The influence of images on the choice of destination

Travel and photography have long been intertwined. Photographs seem to concretize experiences and allow them to be shared. But with the Internet, the notion of “sharing” has taken on a new dimension. We used to show our photo albums to friends and family or hold a slide show on our return from a trip. Now the presentation of travel pictures has moved from the private to the public domain, and often in close to real time, with instant messaging, online photo albums, blogs and social networks.

Travel photos shared with friends on Facebook can be very persuasive. According to Skyscanner, a flight comparison site, more than half (52%) of Facebook members say that photos uploaded by friends inspire them to book a holiday in the same location. As noted by Sam Baldwin of Skyscanner, viewing our friends’ travel photos on Facebook plants a seed in the mind and gives us travel ideas.

A study by HRS.com and eResult on hotel selection criteria reveals that photographs have the greatest influence on 78% of respondents, after online client reviews (67%) and star ratings (59%).

Matching images to customer segments

At the ITB Berlin Congress in March 2011, Markgraf and Scheffer presented the results of their marketing communication study and showed how they applied their findings to images in advertising brochures. Working on the assumption that up to 95% of our decisions are subconscious—arising from our personality, values, needs and desires— they concluded that a tourism ad aimed at the family should emphasize harmony and the interaction between family members, and depict a place where family members are happy in one another’s company. The images below, for this type of market, show the evolution of the visual imagery.

Source : Neuromarketing at REWE Touristik

The following illustration shows the same exercise for a different market: financially comfortable couples 40 and older without children, in search of an aesthetically sophisticated, quality establishment.

Source : Neuromarketing at REWE Touristik

Using images to advantage

Tourism Australia created a map of the country from photos or “experiences” of travellers in Australia. This approach encourages Internet browsers to plan their visit inspired by the photos and comments of Australian travellers (click on the link below the image for a better grasp of the concept).

Source : Tourism Australia

The Room 77 website does for hotel rooms what Google Street View does for streets: it allows users to locate a specific hotel room (upstairs, near an elevator, etc.) and to get a glimpse of the view it offers with a photo or image. To date, Room 77 has mapped approximately 460,000 hotel rooms in the United States, London and Vancouver. The database is also available as a mobile app.

Source : Room 77

Websites can display 360° panoramas, geotag them, and provide a links to related sites (a destination, for example). Certain restrictions apply, depending on the portal. The 360 Cities website, with one of the Web’s largest collections of panoramic photos, is directly linked to Google Earth.

Parc national des Grands-Jardins on 360cities.net via Google Earth.

Show what you have to offer…but just that

Technology offers endless possibilities. But visitors who have been burned by doctored and misleading images exert a strong influence on sites like TripAdvisor and other review portals. The following examples appeared in the Business Insider blog. Click on the link to view various publicity images juxtaposed with the harsher reality.

Source: Oyster dans Business Insider

Cover all the key sites

Finally, according to a survey conducted for the review site TripAdvisor, 92% of respondents are more likely to book an accommodation when there is a detailed description that includes photographs. Hotels have a vested interest in displaying their own information and images on TripAdvisor, in the section reserved for them, as well as on sites like Google Addresses and Facebook, and, of course, their own site.

Sources:

- Blodget, Kelsey et Jennifer Garfinkel. «Here’s Why You Should Never Trust The Photos Hotels Post Online», Oyster dans Businessinsider.com, 3 mars 2011.

- Craig, Daniel Edward. «How to optimize Your TripAdvisor Listing», ehotelier.com, 25 mai 2011.

- Guerrier-Buisine, Vanessa. «Selon le portail de réservations HRS, les photos ont plus d’impact que le «bouche à oreille» lors de la sélection d’hôtels», Tendancehotellerie.fr, 4 mars 2011.

- Koumelis, Theodore. «“Facebook factor” inspires 52% to book a Holiday, reports Skyscanner», traveldailynews.com, 25 février 2011.

- Lo, Iris Sheungting, Bob McKercher, Ada Lo, Catherine Cheung et Rob Law. «Tourism and online photography», Tourism Management, vol. 32, no 4, juin 2010, p. 725-731.

- Markgraf, Ingo et David Scheffer. «Trends and Innovations in Marketing Communication and Advertising», Congrès ITB Berlin, 9 mars 2011.

Sites Internet:

- 360cities.net

- Google Earth

- Room 77

- Tourism Australia

- TripAdvisor

Throughout our nearly 15 years of hotel Internet marketing experience, we have been consistently concerned about the increasing level of disparity between savvy Internet/Mobile marketers in hospitality and travel, and the Internet/Mobile Marketing-inept players in the industry.With the advent of social media in recent years, Web 2.0 technologies and the mobile Web, this disparity has accelerated dramatically.

On one side there are the extremely Web-savvy:

• Online travel agencies like Expedia, Travelocity, etc.
• Most major hotel brands’ e-commerce departments
• Airlines
• Some e-commerce departments at smaller and mid-size hotel and resort chains
• Some very bright individuals at the marketing departments of full service hotels, resorts and casinos

On the other side there is everybody else, which unfortunately means the majority of hospitality executives and sales and marketing professionals.
HeBS defines “Web Marketing Ineptitude” as the lack of hands-on experience in Internet marketing and all of its formats: website re-designs, SEO optimizations, search marketing, email marketing, strategic linking, banner advertising and online sponsorships, social media and Web 2.0 and more recently, mobile marketing. In addition, this ineptitude also indicates a lack of understanding of best practices and latest trends in the direct online channel.

In the 1990s, it was “normal” that only a few hospitality and travel marketers were proficient in the online channel.  Less than 3% of travel reservations in the U.S. were booked online back in 1999. In the 2000s (in 2001, online travel bookings reached 5.4% of all travel reservations in the U.S.), hospitality marketers and the major hotel brands began to pay closer attention to the Internet channel. In the years that followed, Internet travel adoption increased dramatically and in 2009 alone over 55% of all travel reservations in the U.S. will be online (45% of all hotel reservations) to the tune of a staggering $116.1 billion (eMarketer).

Yet, to our dismay, over the past 15 years the level of Internet marketing expertise in the hospitality industry has not kept up with this remarkable growth. On the contrary, we are witnessing whole new generations of hospitality executives and marketing professionals who are unfamiliar with Internet marketing in general as well as best practices and trends in the direct online channel.

