Ten Keys for Success in Ten Keys for Success in Destination eDestination e--BusinessBusiness

Dr Roger Carter

Managing Director

TEAM Tourism Consulting

Indaba, Durban

11 May 2009

Speaker backgroundSpeaker background

• Spent 25 years working for tourism organisations – national, regional and city – within the UK

• In 1997, established TEAM, a consultancy in strategy, business planning and operations management for destination management and marketing organisations – with a strong focus on e-business

• Involved in more than 225 consultancy projects, throughout the UK and in Saudi Arabia, Oman, Australia, South Africa, Seychelles, Estonia, Ireland, Portugal,

• Co-authored the UNWTO Business Council publication, • Co-authored the UNWTO Business Council publication, “Marketing Tourism Destinations Online”, 1999, + successor publication “E-Business for Tourism, published in October 2001

• Two new publications in 2008: “A Guide to Destination Management” for the UNWTO; and “eMarketing Handbook for the UNWTO and the European Travel Commission

• TEAM operates the ‘New Media Trend Watch’ Web site for the European Travel Commission

• Managing Editor of ‘DMO World’, a newsletter for tourism destination professionals around the world

Latest Edition of Destination World eLatest Edition of Destination World e--newsletternewsletter

www.destinationworld.infowww.destinationworld.info

AgendaAgenda

• Ten ‘Keys to Success’ in destination e-

Business

• Cape Town Tourism – making it all

happen

• Other examples of best practice• Other examples of best practice

• The Destination as a Community

• Conclusions

AgendaAgenda

• Ten ‘Keys to Success’ in destination e-

Business

http://pub.unwto.org/epages/Store.sf/?ObjectPath=/Shops/Infoshop/Products/1465/SubProducts/1465-1

EE--Marketing Handbook for DestinationsMarketing Handbook for Destinations

• E-marketing for Tourism Destinations – The Big Picture

• Content Is King – How to Build and Manage Content that Convinces the Customer

• Social Networking and User-generated Content (UGC)

• Make a Winning Website – The Keys to Success

• Search Engine Optimisation (SEO) – Getting Better Search Engine Results the ‘Natural’ Way Engine Results the ‘Natural’ Way

• How to Acquire and Develop Customers – Marketing Channels and the Use of Customer Relationship Management

• Branding – Project the Essence of the Destination

• E-commerce for Destinations – Turning Enquiries into Sales

• Mobile Marketing – Exploiting the Essential Companion to Everyday Life

EE--Marketing Handbook for DestinationsMarketing Handbook for Destinations

• The New Television – Convergence of Media: Interactive TV,

Video, Internet

• and Gaming

• Online Destination Media Relations – How to Gain Online

Coverage and Be Ready for a Crisis

• Supporting the Travel Trade in Source Markets

• E-marketing with the Destination’s Tourism Suppliers

• Income Sources for DMOs – Raising Income from Your E-• Income Sources for DMOs – Raising Income from Your E-

marketing Services

• Measuring Success – Methods for Reporting of E-marketing

Activity, and Continuous Measurement of Performance Quality

and Outcomes

• Web Analytics – Boost Your Online Impact with Data-driven

Optimisation

• How to Manage Your Domain Names – Choosing and

Maintaining Domains that Support a Wide Range of E-marketing

Activities

• Market Trends

Ten keys to success for destinationsTen keys to success for destinations

1. Reach as many potential customers as possible

2. Maximise the lifetime value of customers, by

maintaining the relationship

3. Engage in social networking and user generated

content

4. Create a compelling website experience

5. Maintain high quality content5. Maintain high quality content

6. Generate sales, directly or indirectly

7. Offer do-it-yourself packaging

8. Engage tourism businesses to get their inventory online

9. Demonstrate return on investment – performance

evaluation and benchmarking

10. Ensure effective electronic distribution of information to

travellers and visitors

Ten keys to success for destinationsTen keys to success for destinations

1. Reach as many potential customers as possible

2. Maximise the lifetime value of customers, by

maintaining the relationship - CRM

3. Engage in social networking and user generated

content

4. Create a compelling website experience

5. Maintain high quality content5. Maintain high quality content

6. Generate sales, directly or indirectly

7. Offer do-it-yourself packaging

8. Engage tourism businesses to get their inventory online

9. Demonstrate return on investment – performance

evaluation and benchmarking

10. Ensure effective electronic distribution of information to

travellers and visitors

Sources used to find out where Sources used to find out where to go in 2005 in various marketsto go in 2005 in various markets

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%

Australia

Brazil

China

Japan

USA

Denmark

India

Russia

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

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%

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

Korea

Italy

France

UK

PoIand

Netherlands

Spain

Mexico

Canada

Germany

Australia

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

Primary sources of information Primary sources of information -- USUS

Primary source for researching travel information according

to US internet users in June 2008

(% of respondents)

17.4%

72.2%

Family and friends

Internet

3.2%

3.4%

3.8%

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

TV and radio

Magazines and newspapers

Travel agents

Source: Prospectiv study “Consumer Preference Index” (reported by eMarketer, July 2008).

