Marketing ManagementMaster of Business Administration

Siam University

Project Goal:

To Develop a Sustainable Marketing Planfor

Thailand’s Home-Stay Operators

A Part of Thailand’s Pro-Poor Tourism Policy

Group Members: Peter Masters 5117192001Feng Zhou 5117190017

Shunhai Li 5217192008

Executive Summary

The Long Tail theory refers to the behavior of economic sectors that provide products in relatively low volume, but are able to make a profit by providing a greater variety of products in aggregate. This is in contrast to the short head sectors where profit is based on a more narrow range of products selling in much higher volume. From a tourism perspective, the short head is the cash-cow destinations that are widely known and attract large numbers of visitors, while the long tail is the specialty niche destinations (Lew 2008). Most tourist’s visiting Thailand have destinations like Bangkok, Pattaya, Phuket, Koh Samui, and Chiang Mai on their itineraries, these represent the short head sector, while the focus of this plan is marketing a sustainable home-stay industry within the long tail of Thailand tourism.

Currently, there is no coordination amongst the home-stay properties in Thailand and this project will develop a home-stay network with the Tourism Authority of Thailand (TAT) having a central role by providing a link between the supply-side (the home-stay providers) and the demand-side (the tourist market). The aim is to develop a web presence via the TAT website that includes e-Home-stay, an intelligent decision support system, which offers a unique selling proposition because it allows tourists to choose authentic Thai accommodation and activities in accordance with their preferences and expectations. Consumers are seeking more personalised tourism products and services, and are expecting intelligent and proactive access to relevant high quality information and services rather than mass marketed solution (Henley Centre HeadlightVision/Amadeus 2009). Thailand’s home-stay industry can develop into a major factor to improve many people’s economic situation, especially those who have never considered the possibility of being involved in commerce, let alone ‘e-commerce’.

However, to ensure the sustainability of the home-stay industry in Thailand, tourists must have access to a sufficient quantity of relevant information regarding individual home-stay properties, allowing them to match their preferences and requirements with the appropriate home-stay experience. There is a wide variety of properties within Thailand’s home-stay industry, ranging from truly authentic village based properties to relatively up-market “home-stay” properties. Home-stay has the potential to satisfy many of the life-style needs of neo-consumers and e-Home-stay represents an appropriate form to engage with them, for promotion, marketing and information exchange as well as for sales transaction processing. e-Home-stay represents a potentially potent force in tourism development since the search for new and novel experiences is one of the major engines driving the tourism life cycle and e-Home-stay opens up new experiences that match those sought by consumers.

Marketing for sustainable pro poor tourism involves the same process and elements used by all businesses and destinations though the orientation is quite different. Sustainable tourism marketing stresses the following:

o Meeting the needs and goals of the local community and then targeted customers

o Matching locally supported products to appropriate segments (e.g. niche marketing)

o Attracting high-yield and high-quality visitors

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o Cultivating the right image to convey environmentally and culturally sensitive messages, employing unique selling propositions

o Communicating effectively with and educating all visitors

o Employing environmental and cultural interpretation

o Managing the visitor and encouraging the adoption of codes of conduct

o Achieving efficiency by avoiding high peaks of demand and overuse

o Research into appropriate segments, and communication

o Building repeat trade (e.g. brand loyalty).

(www.unescap.org/ttdw/Publications/TPTS_pubs/Pub_2265/pub_2265_ch6.pdf)

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Home-stay Marketing Plan 2010 – 2014

Goals

The first goal of this marketing plan is to position Thailand’s Home-stay industry as the ideal niche tourism sector for the TAT Policy and Marketing Plan 2008-2012 targeted visitors. This provides the opportunity to gain substantial leverage from TAT’s marketing efforts, and allows the Home-stay sector to focus on their ‘micro’ issues.

A second goal is to assist in building a sustainable world-class tourism product byproviding educational and training opportunities to Thailand’s village based Home-stay tourism sector to support the growth of a tourism destination offering an authentic and positive tourist experience.

The primary goal is to provide a mechanism for the members of Thai society that currently are not receiving direct benefits from Thailand’s tourism to gain economic and social opportunities from tourism at the ‘village’ level.

Objectives

“A traditional village-based Thai Home-stay will maintain and share a traditional way of life and its values, provide traditional food, be based on eco-friendly concepts and require small amounts of investment for renovation not building”.

With the above definition as a guiding concept, Thailand’s e-Home-stay Project seeks to:

1. Ensure that hosts-o Offer an authentic Thai village experienceo Obtain a fair return for their services and investment

2. Ensure that e-Home-stay contributes to conserving local cultural and natural heritage and that hosts and their guests are aware of the links between tourism and local cultural and natural resources

3. Creates an authentic, reliable, tourist experience and accommodation for visitors

Strategic Approach

The strategic approach of the e-Home-stay Project is based on its sustainability, thus its success will be assessed by its ability to achieve the stated objectives, and visitors, hosts and other parties maintaining interest in the project over the long term.

