Industry Report - Skydive Toronto

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INDUSTRY REPORT
DATE: June 13th, 2024
CLIENT: Skydive Toronto

Industry Report: Skydiving & Adventure Tourism In Ontario

Executive Summary - BRIEF -

This report provides a comprehensive analysis of the skydiving and adventure


tourism industry in Ontario. It covers the industry’s history, current state, and
future outlook, along with key findings, trends, opportunities, challenges, and
actionable recommendations. The report aims to offer valuable insights for
businesses operating in this sector to enhance their strategic planning and
operational efficiency.

Introduction

The skydiving and adventure tourism industry in Ontario has experienced


significant growth over the past decade. This sector includes activities such as
skydiving, bungee jumping, zip-lining, and other adrenaline-pumping
experiences that attract both local and international tourists. This report delves
into the dynamics of this industry, examining market trends, competitive
landscape, and regulatory environment.

1 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Background Information: History of the Industry

Origins: Skydiving and adventure tourism have roots in military training and
recreational activities from the mid-20th century.

Evolution: Over the years, the industry has evolved with advancements in
safety equipment and training protocols, making these activities more
accessible to the public.

Current State

● Market Size: The adventure tourism sector in Ontario is valued at


approximately CAD 500 million annually.
● Key Players: Major operators include Skydive Toronto, Niagara Freefall,
and Skydive Ontario.
● Customer Demographics: Predominantly young adults (ages 18-35), with
a growing interest among older age groups as well as the newest;
○ Millennials
○ Gen Z

Future Outlook

● Growth Projections: The industry is expected to grow at a compound


annual growth rate (CAGR) of 5% over the next five years.
● Technological Innovations: Emerging technologies such as virtual reality
(VR) experiences are anticipated to enhance customer engagement.

2 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Regulatory and Legal Issues

● Safety Regulations: Governed by Transport Canada and the Canadian


Sport Parachuting Association (CSPA).
● Environmental Concerns: Increasing focus on sustainable tourism
practices.

Market Trends and Competitive Landscape: Market Trends

● Increased Demand for Unique Experiences: Consumers are seeking


more personalized and unique adventure experiences.
● Reposition Value Proposition of Brand: New customer bases means
more versatile value of your brand. (CSR) or Corporate Social
Responsibility is beginning to now lead buying decisions in the market.
● Digital Marketing: Social media and online booking platforms are critical
for reaching potential customers → #TheCustomerExperience
● Sustainability: Eco-friendly practices are becoming a significant selling
point.

Competitive Landscape

● Key Competitors: Analysis of major players, including their market share,


strengths, and weaknesses.
● Market Entry Barriers: High initial investment costs and stringent safety
regulations.
● #TheCustomerExperience: From beginning-to-end, the customer now
wants to taste, touch, feel and live the brand as well as the experience

3 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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prior to buying. Entitlement and more options provide new demographics
power in choice.
● Customer Loyalty: Importance of brand reputation and customer
reviews.

Opportunities

● Emerging Technologies: Adoption of VR and AR to enhance the


adventure experience.
● Partnerships: Collaboration with travel agencies and hospitality providers
to offer package deals.
● Expansion: Potential to expand into new geographic markets within
Ontario and beyond.
● Transparency: Everyone knows what your business does, how you do
business … Begin Go-To-Market Strategy by ‘Starting With Why’. Why
should anyone choose your brand, your business, to give you money over
your competitor…? Trust. Customers want to know who they are giving
their money to, having a brand that is human, has a face, a story, a
background and “WHY THE BRAND IS IMPORTANT TO THEM” is how net
new business is won and lost.

Challenges

● Safety Concerns: Ensuring the highest standards of safety to prevent


accidents.
● Seasonality: Weather-dependent nature of the business causing
fluctuations in demand.

4 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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● Regulatory Compliance: Keeping up with changing regulations and
standards.

Recommendations

1. Enhancing Customer Experience


a. Personalization: Offer customized adventure packages to cater to
individual preferences.
b. Technology Integration: Invest in VR and AR technologies to provide
immersive experiences.
2. Marketing Strategies
a. Digital Presence: Strengthen online marketing efforts through social
media and SEO.
b. Customer Engagement: #TheCustomerExperience, Transparency,
‘Repositioning of Value To The Market’ & the development of loyalty
programs and gathering customer feedback for continuous
improvement.
3. Operational Efficiency
a. Staff Training: Regular training programs to ensure staff are
up-to-date with safety protocols and customer service skills.
b. Sustainable Practices: Implement eco-friendly practices to appeal
to environmentally conscious consumers.
4. Strategic Partnerships
a. Collaborations: Partner with local businesses, tourism boards, and
international travel agencies to expand reach and attract more
tourists.

