Étiquette : purchase behavior

Catégories
Sustainable tourism

Willingness to pay versus actual behavior

Need for sustainability in tourism?

There is no question that the travel and tourism industry needs to be more sustainable. Between 2012 and 2030, international tourist arrivals are expected to increase by an average of 43 million a year to reach 1.8 billion (United Nations World Tourism Organization, 2014). With this growth comes many negative impacts. For example, examining only one sector of the tourism industry, cruises, evidence shows multiple negative impacts. According to the Lighthouse Foundation (2014), a Caribbean cruise ship creates around 50 tons solid waste, 800,000 litres sewage and 130,000 litres grey water in one week.

Sustainability Demand

Numerous studies over the past few years by multiple travel providers have shown that travelers are willing to spend more money on sustainable travel. A 2012 report by The Travel Foundation and Forum for the Future found that 75% of consumers want a more responsible holiday. A TripAdvisor study also in 2012, stated that 71% of those surveyed said they would make environmentally friendly choices this year. In 2011, a study done by CondeNast Traveler said 58% of their travellers hotel choice is influenced by the support the hotel gives to the local community. Another study in 2011 Kuoni found that 22% of respondents said that sustainability is among the top three influencing factors when booking vacations (www.sustainabletourism.net) . Although consumers say they want more sustainability options, does this actually translate into practice and who are these consumers?

Actual Sustainability behaviour

In order to determine whether tourists had paid for sustainable tourism, research by Ryerson University (Kwan, Liu & Mak, 2014) was undertaken to determine tourist’s past spending. Results showed that 73% understood the meaning of sustainable travel and could outline specific practices that they believed would be more sustainable (e.g. donate to sustaianbility causes, stay at a green hotel, etc.). Thirty five percent had stayed in a green hotel in the last 12 months however over half of respondents were unsure which clearly exemplifies that green or sustainable branding may be a large issue for consumer decision making.

Other sustainability behaviours outlined that 39% often or always purchase local food when travelling. A much smaller percentage (10%) had purchased carbon offsets and 2% donated to a local sustainabilty project when on vacation.

When answering the research question, overall the findings showed that 37% of travellers actually paid more for sustainable tourism options. When asked how much more, however, although only 6% paid 10% or higher costs.

Demographically, it is the younger age groups who are more concerned. 18-24 (22%) and 25-34 (26%) year olds were more likely to pay more than older demographics. Additionally, females seem to be more concerned about the environment than men.

Conclusion

The research clearly states that travelers behaviour is shifting although it is still not commonplace. What is clear from this research is that sustainble tourism options must not priced higher than comparative options as the consumer that is willing to pay significantly more is a niche market.

Another conclusion is that although the consumer is aware of what sustainable tourism is, they may not necessarily be able to clearly identify sustainable tourism travel options or products when making their purchasing decisions. People may be aware of sustainability but they may still choose the easiest and most affordable options. If the industry wishes to see consumers purchase more earth friendly options then they must promote them more clearly to the customer.

This research also shows that if the industry is really going to protect the very resources that promote tourism, sustainability options for tourists needs to become the norm rather than the exception.

Catégories
Sustainable tourism Trends

Trends in Food Trucks: The use of local food

Local food consumption as a consumer trend

In recent years, there has been a visible shift in the demand and consumption of local and organic food. Local foods can be defined as food consumed within 100 miles of where it was produced (Hodges, Stevens, & Wysocki 2014), while other foods travel an average of 1500 miles before it reaches the consumer (Schnell, 2013).

Some of the benefits of eating local include product freshness, enriched flavour, higher nutritional and vitamin values. Research suggests consumers are aware of the benefits of consuming local foods and are willing to pay for it. Results of a recent study done in Florida shows the average spending per consumer on local foods were $43 a month in restaurants (Hodges et al., 2014).  

Do food trucks use local?

The Food and Agriculture Organization of the United Nations has recently confirmed that street food is being consumed by almost 2.5 billion people daily (Culinary Schools, 2013). The popularity and increase in numbers of this type of mobile operation has gained exposure and interest from customers in recent years.

This is mainly due to the increasing need that diners have for inexpensive, fast, and high quality gourmet food. Although this trend is increasing in restaurants, has the trend been noticed in the newer market – food trucks?

A study of food trucks in Toronto, Canada (Corpuz et al, 2014) found that customers would rather consume something grown in Ontario or Canada as oppose to having something imported into the country. When examining in-depth interviews from food trucks, results showed that 52% of the trucks claimed that they have used local products into their menu, 31% said they incorporate artisanal products, 11% said they use organic. Food trucks also source their food locally (63% source supplies from farmers markets) and claim they used those products to emphasize on healthier and cleaner food (40%) and better quality and taste (46%). Although the use of local or organic food leads to increased cost (83%), food truck operators are committed. As one interviewee stated, “It’s a strong component of our company values. As a company we believe that supporting the environment and maintaining a green footprint of our business is incredibly important”.

