Catégories
Management Marketing @en

Creating an Effective Social Media Strategy

“Take the time.” This is probably the main reason most companies have not yet set up a strategic approach to their social media initiatives, even though the time they devote to it would be well rewarded. By doing so, your organization could have a more structured approach, undertake more targeted initiatives and achieve truly significant business objectives.

Here are some worthwhile steps, from two training sessions given at Campus Infopresse by Jean-Sébastien Giroux, Vice-President and Partner at Substance Stratégies.

How Active Are You?

Several companies are already somewhat active on a few social media platforms. Before going any further, let’s take a moment to assess your existing presence. Are you an active user? Are all your profiles up to date, in terms of visual elements, description, contact information, administrator privileges, etc.? What is your goal for each social media channel? Filling in the following table will help provide an overview of your current situation.

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Now that you’ve got a clearer picture of your current level of activity, take another moment to ask yourself a few questions about other aspects of your social media presence, then make adjustments based on your answers. Some sample questions include:

  • Do your communities include your target audience?
  • Is your presence on every social media platform actually relevant?
  • What tactics have proven most effective in helping you reach your goals?

Set your goals and choose your tactics

Your goals are the reason for your social media presence, so bear them in mind when planning any activity on your various carefully chosen platforms.

Your goals are the reason for your social media presence, so bear them in mind when planning any activity on your various carefully chosen platforms. Be mindful of your company’s mission and vision when asking yourself: what do you want to accomplish through social media? It could be to:

  • Enhance your brand: showcase your corporate identity, become recognized in your field of expertise, humanize your company image, monitor its reputation;
  • Connect with your customers: provide customer service, share information, start a dialogue to find out your network’s opinion on a given topic, collect strategic information on their needs, preferences and expectations;
  • Gather competitive intelligence: learn about industry trends, find out what your competitors are up to, discover new approaches, stay on top of industry issues;
  • Develop your business: develop new channels for selling your products or services, advertise your product or service, inform your customers of promotions, improve your website conversion rate, find new partners, expand your customer base;
  • Recruit and network: identify new talent, promote your business to potential employees, run a recruitment campaign, network with industry professionals.

When identifying your goals, try to make them as specific, realistic and relevant as possible. This will help you measure your success in achieving them.

A strong knowledge of social media and of your target audience, choosing the right tactics also calls for creativity and a strategic mindset.

How do you intend to achieve the desired results? In addition to a strong knowledge of social media and of your target audience, choosing the right tactics also calls for creativity and a strategic mindset. Filling in the following table will help you develop an action plan.

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How you measure your performance depends on the goals you have identified. Broadly speaking, you should be aware that there are a number of tools that document your social media activity, starting with those provided by social media platforms. Google Analytics and other free or paid resources can provide essential information about your activity. However, always remember the qualitative aspects, such as the quality of conversation with your audience or the value of information collected.

Producing, Recognizing and Posting Quality Content

Listening to your communities and observing how they interact on your pages can help you

Mastering social media means always posting content that is well-suited to the platform. Content segmentation makes your company’s presence on its chosen social platforms more relevant and means it is more likely to achieve its objectives. Listening to your communities and observing how they interact on your pages can help you identify influencers and intermediaries, define your editorial policy and how you will communicate with your audience, understand the expectations of your network and adapt your content to them in order to increase its reach.

Branding your image on social media demands creativity and quality content. Publicizing that content requires planning in order to reach the right audience at the right time. Many online community leaders deal with this challenge by setting up a detailed posting schedule that gives them an overview of the content to be published according to format (text, photo and video) and type (inspirational, educational, events, promotional, etc.). Table 3 matches each content type with a colour so you can easily visualize what to post, when, on what social media. Depending on the level of activity across the platforms, days can be broken down into hours.

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Being present on social media means accepting that not all interactions can be planned, nor can all discussions be controlled. You must therefore allow for spontaneity, be prepared to moderate some conversations, establish a netiquette and have an emergency plan in place in case certain situations get out of hand. Developing a decision matrix ahead of time will help community managers decide what resources to call upon, and what decisions to make, in tricky situations.

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Knowing the characteristics of each social media platform, creating value-added content that begs to be shared and reshared as a means of helping you achieve your own specific goals – this is an exciting challenge! Whether you manage your social media yourself or hire an expert to do it for you, don’t waste any more time improvising. The time to create your social media strategy is now!

 

Source of the header image: © istockphoto

Catégories
Marketing @en

Choosing the Most Outstanding Attractions

Rather than letting potential visitors browse through hundreds of offers to get a feel for the place, destinations are taking a more proactive approach. They have started showcasing only their flagship products to inspire visitors, spark the imagination and get them dreaming. Visitors to the destination’s website will learn at a glance what makes that place distinctive, and will create an enduring mental image for themselves.