Our strategy involves a carefully planned, step by step process, building on successes and keeping participants expectations in perspective. The activities require investments in data collection, skills development and building reliability during the first two years, and increasing the focus on promotion and expansion in the following two years.

Skills development of the home-stay operators (building capacity to manage, adapt and innovate;

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Building reliability in the services and methods used, (monitoring, manuals, market research methods, operator and visitor feedback),

Creating a network of home-stay operators allowing them to have easy and mutually beneficial contact

The promotion and expansion of services and products must proceed in a carefully considered way allowing for the right tourists to be attracted to a reliable, authentic product so they provide a positive response. Word of mouth will be our most effective longer term promotion, but reliability and access to correct information will be critical to ensuring a successful and sustainable home-stay industry.

It is imperative that TAT act as a 'Convener' as this will provide credibility for the small, village based home-stay operators. TAT must provide the portal for marketing, payments, consumer and operator education, as the small unknown operators have very little experience or knowledge, either of successful marketing strategies nor of effective management. Jantarat and Williams’s study (2000) of the role of the Tourism Authority of Thailand (TAT) as a convener in the development of the ‘Amazing Thailand Campaign” found that the reason the campaign enjoyed wide acceptance was because TAT (a national tourism organization) was perceived to have expertise, had a recognized brand and was government-mandated.

Situation Analysis

Tourism Authority of Thailand Policy and Marketing Plan 2008-2012

These objectives address the overall objectives of the Tourism Authority of Thailand Policy and Marketing Plan 2008-2012 in the following ways:

Poverty reduction through increase in income for village households from tourism operations and livelihood options

Reducing rural to urban migration through increasing livelihood options within rural settlements

Protection of cultural and natural heritage through the promotion and pride of providing traditional accommodation and related services such local guide services that generate incentives to protect resources for income generation

According to Tourism Authority of Thailand (TAT) Policy and Marketing Plan 2008-2012, TAT wants to promote the tourism industry as a key to dealing with the country’s economic problems by creating jobs for people and at the same time increasing public revenue.  In order to create jobs, TAT have been focusing on promoting and the development of proactive marketing to increase expansion into new markets as well as developing niche market opportunities. Furthermore, TAT aims to attract a far greater number of tourists to regions with minor tourism type attractions, which currently do not appear on main-stream tourist programs while preserving community, cultural and environmental values.

TAT has introduced an important strategy with the focus being placed on ‘quality’ over ‘quantity’, thus attracting ‘quality’ visitors to a ‘quality’ destination. ‘Quality visitors’ is defined as those who are socially and environmentally aware, and are responsible travellers with a keen interest in learning about the places and communities they visit. As a result, they are more likely to have a longer average length of stay. This policy is also high on the government’s priorities for Thailand’s economic recovery and as a way to assist in the economic equality for all of Thailand’s population.

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TAT’s main role is be to build a bridge between supply (the home-stay operators) and demand (the tourist market), the supply-side requires substantial development prior to the targeting of major markets.

• Commercial problems (gateway): The connection of local firms to international markets in order to ensure the marketing of tourism products is carried out today largely due to Internet and to Web sites. However, many home-stay operators do not have access to the Internet that enable them to get into contact with tour operators and especially with individual customers who buy their tourism products directly on line. Indeed, creating an Internet website does not ensure that it will be visited and that it will be able to generate sales in an adequate quantity.

• Operational problems (on-line or not on-line): Access to the Internet supposes that sufficient user’s have sufficient knowledge and that adequate information, in real time, together with video/photographs of individual properties and of tourism activities is provided. For that, it is essential to have an ADSL Internet network at high speed, which is not the case in many home-stays as they are often located far from large cities, therefore technological education in tourism marketing remains limited for the majority of potential, authentic home-stay operators.

Issues and Trends

o Technology such as the internet has made booking travel-related products easy and convenient, empowering the consumer to be less reliant upon the traditional tourism supply chain. This disintermediation opens many possibilities for consumer-directmarketing and distribution.

o Demand is rapidly increasing for niche tourism products that are customised to satisfy the tastes of an increasingly discerning traveller, particularly among business and affluent leisure travellers. Many of these new niches are narrowly defined, but should not be overlooked.

o Increasing numbers of experienced travellers are seeking more innovative, unusual and finely targeted products which match their lifestyles, perception of their lifestyle, interests and needs. The traditional annual holiday of one to two weeks, purchased

through a travel agent from a mass produced brochure, will no longer be the norm.

o Consumers continue to be heavily influenced by the image created by branding andadvertising which establishes market position, defines value-added consumer benefits and builds confidence in tourism products. This trend is likely to continue, with destinations and operators using the brand image to create a unique appeal to more pinpointed markets and groups.

o New product development to appeal to individualized aspects of demand (e.g. healthand wellness tourism) will see further growth, as niche products aimed at specificgroups with these interests are developed.

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o An increased awareness and consciousness among travellers of the social and environmental impacts of tourism which is fuelling a rapidly increasing interest in responsible, sustainable and green tourism.

o Increasing numbers of travellers are seeking responsible tourism, aimed at supporting the sustained development of local cultures and protection of the environment. These travellers desire authentic experiences while at the same time foster benefits for the local people and their environment.