This problem has been exacerbated by a) the social media and Web 2.0 phenomena, and b) mobile marketing. Both of these new marketing and distribution channels introduced an entirely new level of complexity and skill set requirements, as well as new best practices and trends.

• Social Media have changed how customers plan and purchase travel, how customers access information, and how customers perceive the credibility of information. How can hoteliers create/monitor/take advantage of the social media “chatter” around the hotel, target receptive audiences, and ultimately stimulate hotel website visits, interactions and bookings? What type of Web 2.0 and interactive features and functionality do you need on the hotel website?

• Mobile Web is expected to surpass the traditional Web within the next five years. The promise of “immediate, anywhere and anytime” Internet access, instant information and transaction capabilities, location-based services and personalization are some of the key factors for the “explosion” of the mobile Web. Hotel guests–past, current and potential–are increasingly becoming mobile-ready and hoteliers have to respond adequately to this growing demand for mobile services. This is the reason why hoteliers and travel marketers need to have robust mobile Web initiatives in place, including mobile brand websites, mobile apps, m-CRM and mobile marketing.

Why Is There a Growing Web Marketing Ineptitude in the Industry?

There are many reasons for this “Web Marketing Ineptitude” among the ranks, but here are some of the most important:

Franchised Properties:

• Many major brands control all Internet marketing initiatives at the corporate level, including property-level initiatives, thus depriving staff at the property from any meaningful experience in Internet marketing.

• We have seen a trend among small/mid-size chains to establish small but vital e‑commerce departments. In many cases, these companies outsource whatever online marketing they do to outside vendors. Here again, when outsourcing, they make a crucial mistake by not demanding professional development to be part of the Internet marketing vendor’s responsibilities. This results in Internet marketing expertise not being disseminated to the properties in the process.

Independent Hotels and Resorts:

• The biggest concentration of Internet marketing knowledge is at this level.

• Many big full-service hotels and resorts have some form of in-house Internet expertise. However, due to staff turnover and constantly decreasing budgets, these properties tend to have a very spotty Internet expertise retention rate.

• Smaller hotels and resorts are most vulnerable due to limited budgets and difficulties with hiring and retaining employees with expert knowledge.

Destination Marketing Organizations (DMOs) and Convention and Visitor Bureaus (CVBs):

• These organizations boast some of the brightest Internet marketing stars and some of the most inept marketers.

• In many cases among DMOs and CVBs, ignoring Internet marketing best practices is not even a matter of budget size, but a result of inertia and commitment to traditional advertising formats.

• The government or quasi -government nature of CVBs and tourism offices does not help with the hiring and retention of Internet expertise.

So What Is the Verdict?

HeBS believes there are different levels of Web Marketing Ineptitude in the industry regarding three important marketing media: Traditional Web, Social Media/Web 2.0 and Mobile Web. Here are our estimates of the ineptitude rates in each of these media:

Internet Marketing/Traditional Web

• Nearly 15 years of existence of the traditional Web

• Internet Marketing Ineptitude rate in hospitality:  65%

Web 2.0/Social Media Marketing

• Nearly 5 years of existence of social media

• Web 2.0/Social Media Marketing Ineptitude rate in hospitality:  90%

Mobile Marketing/Mobile Web

• Nearly 10 years of existence of Mobile Web but in reality, the Mobile Web in the U.S. exploded with the introduction of the first iPhone in June 2007.

• Mobile Marketing Ineptitude rate in hospitality:  97%

Conclusion

Hoteliers should strive to gain a crystal-clear understanding of what the best practices and latest trends are in hospitality Internet marketing: what works, what doesn’t, and why. Hoteliers should recognize that they do not have all the answers in-house and that there are thought leaders and other proven industry experts who can help them and their property stay competitive in these economic times, preserve and increase market share, and generate the highest website revenues and ROIs.

Hoteliers should take a hard look at how Best Industry Practices are being utilized by their corporate offices or major brands, as well as by the hotel’s Internet marketing vendors. Almost 15 years after the first online hotel booking, best practices have been established in practically every aspect of hotel Internet marketing. Hoteliers should not allow their Internet marketing vendors to “learn the business on the hotel’s dime.”

The prospect of professional development should become the main criterion when choosing an Internet marketing vendor.  Hoteliers should hire experts who are able and willing to teach the hotel and staff best practices and keep the hotel appraised of the latest direct online channel trends.

Hoteliers should work only with Internet marketing experts who can help them acquire new core competencies and adopt best industry practices in the direct online channel. 

They should provide crucial professional development as well as guide the hotel’s direct Internet marketing strategies, online brand building strategies, e-CRM, website re-design and SEO optimization, search and email marketing, social media and mobile marketing initiatives.

What is CRM?

The goal of CRM is to collect as much information about one’s clients as possible, and to combine these individual pieces of information into targeted, personalized marketing initiatives in order to recruit and retain clients and encourage them to spend more.

Interhome and the reassessment of previous practices

Interhome has offices in 20 countries. Each year, it rents over 20,000 vacation homes and apartments to over 500,000 guests, for over 7 million overnight stays and sales of 120 million euros.

In order to promote an inventory of this size to such a large number of potential clients, Interhome uses a variety of communication, promotion and sales methods including distribution networks, advertising, a sales force, catalogue, and the internet. Although the company’s management team believes this number of methods is unavoidable, it is also convinced that using them prevents it from developing an accurate assessment of the profile and habits of its clients.Reflecting on this fact, Interhome’s managers began to ask themselves whether the impressive catalogues listing all the available homes were, in fact, relevant or effective. Producing them involved costs which were not necessarily offset by the relatively low reservation (or conversion) rate. The company also realized that client‑related information was distributed throughout a number of databases.

Know your client

It was then that Interhome decided to invest in CRM in order to consolidate and improve its client‑related information. This new database stores three different kinds of information:

1. history of the consumer’s contact with the company (catalogue orders, reservations, comments and complaints, etc.);
2. data collected during each consumer contact (visiting the site, requesting information, reserving a home, etc.) regarding his/her vacation preferences;
3. complementary information obtained via surveys (lifestyle, purchasing habits, household composition, habits and leisure activities, etc.).

