Category: Collaborative business models

Case studies and visions on how to shape collaborative models and partnerships, envisioning its benefits

Collaborative business modelsCollaborative cultureCulture changeMarketing 3.0

Building a culture of collaboration: key success factors

In the case of destinations willing to embrace the principles of Tourism 3.0, the main behaviors to foster within the culture change effort are collaboration, innovation, and engagement.

Recent research in psychology, sociology, and experimental economics suggests that people behave far more cooperatively than it is usually assumed. During experiments on cooperative behavior, only 30% behave selfishly, whereas 50% systematically and predictably behave cooperatively. Some of them cooperate conditionally, treating others in the same manner as they are treated, but there is never a majority of people consistently behaving selfishly.

Further, Neuroscience also shows that a reward circuit is triggered in our brains when we cooperate with one another, and that provides a scientific basis for saying that at least some people want to cooperate, given a choice, because it feels good.

These findings suggest that instead of controlling and setting individual achievement based incentives to motivate people, companies should use systems that rely on engagement and a sense of common purpose. Several levers can help executives build cooperative systems: encouraging communication, ensuring authentic framing, fostering empathy and solidarity, guaranteeing fairness and morality, using rewards and punishments that appeal to intrinsic motivations, relying on reputation and reciprocity, and ensuring flexibility.

The majority of human beings are more willing to be cooperative, trustworthy, and generous than the dominant model has permitted us to assume. If we recognize that, we can build efficient systems by relying on our better selves rather than optimizing for our worst.

Based upon these assumptions, destinations 3.0 can easily build a culture of collaboration by:

  • Inspiring them with a vision of change that is beyond their individual capacity to bring about
  • Convincing them that the other collaborators are necessary to overcome the challenge
  • Preventing any participant from benefiting unfairly from others’ efforts, balancing the rewards
  • Cultivating good relationships among participants through informal gatherings and activities

The success of a collaborative community requires four organizational efforts:

  • Defining and building a shared purpose articulates how the group sets itself apart from competitors and the value it intends to bring to its customers and the society. This should be agreed upon consultation of members to ensure that they all feel involved in it.
  • Cultivating an ethic of contribution is about fostering a set of values that rewards people who prioritize the advance towards the common purpose over their own.
  • Developing processes that enable people to work together in flexible but disciplined projects. Protocols should be written and revised with the contribution of people involved in the task.
  • Creating an infrastructure in which collaboration is valued and rewarded, a platform that centralizes all generated knowledge applicable to various projects, where it is possible to assess everybody’s contribution, working as reputation scorecard to reward contributors.

These organizational efforts into results, it is essential to provide a framework for collaboration allowing the connection between people based on what they know and in the context of the innovation challenges at hand. This also means giving employees tools to rapidly identify subject matter experts.

According to Harvard, there are 7 key factors to create a successful cooperative system:

  • Communication is an essential component for collaboration, so the system should facilitate communication among participants by all possible means.
  • Framing and authenticity. Framing a collaborative practice will help in engaging the participants at the beginning, but it will require authenticity to keep them committed.
  • Empathy and solidarity. As long as we feel socially linked to our community, we are more likely to cooperate sacrificing our interest for the group’s benefit.
  • Fairness and morality. People want to engage in what is morally correct, for which the main set of values should be defined.
  • Rewards and penalties. Incentive systems should be aligned with the inner motivations of participants rather than material rewards only. It should be social, rewarding and fun.
  • Reputation and reciprocity. A very powerful motivator is the expectation for reciprocity, which however may lead to corruption. Reputation is the best tool to avoid corruption.
  • Diversity. Cooperative systems need to consider motivation drivers other than money. So long as innovators have various motivations, incentive systems should integrate such variety.

The key factors for success in building a culture of collaboration are to be further developed in another upcoming blogpost, based on collaborative leadership.

This article is from the Whitepaper “Building a culture of collaboration and innovation” written by Jordi Pera, Founder and CEO at Envisioning Tourism 3.0 Ltd. You may download for free the full Whitepaper at www.envisioningtourism.com/whitepapers

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/

 

Business trendsCollaborative business modelsCollaborative cultureEnvironmental sustainabilityMarketing 3.0

Why Do We Need Public–Private Partnerships in Sustainable Tourism?