As tourist’s preferences change with evolving technologies and lifestyle trends, it is essential that Thailand’s tourism products and marketing adapts to these changes.

Tourism Life Cycle ~ Thailand and Vietnam

“Thailand tourist industry is 20 years ahead of the Vietnams tourist industry, so it is more developed” according to TJ Grundl-Hong, Chief Sales Officer & MD Business Development of Six Senses, however this has negative as well as positive inferences when Tourism Life Cycle is considered.

Kotler, Bowen & Makins (2006) describe the fourth stage of a product’s life-cycle, ‘Maturity’, as a period of slowdown in sales growth because the product has achieved acceptance by potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competitors. While Butler (1980) defined specific life cycle stages in his resort life cycle model (Fig 1.), and to these stages he assigned various descriptive criteria. The stages were labelled “exploration”, “involvement”, “development”, “consolidation”, “stagnation” and “decline” and/or rejuvenation”. The fifth stage, known as the “stagnation” stage, is when “peak visitor numbers have been reached and capacity levels exceeded for many variables resulting in environmental, social and economic problems”. The region has become well known and well established, but is losing its tourism appeal. A large number of manufactured attractions may start to outnumber the natural and cultural attractions that were responsible the initial development of international tourism interest.

Figure 1 Hypothetical Evolution of a Tourist Area (Resort Life Cycle Model)

Source: Butler, R. W. 1980.

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Butler suggests that the type of tourists will change to the organised mass tourism market, and this leads to the final stage, when the area will either decline or be rejuvenated. In the “decline” stage there will be an inability to maintain market share. However, it is possible that the region can go through a process of “rejuvenation”, which requires a complete change in the attractions on which the resort is based. The model provides two ways that rejuvenation can be achieved: first, using manmade attractions such as casinos; and second taking advantage of previously untapped natural resources. (Berry 2001)

Environmental Analysis

Political and Economic Analysis

Economic and political issues that may influence the perceptions of potential tourists must be given serious consideration while developing this marketing plan. This should include scanning international and local factors as the long term sustainability of Thailand’s Home-stay industry will be influenced by both international and local issues.

International perceptions of the suitability of Thailand as a tourist destination are being influenced by the on going political problems, an example is the damage caused by the PAD irresponsibly forcing the closure of the international airports in late 2008, which has had serious negative affects on Thailand’s very important tourism industry. Added to the above has been the fall in tourist numbers due to the widespread economic slowdown caused by the global financial crisis and the concerns regarding the H2N2 flu virus.

Existing Regional Markets

For Cambodia and Vietnam the top ten source markets are clearly predominated by travelers originating from Northeast Asian countries, particularly Korea, Japan and China (PRC). While there is difficulty in obtaining tourism data and related information have limited coverage of Myanmar, and in some cases, Guangxi Zhuang Autonomous Region and Yunnan Province of the PRC., it appears that after the considerable demand generated by domestic Chinese visitors, there is strong interest among numerous North American and European markets. Tourism demand for Laos is highly slanted to cross boarder visitors from neighbouring Thailand. Thailand’s tourism demand is well balanced with no single market predominating except Malaysia due to heavy cross border activities in the south of the country. While tourism arrivals to Myanmar remain relatively low at just over a quarter of a million visitors there is strong penetration into a variety of markets with considerable interest by high yield visitors.

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Table. 1 SWOT Analysis ~ e-Home-stay in Thailand Strengths         Weaknesses      o Wide range of Home-stay properties available    

o Unique range of nature based and cultural attractions o Low number of promotions o UNESCO World Heritage

sites o Promotional funds thinly spread across markets

o Fascinating indigenous cultures and traditions o Limited focus of TAT market the Home-stay sector

o Generally friendly and hospitable local populationo Low community awareness of Home-stay sector

benefits

o Well established and spectacular cultural events o Lack of market research/weak statistical base

o Extraordinary natural environments o Weak provincial tourism bureaus and associations

o Excellent accessibility through international hubo Limited private sector involvement in Home-stay

marketing

o Comprehensive air and land transport network    

o Relatively unspoiled environment    

o Increasing support from government for tourism    o Strong country branding in key markets    

                     

Opportunities Threats  

o Growing global interest in activity based special interest tourism o Increasing global oil prices

o Growing iconic status of natural and cultural heritage attractions o Terrorist incidents as major deterrent to travel

o Strengthen marketing awareness of Home-stay pages on TAT website o Thailand’s political instability

o Increased intra-regional and international air services o Increasing regional competitor Home-stay marketingo Increasing interest in marketing and education for Home-

stay sector o Pandemics (A1N1 flu) will deter visitors

o The aura and mystique of Thailand o Adverse publicity (Politics & Southern unrest)

o Commitment to Sufficiency Economy Tourismo Current lack of authentic, sustainable Home-stay

operations

o Emergence of Eco and Culturally aware tourists o Insufficent funding for development and promotion

o Focus marketing on niche target markets (GeoSavvys)    o Strengthen research base to underpin marketing strategies    o Positively manage in key markets through PR program    

o Increased internet marketing activities    o Focus marketing on to

markets                

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Thailand’s Positioning and Brand