The data collected through the interviews indicated that food trucks prefer local because of customer preference.

The future of food?

A key aspect in sustainability for any business model is its customer base. Given the nature of food trucks and this study’s evidence of their passion for sourcing locally, customers associate themselves with the values of these trucks and develop a relationship with the owners. Consumers who purchase from food trucks are looking for a unique dining experience and food truck operators provide a unique offering in the industry.

Perhaps this sector of the food industry will push the local food movement even further.

 

Image: Urban Diner

Catégories
Customer segments Products and activities

Generation Y, the new face of business travel

Why take an interest in the business travel of Generation Y?

First of all, because of the potential: Millennials currently make up about one-third of all passengers on business flights in the United States and their share should rise to 50% by the year 2020, while that of Baby Boomers will drop to 11%.

Secondly, they spend more on travel than members of other generations, according to a survey by Boston Consulting Group. When travelling for business, they indulge in extras: they frequently make last-minute reservations, opt for refundable tickets, change their seat for one with more legroom, make changes to their itinerary, and splurge on high-end meals or onboard Wi-Fi, all of which leads to higher-than-average business travel expenditures.

Booking and planning travel

Spontaneity and connectivity are the hallmarks of Gen Y business travellers, so mobile devices are crucial: nearly one third (32%) of Millennials use smartphones to book travel while 20% use tablets, compared to just 12% of business travellers over 45. They are also much more likely than their elders to use mobile devices to enhance their travel experience: nearly three-quarters of them have travel apps on their smartphones.

for Gen Y, meetings have seven possible purposes: celebrate, decide, educate, ideate, network, produce and promote

To satisfy this demanding clientele, the Marriott chain has introduced an innovative concept that reinvents how meetings are planned. Meetings Imagined is a very visual, social site that offers expert advice, information on the latest trends in the world of event planning and hundreds of inspiring photos to stimulate creativity. Users of the site can work with the hotels to design customized experiences or browse the ideas proposed by participating hotels. They can also post their favourite images on social media sites like Facebook and Pinterest. The concept was the result of research showing that, for Gen Y, meetings have seven possible purposes: celebrate, decide, educate, ideate, network, produce and promote. So instead of concentrating solely on dates, rates and floor plans, the Meetings Imagined approach focusses on the specific purpose of the meeting to create and design a more personal experience.

CN_Affaires_Millenials_image1

The importance of social networks

The majority (80%) of young business travellers attach considerable importance to online reviews when planning travel. They are also much more likely to post a negative online review of a hotel, restaurant or mode of transport (airline, public transit, taxi or rental car): 26% of those 34 and under said they had done so in the last year, compared to 14% of their older peers. Hotels were the most popular subjects of negative reviews from US business travellers, just ahead of restaurants.

The popularity of « bleisure » travel

The line between business and leisure is become increasingly blurred, particularly among young people. According to a survey conducted by the Hilton Garden Inn chain, 84% of Gen Y business travellers are willing to extend a business trip to take in a few days of leisure, a much higher number than their older peers. Furthermore, 65% said that exploring a new city was the best part of a business trip.

Are Gen Y travellers loyal?

although inclined to join loyalty programs, they do not actually show a lot of brand loyalty

Young business travellers are more likely to join loyalty programs: half of them take such programs into account when booking flights (48%) and hotels (51%), compared to a third of travellers ages 46-65 (31% and 30%, respectively). That being said, although inclined to join loyalty programs, they do not actually show a lot of brand loyalty. In fact, they are less brand loyal than their elders and more apt to switch from one airline or hotel chain to another if they believe the loyalty program is better for them. In fact, Gen Y business travellers do not seek the same program benefits as their colleagues. For example, they are more likely to use airline miles and points on free or discounted travel rather than on upgrades.

Youth hostels, an interesting alternative to traditional hotels

Youth hostels are becoming more popular among hip young business travellers – especially those on a tight budget – who don’t want to spend an entire evening alone in their room. Generator Hostels is one such chain: on certain days of the week, particularly during the off-season, nearly 20% of its guests are young business travellers.  Another example is the Fusion in Prague, which is both a hotel and youth hostel. It offers individual standard rooms and dormitory-style accommodations, as well as non-traditional meeting spaces like its 360° Lounge Bar and Playroom, which features over-sized seating attached to the wall that can also be folded up and out of the way. In addition, its social media presence enables business travellers to meet other guests with similar interests, even before their arrival.

CN_Affaires_Millenials_image2

Young business travellers are still in the process of trying out different brands to determine what appeals to them most and best corresponds to their life style and travel habits. It is the ideal time for hotels, restaurants and other tourism stakeholders to listen to them and try to meet their expectations for they are the travellers of today… and tomorrow!