What is a Public Private Partnership and Why Is It Important?

In sustainable tourism development projects, there are inherently multiple goals in which an array of parties maintains interest. From tour operators to local governments and communities, these stakeholders all have expected outcomes for tourism development. In order to properly represent these interests and create mutually beneficial outcomes, public–private partnerships are essential to a great tourism strategy. The most important piece of this puzzle is maintaining strong relationships and a clear understanding of divergent yet symbiotic objectives.

It is convenient to maintain strong relationships with a wide range of actors in the tourism sector, which is vital to the negotiation of these partnerships. These partnerships leverage financial and technical expertise and promotional benefits from private and government partners in exchange for improvement in stakeholder relations, marketing, and improved product and service delivery. Increased sales revenue and jobs, improved visitor experiences, alternative incomes for local communities, decreased levels of conservation threats in areas of high biodiversity, diversified production and increased production for small farms, and overall improvement of sustainability of destinations have all been marked results of these arrangements.

Public–Private Partnerships in Geotourism Programs

At the onset of each program, a destination Geotourism Stewardship Council is organized, made up of a variety of stakeholders, including communities, non profits, businesses, and governments representing the interests of the natural, cultural, scenic, and historic features of the destination. This group then works with the consultants to develop the regional tourism strategy, defining the vision, goals, timeline, and objectives of the project. The Stewardship Council also plays a key role in implementing the strategy by meeting regularly to generate local nominations, review the information and materials created, and utilize the products established to sustain and promote the destination.

Public–Private Partnerships in Conservation

Another area of tourism that benefits from strategic public–private partnerships is conservation. In areas of high and rare biodiversity, there can be built partnerships between a number of public and private stakeholders, including protected area authorities, government bodies, conservation NGOs, the local tourism private sector, and communities living around the area. Generally categorized as Protected Area Alliances, these groups, similar to the Geotourism Stewardship Councils, play a key role in the development of the tourism strategy as well as its implementation. The alliances continue after the initial implementation of the program, allowing the community to continue supporting and sustaining the protected area. Through these partnerships, multiple goals and interests can be achieved, such as increased protection for the environment, increased revenue for the tourism sector, and increased economic opportunities for the local governments and communities.

Public–private partnerships are essential to sustainable tourism development, as they allow stakeholders across the globe to participate in the development of tourism strategy, communicate and achieve their goals and interests, and successfully implement tourism programs, all while collaborating to achieve a common goal.

This blog post is from www.solimarinternational.com/resources-page/blog/itemlist/tag/Geotourism%20Program%20with%20National%20Geographic

Co-creationCollaborative business modelsCollaborative cultureMarketing 3.0Tourism marketing

How to Involve Locals in Destination Management & Marketing

In today’s tourism marketing world, all buzz is around discovering a destination like a local. If you search for “travel like a local,” you will find countless articles and websites trying to help travelers discover destinations through a different perspective. As an avid traveler that loves to escape tourist traps, I appreciate destination marketing organizations trying to help me connect with recommendations from people who live in the destinations I want to visit.

I think this is why Airbnb.com and the sharing economy are taking off, not just because it provides a different type of accommodation, but because it connects visitors with locals. One of the benefits of staying at an Airbnb.com property is the ability to meet a local to give you recommendations for what to do, where to eat, and how to experience the destination away from the hop-on, hop-off tour buses. Who doesn’t want this type of local knowledge when planning a trip to an unknown destination?

The challenge for destination marketing organizations is how do you get locals involved and willing to share their recommendations with visitors? Destinations like Philadelphia, are launching programs called “Philly like a local” – Experience Philadelphia as its residents know and love it,” which recruits locals to take over the DMO’s social media accounts. But taking that approach to scale and getting hundreds or thousands of locals involved in a program to answer the question “What is so special about my place?” is not an easy task……unless you have the National Geographic Society on your side.