Thailand was 22nd ranked country brand in the FutureBrand 2008 CBI Global Quantitative Survey and received five Top 5 global rankings including Authenticity, Value for Money and Friendly Locals. TAT has positioned Thailand as a safe and friendly destination offering an abundance of cultural, natural, and historical attractions. Several research reports support TAT’s positioning of Thailand as a destination with beautiful beaches, reasonable prices, and broad range of attractions. Bongkosh Ngamsom Rittichainuwat, Hailin et al conducted a study to examine the current image of Thailand as an international travel destination and assessed the effects of the destination's image on the likelihood of the travelers' returning there. The results indicated that tourists have a positive image of Thailand as a destination that offers cultural, nature, and historical attractions and activities. The respondents of the study’s survey also agreed that a trip to Thailand provided value for money and that the Thai people were friendly.

Home-stay’s Position and Brand

Village-based Tourism

Thailand’s Home-stay sector can emphasise village-based tourism which is perfectly suited to the experiential wants of a new generation of world travellers who wish to be socially and environmentally responsible. They are as much on a quest for new knowledge and cultural exchange as they are in search of leisure, rest and relaxation. They are keen to learn about the communities they visit. This has led to the increasing popularity of village-based tourism.

Village-based tourism presents opportunities to enhance the experience for visitors by highlighting the uniqueness of Thailand’s tourism assets, particularly cultural heritage. Village-based tourism also makes it possible for visitors to immerse themselves in colourful local culture and learn about Thai ways through the conservation of traditional Thai culture and the development and promotion of community-based tourism. It promotes the protection and preservation of the natural environment and instils pride in the national heritage among the local population. This all helps pave the way towards sustainable tourism development, strengthens the Thailand brand, and sharpens the kingdom’s international competitive edge.

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Market Segmentation

Segmentation and selecting target markets is a crucial part of the process because demand will come from specific areas of the global marketplace and because sustainable tourism marketing is the opposite of mass marketing, care must be taken to identify and attract appropriate market segments. Information regarding the understanding of potential target segments has been obtained from previously published sources, for example TAT, Pacific Asia Travel Association (PATA), United Nations agencies (www.unctadxi.org www.unescap.org) as well as academic and commercial research reports.

The Geotourism Study – Sponsored by National Geographic Traveler As this marketing plan is part of an exploratory phase of a longer term project an existing research report was selected as the basis for the segmentation process. The Geotourism Study was undertaken the Research Department of the Travel Industry Association of America in 2002 and sponsored by National Geographic Traveler. Though the Geotourism Study only involves respondents from the U.S.A. it is very useful as a “base” segmentation tool for potential tourists from countries with a Western cultural heritage from example, Canada, Australia and the United Kingdom. The data provides highly relevant information for use in the exploratory phase of the target marketing and communication process.

The study was conducted with adults 18 years of age and older among a representative sample of U.S. households. The study sample consisted of 8,000 adults, and was balanced to represent the national demographics of American adults. A total of 4,300 questionnaires were returned for a response rate of 54 percent. Results from returned surveys were re-balanced to reflect the demographic profile of U.S. adults. Among these, a total of 3,300 qualified as past three-year travelers, meaning they had taken at least one trip in the past three years. Results from this traveler sample were then projected to the entire U.S. adult population and have a statistical error range of +/- 2 percentage points.

The Geotourism Study created eight Geotourism profiles of the respondents through an examination of attitudes, behaviors and actual travel habits. Most travelers (65%) are city-dwellers living in urban areas with populations of 500,000 or more. Four in ten (43%) are Baby Boomers between the ages of 35 and 54. About 30 percent are Generation X and Y (age 18 to 34), and 27 percent fall into the Matures category, age 55 and over. Nearly half (45%) of American travelers have a college education. Thus, the average annual household income among travelers is higher than that of the U.S. population in general ($62,720 vs. $57,047). Most American travelers work full or part time (68%) and 17 percent are retired. Four in ten have households with children under the age of 18 present.

Overall, the majority of the traveling public (71%) indicates that it is important to them that their visits to a destination not damage its environment. Nearly two thirds agree (61%) that their travel experience is better when the destination preserves its natural, historic, and cultural sites and attractions. Over half (53%) of travelers agree that their travel experience is better when they have learned as much as possible about their destination’s customs, geography, and culture.

Results from the survey topics above were also statistically combined and analyzed to segment travelers based on like responses. This segmentation process created eight market segments, each with unique Geotourism profiles. Segmentation results showed that three segments share similar levels of income and a high incidence of travel, yet each possesses a somewhat unique Geotourism profile. These three groups have the strongest Geotourism inclinations compared to the other market segments.