Newspaper

Consumer opinions posted online

Email I signed up for

Brand Web sites

Recommendations from consumers

"Indicate your overall level of trust in the following…..”

Most trusted sourceMost trusted source

0 20 40 60 80 100

Text ads on mobile phones

Online banner ads

Product placements

Ads before movies

Search engine ads

Brand sponsorships

Radio

TV

Magazine

Newspaper

Trust "somewhat" Trust "completely"

Base: 470 responses recruited from PlanetFeedback.com members.

Source: Forrester Research Inc. and Intelliseek.

Most trusted online source Most trusted online source -- UKUK

12%

15%

15%

21%Sites with reviews by other travellers

Online tourist guides

Local tourist guides

Travel agent sites

Most trusted online source for reliable travel information according to UK Internet

users, September 2006 (% of respondents)

12%

5%

0%

10%

11%

0% 5% 10% 15% 20% 25%

Search results

Airline sites

Advertising eg banner ads

Other

Don't know

Source: Nielsen//NetRatings commissioned by Adviva and Harvest Digital, January 2007

– quoted by eMarketer in June 2007

Change in Opinion if Content Added to TripAdvisor(opinion of a supplier that posts the information on TripAdvisor)

4% 53%

45%

37%

43%

46%

58%

9%

5%

Dedicated section for supplier

content

Reviews from employees of

suppliers

Supplier responses to

consumer reviews

Participation in the dialogueParticipation in the dialogue

6%

12%

53%

46%

41%

42%

Official reviews from suppliers

Supplier corrections to

consumer reviews

content

Negative Influence No Influence Positive Influence

Source: Compete Inc., “Consumer generated content in Travel” April 2007

• Information, reviews, photos and videos of just about

anything, anywhere

• More extensive content about destinations than has

ever been possible for most tourism organisations to

gather

• How can the tourism organisation add value? The

Social networking and user generated contentSocial networking and user generated content

• How can the tourism organisation add value? The

challenge and the opportunity

• Be part of it. Engage with it, directly and indirectly.

Exploit every opportunity

• Monitor and influence the content of social

networking sites

– Instant customer satisfaction research

– A tool for raising product quality

Ten keys to success for destinationsTen keys to success for destinations

1. Reach as many potential customers as possible

2. Maximise the lifetime value of customers, by

maintaining the relationship - CRM

3. Engage in social networking and user generated

content

4. Create a compelling website experience

5. Maintain high quality content5. Maintain high quality content

6. Generate sales, directly or indirectly

7. Offer do-it-yourself packaging

8. Engage tourism businesses to get their inventory online

9. Demonstrate return on investment – performance

evaluation and benchmarking

10. Ensure effective electronic distribution of information to

travellers and visitors

Mobile locationMobile location--based service users based service users

329

486

350

400

450

500

Mobile location-based service users

worldwide, 2007-2012

18.961.3

134

215.3

329

0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012

million

Source: eMarketer, September 2008 (reported by Telecoms.com).

FiveFive--fold increase in mobile social networking by 2012fold increase in mobile social networking by 2012

Worldwide mobile internet users and worldwide

mobile social network users, 2007-2012 (in

million)

757

982

1,228

803800

1000

1200

1400

million

406490

596

82147

243369

554

0

200

400

600

2007 2008 2009 2010 2011 2012

Mobile Social network users Mobile internet users

Source: eMarketer, May 2008.

million

Destinations Destinations –– The eThe e--marketing survival kitmarketing survival kit

Reach as many potential

customers as possible �

• Search engine optimisation

• Distribution partnerships

Maximise the lifetime

value of customers �

• CRM systems

Join the social networking

revolution and facilitate

user generated content �

• UGC/C2C functionality on website

• Engagement with UGC and social networking sites

• UGC tracking/response software

Maintain high quality

content �

• Content management plan and system for

acquisition and distribution of content

• Quality assurance of content

Create a compelling

website experience �

• Creative design, efficient functionality, interactivity

with UGC, third party content/services website experience with UGC, third party content/services

