Catégorie : etourism and technology

Catégories
etourism and technology Marketing @en

Destinations 2.0: Trend of the hour!

Web 2.0 offers organizations some amazing and effective opportunities. And it cannot be repeated often enough: consumers trust reviews from other customers and recommendations from experts more than they do official sources of information. Some destinations have truly got the message and put this principle into practice. The following article looks at some examples of destinations that have succeeded in getting insiders to spread the word.

Uwishunu.com (You wish you knew…)

Written by forty or so “in-the-know” contributors, this blog presents the contemporary, non-traditional side of Philadelphia. Real Philadelphians reveal their secrets about dining, nightlife, music, culture, fashion, outdoor activities, design, etc. The goal is to enable visitors to experience Philly like a local. Though created and maintained by the Greater Philadelphia Tourism Marketing Corporation, the site is presented as a separate entity. Readers are invited to post feedback and comments about the articles.

The site makes full use of Web 2.0 and social media with blogging, podcasts, online networking, photo and video sharing and RSS feeds. The site’s administrators even use Twitter (a social network and microblogging tool) to promote certain events.

Uwishunu is also home to Illadates, a popular weekly series of video podcasts where two amateur filmmakers take viewers to the best places around town.

This very inspiring site can serve as a model for most destinations and help them create an inexpensive promotional tool that is more effective than many other Web strategies.

Holland.com

The Netherlands Board of Tourism and Conventions recently launched a typical Web 2.0 site targeting the North American market. In addition to providing access to tourist information, the site also invites users to join its virtual community where they can share past trips and publish articles, videos and photos and thereby enable the site to constantly evolve. Using RSS feeds, the site also posts information from other sites like Google News, Yahoo Travel and YouTube.

Like many sites, Holland.com enables users to rate articles and add their comments, thereby highlighting the most relevant ones.

Site content is therefore generated by users, the Board of Tourism and by a few third parties. By using various news items, videos and comments to bring together past and potential visitors, the site has created a credible information source that offers visitors the best experience possible.

MtL_2008-01_dest_2point0_img2

And that’s not all: the Board of Tourism has also opened the first national tourism board in Second Life, yet another example of using the virtual world to encourage real-world discussion about its destination. Most importantly, this move has created another opportunity to attract media attention!

VisitMyBaltimore

To enhance the city’s allure, VisitMyBaltimore.com invites Baltimore fans and residents to upload amateur videos highlighting their favourite places, must-see events, and well-kept secrets. To launch the project and encourage locals to publish their videos, the Baltimore Area Convention and Visitor’s Association (BACVA) organized a contest offering the creator of the best video a prize of US$2007. For small businesses, the contest was an excellent opportunity for self-promotion and a chance to win the prize! The site is planning future contests to maintain user interest.

VisitMyBaltimore also had another good idea that has proved very popular: invite celebrities to upload their own videos of the town!

MtL_2008-01_dest_2point0_img4

Ifoundmymontreal.com

Montreal has also been busy, launching a blog where visitors, businesses and event organizers can publish their thoughts and comments and promote their site or event. IfoundmyMontreal.com is managed by Tourisme Montréal and aimed primarily at international travellers.

MtL_2008-01_dest_2point0_img4

The blog appears as an extension of the Tourism Bureau’s FindyourMontreal.com site, which introduces visitors to Montreal’s festivals, cuisine, eclectic architecture, shopping, nightlife and cultural scene. Information is presented in the form of videos, images and podcasts.

Tourisme Montréal is currently doing a complete overhaul of the city’s official Internet portal, creating a major section for user-generated content (comments, photos, creating and sharing itineraries).

To recap

Web 2.0 destination sites with “insider” content clearly benefit from being seen as new and credible information sources. Whether content comes solely from locals or from a mixture of travel professionals and select contributors, the unofficial character of such sites, combined with their opportunities for user interaction, questions and comments, gives the impression of authenticity and a sense of being able to experience the destination just like a local.