We have been very fortunate to work alongside National Geographic for the last 7 years helping destinations apply an approach to sustainable tourism development called Geotourism. A concept created by Jonathan Tourtellot, geotourism encourages destinations to develop and market tourism products that sustain and enhance the geographical character of a place—its environment, culture, geology, aesthetics, heritage, and the well-being of its residents.

The Geotourism approach is unique among tourism development solutions due to its focus on the establishment and empowerment of a private-public partnership that serves as a forum for dialogue, collaboration, and planning among local businesses, non-profit organizations, residents and tourism authorities. The goal is to better manage challenges through cooperation while also identifying, sustaining, enhancing, and promoting the destination’s unique assets.

As a tourism development and marketing professional working in the field for more than a decade, I can tell you that bringing stakeholders together to participate in a tourism development and marketing program is hard work. Every one of our projects involves some type of stakeholder engagement process to plan and implement destination and marketing programs, but getting government, businesses, and residents to come together for a meeting or complete a task is extremely difficult.

This all changes when National Geographic is part of the program. The power of that yellow logo is incredible. People all over the world admire the brand immensely and jump at the opportunity to collaborate with such an respected organization. With the mission of inspiring people to care about the planet, they are extremely effective at getting locals engaged in caring for their destinations.

James Dion leader of the Geotourism program, kicks off every project with a public launch announcing the program. This brings together businesses, politicians, residents, and media to learn about the program and how they can be involved. After the public launch event, local residents are encouraged to visit a National Geographic co-branded website to nominate a business, place, attraction, or event that is an authentically local experience. This event and program generates incredible media attention at a local level, helping further distribute the call for participation from locals.

We are currently in production of a U.S. Gulf States Geotourism program supported by national, state, and local partners to raise awareness of the unique cultural and environmental experiences in Louisiana, Mississippi, Alabama, and the panhandle of Florida. We are working to rebuild the area’s allure following the 2010 Gulf of Mexico Deepwater Horizon oil spill that caused a devastating economic impact on the region.

Through local events and media outreach led by our local consultants, the program is generating incredible media coverage, which in turn has inspired over 1,000 nominations (and counting!) from locals for the Geotourism MapGuide. Once the nomination period closes, National Geographic’s team of cartographers, editors, fact checkers, and designers will work with the local public-private partnerships created at the beginning of the program to finalize the MapGuide and prepare for a public roll-out.

In summary, getting locals involved in destination marketing and management is not only a wise approach to ensuring a destination maintains it’s sense of place, but it also is a great way to help visitors discover the hidden gems of your destination. Here is some of the most recent media attention generated from the U.S. Gulf States Geotourism program. It’s just one great example of how the program effectively brings people together and generates immediate excitement.

Alabama to be part of National Geographic geotourism project – Your Town Alabama

Residents encouraged to nominate areas for geotourism – The Selma Times-Journal

What’s special about Columbus? Nominate your pick for National Geographic map – The Dispatch

National Geographic launching locally built travel guides in BP oil spill states – The Time Picayune

Louisiana selected as part of National Geographic’s Geotourism interactive map – WAFB News

Let National Geographic help you – Natchez Democrat

Your authentic Florida location belongs in Nat Geo’s geotourism guide – Visit Florida

Alabama Gulf Coast site nominations sought for Geotourism MapGuide – AL.com

Massive geotourism project underway in U.S. Gulf Coast States – Destination Stewardship Center

This blog post is from www.solimarinternational.com/resources-page/blog/itemlist/tag/Destination%20Management?start=10

Collaborative business modelsCollaborative cultureMarketing 3.0Strategy

For Smart Cities, to collaborate is the smartest thing to do

According to a United Nations report, 70% of the world’s population is expected to be living in cities by 2050. This is why overcoming many of today’s humankind challenges in areas such energy, water, food, climate change, health, etc.  will depend mainly on the success of the so called Smart Cities strategies. But as urgent we consider the implementation of smarter cities, making it really happen still remains a challenge several years after the concept was first coined.

