Business model innovationCollaborative business models

Destination Models 3.0: shaping the new generation of destination business models (II)

From the operational perspective, the platform has a group of core businesses and resources fully integrated –whose owners become platform shareholders or sell them to the platform-, and a group of businesses which may choose among several flexible integration formulas to become part of the platform, whose owners may keep control of their business and have the right to change their integration status upon complying with specified conditions.

Therefore, the small local suppliers (such as restaurants, accommodation, activity organizers) operate autonomously within the platform, taking advantage of the increased attractiveness of the destination due to the story-based marketing, the platform’s services and support in providing a higher-standard customer experience, and the aforementioned advantages of leveraging the collective intelligence. In exchange, they have to comply with the obligations established according to their chosen integration formula within the platform -see section 3 about integrating stakeholders-, which would mainly consist of complying with service quality standards and urban aesthetic guidelines, and contributing to the open innovation system.

In summary, the platform is in charge of several roles:

  • Ensuring that the tourism business is developed in harmony with the cultural and natural heritage.
  • Managing and controlling service quality of all integrated businesses.
  • Directing and managing the open innovation system and its outcomes.
  • Providing facilitation and support to integrating businesses, especially to new entrepreneurs.
  • Managing the incentive system to reward good service quality and contribution to innovation.
  • Managing the bookings of all service businesses through a booking center.
  • Managing the integration of all businesses within the platform.

As a result of the tourism 3.0 development approach, destinations integrate and engage all the local community in the tourism activity, maximizing their collective human potential to develop a vibrant and harmonious destination where visitors come to live authentic life-changing experiences which ultimately address some of the stakeholders’ concerns.

The following sections explain in further detail the structure and operation of destination models 3.0, and the detail of each of the building blocks that depict their rationale. In the upcoming blog posts the main challenges in developing business models 3.0 and their correspondent strategies will be explained.

Do you envision other roles that the platform could or should be in charge of?

Business model innovationCollaborative business modelsInnovationMarketing 3.0Strategy

Destination Models 3.0: shaping the new generation of destination business models (I)

Destination models 3.0 are conceived as collaborative models which intend to leverage the creativity and know-how of all the stakeholder community to gain competitive advantage over their competitors, by developing a large network of brand ambassadors who create and deliver stories about the life-changing experiences that take place in the destination, in order to engage new stakeholders in the pursuit of a mission that addresses the concerns of the destination’s community. They are also triple bottom line models, as they account not only for financial costs and benefits, but also for environmental and social costs and benefits. Usually, the mission encompasses some of these issues:

  • Fostering socio-cultural transformation through the promotion of healthier lifestyles, cross-cultural understanding, mindset shifting in leadership culture, developing mindfulness, etc.
  • Enhancing conservation and promoting the cultural heritage.
  • Protecting the environment through education, innovation and deployment of sustainable practices, and collaboration with partners’ environmental programs.
  • Alleviating poverty through the empowerment of the communities in the base of the pyramid to become micro-entrepreneurs and participate in the tourism business.
  • Unlocking human potential through the empowerment of all stakeholders to participate in the destination’s model innovation system, with the creation of experiences and stories.

The model is a multi-sided platform which creates value by facilitating interactions between tourists and local service suppliers, also attracting many mission driven stakeholders through the network effect. Further, the collaborative business model intends to leverage and engage the collective intelligence by:

  • Creating life-changing experiences which directly or indirectly address the mission issues.
  • Designing and developing marketing contents and materials to brand the destination.
  • Revamping the business model as new challenges and opportunities come along.
  • Sharing resources among the community and developing economies of scale.
  • Leveraging the negotiation power of the community to obtain favorable deals with external suppliers.
  • Providing more professional development opportunities to community members.

Do you envision other issues to be encompassed in the mission? Do you think of other advantages of collaborative models, other outputs of the collective intelligence?