The top tips from our examples:

  • Provide a showcase for small businesses who can present themselves in an innovative way
  • Involve some celebrities
  • Organize a contest to encourage participation
  • Attract the attention of the media
  • Add content using RSS feeds, simply and freely

In addition to their relevant content, these sites have become popular thanks to significant media coverage. Their innovative, youthful, hip and off-the-beaten path character attracts users and creates a buzz. For locals, they offer an opportunity to introduce one’s favourites and experience 15 minutes of fame.>

Current Website development platforms make it relatively easy to include the functions needed for these new Web 2.0 sites (account creation, file sharing, comments, etc.) and, furthermore, are low-cost. However, be advised: despite the technological simplicity of such sites, their popularity is not guaranteed! Projects must still be well planned, well communicated and well managed. They must also be easily referenced by search engines.

Among other issues, it is difficult to accurately assess the impact of these new interfaces, but they do seem to enjoy good visibility. Also, these sites must strike a delicate balance between true user-generated content and that created by businesses, contributors and the tourism bureau. After all, a site’s very credibility is at stake. And although content is usually monitored, blogs are open to criticism and negative comments.

Is this a trend to monitor, or to try yourself? It is your decision, but once word-of-mouth gets going, you have no idea how far it can take you!

For more information on how customers can influence others, see:
– Today’s customers influence tomorrow’s choices

Sources:
– Sauer, Abram. “Uwishunu,” [www.BrandChannel.com], June 25, 2007.
– [www.uwishunu.com]
– [www.findyourmontreal.com]
– [www.ifoundmymontreal.com]
– [http://us.holland.com/]
– [www.visitmybaltimore.com]

Catégories
etourism and technology Trends

What is Facebook’s impact on the tourism industry?

In an earlier Globe-Veilleur article, we explained why Facebook has quickly become one of the top virtual communities and a new social phenomenon unto itself. We are now going to examine its sphere of influence within the tourism industry, as many Quebec businesses are starting to make use of it.

Some concrete examples from the industry

In its September edition of Cultur@, Tourisme Montréal discussed Facebook’s compatibility with the urban and culture sectors. Both sectors already attract the 18-35 year-old customer segment, which is also the most active demographic on Facebook. Many organizations are now using it to communicate with specific clienteles. For example, the Mutek group includes more than 300 fans of electronic music. These group members, in turn, have a multiplier effect. Les Rendez-vous du cinéma québécois has also made good use of Facebook, promoting the activities of this cultural event to its target public: a community of nearly 600 members, all devotees of Quebec film.

In the hotel sector, some establishments use it to promote one-time events like a networking happy hour, reunions or art exhibits. For example, Montreal’s the Place d’Armes and the Nelligan, both boutique hotels, use viral marketing to promote their activities and send invitations to potential clients. The owner of these establishments, Dimitri Antonopoulos, uses his own Facebook social network for this e-marketing and has obtained good results. Art galleries are adopting the same strategy to announce upcoming openings. Ski resorts are using Facebook to stimulate discussion among their keenest customers, promote their new season passes, etc. In all cases, it is essentially free advertising.More and more businesses are also using Facebook to recruit employees. Its structure makes it a valuable, easy-to-use tool for recruiting candidates based on their qualifications, current employer, professional title and geographic location. Professional networks can also be used to efficiently circulate information about an opening, while employees can use them to indicate their availability.

Many tourism-based businesses are developing applications

Many businesses are attracted to Facebook’s open platform, developing third-party applications (widgets) that users can add to their profile pages. There are already more than 4,000 such free applications of various types (including 131 associated with travel). The following are a few travel-related examples:

  • Mobissimo Travel: to get rates directly from travel partners of this meta-search engine
  • Hostels: to search for inns and B&Bs around the world, consult commentary and reviews from Facebook members (anyone or just friends) and, ultimately, complete a transaction on the site itself [www.hostelbook.com]
  • Fly by Farecast: to display the best rates and forecasts about one’s preferred destinations (see illustration)
  • CityGuru: to find out where to get advice on what is in and out in a specific city
  • Trip Planner: to plan and share trips among friends (automatically recognized by Facebook)
  • My Travel Blogs: to create a personal travel blog
  • Restaurant Reviews: to share advice and commentary about restaurants with friends
  • Fly to Friends: to constantly monitor the Kayak meta-search engine for the prices of flights to visit one’s friends
  • Cheap Deal Finder: to stay up-to-date on the best travel deals offered by the STA Travel network of travel agencies
  • Video Travel: to share one’s most recent travel videos with one’s friends

Although there are countless ways to find travel-related information on Facebook, another relevant aspect is its role as an “influencer.” Unlike travel review sites like TripAdvisor, Facebook acts as a tool for sharing travel experiences and tips from trusted acquaintances and friends. According to Patricia Brusha of the firm A Couple of Chicks, the viral effect of a network of friends can have a tremendous influence on travel decisions.