Catégories
Marketing @en

Retargeting: A growing trend in advertising

The US travel industry will spend US$3.35 billion on online advertising this year, a 14% increase over 2012, according to eMarketer. When it comes to optimizing the results of ad campaigns, some methods, like retargeting, generate truly impressive results.

What is ad retargeting?

Ad retargeting, also known as remarketing, is a behavioural segmentation strategy that leverages browsing data. When visitors leave a brand’s Website, a cookie is placed on their browser, which means they will subsequently see banner ads from this same brand when navigating on other sites or search engines (see image below). The business thus boosts its return on investment for advertising by targeting these potential clients, who are more likely to purchase than those who are unfamiliar with the brand.

AL_Reciblage_publicitaire_image1
Source: LaPresse.ca

the placement of the ad is less important than the person targeted.

As Andy Kauffman, Vice President, Global eCommerce Marketing at Marriott, explains, the placement of the ad is less important than the person targeted.

Different types of ads

The three types of banner ads present different content:

  • • The first displays just the brand, with a slogan that is catchy but not personalized. This generic banner reminds consumers of their visit to the site.
  • • The second features the most recent product viewed by the searcher before leaving the site. This type of banner can be used to target visitors who failed to make a transaction or else abandoned their shopping cart before purchasing. Since visitors like these were very advanced in the buying process, it may be easier to convince them to make a purchase. The brand may also offer a discount for the product in question.
  • • Finally, the third type of banner shows products similar to those viewed or purchased. Banners like these are the most relevant and personalized, because their content responds to the interests of the individuals targeted.

Real-time bidding

Real-time bidding (RTB) platforms for the sale and purchase of advertising space make retargeting even more effective. Known as ad exchanges, they operate according to the needs of advertisers and the availability of publishers. According to online marketing firm Mediative, RTB enables buyers to assess the value of an ad impression in real time and determine its current relevance to their campaign. Publishers no longer have to set a price in advance for a predetermined number of impressions, while buyers can purchase advertising when the current bid meets their budget.

Available to a variety of businesses

businesses with relatively modest budgets can give the impression of advertising across the entire Internet

Josiah Mackenzie, Director of Business Development at ReviewPro, notes that the primary advantage of retargeting is that businesses with relatively modest budgets can give the impression of advertising across the entire Internet. While there are specialized firms such as AdRoll, ReTargeter, Mediaforge and Criteo working in the field, businesses can also create their own retargeting campaigns using the Google Display Network to publish ads on affiliated sites or the search engine itself. In addition, this system offers users the option of targeting different customer segments (e.g., customers who have made a purchase in the last 30 to 90 days, customers who have previously taken action on a site, etc.).

In the travel industry, Expedia offers retargeting to its clients (hotels, airlines, etc.) through its marketing service, PassportAds. Banner ads are then displayed on selected sites or on Facebook, and videos can be posted on YouTube as well as major news sites, with the goal of directing consumers to the advertiser’s site.

 AL_Reciblage_publicitaire_image2

Source: advertising.expedia.com

For example, the Las Vegas destination management organization used this tool to boost reservations for its member hotels listed on Expedia. The campaign enabled it to increase its return on investment for advertising expenditures by 120%.

Does retargeting work?

According to John Hach, Vice President, eMarketing Solutions, for TravelClick, retargeting is more effective than traditional advertising. Max Starkov, President and CEO at Hospitality eBusiness Strategies, maintains that Google retargeting campaigns generate more revenues for the hotel industry than the Google Hotel Finder metasearch engine.

Personalized banners are more successful than traditional banner ads. Pascal Gauthier, of Criteo, notes that the average click-through rate of a personalized banner is 0.6%, but that this rate can rise to 2.5% for certain campaigns, in other words, five or six times the rate of a generic retargeting ad.

Hipmunk, a travel metasearch engine, conducted a remarketing campaign with the help of AdRoll. The result was increased conversion rates (when a user visits the site) of 75% in the case of visitors who had previously searched its site, and 50% in the case of those who had seen the banners after having purchased a product via the metasearch engine.

Social networks get involved

Although it is still being tested on Twitter, retargeting has been available on Facebook since 2012. Using real-time bidding, Facebook Exchange (FBX) enables brands to insert their banner ads in the right sidebar of users who have visited their Websites or, since March 2013, in their news feed (see image below). The results have been dramatic: according to a report from AdRoll published in June, retargeting ads displayed in the news feed generate a click-through rate 49 times higher than those displayed in the right sidebar and 21 times higher than retargeting banners displayed outside social networks.

 AL_Reciblage_publicitaire_image3

Source: mdgadvertising.com

Facebook’s mobile application takes things a step further by enabling businesses to retarget users who have already downloaded a brand’s app. A banner ad can be inserted in the news feed with a clickable button (Book Now, Watch Video, etc.) leading to the application (see the example of Hotel Tonight below).

