96. In the third quarter of 2010, it was 103, and today it is 108. NBTA forecasts that the BTI will reach 120 again in late 2012. "Our research is ringing in the new year with reason for cautious optimism," said NBTA Executive Director and COO Michael W. McCormick. "Based on the way 2010 began, the year wrapped up better than expected thanks to a number of factors, including higher than expected GDP, stronger exports and very strong corporate profits. These trends are translating into greater business travel spending as companies invest in travel to drive revenues and compete aggressively in a recovering economic environment." The strongest business travel sectors, according to NBTA, are international travel and group travel. In 2010, outbound international travel spending was estimated to grow by 16.9 percent, versus a 32.1 percent decline in 2009. Spending on group travel, meanwhile, was flat in 2010. This year, spending on both international and group travel is expected to grow 3.2 percent. Read More...
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| TOURISM - CALIFORNIA |
 DISNEY TO PRODUCE ATTRACTION COMPONENTS IN GLENDALE, CALIFORNIA The Glendale City Council approved The Walt Disney Company's plan to build a 56,000-square-foot (5,203-square-meter) machine shop for the construction of theme park attraction components. It will be part of the company's 125-acre (51-hectare) Glendale campus, which also includes an office building, child-care center, and other facilities. Read More...
HAPPY HOLLOW PARK AND ZOO GREEN RENOVATIONS WIN AWARDSince the Happy Hollow Park and Zoo in San Jose completed a $72-million renovation in March, it's attracted a new set of visitors besides all those tykes and toddlers in high-tops and jeans.
Because of the renovation, the zoo was awarded the Leadership in Energy and Environmental Design (LEED) Gold certificate - the first in the nation for a zoo or amusement park - by the nonprofit U.S. Green Building Council.
Kids who crowd Happy Hollow to see pygmy goats and ring-tailed lemurs must share the zoo with tree-hugging environmentalists who show up to check out the latest in green building designs.
"We have tapped into a new audience," said Shannon Heimer, the zoo's education manager.
Frisky capuchin monkeys and sleek jaguars are enough to draw me to any zoo, but I was interested to see what it took to win Happy Hollow a top distinction from the nation's leading environmental design panel.
Visitors interested in the Gold award-winning features can take a self-guided tour of the "green" improvements. For larger groups, the zoo's education department will lead personalized tours if requested in advance. Read More..
CARTHAY CIRCLE THEATRE BUILDING AT DISNEY CALIFORNIA ADVENTURE TO HOUSE NEW RESTAURANTThe design for the building was inspired by the original Carthay Circle Theatre, a Los Angeles-area landmark where Walt Disney's "Silly Symphony" cartoons and "Snow White and the Seven Dwarfs" debuted. It will be a focal point at the entrance to the park. Although it will not house a theater, it will hold a new restaurant and lounge. The name, menu, and interior design are still in development. The new restaurant and entrance area are part of a $1 billion expansion project at the Anaheim theme park. Read More...
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| TOURISM - NATIONAL |
 PHILADELPHIA EXPANDS TOURISM CAMPAIGN Marketing Daily reports the City of Brotherly Love is hoping to boost tourism this year with an ad effort supported by some big out-of-home media buys this winter. The effort, "With Love, Philadelphia XOXO," via by the Greater Philadelphia Tourism Marketing Corporation, also includes a consumer-engagement program to get people to come up with text for billboard advertising. The campaign launches this week with dominations in New York City and Washington, D.C., train stations, and with advertising on the CNN Airport Network. A 30-second TV spot is running for 12 weeks in airports in New York, Pennsylvania, New Jersey, Washington, D.C., and Virginia. The marketing organization says it is the first advertiser to select individual airports through the CNN airport network. The spot will also play in 5,500 New York City taxicabs from Feb. 28 through March 30. In addition, New York City's ABC affiliate will run a half-hour special called "Destination Philadelphia" on March 12 and 13, making Philadelphia the first U.S. destination to do such a program. The special will be paired with print ads in magazines and newspapers, on billboards, in transit stations and online. The tourism agency will take over New York's Pennsylvania Station, which gets some six million commuters a month -- with "With Love, Philadelphia"-themed ads to run simultaneously on 225 Amtrak-level advertising displays, including posters, column wraps, banners, kiosk dioramas and a stair riser. Washington, D.C.'s Union Station will get the same treatment in March. The campaign will include onboard posters on Amtrak and Acela trains and advertorials in Arrive magazine. The agency is also doing joint marketing efforts with Philadelphia destinations like the Philadelphia Museum of Art, National Constitution Center, and the month-long Philadelphia International Festival of the Arts this spring. Philadelphia's tourism organization is also getting behind Philly's National Hockey League team, the Flyers. Cara Schneider, an agency spokesperson, says the effort is aimed at a major tourism feeder market for the city: Toronto. Read More...