For better and for worse

Many observers are noting that the effectiveness of traditional online marketing channels, like advertising banners, is likely to decrease rapidly. The Facebook phenomenon is leading the way to a new reality: with so many Internet users actively commenting on brands via their social networks, a company’s reputation on the Web is becoming a major issue, particularly in tourism. According to a study published by UK firm Tamar (specialists in emarketing), travel brands comprise the sector most at risk from negative comments spread through social networks. Furthermore, the great majority (80%) of users of these networks noted that they had used the network as a podium to discuss or comment on a brand or product.

Take the example of Delta Airlines. Facebook has several dozen groups related to this company. Some are made up of Delta employees and communicate a rather positive image. Others, like “Delta Airlines Sucks” and “Warning: Do Not Fly With Delta Airlines,” are used primarily to express frustration with a bad experience and thereby damage the company’s image (see illustration). Other carriers like Air Canada and Air Transat are not immune to this trend either.

CP_2007-09_en_quoi_FB_img3

On the other hand, aficionados of a product, members of groups like “I Love Tremblant” and “Montreal – The best city in the world” (13,000 members), can become brand ambassadors par excellence. Ultimately, the influence of such groups depends on the relevance and truthfulness of the cause defended by their administrator and, above all, on the credibility and influence of its members.

Of course, the phenomenon is still very young and sceptics are probably right to say that Facebook has yet to prove itself and that some other site could eventually surpass it. In addition, concerns about data privacy could arise and dampen user enthusiasm. However, whether one is talking about Facebook or another leader in the field of social media, the fact remains that businesses who neglect these networks in the next few years or whose managers fail to understand the importance of these new mass communication tools will face a steady decline in their brand reach and influence.

Sources:
– Bly, Laura. “Travelers Arrive at Facebook,” USA Today, August 30, 2007.
– Brusha, Patricia. “How Facebook Will Impact the Summer Tourism Season,” Hospitality Net [www.hospitalitynet.org], April 11, 2007.
– Burgin, Ken. “How to Use Facebook to Market your Restaurant, Cafe, Hotel or Bar,” Hotel News Resource [www.hotelnewsresource.com], August 27, 2007.
– Locke, Laura. “The Future of Facebook,” Time [www.time.com], July 17, 2007.
– Puchot, Pierre. “Facebook est-il l’avenir du Web?” Rue89 [www.rue89.com], September 6, 2007.
– Renaud, Jean-François. “Social networking and marketing: concrete opportunities,” Adviso Conseil [www.adviso.ca], July 12, 2007.
– Rocha, Roberto. “Facebook used to recruit employees,” CanWest News Service [www.canada.com], September 4, 2007.
– Vara, Vauhini. “Facebook Gets Personal With Ad Targeting Plan,” The Wall Street Journal, August 23, 2007.

See also:
– You haven’t heard the last of Web 2.0!
– Your client’s friends are your friends

Catégories
etourism and technology Trends

Facebook, the new Web 2.0 darling

In the summer of 2006, we drew attention to the important phenomenon of Web 2.0. Since then, a great many Web users have become familiar with virtual online communities and several players have really started to stand out. One such site is Facebook, which is the process of establishing itself as a mainstay of the Web’s new participatory environment. Its sphere of influence extends to just about everything, including, of course, the tourism industry.

What is Facebook?

Facebook is hard to understand without experiencing it for yourself.CP_2007-09_fb_2point0_img1

To begin with, Facebook is more than just a Website; it is an entire online social network. However, unlike other virtual community sites focussed on creating new virtual connections, Facebook works exclusively with its members’ pre-existing contacts. One of its founders, Mark Zuckerberg, describes the site as a form of “social mapping” that enables people to communicate with friends, family and co-workers, share information, and create and post a variety of content, all within an extremely efficient, user-friendly environment. Experts are calling Facebook a revolutionary portal and some have even compared it to Google in terms of its eventual impact on society.

The popularity of this collaborative platform is impressive. Founded in February 2004 by some Harvard students, the site had already signed up more than one million active members within its first ten months. Initially reserved solely for students, Facebook did not really take off until it opened registration to everyone in September 2006.