 

Selecting Means Rejecting

Trying to focus on everything the destination offers decreases the impact of its message. However, crafting a more targeted message designed to create a strong first impression necessarily involves choices. Some destinations have managed this feat brilliantly and are now turning their attention to secondary tourist products related to these primary attractions. Ultimately, the entire tourism industry wins. Here are some examples.

The Seven Wonders of Oregon

In 2013, the Travel Oregon destination marketing organization launched the Seven Wonders of Oregon campaign that focussed specifically on seven of the Western U.S. state’s iconic natural attractions. Thereafter, all the state’s marketing tools and initiatives were centred on those seven attractions. Visitors are encouraged to come or return to Oregon to see them all, in other words, to “collect” them. Campaigns for each of the individual attractions cast a much wider net by presenting the surrounding attractions. The following video describes the idea behind the campaign and provides a teaser about each of the Seven Wonders themselves.

Source: YouTube

One year later, tourism in Oregon shows solid growth:

  • more international travelers (9%);
  • an increase in revenue for different types of accommodation (10%);
  • an increase in the number of requests for information (39%);
  • more traffic on Travel Oregon’s website and its various social media accounts;
  • the economic benefits from tourism reached US$10 billion, and more than 101,000 direct jobs for Oregonians.

In 2014 and 2015, Travel Oregon received numerous awards, including Best Destination Website from the U.S. Travel Association. A brand new campaign, scheduled for spring 2016, will showcase the Seven Wonders of Oregon from a different angle.

Travel _Oregon_7_wonders

Source: Travel Oregon

San Francisco’s Must-See Places

San Francisco Travel, the city’s destination marketing organization, also won awards for its website. Visitors find it easy to explore the city’s many offerings because of the site’s bold new design, effective visuals and suggested itineraries based on specific needs and interests.

The home page gives users a crash course in the city’s most iconic landmarks. Six of them are shown at the bottom of the screen, reminding users at a glance of the city’s strong, well-developed and widely-recognized tourism product, and the must-see places that amply justify a visit to San Francisco.

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Source: San Francisco Travel

Utah’s Mighty 5® Campaign

If you try to say you’ve got something for everyone, your message gets lost and you end up saying nothing at all. So says Alex Fuller, Creative Director of the ad agency behind Visit Utah. She also explains the importance of not getting stuck in a rut, of boldly leveraging an established asset and sticking to your message. The idea of promoting the destination through its national parks is not new, but the message and the proposal are: turn Utah’s five national parks into one destination, one product, one challenge: something to check off your bucket list, like seeing the Grand Canyon. Check out the video ad for the Mighty 5® Campaign.

Source: YouTube

This campaign put Utah on tourists’ radar, especially at the international level. For the past 10 years, Utah’s tourism has grown by 44%, compared with a mere 35% growth for its neighbours. According to Vicki Varela, Utah Office of Tourism Director, Utah is now officially “on the map.”

Staking out a Strong Position

Other destinations are also relying on selected themes to position themselves effectively, as Greenland has done with its The Big Arctic Five campaign. There is also the trend of offering must-see or must-visit attractions that make planning easier, especially for those about to embark on their first visit. Notable examples of this trend are Visit Copenhagen, Destination British Columbia (British Columbia’s destination marketing organization), and the Québec City region.

Every stakeholder wants their advertising campaign to accurately portray their product. But, all too often, by trying to please everyone – members and visitors alike – some destination marketing organizations diminish the impact of the region’s distinctive attractions. As demonstrated by the aforementioned examples, you can win big if you grab the potential visitor’s attention, and get on the list of dream destinations, by focussing on just a few brand identity assets; the rest will happen at another marketing level.

 

Source of the header image: Visit Utah ou Travel Oregon

Catégories
Marketing @en Products and activities

Innovative promotions from the events industry

A best practices benchmarking study of the festivals and events industry carried out by the Transat Chair in Tourism for Festival et Événements Québec and several other partners highlights initiatives in various facets of the events industry. Here are some examples of these practices in the fields of promotion, product development and customer experience.

Film

Video is a powerful media, especially when it comes to promoting an intangible product. Festivals understand this. Tomorrowland, the Belgian electronic music festival, creates a half hour film to recap each year’s edition. The 2012 Official Aftermovie has been viewed nearly 16 million times. This video is featured on the Tomorrowland website’s home page.

Source: Tomorrowland.com

Think social media

In addition to video, the Wanderlust yoga festival has developed several tools to promote its events. Organizers provide models for social media status updates to encourage participants to share information and message templates for yoga teachers who would like to invite their students (see example below).