DIG THIS SET TO OPEN IN LAS VEGAS, NEVADA Ed Mumm is converting the former Scandia Amusement Park into Dig This, where guests can operate heavy construction machinery. When the attraction opens next month, guests can book $400 packages that include a 30-minute orientation and two hours of operating a bulldozer or excavator. Mumm ran a pilot version of the attraction for three years in Steamboat Springs, Colorado. Read More...
BE A COWBOY KING IN...FLORIDA You probably haven't considered Florida as a "wild west" destination but there are thousands of acres of ranch land and plenty of cowboys in the "Sunshine State." And now the history-steeped Creek Ranch is inviting guests to live the "cowboy life" -- including horseback riding, cattle herding and campfire breakfasts. The 1400-acre ranch in Haines City (Central Florida) is now offering a "Home on the Range" package. "But with accommodations fit more for a king than a cowboy," says the ranch. For horse-lovers, this is a desirable destination. In addition to full access to the ranch's 1400 acres, guests can also ride over to the adjacent Catfish Creek State Preserve, an 8,000 acre park with 8 miles of horseback trails. Guests stay in a "Main" or "Bunk House" that is full of un-cowboy-like family heirlooms, antiques, paintings and art books. There are four large bedroom suites with kitchens. "Befitting a tropical vacation home, the Bunk House has loads of comfortable screened-in sitting and dining areas. Guests often choose to eat their meals in the large porch facing the lake, as the breezes are plentiful," says the ranch. There's a stunning living room with the owner's diverse art collection, two dens for casual relaxing and TV, a study with computer and a cozy, screened cooking porch. Closer to the lake, on an inlet that yields the soothing sounds of the rich birdlife is the screened Boat House; it's perfectly suited to pre-dinner cocktails. Sports include skeet shooting, guided jeep tours and mountain bike riding. For the "Home on the Range" package, the entire ranch can be rented for up to four guests at the daily rate of US$3000; for 5-8 guests the daily rate is $5,000. The rates include gourmet chef, all food and drinks, and all activities on the property. Read More... |
| TOURISM - INTERNATIONAL | INTERNATIONAL TOURISM RECOVERS, UNWTO SAYS
Although the travel industry is still feeling the after-effects of the recession, international tourism recovered strongly in 2010, according to the United Nations' World Tourism Council (UNWTO), which this month released results from the latest UNWTO Business Barometer, its tri-annual market analysis of the global tourism industry. Last year, according to Successful Meetings, international tourist arrivals grew by 6.7 percent, according to UNWTO, which said arrivals totaled 935 million - up 58 million from 2009 and 22 million from the pre-recession peak. In contrast, international tourist arrivals fell 4 percent in 2009. Arrivals growth was strongest in Asia (13 percent) and the Middle East (14 percent), and weakest in the Americas (8 percent), Europe (3 percent) and Africa (6 percent), although no regions experienced declines.
Among the top markets for outbound international tourism, meanwhile, were China (up 17 percent), Russia (up 26 percent), Saudi Arabia (up 28 percent) and Brazil (up 52 percent). Outbound expenditures in the United States were up only 2 percent, while they were still down 4 percent in the United Kingdom. Read More...
