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What impact do sustainable business practices by travel companies have on travellers’ choice of a travel service provider (hotel, resort, tour operator etc.)? A survey was commissioned by Market Vision in mid-2013, aimed to determine the extent to which demonstration and promotion of sustainability initiatives by travel companies can impact customer choice behaviour. The results suggest that, all else being equal, a certain proportion of travellers would be inclined to patronize a travel company whose sustainability credentials are easily visible while a larger proportion would be inclined to go with a travel company whose sustainability credentials are easily visible and are endorsed by a credible third party assessor. A smaller proportion of travellers would not care. What should eco-tourism businesses do to attract such customers and influence their choice?
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Impact Of Sustainability Initiatives On Customer Choice
Kumud Sengupta
Director – Market Vision
Managing Editor – SOST
ITB Asia, Singapore, October 24, 2013
Impact Of Sustainability
Initiatives On Customer Choice
How Do You Define
Sustainability
in the Context of Tourism?
Sustainable tourism:
Tourism that takes full account of its current and
future economic, social and environmental
impacts, addressing the needs of visitors, the
industry, the environment and host communities.UNWTO definition
The Triple Bottom Line Approach
* Environmental impacts
* Socio-cultural impacts* Economic impacts
Sustainable Tourism
Makes
Business $ense
1. Worldwide tourism growth
2. Business benefits
3. Rising consumer demand
0
400
800
1200
1600
2000
1980 1990 1995 2000 2005 2010 2020 2030
International tourist arrivals, millions
1. Worldwide tourism growth
Source: UN World Tourism Organization
Cost savings
Improved profitability
Competitive advantage
Improved brand image
Customer loyalty
Employee loyalty
Product diversification
2. Business benefits
3. Rising consumer demand
Governments and businesses are
also demanding a green travel
supply chain
What impact do sustainable
business practices have on
travellers’ choice of a travel
service provider?
A survey was commissioned by Market
Vision in mid-2013, aimed to determine
the extent to which demonstration and
promotion of sustainability initiatives by
travel companies can impact customer
choice behaviour.
This?
Or This?
This?
Or This?
35%
47%
18%Sustainability initiatives
visible
Sustainability initiatives
visible + endorsed
Makes no difference
Choice of travel company
And that is despite lack of sufficient
awareness and recognition of individual
certification brands
So…
What should eco-tourism businesses
do to attract customers and
influence their choice?
1. Tell your sustainability story
Upfront
Verbally.
Visually.
2. Get it endorsed
Third party certification
Assurance of authenticity,
quality standards
It is a JUNGLE out there!
Choose the most appropriate certification program
Bear in mind…
…Consumers purchase first based on
price, quality, and safety.
Hence, the certification label must
fulfill these needs, as well as ensure
environmental and social
responsibility.
3. Be prepared to promote it
Use the marketable logo as a
differentiator (many businesses don’t)
Be prepared to promote the
program that certifies you
Link quality of product,
sustainability and consumer
experience
Integrate into conventional
marketing channels
Get started…
Spotlight on
Sustainable Tourism
(SOST)
– e-journal promoting
best practices in
sustainable tourism
www.sostinternational.com
Thank you.
Market Vision Research & Consulting Services
P.O. Box 32394, Dubai, UAE
Tel: +9714 3911241; Fax: +9714 3911245
Web: www.market-vision.com
Kumud Sengupta
kumud@market-vision.comSkype: kumud.s
Twitter: Kumudsengupta
www.sostinternational.com
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