Web Case Matrix

Chapter

Case Study Title

Country of Origin

1

An expanding niche market for youth travel:
The student gap year and tourism

Global

1

Globalization and tourism:
South Korean tourism activity in New Zealand

New Zealand

1

The impact of the London bombings on tourism

London

2

Thomas Cook 1919–1922: Battlefield tours and dark tourism

UK, France and Belgium

2

Literary tourism development – the Trossachs, Scotland: evolution, continuity and change

Scotland

2

The evolution of tourism in Monaco as a high-class tourism destination

Monaco

3

The Chinese outbound boom

China

3

The United Kingdom’s international passenger survey

UK

3

The United Kingdom Tourism Survey (UKTS)

UK

4

Motivations and activities of ecotourists at an ecolodge in Ecuador

Ecuador

4

Tourist motivation –
adventure tourism as a global growth market

Global

5

Managing costs as a tool to stay competitive:
The case of the airline sector

Global

6

The aims and objectives of DMOs and e-marketing and distribution

Global

6

Benefits of e-solutions for tourism value chains

Global

6

ICT's impact on tourism organisations

Global

6

The impact of social media on the tourism sector

Global

6

The role and impact of the Internet on tourism distribution

Global

6

Tracking and monitoring internet and social media use

Global

7

The Thomas Cook–MyTravel merger in 2007

Global

8

The evolution of cycle tourism in the USA

USA

9

Solar eclipses as a natural attraction

Global

10

J.D. Wetherspoons: The growth of a hospitality chain

UK

10

Second homes: Curse or blessing?

Global

10

The mega resort hotel and Las Vegas

USA

11

Empowerment, HRM and the Southwest Airlines model

USA

12

Stelios Haji-Ioannou and the easyGroup

UK

13

The role of Scottish Enterprise in the development of tourism

Scotland

13

The Singapore Tourism Board’s vision for tourism
and Tourism 21

Singapore

14

fastjet – Launching Africa’s first low-budget airline using digital marketing

Africa

15

The marketing and promotion of Berlin as a tourist destination

Germany

16

Gromit Unleashed: The economic impact of a film and TV tourism product

UK

17

The Arctic – socio-cultural impacts of tourism in an emerging destination

Arctic

18

British Airways environmental report

UK

18

Whale and dolphin watching:
A global growth sector

Global

19

Sardinia: Implementing approaches to sustainability at the destination level

Sardinia

20

Urban regeneration and tourism in the ‘Big Apple’:
New York and the 2012 Olympic bid

USA

21

Rural tourism in Namibia

Africa

22

Margate:
Cultural tourism and the British seaside towns

UK

23

Enclave tourism in Africa

Africa

24

Factors influencing the tourist experience at visitor attractions: Key studies and issues

Global

25

Accidents and injuries in adventure tourism

Scotland

26

Squamish and event development

Canada

27

Future changes in air travel:
The role of technology – the A380

Global

Chapter 1

An expanding niche market for youth travel:
The student gap year and tourism

One of the growing trends in youth travel in the last decade has been the phenomenon known as the gap year, where prospective college and university students defer entry for a year to undertake paid employment, or volunteer to undertake charitable work, raising the funds to engage in this activity. This experience is still part of educational tourism or a special category where the work is not remunerated. In the study of Special Interest Tourism by Weiler and Hall (1992) they identify some of the motivations for such travel as helping to broaden one’s horizon, to learn something, helping with self-discovery, contact with nature, social contact but above all, something which is REAL – Rewarding; Enriching; Adventuresome and a Learning experience. In the UK, the Universities and College Admission Service indicated that the number of entrants deferring their first year place to work or undertake a gap year was 25,310 in 2001 and 29,139 in 2003 but some estimates indicate it could be as much as 60,000, popularized by Prince William at the end of his first year at St Andrews University in Scotland, when he intermitted from his studies to undertake a gap year and engage in voluntary work overseas. A study by Jones (2004) provided estimates as wide-ranging as 60,000 to 350,000 students pursuing gap years while a best estimate was viewed as 200–250,000 a year in the UK.

