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.

Everyone wants to boast a mark of distinction

Among the most prestigious international distinctions is “UNESCO World Heritage Site.” The European Union recently announced plans to develop a similar quality label as a way of developing culture and heritage tourism and enhancing its prestige and educational value.

Europe abounds with a variety of eco-labels, Tourism Australia has launched an ecotourism certification program, and the Quebec adventure and ecotourism sector boasts a quality program managed by the Bureau de normalisation du Québec. The Ministère du Tourisme du Québec is restarting its Démarche Qualité Tourisme total quality program. Under the aegis of the World Tourism Organization (WTO) and with funding from both the Quebec and Canadian governments, the World Center of Excellence on Tourist Destinations (CED) recently opened in Montreal. It is currently developing criteria to measure the excellence of destinations.

In the US, five hotels are proudly displaying their certifications from the US Green Building Council. Every year, the World Travel & Tourism Council (WTTC) hands out its Tourism for Tomorrow Awards and is currently studying the possibility of establishing an accreditation for organizations which meet sustainable development standards. In Quebec, Grands prix du tourisme recipients proudly feature their awards in their advertising campaigns. And, although primarily a marketing association, the prestigious Relais & Châteaux hotel chain, synonymous with luxury, is not open to just anyone.

And the list goes on. Classifications, certifications, social labels, quality labels, labels of origin, eco-labels, major awards, luxury banners… if recognition is what you seek, there is certainly a lot to choose from!

It goes without saying that growing consumer awareness of the environment and the negative impacts of tourism has led to an inevitable reassessment of tourism practices. Certification is one way to prove one’s commitment and provide a guarantee of good practice. More and more, the principles of sustainable development are key to establishing criteria and creating new labels.

Advantages for businesses

Committing to a certification program or total quality approach is not easy. It is very time-consuming and can even lead to a complete overhaul of work processes. In a business climate where customers are demanding and often enjoy a wealth of options, more and more companies are looking for a seal of quality, recognition or distinction to:

• improve their services and product quality
• reassure consumers and provide a guarantee
• distinguish themselves from the competition
• enhance their visibility and reputation
• access new markets
• improve business practices and increase productivity
• and, to some extent, reduce the negative impacts of tourism

Even certification has its failings

The stars used to rank hotels are undoubtedly the most recognized travel rating system in the world. But who awards these stars? They can come from tour operators, the hotel itself, recognized organizations with very different criteria from one region to the next, or even – with the advent of Web 2.0 – internet users (also read:
You haven’t heard the last of Web 2.0!).

As a traveller, how often have you lamented the disparities in evaluations from different regions and the lack of uniformity among the various programs? In fact, many organizations would like to establish an international certification system, but this may only be a pipe dream.

The challenges? How can international standards take into account the realities of different regions, and how can mass tourism products and niche tourism products meet the same standards? How can a community have a say in the decision-making process, and how can small businesses rally the technical, financial and human resources to take on heavy, costly procedures?

These same questions apply domestically as well. To be “certified” means to ensure that something is true, to provide a guarantee of… what, exactly? Many companies, having understood the promotional benefits of certification, will go so far as to declare themselves certified, even if they are not. This is not uncommon in the case of various “eco” products.

Ambiguous surveys and an ideological debate

Can a “seal” truly influence consumer choices, and do travellers care about evaluation criteria when selecting a certified business or do they simply have faith in the “seal”? Do travellers know which criteria distinguish a 4-star hotel from a 2-star hotel? And do they know that rating systems differ from one country to the next?

In response to these questions, here are some survey results to answer these questions and point out some contradictions:

“Green” programs are definitely very popular! A survey by the Hotel Association of Canada shows that 60% of Canadians feel that membership in an environmental program is a major factor in their choice of hotel. In Quebec, this percentage is 72%, the highest of any Canadian province. Many other surveys illustrate the popularity of environmental programs, both in Canada and around the world.

If something has a “green” label, then it must be good! Various surveys indicate there is still a high level of confusion and lack of understanding when it comes to eco-labels. Consumers support certifications and quality labels, but they are rarely able to distinguish among them or understand their true meaning.