Although the phenomenon is still very young, the site now boasts 40 million members around the world, with more than 6 million in Canada. “Facebookers” are very active; more than half of active users visit the site daily. Since January 2007, it has registered 200,000 new users a day. Interestingly enough, the site is not simply popular among adolescents; in fact, the demographic segment showing the most growth is that of 25 years and over.

For the time being, Facebook seems to be most popular in big cities. The Montreal network already has over 229,000 members, compared to that of Québec City, which has approximately 18,000. However, this data is for illustrative purposes only, given that individuals are not obliged to associate with their given geographic network.

How does it work?

Users start by creating a personal profile, and then connect with other people they know (either directly or through friends) who are already registered on Facebook. There is also a function for inviting other friends who are not already on Facebook to join their network.

Once a user has created a virtual community of their friends or professional contacts, this network is used as a platform for communication: to announce events, support causes, and post blogs, vacation photos and videos, parties, various activities, etc. What distinguishes Facebook in particular is that people use their real identities (see illustration). Users interact with their real-world contacts, whether friends or co-workers. Facebook is a dynamic form of networking and features a number of tools that facilitate communications among existing communities.

CP_2007-09_fb_2point0_img2

Beyond these basic functions, the possibilities are endless. With Facebook, users can share different types of content in a single location and enjoy access to an open technology. This technology has led to the creation of numerous new third-party applications (widgets) – some of which are useful, some of which are just fun – that can be used to personalize one’s profile. For example, the following image illustrates the connections that exist within a Friend Wheel.

CP_2007-09_fb_2point0_img3

According to the research firm comScore, last April this type of online application received over 178 million unique visitors in all.

The impact for businesses

In addition to impressive traffic numbers that have made Facebook the second most popular social network site after MySpace (and number one photo-sharing site), the concept of trust is what justifies the interest in this type of development. From a business standpoint, everyone knows how important “word-of-mouth” is to sales. Facebook is the ideal vehicle for such a viral effect, because it is a human chain based on the built-in trust members have in the individuals that make up their world. For businesses, it offers access to a highly targeted, qualified population.

Businesses and interest groups can also create their own profile to promote an idea, a concept, an event, etc. Facebook’s tremendous flexibility offers users a variety of ways to control the content they send and receive. For example, they can screen irrelevant information, even from within their own network of contacts.

And this is only the beginning!

Facebook is thus a prime example of a major Web 2.0 player. Its rollout is just beginning and its founder recently turned down two purchase offers, including one from Yahoo worth US$1 billion! Valued at over US$10 billion, Facebook is already expected to make a big splash on the public market.

We are probably seeing only the tip of the iceberg. In fact, the company is working on developing an advertising model based on the wealth of information it has about each user. Like Google’s sponsored links, businesses will be able to purchase highly targeted advertising banners on Facebook that match users’ interests and their social network, thus highlighting the true value of this impressive community.

See also:
– What is Facebook’s impact on the tourism industry?
– You haven’t heard the last of Web 2.0!
– Your client’s friends are your friends

Sources:
– Bly, Laura. “Travelers arrive at Facebook,” USA Today, August 30, 2007.
– Brusha, Patricia. “How Facebook Will Impact the Summer Tourism Season,” Hospitality Net [www.hospitalitynet.org], April 11, 2007.
– Burgin, Ken. “How to Use Facebook to Market your Restaurant, Cafe, Hotel or Bar,” Hotel News Resource [www.hotelnewsresource.com], August 27, 2007.
– Locke, Laura. “The Future of Facebook,” Time [www.time.com], July 17, 2007.
– Puchot, Pierre. “Facebook est-il l’avenir du Web?” Rue89 [www.rue89.com], September 6, 2007.
– Renaud, Jean-François. “Social networking and marketing: concrete opportunities,” Adviso Conseil [www.adviso.ca], July 12, 2007.
– Rocha, Roberto. “Facebook used to recruit employees,” CanWest News Service [www.canada.com], September 4, 2007.
– Vara, Vauhini. “Facebook Gets Personal With Ad Targeting Plan,” The Wall Street Journal, August 23, 2007.

 

Catégories
Around the world etourism and technology Management Marketing @en

Interhome: a good example of best practices

At the 2007 ITB Berlin Trade Fair, Simon Lehmann, CEO of Interhome, spoke on the topic of Customer Relationship Management (CRM), an approach adopted by Europe’s largest holiday rental accommodation agency. The impressive results testify to CRM’s undeniable impact when used in conjunction with a personalized marketing strategy.