The earlier examples of the gap year were popularised by Raleigh International (formerly Operation Drake and the forerunner Operation Raleigh) (http://www.raleigh.org.uk) in 1978 for 17–25-year-olds. Between 1984–88, Operation Raleigh involved 4,000 volunteers engaged in expeditions and charitable work with non-governmental organizations to help less fortunate people. A current example of such volunteer organization can be seen in Image 1.2 – Global Vision International (http://www.gvi.co.uk) which has projects operating in 20 countries. There is a growing interest among researchers in the volunteer tourist, as they have been termed, where they contribute to a range of projects. For example, the largest such organization in Australia, Conservation Volunteer Australia (http://www.conservationvolunteers.com.au/) has around 1,200 annual volunteers engaging in conservation holiday experiences such as clearing up a coastal area as examined by Davies (2002). Jones (2004) depicted the choice in gap year activities in terms of a series of choices comprising: UK or overseas as a destination?; then a choice of organized or independent travel; learning versus paid work or voluntary work and consideration of the wider leisure activities which would be undertaken.

Clearly a wide range of experiences, motivations and outcomes arise from being involved as a volunteer tourist, not least the experience and personal development, a feature which is discussed in detail by Wearing (2001). Given the growing importance of such markets in youth trade, specialist travel operators such as STA Travel (http://www.statravel.co.uk) have dedicated advice on their websites for this market, along with brochures. A wide range of websites dedicated to the gap year also exist including:

http://www.gap-year.com
http://www.realgap.co.uk
http://www.travel.guardian.co.uk
and various books and sections in travel guides now devote space to this growing phenomenon in the developed world. A number of companies have seen significant growth in patronage of the services now tailored to gap year clients. What this example illustrates is that no reliable data exists on a rapidly expanding area of youth travel and tracking its growth is extremely difficult, despite its significance globally.

References

Davies, J. (2002) ‘Exploring open spaces and protecting natural places’, Journal of Ecotourism 1(2/3): 173–80.

Jones, A. (2004) Review of Gap Year Provision. Department for Education and Skills: London.
Wearing, S. (ed.) (2001) Volunteer Tourism. CABI Publishing: Wallingford.

Globalization and tourism:
South Korean tourism activity in New Zealand

Kyung-Sik Woo and Stephen J. Page

South Korea is a major source market for New Zealand, the fifth largest overseas market in 2004 and a high spending and yielding market. In a study by Woo (1996) a time budget survey (i.e. how visitors spent their time and where they went) of inbound South Korean tourists travelling on package tours found that they followed three itineraries:

  • Auckland to Rotorua and return to Auckland.
  • Auckland to Rotorua and Waitomo Caves and return to Auckland.
  • Auckland to Rotorua and Waitomo Caves and Taupo and return to Auckland (Figure 1).

What is interesting from the study is that South Koreans travelled by South Korean airlines, using a Korean-owned inbound tour operator and ate at Korean-owned restaurants; they followed a regimented pattern of tourist travel, visiting and spending money in Korean-owned souvenir and gift shops. They even spent the limited free time available in Korean-owned pubs in Rotorua. This example not only illustrates the control of the tourism process by Korean-based owners or Korean owners in New Zealand, but the pattern of investment focused on a very lucrative niche market. Here production and consumption are closely linked and the same nationality-owned businesses ‘provide a form of culturally-specific economic mediation between the tourists and the host communities’ (Shaw and Williams 2004: 45).

References

Woo, K.-S. (1996) Korean Tourists Urban Activity Patterns in New Zealand. Research report. Auckland: Masters of Business Studies, Massey University of Albany.

Woo, K.-S. and Page, S.J. (1999) ‘Tourism demand in East Asia Pacific – the case of the South Korean outbound market and activity patterns in New Zealand’, in C.M. Hall and S.J. Page (eds) The Geography of Tourism and Recreation: Environment, Place and Space, First Edition. London: Routledge.