As in many other cases, we think too collaboration should be a key factor implementing a truly transformative Smart City strategy. Considering the broad and diverse kind of stakeholders, expertise, knowledge, technologies, etc. needed for an average Smart City project, it is difficult to imagine any that does not require the commitment and dedication of a collective team.

The idea of a Smart City promises to improve municipal operations and the health and safety of citizens. New models of cooperation and engagement will make a tangible difference for this promise to move to a reality. These are just few of the many possible…

Organizational changes in local administrations

City managers are main actors on the potential gains of properly implementing Smart City initiatives. But many of the challenges they confront in order to achieve efficient outcomes of such initiatives still lie on the way city government is structured. As it happens in many other organizations, many departments and units in city councils are operated in isolation without any or little consideration of other departments. Add to that, an extra layer of red tape and special sensibility about the immutability of roles and positions that sadly are still typical of public government organizations.

But despite these cultural and organizational barriers, when projects need to address such variety of issues as, for instance, transportation systems, law enforcement, community services, water supply networks or waste management, some Smart City projects have become the driver for cultural changes and shifting attitudes that seemed impossible so far.

Sharing experiences and knowledge

“Lessons learned” are an important asset in competitive markets in which proprietary Know How can be easily turned into a competitive advantage. But it does not make much sense for cities to compete with other cities to be smarter, especially in the case of cities at the same continent and in projects funded by the same supranational organization.

Knowledge exchange and transfer is a crucial element of many of the projects funded by the European Union. The GrowSmarter project is one of the most important bets of the European Commission for the smart development of urban areas, and represents one of the only three projects that the Commission has financed under the umbrella of the “Lighthouse”. GrowSmarter brings together cities and industry to integrate and demonstrate ‘12 smart city solutions’ in energy, infrastructure and transport.

Key for the project is the concept of “Lighthouse Cities”, as the 12 smart solutions are being rolled out in designated sites in three cities: Stockholm, Cologne and Barcelona – including industrial areas, suburban and downtown districts, ensuring a sample base representative of many European cities. The idea is for these three “Lighthouses Cities” to show how ‘smart’ can work in practice documenting their journey with regular news updates. This way, the project specifically aims to provide other cities with valuable insights on how the smart solutions work in practice and the opportunities for replication, creating a butterfly effect.

GrowSmarter even considers the existence of five “follower cities” (Cork, Graz, Malta, Porto and Suceava) which role is to work closely with those “Lighthouses Cities” to learn from their experiences.  The three Lighthouse Cities will each host a number of study visits and European workshops, providing opportunities to see first-hand technological application of the smart solutions.

Sharing Standards

The performance of a city is intimately linked to its physical and communications infrastructures and the delivery of resources through these infrastructures. At present, the delivery of city services tend to operate in isolation from each other, in silos of activities, governance and information. But new digital infrastructures offer the potential of increased service integration that could ultimately result in services provision cost reduction, natural resource savings and efficiency gains for cities and their inhabitants.

Standards are required in order to accommodate such integration of data. But smart city implementations tend to focus on specific cities or services rather than multiple locations and services. This individual focus in the main cause of the lack of standards across the market. Many organizations and analyst, including the International Organization for Standardization (ISO), advocate the development and generalization of international standards for smart cities.

In UK, the Department for Business, Innovation and Skills commissioned the British Standards Institution to develop a standards strategy for Smart Cities in the county. The strategy identifies the role of standards in accelerating the implementation of Smart Cities. As part of this strategy the Cities Standards Institute is a joint initiative of the British Standards Institution and the Future Cities Catapult bringing together cities and key industry leaders and innovators to work together in identifying the challenges facing cities, providing solutions to common problems and defining the future of smart city standards.

By developing a coherent set of standards that addresses key market barriers, smart city products and services become easier to be widely accepted. Promoters of the consortium consider than an easier acceptance of these products and services ultimately accelerates the growth of the future cities market, first in the UK and then globally. The Cities Standards Institute is also leading a set of programs to help cities, companies and SMEs to implement standards-based solutions and strategies, and to ensure the uptake of smart city standards regionally and internationally.

