M Fabricius 10. Information Management in Tourism Destinations World Tourism Organization Manila, 20 – 22 March 2006

M Fabricius

10. Information Management in Tourism Destinations

World Tourism Organization Manila, 20 – 22 March 2006

M Fabricius

Traditionally information wasscarce and expensive

INFORMATION IS POWERINFORMATION IS POWER

Access toinformation gave

temporaryprofit

advantage

IMPORTANCE OF INFORMATION MANAGEMENT IN TOURISM

THE ROLE OF INFORMATION IN BUSINESS AND TOURISM

THE ROLE OF INFORMATION IN BUSINESS AND TOURISM

M Fabricius

Information is cheap but the challenge is selecting the right information for

Efficiency

to select the most efficient

processes

The key is dynamic human resources teams

Strategy

to understand the value

network that is in play and to refine strategy

Quality

to understand the demand, how

it is segmented and how to reach

it

THE NEW STRATEGIC ROLE OF INFORMATION

THE NEW STRATEGIC ROLE OF INFORMATION


M Fabricius

Businesses use information to:

Receive feed back

Learn more about the market and its expectations

Understand the competition

Address and improve the productive process

Improve the distribution system

Give better post-sales service

St

Ef

Ql

THE ROLE OF INFORMATION IN BUSINESS

THE ROLE OF INFORMATION IN BUSINESS


M Fabricius

Information for MarketingInformation for Marketing

Consumer research Market analysis and forecasting

Product and price studiesPromotions and sales research

Distribution researchEvaluating and performance

monitoring studiesData mining

INFORMATION REQUIRED FOR MARKETING

INFORMATION REQUIRED FOR MARKETING


M Fabricius

ForecastingImpact studies

Supply inventory Market analysis

Resident opinion surveys Economic and financial surveys

Visitor profile and behaviour surveys

Information for Planning

INFORMATION REQUIRED FOR PLANNING

INFORMATION REQUIRED FOR PLANNING


M Fabricius

Strategic indicators to gauge Strategic indicators to gauge the economic importance of the economic importance of tourism and to compare it tourism and to compare it

with other sectorswith other sectorsIndicators for planningIndicators for planning

Reliable information for Reliable information for investors to forecast return-investors to forecast return-

on-investmenton-investment

Market intelligence for Market intelligence for tourism firmstourism firms

To monitor the To monitor the sustainability of the sustainability of the

resource baseresource base

DEMAND STATISTICS DEMAND STATISTICS AND SUPPLY AND SUPPLY STATISTICSSTATISTICS

IMPORTANCE OF MEASURING TOURISM ACTIVITY ACCURATELY

IMPORTANCE OF MEASURING TOURISM ACTIVITY ACCURATELY


M Fabricius

• Key trends in the use of ICT in general and for travel and tourism

• Key roles for ICT/e-business in destination management and marketing

• E-business model for tourism destination communities

• Options for acquiring ICT/e-business systems

INFORMATION COMMUNICATION TECHNOLOGIES (TOURISM E-BUSINESS)

Acknowledgement: TEAMTourism Enterprise and Management

Dr Roger Carter

MAKING THE MOST OF ICT-BASED OPPORTUNITIES FOR DEVELOPING TOURISM IN DESTINATIONS

MAKING THE MOST OF ICT-BASED OPPORTUNITIES FOR DEVELOPING TOURISM IN DESTINATIONS

M Fabricius

Source: Computer Industry Almanac (as quoted by ClickZ Stats in September 2004) / eTForecasts for earlier figures (December 2002)

Both Computer Industry Almanac and eTForecasts feature the same data.

44.5

184284

413544

665

814934

1,0701,210

1,350

0

200

400

600

800

1000

1200

1400

1995 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Number of Internet Users Worldwide

(in million)

RAPID GROWTH IN USE OF THE INTERNETRAPID GROWTH IN USE OF THE INTERNET

KEY TRENDS IN THE USE OF ICT FOR TRAVEL AND TOURISM

M Fabricius

63.0

98.8 100.0

250.0

0

50

100

150

200

250

2002 2003 2004 2007

Number of Broadband subscribers worldwide2002-2007

Source: eMarketer, April 2004.

GROWTH IN THE USE OF BROADBAND


M Fabricius

Number of Internet Users Worldwide by region as in March 2005 (in million)

302.3

259.7

221.4

56.2

19.4

16.3

13.5

0 50 100 150 200 250 300 350

Asia

Europe

North America

Latin America/Caribbean

Middle East

Oceania/Australia

Africa

Source: Internet World Stats statistics updated on 24 th March 2005.

INTERNET USERS BY WORLD REGION


M Fabricius

US online travel booking are expected to reach $91 billion by 2009 at which time it will represent 33% of the total US travel revenues. By comparison, in 2004 it represented only 23% of total US travel revenues.

4654

6270

7784

91

0

20

40

60

80

100

2003 2004 2005 2006 2007 2008 2009

US online travel booking revenues 2003-2009 (in billion $)

Source: JupiterResearch, quoted by ClickZ Stats in November 2004.