The impact of the London bombings on tourism

As a world city, London is a major tourist destination attracting over 26 million overnight visits, 150 million day trips and around 50 million domestic visits to London attractions. The iconic status of many of the capital’s landmarks have contributed to its global recognition as a key destination, resulting in an estimated £15 billion tourism economy supporting 260,000 jobs and contributing to £4.4 billion retail spending in London’s West End, with £401 million spent at London theatre box offices. The capital is also a major business tourism destination, with around 6.6 million visits to conferences, exhibitions and meetings, some of which stay in the 1,353 hotels and bed and breakfasts in London, and a proportion arrive by air at Heathrow airport which handles over 67 million passengers. The capital city status of London has meant that it has also been a target for terrorists intent on disrupting its business activities and population to promote their cause by gaining global media attention.

Terrorism in London can be dated to 1867 and the Irish separatist group, the Fenians, who waged a terror campaign related to Home Rule between 1883 and 1885. Irish Republican Army (IRA) attacks re-occurred in 1939, but the major campaign in the early 1970s and a renewed campaign 1988–2001 created significant disruption. For example, the 1993 attack on Bishopsgate caused US$907 million of insured damage (London Chamber of Commerce 2005). For businesses, the increased cost of security added additional costs while for tourists it raised concerns over personal safety and security whilst travelling. In July 2005, two bombings by other terrorist groups were evaluated extensively by research studies to monitor the impact of the two ‘shock events’ on the capital’s tourism sector. A Crisis Event Forecasting Model developed by Oxford Economic Forecasting for the World Travel and Tourism Council (WTTC) summarized the expected impact of the event:

  • Personal travel and tourism may decline by 2.3 per cent (£2.3 billion)
  • Business travel may decline by £523 million, a 2.3 per cent drop
  • Government expenditure on tourism may increase by 6.3 per cent as such spending usually increases during a crisis, due to additional security and renewed marketing activity
  • The tourism economy may contract by 0.55 per cent.

Visit London’s Attraction Monitor saw visitor numbers to London attractions drop over 20 per cent in July 2005 but by July 2006, the visitor numbers had grown 950,000 to generate an additional £6 million for the tourism economy. Occupancy rates in London’s accommodation sector also fell by 15 per cent in August and September 2005 and estimates of the total impact on the London tourism economy was a reduction in expenditure of £536 million. Similar falls occurred after the 9/11 attacks due to a drop in consumer confidence in tourism.

What the London bombings show is that shock events can hit tourism hard in the short run but the sustained recovery via destination marketing and a resilient crisis management plan (see Chapter 27) are essential to assist in promoting ‘business as usual’ to restore tourist and business confidence. Despite the London bombings, 2005 was still a record year for overseas visitors to London with around 5 per cent growth. In fact by 2006, the number of overseas visitors had grown to 15.2 million, increasing overseas visitor spending to £7.5 billion.

References

London Chamber of Commerce and Industry (2005) The Economic Effects of Terrorism on London: Experiences of Firms in London’s Business Community. London: London Chamber of Commerce and Industry.

World Travel and Tourism Council (2005) Estimate of London Bombings Impact. http://www.wttc.com.

Chapter 2

Thomas Cook 1919–1922: Battlefield tours and dark tourism

Tourism researchers in recent years have come to focus on the attraction of death and disaster associated with locations now recognized as ‘dark tourism’ – the fascination with famous battlesites and places connected with death (Lennon and Foley 2000). A recent review of the area of battlefield tourism (Ryan 2007) illustrates how visiting battlefields has now created a new genre of attractions and visitor experiences now incorporated through re-enactments and also as a focus for national remembrance of a nation’s fallen soldiers.