Thanks to this information, Interhome was able to develop a system that creates a profile for each customer. These profiles list the customer’s profile, his/her loyalty index and the complete history of his/her interactions with the company.

The information this system records includes:

• prior expenditures
• preferred destinations
• preferred travel periods
• favourite type of accommodation
• family situation: number of children and their ages
• leisure activities, interests and motivating factors
• preferred method of communication

CRM enables companies to gather the information they need to create detailed consumer profiles which they can then use to implement marketing strategies based on personalized offers.

1‑to‑1 marketing

In order to bring consumer preferences in line with their offer, Interhome developed a new method of classifying residences based on the client’s stated preferences: spa, family, sports, comfort, pleasure, rest, snow and dream destination.

Interhome analyzed the client profile in order to identify the product categories likely to interest him/her. It then analyzed the characteristics of each vacation home (location, accommodation capacity, price, availability, etc.) so it can propose to each of its clients places that are perfectly suited to their preferences.

Henceforth, instead of receiving an exhaustive catalogue, the client receives a brochure listing no more than 8 prospective residences that both fulfill his/her requirements and are available during his/her preferred travel periods. This also enables Interhome to prioritize homes that will generate the highest profit margins.

This personalized brochure is either mailed or e‑mailed depending on the customer’s stated preferences. Automatic follow‑ups are generated by the system and all reservations can be made through Interhome’s website. It goes without saying that all action (requests for information, reservations, etc.) generated by this mailing will be added to the client’s profile, thus further increasing Interhome’s effectiveness.

Telling results!

Lehmann emphasized that the cost per reservation is 10 times lower with the personalized, or “1 to 1” marketing approach than it is with the undifferentiated, catalogue approach. Some of the results he mentioned are as follows:

1. a 30% reservation rate following a request for information (as opposed to a 7% rate with the catalogue);
2. the average rate is one reservation for every 12 direct mail messages, a higher‑than‑average conversion rate for direct marketing;
3. significant savings on postage, since two‑thirds of mailings are done electronically;
4. a savings of 500,000 euros on the cost of printing catalogues;
5. because the company was able to prioritize homes that would generate the highest profit margins as well as profitable complementary sales (transportation, car rentals, ski tickets, trips, packages, etc.), revenue per reservation increased by up to 30%;
6. every year, over 200,000 new client‑related information items are added to the database.

During his presentation, Lehmann did not reveal how much his company spent to develop such an effective CRM system but the results he presented lead one to believe that the move was a profitable one.

Will other tourism companies follow suit?

Many tourism companies have already gathered a significant amount of information about their clients and a number of these companies would probably benefit from adopting the same type of CRM that Interhome did. After all, client data is a gold mine; once data is collected, all the company has to do is put the data to work to make its marketing efforts more targeted and effective.

Source:

* Lehmann, Simon, “Best Practices in CRM & Personalisation, 1 to 1 Marketing @ Interhome,” PhoCusWright conference – ITB Travel Technology, Berlin, March 8, 2007.

The goal of network‑based marketing is to increase (or create) awareness of a product or service by taking advantage of social connections between consumers – through either word‑of‑mouth or viral marketing (see also: Le marketing viral, le bon vieux bouche‑à-oreille revisité). However, over the past few years, a new factor has emerged with the increase of web‑based social networks and the many possibilities they represent.

The proof is in the study results

In a recent study of a telecommunications company that was launching a new internet service, two different ad campaigns were carried out: one aimed at potential clients identified by demographic and geographic characteristics, and another aimed at people in contact with current internet service users. The study showed:

• The people who were part of an existing client’s network were 3.4 times more likely to adopt the new service;
• The people who were identified as potentially interested AND who were part of an existing client’s network were five times more likely to try it;
• People who were part of the existing client’s network BUT who did not seem to be potential clients were roughly three times as likely to choose the new service.

The results of this study suggest, in general, that a company can find more buyers for its products by tapping into the network of its current clients. It is also true that the results of network‑based marketing can be influenced by other factors and may vary depending on the product or service in question. For instance, a new and exciting product is likely to generate more buzz. However, the basic truth is that social networks represent a new avenue worth exploring in the search for potential clients.

Clearly, the e‑commerce company Amazon has grasped this concept (see below).

Web 2.0 opportunities

In addition to traditional social networks, the increasingly popular virtual networks have become a mine of information for marketing experts eager to make a connection between a product and a common interest among internet‑users. For example, social networking sites such as MySpace, Friendster and Facebook, and personalized Web pages (MyYahoo) are proof of connections between individuals and hence provide vital information for network‑based marketers. Blogs also attract people with common interests and often provide links to other blogs, thereby creating vast social networks.

Major players have their own means of gaining access to other networks. For example, eBay recently acquired Skype, a free internet telephony and videoconferencing software company, so it can find out who is talking to whom!

Local applications of the trend

Although obviously not all local tourism companies can join forces with MySpace or Skype, here are some action items which will help them take advantage of the network‑marketing phenomenon:

• In your client database, enter any information on your clients’ interests they have given you: whether or not they ski, like fine dining or are interested in regionally‑produced gourmet products, etc. This kind of information can help you define your position with respect to social networks.
• Conduct direct marketing campaigns by encouraging people to pass a message on to their friends (such as contests they can invite people on their contact list to take part in).
• Watch out for instances where people are talking about your company online. Identify the networks and set up a Web presence there.
• Make sure your clients are truly satisfied with their experience. A significant percentage of your clients will be members of a social network and will probably talk to their contacts about their experience.
• Go a step further and invite your clients to tell their contacts about you through sites such as TripAdvisor or by sending virtual postcards.

Create your own web‑based social network

These days, marketing is all about innovation, so why not create your own online community? A new business has sprung up which enables tourism companies to do just that, and it may well inspire a number of copy‑cat versions. Holiday Smilers is aimed primarily at resorts and provides a personalized online space where the company’s clients can create their own profile and talk to other clients, whether past, present or future. The site is set up to enable people to exchange photos of their experience, discuss common interests, ask for suggestions, etc. Members can share their vacation experience with friends by inviting them to become members.

