Category: Tourism trends

Trends shaping the present and future of the tourism industry and case studies

Business trendsCo-creationEnvironmental sustainabilityMarketing 3.0storytelling

Envisioning Augmented Reality Games in destinations

Following up with the previous article on Augmented reality (AR), where many key ideas were introduced, this one is to envision further storyliving and gaming experiences based on Augmented Reality.

Creating an Augmented Reality gaming experience is quite a daunting task, so long as the digital content overlays the real world, a suitable scenario is needed to match with the game and its digital content. So, ideally, the game has to be based to some extent on the tangible or intangible (stories, traditions, etc.) heritage of the destination to make it meaningful and effective as a marketing strategy. The game can work as a tool to educate players in the destination history as well as to move them to take action in contributing to some of the local challenges.

For tourism destinations 3.0, the challenge of destination based Augmented Reality games is not only to draw the attention of many visitors, but also to offer them a life-changing edutainment experience that allows them to develop new skills on collaborative problem-solving, conflict resolution, critical thinking, negotiation, mindfulness, etc. Ideally, the game should be designed for many participants to play at the same time in order to make them interact and develop some of these skills.

Further, other relevant features to be considered in such games would be many constraints related to the social and environmental concerns and challenges, to raise awareness and address them to some extent, also awaking the players’ human spirit and turning it into a life-changing experience.

Let’s envision some prototypes:

  1. Worldwide AR game tournament calendar: Imagine a game that is going on globally and so takes place in several destinations sequentially, as it happens with many professional sports tournament calendar, so to attract gamers to each of the destinations participating in the game.
  2. Film story or local legend based AR game: Imagine gamers playing the characters of a film or series broadcasted in a destination, or from a local legend where they can create their own story collaboratively based on the same characters or adding some new ones, in the same scenario.
  3. Videogame based AR game: Imagine using a popular videogame to create an AR game attracting many of its fan players to the destination to play their own character or some of the existing characters in the physical scenario of the destination. This is compatible with Type 1.
  4. Collaborative challenge based AR game: Imagine an AR game to turn a collaborative challenge -such as an environmental or social challenge- into a game to further engage many players and make them become contributors. Making things fun helps both attracting and engaging unusual contributors.

Although it does not incorporate Augmented reality, Geocaching  is a good example to showcase what a multiplayer mobile phone based game can be. Foursquare is an example to showcase collaborative contribution through the mobile phone related to tourism destinations, although it is not a game nor it has AR.

At present, Augmented reality is mainly based on the mobile screen showing the view of its camera and displaying the related digital content, but in the near future it will merge with alternate reality as long as the wearable technology becomes more widespread. This will allow enhanced versions of the games, more complex and also more immersive for the player.

Business trendsMarketing 3.0storytellingStrategyTourism marketing

How Pokemon Go can inspire tourism experiences: envisioning augmented reality in destinations (I)

As many of you already know Pokemon Go is one of the most popular Augmented reality games, where a fiction world with many kinds of monsters overlays the real world through the smartphone screen. No matter how unreal do the monsters appear to be, game players end up behaving as if they were real, as fiction and reality merge in their minds.

Somehow, the augmented reality game creates a new reality overlaying the real that gets players to act in the way the game wants them to. It is therefore interesting to imagine how this game could be reframed or just how this technology could be used to move players to take action on a more meaningful purpose such as contribution to a social or environmental challenge. So long as we make sense of the world through stories, creating or using an existing story and developing an Augmented reality game to let the individuals become an active part of the story may turn out to be a truly powerful tourism experience.

Moreover, so long as the story and the game are focused on a mission related to social or environmental concerns, they end up being a very creative and effective way to move people to take action in favor of such concerns. As we have read in previous articles, stories that have a message and inspire contribution are like intangible gold, and Augmented reality games can make them even more powerful to create the desired impact.

Stories can be leveraged from legends, novels, films, history and may serve as a framework to create a gaming experience, especially for the younger generations who are keener on digital game playing, as a conveyor to learn history or sciences of the environment, for instance. In the case of theme parks, amusement parks, zoos, and other themed leisure and entertainment attractions, Augmented reality games should rather be inspired by videogames with characters related to the theme.

Needless to say, such games should be limited to car free areas, so long as the players usually lose sight of the “physical reality” and so become unaware of the real dangers, namely vehicles. In the first case, related to historical or environmental heritage, the game ground could be a monumental area, an old town, a preserved area (natural park) or even a museum.