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Source: Wanderlust.com

On top of its official account, which organizers use to publish festival news, the Glastonbury Festival of Contemporary Performing Arts created the @Glastoinfo Twitter account specifically to act as an information centre. During the festival, authorized users of this account answer questions from festival-goers from 8:00 am to 11:30 pm.

For the 2014 edition of the Tomorrowland festival, organizers linked attendees’ RFID bracelets to Facebook to help them make new contacts. When two festival-goers in the same vicinity pressed a button on their wristbands at the same time, they were each sent a Facebook friend request.

Go off-site

The Nashville airport is promoting Bonnaroo by featuring works of art inspired by the music festival.

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Taking place in late February, the Glasgow Film Festival in October presents free screenings of movie classics in shopping centres or department stores. During the festival itself, films are also screened in unusual places, like the subway and Glasgow Cathedral.

The Bluesfest in Ottawa has joined forces with its neighbour, the Canadian War Museum, for the display of festival posters. During the Bluesfest, the Museum’s lobby walls are decorated with an array of posters from past years.

Engage the community

The Reebok Spartan Race and the Festival IF3 have put together teams of ambassadors who work to publicize the events and encourage people to register. The Spartan Race Street Team will be made up of over 5000 members around the globe. The more people these team members sign up for the race, the more rewards they receive, like products, coupons or free admission.

Bluesfest organizers have also set up an advisory committee of some fifteen high school and university students to better identify their interests and ways to reach this public.

Since 1980, the Edinburgh Festival Fringe has organized a competition inviting young people ages 5 to 16 to create the official festival poster.

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Source: edfringe.com

For its events in Montreal and Quebec City, the IF3 International Freeski Film Festival holds a contest inviting local amateur filmmakers to create  an urban skiing video and present it at the festival.

Improve your product

Events must renew their product offerings to maintain their momentum, stay competitive and encourage return visitors. At the Melbourne Food and Wine Festival, a temporary structure featuring the theme of water was set up on the banks of the Yarra River. A three-storey space with an open kitchen, floating bar and rain garden, the Immersery – Festival Kitchen, Bar & Raingarden was the centrepiece of the 2014 edition.

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Source: Archello.com

The Reykjavik Winter Lights Festival  has featured Pool Night since 2012. Five pools and a spa offer an evening of swimming with a light show, music and various activities.

The 2014 edition of the Glasgow Film Festival included Street Food Cinema, which offered the public an opportunity to enjoy dishes associated with the film being screened.

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Source: Glasgow Film Festival

Customize

The events industry has not escaped the trend of increasingly personalized service. The National Arts Festival in Grahamstown, South Africa, and the South by Southwest (SXSW) multimedia happening in Austin, Texas, have both created customizable areas on their websites, where attendees can create a list of favourites, plan their schedule and manage their loyalty program.

This is also true of the Festival d’Avignon and Lollapalooza music festival websites, the latter of which features the « My Lolla » zone that enables users to create their own festival page with their favourite artists, custom lineup and the type of information they wish to receive. They can then share their choices on social media.

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Source: Lollapalooza

Get inspired

Festivals and events follow and adopt the trends that best suit their themes and target customer segments. The events studied are constantly evolving and demonstrate truly inspiring energy and creativity.

 

Analysis written in co-operation with Caroline Lévesque

 

Image on first page: © Minnie Roe, The Edinburgh Festival Fringe

Catégories
Marketing @en Products and activities

Adventure tourism goes sustainable

According to TripAdvisor, in 2012, 70% of American travellers said they planned to make more environmentally responsible travel choices in the next twelve months; for its part, Trendwatching predicted that in 2013, tourists will be trying to make more tangible, environmentally beneficial contributions to destinations. What follows are the trends and best practices of a promising niche: sustainable adventure tourism.

A booming market

Outdoor travel companies are becoming more and more profitable. In fact, according to a study from the Adventure Travel Trade Association (ATTA), 63% of adventure tour operators saw gross revenues increase in 2011. The study goes on to say that adventure tourism receipts went up by 17% between 2009 and 2010, indicating the market is in a growth phase.  The Adventure Tourism Development Index noted that, globally, one in four trips in 2011 included an adventure travel component. If this trend continues, adventure could be a reason behind nearly 50% of all trips by the year 2050.

Tourists increasingly sensitive to sustainability issues

Several 2012 studies reveal that consumer values are evolving; many of today’s travellers attach a great deal of importance to sustainable development.

  • The Global Corporate Citizenship Survey, an online survey of 28,000 consumers in 56 countries by research firm Nielsen, reports that two-thirds of individuals surveyed prefer to buy products and services from companies that benefit the host community. Furthermore, almost half of respondents were willing to pay more for services from such socially-conscious companies.
  • A TripAdvisor survey of 700 American travellers shows that 71% plan to engage in more environmentally responsible travel in the next twelve months.
  • A Travel Foundation report indicates that 70% of international tourists believe that businesses should be committed to preserving the environment.