AL_Reciblage_publicitaire_image4

Source: mobilemarketer.com

More and more tourism businesses will likely adopt these ad campaigns, given the excellent return on investment. This communication and loyalty tool is particularly suited for mobile devices, as it can use geolocation to provide even more relevant content. The future looks bright!

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
Trends

Retro travel products for nostalgics and hipsters

Nostalgia, like fear or humour, can definitely influence consumer behaviour. The auto, fashion and entertainment industries all make use of it, in one way or another. Movies that have captivated generations are being remade with modern technology, while many products are borrowing design elements from the past to create a retro look. Numerous market sectors are looking to past successes to create an emotional link between consumers and their product or service. Surprisingly, young adults seem to be more nostalgic than their elders. Moreover, the retro look is trendy and appeals to a hip clientele. Using nostalgia to set the scene for a marketing effort is the perfect way to encourage consumerism.

Nostalgia has more than one meaning

While nostalgia can refer to the sadness or melancholy experienced when far from home, the definition used for this article refers to the emotions felt about one’s sometimes romanticized childhood memories. Authors Rutherford and Shaw have studied the effect of this type of nostalgia on consumer behaviour. Their research shows that in times of uncertainty, people have a tendency to find refuge in the past. These researchers distinguish two types of nostalgia: interpersonal nostalgia and virtual nostalgia. The former involves the individual’s memories, while the latter refers to positive emotions evoked by an era, often idealized, that sometimes even predates one’s birth.

A study by YPartnership shows that vacation memories occupy an important position in our minds: 72% of adult Americans and 70% of adult Canadians surveyed think about them « often » or « very often. » To replicate their childhood holidays, parents will opt for tourist destinations that they visited when they were young or select part of their vacation, like the type of hotel or attraction, because it reminds them of their childhood. Fascinated by a particular era or simply attracted by a vintage-inspired theme, other travellers will seek out tourism products with a retro feel. Here are a few examples.

Retro camping

Located in the foothills of the French Pyrenees, Bel Repayre Airstream & Retro Trailer Park rents out 10 authentic Airstream trailers, a symbol of an era, dating from the 1940s to the 1970s. Each renovated trailer is unique and has been decorated and furnished in a particular period style. For example, the Blue Moon 1973 is dedicated to the 1960s, while the Silver Streak is a throwback to the 1950s. The park also offers campsites for travellers with their own equipment. Other than campers with tents, only owners of vintage RVs (older than 30 years) are allowed to camp. There is also a general store, a lounge where one can have a drink and listen to old vinyl records, and a diner-style restaurant.

Source: Bel Repayre Airstream & Retro Trailer Park

Retro and hip

Hotels are adopting a retro style to create hip places to be. That’s the case of Hollywood’s Vibe Hotel, a motel aimed at a young clientele. The decor uses bright colours to evoke the 1970s and the common areas are designed to encourage interaction by hosting numerous activities like poker night, BBQs and karaoke. Built in 1952, the hotel originally called the “Movie Town Hotel” has been a trendy spot since its opening, consistently maintaining its cachet over the decades and right up to the present day.

Source : Vibe Hotel

Aimed at the gay market, the Lord South Beach Hotel is one of Miami’s hottest hotels with interiors that feature the shapes and shades of the 1970s. Bright colours, bold design, and furniture and accessories inspired by this era make it fun and exciting. A bohemian vibe infuses the rooms and the lobby, which are decorated with Pop Art posters and unusual decorative items.

Source: Trend Hunter

Retro tours

Visit New Hampshire has created a retro scenic drive inspired by the 1950s and 1960s. New Hampshire’s Route 3 Retro Tour is a 215-kilometre route along a secondary state highway that features attractions and motels typical of the era. Along the way, you can have a meal in a diner, visit one of the region’s traditional family theme parks with a Ferris wheel and haunted house, go to a drive-in, cross a covered bridge and go bowling with the family. The brochure includes a timeline of the era, highlighting some major (and minor) historical events.

Source: New Hampshire’s Route 3 Retro Tour

Even technology is adopting a vintage look! The Instagram iPhone application , which gives photos a retro look, was named iTune’s « iPhone App of the Year » in 2011.

Source: iTunes

Reviving a brand

According to the DDB marketing agency, a successful retro brand revival must respect four key criteria:

  • allow a new clientele to rediscover the product, not just those who are nostalgic for it
  • project timeless consumer values, like authenticity and simplicity
  • stay true, but contemporize; in other words, update the product to today’s standards
  • build a community of fans using social media, which can help rally advocates and spread their interest in the brand

For more details on these measures of success, please see “Everything Old Is New Again”.