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In total, the three groups represent greater than one third of the total 154 million American travelers.

o Geo Savvys (16.3 million travelers)o Urban Sophisticates (21.2 million travelers)o Good Citizens (17.6 million travelers)

A detailed profile of Geo-Savvys is provided below: Demographic Profile• Geo-Savvys are slightly more likely to be women (54%) than men (46%).• Over half of women are baby boomers (53%); 47 percent of men are baby boomers.• One in four Geo-Savvys is a young adult under age 35.• Along with Urban Sophisticates and Good Citizens, they are very well educated with 61 percent having at least a college degree. One in four (25%) has a graduate degree.• One third of Geo-Savvys (32%) hold professional/specialty positions, similar to Urban Sophisticates and Good Citizens. • Geo-Savvys are also quite affluent. Over one third (38%) have annual household incomes over $75,000; 17 percent have household incomes above $100,000.• Due to their middle-age status, many (38%) Geo-Savvys are in the older parent or working older couple life-stages. Over one quarter (29%) are in the young or middle parents life-stages.• Half (51%) live in large cities or urban areas. Like Urban Sophisticates, one in five (22%) lives in a slightly smaller city of 500,000 to 2 million in population.

Travel Profile• Geo-Savvys also travel quite frequently, with 45 percent taking five or more trips in the past year. This group has the highest average number of annual trips (7.6) compared to all segments.• Geo-Savvys are highly likely to have traveled internationally. Four in ten (44%) Geo-Savvys have taken at least one international trip in the past three years; 17 percent have taken at least three trips outside the U.S. in the past three years.• Geo-Savvys have a high incidence of business travel, with 58 percent taking at least one business trip in the past year.• Due to a high propensity for leisure and business travel, the majority (65%) of Geo-Savvys have taken one or more trips by air in the past year.• Overall, the Geo-Savvys travel profile is most similar to that of Urban Sophisticates.

Geotourism Profile• Geo-Savvys show a distinct preference for culturally/socially-oriented travel. The majority(81%) believes their experience is better when their destination preserves its natural, historic, and cultural sites and attractions, the highest share of all segments. Three-quarters (73%) say that the educational experience provided by travel is very important to them.

Attributes of Travel:Geo-Savvys are more likely than any other cluster group to do the following:• 83% visit destinations with authentic historic and archeological sites• 81% prefer small-scale accommodations run by local people• 81% travel to experience people, lifestyles, and cultures very different from their own• 80% visit small towns and rural areas• 73% feel it is important to learn about their destination's people, history, and culture

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Attitudes and Behavior:• Geo-Savvys are intellectually curious, with the highest level of reading or watching shows about history or culture (74%).

They are second only to Good Citizens in watching public TV (71%); visiting historic sites in their local area (65%); taking educational classes and/or attending seminars or lectures (43%); participating in civic organizations (37%); donating money to (40%) and/or volunteering for (33%) historic, cultural, or educational organizations; or visiting local art galleries or museums (46%).

Geo-Savvys believe it is important to learn about other cultures (85%) and to pass on our nation's history to the next generation (93%)

Geo-Savvys have well-developed social consciences. Most Geo-Savvys say they recycle (89%) and try to save electricity and water at home (85%). Above-average shares buy energy-efficient appliances, even if they cost more (60%). They also buy environmentally safe household products (47%) and organic food products (27%), as well as buy from companies that donate to charities (44%)

Distinguishing Characteristics:

• What really distinguishes Geo-Savvys from similar groups (e.g., Urban Sophisticates) is their well-above average interest in environmentally-oriented travel. It is more important to Geo-Savvys than to any other cluster that they not damage the environment when they travel (84%). They are nearly three times above average in enjoying primitive travel to wilderness areas (59%). They are twice as likely than average to like outdoor adventure travel, offering challenge, risk and excitement (57%) or to travel to remote locales (66%).

o Geo-Savvys’ at-home behaviors provide opportunities for the marketing communication process.

• They are the most likely of all segments to;

o read or watch shows about nature and the environment (61%);

o donate money to nature/environmental organizations (37%);

o subscribe to nature/environmental publications (35%);

o be a member of an environmental, development or human rights group (30%), a

nature club (18%).

Target Market for Home-stay Tourism

Multi-segment approach is the most appropriate because the introduction of the intelligent decision support system e-Home-stay via the TAT website allows the targeting of several different segments due to the differentiated Home-stay products offered. However, this marketing plan will initially focus on the Geo-Savvys segment allowing for a more efficient use of available resources.

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Research question:

“What are the best ways to communicate with the target markets?”

The relevant research question is “What are the best ways to communicate with the target markets?” therefore the research process will include formulating two questionnaires, one for home-stay operators on a global basis, and one for travellers. Questions for home-stay operators might include items such as; “what communication channels do you use for promotion?” (this may include a list of optional responses, eg; tourism authority(brochures/website/printed advertisements/exhibitions/other....) travel agent (brochures/website/printed advertisements/exhibitions/other....) /own website/ another website, with an open ended section available. For travellers, the questioning might be along the lines of “how do you discover homestay opportunities?”, with the same set of options for responses. Another set of questions could ask how effective respondents feel a specific channel is for achieving their objective. For home-stay operators that would be for promoting their products, for travellers it would be for discovering home-stay opportunities. By comparing the sets of responses we should get a picture of how closely providers’ communication strategies match those of the market segment they are trying to reach.

