Month: October 2017

Business trendsCulture changeInnovative culture

Human digital tourism

Are you a human e-leader? Europe is working to develop more professional profiles that improve their competitiveness and productivity over the long term, focusing on developing attitudes and skills related to humanism, competitiveness and innovation.

Based on a research survey carried out in 2012 by IDC and INSEAD for the European Commission’s Directorate General Enterprise and Industry, named “e-Skills for Competitiveness and Innovation”, it works to visualize the future scenarios that we are likely to face and the challenges that we are likely to tackle.

The focus is on developing social and personal skills, as well as technical and business entrepreneurship capacities in an ongoing way, thus to make human e-leaders. The report explains that Europe has to take advantage of the opportunities in fields such as innovation, new technologies and emerging markets, new ways of managing productivity, etc. without stopping growth.

At present, digital economy makes it obvious that investing in ICT is necessary. However, it is also necessary to have human resources up to date with training to manage and optimally leverage these technologies. Managers, entrepreneurs, and business executives must have e-competences to grow, export and be connected to the global digital markets. In a digital economy, e-leadership skills are essential. —Michel Catinat, Head of Unit “Key Enabling Technologies and ICT” at DG Enterprise and Industry, European Commission.

Taking this reflection and the survey results to the tourism industry I foresee that we have to develop a strategy, skills and tools with the digital component in the center, connected to each of these concepts. The tourism industry, through its destination managers such as DMOs and businesses should lead the digital tourism development. This industry, more than ever before, needs e-leaders to orient the good practices of the industry as long as it grows rapidly and is sensitive to all changes and advancements in digitalization.

Digital tourism needs to generate a human resources solid base ready for the digital era, who are not only technically competent but also skilled for human relations through the social networks. At the same time, it is necessary to develop adequate profiles, retain them to let them consolidate their expertise and let them co-create with each other.

According to the mentioned survey, the demand for positions with technological skills will gain importance, and they will be hunted for medium and top managing positions, rather than in supporting and operational levels. E-leaders are expected to be the main drivers of productivity, and so the quantity and quality of those e-leaders is a key asset for an economy to compete.

Nowadays we all try to do more with lesser resources, by reinventing ourselves, the organizational structures, the business model and the strategy we develop to compete. Are we going to be capable of managing and leading teams while mastering the new technological systems to meet both the local and the global demands?

The survey also summarizes the main differences between leaders and bosses considering several issues related to the digital field:

BOSS E-LEADER
The boss manages The leader innovates and starts up
The boss maintains The leader develops
The boss focuses on systems and structures The leader focuses on people
The boss relies on control The leader inspires confidence
The boss asks why and when The leader asks what and for what
The boss does things well The leader does the right thing

If we look at the right hand side column, we can see words such as inspire, develop, people, confidence, etc. The difference is mainly that the words referring to e-leaders are to humanize the relationships between the different levels of the hierarchy.

This blogpost is from  http://www.visionesdelturismo.es/turismo-digital/

Environmental sustainabilityMarketing 3.0SustainabilityThird sector and social sustainability

Sustainable management of tourism destinations: challenges, goals and advantages

Since the concept of Sustainable development became popular in the mid 80’s with the celebration of the UN World Commission for the environment and development (Bruntland, Our Common Future, 1987) where this concept is defined for the first time: “The development responding to the needs of the present without compromising the development needs and satisfaction of the future generations”.

When applying this concept to the tourism industry, the concept of Sustainable tourism development is also born: “Development considering the economic, social and environmental impacts when satisfying the needs of the visitors, the local communities and the environment” (UNWTO).

Balancing the three dimensions. Therefore, a tourism development supported by an adequate balance of these three dimensions guarantees the destination’s sustainability in the long term, in a way that the destination operators have to:

1) Optimize the use of the environmental resources, a fundamental asset for the tourism development, keeping the essential eco-friendly processes and helping to preserve the natural resources and the biodiversity.

2) Respect the socio-cultural authenticity of the local communities, preserving their cultural assets and their traditional values, contributing to the social equality and the cross-cultural understanding.

3) Ensure that the economic activities are viable in the long term, delivering profits to all stakeholders proportionally, creating opportunities for stable employment for the local communities to obtain income and social services, thus contributing to reduce poverty.