Business model innovationCo-creationMarketing 3.0Open innovationStrategy

Transforming mission driven destinations’ marketing system

Destination marketing 3.0 intends to transform the destination’s marketing system towards a more collaborative and innovative approach empowering all stakeholders to become co-creators and brand ambassadors. In the upcoming blog posts the main components of the Marketing Plan are explained according to the new approach, in order to help the reader envision how Marketing 3.0 changes every aspect of the local destination’s marketing system.

This approach is only applicable to mission driven destinations, like those already oriented towards concepts such as responsible tourism or ecotourism, willing to leverage all the potential of their mission driven purpose to gain more marketing awareness through stakeholder collaboration, new product development and storytelling.

The main trait of the new marketing is that it shifts from vertical to horizontal control, which means consumers are empowered to take the role of brand ambassadors and hence become key players in the brands’ marketing system through their participation in the social networks where they tell stories about their experiences.

Furthermore, Marketing 3.0 considers not only consumers’ functional and emotional needs, but also those related to their human spirit, for values are embedded in the core of the value proposition, promising to deliver positive impacts to the community either in the environmental or socio-cultural sphere through their main business activity, not through philanthropy.

Due to its different nature, a different approach is suggested for Destination Management Organizations (DMO) and Destination Management Companies (DMC) in some sections, as it is mentioned when applicable.

Which do you think are the main challenges of developing these Marketing 3.0 strategies in tourism destinations?

Collaborative cultureCulture changeInnovative culture

The 7 credos of tourism 3.0

In Tourism 3.0, values are embedded in the core of the business models’ value proposition, attaining the maximum integration stage within the corporate strategy. Values are no longer a marketing tool to improve the brand image through philanthropy, but an essential component of the corporate mission. To better understand how values are integrated in the new business model generation, the 7 credos illustrate the values driven principles of Tourism 3.0.

  1. Love your stakeholders to convey mission engagement. The key success factor for accomplishing the mission is to deliver superior value conveying passion and enthusiasm to engage all stakeholders in the mission pursuit, making them brand ambassadors to further expand the network. It is by touching their emotions and human spirit that they are to become engaged with the brand mission.
  2. Become a change agent. Tourism 3.0 is about creating positive change through tourism activities. Such change is to be spread through change agents or leaders who tell stories about how change may be attained and set examples of the attitudes and values –initiative, fairness, generosity, etc. – that create trust and foster cultural change towards collaboration and innovation.
  3. Care about the brand integrity. Unlike in other tourism businesses, Tourism 3.0 places its mission accomplishment above short term profits, which engages stakeholders to deliver value superior to conventional business. Such engagement and motivation is the most valuable intangible asset of the business model, but is also very fragile. Therefore, caring about integrity is critical for success.
  4. Live and work with vision. Tourism 3.0 intends to attain ambitious goals over the long term, which requires patience and vision, resisting temptation of short term profitable alternatives which deviate from the vision and the mission. The vision is the guiding force that drives the stakeholders’ efforts towards the mission accomplishment, and so it has to be present in their daily lives.
  5. Be flexible and understanding. Even if the core of the destination models 3.0 is to be driven by mission oriented stakeholders, it is necessary to understand that not everybody is enthusiastic and passionate about it at least in the beginning. For many people it takes time to become engaged in some purpose that goes beyond their own convenience in the short term, and this is acceptable.
  6. Be ambitious and strive for self-improvement. Tourism destinations 3.0 strive for ambitious missions and goals, and so they need their stakeholders to be ambitious in their efforts in learning and developing new skills to the utmost of their potential, which ultimately benefits the competitiveness of the destination as they manage to improve the value delivered.
  7. Aim for contribution to the greater good. Along with the change agents and leaders, cultural change is fostered so long as individuals think beyond their own interests and focus their efforts and creativity on higher purposes related to community issues and mission accomplishment. Such efforts are to be embraced and rewarded by the open innovation system to nurture further motivation.

According to what you have read so far about Tourism 3.0, do you think there should be any other credo?

Co-creationMarketing 3.0Tourism marketingTourism trends

Approaching tourism 3.0: Destination marketing 3.0

Marketing 3.0 intends to transform the marketing of mission driven destinations towards a more collaborative and innovative system where all stakeholders are empowered to become co-creators and brand ambassadors. By leveraging the inspirational power of mission driven purposes, stakeholders are expected to contribute to the mission accomplishment through the creation or co-creation of stories, experiences and marketing materials.