The upcoming articles are to bring more insights about Augmented reality, Alternate reality and Mixed reality as drivers for destination experiences.

Business trendsIntelligenceMarketing 3.0Tourism marketingTourism trends

Destination Marketing For Millennials

It may be the year of the horse in the Chinese Zodiac, but in the travel industry, 2014 should probably be marked as the year of the local. Mass travel is out, and local, personalized experiences are in. Destination campaigns that emphasize local travel like ‘Visit Philadelphia’ and ‘London and Beyond‘ have already been wildly successful.

Who is driving this trend in travel? Millennials, of course – those who were born in the early 1980s – 2000s. Is your tourism business ready for the Millennials? Let’s start by looking at a few key features of this generation, as reported in this extensive study about Millennial travelers, & some ways tourism marketers can reach this key demographic.

marketing for millenials

Are you familiar with the next generation of travelers?

They are tech savvy. This almost goes without saying. Having grown up in a digital age, Millennials are now heavily tech-dependent. They consume information on a rapid and almost constant basis. In terms of travel, this means they book trips faster and, in turn, often share their own travel experiences in real time.

They are good citizens. Nearly half of Millennials show more interest in destinations that offer volunteering opportunities. Moreover, compared with the people over 30 years old, Millennials are more willing to engage in sustainable practices and care more about environmental issues.

They like to learn. Travel isn’t just about fun with this generation. Millennials are attracted to authentic destinations where they have the opportunity to learn something new. They also prefer hands-on, interactive experiences.

They are spontaneous. Many airlines and hotels have begun offering last-minute online travel deals targeted at digitally savvy Millennial travelers. A host of apps like Jetsetter and NextFlight have emerged to help travelers find a flight or a hotel on a whim.

They rely on word-of-mouth recommendations. 8 out of 10 travelers say they are likely to trust the recommendations of a family member or friend via social media when it comes to travel. However, more and more recent studies tend to report that travelers trust reviews from peer reviews and strangers more than those from friends or colleagues.

What does this mean for your business or destination?

All of this is great news for sustainable and community-based destinations. And it’s a call to action for all destinations to begin focusing on more authentic experiences. Here are some things every destination can do to help reach this desirable group of travelers:

Involve Locals. By far the best brand ambassadors of any destination are the people who live there, work there, and just love being there. Collaboration with local residents in destination marketing yields enormous results. Millennialls flock to this type of information because it’s authentic, insider information that stands out in a sea of mundane reviews. Millennials want to travel like locals, and there is no better way to do that than by connecting them with the local people of a destination.

Facilitate Relationship Building. All travelers want to feel special and welcome. It’s no different with Millennials. By making them feel welcome before they even touch down in a destination, you’ll already be establishing a positive experience. Visit a Swede is one great example of this relational marketing. The website aims to connect visitors with a local Swede before they even arrive in country. It’s takes the idea of involving locals to a whole new level – by promoting them as tour guides, coffee buddies, dinner hosts, and so much more. Bewelcome has also opened up channels of communication between the locals and the visitors.

Emphasize Authenticity. The last takeaway is the most encouraging: focus more on authenticity. The best part is that this is also the easiest lesson! Instead of focusing on what your destination lacks, you should find ways to celebrate what it has. You might be surprised by the response to some honest marketing that highlights the unique or quirky about your destination. Not every desirable destination has to have sunshine and beaches. Millennials are open to learning & relish new opportunities so don’t be afraid to embrace the off-the-beaten places within your destination.

This blog post is from www.solimarinternational.com/resources-page/blog/itemlist/tag/Social%20Media%20Marketing

Marketing 3.0Tourism marketingTourism trends

Using Pinterest for Destination Marketing

If you’re in the tourism industry and you’re already on Pinterest – nice work! If you’re not, now is a great time to start. You’ve heard the cliché, “Pictures don’t do it justice,” and that could not be more true than with travel.

Which catches your attention?

“A glass bottom boat with a thatched roof

anchored in crystal-clear, calm, blue water.”

The image, of course! Words can be very descriptive – great content is key in successful online marketing, after all – but images are more descriptive, leaving an imprint on minds and covering every language on the planet. Graphics rapidly fill the human mind – cognitively and emotionally, according to Mike Parkinson at Billion Dollar Graphics. Humans are very visual creatures – telling stories ages ago by painting images on rocks. We still use images today to tell our travel stories.