Unique Selling Proposition (USP)

The e-Home-stay (intelligent decision support system via a choice board) which allows tourists to choose niche tourism destinations in accordance with their preferences and expectations provides Thailand’s Home-stay industry with a competitive advantage. TAT should highlight this USP quite strongly in the preliminary promotions as the competing national tourism organizations will introduce similar systems for their home-stay products.

Today, many travellers utilize online reservations for travel planning and would prefer to do the same with bed and breakfast/ home-stay reservations. Only those home-stay operators who successfully adopted an e-commerce strategic model can thrive in such a highly complex electronic market (Huang, 2006). To ensure sustainability of Thailand’s Home-stay industry tourists must have access to a sufficient quantity of relevant information regarding individual Home-stay ‘products, allowing them to match their perceptions and expectations with the appropriate home-stay experience. For example, a tourist may have the intention to experience life with a Thai family but still expect sit-down toilets and a hot shower; while others want to experience the reality of life in a village and would be disappointed if their bedroom had an air conditioner and cable television.

Therefore the convener (TAT) requires an IT system that has the capability of sorting both the tourists according to their perceptions and expectations and the home-stay operations according to their facilities, geographical locations, activities plus other experience opportunities (festivals). This will enable the matching of the most suitable home-stay accommodation experience with each individual tourist’s perception and expectation and therefore, it will provide the highest level of satisfaction; thereby avoiding the potential for damaging results of disgruntled tourists reporting their complaints about their experiences in up-country Thailand on the Social Network websites like tripadvisor.com and facebook.com.

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A study done by the Technical Assistance Research Program found that when people have a good experience they tell five people. If they have a bad experience they tell ten people. Spreading a positive word of mouth message is difficult. A few negative stories can offset many good stories. The goal is to have every guest’s expectations met or exceeded (Kotler, Bowen & Makins 2006 p 356)

Intelligent Decision Support System ~ Relational Database Management System (RDMS) This matching process can be achieved by creating a relational database management system (RDMS) to deliver information required by the user. A suitable database may be developed as follows;

Table 2 TAT Home-stay Relational Database Tables

Operator_Number Operator_Name Operator_Baan Operator_AmphurOperator_Provinc

e10001 Atikom Thomya Kokkor Na Klang Nong Bua Lamphu10002 Benja Chaijaree Mata Put Ratchima Khon Kaen10003 Chutima Tipsaen Songteaw Banso Chaing Mai10004 Juntima Kongsang Sawong Jaani Chantaburi10005 Juthawan Aryharn Bakeon Maisan SaraBuri

Creating a table for the Home-stay operators; each individual element of data for each entity will be stored as a separate field, and each field represents an attribute for that entity. Fields in a relational database are called columns. For the entity OPERATOR, the operator identification number, name, and address are stored as a separate field within the OPERATOR table and each field represents an attribute for the entity OPERATOR.The actual information about each individual Home-stay operator that resides in a table is called a row (records). The field Operator_Number (Figure 7) uniquely identifies each record so that the record can be retrieved, updated, or sorted and it is called a key field. Each table in a relational database has one field that is designated as its primary key . This key field is the unique identifier for all the information in any row of the table and this primary key cannot be duplicated. Operator_Number is the primary key for the OPERATOR table and Facilities_Number is the primary key for the FACILITIES table (Figure 8)

The tables 4, 5, 6 are examples of tables that connect all the operators, as identified by the Operator_Number that offer specific facilities, as identified by the Facilities_Number. The next operation would be to project a list of operators that offer the specific requirements that each user desires. This is a very basic example of the ‘Tourist-Operator Matching” operation of the proposed TAT Home-stay Information Model but it provides a clear indication of its effectiveness in providing a high level of user satisfaction.

TAT management and officers would have access to the data as well as data regarding the online users, and this information can be a great benefit to TAT’s Customer Relationship Management (CRM) programs. Through this extended database the Thai government departments would have access to better information regarding the regions where visitors are spending their time, how much time as well as their activities and thus develop infrastructure plans to match future requirements

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Table. 3 Range of Facilities Available at Home-stay Properties(A) (B)

Facilities_Bathroom Facilities_Number

Inside house Bathroom_1Attached to house Bathroom_2Sit-down toilet' Bathroom_3Traditional squat toilet Bathroom_4Hot bath Bathroom_5Hot shower Bathroom_6Cold shower Bathroom_7Traditional splash & wash Bathroom_8Tiled floor Bathroom_9Cement floor Bathroom_11

Facilities - BedroomAir conditioned Bedroom_1Fan Bedroom_2Inner spring mattress Bedroom_3Traditional mattress Bedroom_4Dressing table & mirror Bedroom_5

House structureBrick & motar Structure_1Traditional wooden Structure_2No stairs Structure_3Glass windows Structure_4No windows Structure_5Traditional wooden shutters Structure_6

Internet AccessAvailable at accommodation (free) Internet_1Available at accommodation (fee) Internet_2Available at nearby Internet shop Internet_3No Internet access at accommodation Internet_4

