26 MAR 2019: At the recent Connect Conference in Kissimmee, Randy Garfield spoke eloquently of ‘change’ and how to succeed in a changing industry. The retired president of Walt Disney Travel and EVP Worldwide Sales and Travel Operations Disney Destinations, has worked in almost every segment of our industry including volunteer DMO board leadership roles in California and Florida, as well as at Brand USA and Destination Canada, and has had an unique opportunity to see our industry change and morph while closely observing how companies and individuals successfully adapt, or, in some cases, fail. The subject is fascinating and Randy Garfield agreed to share some of his thoughts with our readers.

In a rapidly evolving and increasingly connected world, it’s vital to us in the travel industry to not just anticipate, but more importantly to embrace change – which is inevitable, unavoidable and not only critically important, but essential to our survival as individuals and companies.

“Change can be driven by the external environment – like natural disasters, increased competition, a global economic meltdown, or even terrorist attacks. It can be as simple as getting a new boss or losing or gaining a new client.” Says Garfield.

“Or, it can come from a desire for continuous improvement – like growing your business, enhancing your marketing, or leveraging new technology.”

Even when we initiate positive change, he says, it can still be difficult … even painful. To succeed today – suggests Garfield – we have to get comfortable with being uncomfortable.

He reminds us of the (not so distant) days before the Internet, and before travel agency automation -do you remember hand written tickets, printed boarding passes, ticketing plates, Official Airline Guides, system timetables and the Hotel Resort Index.

Today, most travel agencies have transitioned from their long standing business model that was primarily reliant on airline commissions, to one that has a balanced portfolio of leisure products, tours and cruises and even service fees. The construct for meeting planners, DMOs and DMCs has changed as well.

The path to success isn’t about catching up or keeping up, Garfield maintains, “It’s about staying ahead of the consumer, anticipating demand and innovating ways to meet clients where they’re going. That’s what it takes to survive as the world continuously changes. That’s what we have to get comfortable with. And it can certainly be uncomfortable.”

He uses Ford as an example. Henry Ford believed so strongly in the Model-T that he refused to consider changes until General Motors came along with something bigger and better. Ford was forced to shut down its plant for a year to retool and build the Model-A. That allowed GM to become a serious competitor, and it soon overtook Ford with its strategy of market segmentation which appealed to a wider range of consumers. GM took the lead in auto sales – and has kept it for most of the hundred-year rivalry between Ford and GM.

When the world changes, and consumer behavior evolves, companies must stay ahead of those changes. The question becomes not how good the product or service is, but how good it is in relation to the current environment.

“Doesn’t that apply to us today?” asks Garfield.

“Thanks to technology, we operate in a dramatically different environment than we did 10 years ago … or even five. Today you have websites optimized for laptops, tablets and smart phones instead of a one size fits all approach.”

The lesson of MySpace vs Facebook

He uses the popular (in 2003) MySpace as an example. In 2005, News Corp bought MySpace for US $580 million. A year later, it was the top social network in the country – and there it stayed until 2008, when an upstart called Facebook grabbed the lead.

In the next three years, MySpace lost millions of users and both co-founders. It laid off the majority of its staff, and quickly became a distant memory. News Corp sold it for US $35 million – a fraction of the purchase price six years earlier.

What happened?

A combination of over-confidence, under- performing technology, strategic missteps, and a failure to evolve with the social media world it had helped create. It didn’t survive because it couldn’t change.

Meanwhile Facebook was nimble. It responded to user input, ideas and requests constantly … allowing itself to be shaped by what the masses wanted it to be.

One telling example – when Facebook decided to go international, it built a translation feature for users, and 90 percent of the site was translated into French within 24 hours.

By contrast, MySpace hired a large international staff and deployed them into several countries. Then it had to lay them off when the company failed to grow outside the US.

It’s worth repeating says Garfield, “To stay on top, it’s not how good the product or service is, but how good it is in relation to the current environment, competitive offerings and consumer expectations.”

Surviving and thriving

Garfield says he believes the trick to both survive and thrive in a changing industry and world, is to run toward the crisis rather than away from it.

“Accept change, anticipate it, embrace it, be an advocate for it and take a positive leadership role in it. When you become a change agent, never underestimate the importance of managing the discomfort of change for your staff and colleagues, and of gaining other advocates who are also sincerely committed to making the change – and not simply complying to avoid your criticism.”