Pictures are much easier to process and much more compelling. Images are a great way to quickly and effectively express an experience, fact, or description. Not to mention that people are more likely to remember what they see. Even more importantly, images are an important part of the travel buying cycle. This graphic from Google is one of our favorites:

pinterest

Travel starts with dreaming, and a lot of times, dreaming starts with images. A photo of a picturesque beach, delicious local cuisine, or a breathtaking landscape have all launched travel experiences. And images are just as important in the sharing phase. After a traveler has returned from a trip, the sharing of their photos helps inspire others and launches them into the dreaming phase of the cycle.

How can a tourism business effectively use images for destination marketing? How can your business or destination engage travelers in the dreaming and sharing phases of travel? One great answer is by using Pinterest. This social media platform is incredibly useful to the tourism industry because it encourages the dreaming and sharing phases of travel through images and storytelling. In fact, Pinterest counts about 1.5 million destination pins every day, and now there are more than 750 million destination pins on Pinterest!

For tourism destinations, Pinterest can be a centralized photo space to show off destination highlights and discoveries. It is like a very large, continuous, and easily-updated scrapbook. For travelers, Pinterest provides a place to gather and organize destination images that represent ideas for future travel, thus, providing destination marketers a look into potential customers ‘usually secret’ travel bucket-list. Tourism destinations can use Pinterest to influence travelers to add their destination to travel dream-lists. When a tourism business analyzes their followers they can interact with potential customers at the top of the travel planning funnel and work to move them down the booking phase using tourism destination inbound marketing techniques. Interacting with potential travelers can influence their emotions about your destination, and everyone knows how emotions influence decisions!

An even more valuable and very recent addition to Pinterest is the use of Place Pins. Pinterest created ‘place pins’ to combine a picturesque travel magazine look to a useful online map. These ‘place pins’ can even include information such as addresses and phone numbers, making it easy for inspired travelers to seek out their bucket-list travel locations. For tourism destinations, this means that your Pinterest boards take on a whole new meaning. These Place Pins provide a visual plan for visiting your destination, and move your inspired travelers one-step closer to actually planning a visit!

All tourism destinations want to tell their stories and ‘pinning’ images on Pinterest is the best and easiest way to tell these stories in the most basic language known to humankind – pictures! Facebook and Twitter, alone, can not do this for your destination. If you aren’t on Pinterest or need help utilizing it more effectively, here are some great ways to get started. By taking just a few minutes each day to follow these steps, you can start growing your Pinterest audience immediately.

Pin new content. Content can come from a variety of sources – blogs, photos, webinars, slides, eBooks, or website screenshots. Make sure the pin description uses your SEO keywords and that the pin links back to the appropriate page on your main website to encourage increased website traffic. Pick images that will capture visitors and descriptions that tell a unique story about your business or destination. Try not to pin more than five images within five minutes – think quality over quantity!

Monitor your news feed. Start by following relevant pinners. Some great places to start searching would be a local tourism board, other area tourism businesses, local travel enthusiasts, or industry leaders. Once followed, their pins will show up in your news feed. Re-pin anything useful to your relevant boards.

Engage with other pinners. Search out and comment on pins posted by pinners (relevant to your destination and product) who are not yet following your boards. Reply and/or thank pinners who comment on your pins and boards.

Follow your followers. Discover your new followers and start following them. Aim to follow 5 new Pinners each week. Getting to know your followers is an important part of the process, and can help you refine your strategy for reaching your target audience.

Search for your SEO keywords. By searching for your keywords in Pinterest, you can find new pinners to follow or new material to repin. It’s also a great way to keep a pulse on what’s currently inspiring people about your destination or business.

Promote your Pinterest page. Encourage people to start engaging with you on Pinterest by promoting your page on your other social media channels like Facebook and Twitter.

Place your pins. Pinterest is starting to recognize that their brand is very popular among travelers. Just this week, they introduced Place Pins to help travelers more easily “turn their travel inspiration into reality.” By adding your pins on the map, you’ll help future and current travelers connect with the treasures in your destination.

This blog post is from www.solimarinternational.com/resources-page/blog/itemlist/tag/Social%20Media%20Marketing

Business trendsIntelligenceMarketing 3.0StrategyTourism marketing

Key Takeaways from #SoMeT13US, the Social Media Tourism Symposium

When I moved to Huntsville, Alabama, as a surly teenager in the mid-90s, I never thought I’d be returning 17 years later to attend a professional conference on social media and tourism. Mainly because there was no such thing as social media then and I was largely consumed by door slamming, journal writing, and comic books. And, to be honest, I thought Huntsville was a drag.