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.

FGC_2007-07_interhome_img1

  • 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.

FGC_2007-07_interhome_img2

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.

Catégories
Accommodation etourism and technology

Wireless access in hotels: luxury or necessity?

Over the past few years, hotels have invested heavily in order to satisfy their clients’ internet access needs. However, although the demand is obvious, customers’ willingness to pay is less so. Also, because a growing number of clients now travel with laptops, wireless networks are becoming increasingly popular. Do hotel owners have to resign themselves to losing some of their customers if they fail to provide these high-tech amenities? A survey of American business and leisure travellers, conducted by Yesawich, Pepperdine, Browne & Russell (YPB&R), yielded some interesting results.

An expanding service

Around the globe, an ever‑increasing number of places now offer wireless internet service (wi‑fi). According to an ABI Research study, the number of wi‑fi hotspots worldwide will grow by over 25% in 2007, for a total of 179,500 of those areas so beloved by laptop owners. About 72% of them are found in North America and Europe, but the Asia‑Pacific area is showing rapid growth in that respect.

It’s not just the offer; the interest on the part of internet users is also rapidly expanding. In addition to the burgeoning number of internet subscribers there is an astonishing growth in wireless use, as people become more and more used to going online to check the internet and e‑mail.

The trend reaches accommodation

The hotel industry is well positioned to make the advantages of wireless internet available to its clientele. There are currently 46,000 wireless hotspots in various kinds of accommodation establishments. This amenity confers an obvious competitive advantage that many large hotel chains are eager to acquire. Some operators also use wireless networks for their internal communication.

Two recent surveys conducted in January 2007 by YPB&R shed some interesting light on the relative importance of wireless internet service in hotel rooms. The first survey was conducted on 304 leisure travellers, while the second focussed on the same number of business travellers. Both samplings surveyed American travellers who had travelled over 120 km from their home and spent at least one night in commercial accommodation.

Internet in the room

Clearly, the internet is becoming an essential service and, increasingly, clients expect it to be offered free of charge. Business travellers more or less demand high‑speed wireless internet access in their hotel room (Figure 1). Over 39% of business travellers surveyed said that this free service is extremely important, and 46% of leisure travellers said it was very important (see ratings in columns 4 and 5). The stated importance of this service to travellers decreases significantly as soon as there is a cost attached to it.

CP_2007-05_wifi_htl_grphq1

Since an increasing number of travellers use laptops, customers obviously prefer wireless internet service. However, both clientele segments still displayed significant levels of interest in having wired connections in their rooms (Figure 2). However, it is to be expected clients will increasingly prefer wireless access.

CP_2007-05_wifi_htl_grphq2

When questioned about the importance to them of knowing that an accommodation establishment had a public space with high‑speed internet access, almost half (49%) of the business travellers surveyed (compared to 36% of leisure travellers; see Figure 3) felt this amenity was very important as long as it was provided free of charge. Travellers who are prepared to pay for this type of service are in the minority.

CP_2007-05_wifi_htl_grphq3

As soon as a cost is attached to internet access it becomes clear just how much travellers expect to receive it for free (Figures 4 and 5). Interestingly enough, 9% of leisure travellers not only refuse to pay for high‑speed internet but would quite simply stay elsewhere where the service is provided for free. Almost one quarter (23%) of business travellers feel the same way.

CP_2007-05_wifi_htl_grphq4

The majority, or 58%, of leisure travellers have less definite opinions: although they do not necessarily want to pay for internet access they would not change establishments in order to get it for free. However, 37% of business travellers would. Regardless of the type of travel, one out of five feels that $5 a day or less is an acceptable amount to pay for this type of service. Only 2% of tourists and 7% of business people would pay $10 or more.

CP_2007-05_wifi_htl_grphq5

There is one final factor that only affects business travellers, and that is the availability of Internet access in conference rooms. Roughly 44% feel that high‑speed wireless service is very important when it is provided for free, compared to 24% who still think it is important even if there is a charge for that service.

CP_2007-05_wifi_htl_grphq6

As the number of wi‑fi hotspots grows they will become an increasingly large part of consumers’ everyday life. In fact, a number of cities are working toward turning some of their neighbourhoods into wi‑fi areas, with either paid or free access. For instance, in September 2006, Toronto’s financial district went wireless. Industry players, particularly hotel owners, need to adapt to this trend because clients are becoming ever‑more demanding in that respect.