When drafting a Marketing 3.0 Plan, the mission is the first challenge to be worked out, in cooperation with the local community and other stakeholders to gain their commitment. Further, it has to depict the vision of how the mission accomplishment transforms the destination, what the destination aspires to become. This vision plays the role of a guiding force to engage stakeholders in contributing to the destination development.

In drafting the marketing strategies, the positioning has to be based on the intended impact of the tourism activity on the stakeholder community, for it to be perceived as a positive force in addressing the community’s concerns and aspirations. Ultimately, profit comes from the appreciation of the business contribution to the community well-being. The positioning has to care about the functional, emotional and spiritual needs of the stakeholders.

The communication strategy is based on enabling connectivity and interactivity between stakeholders to satisfy their will to share and spread their stories. Furthermore, the destination platform should train all stakeholders in creating stories and reward them through story contests and reputation management. On the other hand, it is convenient to communicate the evolution of the key performance indicators related to the mission accomplishment to provide feedback on the stakeholders’ efforts.

The product development is based in co-creation of experiences between local suppliers and other stakeholders. In this regard, all the local community members are empowered to create their own experiences through the open innovation system, which are eventually to be customized for every tourist in co-creation with them.

In business development it is necessary to assess the expected value brought by every kind of channel partner and target client. Beyond the direct profits, every partner or client may bring in some kind of strategic value either in the short or the long term.

Finally, there has to be crafted an internal marketing strategy to engage employees and partners with the vision, mission and values in full commitment to eventually turn them into brand ambassadors. Beyond communicating such vision, mission and values, it is crucial that the destination executives embed these values in their leadership style by delivering a leadership experience through their daily behavior to foster cultural transformation throughout the stakeholder community.

The Whitepaper “Envisioning Destination Marketing 3.0” explains this approach in further detail.

What key challenges do you envision when implementing Marketing 3.0 in local destinations?

Business model innovationCollaborative cultureCulture changeInnovative cultureIntelligence

Approaching tourism 3.0: Destination intelligence 3.0

Beyond developing new business models at a local level, it is possible to foster Tourism 3.0 from the regional level. Destination intelligence 3.0 envisions how the practice of collaborative research and innovation is to become a key discipline in sustaining competitiveness and improving the destinations’ marketing efficiency and effectiveness. Further, by fostering collaboration and innovation at a region-wide level, it becomes a powerful change agent to promote this culture down to the local level.

Destination intelligence 3.0 envisions how the current practices in research and monitoring of the tourism markets and destination performance may be improved to keep track of the fast-changing environment and leverage all the collective intelligence available through the existing networks. Moreover, market intelligence systems may be expanded to become open innovation systems to further leverage the collective intelligence of the industry stakeholders in bringing in fresh, new ideas for business model innovations, new products, management practices, marketing practices, etc.

The key idea is to foster collaboration among all stakeholders to both monitor the market and social trends in a deeper sense to better orientate the tourism development, and to innovate in all aspects of the business models to continually improve competitiveness.

The Whitepaper “Envisioning Destination Intelligence 3.0” explains in detail the vision on this new approach to collaborative research and innovation.

In which aspects do you think there is room for further cooperation between DMOs and operators in producing and sharing intelligence data and insights?

Business model innovationCollaborative business modelsMarketing 3.0StrategyStrategy planning & execution

Approaching tourism 3.0: Destination models 3.0

 

The “destination models 3.0 approach” is the one entailing the highest degree of transformation in the destination, not only in its marketing but in its business model and operational rationale. In the Whitepaper “Envisioning destination models 3.0” this concept is explained in full detail, and many case studies are to be explained in separate Whitepapers to better illustrate this vision.