The principles of sustainable tourism may turn into a series of management practices, which are applicable to all kinds of tourism businesses. The purpose of these principles is to minimize the negative impacts and maximize the benefits of the tourism activity in the socio-cultural, business and natural environment. Nowadays there are an increasing number of Governments and DMOs that adopt the sustainability principles within their management practices.

It is possible to say that sustainable tourism is a new fashion thanks to the new kind of traveler, who is better informed, and more linked to the destination’s social and cultural reality, so long as he or she is more exigent with the overall experience and looks for authenticity through the connection with locals. To satisfy the expectations of this new tourist demand, destinations face many new challenges and goals.

Goals for a sustainable management. On one hand, destinations have to adopt interdisciplinary and integrative approaches, including four main goals:

  1. Prove a sustainable management. Through actions such as the crisis and emergency management or the policies to counter the climate change.
  2. Maximize social and economic profits for the local community and minimize negative impacts, through supporting local entrepreneurs and public participation.
  3. Maximize profits for the local communities, visitors and cultural heritage, while minimizing the negative impacts, by preserving the tourist sites and managing the visitors’ behavior.
  4. Maximize the profits for the environment and minimize the negative impacts, by protecting the fragile environments and controlling the emission of toxic gases.

Challenges for sustainable tourism. On the other hand, in accordance with the destination’s sustainable management, the destination executives face new challenges:

  1. Reduce demand seasonality
  2. Tackle the impact of the tourism transport.
  3. Improve the quality of the tourism sector employments.
  4. Keep and improve the local communities’ prosperity and life quality.
  5. Minimize the use of resources and the production of waste.
  6. Preserve and leverage the value of natural and cultural heritage.

All these challenges can be overcome by using tourism as a tool for sustainable development through coordination between the public and private stakeholders.

To sum up, the 17 goals projected by the UN World Tourism Organization in its report “Tourism and the Sustainable Development Goals” are the following:

  1. No poverty
  2. Zero hunger
  3. Good health & well being
  4. Quality education
  5. Gender equality
  6. Clean water & sanitation
  7. Affordable & Clean energy
  8. Decent work & Economic growth
  9. Industry, innovation and infrastructure
  10. Reduced inequalities
  11. Sustainable cities and communities
  12. Responsible consumption and production
  13. Climate action
  14. Life below water
  15. Life on land
  16. Peace, justice and strong institutions
  17. Partnerships for the goals

This blogpost is from  http://www.visionesdelturismo.es/gestion-sostenible-de-destinos-turisticos/

Business model innovationCollaborative business modelsCollaborative culture

Collaborative tourism: is it an original business model?

When we talk about collaborative tourism or tourism peer to peer, we refer to a new trend in the way of traveling based upon sharing basic resources such as accommodation, transport means or personal experiences with other travelers through platforms where the host publishes his/her offer and the tourist makes the booking.

Theoretically, this phenomenon comes from the collaborative economy model, where consumers may also become suppliers by sharing their means with other consumers, also operating on a global scope, prioritizing human relationship above competition and selfishness. The presentation results in being attractive to more and more tourists, who do not really know the business model completely.

Due to the constant transformation of the virtual economy, the task of identifying and describing virtual business models has turned to be quite hard. However, since this P2P platform business model usually determines it’s success, it is no longer unknown: platforms meet the needs of both supplier and buyer, and take a commission from the booked services price.

Checking the four main collaborative platforms operating in Spain for the four types of services available (eating, accommodation, transport and experiences), we find that their revenue sources are not so different from the traditional tourism intermediation models:

  • AirBnB: charges a commission between 6 to 12%, plus 3% of the conversion rate.
  • BlaBlaCar: depending on the amount of the transaction, it charges 1,60€ for transactions from 1 to 8€ or a commission of 20% for transactions of more than 8€.
  • EatWith: it takes a commission of 15% of the transaction.
  • Trip4Real: it takes 25% of the transaction.

A similar procedure is used for any other tourism intermediary, such as a travel agency, a tour-operator, broker, etc. The difference remains in that these intermediaries comply with the regulations in terms of safety, health and taxes, whereas most of the accommodation and transport means offered in the collaborative platforms do not comply with them.

Therefore, the consumer of collaborative platforms pays a lower price due to the non-compliance with the aforementioned regulations, and takes the risk of suffering any kind of accident without the safety prevention means. Furthermore, despite the social sharing philosophy upon which the platform is created, many suppliers operate for profit rather than for the aim of sharing cost or experiences. However, this is difficult to prove and control.