Things have changed. Huntsville’s CVB proved that Rocket City USA has legitimate tourism cred and serious social media chops.

The Social Media Tourism Symposium, referred to as #SoMeT in both Twitter and spoken parlance (soh-mee-tee), is an annual conference hosted by Think! Social Media that brings together the best and brightest tourism marketers. Each year, the conference’s location is crowd sourced online. The perspective attendees vote in a bracket-style competition for which destination is best suited to host the pack of social media nerds and tourism geeks. Huntsville triumphed over much larger and more convention-y places like Indianapolis, Cleveland, and St. Pete’s.

Huntsville’s process to win #SoMeT13US became a case study used throughout #SoMeT13US to highlight new trends at the intersection of social media and tourism. It was really inspiring. Here are a couple themes that emerged from #SoMeT13US and Huntsville’s selection as host that were especially relevant.

1. The DMO is dead. All hail the DMO.

Destination marketing alone is not enough. Comprehensive destination management is what’s needed. Hey this sounds familiar! (I’m looking at you DMAI).

As Fred Ranger of Tourisme Montreal put it, “destination marketing has been about brand expression. Destination management is focused on the brand experience.” The visitor’s online experience during their dreaming and planning phase is just as important as their offline experience when they arrive – and the DMO/CVB has a critical role to play. In Huntsville’s quest to land #SoMeT13US they blasted their social networks with calls-to-action. But it was their offline work that pushed them over the finish line: they deployed street teams to educate and engage locals and visitors and posted signs in highly-trafficked areas. The campaign might have been born on Facebook and Twitter, but it lived and thrived with real-life people-to-people contact. This took work and planning and investment and it wasn’t easy, but it was successful.

2. Less Volume, Better Engagement

We’ve come to a beautiful time as social media marketers where we can focus on quality not quantity.

I presented a case study of our work in Namibia where we realized very quickly that our destination was highly specialized and creating a huge online community was not in the cards. And that was okay. Because, the people that are attracted to Namibia are the super-enthusiastic people that are social media dreams. The online community growth has started to slow, but the level of engagement continues to get deeper and deeper. We’re able to get to know our community and give them the kind of content that they’re looking for – the kind of content they want to own and share with their networks. We also know that these folks are the ones who return time and time again to Namibia and try to get their friends to come along. We can use our social platforms to communicate directly to the dune hikers, the rhino lovers, the extreme photographers. We’re not trying to create campaigns for Johnny McCarnivalCruise or Sarah O’AllInclusive. We want to speak directly to Namibia’s biggest fans and give them every possible reason to book a trip.

Mack Collier thinks you should probably be more like Taylor Swift. Or Johnny Cash. Or Lady Gaga. Basically, any kind of “rock star” – because they understand the importance of developing real connection with their fans. Incentives for the “superfans” doubles down on engagement and creates newsworthy opportunities to re-connect with casual participants.

Fred Ranger also spoke about how typical ROI should be replaced with RQE – return on the quality of engagement. Reporting on the number of Facebook fans, Twitter followers, are good… but are you actually creating brand interest and  attracting visitors to your destination? Measuring this is easier said then done, but it’s getting better. And if social media wants to start justifying the same kind of cash that traditional tourism marketing is pulling – then we need to think about conversions.

3. If Content is King, then… this Metaphor is Hard. Be Smart with Your Content.

So, how dow we create conversions? My delicate vocabulary sensibilities were assaulted when Tom Martin threw “propinquity” at me all willy-nilly. If you consult your SAT vocabulary flash cards, you’ll be reminded that propinquity means proximity and similarity. As tourism marketers, we can get lost in inspiration. The idea is that your main content piece – be it a video or blog post – should be complimented with actionable, related content. Someone is really digging a post on your new bike trails? Give them a call-to-action to book a bike tour.

This idea isn’t new: think the popup boxes on YouTube or Amazon’s “You Might Also Like” feature. This inbound marketing strategy is an important component of successful tourism websites and new flexible website designs means there’s no excuse to turn your destination site into an opportunity for sales.

Inbound marketing is content driven. Many of us create content calendars that include hundreds of individual posts – all with an active shelf life of a couple of days. We come up with ideas and then distribute them. Tom waves his finger at us. Tsk Tsk.  “Every content piece should be re-purposed at least three times.” Invert your content creation strategy: think first about all the places the content live (affinity blogs, media placements, newsletters) and then build your content from the ground up. Once the main piece has been create, disassemble and distribute.