Lloyd (1998) has shown that battlefield tourism, that is trips by relatives and other visitors to battlefield sites, developed in the immediate aftermath of the First World War. Lloyd (1998: 102) described the desolate landscapes which visitors and relatives confronted when visiting the Western Front (Belgium and France) which was almost desert-like. What is interesting is that Thomas Cook responded to the market opportunities which this demand to visit the battlefields created, launching its programme of Tours to the Battlefields of Belgium in June 1919, advertised in the Traveller’s Gazette. The company provided two forms of tour: either luxury travel or more popular tours by motor car from Paris. The popularity and fascination with dark tourism meant that these tours continued into the early 1920s, building on the growth of air services launched after the First World War with a programme of Battlefields from the Air tours in May 1920. A feature in The Traveller’s Gazette of August 1919 entitled Cities and Battlefields of Belgium highlighted the sites on the Flemish coast:

All along the route to Zeebrugge are seen tremendous coastal forts, dug-outs and gun emplacements, with numbers of damaged guns in position-telling evidence of what the Dover Patrol had to face in its fights up and down this coast… And not far from the extreme sea end of the Mole may be seen another sunken ship, the Great Eastern Railway Company’s passenger steamer, Brussels.

The dramatic depiction of the horrors of war and the battlefield site of Ypres in Belgium was described thus:

Of many places little, if anything, remains but the name! Towns and villages whose names have become familiar as household words such as Dixmunde, Nieuport, Ramscapelle, Pervyse, Hooge, Gheluveltand others are simply ‘heaps’. Some are so completely wiped out that indication-posts have been erected pointing to where they stood. All along the river Yser, between Nieuport and Elsendamme, the country is a veritable wilderness…In some areas every tree has been blasted by poison gas. Once beautiful woods are now merely rows of naked trunks…Many objects meet the eye which appeal to the sensibility of the traveller, such as roadside graves and their crosses; aeroplanes that have been brought down and lie where they fell; empty trenches and dugouts; derelict tanks battered by enemy shell; transports and debris of all kind.

For 35 guineas (£36.75), first class luxury travel to the cities and battlefields of Belgium in 1919, leaving every Saturday, visited Ypres, Zeebrugge, Malines, Louvain, Ostend, Bruges, Ghent, Brussels and Antwerp by Pulman railway car in England, and by private car to visit the battlefield sites accompanied by a Thomas Cook representative. This was a one-week tour. In contrast, the ‘popular’ package, a one-week independent tour, was only half a guinea (£0.55p), leaving every Tuesday and Saturday and lasting five days with a one-day trip to the battlefields of Ypres.

A March 1920 advertisement in The Traveller’s Gazette, Easter Tours to the Battlefields, offered a £35 seven-day first-class tour ‘Selected Escorted Party’ incorporating battlefields at Ypres and a £43 first-class tour visiting Lille, Armentieres, Neuve, Chapelle, La Bassee, Loos, Lens, Vimy Ridge, Arras, Doullens, Amiens, Albert, Bapaume, Peronne, Trones Wood, Delville Wood and Mametz Wood, the location of many major wartime offensives. Tours to Ostend and the battlefields for £6-10s-0d (five days), The Somme, The Marne, Rheims and Paris battlefields (seven days) for £17-17s-0d and The Somme, Arras and the Vimy Ridge (four days) for £14-5s-0d were on offer. This not only highlights the scale and diversity of battlefield tours on offer but the decision to develop a new product in the immediate aftermath of the First World War, themed around the major interest in dark tourism as well as the desire among relatives to visit the areas where loved ones and relatives died fighting for their country.

Further Reading

Ryan, C. (ed.) (2007) Battlefield Tourism. Oxford: Elsevier.

References

Lennon, J. and Foley, M. (2000) Dark Tourism. London: Continuum.

Lloyd, D. (1998) Battlefield Tourism. Oxford: Berg.