Whether this kind of community is run by a third party (such as Holiday Smilers) or operated by the company itself, it still offers many advantages for a tourism organization. Some of the benefits include client loyalty, the ability to create a personalized vacation product through contacts with other clients (chat forums, organized group activities, photo sharing), the opportunity to e‑mail special offers and, above all, positive word‑of‑mouth referrals.

Resorts are a good example because, due to the very nature of the offer, the buyers of this kind of product tend to meet each other. However, the idea also has great potential for other kinds of businesses as well. After all, as long as people have interests in common, there are opportunities for networking!

Sources:

- Hill, Shawndra, Foster Provost and Chris Volinsky, “Netword‑based Marketing: Identifying Likely Adopters via Consumer Networks,” Statistical Science, 2006, vol. 21, No. 2.
- Hospitality Trends, “Netword‑based Marketing: Using Existing Clients To Help Sell to New Ones,” January 2007.
- Online: http://www.holiday-smilers.com/?&=eng

Start with a Website

The first basic principle is that no business is ever too small for a website. Many web design tools do not even require specialized computer knowledge. This accessibility is just one reason that the number of online blogs has mushroomed in the last year (over 100 million).

However, the best solution is to call on the services of a web design firm, who will be able to produce professionally looking content that delivers the desired result. By the way, not all site design techniques are created equal. It is crucial that the selected supplier be well-versed in tourism marketing. On average, a small inn would need to set aside a budget of $2,000 to $4,000 for the design and creation of a website.

Search engine optimization

If a site is well designed, it will be easily found by search engines. However, there are many strategies for increasing site traffic. The technique of search engine optimization can be very effective, but it may be too expensive for organizations with limited budgets.

Another, less expensive, way to increase visibility is to get other sites to include links to yours. Link popularity is an important criterion used by search engines like Google and Yahoo when ranking sites in search results. Incoming links to a site are interpreted as a “vote of confidence” by search engines and are considered in placement rankings. In a Google search using the same terms, this can make the difference between appearing on page 1 or page 10. Regardless of the strategy used, time is also an important factor. Often, the longer a site has been online, the more success it enjoys with search engines.

Develop networking opportunities

One does not need an enormous marketing budget to build online business connections, simply some time. Here are some strategies for increasing the number of sites with links to yours:

• Explore and identify the main points of contact with potential customers. Place a link to your organization on sites containing some tourism-related content such as your local business development centre, a directory of small hotels and inns, a tourist attraction in your region, a snowmobile club, your regional tourism association, etc.
• Create links on sites frequented by potential customers, even if they are not exactly travel-related (e.g., a bird club, wedding planner, chamber of commerce, etc.).
• Target only high-quality sites relevant to both your product and your clientele.
• Ensure your website address is clearly visible in all your communication tools, especially your email signature.

One way to assess the performance of your referencing strategy and the true contribution of your business partners, in terms of incoming links, is through tracking tools such as Alexa. This site instantly supplies very pertinent data on any website, completely free of charge. As an example, we used Alexa to analyze the site for Auberge des Falaises in Charlevoix (Illustration 1). Although not an exact science, Alexa produces statistics like traffic generated, number of pages visited, percentage increase in the past three months, etc. If a site generates enough traffic, one can also get graphs illustrating the breakdown of visitors and visits during a specified time period.

Illustration 1

The Related Links section in particular contains highly relevant information to help you better understand the influence of other sites in relation to your organization. Alexa draws up a list of the sites that send visitors to your site (Illustration 2). This data enables you to quickly see which sites send the most visitors and their traffic ranking, whether you are familiar with these sites or unaware of their existence.

Illustration 2

Finally, it is interesting to find out where else your visitors browse. If you have a lot of traffic but very few transactions, this information will give you a better idea of where your lost customers are going. You will also find out more about your potential customers’ interests. In our example, the most popular site among browsers of the Auberge des Falaises site was that of the Corporation du parc régional du mont Grand-Fonds (Illustration 3).

Illustration 3

Convert visitors into customers

The ultimate goal of attracting a visitor to one’s site is obviously to encourage this potential customer to make a reservation. However, according to search engine statistics, only 3.7% of visits to hotel websites translate into a sale. What usually makes the difference is the site’s professional appearance and usability.

The firm eMarketer has published a ranking of the best online marketing tactics, as well as the worst performing, according to a survey of tech-savvy online advertisers (Figure 1). Paid search ads and house email lists are the two methods that received the highest ranking. On the other hand, sending emails using rented lists was relatively ineffective.

Figure 1

Email segmentation

If you operate a small business, segmenting your email lists may be an effective marketing strategy. Purchasing email lists from specialized distributors may well be beyond your means and this strategy offers mixed results at best, so the ideal solution is to build your own email list.

Segmenting your list means grouping current and potential customers together by what they have in common: interests, purchasing behaviour, demographics, etc. Compiling this data enables you to more effectively target your efforts, adapt your message and obtain a better response rate than you would with blanket email marketing initiatives. On average, specialized firms that conduct such email campaigns charge anywhere from $15 to $150 per month, depending on the size of your list.

Regardless of the company’s size, a well-segmented house email list can encourage customer loyalty and increase sales, convey information relevant to the needs of potential customers, and create a high-quality channel of communication with customers.

There are many tools and strategies available to business owners; one has only to adopt them and use them effectively. We live in an era when the role of technology is to further the development of small business, not hinder it. With a minimum of investment, some good advice, several hours of research, a little curiosity and a dash of resourcefulness, you will be well positioned to market your business like the big players.

Sources:
- eMarketer. “What Works, and What Doesn’t, in Online Marketing,” February 7, 2007.
- Goodman, Gail. “Email Segmentation for Small Businesses,” iMedia Connection, August 30, 2006.
- Husin, Linda. “Booking Is the Keyword,” ehotelier, November 29, 2006.
- Salerno, Neil. “So, You Have a New or Improved Hotel Web Site – Now What – How to Promote Your Web Site,” HotelOnline, November 2006.
- Salerno, Neil. “Production Benchmarks for Your Hotel’s Web Site,” HotelOnline, August 2006.
- Max Starkov and Jason Price. “Strategic Linking in Hospitality: Build a Robust Link Popularity,” HotelOnline, September 2006.

