The growth of the tourism business with emerging outbound markets and new destinations is drawing an increasingly competitive scenario with plenty of opportunities. Moreover, the markets are evolving rapidly with new business models, new communication & sales channels and new market segments.
This major dynamism, innovation and market fragmentation requires a systematic analysis to detect new trends, new key success factors, foresee its threats and take advantage of its opportunities. Furthermore, along the last years there has been a significant decrease on the tourism promotion profitability, which suggests the convenience of innovating in more efficient marketing strategies and tactics.
Market intelligence (MI) is a systematic process of search, selection, analysis and distribution of information about the competitive environment, recognized and accepted by all the organization and its stakeholders.
The market intelligence studies are to identify business opportunities and market trends, analyze competitors, their practices and strategies, and all the variables that affect the evolution of the competitive scenario in order to orientate the strategic planning.
The impact of the MI activities consists mainly of the support given to cost reduction decisions -including risk reduction on the decisions to make- and de discovery of opportunities and innovations that produce an increase to the value provided to the client. The knowledge generated by the MI may be summarized in the following points:
- Detailed company profile of all potential collaborators.
- Best practices in marketing, management, innovation and new business models.
- Markets and segments attractiveness. Opportunities, market trends and evolution of all the key factors influencing business development and profitability.
- Key information for the design, innovation and product development obtained from deep demand analysis.
- Key information for the optimization of the company’s commercial missions in the outbound markets, as well as for the Tourist Boards.
At the end, this brings the following benefits:
- Decrease in the risk of failure.
- Business diversification with the penetration in new markets and segments.
- Improvement in the competitiveness and the innovation process.
- A revenue increase from the opportunities of which we take advantage.
- A major profitability of the marketing investment.
Can you envision any other outputs or benefits of the market intelligence?