MealsEat with host family every meal Meals_1Eat with host family some meal Meals_2

Restaurant facilitiesAccess to local restaurant (Traditional) Restaurant_1Access to Western dining facilties Restaurant_2Easy access to a 7/11 store (or similar) Restaurant_3

Table. 4 Homes with an Inside Bathroom Table.5 Homes with an Attached Bathroom

Facilities_Number Operator_Number Bathroom_1 10002 Bathroom_1 10003Bathroom_1 10004

Table 6 Homes with Sit-down Toilet

Facilities_Number Operator_NumberBathroom_3 10002Bathroom_3 10003Bathroom_3 10004

Facilities_Number Operator_NumberBathroom_2 10001Bathroom_2 10005

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This database should include more fields for example,

o Geographical location

o North

o North-East

o Central

o Geographical attractions

o beach, mountains

o Available activities

o Physical (bush walking, fishing, mountain bike riding, elephant riding)

o Cultural (rice farm, temples, archeological

o Craft (Thai silk, cooking)

o Volunteer opportunities (teaching)

Table 7 Homes in North-East

GeoLocation_Number Operator_NumberNorth-East 10001North-East 10002

Table 8 Homes offering Thai Silk ExperienceActivitiesCraft _Number Operator_NumberThai Silk 10001

Therefore a tourist wish to stay in a home-stay in North-East Thailand that has a bathroom attached to the house and offers a Thai silk craft experience would receive the following result

Table 9 Suggested Home-stay Property

Operator_Number Operator_Name Operator_Baan Operator_AmphurOperator_Provinc

e10001 Atikom Thomya Kokkor Na Klang Nong Bua Lamphu

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Marketing Mix ~ e-Home-stay

The marketing mix can be determined by using the four Ps (product, place, price and promotion) and we have added: place, partnerships, programming and people. These are the tools for implementing a Home-stay marketing strategy.

1. Product

Often using traditional tourism marketing products are developed that will attract tourists, regardless of whether they are appropriate to local communities or if they may cause adverse effects to the environment. Sustainable Home-stay marketing shifts the emphasis to products and services that will attract and satisfy specific desired tourist segments. Each home-stay can develop its own special product mix, taking into account its resources, values, needs and preferences. The result should be an authentic community tourism product attractive to those tourists wanting hospitable and unique experiences.

2. Place (Distribution)

Initially, we will use the channels provided below and similar, but we will incorporate more channels as data are received from our research project (“What are the best ways to communicate with the target markets?”).

Geo-Savvys have well-developed social consciences, they recycle (89%) and try to save electricity and water at home (85%). They buy energy-efficient appliances, even if they cost more (60%), they also buy environmentally safe household products (47%) and organic food products (27%), as well as buy from companies that donate to charities (44%). Therefore, using online channels that focus on these issues will provide numerous ‘touch’ points for Thailand’s e-Home-stay properties.

Ecotourism AssociationsAlaska Wilderness Recreation & Tourism Association (AWRTA)Hawaii Ecotourism Association The International Ecotourism Society EcoTourism Portal

Eco Shopping & Green Resources http://www.ecobusinesslinks.com/ecotourism.htm

Tour operators

Niche tour operators and specialist travel agents usually prefer more unique and smaller suppliers. They are very keen to have authentic accommodation and activities to offer, and the fact that e-Home-stay is verified by the TAT brand will be a great selling point. These are organisations that sell holidays and travel products to consumers, often taking a commission or margin on the product (or package of products) sold, which they have purchased from suppliers or are selling (as an agent) on behalf of suppliers. Additional income is gained through the sale of other travel-related products, such as travel insurance and foreign currency.

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In the case of e-Home-stay, we will establish a ‘partnership’ relationship, working collaboratively with them on product development and direct marketing activities. The tour operators can sell a package that includes accommodation and associated activities at one or more of our properties and pay the home-stay operator directly.

https://www.intrepidtravel.comhttp://www.trekescapes.comhttp://www.exploremekong.orghttp://www.godifferently.com/thailand/homestay_thailandwww.REIadventures.com

Ecotourism Travel Guides

The companies publishing traditional guidebooks are evolving to produce customised guidebooks, and unique travel information, which is now not only coming in the typical guidebook form, but also increasingly in electronic form, whether on websites or in phone/PDA formats. Highly professional guidebooks are now also being produced by non-governmental organisations and campaign groups, for which the motivation is development assistance, rather than commercial profit.

The focus is increasingly shifting to the consumer, since publishers are discovering that these publications meet a market need, giving objective (and entirely noncommercial) advice on obscure community-led tourism products, offering consumers access to ‘authentic experiences’ with less of the more negative aspects of tourism. By being produced by not-for-profit organisations, consumers treat contents as a strong seal of quality assurance, which helps increase sales of sustainable tourism products, which in turn promotes best practice in tourism and across the industry.