Literary tourism development – the Trossachs, Scotland: evolution, continuity and change

Many locations across the world have used the association with famous writers to create an interest within specific destinations themed around the literary tradition of the author and locality (see Table 1). In central Scotland, within the area now covered by the Loch Lomond and Trossachs National Park, tourism was popularized by a number of novelists and writers, most notably Sir Walter Scott and the Wordsworths. Following the publication of Scott’s poem, Lady of the Lake, visitors to the area increased dramatically, such that local houses and inns were given over to tourism. As the poem sold in excess of 50,000 copies many readers sought to visit the area with its rudimentary access, to see the actual places named in the poem and in latter stories such as Rob Roy. By the 1850s, a purpose-built hotel was constructed – The Trossachs Hotel – and it was extended in 1877 and 1891, and it is now a holiday complex. Visitor demand also led to the operation of steamship excursions from the two piers – Stronachlachar and Trossachs Pier at Loch Katrine, which is the reservoir providing water to Glasgow. The area was given a further boost in 1869 by the visit of Queen Victoria. Further tourism growth occurred following the completion of rail access in the late 1880s, where the North British Railway promoted 21 circular tours of Loch Lomond and the Trossachs to gain a marketing advantage from the literary associations. Records such as the numerous tourist guide books written in the Victorian and Edwardian period extol the virtues of Sir Walter Scott’s association with the area, and this link has remained strong. The railway access was expanded in the 1930s as coach tours opened up the area further to visitors and subsequently the car replaced the railway as the main form of access. In 2002, the number of visitors to the Loch Katrine area was in excess of 220,000 with a proportion taking short cruises on the recently restored Sir Walter Scott, many arriving by coach as part of a wider tour of the area. This short example shows that whilst literary associations have continued for almost 200 years, the area has adapted to new forms of tourism such as cycle tourists using the Loch for recreational cycling and walking, as well as cruises which were popularized in the 1850s. This also shows how important literature can be in developing a particular image and association with a place that previously did not attract tourists, a feature also replicated in other countries across the world. In 2010 celebrations of Scott's poem in the Trossachs saw 8,000 people attend a programme of events where the area was branded as Scotland.

The evolution of tourism in Monaco as a high-class tourism destination

Monaco is an independent Mediterranean state which saw its sovereign state status granted in 1861, and it comprises 485 acres in size, a proportion of which has been reclaimed from the sea in the last two decades. The state is adjacent to France and has a Mediterranean coastline, running along 2.5 miles with an extremely mild climate and over 1500 hours of sunshine a year. Despite its small size, it has been associated with the most chic and upmarket tourism sector. The stimulus to tourism development can be traced to the period after 1863 when a monopoly was granted to establish a tourism company – The Sea Bathing and Circle of Foreigners Company – to develop and promote the area. This saw the construction of accommodation, promotion of the location and the development of its world-famous casino which has provided substantial revenue for the state. After 1867, scheduled land and sea links were established with a rail link to Nice, France. This opened the area up to a much wider circle of visitors and the area now known as Monte Carlo. In that area upmarket villas and residences were constructed. To add to the cultural infrastructure, the Monte Carlo orchestra was established in 1869, which also acts as venue for opera and ballet, assisting in the development of an image as the French Riviera, described by www.tourism-monaco.com as ‘A riviera gem – an international cultural centre’, adding to the image as a playground of the rich, the famous and chic and an upmarket destination.

Chapter 3

The Chinese outbound boom

Grace Wen Pan and Eric Laws

The development of Chinese outbound tourism

Until 1983 the Chinese government placed tight restrictions on outbound tourism. Then the slightly liberalized policy first eased Chinese leisure travel to Hong Kong and Macau, because of ethnic, cultural and political connections. At that time, ‘outbound travel’ was defined as VFR. Thus the trip was sponsored financially by overseas relatives and friends so there was no drain on China’s foreign exchange reserves. With the development of Chinese travel to Hong Kong and Macau, more people expressed a desire to visit their relatives in other regions. In 1990, with the approval of the State Council, the China National Tourism Administration (CNTA), the Foreign Ministry, the Public Security Ministry and the Overseas Chinese Affairs Office declared ‘the Provisional Regulations on Management of Organising Chinese Citizens to Travel to Three Countries in Southeast Asia’. The regulation enabled Chinese citizens to visit friends and relatives in Thailand, Singapore and Malaysia if sponsored by their overseas relatives and friends. The Philippines was added in 1992. Cross-border tours were also permitted. The flows include north-east China to Russia, North Korea and Mongolia; south-west China to Vietnam, Cambodia, Laos and Myanmar (Burma); and from north-west China to Russia and other former Soviet Union countries. With the development of travel services, trips evolved from VFR to holiday leisure travel. In 1991, Singapore, Malaysia, and Thailand witnessed the rush of the first tour groups from mainland China when the country began to permit its residents to travel to selected South-east Asian countries for personal and leisure purposes.

