Packaging Travel on the Web: A Case Study of Ottawa Tourism

Statia Elliot & Marion JoppeSchool of Hospitality & Tourism Management

University of Guelph

Abstract The advancement of Central Reservation Systems (CRSs) has provided Destination Marketing Organizations with sophisticated tools to operate effectively in today’s e-tourism environment. A growing segment of eTourism sales is travel packages. To assess the effectiveness of net packaging and to identify strategic opportunities provided by data collected through the process of package sales, the Ottawa Tourism CRS system and data warehouse is explored. Trends indicate the growth in net versus phone bookings, and package versus regular bookings. These are positive trends given that packages represent longer stays and higher expenditures, aligning with strategic directions of the destination.

DMO Evolution

•Technological advancements have moved DMOs from marketing to distribution, selling, and revenue generating

•This study assesses Ottawa Tourism’s successful adoption of a CRS with advanced packaging capabilities

•Two years of booking data, (April 2008 to March 2010) comprising over 13,000 bookings worth $4.3 million were mined to evaluate packaging effectiveness

•Mid 90’s researchers indentify online potential for DMSs to integrate products, distribute, engage visitors and generate data (Pollock,1995, Sheldon, 1997)

•Yet only a few offer the promised benefits (Buhalis, 2003)

•UNWTO and ETC urge DMOs to make all products bookable online (eg. Visit Britian)

80% of North Americans are

Online

Who is Ottawa Tourism?

•Ottawa Tourism is a multi-faceted DMO, investing in eTourism since the late 90s

•Online bookings were introduced in 2003, enabling potential travelers to book their trips directly through an individual hotel and pay online

•In 2006 Ottawa Tourism adopted a new reservation system: called Meridian Reservation Systems

•Meridian’s destination-driven packaging engine has enabled Ottawa Tourism to create, manage, promote and sell dynamic packages to a range of target audiences

Ottawa Tourism Report by Type of Booking (Apr’08 - Mar’10)

Ottawa Tourism Report by Nights & Amount Booked (Apr’08 - Mar’10)

•While accommodation only bookings still outnumber package bookings (60% and 40%, respectively), results indicate that packages continue to gain a sizable share of bookings

•Most impressively, in terms of performance, packages represent longer stays (2.6 nights versus 2.2 nights) and higher expenditure amounts per booking ($337 versus $305) than regular accommodation only bookings

•These increases represent a 20% longer stay and an 11% greater expenditure for booked packages

Packages increase Value

• Packages present great opportunity for increased revenue, adding value for the consumer

• Since the implementation of the Meridian System, Ottawa Tourism has seen a significant return on their initial investment, and all signs point towards a continuation of the growth in online bookings

Family DiscoveryPackage: a two-night getaway with 3rd night at half price from participating hotels.

Target: leisure family segment

Features: family admission to Ottawa museums, galleries, and attractions

Total Amount of Bookings

$372,891

Percentage of bookings made Online

68%

Growth of Online Bookings

130%

+146 Growth in 2009/10

Rendez-Vous for Two•Package: a two-night getaway with 3rd night at half price, with admission to world class cultural institutions

•Target: Couples

•Features: Spas, dinner and tickets to Ottawa cultural institutions

Total Amount of Bookings

$127,660

Percentage of bookings made Online

66%

Growth of Online Bookings

250%

+266 Growth in 2009/10

Fall Urban Adventure

+185% Growth in 2009/10

•Package: a two-night getaway with 3rd night at half price

•Target: outdoor adventurers

•Features: Aboriginal attractions, animal farms, whitewater rafting, steam trains and Capital cruises

Total Amount of Bookings

$15,269

Percentage of bookings made Online

60%

Growth of Online Bookings

180%

Package: a two-night getaway with 3rd night at half price from participating hotels with admission to Ottawa's tulip festival

Target: domestic leisure

Features: family admission to Ottawa tulip festival, galleries, and attractions

Tulip Celebration

+8 Growth in 2009/10

Total Amount of Bookings

$73,188

Percentage of bookings made Online

67%

Growth of Online Bookings

10%

Urban Adventure

+57% Growth in 2009/10

•Package: a two-night getaway with 3rd night at half price from participating hotels, and admission to a variety of cultural attractions.

•Target: general leisure market

•Features: admissions to museums, galleries, and assorted attractions

Total Amount of Bookings

$17,057

Percentage of bookings made Online

67%

Growth of Online Bookings

127%