In Quebec, according to the March 2011 Ipsos online survey conducted with the Tourism Intelligence Network (see: survey highlights in French), 43% of respondents consider respect for sustainable development principles as a primary factor in their decision to patronize a tourism company. Also, when selecting an online travel supplier, 38% of consumers prefer those that offer eco-friendly products and services.

The ATTA interviewed a number of adventure tour operators from Europe, North America and Latin America for their opinions on the industry’s current realities. Those surveyed mentioned, among other things, the growing importance of sustainable values among adventure travellers in the last few years. Other phenomena mentioned in these interviews support this trend:

  • the search for personalized, intense, authentic tourist experiences
  • an interest in local culture and the desire to give back to host communities
  • a concern for the environment and equity
  • an interest in health, physical activity and a « greener » lifestyle

According to Chris Doyle, ATTA Executive Director-Europe, the tourism industry must develop in a more responsible manner and redouble its efforts to preserve culture, flora and fauna. He adds that the best way for the industry to increase its impact is to convert travellers into defenders of destinations and their local cultures and environment. For this reason, more and more travel companies are adopting social and environmental best practices to meet the needs of adventure tourists.

Inspiring examples

The economic contribution of bicycle tourism

In addition to its limited ecological footprint and enhanced opportunities for interaction with local culture, the phenomenon of bicycle touring generates interesting economic benefits for rural communities. Since cyclists advance at a slower pace, they often spend their money in smaller municipalities, in other words, locations that are sometimes less popular with automobile tourists. The following clip clearly illustrates this reality.

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Source: The Path Less Pedaled

In Brittany, towns that belong to the « Station verte » label (green resort villages) rely on bicycle touring to attract visitors. These destinations, which offer accommodations, services and nature activities, have created a 1,000-km route linking 30 stations vertes. The region is now developing other itineraries, given the success of the first one.

Hotels involved in their community

The Playa Nicuesa Rainforest Lodge, located on an island in Costa Rica, offers its clientele a « 5-leaf » experience, the country’s highest rating in the certification for sustainable tourism program. In addition to numerous traditional activities (hiking, kayaking, scuba diving, etc.), tourists can participate in discussions about ecology and even go and plant their own tree in the tropical forest!

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Source: Playa Nicuesa Rainforest Lodge

Preservation as a prime concern

Clients of Aube Aventure, a company located in Gaspé, can enjoy sleeping in yurts as well as activities like sea kayaking and sailing. Winner of the Sustainable Development award from the city and chamber of commerce of Gaspé, Aube Aventure is known for its efforts to protect the environment and marine mammals as well as its contribution to the St. Lawrence Water Trail (route bleue). Its Quality Tourism Gaspésie certification guarantees the quality of its local services, facilities and menus. Aube Aventure is also a member of the Leave No Trace program, which aims to reduce the impact of outdoor activities on the natural environment.

 le_tourisme_daventure_sur_la_voie_durable_image_2

Source: Aube Aventure

Changes in consumer behaviour are influencing the development of many tourism companies, including some working in the outdoor travel industry. Which ones do you feel have done the most to adopt more sustainable products and services?

This article was written for the EspaceTourismeDurable.com Website, which serves tourism stakeholders in the Gaspé Peninsula and Magdalen Islands.

Catégories
etourism and technology Marketing @en

Instagram: A mobile partner for the tourism industry

With 40 million photos uploaded per day and 8500 « likes » and 1000 comments per second, the Instagram mobile application has become an essential tool for Marketing 2.0.

Named « Application of the Year » by Apple in 2011, Instagram has popularized the art of mobile phone photography, or iPhoneography, by enabling users to personalize and share their photos with others. Purchased by Facebook for US$1 billion in April 2012, a year later Instagram boasts a community of more than 100 million monthly active users.

Hugely popular among young adults, Instagram offers businesses an ideal opportunity to enhance their visibility and public relations, especially if their target public includes members of Generation Y. Many brands, including companies working in the tourism industry, have joined the network and made it part of their marketing strategy.

Instagram 101

For those of you unfamiliar with Instagram, here’s how it works:

  • After taking a picture using Instagram or selecting a saved photo from your phone, you can modify the final image with one of the application’s 18 automatic filters before sharing it with your network.

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  • Similar to Twitter, members subscribe to the accounts they want to follow and use #hashtags to label or describe their photos. Just like on Facebook, viewers can express appreciation for an image by « liking » it; they can also post comments.

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  • Moreover, the application can be used to share photos on other social platforms.