Radical change

Sometimes radical change is necessary. And radical change can lead to radical success.

Successful people make the most of every opportunity … and there’s a golden opportunity to make a difference in times of change.

Steve Jobs is a good example of a disruptive leader, leading disruptive changes.

Jobs was a college dropout. He was both notoriously difficult and incredibly inspiring. He found visionary new ways to merge technology and creativity and thought about everything he ever did in a radically different way. He was relentless in pursuing his vision of the future – anticipating what consumers would want, even if they couldn’t imagine it themselves.

And because of his disruptive approach to innovation, he revolutionized several industries in his relatively short lifetime – from personal and tablet computing – to music – phones – and even movies.

Garfield noted, “As just one example think about how we buy and listen to music these days – it’s remarkable that in my life time it’s morphed from 78, 45 and 33 rpm records, to reel to reel tapes, to 4 and 8 track cartridges to cassettes, compact discs and now it’s digital where we can literally carry thousands of downloaded tracks on our phones or mobile devices or better yet have them streamed live to us.

“The same is true regarding how TV shows are distributed and how movies are consumed outside the theatres. Home video has also morphed and today along with live TV, streaming is king with satellite and cable TV operators dealing with the impacts of ‘over the top’ programming.

“Later in his career, Steve became the co-founder and CEO of Pixar Animation Studios, and he’s credited as the executive producer of the movie “Toy Story.” which showcased the intersection of CGI and incredible creativity.

“When Disney purchased Pixar, we were honored to have him on our board of directors.”

Another well-known agent of radical change was Walt Disney – a radical dreamer, and a disruptive innovator over many decades. A pioneer in the film and television industries Disney, unexpectedly lost the rights to his first animated character – Oswald the Lucky Rabbit. He was devastated, but quickly came up with his next star, Mickey Mouse. A smarter businessman the second time around, he protected the licensing and intellectual rights surrounding Mickey.

And then he made history with him. Disney combined his gift for great storytelling with the latest advancements in technology, and Mickey became the star of the first successful animated short with synchronized sound – “Steamboat Willie.”

It was a breakthrough in the silent-film era – nobody else had been able to fully synchronize sound with animation – and it set Disney on a path to success.

In 1937 came “Snow White and the Seven Dwarfs” – the first full-length, animated feature film – another industry breakthrough using a brand-new, innovative technology which added a sense of depth and dimension. It was also the first motion picture to have a fully integrated merchandise program when it premiered, and the first to release a soundtrack. It’s still one of the highest- grossing American movies in history.

Disney’s radical changes led to radical success in the film industry, and he also made his mark in publishing, licensing and the new medium of television, and then risked it all to pioneer a concept that no one else had thought of – theme parks.

Today the thriving global theme park industry exists in its current form because of Disney’s pioneering efforts in creating Disneyland in 1955. It was a dramatic departure from the amusement parks of his era, because it immersed visitors in some of the most beloved stories of all time, and it gave them “a magical new way to have fun and make memories.”

That one Disney theme park has grown into a 20 plus billion dollar business for The Walt Disney Company, which includes twelve parks on three continents, 55 resort hotels around the world, a cruise line, tour companies with both Adventures by Disney and Walt Disney Travel Company, and a timeshare business with members in 100 countries and every state in the United States.

Garfield says, “We all have an incredible opportunity right now to further enhance our marketing impact by taking strategic advantage of technology, CRM and segmentation. One thing I learned in my career was how to use technology effectively and that includes today’s more robust data filled electronic warehouse equivalent of what we used to call a rolodex card and using the web for each and every element of the marking and sales mix: advertising, publicity, promotions, sales and communication with our clients and prospects. At Disney, we didn’t call it CRM but instead called it C- M-R, for Customer Managed Relationships, because we believed our guests manage how they interact with us, rather than the other way around.

“It was our belief that no one owns the Guest, but somebody always owns the moment. And the idea of making every moment magical was vitally important to all of us, just as it is to each of you.”

Garfield says that as you learn more about your clients and your target audiences you can ensure that they have all the right information to help them make the best decisions possible. You are a vital part of both the demand generation and customer service part of this process.

“The magic starts when they engage with you to help them choose a destination, or plan and book their vacations or meetings. You own those moments with these prospects or clients.”