5 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Conclusion
The skydiving and adventure tourism industry in Ontario presents numerous
opportunities for growth and innovation. By focusing on enhancing customer
experience, leveraging emerging technologies, and adopting sustainable
practices, businesses can position themselves for long-term success in this
dynamic sector.

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6 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Industry Report: Skydiving & Adventure Tourism In Ontario


DATE: June 13th, 2024
CLIENT: Skydive Toronto

Executive Summary - FULL REPORT -

This comprehensive report delves into the skydiving and adventure tourism
industry in Ontario, highlighting key growth drivers, challenges, emerging
trends, and opportunities. The aim is to provide stakeholders with actionable
insights to enhance strategic planning and operational efficiency. The report
begins with an overview of the industry, followed by an in-depth examination of
market dynamics, competitive landscape, and regulatory environment. The
final section offers specific recommendations aimed at improving business
outcomes.

Introduction

The skydiving and adventure tourism industry in Ontario has witnessed


substantial growth, driven by an increasing consumer interest in unique and
adrenaline-fueled experiences. This sector encompasses activities such as
skydiving, bungee jumping, zip-lining, and other adventure sports that attract
both local and international tourists. This report aims to provide a
comprehensive understanding of the industry, highlighting its current state,
historical context, and future prospects.

7 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Background Information

History of the Industry

Origins: The roots of skydiving and adventure tourism trace back to military
training exercises in the mid-20th century, gradually evolving into recreational
activities.

Evolution: Over the years, advancements in safety equipment, training


protocols, and marketing strategies have made these activities more
accessible and appealing to the general public.

Current State

Market Size: The adventure tourism sector in Ontario is currently valued at


approximately CAD 500 million annually, with skydiving contributing a
significant portion.

Key Players: Prominent operators include Skydive Toronto, Niagara Freefall,


and Skydive Ontario, each offering a range of services and experiences.

Customer Demographics: The primary demographic includes young adults


aged 18-35, with a growing interest among older age groups and families.

Future Outlook

8 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Growth Projections: The industry is expected to grow at a compound annual
growth rate (CAGR) of 5% over the next five years, driven by increasing
consumer demand and technological innovations.

Technological Innovations: Emerging technologies such as virtual reality (VR)


experiences are anticipated to enhance customer engagement and attract a
broader audience.

Regulatory and Legal Issues

Safety Regulations: The industry is governed by stringent safety regulations


set by Transport Canada and the Canadian Sport Parachuting Association
(CSPA).

Environmental Concerns: There is an increasing focus on sustainable tourism


practices to minimize environmental impact.

Market Trends and Competitive Landscape

Market Trends

Increased Demand for Unique Experiences: Consumers are increasingly


seeking personalized and unique adventure experiences that provide a sense
of thrill and accomplishment.

9 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Digital Marketing: The use of social media platforms and online booking
systems has become crucial for reaching and engaging potential customers.

Reposition Value Proposition of Brand: New customer bases means more


versatile value of your brand. (CSR) or Corporate Social Responsibility is
beginning to now lead buying decisions in the market.

Sustainability: Eco-friendly practices are gaining importance, with consumers


favoring operators that demonstrate environmental responsibility.

Competitive Landscape

Key Competitors: Analysis of major players reveals strengths in service variety,


safety records, and customer satisfaction. Market share distribution is
relatively balanced among top operators.

Market Entry Barriers: High initial investment costs, stringent safety


regulations, and the need for specialized training and equipment pose
significant barriers to new entrants.

#TheCustomerExperience: From beginning-to-end, the customer now wants to


taste, touch, feel and live the brand as well as the experience prior to buying.
Entitlement and more options provide new demographics power in choice.

Customer Loyalty: Building and maintaining a strong brand reputation and


positive customer reviews are critical for customer retention and loyalty.

10 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Key Factors Driving Growth

Several key factors are driving the growth of the skydiving and adventure
tourism industry in Ontario:=

Rising Consumer Interest: There is a growing appetite for adventure and


unique experiences among consumers, particularly millennials and Gen Z. This
demographic is increasingly seeking out activities that provide a sense of thrill
and accomplishment, driving demand for skydiving and other adventure sports.