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  • Although Instagram does have a Web version, other Websites have adapted the mobile platform for larger screens, making it easier to navigate and manage your account: Webstagram, Statigram and Pintacular.

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Source: Pintacular

How can tourism businesses and organizations benefit from Instagram?

With Instagram, businesses have access to user-generated mobile-optimized content. A convergence of two major trends, the rise in visual marketing content and SoLoMo (see also: Vous avez dit SoLoMo?), this medium is generating interest in the tourism industry, which sees it as a new way for communicating with clients. Making Instagram part of your marketing strategy can provide the following benefits:

  • Develop your brand image. Instagram can introduce users to a variety of interesting photos associated with the brand or destination.
  • Strengthen customer relations. Analyzing Instagram photo searches can help businesses better understand their target clientele. They can use the application to interact with their target market and participate in conversations about certain images, thus reaching a different digital community to complement those in other social media.
  • Create visual content. An organization can repost the best user photos of its establishment or destination on its own account. When you do this, the firm Adviso suggests adding a message to the photo mentioning the name of the user who took the picture, to give photo credit. You can also include Instagram photo albums on your Facebook page, thereby increasing the amount of visual content shared with your fans.
  • Increase your mobile presence among travellers. Instagram can be useful at every stage of the travel cycle, not just during a stay. Its content can provide inspiration, encouragement and guidance during the planning stage, and keep a potential visitor connected with the destination or organization after the initial contact. It is an opportunity to increase one’s presence among connected customers.

How can individuals use Instagram in the context of tourism?

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What tourism businesses or destinations use Instagram?

The Canadian Tourism Commission has added Instagram to its social media strategy with the ExploreCanada account, which has nearly 15,000 followers. It invites members of the tourism industry to post images using the hashtag #ExploreCanada.

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Source: ExploreCanada

The destination management organizations of Nova Scotia, British Columbia and Alberta have also created hashtags to showcase their destinations.

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Source: #visitnovascotia, #tourismbc, #travelalberta on Instagram

Tourisme Montréal encourages the use of hashtag #MTL and incorporates user-generated Instagram photos in a page on its blog, Vivez Montreal/The Montreal Buzz. Some images are also reposted on its Facebook page or put together to form a special blog post. For summer 2013, the site has developed a strategy using the hashtag #mtlmoments on Instagram and Twitter.

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Source: The Montreal Buzz

The number of major hotel chains using Instagram more than quadrupled in one year, from 19% in 2011 to 82% in 2012, according to Digital IQ Index: Hotels 2013. Some brands, like the Shangri-La and Four Seasons, have come up with hashtags (#lovingthemoment and #FSFotog, respectively) to encourage guests to share photos of their hotel stays.

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Source: @althotel, @intercontinental and @fairmonthotels on Instagram

Furthermore, the ALT Hotel banner launched its second mobile photo contest, #ALTexpo, to create a mural of digital photos for the lobby of its new hotel at Halifax Stanfield International Airport. The video below presents a behind-the-scenes look at the first edition of the contest, organized for the ALT Hotel at Toronto Pearson International Airport:

<iframe width= »560″ height= »315″ src= »http://www.youtube.com/embed/Od3CEQRrXpU » frameborder= »0″ allowfullscreen></iframe>

www.youtube.com/watch?v=Od3CEQRrXpU

The application has also been enthusiastically adopted by the airlines, particularly Air Canada and WestJet.

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Source: @WestJet, @Air France and @AirCanada on Instagram

With an adoption rate of 18% in the United States, Instagram is still an emerging platform, currently used primarily by young people. Some 28% of Americans ages 18 to 29 used Instagram in 2012, compared to 14% of 30 to 49 year-olds and 3% of 50 to 64 year-olds. However, it has significant growth potential and relevance for tourism, which is reflected in its current popularity among numerous industry organizations.

Catégories
Accommodation

Ancillary revenues in the hotel industry

Mobile technology can help hoteliers increase their sales of ancillary products and services.

Though ancillary products and services (add-ons) were first introduced by the airlines, they are also sold by hotels, though less often. As long as hotels have the tools to promote such sales, there are numerous opportunities for increasing customer spending: fees for Internet, parking, breakfast, etc. Mobile technology is one such tool that can help boost additional revenues and enhance the customer’s hotel experience.

A practice used throughout the tourism industry

According to PhoCusWright, in 2011 U.S. hotels sold approximately US$1.85 billion in ancillary products and services, which accounted for 1.7% of the country’s total hotel revenues. Compared to the airline industry, a pioneer in the use of additional charges, the hotel sector is not very active. In fact, according to Amadeus, U.S. carriers generated $12.5 billion in ancillary revenues in 2011, representing an average 12% of a company’s operating results. The Forrester and Amadeus firms estimate that by the year 2015, ancillary sales will account for more than 18% of a tourism business’ total revenues.