VALUE OF US ONLINE TRAVEL MARKET 2003-2009


M Fabricius

Source: Carl H. Marcussen “Trends in European Internet Distribution of Travel & Tourism Services”, April 2005 (Centre for Regional and Tourism Research – Denmark http://www.crt.dk/trends)

0.225 0.792.453

4.813

8.34

12.5

17.6

22.3

26.9

0

5

10

15

20

25

30

In b

illio

n E

uro

s

1998 1999 2000 2001 2002 2003 2004 2005 2006

Trends in overall online travel market size - Western Europe 1998-2006

TRENDS IN OVERALL ONLINE TRAVEL MARKET SIZE IN WESTERN EUROPE, 1998 – 2006


M Fabricius

% of US travel booked online

2002 15%

2003 21%

2004 27%

2005 32%

2006 35%

Sources: PhoCusWright data from June 2004 (quoted by eMarketer in March 2005)

LATEST US ONLINE TRAVEL TRENDS


M Fabricius

30% 69% 23% 11%6% 12%

33% 61% 35% 22% 22% 8%

36% 64% 19% 7% 5% 8%

39% 65% 22% 24% 14% 5%

42% 47% 20% 26% 23% 4%

43% 60% 14% 23% 11% 7%

44% 62% 26% 9%7% 10%

47% 31% 26% 25% 8% 6%

49% 50% 25% 19% 17% 11%

49% 57% 25% 33% 26% 1%

50% 63% 29% 39% 21% 13%

50% 36% 13% 29% 13% 7%

51% 65% 50% 44% 35% 11%

52% 53% 33% 26% 12% 7%

54% 58% 12% 22% 16% 16%

54% 55% 8% 20% 21% 15%

59% 51% 27% 32% 31% 1%

59% 37% 24% 32% 13% 7%

0% 50% 100% 150% 200% 250% 300%

Korea

Italy

France

UK

PoIand

Netherlands

Spain

Mexico

Canada

Germany

Australia

Brazil

China

Japan

USA

Denmark

India

Russia

Personal recommendation Web search Visit travel agent's office See TV program Read a newspaper Other

Source: Global Market Insite (GMI) Survey of 18,000 consumers globally, June 2005.

SOURCES USED TO FIND OUT WHERE TO GO IN 2005


M Fabricius

Source: Survey by Amadeus of 2,000 UK holidaymakers conducted in May 2005 (reported by travelmole).

51%

34%

32%

29%

22%

0% 10% 20% 30% 40% 50% 60%

Online travel agencies

Traditional paper holiday brochures

Personal recommendations from friends& family

Local high street travel agent

Tourism websites

SOURCES USED TO SEARCH FOR LAST MINUTE DEALS – UK HOLIDAY MAKERS


M Fabricius

Source: a study by Thomas, Townsend & Kent, reported in eMarketer, September 2004.

76%

47%

42%

35%

24%

0% 20% 40% 60% 80% 100%

Internet search engines

Travel magazines

Referrals

Travel agents

Email newsletters

TRAVEL INFORMATION SOURCES USED BY AFFLUENT US TRAVELERS 2004


M Fabricius

• Takes more and shorter holidays• Makes decisions later, reducing the lead time• Seeks more individual offers; self-enrichment; better,

immediate information about the product and the destination; better service

• Is more mobile and critical; more brand aware but less loyal; more price sensitive

• Is more knowledgeable about international travelAnd

• Has access to the Internet to obtain instant, in-depth information and bookingAnd

• Has access to low cost international air travel

THE NEW TOURIST


M Fabricius

• Destination marketing, including branding and image• Marketing campaigns to drive business, particularly to SMEs• Unbiased information services • Operation/facilitation of bookings• Destination coordination & management for visitor ‘quality of

experience’ + involvement in the daily operation• Visitor information and reservations• Strategy, research and development• Training and education • Business advice• Product “start-ups”• Events development and management• Attractions development and management

DESTINATION MANAGEMENT AND MARKETING FUNCTIONS

KEY ROLES FOR ICT/E-BUSINESS IN DESTINATION MANAGEMENT AND MARKETING

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• Destination marketing, including branding and image• Marketing campaigns to drive business• Unbiased information services • Operation/facilitation of bookings• Destination coordination & management for visitor ‘quality of

experience’ + involvement in the daily operation• Visitor information and reservations• Research and development• Training and education • Business advice• Product “start-ups”• Events development and management• Attractions development and management


DESTINATION MARKETING

M Fabricius

• Destination marketing, including branding and image• Marketing campaigns to drive business• Unbiased information services • Operation/facilitation of bookings• Destination coordination & management for visitor ‘quality of

experience’ + involvement in the daily operation• Visitor information and reservations• Research and development• Training and education • Business advice• Product “start-ups”• Events development and management• Attractions development and management


DESTINATION MANAGEMENT

M Fabricius

Dream/ select

V

• This represents a key conceptual framework for the application of new media by DMOs

• DMOs must optimise their opportunities by responding effectively to the requirements of the visitor at each stage in the cycle