Catégories
etourism and technology Marketing @en

Your client’s friends are your friends

Corporate marketing strategies tend to focus on the following questions: who are we trying to reach, and how and when can we reach them? In other words, a company will base its marketing decisions on the data – mainly geographic or demographic – it has about its current and potential clients. Network-based marketing brings another variable into play, namely « who is in contact with whom? » This is an important question, for we know that a person in contact with one of our current clients is more likely to be interested in our product or service.

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).

Amazon_clients_friends1

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.

clients_friends2

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

Catégories
etourism and technology Trends

Web 2.0 extends to both tourism and culture

The internet continues to evolve at a rapid pace. Indeed, recent changes have been so profound that they have led to the introduction of the phrase “Web 2.0”, which has quickly become the trendy, catch-all term used to describe the new ideology that is shaping the internet. This new approach has been adopted by numerous sectors but specifically by the tourism industry, giving rise to the term “Tourism 2.0”. Some see this as a trend that will quickly spread to other sectors. If that is indeed the case, when will we see the emergence of “Culture 2.0”?

The 2.0 Philosophy

With Web 1.0, internet users could do little more than browse for information on professionally‑constructed sites, using tools developed by a limited number of companies. The advent of the 2.0 era means users are now active participants, able to produce their own tools and data. They interact with the medium by creating, modifying, organizing, commenting on and uploading content.

Users can take advantage of the internet’s expanded functionalities to build virtual communities where they share information, favourite sites, photos, videos and much more. A wide range of tools have been developed that strengthen the Web’s influence: blogs, news aggregators, forums, meta‑search engines, podcasts, and so on. Some of the better‑known icons of Web 2.0 are:

  • Wikipedia: web‑based free‑content encyclopaedia project
  • Flickr: photo sharing website
  • Del.icio.us: bookmark sharing website
  • Myspace: social website with filesharing
  • Youtube: video sharing website
  • Netvibes: personal news aggregator

The 2.0 trend is spreading!

Today’s internet community includes millions of members, and a great many of them are excited about 2.0. The number of online communities, websites and webtools is growing rapidly. When sectors see 2.0 added after the name, they know it identifies them as a domain where the critical mass of content and users matches the 2.0 mindset.

Already, there is increasing online use of the term “Medicine 2.0,” to refer to the proliferation of sites where people share information and advice, enabling them to confirm a doctor’s diagnosis or diagnose their own illness by comparing their own symptoms with those listed online.

Tourism 2.0

Already a mainstay of the online world, the tourism sector lost no time in adopting the 2.0 philosophy; after all, travel has always involved an element of exchange between individuals. Also, since nobody can try a trip before they buy it, tourism is the perfect commodity to bring individuals together online where they can provide the inside scoop on vacation deals. The kind of networking made possible by the web is the perfect stepping stone to sites that promote the sharing of photos, videos, opinions, advice and referrals related to tourism destinations.

With popular influence rapidly growing, the role of critic and consultant is no longer the exclusive domain of professionals and the same is also true of control over the image of a company or destination. One of the results of web users being able to produce and broadcast information and visual content is that the general public is faced with increasing amounts of material of uneven quality. The power of internet users is so great that it influences the way information is organized and accessed.

It is precisely the emergence of a significant number of web‑tools and sites, specifically geared toward tourism and inspired by the Web 2.0 mindset, that gave rise to the term Tourism 2.0.

Culture 2.0… it’s only a question of time!

Culture in general already has a significant web presence. Many cultural organizations and artists were quick to take advantage of the web’s ability to reach new audiences by creating virtual museums, online art galleries, live concert broadcasts and increased access to archival material – although these offerings are mostly based on Web 1.0.

However, we are starting to see an increasing number of cultural projects that have been more influenced by the 2.0 philosophy, where the general public participates and is involved in creating, personalizing, classifying and broadcasting content. This trend is particularly pronounced among those in the vanguard of Web 2.0, all of whom devote part of their space to culture:

  • Wikipedia lets internet users collaborate on writing encyclopaedia articles on a wide range of cultural topics;
  • Youtube lets millions of amateur and professional artists upload video clips and short films;
  • Various blogs and forums provide a space for authors to share and discuss their work with other community members.