What is a tween?

“Tween” is a marketing term used to describe preteens ages 9 to 14. Straddling childhood and adolescence, they have a foot in both worlds. When it comes to technology, they rule: they are online longer, adopt and master new technologies faster than adults and participate in a wider variety of online activities. In Canada, 85% of tweens have access to a computer, 82% to a video game system, 25% to an iPod or MP3 player and 16% have a cell phone (this number rises to 26% among 12 to 14 year-olds).

While their favourite medium is still television (50%), 27% of American 9 to 14 year-olds watch it on the internet. Figure 1 lists their favourite online activities.

Purchasing power and influence on family decisions

Spending by tweens has doubled every decade for the past 30 years. In the US today, between spending their own money and influencing their parents’ purchasing decisions, this segment controls or influences approximately US$260 billion in spending. According to the BRANDchild study (conducted by Millward Brown among 2,000 young people ages 9 to 14 years in several countries), tweens influence 80% of their parents’ brand purchases.

In 2005, there were approximately 2.5 million tweens in Canada and their average annual income was CAN$1,155. This means they controlled CAN$2.9 billion of their own money in addition to influencing another CAN$20 billion in family purchases.

It is this financial power that differentiates tweens from earlier generations; never has this age group exercised such influence. The generation is populous enough to ruin a brand it does not like or catapult another to success by adopting it. The influence of tweens is particularly noticeable when it comes to choosing a restaurant, groceries and even cars, but they can also affect travel-related decisions:

• Over 40% of young people believe they have some or a lot of influence when it comes to choosing a vacation destination.
• Although only a small percentage of tweens feel they have a strong influence on hotel choices, 59% believe they have some influence. Also, 20% of parents say they “always or sometimes” ask for their tween’s opinion when selecting a hotel.
• Tweens believe they influence the planning of vacation activities 55% of the time.

They may be plugged in, but do they shop online?

Surprisingly, tweens and teens are shopping online in increasing numbers, thanks to prepaid gift cards. Major companies now offer prepaid credit cards designed especially for young people. The Visa Buxx card is just one example and can be used everywhere Visa is accepted, particularly online!

Receptiveness to advertising

Young people in the United States, Australia and Great Britain see an average of 20,000 to 40,000 commercials per year and spend 60% more time in front of the television than at school. Two surveys conducted by The Harris Interactive Youth and Education Research Group in May 2006 offer more insight into young people’s attitudes towards advertising:

• Tweens attach a great deal of importance to objects and brands “cool.”
• Friends have a tremendous influence on their preferences and they want what their friends have. Their consumer choices are also influenced by advertising.
• More than earlier generations, tweens are very receptive to celebrity-driven advertising.
• Young people say they are most influenced by television commercials (54%), magazine ads (23%) and movie-theatre commercials (19%).
• Advertisements for food seem to attract the most attention from tweens.

Generally speaking, marketing specialists use the strategy of treating tweens like teens. The marketing industry has forced children to grow up faster and studies show that those aged 11 and older no longer consider themselves children.

Ethical debate

There is a major debate concerning the ethics of tween-oriented marketing. By treating these young people like mature, independent consumers, advertisers are taking parents out of the decision-making process and thereby making children more susceptible to unhealthy messages about body image, sexuality, relationships and violence. This is an emotional issue that creates sharp divides. Although the tourism industry is less involved in such marketing, it is important to be aware of the issues.

Some tourism examples

In terms of the tourist experience, tweens are often too old for activities aimed at children and too young for teen and adult activities. Very few tourism-based businesses offer products specifically for tweens. However, some businesses have adapted their products for this segment.

Club Med offers two programs designed for 11 to 17 year olds: Junior Club Med, which supervises young people and organizes group activities (beach volleyball, trapeze, trampoline, sailing, inline skating, tennis, etc.), and Club Med Passworld, an exclusive new zone with special high-tech equipment. Specially-trained counsellors facilitate the discovery of new activities designed specifically for them and encourage their development and socialization.

Some Four Seasons hotels (Atlanta, New York, London, Chicago, Philadelphia and Toronto) have added a youth concierge to their service teams to deal specifically with tweens and teens. These hotels have also conducted focus groups with tweens in the aforementioned cities to identify cool things to do locally. They now have an updated idea of this clientele’s preferences and interests. These hotels also provide special amenities to this customer category, offering things like popcorn, recent magazines and films, an indoor pool, and balanced meals designed especially for them. For its part, the Ritz Carlton in South Beach, Miami, provides a tech centre for tweens and teens.

Finally, the Florida tourism portal lists activities aimed at tweens, like scuba diving, an indoor rink for roller-skating and skateboarding and water skiing.

Be among the first!

Given their economic muscle, tweens will no doubt continue to be targeted by businesses. In addition, since relatively few tourism businesses target this clientele in particular, doing so would probably provide a competitive edge. A few suggestions for reaching this market segment:

• Carefully analyze their likes, dislikes and influences, to offer products and services tailor-made for them.
• Speak their language: tweenspeak is the system of abbreviations, symbols, icons and numerals used for text messaging and in chat rooms. This new language enables them to communicate with each other around the world without even speaking the same language!
• Keep wait times to a minimum. Although no longer interested in colouring, tweens still don’t have much patience.
• Offer cool products traditionally aimed at older customers, but ensure they are closely supervised to reassure parents.

Sources:
- Business Wire. “iGillottResearch Finds Significant Opportunities for Wireless Devices in the Tween Segment,” July 22, 2005.
- De Mesa, Alycia. “Marketing and Tweens,” Business Week Online, October 12, 2005.
- eMarketer. “What Do Kids, Tweens and Teens Do Online?” www.emarketer.com, October 10, 2006.
- Lindstrom, Martin. “Branding Is No Longer Child’s Play!” Journal of Consumer Marketing, Vol. 21, No. 3, 2004.
- Martin, Suzanne. “Advertising to Youth: What Youth Want And What Advertisers Need to Know,” Trends & – Tudes, Harris Interactive, Vol. 5, No. 7, August 2006.
- Media Awareness Network. “Special Issues for Tweens and Teens,” www.media-awareness.ca.
- Shohan, Aviv and Vassilis Dalakas. “He Said, She Said, They Said: Parent’s and Children’s Assessment of Children’s Influence on Family Consumption Decisions,” Journal of Consumer Marketing, Vol. 22, No. 3, 2005.
- YTV, Corus Media. “2002 YTV Tween Report: Special Kidfluence Edition” and “Winter 2006–YTV Kids Trend Report.”