Deliver sales, directly or

indirectly �

• Booking engine and customer orientated booking

processes or

• Meta-search comparison engines with ‘polling’ for

availability and price

Offer customised

packaging �

• Meta-search to access wide range of destination

products

Engage tourism businesses

to deliver the inventory �

• Industry extranet to provide services & knowledge

• Low cost PMS to supply inventory dynamically

Evaluate and benchmark

performance,

demonstrating return on

investment

�

• Site performance measurement

• Web analytics

• User surveys

• Real-time testing of alternatives

Ensure effective electronic

distribution of information

to travellers and visitors �

• Podcast destination guides

• Location based services

• Wide area WiFi (WiMax)

AgendaAgenda

• Ten ‘Keys to Success’ in destination e-

Business

• Cape Town Tourism – making it all

happen

AgendaAgenda

• Ten ‘Keys to Success’ in destination e-

Business

• Cape Town Tourism – making it all

happen

• Other examples of best practice• Other examples of best practice

Spain Spain -- Multimedia (1)Multimedia (1)

Spain Spain –– Multimedia (2)Multimedia (2)

Pennsylvania, USA: VisitPA.comPennsylvania, USA: VisitPA.com

Visit PA Visit PA -- the outdoor adventurerthe outdoor adventurer

Real

Roadtripper

video

RoadtripperRoadtripper BlogBlog

Pennsylvania, USA: video sharingPennsylvania, USA: video sharing

Specialty playlist Specialty playlist –– locals, a trip along Route 6locals, a trip along Route 6

VisitVictoria blog/forumVisitVictoria blog/forum

Visit Victoria Visit Victoria –– Mobile contentMobile content

AgendaAgenda

• Ten ‘Keys to Success’ in destination e-

Business

• Cape Town Tourism – making it all

happen

• Other examples of best practice• Other examples of best practice

• The Destination as a Community

The destination as a communityThe destination as a community

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

• The DMO is at the heart of the community, which may be represented like this …

Consumersat home

ConferenceBuyers

Visitors –Mobile

Travel Trade/ GroupOrganises

Travel Media

The

Destination

& the DMO

Community– Residents,

Transport

RDA & Govt

Local Authorities

& the DMO– Residents,Schools, etc

© TEAM 2000© TEAM 2006

Accom & cateringsuppliers

Attractions and events

Conference,

Exhibition,

function venues

Police, Health & other services

Handheld

Consumersat home PC

TV

Handheld PC

PC

Handheld

ConferenceBuyers Visitors –

MobilePC

Kiosk

CallCentres

PC/TV

(Hotel)

Handheld

Info

search

Print

mgmtCMS/ Web

Publishing

Image

library

CRM/

Internet

Travel Trade/ GroupOrganises

Reser-vations

Online

Travel Media

Databases

Handheld

PC

Product CustomerPC

© TEAM 2000

Major Partners –Public & Private

Handheld

Tourism

Information

Centres

Tourism Marketing

PC

Tourism

FacilityOperators

PC

CRM/Contact

mgmt

‘Push’ marketing

Marketanalysis

Impact

Analysis

Tourism

Development

& BusinessSupport

PC

MIS/evaluation

Online

surveys

PC

HandheldKnowledge

PC

Visitor Services &Manage-ment

PC

Community– Residents,Schools, etc

Handheld

PC

© TEAM 2000© TEAM 2002

AgendaAgenda

• Ten ‘Keys to Success’ in destination e-

Business

• Cape Town Tourism – making it all

happen

• Other examples of best practice• Other examples of best practice

• The Destination as a Community

• Conclusions

ConclusionsConclusions

• E-marketing is paramount in all mature markets

• You need to engage actively with social networking and UGC

• Mobile access and commerce represents a major new dimension to e-marketing to consumers at home and in the destination

• In a multi-channel world, get the blend of channels right for your target market

• Re-evaluate every year – adjust budgets to reflect changes in • Re-evaluate every year – adjust budgets to reflect changes in channel cost-effectiveness

• Partnerships make sense in the electronic world

– Content acquisition

– Distribution

• Scale down/consolidate traditional channels in line with the

market

Does your marketing plan give enough weight to e-marketing?

Is it flexible enough to exploit the latest opportunities?

Thank you for your attention!

For further information:

Dr Roger CarterRogerCarter@team-tourism.com

+44 7932 739 453

Web sites of interest, prepared by TEAM

www.newmediatrendwatch.com for analysis of Internet and other new media use in all major markets

www.destinationworld.infofor news and feature articles relating to destination management

and marketing

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