What are these ancillary products and services?

In the hotel sector, rooms are the core product. All related products and services like food and drink, upgrades, and Internet, cancellation or early departure fees (see Table 1) generate ancillary revenues (see also: La «montée en gamme» ou comment générer des revenus supplémentaires tout en augmentant la satisfaction de la clientèle). They are supplied by the hotel itself or outside service providers (see also: La vente croisée: une source de revenu encore peu exploitée par l’industrie touristique), and are suggested by hotel employees, call centres or delivered automatically via technology.

AL_RevenusComplementaires_tab1_ENG

Mobile technology and its benefits for hotels

While hotel options can be purchased before (e.g., upgrade) or after the client’s stay (customized promotion for the next stay), the time to maximize ancillary revenues is when the client is actually present in the hotel.

 

According to PhoCusWright, mobile technology appears to be one means of accomplishing this by increasing the visibility of ancillary products and services at each point of contact with guests. Hotels with their own app or mobile website version can make customized, location-based offerings available on smart phones and tablets. Hotels have already realized the importance of this market, for many of them have added a tool for reserving spa treatments or ordering in-room services to their mobile site or app.

The many uses of mobile devices in hotels

When hotel in-room tablets are available, they boost sales of in-room services and on-demand films and games. QR codes can be placed in various locations throughout the establishment to facilitate communication AL_RevenusComplementaires_image1with guests, encourage customer feedback and promote specials at the restaurant or souvenir shop. Mobile payments using NFC technology (see also: La tendance cash-less gagne l’industrie touristique) also help hoteliers sell more ancillary products. Finally, hotels who belong to location-based social networking sites like Foursquare can use them to share promotions that entice clients to spend more (get the second breakfast free, two drinks for the price of one, etc.).

Micros’ MyStayManager application organizes a guest’s entire hotel stay: reservation, additional products and services as needed, check-in, in-room services, wake-up call, spa reservation, view of final bill and check-out. Hotels can send targeted promotions to each guest by email or text message, inviting them to take advantage of the services and products available in the establishment.

How can hotels increase ancillary revenues?

It is not easy to make ancillary sales.  Here are the challenges facing both managers and third parties:

  • Determine points of contact and the customer profile

PhoCusWright has identified the points of contact for each stage of the travel cycle (see Table 2), and there are numerous opportunities for hotels to increase ancillary sales. The firm recommends that hotels make greater use of « up-selling » when rooms are reserved, just like airlines do. According to Valyn Perini, CEO of OpenTravel Alliance, they can then make more offers between the booking date and arrival date.

AL_RevenusComplementaires_tab2_ENG

  • Have the right technology

The global distribution systems (GDS) of traditional travel agencies, online agencies and meta-search engines do not provide customers with access to all ancillary hotel products and services. This means that hotel managers have a competitive edge, if they can offer these products on their hotel website and they have high-performance management systems (see also: Technologies en hôtellerie: regard sur les systèmes de gestion).

  • Manage inventory and availability

Hotels must assess their potential future sales and anticipate how much inventory is needed. Some products are limited in number (e.g., spa treatments), while others can be sold without restriction (e.g., breakfast). It is also essential that product and service availability be updated in all reservation systems.

  • Other obstacles

Hoteliers hesitate to make ancillary products and services accessible via third-party distribution channels, because of the commission charged. Moreover, business travel agencies like Carlson Wagonlit Travel and American Express are not likely to suggest these options, because their clients are used to getting services comped in hotels and thus do not feel like they should pay.

Is there a magic formula?

To increase its ancillary revenues, an establishment must meet certain conditions: communicate effectively with its clients, know their preferences and needs, multiply opportunities for interaction, and adopt mobile technology and payment. If hoteliers suggest personalized products and services adapted to the traveller’s current stage (before, during or after the stay), these products will be perceived as value-added services and not sales.

 

Sources:

– Amadeus. « Airline ancillary revenue soars to $32.5 billion worldwide in 2011, » amadeus.com, 19 October 2011.

– Dandapani, Vijay. « Pricing Ancillary Goods and Services, » 4hoteliers.com, 6 March 2013.

– Google and Nielsen. « Mobile Search Moments – Understanding How Mobile Drives Conversions,« , google.com, March 2013.

– Juman, David and Ralph Merten. « Tee Times & Touchscreens: Hotels Leverage Mobile to Drive Ancillary Sales » insider.phocuswright.com, 13 February 2013.

– Merten, Ralph. « Hotel Ancillary Revenue in Europe, » PhoCusWright, January 2013.

– Samuels, Gerry. « Can mobile change the way travellers feel about ancillary products? » tnooz.com, 2 June 2011.