The Good Travel Company Eco Friendly Tours Organic Holidays EarthFoot Planeta.com EcoTour Directory Vegeterian Travel Guide Vegetarian-Vacations Ecotravel

3. Price

Several basic price strategies can be employed:

o Set prices for specific target segments’ needs and willingness to payo Contract pricing with third parties (Tour operators)o For high-quality and rationed products charge a premiumo Value added packaging.

Pricing will be on a property by property basis due to the wide variety of home-stay properties and their associated activities. Home-stay operators will be encouraged to develop value added packages, for example silk farm and weaving experience; traditional Thai

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cooking classes; volunteer teaching opportunities. These packages can be developed in conjunction with TAT and selected tour operators and incorporated into the e-Home-stay choice board facility on the website.

4. Promotion (Communications)

The traditional communications mix consists of advertising, public relations and sales promotion. From a sustainability point of view, a number of factors must be considered:

o Communications must be targeted and carefully prepared to avoid false expectations being generated

o Home-stay properties should be marketed differently from mass tourism products stressing authentic experiences and activities.

5. Partnerships

Our authentic home-stay properties cannot afford to carry out the marketing process independently. Partnerships will be required to launch effective advertising campaigns, distribution channels, education and conduct research.

Specifically, TAT as the convener and associated participants will be required for the project’s initial coordination phases and importantly, suitable tour operators/travel agents can provide invaluable development input and feedback.

6. Packaging

Given that e-Home-stay is undertaking a sustainable tourism strategy it makes sense to sell the experience as a package. This has a number of additional advantages:

o It is easier to educate the packaged touristo It is easier to coordinate with a tour operator to prevent negative impactso Possible to identify a package tourists as high-yield, high-quality visitorso Certain types of packaging or group tours can be avoided

e-Home-stay should develop packages that:

o Promote authentic heritage and cultural experiences and activitieso Develop remote sites if suitably managedo Occur during Thailand’s off-peak as well as peak seasonso Make use of local community facilities, businesses and activitieso Mix residents (hosts) and tourists (guests)o Allow investment in development and education projects.

Packages can have a core activity, such as a festival, farm stay or volunteer teaching, or can be designed for cultural experience. Guidelines for packaging include:

o The package should have a clear and authentic propositiono Price the package to cover all fixed and variable costs (van hire, guide)

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o Develop all-inclusive packages that provide good value-added appeal and offers a unique visitor experience

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7. Programming

Programming involves the addition of special events and activities to increase attractiveness. Operators and their communities should develop programming to convey the image of an authentic, active place to attract specific market segments. Though great care must be taken to ensure these activities and events are authentic and not ‘staged’.

8. People

Home-stay operators will require cultural and hospitality training, however their local communities will also be seen as part of the product. Hospitality will not be found where residents are unhappy with the tourism development in their community so in will be imperative for benefits to ‘trickle down’ to members of the community. This can be in the form of traditional craft sales, food stalls (local restaurants) and involvement in the value added activities. Many destinations employ internal marketing campaigns to convince residents that tourism is beneficial and visitors should be respected and assisted. Many people who meet and serve visitors do not think of themselves as being in the tourismindustry and therefore have to be educated about the importance of their role in the overall tourism process.

Financial Requirements

The marketing and associated costs should not be passed on to the ‘low end’ Home-stay operators (authentic village based) but rather they should be allocated to the government’s policy of economic equality for all of Thailand’s population. The TAT website is already well developed therefore the marketing costs related specifically to the Home-stay sector will involve developing the e-Home-stay intelligent decision support system as well as costs related to collecting data from the current and potential Home-stay operators. Much of the community based management and training is also in place as the One Tambon, One Product (OTOP) initiative developed these several years ago.

Unlike hotels, the challenge that is usually faced by Home-stays is the low connectivity and problems in reservation due to minimal computerization. Another factor is the anticipated relatively low level of information technology awareness of many home-stay operators, therefore a process of training will be required. Additionally, their location in remote corners of scenic tourist spots becomes a disadvantage and limits their scope of communicating to tourists. Therefore the website should introduce a customised booking engine which includes real time payment systems in numerous different currencies, and a revenue sharing system (for example http://nexgentravel.com/). TAT can make this system available to numerous tourism operators and thus the initial and ongoing costs will be kept relatively low for the Home-stay sector.

The supply side will require a program for expanding the number of authentic village-based Home-stay operators as well as cultural awareness education for the communities associated with Home-stay operations. Data collection from home-stay operators as well as assessing value-adding opportunities and activities for each property will demand a large proportion of the financial resources. The project will require a monetary grant initially and ongoing support to ensure its goals and objectives can be achieved.

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Evaluation

Objective 1

Amount of revenue from home-stays and guide servicesLevel of local participation and satisfaction with home-stay design, monitoring

Objective 2

Number of cultural features in home-stays and adaptation for visitorsLevel of awareness activities and positive actions taken by hosts and visitors

Objective 3

Level of visitor satisfaction with home-stays and related servicesNumber of tour operator activities to promote and include home-stays in itineraries

Future Objectives

Develop a research project to explore the opportunities to expand this e-Home-stay marketing model to the Greater Mekong Sub-region countries. Ideally, this will include a formal recognition of the project and ongoing financial and administrative support.

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