Viad Corp (VVI): Marketing Mix Analysis [11-2024 Updated]

As we delve into the marketing mix of Viad Corp (VVI), you’ll discover how this dynamic company effectively combines its Product, Place, Promotion, and Price strategies to captivate a diverse audience. From its extensive range of attractions and services to its strategic marketing initiatives and pricing models, Viad Corp is poised to enhance visitor experiences and drive revenue growth. Read on to explore the intricacies of their approach in 2024.

Viad Corp (VVI) - Marketing Mix: Product

Diverse service offerings in attractions, hospitality, and transportation

Viad Corp operates through its two primary segments: Pursuit and GES. Pursuit focuses on travel and tourism, offering unique experiences through various attractions, hospitality services, and transportation solutions. In 2024, Pursuit generated $182.3 million in revenue from its attractions segment, which includes key offerings such as the Columbia Icefield Glacier Adventure and the Sky Lagoon in Iceland. The hospitality segment, which encompasses hotels and dining facilities, contributed approximately $131.2 million. The transportation services, including scenic rail and bus services, added $10.3 million.

Revenue from products includes food and beverage, retail operations

Viad Corp's product offerings extend beyond traditional attractions. In 2024, revenue from food and beverage services within its Pursuit segment reached $40.5 million, while retail operations generated $27.8 million. This diversification allows Viad to enhance the overall visitor experience and capture additional spending from guests visiting its attractions.

Key attractions include the Banff Jasper Collection, Alaska Collection, and Glacier Park Collection

The Banff Jasper Collection, Alaska Collection, and Glacier Park Collection represent significant components of Viad’s offerings. The Banff Jasper Collection attracted over 3.1 million visitors in 2024, generating $176.6 million in attractions revenue. The Alaska Collection, which includes experiences like the Denali Park Bus Tours, continues to draw substantial interest, contributing to the overall growth in the tourism sector in Alaska. The Glacier Park Collection also plays a critical role in Viad's strategy, offering unique experiences that capitalize on the natural beauty of Glacier National Park.

GES provides graphics and exhibition services, contributing significantly to revenue

GES, Viad's marketing services segment, reported a revenue increase of $148.1 million in 2024, primarily driven by strong demand for exhibition services. GES's service offerings include graphics, exhibition services, and event production, which are crucial for trade shows and corporate events. The segment's operating income for the nine months ended September 30, 2024, was $72.8 million, reflecting a robust recovery in the events sector post-pandemic.

Viad Corp (VVI) - Marketing Mix: Place

Operations primarily in North America, with a growing presence in EMEA

Viad Corp operates primarily in North America, generating approximately $647.5 million in revenue from this region for the nine months ended September 30, 2024. This represents a significant portion of their total revenue, which was $1.1 billion during the same period. The company is expanding its footprint in the Europe, Middle East, and Africa (EMEA) regions, reporting $182.5 million in revenue from EMEA for the same timeframe.

Strategic locations in popular tourist destinations enhance visibility and accessibility

Viad Corp's Pursuit division operates attractions in key tourist areas, such as national parks and iconic cities. For example, the Columbia Icefield Glacier Adventure and Skywalk, located in Jasper National Park, is a prime example of a strategic location aimed at maximizing visibility and access to tourists. The reopening of these attractions in August 2024 is expected to enhance revenue generation, especially given the seasonal nature of tourism.

Utilizes online platforms for ticket sales and service bookings

Viad Corp leverages online platforms for ticket sales and service bookings, facilitating customer access and convenience. The company's digital sales strategy has contributed to an increase in revenues, with online sales accounting for a significant portion of the total ticketing revenue. For the nine months ended September 30, 2024, total revenue from services was approximately $912.1 million, highlighting the importance of online platforms in their distribution strategy.

Partnerships with local businesses and tourism boards to drive foot traffic

Viad Corp actively partners with local businesses and tourism boards to drive foot traffic to its attractions. These collaborations are crucial for increasing visibility and attracting visitors. Such partnerships not only enhance the customer experience but also create synergies that benefit both Viad and the local economies. The company reported that partnerships have been instrumental in maintaining steady visitor numbers, especially during peak seasons.

The table above summarizes Viad Corp's revenue distribution across different regions as of September 30, 2024, illustrating the company's strong operational focus in North America while also highlighting its growth in the EMEA region.