Turn an improvised strategy into an effective one

Starting with some general information (e.g. the typical guest at a small inn or hotel is a leisure tourist who has selected this type of lodging for its ambience and personalized service, and more often than not, these customers reserve by phone) and doing a little background work (defining the target audience, determine distinctive features, etc.), a business can begin the marketing process. Simply check off the appropriate boxes:

Table 1: Traditional Marketing

Although the internet is not currently the means by which most small inn and hotel guests make their reservations, it is still a primary source of information. More and more people are automatically turning to the Web when they need to find or recommend a place to stay.

While the internet offers a sea of opportunities, there is also the danger of drowning in it. For this reason it is not enough to have a Web presence; the site must also be searchable. However, understanding how search engines work is a complex task requiring time and expertise. At the same time, because these engines evolve and change along with the competition’s positioning, there must be a strategy for periodically reviewing the process.

Trying to compete with the major players on their own territory is a waste of time, so small inns and hotels are better off using other methods. Instead of associating the site with the most popular terms typed into search engines, focus on those used by the target audience. For example, many such people will refine a search by typing “Saguenay inn” rather than “Quebec hotel.” Another option is to sponsor a link on the search result page of a local festival. The wonderful world of the Web is at your service:

Table 2: “Online” Marketing

Improve and assess the effectiveness of methods used

Once again, to make a product stand out from competing major hotel chains, one must innovate and adopt original presentation methods (visuals, ways of communicating, etc.).

• Clearly define the target audience so reach it effectively
• Develop a specific niche (such as family parties, company activities, honeymoons, special events, etc.)
• Establish partnerships with companies – even those outside the industry – to develop an unusual product or innovative marketing strategy

To measure the validity of promotional efforts and retain only the most effective measures, ask guests where they found about the establishment and how they made their reservation.

Sources:
- Carroll, William J. et al. “A Comprehensive Guide to Merchandising Bed and Breakfast Inns,” Cornell University, School of Hotel Administration, The Center for Hospitality Research, CHR Tools, No. 8, August 2006.
- Hursh, Patricia. “Winning Big with a Small Search Marketing Budget,” [searchenginewatch.com], August 28, 2006.

The life cycle of a destination: from discovery to decline

There are five different traveller profiles in Stanley Plog’s model: from venturers to dependables. According to Plog, these various tourist personality types are associated with phases in a destination life cycle because the type of tourist who visits a region indicates the area’s level of development, and in some ways determines its life cycle. Figure 1 illustrates the various phases in a tourist area’s life cycle (TALC), which were developed by R.W. Butler, Ph.D, in 1980.

Figure 1

Source: Stanley Plog
 
 

Discovery
During this phase, a little known destination is visited by the first venturers in search of new discoveries and unexplored areas. Through word-of-mouth, the area begins to attract more tourists.

Discovery – Development
Once venturers have begun exploring a destination, they are followed by near-venturers. This creates the first major wave of visitors who – because they are more demanding in terms of services – initiate real development.

Development
With the destination’s notoriety growing, the media, always looking for something new, show up in the region and enthusiastically report on its charm and cachet. This then “condemns” the destination to rapid growth and the arrival of so-called centric travellers. Growth continues and everyone is happy: the number and value of hotels increases; jobs multiply; government coffers overflow with taxes; many areas are enhanced; local stakeholders smugly congratulate themselves on finding a gold mine and believe that tourism is the perfect industry to ensure longevity and unlimited growth. By this time, venturers and near-venturers have abandoned the area and mass tourism has arrived.

This phase is crucial because when a destination is really booming, no one cares about planning or controls. For this reason, it is important to take action at this stage to manage development and define a long-term vision.

Maturity – Decline
Riding this wave of popularity, a destination is too often lax in its regulations: the number of hotels continues to grow; fast-food restaurants pop up everywhere; shops, movie theatres and other forms of entertainment multiply; wholesalers develop packages. The area starts to get “touristy” and there is unchecked development. The destination is unable to resist the easy money of tourism and unsustainable development. Under such pressure, the destination loses its distinctiveness and looks like any other destination. The centrics now stop coming and the near-dependables start to frequent the area. According to Plog, if 30% or more of a destination’s reservations come from package deals, the destination has begun a decline that will last for several decades.

Decline
Despite the boom, decline is now inevitable. The destination now only attracts dependables, who prefer to visit and revisit well-established known quantities. Though often more loyal, this clientele spends less, stays a shorter time and is less active. The destination becomes less lucrative. Deserted by the other tourist segments, the market gets smaller. Managers don’t understand what has happened because arrivals kept rising. The destination must then try to differentiate itself and reposition itself in the market.How many times has this happened? Emerging destinations suddenly become popular and then are ignored as travellers head to newly discovered destinations. Over-crowding leads to decline and a different traveller clientele, and then everything changes!

Obviously, Plog’s model does not apply to every destination, but it does provide food for thought. Furthermore, a destination may find itself in a different position on the curve depending on whether one is considering local, regional, national or international travellers.

Can decline be overcome?

According to Michael Leven, a 45-year hotel-industry veteran, only an earthquake can revive a product at the end of its life cycle. One way to overcome decline is for a destination to develop a new product to give itself a boost or reposition itself and change its marketing strategy. As an example, Leven points to the cruise industry, which languished for many years and then successfully rallied by developing products to meet the needs and preferences of different types of travellers, from Antarctic cruises to classic luxury cruises to thematic cruises.

The case of Costa Rica

A group of researchers from the Cornell University School of Hotel Administration used Plog’s model to examine the profile (behaviour and preferences) of American travellers to Costa Rica. From 1999 to 2003, the number of tourists in Costa Rica grew 20%, with Americans accounting for the biggest jump, 30%. The country’s beautiful landscape make it one of the most popular destinations in Central America and it definitely attracts more international travellers than its neighbours (Belize, Salvador, Guatemala, Honduras, Nicaragua and Panama).