If you think about successful travel brands – the smart ones inspire an emotional connection with people of all ages. They are not trying to be relevant for just one moment, but for a lifetime of moments, through the many stages of customers’ lives.

“Each of you are consumer-centric and place a high value on your clients, travellers and in some cases the suppliers you partner with. It’s a proven approach that has worked and that foundation will continue to succeed in the years ahead.”

Meaningful Change

Change solely for the sake of change cannot work… change must be meaningful to be impactful.

There’s not a one-size-fits-all approach when it comes to innovation. We each have to know what it looks like in our jobs and our organizations.

Companies need to focus on the changes they need to make to stay relevant, to keep people engaged with their brand and the products they sell. They cannot be content with the status quo, and in the spirit of continuous improvement must be prepared to continually evolve.

But, notes Garfield things don’t always work out like you want them to. Despite research and best intentions, even respected brands sometimes make mistakes just like anyone. Despite the best intentions, periodic mistakes are bound to happen along the way.

When Disneyland Paris opened in 1992, they initially decided not to serve beer and wine in the park and required that all male Cast Members be clean shaven. That was a significant cultural misstep, and even after changing course and responding to what guests wanted, it took a while for them to overcome the fallout from that issue.

The secret to success is to look for smart ways to change – easier said than done, but well worth the effort to get it right.

Only you know the right changes for your business, he says, but we all know that technology continues to be a significant factor that pushes us in new directions.

When the Internet became prevalent, seemingly infinite information was suddenly available to anyone with a computer. Financial analysts and travel agents thought it meant the end of their business, thanks to do-it-yourself consumers and a few suppliers who were very shortsighted and overly aggressive in disadvantaging trade channels.

“I believed then and I still do today that there’s never been a better time to be a travel agent, meeting planner or work for a destination marketing organization. Consumers in the planning and buying cycle need professional assistance now more than ever to wade through the ever-increasing volume of competitive offers and promotions and to pick the ones that are right for them.” Says Garfield.

Consumers have certainly learned to use the web as a planning tool. They’ve also discovered that for complicated or expensive trips they can spend hours and hours doing internet research themselves and then end up right back at the same place – just that little unsure about making an expensive travel decision.

As more people realize their time is a precious commodity, they also realize that professional advice from an expert adds significant value to their lives.

Location. Location. Location

It really doesn’t matter anymore where your agency or travel business is located. With the Internet, geographic boundaries disappear. They have gone from Main Street to having a national and international presence. Small agencies and large now can compete on the same playing field – the web. And they became accessible to anyone in the world, 24/7.

That change morphed the concept of outside sales agents and dramatically broadened it to launch home-based agencies – many of which specialize in various sectors of the industry – cruise, weddings, theme parks, destinations and much more. It also gave suppliers the ability to reduce capital expenses and improve employee morale by having more contact center employees work from the comfort of their own home.

So that was a breakthrough and a paradigm shift for everyone in the travel industry. And it was followed by social media. This is not an area where any of us can afford to fall behind, because it evolves all the time, and we have to evolve with it. Consumers certainly do.

Technology is a critical enabler for this industry.

“The travel business is a dream-making business whether you work in the leisure or meetings/corporate segments. Each and every one of us are dream makers helping clients create memories and accomplish personal and professional goals that they’ll cherish for a lifetime. That’s an incredible responsibility and one which you can be proud of.”

The paradox of time.

The paradox of our time in history is that we have taller buildings, but shorter tempers; wider freeways, but narrower viewpoints, said Garfield and these are just a few of the other examples he cited.

• We have bigger houses and smaller families; more conveniences, but less time;
• We have more degrees, but less sense; more knowledge, but less judgment; more experts, but more problems.
• We have multiplied our possessions, but reduced our values. We talk and text too much, love too seldom, and hate too often.
• We’ve learned how to make a living, but not a life; we’ve added years to life, not life to years.
• We build more computers to hold more information to produce more copies than ever, but have less meaningful communication.
• These are days of two incomes, but more divorce; of fancier houses, but broken homes.

And, he concluded, “In an era when people crave more time with family, friends and loved ones, what better industry to be in than one that’s 100% focused on bringing people together?

“So, to thrive we need to look around every corner for the possibilities, and get comfortable with being uncomfortable as we turn in new directions. It’s an inspiring journey.

“Here’s to many more decades of revolutionary change, unavoidable discomfort and legendary success, working together.”