When travellers are on vacation, their principles take a break as well! On one hand, an Orbitz survey reports that 63% of people would pay more to stay in a “green” hotel and 67% attach importance to the “eco-friendliness” of a destination. On the other hand, according to a Starwood survey, most Americans leave their environmental conscience at home because 70% of frequent travellers state they do not waste water at home, while this percentage drops to 18% when they are in a hotel.

Although respect for the environment is now an integral part of contemporary mores, vacations are associated with freedom and a lack of restrictions. Consequently, high principles and good habits also go on holiday. Consumers are exhibiting an openness and commitment to the state of the environment, but tourists’ positive attitude towards eco-labels is not a guarantee of environmentally responsible behaviour.

Says Marie-France Turcotte, “Certifications have the potential to make a modest contribution to meeting a major challenge, that of changing business practices and tourist consumer habits.” So, the question is, should travellers purchase a product on the pretext that it is certified, or do we need to become accountable as travellers, companies and social actors? The answer is, no doubt, both.

With the growth of certifications, businesses will probably face the same dilemma they do vis-à-vis distribution channels: which one will improve their position in the wonderful world of competition, increase their visibility and make them the chosen one of consumers? Start strategizing!

Sources:
- Boyd, Christopher. “Green Hotels Are Cleaning Up – Embracing an Eco-friendly Philosophy Resonates with Tourists,” The Orlando Sentinel, July 9, 2007.
- Breaking Travel News. “Survey: US Travelers Stress Eco-friendly Travel,” April 12, 2007.
- Delisle, Marie-Andrée and Louis Jolin. Un autre tourisme est-il possible? Presses de l’Université du Québec, 2007, 144 pages.
- ehotelier.com. “Survey: Most Americans Drop their Green Habits when They Check-in to Hotels,” July 10, 2007.
- Le Figaro.fr. “Vers une liste du ‘Patrimoine de l’Europe’,” May 22, 2006.
- Hotel News Resource. “As Hotels Focus on Environmentally Friendly Programs, Awareness among Hotel Guests Lags,” July 24, 2007.
- Hotel News Resource. “Leaving Home often Means Leaving Green Routines behind according to New Survey from Element Hotels,” July 10, 2007.
- HSMAI. “Asian Hospitality Leaders at HSMAI Roundtable Call for Standardization of Ratings System for Asian Hotels,” July 17, 2007.
- Karantzavelou, Vicky. “Six out of 10 Canadians Want To Stay at Green Hotels,” [www.traveldailynew.com], June 10, 2005.
- Parnières, Émilie. “Le tourisme responsable: Convergence de deux démarches de labellisation,” Veille info tourisme, May 2005.
- Salerno, Neil. “Stars & Diamonds – Do They really Matter any more?” Hotel News Resource, January 31, 2007.
- Turcotte, Marie-France. L’écotourisme entre l’arbre et l’écorce – Labels et certifications d’écotourisme et de tourisme. Le contexte et la portée, Presses de l’Université du Québec, 2006, p. 348-369.
- World Travel & Tourism Council. “Big Companies Must Show how Green They Are,” November 24, 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.

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.

Baffling figures

The World Tourism Organization (WTO) reported that – after declining for three consecutive years – international tourism revenues rose 9% in 2004, while also making it clear that this increase was expressed in local currencies at constant prices, thus neutralizing the effects of exchange rate fluctuations and inflation.

When you look at the 2004 growth of international tourism revenues over 2003 in US dollars (WTO statistics), there is much to be amazed by!

• Worldwide, the increase was 18.8%.
• Asia-Pacific posted an increase of 31.8% and the Middle East 24.8%.
• In Europe, only one country (Hungary) posted growth of less than 10%.
• In Asia-Pacific, a majority of destinations (12 out of 15 countries) experienced an increase of more than 20%.
• Canada can be thrilled with a 21.8% increase in tourism revenues.

However, when you look at the 2004 growth of international tourism revenues over 2003 in euros (WTO statistics), there is much to be disturbed by!

• Worldwide, the increase was 8%.
• Asia-Pacific posted an increase of 19.8% and the Middle East 13.5%.
• In Europe, only two countries (Ukraine and Poland) posted growth of more than 10%.
• In Asia-Pacific, just under half the destinations (six out of 15 countries) experienced an increase of more than 20%.
• Canada did well with a 10.7% increase in tourism revenues.