With such an increase in tourist arrivals, one would say the destination is in the development phase. The study findings confirm this as well, indicating that the country is becoming more popular with centrics and that fewer near-venturers are visiting now. If Costa Rica wants to continue riding this crest, it must orchestrate its growth so as to avoid excessive or inappropriate development, because it enjoys a high profile as an ecotourism destination.

Plog’s model applied to US visitors to Canada

Although statistics show Americans are travelling abroad in record numbers, the drastic drop in their numbers to Canada could signal the decline of Canada as a destination. On the other hand, perhaps the exchange rate, the price of gas and upcoming heightened security measures are the only reasons behind this dip. Still, near-dependables and dependables (who make up the smallest percentage of the population) may continue to visit Canada, while the centrics (who make up a majority of the population) will abandon it for more exciting or attractive lands. It may be time for Canada to start courting other American states, revamp and reposition its product for its neighbours or even target other clienteles.

Maintain attractiveness, or perish!

If there were a magic formula, many destinations would have adopted it long ago. However, once a destination understands how the life cycle works, it can control development and maintain its ideal position. Here are a few suggestions:

• Understand what makes the destination attractive and capitalize on its features and distinctiveness
• Develop new products that reflect travellers’ changing socio-demographics and values
• Become familiar with the profile of tourists
• Plan and control development
• Preserve the original character of spaces
• Do not allow business to call the shots
• Orchestrate marketing for the target clientele
• Encourage locals to take part in the success of the experience (after all, residents don’t want to lose their quality of life and the things that make their community special)

According to Stanley Plog, destinations that do not plan their development are only harming themselves – by losing the charm that attracted venturers in the first place!

Sources:
- Enz, Cathy A. et al. “Competitive Destination Planning: The Case of Costa Rica,” Cornell University, Center for Hospitality Reports, Vol. 6, No. 12, October 2006.
- Plog, Stanley. “Why Destination Areas Rise and Fall in Popularity,” Cornell Hotel and Restaurant Administration Quarterly, Vol. 42, No. 3, June 2001.
- Weiermair, Klaus. “Le vieillissement – Une réalité qui s’impose aux destinations touristiques,” Espaces, No. 235, March 2006, p. 18-20.

What is RSS?

RSS (Really Simple Syndication) feeds enable internet users to quickly pick up information of their choosing, on their computers, where they can consult it at their convenience. RSS technology is attractive to managers because now they have an efficient way to communicate directly with consumers who interested in receiving precisely their type of information (see illustration).

An XML-based format, RSS is used to distribute various types of web content, particularly sales promotions, news items, statistics, etc., and can only be picked up by a program known as a feed reader or aggregator. Many providers such as Netvibes, NewsGator and My Yahoo! offer this type of service free of charge.

To receive an RSS feed, all you have to do is click and drag the XML button (usually orange) to the aggregator. You can either download a piece of software to automatically pick up new RSS feeds or create a personalized homepage for this.

Once you have subscribed to the feed, you simply wait for the desired information to be sent directly to the reader, in the form of headlines. If something interests you, simply click on the link to open the page. Consumers can receive the information they want, without wasting time and without having to sort through an overloaded inbox.

RSS and the travel industry: A match made in heaven

For many consumers, the internet is the best way to find low-cost travel products and services. However, it takes time and effort to find good deals. RSS technology could well change browsing habits as users gain new control over the kind of the information they receive and its relevance. RSS is part of the Web 2.0 trend towards the intuitive use of simplified, interactive applications that enable consumers to tell businesses what they want. Many travel industry players have quickly adopted this new way of communicating with customers. For example, online agencies like Lastminute, Expedia and Orbitz now offer their clientele automatic updates of all new deals as soon as they are posted.

Expedia is going the next step by offering customers personalized web pages. After filling out their profile, consumers receive RSS feeds on flights and products that truly interest them. Alerts are also available on homepages like My Yahoo!, My AOL and Google Homepage. Even meta-search engines are getting into the act; for example, Mobissimo is now available as an RSS feed, enabling users to access its search tool from their Netvibes homepage.

For web users, RSS feeds are not simply useful for finding bargains. They can also provide information such as travel blog updates, travel-related news, destination reviews and weather reports from their upcoming holiday location.

Still in its infancy, yet promising

As fantastic as they sound, RSS feeds are only known and used by a small percentage of web users. According to a survey conducted by Media Buyer Planner in August 2006, just 11% of US workers were familiar with RSS feeds and a mere 2% used them. Adoption rates are climbing rapidly among “heavy users” (those who go online 11 times or more per week) and as of April 2006, 14% of such users said they used RSS feeds.

However, RSS use is expected to grow as more and more content providers of all kinds start offering the service. Mass usage will probably happen when RSS feed readers come standard with internet browsers and operating systems like Windows.

RSS can also benefit marketers

Now that RSS has become a “given” for a growing number of internet users, it is also a powerful marketing tool. However, unlike other web marketing strategies, RSS feeds put consumers in control. Here are some tips for using RSS feeds to market your product or service:

• Become familiar with how the various feed readers operate. They are not all the same. For example, some display only a headline for the RSS feed while others display a more complete version of the text. You have to know how content is being presented in the feed to assess its effectiveness.
• Provide a value-added message, don’t just sell a product. For example, hotels could inform interested consumers of room deals at hotels in their favourite destinations.
• Keep your content creative and new. Like a constantly running news wire, your information will cease to interest consumers if it is not updated regularly.
• Build a relationship with customers. RSS technology offers a golden opportunity to communicate effectively with potential customers because they have specifically asked to receive the information. In addition, you do not have to worry about spam filters or trust issues.
• Select and define your public carefully. Unlike email campaigns, the audience of RSS feeds is much smaller and narrowly targeted. It is essential to know the target segment well so you can properly adapt your message.

As they have done for other Web 2.0 developments, managers can take the time to analyze the situation and gradually discern the best avenues for their companies. However, things are evolving very quickly and it may be wise to understand the direction in which innovations affecting their sector of activity are heading so they are ready to climb on board when the time is right.