A certain number of cultural entities are also trying to exploit the potential of Web 2.0; among them:

  • www.cinemamontreal.com: A space devoted to commercial film, this site now lets people upload and read reviews and comments.
  • www.librarything.com: This site lets people catalogue their personal book collection, share it with other community members and make recommendations; it claims it has 100,000 users and 7 million books.
  • www.brooklynmuseum.org/community/blogs/: This section of the Brooklyn Museum’s website features blogs and photo‑, video‑ and document‑sharing as a means of promoting interaction with its community. The museum has also designed an impressive space on Myspace, the biggest social networking website (www.myspace.com/brooklynmuseum).
  • www.australiadancing.org: Clicking on the Take Part tab on this dance site takes the user to a page that uses “wikis,” a collaborative online tool, to let people share their knowledge, ideas and news about dance.
  • www.nzlive.com: Developed by New Zealand’s Ministry for Culture & Heritage, “New Zealand culture online” provides an online space that cultural partners and the general public can use to display information on a wide variety of cultural activities.

When the number of site and users reaches critical mass, the Culture 2.0 movement will take flight!

Culture 2.0…a world of opportunity!

Your clients want to express themselves and get involved, so give them the tools to do it! Adding a blog, forum, comments, opinion or review page to your site will enable them to interact not only with you, but also with each other.

Managers can make good use of this new public‑generated content (blogs, forums, virtual communities, social networks, comment sites, etc.) to learn what their clientele is actually thinking. Monitoring client comments is often much more effective than using customer comment cards, and definitely less expensive than setting up a focus group.

Sources:

– Krajewski, Pascal, “La Culture au risque du Web 2.0 – Stage d’étude,” École nationale supérieure des sciences de l’information et des bibliothèques, December 2006.
– Péloquin, Claude, “Web 2.0, vous n’avez pas fini d’en entendre parler!,” Réseau de veille en tourisme, Chaire de tourisme Transat ESG Uqam, June 27, 2006.

Catégories
etourism and technology Management Marketing @en

Web marketing for SMEs

You may think it’s impossible to increase your company’s Internet effectiveness with a marketing budget of only $3,000, but a variety of low‑cost strategies exist, whether you need to enhance your Web presence or conduct an email campaign. According to Merrill Lynch, over 39% of all travel‑related transactions will be conducted online by 2007. Many hotels already book over half their rooms online. For other businesses, embracing the World Wide Web is more difficult and takes longer to produce results.

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

Alexa1

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

Alexa2

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

Alexa3

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

CP_2007-02_marketing_web_grphq1

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.

Catégories
etourism and technology Management Trends

Today’s customers influence tomorrow’s choices

The opportunity to review a lodging establishment, restaurant, transportation company or destination is no longer a privilege reserved to professionals. As part of the Web 2.0 phenomenon, consumers now have many opportunities to share their opinions and evaluations of their travel experiences with other consumers. Whether you are pleased or dismayed with this turn of events, more than ever, the customers you serve today are influencing those you will serve tomorrow.

Welcome to the world of personal reviews

Not so long ago, recognized travel guides like CAA‑AAA, Fodor’s, Frommer’s, Michelin, Mobil and others were the primary reference tools for consumers trying to judge the quality of a specific hotel or restaurant. Written by professionals, these works nonetheless conveyed a single point of view, updated annually and articulated by a critic following a standardized evaluation grid.

Recognizing the limits of these traditional guides and the potential of the Web, consumers have quickly taken advantage of technological platforms enabling them to share their reviews and evaluations of their lodging, transportation and dining experiences. Since the Web also makes it easy to share visuals, these consumer‑generated reviews have quickly adopted the use of photos and videos to better illustrate an individual’s impressions of a business or destination.

Leaders in the field

With over 20 million unique monthly visitors, Tripadvisor.com is currently the uncontested leader of consumer review sites. The site contains more than 5 million reviews of over 164,000 hotels in 24,000 destinations. Travellers seeking the opinions of fellow travellers have a number of options to choose from: My Travel Guide, IGoUGo, Travelpost, etc.

Specialized sites, like Skytrax, have even been developed to enable travellers to consult and write reviews specifically about the airline industry (airlines, airports, types of aircraft, on‑board meals, etc.). Furthermore, some popular sites featuring general consumer reviews, like www.epinions.com, have now added “travel” to the long list of products and services that can be reviewed by members of the public.