4. This isn’t Easy.

Peppered throughout the successes, were plenty of stories of failures. Sometimes ideas that are hammered out in a conference room, that seem perfectly logical, fall flat. Social media is people driven and people – jeez – they can be fickle. Platforms can change on a dime (I’m looking at you Foursquare badges), what you ask your community to do can be two clicks too onerous, and sometimes – something more shiny pops up somewhere else. Playing it safe doesn’t work – it’s important to take risks and try something new.

As two novice spacemen from MMGY remind us, “Proceed and Be Bold.”

Check this video in Youtube    https://youtu.be/K9ZPHrnoBXc

Article reposted with permission from www.solimarinternational.com/resources-page/blog/itemlist/tag/Social%20Media%20Marketing

Environmental sustainabilityIntelligenceIntelligence methodsSustainabilityTourism trends

Environmental Indicators in Measuring Tourism Impacts

The task of measuring tourism impacts is often conducted by identifying certain economic indicators, such as the contribution to the Gross Domestic Product (GDP) or the overall employment, and measuring their base before tourism, after a tourism project begins, and monitoring them as the project progresses. Here is an example infographic from the World Travel and Tourism Council (WTTC):

wttc

Source: WTTC

With sustainable tourism development, we aim to manage the consequences of tourism in such a way to maintain a balance between its economic, environmental, and socio-cultural impacts. Therefore, it is important to identify environmental and socio-cultural indicators to measure as well.

Throughout the coming paragraphs there is a list of possible indicators that you can use in evaluating and measuring tourism impacts particularly environmental ones. Although this list is not comprehensive, these indicators are the most commonly used and can guide you in your initial tourism planning.

Effect on Air, Water, and Soil Quality

Tourism relies heavily on natural resources, so its impact on the environment is crucial when measuring tourism impacts. Ideally, tourism should be able to improve the quality of air, water, and soil in a destination. Some example questions to consider when measuring this indicator:

  • Has tourism been able to maintain the quality of water in the destination?
  • In places that promote pristine and endless strips of beaches, how clear is the water from coliform bacteria contamination?
  • Is there sufficient drinking water for the communities in the destination?

Sometimes, tourism businesses use up most of the water in a local area because of the needs of the tourists, such as providing showers in hotels. This transfers resources from the locals to the tourists and sustainable tourism developers should be wary of this.

Effect on Conservation Goals

When measuring tourism impacts on conservation, use these guide questions to help you:

  • Is tourism helping in protecting wildlife and other environmental resources?
  • Has the number of endangered species increased or decreased?
  • Does tourism support forest regeneration and marine conservation?

Effect on Waste

Many tourist establishments generate a relatively higher volume of waste compared to the locals’ waste. Well-implemented waste management strategies are crucial to prevent negative impacts on the environment such as high levels of dangerous bacteria. Consider:

  • How much solid waste is generated by tourism?
  • Is there a proper waste management system to prevent negative environmental impacts?
  • What is the ratio of the tourism establishments waste compared to the locals?

Measuring tourism impacts using these environmental indicators is helpful in sustainable tourism planning as a guide in designing strategies to achieve the positive side of these indicators. Of course, your indicators will need to be customized to your destination.

This blog post is from www.solimarinternational.com/resources-page/blog/itemlist/tag/Measuring%20Tourism%20Impacts

Business trendsIntelligenceMarketing 3.0SustainabilityTourism trends

The Economic Impact of Tourism Development

What’s the world’s number one export? No, it’s not oil, food, or electronics.

It’s tourism

Tourism is of tremendous economic importance worldwide. As mentioned above, tourism is a huge sector of both goods and service exports- 6% of goods ($1.4 trillion USD) and 29% of services. Tourism jobs also represent one in eleven jobs globally, and the industry comprises 9% of global GDP, according to the World Tourism Organization (UNWTO). The World Travel and Tourism Council (WTTC) finds that tourism generates 4.4% of total investment globally.

why tourism matters

In numerous economic sectors; including accommodations, food and beverage, retail, recreation, entertainment, and transportation; tourism has both direct and indirect effects on production, jobs, wages, and taxes (according to Tourism Economics). By increasing the tourism in a region, economic development and growth can be spurred. More tourists mean more demand, more jobs, and more revenue, including tax revenue for local and national governments.