Subsequently, other South-east Asian countries were awarded Approved Destination Status (ADS) by the Chinese government. Australia and New Zealand were granted ADS in 1998. The total number of Chinese outbound tourists grew rapidly between from 3.73 million outbound trips in 1994 to 5.32 million in 1997 and to 10.4 million in 2000. Of the total outbound tourists from China, 54 per cent were for business and 46 per cent for private purposes in 2000, including leisure and VFR (http://www.cnta.com). In 2000, Asia accounted for 8.8 million of the overseas trips, with 4.1 million to Hong Kong, 1.6 million to Macau, almost 600 000 to Japan, 707 000 to Thailand, 523 000 to the USA and 1 million to Europe with 150 000 to Australasia, of which 126 000 were destined for Australia. The UN-WTO stated that the number of Chinese outbound tourists in organized tour groups increased by nearly 130 per cent to 1 640 000 between 1993 and 1996. The most common form of travel for Chinese tourists visiting outbound destinations is the all-inclusive package tour. A typical package includes international travel, private chartered coach within Australia, sightseeing excursions, local guides, accommodation and meals (mainly Chinese food with some Australian-style meals such as a barbecue or an American breakfast). This form of tour arrangement can be compared with typical Western inclusive holiday packages, providing Chinese clients with similar advantages, particularly the benefit of knowing beforehand what to budget for their holiday, and relieving them of any concerns about the difficulties of making their own arrangements in a foreign country.

Three main categories of destinations were identified by the National Tourism Administration of the People’s Republic of China. These are Chinese outbound tours, cross-border tours, and tours to Hong Kong and Macau. It should be noted that only cross-border tours do not need a visa. Although Hong Kong and Macau have now become Special Administration Regions (SARs) of China, Chinese tourists still have to apply for a visa to visit them. On 1 July 1997 the ‘Provisional Regulations on the Management of Outbound Travel by Chinese Citizens at Their Own Expense’ were issued jointly by the CNTA and the Ministry of Public Security after approval by the State Council, establishing a new management system for outbound travel to meet the growing demand of Chinese citizens to travel outside of China. Under the regulations, outbound tours by Chinese citizens must be conducted in a planned, organized and controlled manner. Only approved travel agencies can assume the responsibilities of managing outbound travel by Chinese citizens. Category A agencies are authorized to operate international travel business. Category B agencies are allowed to receive and entertain international tourists to China while Category C agencies are only allowed to operate domestic travel business. China has 360 Category A travel agencies. In addition to seeking their own clients directly, some of the authorized outbound Category A travel agencies receive passengers from Category B and C travel agencies. Therefore, Category A agencies can be regarded as wholesalers as well. Of 360 Category A travel agencies, 67 were authorized to handle Chinese outbound travel services because of the demand for international services; 22 of whom were authorized to handle the Chinese tourism market to Australia. These 22 travel agencies are located in Beijing, Shanghai and Guangzhou. The Ministry of Public Security is responsible for the management of passports for outbound travel, and its procedures are based on the Chinese exit and entry laws and regulations. These regulations determine that the major pattern of the Chinese outbound leisure travel is package tours, not fully independent tours (FITs). Compared to other markets, the Chinese government is still very careful with outbound tourism, especially the outbound tourism market to Australia, mainly because it was the first non-Asiatic destination granted ADS status.