Technological Advancements: Innovations in safety equipment, such as


advanced parachute systems and automatic activation devices, have
significantly improved the safety and appeal of skydiving. Additionally, the
integration of virtual reality (VR) and augmented reality (AR) technologies is
enhancing the overall experience, attracting more participants.

Marketing and Social Media: Effective use of digital marketing and social
media platforms is increasing visibility and engagement with potential
customers. Adventure tourism operators are leveraging these platforms to
showcase thrilling experiences, share customer testimonials, and engage with
a broader audience.

Economic Factors: An increase in disposable income and a focus on


experiential spending are contributing to higher participation rates. As
consumers prioritize spending on experiences over material goods, the
demand for adventure tourism activities continues to rise.

11 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Major Challenges

The skydiving and adventure tourism industry in Ontario faces several


significant challenges:

Safety Concerns: Ensuring the highest standards of safety to prevent


accidents and maintain consumer confidence is paramount. Operators must
invest in regular maintenance of equipment, comprehensive training programs
for staff, and adherence to strict safety protocols.

Seasonality: The weather-dependent nature of the business leads to


fluctuations in demand, affecting revenue stability. Operators must find ways to
mitigate the impact of seasonality, such as diversifying their offerings or
developing indoor facilities.

Regulatory Compliance: Keeping up with changing regulations and maintaining


compliance can be resource-intensive. Operators must stay informed about
regulatory updates and invest in necessary adjustments to meet compliance
requirements.

High Operational Costs: The costs associated with equipment, training,


insurance, and marketing are substantial, impacting profitability. Operators
must find ways to optimize operational efficiency and manage costs
effectively.

12 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Emerging Trends and Opportunities

The future of the skydiving and adventure tourism industry in Ontario is shaped
by several emerging trends and opportunities:

Adoption of VR and AR: Integrating virtual and augmented reality into


adventure experiences can enhance engagement and attract tech-savvy
consumers. VR and AR technologies can provide immersive pre-jump
experiences, safety training simulations, and augmented reality enhancements
during the jump.

Sustainable Practices: Implementing eco-friendly practices and promoting


sustainability can appeal to environmentally conscious consumers. Operators
can adopt measures such as using biodegradable materials, minimizing
carbon footprints, and supporting local conservation efforts.

Partnerships and Collaborations: Forming strategic partnerships with travel


agencies, hospitality providers, and local businesses can expand reach and
offer comprehensive adventure packages. Collaborations can also lead to
cross-promotional opportunities and increased customer loyalty.

Expansion into New Markets: Exploring new geographic markets within Ontario
and beyond can drive growth and diversify revenue streams. Operators can
identify untapped regions with potential demand for adventure tourism and
develop targeted marketing strategies to attract customers.

Recommendations

13 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Enhancing Customer Experience

Personalization: Develop customized adventure packages to cater to individual


preferences and enhance the overall experience. Personalized experiences can
include tailored itineraries, special add-ons, and exclusive services.

Technology Integration: Invest in VR and AR technologies to provide immersive


and innovative experiences. Operators can create virtual tours, offer VR training
sessions, and incorporate AR elements into the adventure activities.

Marketing Strategies

Digital Presence: Strengthen online marketing efforts through social media


engagement, search engine optimization (SEO), and influencer partnerships.
Operators can leverage platforms like Instagram, Facebook, and YouTube to
showcase thrilling experiences and engage with potential customers.

Customer Engagement: Implement loyalty programs and gather customer


feedback to continuously improve service offerings. Loyalty programs can
include rewards, discounts, and exclusive offers for repeat customers.

Operational Efficiency

14 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Staff Training: Conduct regular training programs to ensure staff are up-to-date
with safety protocols and customer service skills. Well-trained staff can
enhance the overall customer experience and contribute to a safer
environment.

Sustainable Practices: Adopt eco-friendly practices to reduce environmental


impact and appeal to sustainability-conscious consumers. Operators can
implement measures such as recycling, energy-efficient operations, and
supporting local conservation initiatives.

Strategic Partnerships

Collaborations: Partner with local businesses, tourism boards, and


international travel agencies to expand reach and enhance service offerings.
Collaborations can lead to cross-promotional opportunities, joint marketing
campaigns, and bundled adventure packages.