The hospitality sector’s opinion. The outburst of the tourism collaborative platforms has transformed many housing apartments into competitors for the hotels and regulated tourist apartments, and so it has turned into an important issue for the Public Administration.

According to the Spanish Confederation of Hotels and Tourist Apartments, there are only two possible solutions to this conflict: the total banning of the platform operations –as has happened in many major cities-, or the obligation for the apartments to comply with the same regulations as the current regulated tourist apartments.

It is necessary to take into account that the tourism sector in Spain is hyper-regulated. There are around 250 regulations at the European level referring to intellectual property, consume, safety and payment means, plus those from the local administration. All in all it entails a great deal of costs that do not apply to the collaborative platform operators, including the VAT, the police files, fiscal and sanitary costs. This is clearly a case of unfair competition. In this regard, there are many points to consider:

  • The regulations applying to these tourist housing apartments are different for every region in Spain, for it is necessary for the destination regulators to study them all in detail.
  • It is necessary to consider the product separately from the platform, taking into account that the platform operation is similar to the traditional channels such as the travel agencies, and so the same regulations should apply.
  • The evolution of the global society is likely to propel this paradigm beyond the current conditions, demanding solutions in terms of adapting the new regulation and policies.

This blogpost is from  http://www.visionesdelturismo.es/turismo-colaborativo/

Business trendsInnovationMarketing 3.0StrategyTourism marketing

Digital transformation in Tourism

The tourism industry is facing changes affecting the whole value chain, in both public and private sectors and to the whole system (demand, offer, markets and territory). In the coming ten years, the tourism industry is likely to generate new economic, social and environmental impacts through the digital transformation. More precisely, digitalization is impacting intensively and rapidly, forcing businesses to adapt to this environment of permanent transformation.

Digital transformation trends in tourism. There are four main technologies leading the digital transformation in the tourism industry:

  • Cloud: data collection, management and processing.
  • Mobile: platforms, services and applications for smartphones and tablets.
  • Internet of things: devices and objects connected to the internet.
  • Social: social networks through which the users participate, share and exchange contents and services.

And according to the report from the Orange Foundation about the digital transformation of the tourism sector in Spain, the main trends of the upcoming years are likely to be the following:

  1. New intermediation models. New agents have contributed to redesign the value chain, like the collaborative platforms (airbnb, uber, etc.)
  2. Technological platforms based upon cloud computing. Managing and processing Big data and Data Lake.
  3. The mobile. New tourism products and services to be consumed through the mobile devices.
  4. Internet of things. Wearable devices, Smart straps, beacons and chatbots are the main technology elements.
  5. Smart destinations. Appliance of advanced technologies under the denomination of Smart tourism destinations, Smart cities or Smart islands.
  6. Social networks. Also used as marketing tools.
  7. OTA’S and intermediation, search and comparison platforms, and e-commerce.
  8. Collaborative economy. Activity ecosystems where reputation becomes a fundamental business asset.
  9. Other technologies starting to gain protagonism in the tourism industry are geo-localization, virtual reality and augmented reality.
  10. Big data: The chances offered by many of the new technologies to generate and capture data.

In the digital transformation cross-sector process, tourism businesses have four main challenges to tackle:

  • People: new ways of working with human resources regarding communication and the need for skill development to adapt to the new realities, multiculturality, remote working, virtual teamworking, etc.
  • Infrastructures: incorporation of new digital tools.
  • Processes: new ways of using these new tools and working.
  • Systems: availability of environments which are adaptable in a way that allow businesses to design processes more rapidly.

Nowadays, most tourism organizations adopt the most sophisticated digital technology carrying out large investments in renewing their methods and tools, and there are also new collaborative models. However, the success will stay in being capable of having profiles with digital competences.

This blogpost is from  http://www.visionesdelturismo.es/transformacion-digital-en-turismo/

Business trendsEnvironmental sustainabilityStrategySustainabilityThird sector and social sustainability

Tourism business trends for 2017: Social responsibility is profitable

The UN Global Compact was born as an international Project created in 1999 whose mission was to initiate a global movement to create awareness among the sustainable businesses about the impacts created by their activities, so as to mitigate their negative consequences.