According to the U.S. Travel Association, tourism in the U.S. alone generated $2.1 trillion USD in economic impact with $887.9 billion in direct spending and an additional $1.2 in industries indirectly affected. This accounts to $28,154 spent per second in the U.S. by domestic and international travelers. The tourism industry is one of the top employers in the U.S. supporting 14.9 million jobs and generating $209.5 billion in wages for employees directly in the travel industry.

While tourism and travel are clearly important globally, they are critical industries for much of the developing world. Tourism is the leading export in over half of least developed countries (LDCs). Some of the most unique tourist attractions, such as indigenous culture and nature reserves, are located in rural areas- where poverty is often greatest. In this, tourism offers the potential to create jobs where they are most needed and to reduce migration to urban areas.

In 1950, there were 25 million international tourists. This number has skyrocketed since, climbing to 1087 million last year. The UNWTO predicts that this number will only continue to climb with an anticipated 3.3% annual increase from 2010 to 2030, to reach 1.8 billion in 2030. Of these, the UNWTO expects that tourist arrivals in emerging destinations will increase at twice the rate of destinations in advanced countries, 4.4% growth per year as compared to 2.2% per year. The greatest demand comes from China with 2013 travel spending equaling USD $129 billion- and this market is expected to continue growing.

This blog post is from www.solimarinternational.com/resources-page/blog/itemlist/tag/Measuring%20Tourism%20Impacts

Business trendsMarketing 3.0storytellingTourism marketingTourism trends

What is Pervasive Entertainment?

Pervasive entertainment is entertainment untethered and unencumbered by time, location and reality. For those who like equations, here’s one:

Pervasive entertainment = ubiquitous media + participatory experience + real world + good storytelling

Pervasive entertainment may start with single-media – fictional story in a book or a true story in a TV documentary – yet will then spiral outwards to encompass more media platforms, more audience participation and more touchpoints (touchpoint = online and real world places where audiences come in contact with the entertainment).

Pervasive entertainment becomes a living, breathing entertainment experience that continues without you – evolving, morphing, refining, improving, growing – even when you’re not watching. But the story has you hooked. The evolution of the experience has you hooked.

You know that if you turn on your mobile device they’ll be another piece of content to grip you further; to drive you deeper. Soon you’ll become addicted; crazy for another fix: a tweet, an email, a video, a puzzle, a PDF, a link, a blog comment…

…and when the content doesn’t arrive you’ll create it yourself. You’ll feed someone else’s addiction.

Pervasive entertainment blurs the line between real-world and fictional world; between work time and play time; between author-directed plot and audience-improvised role-play.

Pervasive entertainment is transmedia storytelling evolved

This blog post is from http://www.tstoryteller.com/what-is-pervasive-entertainment

Collaborative business modelsMarketing 3.0StrategyTourism trends

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 blog post is from  http://www.visionesdelturismo.es/turismo-colaborativo/

 

Marketing 3.0Tourism marketingTourism trends

Tomorrow’s DMOs Must Become Brand Managers

This article is written by Bill Baker, Chief Strategist at Total Destination Marketing, author, speaker, and blogger at “Small City Branding around the world”

It seems that every other day I see more evidence that the role of destination marketing organizations (DMOs) is under greater threats and challenges than ever before. The diminishing role of print and broadcast advertising, the ready availability of new sources of unbiased destination information and new distribution systems all challenge DMOs to redefine the value that they add for their community. They must not only adjust to reduced budgets, but also avoid the ongoing technological and consumer behavior changes that are totally reshaping the game. Added to that, there are now previously unseen competitors and alternatives that threaten to replace them. Never before has the relevance and role of DMOs been as hotly debated.

It’s not hard to find DMOs that have had their budgets decimated or even worse are closing their doors. In most cases, this is extremely short-termed thinking where the objective has been to balance the City’s bottom line because of shortfalls in taxes and revenue. Cities that are serious about economic development and tourism, and the long term prosperity and growth of their communities need their DMO and the stellar reputation for their city like never before. However, in this environment DMOs must adjust their focus, role and the way that they operate. Specifically, they must become brand managers on behalf of their cities.

These challenges have been addressed by DMAI in its excellent DestinationNEXT Report which provides an important strategic roadmap for DMOs to succeed in the future. The Report reveals three transformational opportunities that DMO have to effectively address in this rapidly changing world. These transformational opportunities are:

  1. Dealing with the new marketplace
  2. Building and protecting the destination brand
  3. Evolving the DMO business model

Recommending that DMOs become brand managers by building and protecting their brand is not new to the TDM team. We have been advocating this for more than a decade.

This post is from http://citybranding.typepad.com/