SURPRISE: WHEN US GOVERNMENT SAYS DON'T GO
Three days after the first demonstrations in Egypt, the US State Department issued a "travel alert." That soon became a "travel warning," but what exactly does that mean? Many US travelers may wonder and even be inclined to ignore the government's view of safety in other countries. After all, some of the State Department's danger warnings may surprise you with destinations that seem to pose no threat. The State Department's latest suggestion is that US citizens should avoid travel to Egypt at this time and notes that commercial planes are operating out of Cairo and several other Egyptian airports. Their advice: also avoid demonstrations "as even peaceful ones can quickly become violent and a foreigner could become a target of harassment or worse." The Minneapolis Star-Tribune quotes a local couple who upon seeing the warnings found themselves dismayed about a long-planned trip to Egypt. "It is silly to go on a trip if all you're going to see are tanks and burning cars," said Fred Walker, who with his wife Karen cancelled their visit to Egypt. Egypt is far from alone because there are a total of 31 countries that have earned the dubious distinction of US State Department warnings. They include such popular destinations as parts of Mexico. The difference between travel alerts and warnings? State Department officials say so-called "travel alerts" are for short-term events such as demonstrations or an outbreak of H1N1. "Travel Warnings" are issued due to unstable government, intense crime or frequent terrorist attacks. Also when "we want you to know the risks of traveling to these places and to strongly consider not going to them at all," according to the State Department's web site. The site offers detailed descriptions of countries worldwide, including traffic safety, medical facilities, entry and exit requirements, crime and security. Travelers can also call the State Department for such information. Even popular spots, where most Americans travel without problems, can offer surprises. The information on Mexico, for instance, warns that drug-related violence has increased in Acapulco, some of it in areas frequented by tourists; that Mazatlan has seen a surge in violent crime, and that "rape and sexual assault continue to be serious problems in Cancun and other resort areas." Obviously, many parts of Mexico are safer than others. So warnings can also be specific to let visitors to Mexico, for example, become aware that most violent crime is committed along the border with the US. Other often more popular areas such as Cancun and Acapulco are far safer in general than border towns. Something else to consider is that even warnings point out that "millions of US citizens safely visit Mexico each year" and "the Mexican government makes a considerable effort to protect US citizens and other visitors to major tourist destinations." So State Department officials say no one is urging panic or avoiding any countries entirely but visitors should at least be aware of possible problem areas before deciding where and whether even to make the trip. Read More...
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| LODGING |
HOTELS RATES TO START RISING IN 2011
 Consumers contemplating a getaway may want to book a hotel room sooner rather than later, as room rates are set to rise this year. Substantial increases of $10 or more are at least another year or two away, but the lodging industry plans to take advantage of improving market conditions. Several leading hotel operators including Marriott International, Hilton Worldwide and Starwood Hotels and Resorts are incrementally upping average daily rates in light of the return of leisure and business travel, and the relatively fixed supply of rooms given the lack of new construction reports The Washington Post. "We continue to see strength in pricing," Arne Sorenson, president and chief operating officer of Bethesda-based Marriott, said at the Americas Lodging Investment Summit here last week. Marriott, which operates more than 3,000 hotels in 68 countries, got a jump on its competitors by selectively raising rates last year, before any meaningful pickup in travel. The gamble paid off as rooms began to fill in the summer. Read More...
GREEN CORPORATE TRAVEL TO MAKE STRONG IMPACT ON HOTEL BRAND SELECTION MindClick SGM, the leader in sustainability performance measurement and consulting, today announced the results of a recent study to help hospitality providers understand the growing demand for green hotel rooms. Conducted among corporate travel executives from Fortune 1000 companies, the study found that sustainable purchasing of furniture, fixtures and equipment (FF&E) is among the most important criteria for evaluating hotel sustainability. The San Francisco Chronicle reports that sixty-five percent of corporate travel executives responsible for over $10MM in annual travel budgets are in various stages of implementing green business travel guidelines. Representing a variety of industries -- ranging from technology and business services to manufacturing and financial services -- the majority of these "green" corporate travel buyers choose from mid-scale hotel properties. When asked to define hotel sustainability, only two percent of those surveyed mentioned the U.S. Green Building Council's LEED® certification. Read More...
SURVEY: MEETING PROXIMITY NO. 1 FACTOR IN HOTEL CHOICE Successful Meetings reports that when it comes to choosing a hotel, the most important thing to business travelers is proximity to their business meetings, finds a new survey from the Travel Leaders Group, the results of which were released last week. Based on findings from the travel agency's annual "Travel Trends Survey," the survey showed that a meeting-friendly location is important to 82.8 percent of business travelers, followed by amenities such as a rewards program (54.4 percent), free Wi-Fi (31.4 percent), airport proximity (17.7 percent) and free breakfast (13.2 percent). Conducted in November 2010, the survey also found that 76 percent of business-focused travel agents forecast that business travel in 2011 will match (36.3 percent) or exceed (39.7 percent) their total bookings for 2010.
Other key findings, according to Travel Leaders: - Approximately 65 percent of respondents said their clients combine business travel with leisure or family trips.
- More than half (54 percent) of respondents said they had noticed a change in booking practices that require their clients to book their flights in advance.
- Approximately 31 percent of respondents said that 11 percent or more of their business clients are booking first or business class tickets; another 56.4 percent, meanwhile, said 1-10 percent of their clientele is flying "up front."