Finally, according to a Florida marketing and public relations firm specialized in luxury travel, while nostalgia marketing may have been a trend in 2011, it is likely to endure as long as the effects of the recession persist. Furthermore, public interest in transitional periods like the 1960s and 1970s is not likely to wane any time soon. Quebec’s history is full of symbols from these defining eras, so it only makes sense to take inspiration from these examples and take full advantage of this resource.

 

Sources:

– Davies, Amy and Gareth Beavis. “Instagram tops iTune’s Best of the Year Chart”, December 9, 2011.

– DDB. “Everything Old Is New Again – Staging Successful Retro Revivals” , The Yellow Papers Series, July 2009.

– New Hampshire Department of Resources and Economic Development, Division of Travel and Tourism Development. “New Hampshire’s Route 3 Retro Tour”, May 2011.

– Pijak, Jana. “Rocking Retro Resorts”, Trendhunter.com, November 3, 2011.

– Rutherford, Jana and Eric H. Shaw. “What Was Old Is New Again: The History of Nostalgia as a Buying Motive in Consumption Behavior”, CHARM 2011 Proceedings, May 2011.

– Savino, Charlotte. “America’s Best Retro Escapes”, Travel + Leisure, April 2009.

– Schwartzberg, Neala. “Why we vacation: It’s the memories says new survey”, examiner.com, September 23, 2010.

Websites:

– BelRepayre Airstream & Retro Trailer Park

– Instagram

– Lord South Beach Hotel

– Vibe Hotel

Catégories
Marketing @en

The Power of Photography in the Digital Age

With digital cameras, online sharing, and tools for improving, transforming and distributing images, the photograph remains an indispensable means for capturing intangible memories like travel experiences. It can also be the deciding factor in arousing interest in a destination, attraction or hotel. Up to 78% of people say that pictures of hotels and hotel rooms play a decisive role in the selection process, even more than online client evaluations. Although video may offer more possibilities, photographs still play an essential role. But go easy on the touch-ups … customers have a keen eye!

The influence of images on the choice of destination

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

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

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

Matching images to customer segments

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

Source : Neuromarketing at REWE Touristik

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

Source : Neuromarketing at REWE Touristik

Using images to advantage

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

Source : Tourism Australia

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

Source : Room 77

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

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

Show what you have to offer…but just that

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

Source: Oyster dans Business Insider

Cover all the key sites

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

Sources:

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

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

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

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

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

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

 

Sites Internet:

– 360cities.net

– Google Earth

– Room 77

– Tourism Australia

– TripAdvisor

Catégories
etourism and technology

Trustworthiness of Travel 2.0 applications and their influence on tourist behaviour

 

The influence of UGC on tourist choices

In the last decade, the Internet has reshaped the way people plan for and consume tourist products and services. More recently, the most significant development in Internet applications has been in the area of user-generated content (UGC) and peer-to-peer applications, the so-called Web 2.0.

Research is shedding light on the significant influence that UGC and Travel 2.0 applications have on generating the idea of travelling, both during the real planning process and even after travel decisions have been taken. Recommendations of friends and colleagues are less important to business travellers than they are to leisure travellers (McCarthy, Stock and Verma, 2010). Sometimes UGC also induces tourists to alter their decisions after obtaining further information online.

Some empirical data

eMarketer (2007) reports that, among tourists who use peer reviews to help them make their hotel bookings, the percentage of infrequent and frequent leisure travellers who changed their booking based on reviews posted online by other consumers is 25% and 33%, respectively. An empirical investigation on a sample of 823 Italian tourist (Del Chiappa, 2011a) confirmed this figure with respondents reporting that, after having read reviews and comments posted online, they changed their hotel accommodation sometimes (64.8%), almost always (12%) or always (0.5%). In particular, Del Chiappa (2011a) found gender differences in this likelihood, with female respondents doing so (“always” or “almost always”) more frequently (14.8%) than male respondents (9.4%). Another study on a sample of 1,448 Italian tourists reported that 31.56% of respondents had changed the accommodation suggested by a traditional travel agency based upon UGC (Del Chiappa, 2011b).

Credibility and trustworthiness of UGC: Perceptions of American tourists

On the whole, UGC sources are considered more credible and trustworthy than market-provided information and, consequently, are more likely to direct and influence tourist choices. For marketing strategies to be effective, it is therefore crucial to know to what extent tourists consider the different types of Travel 2.0 applications to be trustworthy and whether these applications do in fact exert different influences over the way tourists perceive company image and make their decisions.

Interestingly, recent research has started to analyze the credibility and trustworthiness that tourists confer upon different Travel 2.0 applications, which helps clarify the extent to which they affect tourists’ attitudes and purchasing decisions.