This blog post is from www.co-society.com

Collaborative business modelsCollaborative cultureCulture changeMarketing 3.0Tourism marketing

It Takes a Culture of Collaboration to Deliver a Place Brand

We recently conducted a Tourism Assessment Review for a small city that discovered that its tourism performance was declining. This was an attractive small city with an historic downtown that had successfully established a state-wide reputation as a destination for antique shoppers. However, our research soon revealed that in addition to facing increased competition from online antique stores, the city’s antique stores were falling short of the “antiques capital” reputation.

It didn’t take long to realize that antique store owners were disconnected and totally focused on their own businesses, making little or no effort for cooperation and collaboration with other businesses or civic organizations. In fact, most store owners did not speak to each other and simply regarded the others as competitors. It seems that over time stores were sold and new owners came in and rested on their laurels in the belief that the city’s reputation as a favored antiques destination would sustain itself without any effort on their behalf. They didn’t realize that the reputation was created by the totality of antiques-related experiences in downtown.

This assignment carried several lessons for the city’s tourism performance. Firstly, the Internet can be a positive and a negative force for some destinations.  Secondly, sustaining a city’s brand identity, whether it has been formalized in a documented strategy or not, requires a concerted effort to collaborate, innovate and manage the promised visitor experience by everyone associated with the downtown.

Even though a downtown may have attractive architecture and well stocked stores, it’s the attitudes of residents and business owners that determine whether a place has a special sense of place and can elicit a sense of loyalty from visitors.  And once the culture of collaboration is successfully established, there must be a conscious effort to “pass the baton” to the next generation of merchants. As for being competitors, the merchants need look no further than a food court or freeway interchange to see fierce competitors working together to create a bigger “pie” so that they can all get larger slices.

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

Collaborative business modelsCollaborative cultureEnvironmental sustainabilitySustainabilityThird sector and social sustainability

Voluntourism, beyond responsible tourism

Responsible tourism, Voluntourism, Sustainable tourism…are different concepts with a common idea: the tourism activity in which the visitor brings positive impacts to the destination, either to alleviate poverty, to help in the development of the local economy, rebuilding areas affected by natural catastrophe, etc.

With regards to the kind of people interested in these types of tourism activities, they are not all moved by the same motivations and goals. The visitor travels either passively (holiday trip + sightseeing), actively (holiday trip + volunteering) or as a volunteer (volunteering trip).

Nowadays, Latin America and Asia are the continents offering most of these programs. There are both outbound and incoming travel agencies specialized in this type of tourism, and some tour operators have developed business units based on responsible tourism, whereas in Africa volunteering holiday programs are more popular than responsible tourism programs.

Also in Eastern Europe some countries are discovering in this type of tourism a new source of revenue for its poorest regions. Other Western countries such as the USA, Germany, France, Spain or Italy have also included strategies for the development of volunteering tourism products in their tourism development plans.

These type of holiday programs let the visitor truly discover the local culture, staying in local homes or accommodation facilities managed by locals, visiting the destination and cooperating in different social projects. Some examples may be:

  • Helping in building homes for refugees or in the poorest areas of the destination
  • Working as a teacher in primary schools or supporting in sport camps for children
  • Cooperating with an NGO dealing with the victims of a natural catastrophe
  • Participating in an ecotourism program where to work in the preservation of the environment

Some portals like Xmigrations.com work as a search engine for activities and accommodation where you may find nature, sport and spiritual activities in places where you can work in exchange for a free stay.

http://www.visionesdelturismo.es/turismo-solidario-y-volunturismo/

Business model innovationCollaborative business modelsCollaborative cultureInnovationTourism trends

Dinner at my home? It’s 30 Euros

What is a SMART destination? These may be defined in many ways. They are destinations that think and advance strategically, improving competitiveness and searching positioning through effectiveness. Becoming a SMART is no more than a strategy to enhance the destination value by leveraging both the cultural and natural heritage, developing innovative resources, improving the efficiency in the production processes and the distribution, which finally propels the sustainable development. This transformation generates positive effects in all sub-sectors such as energy, health services, security, culture, etc. thanks to the cross-destination impact of the tourism activity.

