Étiquette : reputation @en

Catégories
Management

Let intelligence help you look into the future

Admittedly, the Tourism Intelligence Network may not provide the most objective assessment of the value of strategic intelligence. However, what it lacks in objectivity it makes up for in expertise and enthusiasm. Herewith a call to all companies to set up their own monitoring process. If you’re reading this, you’re already off to a good start!

 

 

 

 

For tourism companies especially, there are many excellent reasons to gather intelligence as it enables them to:

  • monitor industry trends;
  • better understand customer segments;
  • be aware of its position in relation to its competitors;
  • build on best practices;
  • monitor emerging new markets and products;
  • monitor and maintain its online image;
  • analyze its online reputation.

Fishing for Inspiration

Competitive benchmarking is the process of comparing a firm’s practices and performance measures with that of its competitors. Sector-specific benchmarking is the process of identifying competitor operating methods on which the company can build. At a certain point, benchmarking can be useful as a means of answering a specific or ongoing question. This is where monitoring comes in.

  • Competitive intelligence is used by companies to compare and position themselves in relation to their environment and adopt best practices.
  • Sector-specific intelligence enables companies to stay abreast of the latest developments in a given sector and build on others’ best practices.

Ultimately, benchmarking fosters the kind of strategic decisions that bring the company to the forefront of its sector and keep it there.

There is no single solution for competitive or sector-specific intelligence. Subscribing to newsletters, signing up for Google Alerts, content curation tools (like Scoop.it) and intelligence tools are just some of the means at your disposal. Curation tools gather Web content on a given topic or area of interest and display it in a single interface. While effective, these can also be expensive.

To quickly and efficiently monitor a number of websites, for many years now, the Intelligence Network’s favourite tool has been the RSS feed aggregator, Netvibes which, like others of its kind (Feedly, for instance), is a customizable platform that aggregates content from other sites.

Netvibes_analyse_veille

Source: my personalized Netvibes interface

Anticipating Customer Needs and Expectations

The participative Web gives companies the benefit of ongoing feedback from its customers, both positive and negative. Monitoring this feedback means they not only stay on top of and react to it, but above all, are able to understand their customers’ expectations and evolving needs and thus anticipate them. In other words, managing your online reputation begins by monitoring what is being said on social media and consumer review sites. There are many monitoring tools that help you do this, but it can also be useful to combine a few of them for better coverage. There’s ReviewPro and TrustYou for review sites, Hootsuite, Topsy and SocialMention for social media sites, to name just a few. Marketing and social media expert Frederic Gonzalo explains 30 of them here.

Remember:

  • Comments on social media and review sites do not necessarily represent the views of the majority;
  • There are many monitoring tools and they evolve quickly. They should be reviewed from time to time, especially those that monitor social media, to ensure they have not become obsolete;
  • Effective monitoring should take into account new information sources and emerging networks; 
  • As a general rule, quality is more important than quantity.

The Human Factor

Whatever the objective of the process or tool in question, the person doing the monitoring must be qualified. Human analysis can determine which information is relevant to the company’s strategic direction and upcoming projects, and enables the company to detect innovative content. The person who monitors its online reputation is supposed to assess the relevance of customer feedback. While only a few comments will lead to corporate change, most of them deserve an answer, or some kind of follow-up.

In order for it to be relevant, it is crucial that the monitoring be done with the greatest possible objectivity, especially when it comes to consumer reviews. The key is to truly focus on and tune in to trends and consumer needs.

The Time Factor

A study of 300 French decision-makers in companies with 20 or more employees found that 61% of them averaged two hours of monitoring per week. Some managed even more, with 35% spending an average of four hours gathering intelligence. Most of them were CEOs and, generally speaking, the monitoring was done outside of office hours. What about you, Quebec managers? How do you measure up?

The obstacles encountered by French managers include: the time required to find relevant information, the glut of information available, and source identification. The solution is often to delegate this task internally or to outsource it.

Did you know that for the past 10 years or more, the Intelligence Network has been gathering intelligence for Quebec companies?

Take another look at our 2007 Trendwatching Guide (in French). While some of the concepts and tools it mentions have evolved, the basic principles remain the same. It’s early in 2016; why not make a resolution, right now, that you will devote some time each day to gathering intelligence!

 

Source of the header image: Pexels

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
etourism and technology Management

SOS! My business is having a social media crisis!

Thanks to social media, information that used to take several hours or even days to reach the public can now be spread almost instantaneously. When a crisis sets alarms bells ringing in today’s world, it’s impossible to ignore!

A well-prepared crisis unit and an action plan to mitigate the impact and quickly get back to normal are just two ways to manage a social media crisis and limit collateral damage.

Anticipate and plan for a crisis

While it’s nearly impossible to predict what will lead to a crisis, organizations are nonetheless well-advised to take advantage of calmer periods to contemplate the possibility. They should envision some plausible scenarios, establish a management protocol, appoint the individuals who will be in charge, determine the role of each team member, and supply everyone with the tools they need to take action and communicate effectively, should the need arise (see also: Quand la crise éclate!).