A survey carried out on a sample of 1,900 of American tourists who usually buy tourist services over the Internet underlines the different influences that different Web 2.0 applications have on tourist behaviour (PhoCusWright, 2009). In decreasing order, these are: reviews on OTAs (50%), traveller-generated photography/virtual tours (43%), online travel reviews from travel experts (41%), professional photography/virtual tours (39%) traveller review websites (33%), professional online travel video (29%), traveller-generated online travel video (28%), travel blogs (22%), social networks/people you know (22%), social network/people you do not know (15%) and travel-related podcasts (13%).

Another study (Yoo, Lee, Gretzel, & Fesenmaier, 2009) of a sample of 1,170 American tourists indicates that UGC is most credible when posted on: official tourism bureau websites (41.2%), travel agency websites (36.8%), third-party websites such as TripAdvisor (33.5%), travel company sites (31.2%), personal blogs (18.1%), personal websites (16.1%), social networking sites (13.2%) and photo and video sharing sites such as YouTube (10.7%). To sum up, the aforementioned research underlines that tourists’ choices are influenced more by reviews and comments on online travel agencies (OTAs) than those on tourism-related social networks.

Credibility and trustworthiness of UGC: Perceptions of Italian tourists

Similar findings to those of the aforementioned research have recently been found in Italy. Based on an analysis of 823 questionnaires, the study shows that, for both female and male respondents, OTAs are considered the most trustworthy and therefore exert the most influence on company image and tourist choices. In order of importance, OTAs are followed by: tourism-related blogs, tourism-related social networks, video sharing, photo sharing, forums on the company’s website, non-tourism-related social networks and microblogging (Del Chiappa, 2011a). On the whole, the aforementioned study partially confirms the findings of prior research carried out in the United States by Yoo, Lee, Gretzel and Fesenmaier (2009), where OTAs were found to be the most credible Travel 2.0 applications, while non-tourism-related social networks were found to be the least trustworthy. Nevertheless, photo and video sharing sites were found to be less credible in the United States than in Italy.

Moreover, in the same study, respondents reported that they consider comments and reviews posted online to be more trustworthy when there is the same proportion of positive and negative comments (51.2%), or when there are fewer of the latter than the former (39.9%).

Managerial implications and suggestions

On the whole, the findings of the aforementioned research support the marketing and communication strategies of hospitality marketers who have to develop, monitor and manage their corporate brands in a practically infinite virtual domain. Indeed, the research suggests that, in terms of marketing and communication activities, hospitality marketers should split their time and financial resources differently between different Travel 2.0 applications, and pay attention to other differences such as the gender and age of their customers. In particular, hospitality managers should pay attention to UGC posted on OTAs as several studies highlight the great impact, the so-called “billboard effect,” these applications have on the hotel business and the fact that consumer decision-making frequently really starts by looking at these sites, both abroad (Anderson, 2011) and in Italy too (Del Chiappa, 2011c).

References:

Anderson, C. (2011). “Search, OTAs, and Online Booking: An Expanded Analysis of the Billboard Effect,” Cornell Hospitality Report, 11 (8).

Del Chiappa, G. (2011a). “Trustworthiness of Travel 2.0 applications and their influence on tourists’ behaviour: An empirical investigation in Italy,” in R. Law, M. Fuchis and F. Ricci (Eds.), Information and Communication Technologies in Tourism 2011. Vienna, Austria: Springer.

Del Chiappa, G. (2011b). Disintermediation of hotel reservations: the perception of different groups of Italian online buyers, in proceedings of TTRA Europe and AFM Conference 2011 “Creativity and innovation in tourism.” Archamps: April 11-13.

eMarketer (2007). Niche Sites Invigorate Online Travel. Accessed online April 11, 2007, at http://www.eMarketer.com.

McCarthy, L., Stock, D. & Verma, R. (2010). “How Travelers Use Online and Social Media Channels to Make Hotel-choice Decisions,” Cornell Hospitality Report, 10 (18).

 

PhoCusWright. (2009). Consumer Travel Report.

Yoo, K.H., Lee, Y., Gretzel U. & Fesenmaier D.R. (2009). “Trust in Travel-Related Consumer Generated Media,” in W. Höpken, U. Gretzel and R. Law (Eds.), Information and Communication Technologies in Tourism 2009, 49-59. Vienna, Austria: Springer.

 

Giacomo Del Chiappa – Assistant Professor in Marketing, Faculty of Economics, University of Sassari
Giacomo Del Chiappa received a Ph.D in “Marketing and Business Administration” at the Faculty of Economics of the University of Milan-Bicocca. He was Visiting Scholar at the University of Melbourne (Australia). He is Assistant Professor in Marketing at the University of Sassari, Faculty of Economics. He teaches in the areas of “Tourism Management and Marketing” and “Destination Management” for the Degree in Tourism Marketing and Management, based in Olbia (Sardinia). He is a member of the editorial board of the journal “Tourism Analysis” and referee for international journals. His research topics are related to destination governance and branding, convention site selection criteria and meeting industry and, finally, consumer behavior in tourism. In this latter field his studies are concentrated on responsible tourism, on web 2.0 in the hospitality sector and, finally, on community-based tourism.  