The key points of the initiative are developed upon some clearly defined goals:

  • Doing business responsibly, aligning strategies to the ten universally accepted principles to promote CSR in the areas of environment, labor rules, corruption prosecution, and human rights.
  • Make strategic decisions to develop UN Sustainable Development Goals, emphasizing on innovation and collaboration.

There are more than 13.000 supporting organizations in more than 145 countries, being the largest business social responsibility voluntary initiative worldwide.

One of the usual questions is whether CSR is profitable or not. According to the World Business Council for the Sustainable Development (WBCSD) there are five sources of profitability within SCR:

1. Operational efficiency: reducing waste, selling recyclable products, etc.
2. Risk reduction: taking care of the environment, developing anti-corruption practices, etc.
3. Human resources recruitment and retention: increasing productivity by attracting honest, committed and participative talents, and reducing their turnover.
4. Long term protection of raw materials’ sources: development of suppliers and improvement of the price and payment conditions.
5.  Demand growth: customer attraction and loyalty, and compliance with the large buyers’ requirements.

Far from considering Social Responsibility as a fashion trend or a mere philanthropic action, it is considered as a series of practices applied by firms, and that are part of their corporate strategy, as their goal is to minimize the business impacts and aims to create internal benefits for all the stakeholders.

Socially responsible businesses generate profits by improving their reputation. According to Adela Cortina –Director of the ETNOR Foundation about business ethics-, “social responsibility should be assumed as a management tool, a measure of prudence and an exigence of fairness”. However, there are not clear rules and universal criteria on how to apply Social Responsibility within the Corporate Strategy, letting its development be up to the business owner criteria.

Some of the tourism companies which adhere to the UN Global Compact for Responsible tourism are:

  • Ilunion Hotels.
  • Segittur – Turismo e Innovación.
  • Viajes El Corte Inglés.
  • The Ostelea School of Tourism and Hospitality

This blogpost is from   http://www.visionesdelturismo.es/tendencias-de-las-empresas-turisticas-en-el-2017-aplicar-la-responsabilidad-social-es-rentable/

Business trendsInnovationIntelligenceMarketing 3.0Tourism marketing

Tourism 3.0 – Innovation and digital competences

Along with the mega-trends that set Tourism 3.0 apart from conventional models, it is evident that not only the future but also the present state of the tourism industry is to be developed upon the new technologies along the whole industry value chain. Nowadays very few companies have not yet started their digitalization process. However, the issue is not about implementing new technologies, but about how to use them to increase productivity and add value for the customer.

According to Fernando de Pablo (President of Segitur, the Spanish Government’s Society for Tourism Innovation), we are in a world under continuous change where the tourism industry is the only one affected by all technology trends, and therefore needs new digital competencies. In the document elaborated by Thinktur (Forum focused on Tourism Innovation) “10 technological trends in tourism for 2017”, there are a handful of new advancements affecting the tourism sector:

  • Big data – Open data
  • Digital marketing
  • Smartphones & Apps
  • Virtual and immersive reality
  • Internet of things
  • Trans-commercialization
  • Natural language processing
  • Gamification
  • Personalisation systems
  • 2D and 3D printing

The goal of the digital competencies in the tourism industry is to develop the capacity of Discovery, learning, understanding and anticipating tourists’ motivations and expectations.

We have been taking pictures and videos about our traveling experiences for more than ten years, but being able to share them in real time through the social networks is a relatively new thing, which is possible thanks to the global connectivity available in most developed destinations. This is to satisfy the need for sharing our experiences with our relatives and friends, the main reason why we take all those pictures and videos.

The point is how to use the available technology, and to adequately choose which technology should be used for what purpose. It is therefore necessary to learn how to handle them before deciding.

The Hospitality industry and Digital Marketing. In the event “Tourism 3.0 – Innovation and digital competences” organized by IMF Business School we learnt about the experience of three hotels belonging to large Hotel chains implementing  their tourism digitalization strategy through marketing.

Madrid Marriott Auditorium Hotel. This hotel has initiated a Project to create tailored experiences through Big Data tools.

Hotel Meliá Castilla. This hotel has implemented an Inbound Marketing Strategy searching for customer loyalty, trying to turn clients into fans, so that the motivation for staying in the hotel comes from the tourists themselves.

Novotel Madrid Center. Beyond delivering the expected service, they search for elements that make the experience outperform in the customer’s expectation.

This blogpost is from  http://www.visionesdelturismo.es/turismo-3-0-innovacion-y-competencias-digitales/