In light of the format’s popularity, major travel portals like Expedia, Orbitz and Travelocity have developed tools to enable users to post online reviews. For their part, major players like Cheaptickets and YahooTravel have opted instead for alliances, allowing them access to the peer review databases of partner sites.

The rapid growth of this mass‑audience Web‑based alternative has hurt publishers. To deal with the situation, some, like AAA, Fodor’s and Alastair Sawday, have chosen to add peer review sections to their websites.

Detailed evaluations and comprehensive reviews

To encourage consumers to write more specific reviews, the best systems ask users to evaluate various aspects of their experience. When it comes to lodging, reviewers are asked to rate the following: price, quality‑price ratio, cleanliness, location, service, reception, restaurant or bar, the pool or workout room, etc. This breakdown in the evaluation helps users develop a better idea of the product as it relates to their personal preferences and concerns.

Most sites also suggest that the reviewer provide a short personal description as well, which allows users to give greater credence to comments expressed by consumers with similar profiles. Some common descriptors are age, gender, purpose of stay, budget and previous travel experience.

Relevance and validity of peer reviews

Many people remain sceptical about this business model, which seems to allow people to write whatever they feel like with no validation process whatsoever. However, those running the sites feel that the sheer number of users and reviews helps ensure that these evaluations are both regulated and representative. In fact, when there are many evaluations, the overall average cannot be significantly affected by the addition of a single biased review. In any event, consumers appear to be more interested in establishments that attract a lot of reviews, regardless of whether these comments are positive or negative.

These sites are also starting to feature functionalities that let users rate the usefulness of a review or report a review as having inappropriate content. When a review is posted is another factor in its relevancy. In this respect, site policies vary when it comes to managing past reviews. Expedia only displays the 25 most recent reviews, Travelocity leaves all reviews online for one year and Trip Advisor never removes them.

Business responses to reviews

To enhance the integrity of its evaluations, TripAdvisor invites representatives of hotels, restaurants and tourist attractions to post responses to reviews of their establishments. This option is often very useful for informing travellers that a particular problem has been resolved (e.g., renovations are complete).

And should managers be tempted to invent fictitious customers to write glowing reviews of their establishments, they should know that the Sunday Times in England did a study of online reviews, leading to the discovery that some hotel and restaurant owners had done just that, a practice that severely tarnished their reputations.

Making good use of review sites

According to a survey conducted by the US firm HeBS (Hospitality eBusiness Strategies), over 81% of hotel owners feel growing consumer participation in generating Web content is a situation that can work to their advantage. Managers can use this new content (blogs, forums, virtual communities, social networks, review sites, etc.) to find out what their customers are really thinking. Quite often, monitoring customer‑generated reviews is more enlightening than using guest comment cards and less expensive than organizing a focus group.

The future of traditional rating systems

Given the popularity of consumer review sites, one wonders whether this new form of rating will replace the old system. For the consumer, traditional classifications are a simple way to quickly assess the array of services offered by an establishment and more easily determine its quality‑price ratio. However, if no ratings exist for a given service or experience, consumers are increasingly turning to peer reviews for help making their choices.

Sources:

Grossman, David. “Let your Fellow Travelers Be your Guide,” USA TODAY/Smith Travel Research [www.usatoday.com], June 25, 2006.
Lamb, Gregory M. “Next Wave of Travel Websites Feels Like MySpace,” eTurboNews, June 21, 2006.
Price, Jason and Max Starkov. “Consumer‑Generated Media, a Threat or an Opportunity?” ehotelier.com, December 13, 2006.
Swinford, Steven and Gareth Walsh. “Glowing Online Reviews by Hotels and Restaurants Dupe Customers,” The Sunday Times [www.timesonline.co.uk], November 12, 2006.

Catégories
etourism and technology Marketing @en

RSS feeds: what are they anyway?

RSS feeds: Everyone’s talking about them, but no one knows what they are! Does the term « RSS feed » mean anything to you? Don’t worry if it doesn’t, because you certainly aren’t the only one. This new form of internet communication is one of many new simplified tools that help consumers exercise greater control over the information they wish to receive. The growing popularity of RSS feeds will not only change the way that users generally find information on the Web, it will also influence the e-marketing strategies of businesses.

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.