Online monitoring of chatter about your company or organization is a way to complement your crisis preparations. In fact, this sort of monitoring can identify vulnerabilities and anomalies and enable you to take action before they degenerate. There are many monitoring tools available to facilitate this process (see also: Des stratégies pour gérer votre réputation en ligne).

In the end, although your company image and reputation are at stake, don’t forget that similar risks existed, even before the advent of social media. The difference is that, today, social networks have the potential to aggravate and accelerate a crisis situation.

Intervene, manage and overcome a crisis

When an incident is detected and a crisis seems inevitable, one must take effective action. At this stage, managing communications and reassuring clients, partners and the public requires a lot of discipline and diplomacy. Even if you have no answers for the questions being asked, it is important to publicly acknowledge the problem and show that you are doing everything in your power to resolve it.

Maintaining control over communications, promoting transparency and honesty with regard to the current problem and reacting quickly to criticisms can help you limit the damage. If the crisis actually began on a specific social network, Facebook, for example, you should begin by responding directly on the site. With a little bit of luck, the crisis could subside without reaching other media. If, on the other hand, this is not the case, you must act in a uniform manner across all networks involved.

Creating a Web page with crisis-related questions and answers (FAQ) could save you a lot of time and prevent misunderstandings. In addition to listing all possible questions, this page means you can provide a link to the answers when asked about the same topics; remember, Twitter only gives you 140 characters, which is not much for clearly expressing your views. This page could include the following types of information:

  • Recognition of the crisis
  • The surrounding circumstances
  • Photos or videos showing, for example, the president of the company holding a briefing
  • The next actions planned to resolve the crisis
  • Contact information for people who can provide more details

During a crisis, the point is not to win arguments but to control damage. For this reason, although transparency is essential, it’s also important to know when certain conversations that could degenerate should be taken offline. Inviting a compromising person to continue the discussion by phone or email shows that you are interested in the position being argued yet prevents the spillover from being aired publicly.

End a crisis

Some crises can be avoided, while others would appear inevitable. What lessons have you learned and what measures can you take to prevent a similar situation from happening again? It is crucial to deconstruct such events after they are over so you can use the experience to prepare your next crisis management plan. You could, for example:

  • document and preserve all the comments posted on the various social networks and any emails exchanged with the internal team, the public and the media
  • analyze the number of site visits and your social network profile during the crisis
  • determine the chronological sequence of events, identify the critical moments and understand the reasons behind them
  • evaluate the crisis management plan you used and improve it

To avoid having to face a social media crisis, some businesses are simply opting out of social networks. But is this really a good solution? What if a crisis involving you unfolds on social media and you are not there to deal with it? Although maintaining a presence on social networks definitely involves some risk, paradoxically, not doing so does not make you immune to risk!

 

Sources:

– Baer, Jay. « Don’t Be Scared Be Prepared – How to Manage a Social Media Crisis« , convinceandconvert.com, 2012.

– Blancot, Carole et al. « Communication de crise à l’heure des médias sociaux, » Atramenta, September 2012, 100 p.

– Fryatt, Jenise. « Social Strategies: Creating Your Social Media Crisis Management Plan« , blog.cvent.com, January 16, 2013.

– Seraiocco, Nadia. « Gestion de crise sur les réseaux: pensez-vous à votre CM? » cheznadia.com, February 27, 2013.

– World Tourism Organization. « Toolbox for Crisis Communications in Tourism« , 2011.

Catégories
etourism and technology

Search, User Generated Content and Online Booking

There are 2,3 billions internet users in the world with significant penetration ratios in countries all over the world(5). Recently, User-Generated Content (UGC) has been considered as one of the most important sources of information influencing tourists’ choices. Despite this, few studies have focused on examining cross- visitation, that is referral and conversion traffic from UGC to other key online and offline information sources. Further, little research has focussed on analysing when consumers use UGC along with their information-search and the related cross-visitation.

Some empirical data

UGC plays a relevant role along with all the online searching and booking behaviour of tourists, particularly UGC within third-parties websites. Referring to the so called “billboard effect”, recent research showed that consumers’ decision making often starts by looking at Online Travel Agencies (1,2,4), whose posts of reviews and comments clearly influence tourists choices and online booking(3). Analyzing 1,720 reservations for InterContinental Hotel Brands, a study reported that almost 75% of consumers who booked through the official website of Intercontinental had visited an OTA prior to making the reservation, with nearly 83% performing a search on Google, Yahoo or Bing and two-thirds performing both a search and an OTA visit (2). Further, cross-visits by OTA shoppers to Facebook exceeded seven in 10 whereas cross-citation with Twitter was found to be at around 25% for both OTA and hotel web site buyers (6).

The when consumers use UGC: the Italian tourists’ behavior

Recently, an empirical study was carried out on a sample of 623 Italian tourists to analyze the when consumers use UGC along with their information-search and the related cross-visitation (4). The final open-ended question asked participants to fully describe the way they usually search for information when making hotel reservations. Their open answers were manually coded considering the sequence by which each category of information (both online or offline) were cited (that is step 1, step 2, etc). It was then possible to calculate the frequencies by which the different sources were found to be used along with the respondents’ information-search.