Destination models 3.0 consist of the integration of most tourism businesses within a multi-sided platform which connects local service suppliers with tourists and other stakeholders. This platform is mainly in charge of controlling the service quality of all integrated and associated businesses and managing the marketing activities of the destination. A key element of this platform is the open innovation system, which intends to stimulate the continuous creation of experiences and marketing contents, as well as discussion about innovation in the business model.

They are conceived as collaborative models which intend to leverage the creativity and know-how of all the stakeholder community to gain competitive advantage over their competitors by developing a large network of brand ambassadors who create and deliver stories about the life-transforming experiences that take place in the destination, in order to engage new stakeholders in the pursuit of a mission that addresses the concerns of the stakeholder’s community. They are also triple bottom line models, so long as they account for financial, environmental and social costs and benefits.

The main idea behind this concept is to develop a tourism cluster with a high level of control over the service quality, as well as with urban aesthetic harmony and a spirit of collaboration and innovation among all stakeholders to sustain the destination’s competitiveness and marketing system. This should be applicable to existing clusters, resorts and new developments.

The mission of Envisioning Tourism 3.0 Ltd. is to keep on designing new business model prototypes approaching the Vision of Tourism 3.0 with different levels of complexity.

What kind of destination models do you envision approaching the Vision of Tourism 3.0?

Business model innovationInnovationIntelligenceMarketing 3.0Strategy

Envisioning different approaches to tourism 3.0

 

The evolution of destinations towards the vision of tourism 3.0 entails a sound and ambitious transformation, which is not likely to be feasible in all cases. Therefore, it is necessary to develop many approaches involving a lesser degree of change to also tackle the cases which are less open and flexible to the full transformation.

Hereby are presented the three main approaches involving different degrees of transformation:

  • Destination models 3.0 involves full transformation of local destinations
  • Destination intelligence 3.0 fosters progressive transformation in region-wide destinations
  • Destination marketing 3.0 involves little transformation of local mission driven destinations

The mission of Envisioning Tourism 3.0 Ltd. is to keep on developing these three approaches, as well as to develop new ones to promote and facilitate transformation throughout destinations towards the Vision of Tourism 3.0. This should be a shared challenge to be accomplished in collaboration with the growing community of innovators dedicated to the tourism industry.

Do you envision how to transform destinations integrating the aforementioned concepts?

Marketing 3.0Storytelling training & case studies

Key concepts of tourism 3.0: Life-changing experiences

One of the key differences that sets tourism destinations 3.0 apart from conventional ones are the life-changing experiences offered either related to skill development, cross-cultural understanding, development of new habits and lifestyles, gain of awareness about environmental issues, and ideally discovery of the fulfillment of contribution to the greater good.

Life-changing experiences are to foster cultural change to develop more sensitive and open mindsets, as well as to unlock human potential by stimulating creativity and transforming tourists into mission driven agents by appealing to their human spirit.

Such experiences are to be developed mainly by the local service suppliers in co-creation with other stakeholders through the open innovation system. The experiences generate stories, and so long as many stakeholders create and tell their story about their experience, more attention is drawn to the destination by people who also want to live their experience. Eventually, many stories may inspire new experiences as well, so long as they stimulate creativity to contribute to cultural transformation.

What kind of life-changing experiences have you lived when traveling?

Collaborative cultureCulture changeInnovative cultureMarketing 3.0

Key concepts of tourism 3.0: Culture shift towards collaboration and innovation

The new realities of communitization and increasing competitiveness inevitably demand a cultural shift towards more collaboration and innovation, not to say that the most effective innovation is to be carried out through collaboration, as it is the case with open innovation systems.

Fostering a cultural shift towards further collaboration and innovation is not likely to be a minor challenge, depending on the local culture of the destination. However, the great advantage of tourism destinations approaching the “Vision of Tourism 3.0” is that mission driven purposes are those which naturally motivate the most contribution and collaboration among humankind.

As the Whitepaper “Building a culture of collaboration and innovation” is to explain, such change has to be driven primarily by the right kind of leadership and an adequate system of rewards to change attitudes and build trust throughout the community.

What kind of cultures do you think are more likely to succeed in developing destinations based upon the Vision of Tourism 3.0?