In light of these statistics, it becomes difficult to compare revenue growth rates among countries. In effect, if the yen gained more ground against the euro over the year than the Canadian dollar did, the growth rate reflects the change in the exchange rate as much as the change in revenues. It would be fairer and more illuminating if the revenue statistics were produced in local currencies and constant prices.

In which category do we want to perform best?

France was the No. 1 destination in the world in international arrivals, but third in tourism revenues. And not only did France post the worst showing in terms of average spending per international arrival among the top 12 revenue-makers, it performed worse than many other destinations as well. Conversely, the US was third in arrivals, first in revenues, and did very well in average spending (Table 1).

Unfortunately, the lack of statistics on such factors as length of stay prevents a more precise picture of the situation. But other interesting points emerge from juggling the statistics (tables 1 and 2):

• The US had 38% fewer arrivals but 45% more revenues than France. The tourist visiting the US spent three times more than in France, or $1,616 US versus $544 US.

• The US and Germany did well in all three categories (revenues, arrivals and average spending).

• In 2003, Australia was the top performer in average spending, according to the statistics (4.4 million arrivals, $10.3 billion US in revenues, average spending of $2,370 US). In 2004, it was in 10th position in revenues, but did not make it into the top 20 in arrivals (the Netherlands was in 20th place, with 9.6 million). It essentially posted the same revenues as Canada, with four times fewer arrivals than Canada.

• Japan and Belgium (2003 arrivals data) were in the top 20 in revenues (in 20th was Malaysia, with $8.2 billion US), but did not make it into the top 20 in arrivals. Their ratio of average spending was obviously very high.

• Although they didn’t make it onto the list of top 20 revenue earners, many countries (Table 2) managed to turn in better performances on average spending than some of the top 20 revenue-earning countries.

• Hong Kong, Poland, Hungary and Ukraine, all in the top 20 in arrivals, fared poorly in average spending, at less than $500 US.

• Despite six million arrivals, Tunisia did not manage to generate substantial economic spin-offs, with average spending of just $318 US per international arrival.

• With average spending of $702 CAD in 2004 (3.3 million foreign tourists and 2.3 billion CAD in revenues), Quebec surpassed the Canadian average.

What should we conclude?

When figures show France can be proud of recording 75 million international arrivals but that it managed to obtain an average spending rate of only $544 US, you have to ask yourself if the statistics speak for themselves, if they should be challenged, if information essential for accurate analysis is missing, if the methodologies were consistent?

An analysis of the data leads to the conclusion that more arrivals do not necessarily equal more revenues. In this vein, many countries would like visitors to spend more.

In the UK, the Office for National Statistics recorded an 11% increase in tourists in 2004 (27.3 million) compared to 2003, and an 8% gain in revenues (£12.8 billion). Despite these positive results, VisitBritain is obviously working to raise visitor numbers, but in particular to boost how much they spend.

Among the leading destinations, Italy had a relatively poor 2004 compared to 2003. The 2.2% dip in the number of overnight stays (336.8 millions) and the 2.4% decline in the average length of stay (4.06) cast a shadow over the revenue picture.

The situation was similar for tourism professionals in Spain, where “fewer tourists and more profitability” has become the new credo of major hotel chains and others in the industry. Government officials also feel it would be better to have fewer tourists, but for longer stays. Visitors numbers advanced 3.4% in 2004 (53.6 million), but revenue volume did not keep pace, constituting a drop in average spending.

In Quebec, the Association touristique régionale (ATR) de la Gaspésie faced a similar situation: while tourist numbers rose, visitors were not staying as long or spending as much as previously. To counter the problem, the ATR increased its presence in promotional markets, invested in training programs based on the client approach, and launched a “Quality” initiative.

Obviously, the methodology and recording of data can differ from country to country, making comparisons difficult. But beyond the figures, the question remains interesting: is the goal to attract more tourists with all the consequences of that, or is it to increase economic benefits in a perspective of sustainable development?