The key concepts that set SMART destinations apart from conventional ones are accessibility, innovation, technology and sustainability. Among these concepts, new technologies are the ones which are more likely to be perceived by the tourist, namely mobile applications, augmented reality and everything related to data smart management.

There are 4 key concepts upon which Smart destinations are developed:

  • Technology/Big Data
    • Innovation
    • Sustainability: social, economic, cultural and environmental
    • Accessibility

The development of the SMART concept in destinations consists mainly in working to attain a higher profitability in the daily exploitation of the resources. This is to be achieved by engaging both the local community and the tourists in order to enhance interaction between them. There are already some examples of Smart destinations, such as El Hierro island in the Canary Archipelago. Some of its main achievements are the energetic self-sufficiency and the pollution reduction, which have been achieved through actions such as:

  • Waste converted into energy
  • Environment camouflage of telecom and energy facilities and equipment (solar panels, antenna, etc.) within the landscape.
  • Reduction of the visual impact in the buildings and facilities construction, by using local volcanic stone instead of bricks.
  • It has gained awareness and branding by sharing and marketing its experiences in the social networks.

Other actions carried out in SMART destinations encompass:

  • Mobile Applications
  • Tourism Intelligence System, including data transportation and information Smart management, which altogether turn the destination into a SMART destination.
  • Smart office; a common working place where to unify processes which produces a work synergy and allows sense and common methodology guidelines in the transformation towards an intelligent city.
  • Beaches with free wifi

It is important to mention Singapore Smart City, which is on the way to become the first SMART nation worldwide. The country is working on its Master Plan for the next 10 years, which will be focused on the development of smart communities propelled by integration and innovation.

This blogpost is based on http://www.visionesdelturismo.es/smart-destinations/

Business model innovationCollaborative business modelsInnovationTourism trends

Guides that are not guides

As has happened with the accommodation business, namely with Airbnb, the collaborative platform business model is also developing in the tourist guides business. I have personally experienced one of these platform’s services in the city of Prague.

Thanks to these platforms it is no longer strange that the tourists are offered free guided tours in great urban destinations, without any trick. In my case, I used the services of Sandeman’s New Europe, which is already present in 18 cities. At the beginning of the tour, the guide explained that his income comes from tips, and so it was not mandatory to pay even 1 Euro.

The tour lasted more than 3 hours and it was really entertaining, with good quality content. The guide was brilliant and received quite a lot of tips. But, attracted by the quality of this Guided tour, the day after I did another one, but paying. This business works actually like a freemium model.  In fact, there are many more businesses offering free guided tours in Prague. And they have their rivalry moves, like guerrilla marketing actions, competing for the best locations, etc.

But this new fashion not only takes place in the large cities. The Greeters movement is emerging also in smaller cities, like Bilbao. The first company operating this business model in Bilbao is actually called Bilbao Greeters, and is part of the international network Global Greeters Network. The Greeters are locals offering guided tours with the authenticity of a local resident’s knowledge and perspective, who knows the traditions, habits and secrets beyond the usual tourist information available. In the Basque Country the Tourist Guides are not regulated, and so there cannot be any conflict in this case. Unlike in the previous case of “New Europe”, the Greeters are not professional guides and do not accept tips.  However, to make a booking you need to be registered as partner, which costs 12€ per year.

Finally, there are many online platforms allowing people to offer their tourist services worldwide. Besides platforms such as Vayable, Viator or Isango, marketing all kind of experiences –from guided tours to cooking lessons-, there are many others offering guided visits by the destination’s residents.

Local Guiding is a platform oriented to “changing the way people travel, experiencing the local life as it is, not like the conventional tourism agencies pretend it to be”. They are already offering guided tours in more than 20 Spanish destinations.

Tours by locals are the veterans in this sector, as they have been operating since 2008 from their headquarters in Vancouver. They nowadays offer guided tours in many countries worldwide.

Like a local is the concept developed through a mobile application. Destination residents contribute to editing the local guide with recommendations, advice, routes, etc. and obtain revenue from the application’s management firm.