Fields of expertise:

  • Destination governance and branding
  • Convention site selection criteria and meeting industry
  • Consumer behavior

Organization Web site
Catégories
Sustainable tourism

The status of carbon offsetting programs in North America

Carbon offsetting is a controversial practice to reduce one’s carbon footprint; however, this practice has spread worldwide in the last decade. Offsetting attempts to counteract the impact of carbon emissions by drawing carbon out of the atmosphere and/or reducing emissions produced elsewhere. There are many methods of offsetting available, from planting trees (biological sequestration) to renewable energy production (such as wind farms). A commercial market has emerged to provide offsetting services to businesses and individuals, where consumers need only pay the offset provider, who then finances offsetting projects. However, not all types of offset projects are equally effective and each offset purchase must be ‘additional’ to ongoing offsets¹.  In the current unregulated offset market, these issues of ‘permanence’ and ‘additionality’ are difficult to ensure.  Several voluntary standards and certifications have been introduced by the offset industry attempting to ensure sound offsetting practices, but even these standards are controversial. The highest or most reputable voluntary standard is the UNIPCC Gold Standard. Lack of education on offsetting, lack of transparency within the market and scepticism about the effectiveness of carbon offsetting all create confusion for consumers and businesses exploring carbon offsetting.

A 2010 study by R. Dodds et al., “Carbon Offsetting Programs in North America: Assessing the Involvement of the Hospitality and Tourism Industry,” assessed the current marketplace for carbon offsetting providers in North America and the adoption of offsetting by the hospitality industry.  The study identified and contacted 50 carbon offset providers operating in North America. Of the 50 providers, 20 respondents participated in a telephone interview.   This study sought to determine 1) the status of the voluntary carbon offset market in North America and 2) the current level of involvement of the hospitality and tourism industry in mitigating climate change.

Key Findings of the Study

Offsetting and the Hospitality Industry

The study found that, overall, the hospitality industry was the most predominant industry utilizing offset providers, representing 19% of all offset business. Among hospitality and tourism sectors:

  • Festivals and events represented the largest share of offsetting services, accounting for 5% of all offsetting business.
  • Cruises were the least prominent sector of the hospitality industry, representing a statistically insignificant 0.2% of the client base.

Fifteen percent of respondent offset providers report that hospitality represented 75% or more of their client base. However, 32% of all respondent offset providers did not have any clients among the tourism and hospitality industry.

Respondents most often identified cost (40%) and lack of education (40%) as the barriers to buy-in by the hospitality industry and 85% of all respondents strongly agreed that there is confusion in the marketplace regarding carbon offsetting.

Offset Provider Practices

Renewable energy and biological sequestration were the most common types of offset project undertaken by offset providers, with each one used by 65%. Other common types were:

  • Energy efficiency projects (30%)
  • Methane capture (40%)
  • Half of respondents identified biological sequestration as the most popular type of project among clients

The study also found that there are numerous standards and certifications, with respondents identifying 14 different ones in use. The most commonly used standard was the Voluntary Carbon Standard (VCS). The Gold Standard, the world’s best known, was adhered to by four respondents. When asked which was the most credible method, respondents felt that ‘additionality’ was best ensured by standards (67%) and third-party verification (44%).

Implications of the Study

The findings indicate that the hospitality and tourism Industry is beginning to take action on the issues of climate change. Though the festival and events sector is a leader in adopting carbon offsetting practices, more efforts are needed to mitigate climate change, especially in the transportation sector. The study concluded that it is not clear whether the industry is purchasing offsets based on concern for climate change or in response to consumer demand; nor is it clear whether the industry is supporting the highest standard of offset providers or less reliable offset providers.

The recent economic downturn has demonstrated that the industry is highly price‑sensitive and the costs associated with adopting carbon offsetting practices were identified as a major barrier to buy-in for the hospitality industry.

Based on these survey findings, Dodds et al. (2010) call for more government regulation in the voluntary offsetting market to provide clearer standards of practice and a higher level of accountability. Further education regarding climate change and carbon offsetting within the industry is required as lack of education was a common theme among respondents (40%), yet many offset providers have not incorporated client education into their business practices. Some airlines have begun to provide carbon offset credits at the point of purchase, but few consumers are aware of the concept or knowledgeable about how it works.