Sources:

- Alves, Jose. “L’Espagne remet en cause son modèle touristique,” Les Échos, No. 19338, January 27, 2005, p. 26.
- McGrath, Ginny. “Britain Needs Big Spenders,” Travelmole, February 9, 2005.
- World Tourism Organization. “Tourism Highlights,” 2005 edition.
- Voilà.fr. “L’Italie a connu une mauvaise année touristiques en 2004,” [www.voila.fr], February 11, 2005.

Hoping for a magic solution

Most participants who attend conferences, conventions and workshops are hoping to discover the next big trend that will magically solve all their problems. All too often, they are presented with information they already know: growth in short-term trips and nearby destinations, rapid urbanization, extending the tourism season, strong competition among destinations, etc. Is there anything to be learned here?

How about combining trends?

We all know about the rapid growth of urban populations. By 2015, more than half of the world’s population will be city-dwellers; by 2020, close to 90% of Canadians will be living in the country’s 25 greater metropolitan areas.

“Urbanization” means a large number of tired, stressed-out people, many of whom are desperate to escape to the country and enjoy nature. Rapidly increasing urbanization, combined with the growing trend towards short-term stays, could well be the magic solution we have all been hoping to find.

First seduce, then pounce

Rural areas are blessed with a natural resource that can meet the physical and mental needs of city-dwellers year-round. How can these stressed-out individuals resist the invitation to relax, slow down, drink in the fresh air, escape the rat-race, reconnect, enjoy interacting with others, savour a sense of well-being… these all constitute persuasive arguments for companies eager to attract this kind of clientele.

Some Club Med brochures have been designed with this principle in mind. The first two or three pages flaunt the country’s charms and highlight its most seductive aspects. The contact information for the relevant Club Med offices is printed on the final page, to capitalize immediately on the customer’s decision to purchase.

Seductive marketing

Your “seduction campaign” will be even more effective if, in addition to highlighting your region’s assets, you segment the information based on the lifestyles of your prospective clientele. For example, the marketing strategy developed by the CDT (Comité départemental du tourisme or Regional tourism committee) of Orne, France focuses on the “sheer pleasure” of its weekend getaways:

Experience a weekend of Sheer Pleasure in the Orne region of Normandy, France.

• If you love golf or riding, click the Great Outdoors icon
• If you prefer setting your own pace, click the Relaxation icon
• If you’d rather laze in the sun, click the Beach Bum icon
• If you’re the get-back-to-nature type, click the Country Style icon

The Aube region in Champagne, France is marketing itself as “Aube, the place you’ve been longing for”. A number of French tourism organizations have used the slogan “Go ahead; indulge yourself” to emphasize the pleasure factor of their weekend getaways, resorts and other tourism products. And, the phrase “No artificial colours or additives” is the perfect endorsement for a region’s natural charms!

Perhaps reading these examples has inspired you to develop a strategy that relies less on enumerating the various activities on offer, and more on seducing the potential consumer with your region’s unique appeal.

Sources:
- Dany, Carole. “Enjeux et pratiques de désaisonnalisation dans les territoires ruraux,” Agence de communication Cadran Solaire, colloque Imatourisme 2004, Moliets – Landes, France, 5 octobre 2004.
- Laliberté, Michèle. “Boule de cristal, que nous prédis-tu?,” Réseau de veille en tourisme, 31 mai 2004.

A thousand and one reasons to cut prices

It is only normal that customers want to get the most for the least amount of money. There are many reasons to cut prices:

• promotions to publicize a new product;
• deals to attract new customers;
• lower prices to beat the competition ;
• special group rates;
• “early-bird” specials;
• last-minute prices to liquidate stock;
• off-season prices;
• guaranteed best rates to lure reservations away from middlemen.

And yet, at the end of the day, such measures cut into the profit margin.

The low-cost concept is in no way synonymous with cheap

Working from the idea that people are looking for low prices, a number of businesses have successfully questioned their traditional ways of doing things and found ways to cut costs and still offer a quality product. In fact, the term low cost (which is often poorly translated into French as “bas prix” or low price) simply means that – since operating costs are lower – one can ultimately offer lower prices. Of course, the calculations are very different for Air Canada from what they are for WestJet when it comes to a $99 Montreal-Toronto flight. Since these two companies do not have the same cost structure, one operates such a flight at a loss, while the other can make a profit. For WestJet, the price is in line with its operating costs, while for Air Canada, it is simply a strategy to boost sales or keep up with the competition.