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| TRANSPORTATION |
ROOM SERVICE IN TERMINAL BAlmost every night, stranded travelers can be found sleeping inside the terminals of Dallas-Fort Worth International Airport. "This is the new reality," said James Crites, DFW's executive vice president for operations. "You're becoming a hotel." These days, airlines are canceling flights more readily due to bad weather and other disruptions. Rebooking is tricker than ever-as many discovered during the recent snowstorms in the South and Northeast-because airlines have reduced their schedules and are running at capacity. As a result, passengers should prepare for the dreaded airport sleepover. Now, however, airports are doing more when they become the hotel of last resort reports The Wall Street Journal. Many provide meal vouchers and set up discounted hotel rates for travelers, for example. Some write requirements in leases that restaurants will remain open 24 hours a day when passengers are stranded. Massachusetts Port Authority, which oversees Boston's Logan Airport, has an arrangement with flight kitchens to cook up lots of meals for stranded passengers if the terminal restaurants run out of food or can't stay open. Newsstand vendors at Boston Logan are also required to stock baby formula and diapers for stranded families. At many airports, paramedics are on call for medical care; parking-lot buses are deployed to move people between terminals or to hotels. Among the amenities big airports now routinely stock: cots, blankets, diapers, baby formula, eye masks, prepaid phone cards, ear plugs, deodorant and shampoo. For the second big snowstorm in New York this winter, the Port Authority of New York and New Jersey started handing out free WiFi cards to stranded customers at New York City's three major airports so travelers could check their flight status online at airline websites. But perchance to sleep? At New York's LaGuardia Airport, people stranded in the US Airways and Delta terminals are invited to ride buses to the central terminal, where a sleeping area is set up with cots and security guards. DFW establishes quiet zones for cots where music and paging announcements are muted and lights are dimmed. And when ash clouds shut down European skies last spring, the Port Authority bused Newark stranded passengers to showers in "snow dorms" built for plow drivers and trucked in portable showers for passengers marooned at Kennedy International Airport. "It's not the same as staying at the Waldorf. But people were so grateful after three or four days of washing in a bathroom sink," said Susan Baer, Port Authority aviation director. The overnight-guest trend is raising larger questions of airport design and overnight security staffing. Read More... CELEBRITY CRUISES VOWS TO 'X THE RULES'Celebrity Cruises is launching a multi-channel campaign with the theme "X the rules." While all cruise lines claim to offer beautiful accommodations, great dining experiences, and excellent service, Celebrity's point of distinction is offering a "better, different and special vacation experience" including "trendsetting onboard experiences." While most vacation providers offer Internet cafes, Miami-based Celebrity offers the "Celebrity iLounge," complete with the opportunity to experiment with the latest Apple technologies and become immersed in new applications through "iLearn" courses. Many cruise lines offer enrichment programs, but only Celebrity offers vacationers the chance to learn a new language through Rosetta Stone, become immersed in the culture of the destinations with experts from Smithsonian Journeys, or taste the difference a glass makes in comparative wine tastings with Riedel Crystal. The cruise line is leveraging its longtime icon -- the Celebrity "X" -- to communicate that the "X" is the mark of an unmatchable vacation experience, said Celebrity's Vice President of Marketing Lisa Kauffman in a release. The signature "X" displayed on the funnel of Celebrity ships is the Greek letter chi, because "Chandris" Celebrity Cruises was founded in April 1988 as a subsidiary of the Greece-based Chandris Group. The "X" also appears as part of the company's logo, in between the words "Celebrity" and "Cruises," says Marketing Daily. Read More...
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| WORLD WIDE WEB & TECHNOLOGY |
INTERNET OVERTAKES WORD OF MOUTH FOR BIZ TRAVELGoogle says two-thirds of businesses now plan their travel using search engines, with smart phone bookings rising 69 percent just last year. Nate Bucholz of Google told reporters at a conference that the internet has overtaken word of mouth as the primary medium for businesses choosing destinations.
He added that 69 percent of businesses -- compared to 63 percent of consumers -- plan travel by searching the internet, visiting an average of 22 sites before deciding on a destination.
Meanwhile, mobile travel bookings accounted for 15 percent of all reservations last year, up 69 percent from 2009, when around nine per cent used the medium, says Corporate & Incentive Travel. Read More...