As demand for offsetting is likely to increase as consumers become better acquainted with the practice, there is a need for regulation and education. If governments provide trustworthy regulation, consumers will become more confident in the value of their offset credits.  In the absence of government regulation, a number of recommendations should be considered and the hospitality and tourism industry should use discretion when adopting carbon offsetting practices. It is important to select offsetting providers that can produce a transparent accounting of their methods and offset projects. Familiarize yourself with the various offsetting methods and issues such as additionality and permanence, and look for the most trustworthy standards.

Industry should note that carbon offsetting is not a solution to the issues of climate change, but simply one part of a holistic strategy to mitigate your impact. Offsetting should be incorporated into a system-wide carbon mitigation strategy and supported by rigorous climate change education.

¹“An offset project is considered additional if it is not business as usual. Typically, this means that the project would not have happened without the extra funding from the sale of offsets.” (David Suzuki Foundation, 2009) Only with the applied concept of additionality can the offsetting program have a net benefit for the climate.

Source:

– Dodds, R., Bessada, T., Garcia-Arredondo, J., McDougall, A., and Thiesen, N. “Carbon Offsetting Programs in North America: Assessing the Involvement of the Hospitality and Tourism Industry”, 2010



Catégories
Distribution networks Sustainable tourism

Canadian Travel Agents and Carbon Offsets

In 2006, 26,400 metric tonnes of carbon dioxide were emitted into the atmosphere, of which tourism contributed 5% (UNWTO, 2008). Of that 5%, air travel was responsible for 40% and land travel for 36%.

The relationship between climate change and tourism is interwoven and interdependent.  Climate change has major implications for the future of tourism because weather conditions factor heavily into the business direction of tourism operators. In Canada, seasonal and outdoor tourism may be adversely impacted by abnormal or unpredictable weather patterns, and costly changes to infrastructure may be required to cope with these changes .

With the growing concern about the effects of climate change and how the tourism industry is vulnerable to these effects, the challenge is to determine the awareness of tourism stakeholders and their level of participation in mitigating such effects.

A 2008 study by L. Kole et al at Ryerson University aimed to determine the level of awareness among Canadian travel agents with regard to climate change, and their willingness to offer carbon offsetting as a mitigation strategy to their clients. The study also aimed to determine whether more information regarding environmental issues and carbon offsetting needs to be provided to travel agents to assist them in channelling this knowledge to consumers.

The study sent an e-survey to 1886 members of the Association of Canadian Travel Agents (ACTA) and 2,500 members of the Canadian Institute of Travel Counsellors (CITC). The study received a 5.9% response rate.

Findings

The study found that while travel agents consider climate change a threat, they were unaware of the tourism industry’s contribution to climate change. Their consumers, travellers, also did not make the connection between climate change and their travel habits. Most travel agents have a ‘basic’ understanding (50%) of climate change and carbon offsetting. More than 50% said their first business priority was ‘making a profit.’ However, 9% of travel agencies said their first priority was ‘spreading knowledge of climate change.’ In addition, although 46% of agents felt it was important to communicate environmental issues related to tourism, they were not encouraged to do so by their agencies.

Some 34% of Canadian travel agents believe their customers would be willing to pay up to $10 as an additional charge for carbon offsets, although they felt that the government should bear the financial costs of carbon offsets. Less than half of these agents ’sometimes’ suggest carbon offsets to their customers while customers ‘rarely’ bring up the option of carbon offsets.

The study concludes that since most travel agents have only a ‘basic’ knowledge and understanding of climate change, they are not sufficiently informed to help transfer knowledge about climate change and carbon offsets to their clients. This is also the main reason that agencies are apprehensive about presenting carbon offsetting as a viable option. Travel agents need to be well-versed in environmental issues and carbon offsetting in order to be ambassadors of environmental change.

Implications

In order to increase awareness, a combined effort needs to be initiated among governments, academic institutions and corporations to educate agents about the effects of climate change on tourism and carbon offsetting. As travel agents are representatives at the frontline of the tourism industry, they wield considerable influence when it comes to travellers’ actions and awareness of environmental issues.

There are a number of approaches for communicating climate change awareness within the tourism industry and for making climate change and carbon offsetting a fundamental part of the industry:

  1. Education Campaign for Agents – climate change and mitigation strategies should be part of travel training institutions’ curriculum.
  2. Increase client awareness through the tourism industry, in order to incorporate this issue into mainstream culture.
  3. Offer clients a flat-rate fee for carbon offsetting.

Travel agents must realize that they can help mitigate the effects of climate change. Agents can inspire action by educating consumers about how their travels contribute to climate change, and by offering them carbon offsetting options to enable them to reduce their carbon emissions.

Sources:

Kole, L., Krestell, S., Parlagreco, L. & Dodds, R. (2008). Climate Change and Carbon Offsetting. Toronto: Ryerson University. 49 pages.

United Nations World Tourism Organization (2008). Climate Change and Tourism:
Responding to Global Challenges. Retrieved from http://www.unwto.org/index.php