An increasingly popular business model

The avant-garde, low-cost concept was first adopted by Southwest Airlines in the United States back in 1978. Although it has taken time to catch on, the low-cost concept and the carriers using it are causing a lot of turbulence in the airline industry. WestJet was the first to adopt the concept in Canada and it has been followed by JetsGo, Canjet and Air Canada’s Zip and Tango services.

Even airports are investing in the market. Marseille, Beauvais, Geneva and, most recently, Singapore have all announced plans to open low-cost terminals expressly for these carriers. Could Montréal’s suburban Saint-Hubert Airport be far behind?

To counter stiff competition from low-cost carriers, France’s national rail company (SNCF) has also decided to explore the concept. It has launched a low-cost version of its TGV high-speed rail service, combined with an innovative array of special services. Basically, the rail company is offering exclusive online-booking and “early-bird” rates, considering partnerships to enable customers to design their own products, and is testing a process whereby all tickets are checked upon boarding, rather than on the train.

In France, the Formule 1 hotel chain has revolutionized the economy hotel industry. The concept was developed in the 1980s after a study showed many travellers found hotel rooms too expensive. The entire hotel “production line” was closely scrutinized to reduce capital and operating costs. This type of hotel meets customers’ primary expectations: cleanliness, comfort and low-cost.

Low-cost cruises are now on the horizon. Already the owner of easyJet (a low-cost carrier), easyGroup will soon launch easyCruise. Some are criticizing the idea, saying that easyCruise is more about ocean transport and ferry service than an actual cruise. As opposed to the usual cruise concept based on luxury and attentive service, easyCruise will follow the example of the airlines with a reduced crew, simplified pay-per-use services and, above all, low prices.

Even destinations (Cuba, Tunisia and Turkey) are targeting the low-cost market. At the opposite end of the spectrum, destinations like Monaco, Île Maurice and Deauville wish to maintain their image as playgrounds of the elite.

To each his own, but make sure you are clear

Many successful businesses have proven the merit of the low-cost business model. When a company’s prime objective is to offer a low-priced product, it is important to communicate this clearly and ensure the customer understands what this implies in terms of quality, service and price.

The strength of those who develop new concepts lies in their ability to discern opportunities and take advantage of what the environment offers. Although this is easy enough to say, one must truly have a visionary streak to venture off the beaten path.

Source: Les Cahiers Espaces. “Stratégies de petits prix,” Vol. 79, November 2003.
 

According to the survey of 1,300 U.S. adults conducted in July 2001, 61% of travellers (or 82 million Americans) said they read articles about travel and destinations in the media, or watch or listen to travel shows on TV or the radio. This number is up from the 55% of travellers surveyed last year who said they had used such information sources. The survey asked only about unpaid travel coverage, not advertising.

The survey also asked respondents to rank the usefulness of various travel media. The Internet was ranked first as the single most useful medium, as follows:

When it came to believability,however, the media users rated the travel information in same media quite differently:

Finally, the level of trust of respondents with regard to travel media varied depending on the planned activity. The following lists the percentage of media users who said YES when asked if something they read or heard caused them to:

Using television to promote a destination

Television coverage is often used to counteract the effects of a crisis or when a destination’s image has been tarnished due to a particular situation (war, epidemic, environmental accident, natural disaster, social crisis, etc.). It provides information about the destination and its products, while helping to market it to the public.

According to Thierry Baudier, Director General of Maison de la France and a participant at the First World Conference on Tourism Communications (TOURCOM), which was held in Madrid in January 2004, television targets the general public, and people likely to travel in particular. It is also aimed at the media, which, in his opinion, play a major role in building a destination’s image, shaping public perception and providing information.