Conclusion:

The State of the Skydiving & Adventure Tourism Industry in Ontario

The skydiving and adventure tourism industry in Ontario is poised for continued
growth, driven by rising consumer interest in unique experiences, technological
advancements, and effective digital marketing strategies. However, the
industry faces significant challenges, including safety concerns, seasonality,
regulatory compliance, and high operational costs.

15 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Emerging trends such as the adoption of VR and AR technologies, sustainable
practices, and strategic partnerships present substantial opportunities for
innovation and expansion. By focusing on enhancing customer experience,
leveraging technology, and forming strategic collaborations, businesses can
position themselves for long-term success in this dynamic sector.

The future outlook for the industry is promising, with growth projections
indicating a steady increase in participation and revenue. To capitalize on
these opportunities, businesses must remain agile, continuously adapt to
changing consumer preferences, and prioritize safety and sustainability. By
doing so, they can build a resilient and thriving adventure tourism sector that
continues to attract and delight adventure seekers from around the world.

To thrive in this competitive landscape, businesses must focus on enhancing


the customer experience, leveraging emerging technologies, and adopting
sustainable practices. Strategic partnerships and collaborations can also play
a crucial role in expanding market reach and offering comprehensive adventure
packages. By implementing these recommendations, businesses can position
themselves for long-term success and contribute to the growth and
development of the adventure tourism industry in Ontario.

Moreover, the industry must continuously monitor and adapt to emerging


trends and consumer preferences. This includes staying ahead of
technological advancements, embracing sustainability, and fostering a culture
of innovation. By doing so, businesses can not only meet the evolving demands
of adventure seekers but also set new standards for excellence in the industry.

16 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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The role of government and regulatory bodies is also pivotal in shaping the
future of the industry. Supportive policies, streamlined regulations, and
incentives for sustainable practices can create a conducive environment for
growth. Collaboration between industry stakeholders and regulatory authorities
is essential to address challenges and foster a safe, sustainable, and thriving
adventure tourism sector.

The skydiving and adventure tourism industry in Ontario is characterized by its


vibrant growth and dynamic nature. The increasing demand for unique and
adrenaline-fueled experiences presents a significant opportunity for
businesses to expand and innovate. However, the industry must navigate
several challenges, including safety concerns, seasonality, regulatory
compliance, and high operational costs.

In conclusion, the skydiving and adventure tourism industry in Ontario holds


immense potential for growth and innovation. By leveraging key growth drivers,
addressing challenges, and capitalizing on emerging trends and opportunities,
businesses can achieve sustained success and contribute to the overall
development of the sector. The journey ahead is filled with exciting
possibilities, and with the right strategies and partnerships, the skydiving and
adventure tourism industry in Ontario can soar to new heights.

REPORTS TO FOLLOW: (SCROLL DOWN)

“Influence of Millenials and Gen Z’ Social Media & Digital Engagement On


‘Adventure Tourism’ Marketing In Ontario”

“Influence of Gen Z’s Social Media & Digital Engagement On Habits.”

17 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Influence of Millenials and Gen Z’ Social Media & Digital


Engagement On ‘Adventure Tourism’ Marketing In Ontario

Introduction

The rapid growth of social media and digital platforms has revolutionized how
businesses market and promote their services. In the adventure tourism sector,
operators in Ontario have adapted their strategies to align with the distinct digital
engagement habits of Millennials and Generation Z (Gen Z). This report explores the
specific social media and digital marketing strategies adopted to attract and engage
these demographics.

Millennials' Digital Behavior

Social Media Usage: Millennials are avid users of social media platforms such as
Facebook, Instagram, and Twitter. They use these platforms to discover new
experiences, share their adventures, and connect with like-minded individuals.

Content Sharing: This demographic values sharing their life experiences through
photos, videos, and stories, often seeking validation and engagement from their social
networks.

Influencer Following: Millennials tend to follow influencers who resonate with their
interests and lifestyles, relying on their recommendations for travel and adventure
activities.

18 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Marketing Strategies for Millennials

Influencer Partnerships

Collaborations: Adventure tourism operators partner with influencers who have a


significant following among Millennials. These influencers create and share content that
showcases the adventure experiences, providing authentic reviews and endorsements.

Sponsored Content: Influencers post sponsored content, including photos, videos, and
blogs, highlighting their experiences with the adventure tourism operator. This content
often includes promotional codes or special offers for their followers.