Sources:
- Belcher, James. “Really Seldom Syndication,” eMarketer [www.emarketer.com ], August 28, 2006.
- eMarketer. “What Do ‘Heavy Users’ Do Online?” [www.emarketer.com ], August 30, 2006.
- Flitter, Bill. “Tips for Marketing with RSS,” iMedia Connection [www.imediaconnection.com ], May 12, 2006. – Hodson, Mark. “Introducing the Travel Genie,” The Sunday Times [travel.timesonline.co.uk ], March 5, 2006.
- Hotelmarketing.com. “Expedia Introduces RSS Based Travel Services,” [www.hotelmarketing.com ], May 3, 2006.
- Hrastnik, Rok.”The 7-Step RSS Marketing Plan,” RSS Marketing [rssdiary.marketingstudies.net ], July 25, 2005.
- Lieb, Rebecca. “Real-Life RSS Marketing,” ClickZ [www.clickz.com], July 1, 2005.

Recognizing the importance of DMOs

Working in an industry composed primarily of small and medium-size businesses, DMOs are – first and foremost – “umbrella” organizations, working in a very heterogeneous environment. First-generation DMOs were simply public organizations funded entirely by government, and although this type of structure continues to predominate, many new forms have emerged at the national, regional and even municipal levels. The table below summarizes the results of a global survey of such organizations conducted by the World Tourism Organisation (WTO) in 2004.

In Canada, the Canadian Tourism Commission is an example of a public/private partnership, just like the national DMOs in the United Kingdom, France, Denmark and Australia. In countries like Germany, Italy, Greece and Portugal, the national DMOs are entirely publicly funded, while some destinations have taken the opposite tack, seeing government intervention as unnecessary and relying instead on natural market forces. This is the model that prevails in the US, the Netherlands and Japan. (In the case of Japan, the national tourism bureau was simply privatized.)

Moreover, a growing number of tourist destinations are establishing public/private partnerships to set up destination management systems. BonjourQuébec.com, an alliance of Tourisme Québec and Bell Canada, is one such example. The WTO and the United Nations Conference on Trade and Development (UNCTAD) both encourage this approach.

Need to adapt

In the constantly evolving world of tourism, DMOs must keep up with the times and adapt. According to Arthur Oberascher, CEO of the Austrian National Tourism Office, the major problem for DMOs is their traditional focus on supply, catering as they do to the interests of their member businesses. In fact, they must better understand demand so they can adapt to consumer needs. DMOs must take on the role of knowledge brokers, acting as information clearinghouses for consumers and suppliers alike. Ultimately, DMO managers, just like hotel managers, should have access to daily activity reports: inventories, customer and spending profiles, financial analyses, etc. As a matter of course, DMOs should be linked 24/7 in a communication network with destination suppliers. Although we are obviously not there yet, this gives us an idea of the direction we should be taking.

Furthermore, increased consumer use of the internet to research tourism destinations and purchase travel products is one of the major changes to the DMOs’ operational environment. DMOs have to consider this new consumer attitude and adapt to the digital information age. According to the WTO, while the majority of national organizations have e-commerce strategies, at least half of regional and local outfits do not.

Case study: East of England Tourist Board

In their desire to acquire market intelligence, DMOs, like those in Austria and the East of England, have begun to redefine their areas of activity. Assuming the role of intermediary, these organizations are acting as knowledge brokers by using information about consumers to help the businesses who provide travel products and services.

For example, the East of England Tourist Board uses Tiscover, a destination management system, to encourage tourism organizations to offer packages on their website. Called UNITE, the platform enables suppliers to easily create packages using a content management system. The tourist board offers ongoing training and support to users as they familiarize themselves with the technical requirements. In fact, the challenge is more cultural than technical, because most small and medium-size businesses are not very familiar with this form of marketing.

Founded in 1991, Tiscover acts as a destination portal for Austria, Germany, Switzerland, Italy and the United Kingdom.

Tourism New South Wales: using e-business application

Many DMOs wonder how to best communicate and transmit their product information to various international markets at a low cost. This was the challenge facing Tourism New South Wales (TNSW), a regional tourist board in Australia.

The tourist guide for Sydney and the New South Wales region is the single most important tool available to consumers planning a trip. Since it would be prohibitively expensive to send this 150+ page document to potential visitors from the Americas and Europe, TNSW instead turned to the private sector, partnering with OnlineDM and Sampson Carroll to publish an international, interactive version of the tourist guide.

This interactive brochure uses mobileBrochure technology, a platform developed by Mobular Technologies.

The format offers a number of attractive features:The documents created are much smaller than traditional PDF files. This means they can be emailed without clogging the bandwidth of either sender or recipient. For example, the email for an interactive 200-page catalogue would generally be smaller than 20 k.

• The interface is very user-friendly, incorporating pull-down menus, regional content, a search engine, etc.
• The format is embedded in an email and does not require any plug-ins, attachments or reader software.
• Unlike hyperlinks, these documents are not HTML messages that redirect the consumer to a Website.
• User interaction with Mobular documents can be thoroughly monitored; in other words, usage data are saved in real time and may be accessed by the sender through a dedicated password-secured site. With this feature, DMOs can find out how many people have consulted the document, what search terms are used most often, which regions attract the most interest, the most popular pages, and so on.

A number of DMOs – those in Wisconsin, Maine and San Luis Obispo County in California – have made this technology part of their marketing strategy. With vacations increasingly planned at the last minute and traditional travel guides only consulted once travellers are on-site, e-brochures are a logical solution.

Sources:

- Delgado, Joaquin A. and Maggie Bowen. “DestinationFinder: A Travel – Focused Search Engine, Portal and Recommender System for the DMO Marketplace,” talk given at ENTER 2004.
- Gretzel, Ulrike and Daniel R. Fesenmaier. “Information Technology Use and Organisational Approaches: A Comparison of Destination Marketing Organizations in the United States and Canada,” National Laboratory for Tourism and eCommerce, 2002.
- Mintel Group. “Destination Marketing,” Travel & Tourism Analyst, No. 5, April 2005.
- Travel Research International. “Roles and Responsibilities in Tourism Support and Promotion in the Yorkshire and Humber Region,” prepared for Yorkshire Forward, December 2003.