Viad Corp (VVI) - Marketing Mix: Promotion

Digital Marketing and Social Media Outreach

Viad Corp has increasingly focused on digital marketing and social media outreach to attract visitors to its attractions and services. In 2024, the company allocated approximately $8 million for digital marketing efforts, which include targeted ads on platforms like Facebook, Instagram, and Google Ads. This strategy aims to enhance brand visibility and directly reach potential customers, resulting in a reported 15% increase in online engagement compared to the previous year.

Participation in Trade Shows and Industry Events

Viad Corp actively participates in various trade shows and industry events to showcase its services. In 2024, the company attended over 10 major trade shows, including the International Association of Exhibitions and Events (IAEE) Expo! Expo! and the Global Exhibitions Day. These events provided a platform for Viad to connect with industry professionals and potential clients, leading to a significant increase in lead generation, with over 1,200 leads captured during these events in 2024.

Seasonal Promotions and Discounts

To boost attendance during peak times, Viad Corp implemented various seasonal promotions and discounts. For the summer season of 2024, the company introduced promotions that included a 20% discount on ticket prices for families and groups. This initiative resulted in a 30% increase in ticket sales during the peak season, contributing to an overall revenue increase of $50 million during the summer months.

Collaborations with Influencers and Travel Bloggers

Viad Corp has engaged in strategic collaborations with influencers and travel bloggers to enhance brand visibility. In 2024, partnerships with over 15 influencers and travel bloggers led to the creation of content that showcased Viad’s attractions and services. These collaborations generated an estimated 2 million impressions across various social media platforms, significantly boosting traffic to Viad's website and increasing bookings by 12% as a direct result of influencer marketing efforts.

Viad Corp (VVI) - Marketing Mix: Price

Competitive pricing strategy to attract a diverse customer base

Viad Corp employs a competitive pricing strategy to appeal to a broad spectrum of customers. As of 2024, the average ticket price for attractions was approximately $43.71, reflecting a 6.7% increase year-over-year. The effective ticket price for specific attractions, such as the Columbia Icefield Glacier Adventure, was reported at $46.37. This pricing structure is designed to maximize attendance while remaining competitive against other entertainment options in the market.

Pricing varies by season, with premium rates during peak tourist periods

Pricing strategies at Viad Corp are heavily influenced by seasonality. During peak tourist periods, such as summer months, prices are adjusted to reflect increased demand. In 2023, it was noted that 79% of Pursuit's revenue was generated in the second and third quarters, indicating a significant seasonal impact on pricing. For instance, room rates during peak seasons can surge, with average daily rates (ADR) reported at $295.42, which is a 10.0% increase compared to the previous year.

Offers bundled packages for attractions, enhancing perceived value

Viad Corp enhances perceived value through bundled packages. For example, attractions such as the Jasper SkyTram and Maligne Lake Cruises are often offered together at a discount, encouraging higher overall spend per customer. This bundling strategy not only increases customer satisfaction but also drives higher revenue per visitor. The total revenue from attractions in the nine months ended September 30, 2024, was approximately $320.7 million, up from $308.1 million in the previous year.

Dynamic pricing models to optimize revenue based on demand fluctuations

Viad Corp utilizes dynamic pricing models to optimize revenue. This approach allows the company to adjust prices in real-time based on demand fluctuations. For instance, during high-demand events, ticket prices may increase significantly. The company reported a 24.5% increase in total revenue for the three months ended September 30, 2024, which can be attributed to effective dynamic pricing strategies. The revenue increase was largely driven by the successful implementation of these models, showcasing the company's ability to adapt to market conditions efficiently.

In summary, Viad Corp (VVI) effectively leverages its diverse service offerings and strategic operations to create a compelling marketing mix. With a strong emphasis on digital promotion and competitive pricing strategies, the company enhances its appeal across various customer segments. By focusing on popular tourist destinations and utilizing partnerships, Viad Corp not only drives foot traffic but also ensures a memorable experience for visitors, positioning itself favorably in the competitive landscape of attractions and hospitality.

Updated on 16 Nov 2024

Resources:

1. Viad Corp (VVI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Viad Corp (VVI)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Viad Corp (VVI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.