User-Generated Content (UGC) Campaigns

Contests and Challenges: Operators run social media contests and challenges
encouraging customers to share their adventure experiences using specific hashtags.
This generates a wealth of user-generated content that can be reposted by the operator.

Feature Customer Stories: Highlighting customer stories and testimonials on the


operator’s social media channels creates a sense of community and trust. It also
provides authentic content that resonates with potential customers.

High-Quality Visual Content

Professional Photography and Videography: Investing in high-quality visual content,


such as professional photos and videos of adventure experiences, helps attract and
engage Millennials. This content is shared across social media platforms to showcase
the thrilling nature of the experiences.

19 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Instagram Stories and Reels: Utilizing Instagram Stories and Reels to share
behind-the-scenes footage, customer testimonials, and highlights of the adventure
activities keeps the audience engaged and interested.

Interactive Social Media Engagement

Live Streams and Q&A Sessions: Hosting live streams and Q&A sessions on platforms
like Instagram and Facebook allows operators to interact directly with their audience,
answer questions, and provide real-time insights into the adventure experiences.

Polls and Surveys: Engaging the audience through polls and surveys on social media
helps gather feedback and understand customer preferences, which can be used to
tailor marketing strategies and service offerings.

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Influence of Gen Z’s Social Media & Digital Engagement On
Habits

Gen Z's Digital Behavior

Platform Preference: Gen Z prefers platforms like Instagram, TikTok, Snapchat, and
YouTube, which emphasize visual and short-form content.

Authenticity and Relatability: This demographic values authenticity and relatability in


the content they consume. They are drawn to real, unfiltered experiences and are
skeptical of overly polished or commercialized content.

20 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Influencer Impact: Gen Z is heavily influenced by social media influencers and content
creators who share authentic and engaging content.

Marketing Strategies for Gen Z

TikTok and Instagram Reels

Short-Form Videos: Creating short, engaging videos on TikTok and Instagram Reels
that showcase adventure activities, highlight unique experiences, and capture the
excitement of the adventures. These videos often feature trending music, hashtags, and
challenges to increase visibility and engagement.

User-Generated Challenges: Launching challenges on TikTok and Instagram Reels that


encourage users to participate and share their own adventure experiences. This not only
generates content but also creates a sense of community and involvement.

Authentic Influencer Collaborations

Micro-Influencers: Partnering with micro-influencers who have a smaller but highly


engaged following. These influencers are perceived as more relatable and trustworthy
by Gen Z.

Behind-the-Scenes Content: Collaborating with influencers to create behind-the-scenes


content that provides an authentic look at the adventure experiences, including
preparation, safety measures, and personal reactions.

Interactive and Immersive Content

21 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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Virtual Reality (VR) Previews: Offering VR previews of adventure experiences allows


Gen Z to get a taste of the adventure before booking. This immersive content can be
shared on social media and the operator’s website.

Interactive Stories and Polls: Utilizing Instagram Stories and Snapchat to create
interactive content such as polls, quizzes, and behind-the-scenes glimpses. This keeps
the audience engaged and encourages them to interact with the brand.

Engagement through Relatable Content

Relatable Narratives: Crafting content that tells relatable stories and highlights the
personal journeys of participants. This resonates with Gen Z’s desire for authenticity
and real-life experiences.

Memes and Trends: Leveraging popular memes and trends relevant to Gen Z to create
humorous and relatable content that captures their attention and encourages sharing.

Conclusion

Millennials and Gen Z have distinct social media and digital engagement habits that
significantly influence the marketing and promotion strategies of adventure tourism
operators in Ontario. By understanding and catering to these behaviors, operators can
effectively reach and engage these demographics, driving growth and enhancing brand
loyalty.

22 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024


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For Millennials, strategies such as influencer partnerships, user-generated content
campaigns, high-quality visual content, and interactive social media engagement are
key to capturing their attention and encouraging participation in adventure tourism
activities.

For Gen Z, leveraging platforms like TikTok and Instagram Reels, collaborating with
authentic influencers, creating interactive and immersive content, and producing
relatable narratives are essential to appeal to their preferences and drive engagement.

By adopting these targeted marketing strategies, adventure tourism operators in Ontario


can successfully attract and retain Millennial and Gen Z customers, ensuring sustained
growth and a strong presence in the competitive adventure tourism market.

23 - THE DIGITAL BRAND AGENT - CONFIDENTIAL - SkyDiveToronto - 2024

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