• Media for communication between DMO and consumers will vary at each stage in the life cycle

Plan Book Visit Dream again

• …. or ‘the customer journey’• Let us consider the leisure consumer perspective first

COMMUNICATION LIFE-CYCLE (CLC) – LEISURE TOURISM


M Fabricius

The Customer Journey

Communications Life Cycle

e-Marketing Activity

Dream and select

Creating awareness, emotional interest, specific ideas

e-Mail/viral promotions Search engine optimisation/promotion [Where to do what] Distribution of information through high profile intermediaries Motivational content Interactive TV

Planning the trip

Providing ‘hard’ information

Information on transport services, including links Excellent planning information on the Web, including market

access information, itinerary and route planning, events, etc Special offers by e-mail

Booking Enabling booking Product search facility on Web Booking provided on, or facilitated by, destination Web site Shopping mall

The visit Visitor services on the ground

Dynamic itinerary planner for visitors Use of new media to tell stories – interpretation, recreation Immediate/location-based offers by SMS/email Information and functions for use by information centres and

other outlets Distribution to kiosks, mobile devices, etc

Dreaming - the next trip

Maintaining the relationship through research and follow-up action

Research on customer behaviour and satisfaction Newsletters – what’s new, special offers Special offer e-mail shots Visitor journals


© TEAM (2005)© TEAM (2005)

E-MARKETING FOR LEISURE TRAVEL

M Fabricius

• The destination represents the focal point for all the players in tourism whose interests are interdependent – government, residents, suppliers, carriers, major corporations, intermediaries, consumers

• A core role for DMOs is bring together those players to work together in a meaningful way

• The DMO’s ICT/e-business systems potentially provide key media for these players to work together in destination management and marketing

• These systems enable the DMO to communicate with all the players – but also, for the players to communicate with each other

• The destination community e-business system may be represented like this ……

E-BUSINESS MODEL FOR DESTINATION COMMUNITIES

THE DESTINATION E-BUSINESS SYSTEM

M Fabricius

© TEAM 2000

Handheld

Consumersat home

Major Partners – Public & Private

PC

TV

Handheld

Handheld

PC

TourismInformation

Centres

PC

Handheld

ConferenceBuyers Visitors –

MobilePC

Kiosk

CallCentres

PC/TV (Hotel)

Handheld

Tourism Marketing

PC

Tourism Facility

OperatorsPC

Info search

Print mgmt CMS/

Web Publishing

Image library

CRM/Contact mgmt

‘Push’ marketing

Marketanalysis

ImpactAnalysis

Internet

Tourism Development

& BusinessSupport

PC

Travel Trade/ Group

Organises

Reser-vations

MIS/evaluation

Online surveys

PC

Travel Media

Databases

Handheld

PC

Handheld

Product Customer

KnowledgePC

Visitor Services &Manage-

ment

PC

Community– Residents,Schools, etc

Handheld

PC

© TEAM 2000© TEAM 2002

M Fabricius

• Incremental– Start with product database(s) and one or two

Web interfaces– Buy-in or develop the functionality and add in new

interfaces over time in response to expressed user requirements

• Planned system– Work towards the concept of a fully integrated

system, normally for multiple user groups – even if it is implemented in phases

BROAD APPROACHES FOR OBTAINING DESTINATION SYSTEM

OPTIONS FOR ACQUIRING DESTINATION E-BUSINESS SYSYEMS

M Fabricius

• Buy a fully integrated software system - e.g. World.net, TIScover, Visit - as a package ‘off-the-shelf’, with some customisation and/or highly flexible templates.

• Buy or develop a purpose designed system, built from components:

– Generic and/or

– Tourism specific

PLANNED APPROACH - OPTIONS


M Fabricius

• E-Business strategy – defines the wider e-business network, provides the framework for action and basis for buy-in; principal focus is on opportunities to make existing activities more cost-effective

• Specification of user requirements – a two-way process

• Functional specification

• Project scoping/Business case analysis

• It is an iterative approach

PLANNING FOR AN INTEGRATED DMS


M Fabricius

• ‘Request for Information’ from system suppliers or integrator – optional but educational – may result in changes to the specifications or the business case analysis and short listing of potential suppliers

• ‘Request for Proposals’ (or ITT) – which should result in an evaluation of the options based on a variety of factors, including a systematic assessment of the extent to which the products will meet the DMO’s detailed requirements

• Implementation Plan – not only the role-out of the ICT, but also the information management plan, the training plan and so on….

• As early as possible in this process, appoint the Project Manager, to contribute to the evolving process

PLANNING FOR AN INTEGRATED DMS


M Fabricius

• Key market trends, the factors that make it essential for DMOs to take the use of new media seriously and recognise its dynamic nature

• Review of destination management and marketing functions and the way that may be supported by a e-business

• Concept of destinations as communities, and the way that may be supported by a destination e-business system

• Analysis of the options for acquiring ICT/e-business systems

RESUMè


M Fabricius

Thank You!

Documents

M Fabricius 10. Information Management in Tourism Destinations World Tourism Organization Manila, 20 – 22 March 2006