– Turner, Shawn A. «Hotel ancillary revenue model questioned, » hotelnewsnow.com, 9 March 2011.

 

Catégories
Products and activities Trends

Adventure Tourism Trends

If recreational equipment and residential components are included, the adventure sector is now a trillion-dollar industry. Commercial adventure tours make up only part of this sector, but a significant one. Outdoor tourism, largely adventure, makes up at least one-fifth of the global tourism industry. Adventure trends are therefore significant to the tourism industry as a whole.

Growth. In the past few decades, the commercial adventure tourism sector has continued to grow. Many cash-rich, time-poor, reasonably fit people now treat adventure activities as purchasable short-term holiday packages, rather than as lifetime personal investments in skills and equipment. This has led to expansion at both the low-skill and high-skill end of the adventure sector.

Product price pyramid. The adventure tourism industry includes a small number of very highly priced products which rely on specialized equipment, take place in remote areas, or require considerable prior skills, and a large number of short, low-priced, unskilled products in accessible areas close to major tourist gateways.

More luxury. The level of luxury available in adventure tours continues to increase. Backpacker buses are more comfortable. Wildlife heliski and diving lodges have spas and massage therapists. Dive boats, surfboats and heliski operations offer private charters with especially luxurious facilities. Expedition cruise boats have suites with satellite phones, and sometimes even a helicopter. It has almost become a truism that successful adventure tour operators continue to move up-market.

Adventure destinations. The number of tourist destinations marketing themselves specifically as adventure destinations, often using the term adventure capital, has increased greatly in recent years. Some of these are long-standing tourist destinations that have added new products or changed their marketing strategies. Others are small-scale destinations seeking to develop tourism through a portfolio of adventure products. Some also use adventure events as destination marketing tools. Adventure events are growing rapidly in number, scale and variety.

Amenity migration. In some areas, outdoor recreation opportunities and, to a lesser extent, commercial adventure tourism, have triggered amenity migration. This in turn has led to an increase in adventure tourism as the amenity migrants seek commercial opportunities to maintain their lifestyles.

Retail packaging. Many tour operators offer a portfolio of products at different destinations. They do not necessarily maintain an operational base at each of the destinations concerned. Most are retail packagers which sell a range of local tour products to an international clientele. There are also specialist tour operators which offer similar products or activities at multiple destinations.

Combination products. It has become commonplace for individual tour operators to offer a range of different adventure activities at a single destination. These are often packaged as a discounted bundle of individual tours, marketed as a « combo » product. Some combo products simply involve syndicated marketing, with on-ground activities operated by separate companies. Alternatively, a single company either buys up local competitors offering other activities, or acquires equipment, staff and permits to conduct similar activities itself.

Cross marketing. There is a strong trend towards increased cross-marketing links between adventure tourism products and other products purchased by the same consumers. These links are made through magazines, mailouts, inserts, Internet websites, television, films, fashion, shops and merchandising, mobile phones and music players, and entertainment venues such as nightclubs.

Exploratories. Many top-end adventure tourism companies now offer “exploratories” as well as routine tours. These are not necessarily first ascents, descents or traverses, but they are generally new itineraries, for that operator at least. The term is used both as a marketing device, to advertise adventure, and as a legal disclaimer, to warn clients that the trip may not necessarily run smoothly or according to plan.

Flexible itineraries. Other tour companies also make a virtue of necessity by advertising that their schedules or itineraries are flexible and that this is part of the adventure. This approach is used at both ends of the economic scale, from overland buses to polar expedition cruises.

Copycats and takeovers. Establishing a new adventure tourism product requires considerable investment in product development and marketing. Once a product has become well-known, other entrepreneurs often attempt to take over the operation, or establish copycat products at undercut prices. This is a particular risk for new products in developing countries. A number of examples are now well documented.

Insurance. Because of litigation, especially in North America, adventure tourism providers have become increasingly concerned over issues of potential liability. This has led to increasingly lengthy and complex pre-trip waivers and disclaimers, as well as much-increased insurance premiums. For some activities in some countries, it has simply driven many former providers out of the market. With reduced competition, remaining operators have increased prices so as to cover increased insurance costs. Liability-capping legislation, either general as in New Zealand or activity-specific as in some US states, is increasingly important for the future of the industry.

Source:

Buckley, R. (2006) Adventure Tourism, CABI, Oxford, [www.cabi.org].

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
Accommodation Marketing @en Trends

Are tourism brochures still effective?

Technological advances have called into question many traditional models, including the common tourism brochure. And yet, this form does not appear on the brink of extinction. Two studies have confirmed its usefulness, for it remains one of the most popular information sources for tourists. This is all the more true since most travellers alter their plans while travelling. In this respect, brochures play a greater role than the Internet, for example, in influencing the decisions of travellers who have already left home.