For Gary Wardrope, Commercial Director at the Travel Channel, TV is ideal for this type of message:

• it is easy to use and simple to understand 
• it provides great detail, both visual and auditory 
• it appeals to the emotions 
• it reaches a very wide audience, especially if the show is rebroadcast on other regional, national or even international channels

Summer television in Quebec

In the wake of shows like “Partis pour l’été“, “La poudre d’escampette” and “La route des vacances“, Quebec’s TVA channel will broadcast “100 détours” this summer. This weekly series will invite sixty or so performers to take part in car rallies that will feature and promote some of the province’s principal tourist attractions. Shooting will begin in May and cover the regions of Montreal, Quebec City, the Montérégie, Outaouais, Laval, the Laurentians, the Saguenay, Charlevoix and Lanaudière.

Nothing new for the province

In March 2003, the Zoo de Saint-Félicien was featured in a special report on Canal Évasion. The show’s host spent the night in a tent, under the stars, with all the animals roaming free around her. According to zoo officials, the show was an excellent way to “sell” the zoo to tourists.

Last year, Canal Évasion also broadcast a new series entitled “La détente est dans le spa,” which visited Quebec’s various spas and health resorts. Although the show focussed primarily on spas, hotel complexes and the desire to be waited on hand and foot, it also presented general information about nearby tourist spots and the surrounding area.

Promotional TV used around the world

The Korea National Tourism Organization is also planning a spate of travel shows to sing the praises of Korea on regional TV channels. It has developed two different shows, one for Southeast Asia and one for China. A third show, targeting the Japanese market, is in production.

Great Britain is also counting on two TV advertising campaigns to boost tourism. The officials behind the VisitBritain promotional campaign hope to increase the number of visitors by 30% by the year 2010.

Sources:
- Wardrope, Gary. “The Power of TV in Tourism Communications,” First World Conference on Tourism Communications, Madrid, January 29-30, 2004.
- Rogers, Daniel. “VisitBritain aims for 30% growth in English tourism,” Marketing, London, November 27, 2003, p. 6.
- ”Korea battles visitor dip with TV plan,” Media, Hong Kong, February 27, 2004, p. 7.
- ”Annie Brocoli animera une émission touristique,” Le Quotidien, April 3, 2004, p. 43. 
- “Évasion… au Zoo !,” Progrès-dimanche, March 7, 2004, p. A10.
-  Travel Industry Association of America. “How Americans Use the Travel Media,” April 2004.

Commentary from Frédéric Dimanche

The question “Which medium should I use to plan a vacation?” in fact involves two different themes for discussion: firstly, what role do the media play in the consumer decision-making process and, secondly, to what extent do the media influence such decisions?

We must begin by defining which use of media we are discussing. Are we talking about strictly commercial uses, that is, advertising or, more specifically, messages controlled and paid for by advertisers, or are we talking about informative lead articles, written by journalists who are not beholden to the destination or attraction’s marketing team? Feature articles and personal accounts, which consumers consider more impartial, are no doubt more influential than advertising.

Media advertising is only one factor among many that can influence consumer decisions: prior experience, referrals from friends, family and co-workers, information from the competition and basic constraints like budget and available vacation time all play a part. The key is to make the destination one of the options that the consumer considers before deciding. The role of media advertising can vary: the goal can be to build the destination’s reputation or communicate its image, or it can use a specific promotion to prompt a decision and subsequent purchase.Increasingly, advertising appeals to the emotions and the senses by creating situations that inspire the target market. Although TV certainly has a large part to play, advertisers are also learning to use events as experiential marketing tools. Television alone is not enough to make someone select a destination; for this reason, one wonders what VisitBritain is going to do after two TV advertising campaigns.

The TIA survey confirms, if that was needed, the growing importance of the Internet as an information source. Surfers can quickly locate all sorts of information, both unbiased (reviews, travel guidebooks, etc.) and biased (sales and promotional information directly linked to the destination, attractions or available lodging). It is no longer enough to simply recognize the importance of the Internet; one must now understand what consumers read online. The Internet is first and foremost a source of information, and consumers are looking for credible information like that found in consumer travel magazines. It is this type of information/recommendations that will direct travellers to a destination’s service providers.

Media communications are important, whether they are controlled by the destination or not. However, they are not the only tools available. In fact, long-term efforts to ensure service quality and the satisfaction of visitors and intermediaries can sometimes be a much better marketing investment.

Frédéric Dimanche

Professor and Director,
Centre de management du tourisme
CERAM Sophia Antipolis European School of Management