Finally, there is the Spanish portal called Ciceroner , promising to offer “unique and personal experiences, the only ones that can be really different and memorable”. It is still in Beta development phase, but it already offers a considerable amount of products in many destinations. It gives the option to gift the guided tours just like Smartbox and many others, but promising a superior experiential value.

As we can see, it is an emergent business model, with many suppliers and intermediaries operating in the market. However, this new fashion business model arouses many questions:

  • Is it just a fashion or a new reality?
  • Are these services for specific segments or for all types of visitors?
  • Is it necessary to further regulate this type of businesses to ensure a fair competition with the traditional models, or should they be given free regin instead?
  • Are these new models going to operate in urban destinations only, or they are likely to operate in beach destinations traditionally dominated by tour-operators?
  • Do these business models affect somehow the destinations’ image? Should the DMOs do something to get some profit from it or to manage it for branding purposes?

I invite you to reflect upon these questions, and encourage you to give your opinion

This blogpost is from http://www.visionesdelturismo.es/guias-que-no-son-guias/

Business model innovationCollaborative business modelsInnovationMarketing 3.0Strategy

The innovation challenge in destinations

Research and innovation will have a fundamental role in the competitive improvement of destinations. Any policy for the destination development has to include a vision and an innovative orientation that brings some sort of competitive advantage.

In the Spanish economy, the tourism industry has proved to be one of the most dynamic sectors, which generates multiplying effects in the local economies in all sub-sectors directly and indirectly related to tourism. This multiplying effect together with the sector’s evolution worldwide has contributed decisively to increase competition, which in turn makes the industry develop strategies oriented towards the improvement of its competitiveness.

The new market after the changes in the offer and demand, requires tailored services and activities, with high quality standards, which makes attaining customer satisfaction more difficult than ever before. In this regard, tourism offer has to be organized according to the targeted market segments requirements in order to be successful. Unlike in past times, market penetration, promotion, price setting, product quality and quantity are variables defined by the demand and not by the offer, for it is necessary that the service and activity production in the tourism sector takes into consideration this new scenario, and so new destination models restructuring the links and relationships between stakeholders are being developed.

In any case, research and innovation will have a fundamental role in the destination’s competitiveness improvement. Any action for the successful development of the destination has to include a vision and an innovative orientation that can generate some kind of competitive advantage. The main challenges to foster competitiveness in destinations are the following:

Innovate in mechanisms and cooperation formulas and strategic partnerships. It is basic to develop mechanisms that work both from the public and the private scope, to boost new cooperation models between businesses and public-private partnership, as a way to gain profitability, dimension and commitment in the development of the tourist sector.

Innovate to improve the sector’s competitiveness. There should be techniques and strategies to improve the business and the destination’s competitiveness. This includes the development of Innovation Plans for the improvement of business models, management models, service processes and the destination’s business marketing.

Innovate for the introduction of new tourism products and consolidating the profitability of the current ones. It will be necessary to foster the creation of unique tourism products based on new business models, build upon the capacities and unique resources of the destination, with a high experiential value, using the ICT and being socially and environmentally friendly.

Leverage the resources and hidden heritage. It is crucial to develop new formulas for leveraging tourism resources that are complementary to the traditional ones, unknown or unexploited, so as to achieve the profitable consolidation so long as they create an outstanding experience and expand the revenue streams.

Innovate in destination’s promotion and communication formulas. There is nowadays a communicational saturation, which makes it necessary to face the future with promotion innovative mechanisms which allow optimization of the destination’s visibility.

Innovate in tourism product marketing. There will have to be developed new methods and tools to market tourism products, in order to favor the sector’s competitive improvement and control the dependence on external channels, in a way that guarantees some influence power. In this context, it is fundamental to develop strategies to improve the intelligence and the knowledge of the products and its results, and the client and its consuming habits.

Innovate in client relationship formulas. The strategy will have to develop new client management formulas. Starting up innovative mechanisms to do CRM is vitally important not only to retain clients, but also to achieve a more effective marketing.

This blogpost is from http://www.visionesdelturismo.es/innovacion-de-los-destinos-turisticos/