Measuring effectiveness

A traveller’s impression of a destination and choice of vacation spot and tourism services are influenced primarily by the individual’s prior experience. When a traveller opts to visit a place for the first time, other information sources like name recognition, reputation, price, advertising, the Internet, word of mouth, etc. are all very influential.

Kathleen L. Andereck, a professor at Arizona State University, wanted to better understand the effectiveness of the tourism brochure as a decision-making tool for tourists. To that end, she administered a survey to a sampling of people who had requested tourist information about Glendale, Arizona. According to Professor Andereck, the study showed that traditional brochures still have a major influence on travel decisions. Potential tourists who had requested a brochure showed an increased interest in the region, thanks to the information they received (Figure 1). In fact, 51% of respondents said they were interested or extremely interested in visiting Glendale after they received the brochure, while only 19% said this before they received the brochure.

Tourist brochures have a significant influence on other major travel decisions, particularly the decision to include the region in one’s travel plans (33%) or stay longer in the region (15%). The study’s author concludes, nonetheless, that a traveller’s initial impressions of a destination remain the strongest predictor of whether or not it will be included in one’s travel plans. On the other hand, a brochure’s effectiveness definitely increases interest in the destination and plays a part in determining how much time a tourist spends in the area.

The experience factor

Two segments were defined to measure the effect of the brochure: repeat visitors (those who had already been to Glendale) and visitors with no previous visits. The data showed that repeat visitors were more interested in visiting the area than the others were, before receiving the brochure. Interestingly, however, the two groups expressed virtually identical interest levels after receiving the information.

Therefore, among tourists who have never visited a given destination, a brochure can be very effective at positively influencing their level of interest. In addition, tourists who had never visited Glendale also indicated that the advertising had significantly altered their initial image or expectations.

Brochures appeal to women

The study sampling also illustrated significant differences in brochure effectiveness, according to the socio-demographic profile of potential visitors. The researchers noted that women were more likely than men to be positively influenced by this form of advertising. This was also true for the population segment of middle-aged people with lower incomes.

For destinations that are further away or less popular, as well as for organizations with limited financial means, confirmation of the traditional brochure’s effectiveness is good news. Relatively low production and distribution costs make the brochure accessible to everyone. However, it is important to take full advantage of the brochure’s two primary strengths, simplicity and colourfulness, and to find appropriate distribution points.

What about the Internet?

There has been much discussion about the importance of the Internet as a travel planning tool. According to the latest data from the CEFRIO (Centre francophone d’informatisation des organisations), 35% of all Quebeckers report that they use the Web to plan their travel. Obviously, destinations need not question the importance of a strong online visibility strategy. On the other hand, it is important to remember that not all travel decisions are made before leaving home and that many details get worked out during a trip. In fact, 62% of travellers look for information while travelling.

Professor Patrick Tierney from San Francisco State University interviewed 2569 tourists in Canada, the US and Ireland at hotels, attractions and visitor centres. His study reveals that once travellers leave home, brochures become the top planning tool (21%), followed by friend/relative and travel guides (15% each). Few people bother consulting the Internet while they are on vacation (11%).

The study also points out that, among tourists who had taken a brochure from a rack, 37% changed their travel plans due to the information in the brochure and 47% purchased something featured in the brochure.

Adapting the message

Another important consideration is the role of women in deciding and planning family vacations. Too often advertising is geared towards men, when women are the ones making the decisions. Furthermore, since women are more likely to be influenced by this form of marketing, it is crucial that promotional strategies be adapted to ensure that women can identify with the message.

Many experts are predicting a rosy future for electronic brochures, because they cost less to produce and are easier to update. However, they do not meet the needs of travelling tourists. It is also important to remember that the behaviours described above were in fact observed among people who wanted to receive a tourist brochure. The expected results of a mass mailing via a major daily or through other unsolicited channels would certainly not be comparable to the examples presented here.

Producing an attractive brochure is only half the battle. It must then find its way into the proper hands at the proper moment.

Sources:
– Andereck, Kathleen L. « Evaluation of a Tourist Brochure, » Journal of Travel & Tourism Marketing, Vol. 18 (2), 2005.
– Bieger, Thomas and Christian Laesser. « Information Sources for Travel Decisions: Toward a Source Process Model, » Journal of Travel Research, Vol. 42, May 2004.
– Riseley, Mark and Adam Daum. « Tour Operators Taking First Steps to Shelve Traditional Brochures. »
– Tierney, Patrick. « Comparison of the Effectiveness of Brochure Distribution in Racks to Other Tourist Information Sources, » San Francisco State University, December 15, 2003.