TRAVEL SOCIAL MEDIA TO GET STRONGER Travellers remain most influenced by travel web sites and traditional media like television, rather than social media sites like Facebook. "The research, by Conrad Advertising, a UK company, found that while UK social media sites may be extremely popular, they are still some way from being considered the best source of holiday recommendations," says Travolution. Instead, consumers turn to time-tested sources of information like travel company web sites and travel review sites. These are seen as both the first and best sources when looking for travel advice, concludes the survey.Conrad said the finding that television, newspapers and travel websites are still the most important media does not mean companies should discount social media, but it should not be the dominant force in a campaign. The study also found age was not the major issue in who uses the internet, which is commonly assumed to be younger users more comfortable with technology.A majority of users also said they preferred online bookings because they could compare prices. Said Kieron Keady, Director of Sales and Marketing - Americas, at TravelMole Media Group: "This research illustrates the opportunity travel vendors have to leverage Facebook and other social media for sales, branding and loyalty. They have to get the content and tools up on Facebook which will help people's planning, recommending and buying process.Remember a Google key word, banner, or email type advertising usually has a 1 to 1 reach, versus when someone posts something on their Facebook wall, its seen by all their friends, around 200." Read More... HOTELIERS PUT OUT WELCOME MAT FOR SOCIAL MEDIAHoteliers, B&B owners and innkeepers are embracing online engagement with consumers to attract travelers this year, according to a TripAdvisor survey.More than half, of 57 percent expect their social media marketing budgets to increase this year over last. Other trends cited by hospitality providers in TripAdvisor's first survey of 1000 accommodation people: - Almost one-third of survey respondents plan to launch programs, for the first time in 2011, to engage with travelers using mobile devices.
- Another 27 percent indicated that they had offered such programs last year and will continue to do so this year.
- 46 percent have no plans to offer programs to engage travelers using mobile devices in 2011.
Other more traditional plans for owners to attract guests include: - Discounts on rooms - 61 percent.
- Special amenities - 36 percent.
- Rewards points - 29 percent.
- Deals on nearby attractions - 23 percent.
- Free night's stay with booking - 16 percent.
"TripAdvisor's first annual Accommodation Owners Survey suggests that the hotel industry is still being affected by a slow economy, as the majority of respondents don't foresee room rate increases this year," said Christine Petersen, president of TripAdvisor for Business. "Yet, savvy hoteliers are attempting to stand apart from the crowd by embracing social media, launching mobile marketing features and offering the programs consumers demand most." Read More...
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| PROCESS IMPROVEMENT |
Marketing Guru Seth Godin checks in this month with the following observation:
Relentlessly smaller
Some people work overtime to make their jobs smaller. If your job is smaller you're less likely to make a mistake and more likely to please your boss. But that's a pretty dumb bargain. You're exchanging your upside, energy, opportunity, growth and excitement for the freedom from thinking and a decrease in self-induced anxiety. What a shame. Read More...
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| TRAVEL INDUSTRY SOURCES | E-Turbo News and Travel Wire News Publisher: Thomas Steinmetz, Editor-in-Chief: Nelson Alcantara, Copyright © 2006 eTurbo News, Inc. All rights reserved.
eTurboNews, Inc, PO Box 208, Haleiwa, Hawaii 96712-0208 USA Ph: 1-808-521-2800 · US/Canada Toll-Free: 1-888-884-8822 Global Toll-Free: ++800-520-02800 FAX: 1-310-362-8973 www.eturbonews.com www.travelwirenews.com
TravelDailyNews International is a project of Travel Media Applications. TMA is the travel industry's leading technology company, assisting travel companies to take advantage of the Internet and new technologies. TMA owns and operates TravelDailyNews Greece & Cyprus & Travel For All, offers communication tools and services for the tourism market and represents major tourism exhibitions such as International Luxury Travel Market (ILTM).
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U.S. Travel Association: U.S.Travel News Brief 1100 New York Avenue, NW, Suite 450, Washington, D.C. 20005-3934 ustravel.org To contribute news to the U.S. Travel News Brief, contact Colby Horton, Director of Media & Content, 972-402-7001.
Ferri & Partners Marketing & Tourism Trends is provided free-of-charge to leaders in the industry by Ferri & Partners, a communications and public relations agency specializing in strategic communications and marketing. newsletter@ferriandpartners.com.
International Association of Amusement Parks and Attractions (IAAPA) member-newsletter
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| CalTIA | The California Travel Industry Association (CalTIA), incorporated in 1981, is the official voice of the California travel industry. It is an independent, nonprofit association unifying California's many travel-related businesses to ensure the future health of tourism through our collective strength and corporate activities.
CalTIA's mission is to serve as a catalyst and a voice for the various elements of our industry. It is dedicated to increasing our educational standards, articulating our political concerns, and promoting the economic well-being of California tourism. CalTIA is a partnership of action, in action! The Association serves as a vehicle to provide a united voice in support for our industry. Only through our willingness - yours - to become involved, can we effect the necessary changes and ensure the future health of our businesses, the California economy, and the California travel industry.
The organization appreciates your continued support. For more information about upcoming CalTIA activities and events and opportunities for you and your California business to get involved visit our website at www.caltia.org or call 916-932-2580.
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