Table 1 shows in which stage each information source is used by respondents to make their hotel booking.

Table 1 – The online information-search: what information sources do tourists use? (%)

The majority of respondents stated that they start their online booking by using OTAs (45.6%) or search engines (23,2%). 14.5% of them reported referring to tourism-related social networks (such as TripAdvisor, Zoover, etc) in the early stage of their search-information process. Furthermore, Table 2 shows that tourists sometimes finalize their booking via traditional travel agencies or via direct contact with hotel (phone call or email).

Further insights on tourists’ booking behaviour can be obtained by concentrating our attention on what happens once tourists start a search via OTAs and search engines, the information sources that appear to influence the early stage of the search the most.

As shown in Figure 1, 23.2% of respondents start their search through search engines and then visit the hotel’s own website (37.2%), or OTAs (24.6%) or tourism-related social network (8.7%).

Figure 1 – Online booking starting with search engines: how do tourists search for information?

Source: Del Chiappa(4)

22.6% of those visiting the hotel website at the second step of their search, proceed in the next step via phone call or email (19.4) or visiting an OTAs to search for comments and reviews and/or to look for more convenient rates (22.6%). There is also a 12.9% of tourists who continue to look for other UGC in tourism-related social networks. 24.6% of those visiting OTAs at the second step, proceed to visit the official websites (50%), other tourism related social networks (19.2%) or make a phone call to the hotel (11.5%).

Figure 2 – Online booking starting with OTAs: how do tourists search for information?

Source: Del Chiappa(4)

According to Figure 2, 45.6% of respondents start their research through OTAs and proceed to visit the hotel’s website (55.2%) or other travel 2.0 application, that is tourism related social networks (19.7%). Then, 69,4% of those visiting hotel websites at the second step of their search, proceed via email (36.5%), phone call (32.9%) or other tourism-related social network (12.9%). 17.9% of those visiting tourism-related social networks at the second step, then visit the hotels’ website (72.7%), or place a phone call (9.1%) or visit photo sharing websites (3%).

Managerial implications and suggestions

Better knowledge on how information is acquired, enables marketers to better influence tourists’ buying decisions. The aforementioned research suggests that hotel marketers should monitor their brand reputation over the internet and should pay particular attention to UGC uploaded onto On line Travel Agencies, considering that it is by looking at ratings/ comments within these websites that consumers’ may decide to include or exclude a given hotel from their potential set of choices. Tourists would then be able to consider the hotel as they proceed in their information search using all the other information sources. Further, findings suggest that hotel marketers should adopt a multichannel communication and distribution strategy (on-line and off-line) to influence tourist choices and should manage their internet strategies (parity rate, effective booking engine, call-to-action, etc) and their customer service in order to convert as much traffic generated by OTAs (and other Travel 2.0 applications).

 

References

(1) _ Anderson, C. K. (2009). The Billboard Effect: Online Travel Agent Impact on Non-OTA Reservation Volume. CHR Report. The Center for Hospitality Research at Cornell University, 9(16).

(2) _ Anderson, C. K. (2011). Search, OTAs, and Online Booking: An Expanded Analysis of the Billboard Effect. CHR Report. The Center for Hospitality Research at Cornell University, 11(8).

(3) _ Del Chiappa, G. (2011). Trustworthiness of Travel 2.0 applications and their influence on tourist behaviour: an empirical investigation in Italy. In R. Law, M. Fuchs and F. Ricci (Eds.), Information and Communication Technologies in Tourism 2011, 343-353. Vienna, Austria: Springer.

(4) _ Del Chiappa, G. (2012). User Generated Content and its influence on tourists’ choices: how do tourists make hotel reservations online? Turistica, Special Issue “Content Personalization and Multimedia Marketing for Destinations and Tourism Business, 1, pp. 39-50. Paper presented at Modern Hospitality and Tourism Development Conference, Università di Allameh Tabataba’i di Teheran.

(5) _ Internet Word Stats. (2011). Top 20 countries with the highest number of internet users. Accessed online (August 31, 2011) at http://www.internetworldstats.com/top20.htm.

(6) _ PhoCusWright. (2011). Social Media in Travel 2011: Traffic, Activitiy & Sentiment.

 

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
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
etourism and technology Trends

What is Facebook’s impact on the tourism industry?

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

Some concrete examples from the industry

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

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

Many tourism-based businesses are developing applications

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

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

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

For better and for worse

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

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

CP_2007-09_en_quoi_FB_img3

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

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

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

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

Catégories
etourism and technology Marketing @en

Your client’s friends are your friends

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

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

The proof is in the study results

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

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

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

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

Amazon_clients_friends1

Web 2.0 opportunities

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

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

Local applications of the trend

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

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

Create your own web‑based social network

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

clients_friends2

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

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

Sources:

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

Catégories
etourism and technology Management Trends

Today’s customers influence tomorrow’s choices

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

Welcome to the world of personal reviews

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

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

Leaders in the field

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

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

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

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

Detailed evaluations and comprehensive reviews

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

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

Relevance and validity of peer reviews

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

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

Business responses to reviews

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

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

Making good use of review sites

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

The future of traditional rating systems

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

Sources:

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