When Australia was granted ADS by the Chinese government, the Australian Tourism Commission (ATC) and the CNTA set unified prices on package tours for Chinese tourists visiting Australia. For example, a nine day tour departing from Beijing or Shanghai is priced at RMB 18 000 (approximately AU$3371), and departure from Guangdong Province is RMB14 000 (AU$2622). These unified prices are a condition of visa approval for Chinese tourists visiting Australia. In contrast with the literature suggesting that Chinese people are highly price sensitive, unified pricing implies that Chinese tourists do not have any bargaining power if wishing to visit Australia as a leisure destination. Furthermore, most of the package tours available to Chinese tourists are very similar, offering trips to Sydney, Canberra, Melbourne, the Gold Coast and Brisbane, and itineraries which include at least two of the three theme parks on the Gold Coast, Movie World, Sea World or Dream World. The lack of variety in the products available to the Chinese outbound tourism market could ultimately detract from Chinese tourists’ interest in visiting Australia.

In contrast, the Chinese outbound travel agencies are highly price-sensitive. They try to reduce the price of land services provided by Australian inbound tour operators to obtain a higher profit margin from the fixed sales price. Price competition also results in a poor quality of services being provided to Chinese tourists, and there was evidence in this study of dissatisfaction among Chinese tourists with the standards of accommodation provided on package tours to Australia. Differentiating and developing products with unique Australian characteristics appears to be the best strategy to minimize price competition between them for the inbound tour operators in Australia. Disposable income is the most important factor influencing visitors’ decisions whether to travel or not and this directly impacts on Chinese tourists’ decision to travel to Australia.

What this case study shows is that government policy towards outbound tourism can be a major constraint and controlling factor in the development of overseas travel and that existing links with friends and family overseas was a strong pull on overseas travel along with disposable income. It is also notable that analysts view a major outbound boom as a long-term proposition, with overseas travel available to a wider section of Chinese society, given that a large proportion of the population have less than US$5 000 in disposable income, which is commonly seen as the threshold at which discretionary spending on overseas travel begins.

Further reading

Messerli, H. and Bakker, M. (2004) ‘Travel and tourism – China’, Travel and Tourism Analyst.
Pan, G. and Laws, E. (2001) ‘Attracting Chinese outbound tourists to Australia’, in D. Buhalis and E. Laws (eds) Tourism Distribution Channels: Practice, Issue and Transformations, Continuum: London, 259–81.

The United Kingdom’s international passenger survey

As a government-sponsored survey, which began in 1961, the International Passenger Survey (IPS) now covers all ports of entry/exit to the UK. The IPS is a survey of people travelling into and out of the UK (ONS 1999). A sample of travellers are interviewed using a face-to-face method of data collection. The UK’s Office for National Statistics (ONS) commissions the work, together with other government departments, and data collection and survey analysis are performed. MQ6 Overseas Travel and Tourism is published on a quarterly basis giving the latest information; Overseas Travel and Tourism does the same but on a monthly basis and Travel Trends is published on an annual basis reporting the results of the IPS. In the 2006 IPS survey, 51 129 respondents were randomly selected for interview, representing approximately 0.2 per cent of all who were eligible. The main questions asked concerned nationality, residence, country of visit (for UK residents travelling abroad), purpose of visit, flight or ferry information, earnings, expenditure and demographic characteristics. The survey had an 89 per cent response rate in 2005. A system of stratified random sampling is used, based on the principal airports in the UK together with other regional airports, ferry ports and the Channel Tunnel. The IPS provides information on international tourism, outbound and inbound to the UK. Information on the number of visits, length of stay and value are provided as well as other aspects which include method of travel, purpose of visit, age and gender. According to Latham (1989: 64), IPS’s four principal aims are:

  1. To collect data for the travel account (which acts to compare expenditure by overseas visitors to the UK with expenditure overseas by visitors from the UK) of the balance of payments.
  2. To provide detailed information on foreign visitors to the UK and on outgoing visitors travelling overseas.
  3. To provide data on international migration.
  4. To provide information on routes used by passengers as an aid to aviation and shipping.

According to MacLeay (2001: 29), standard variables in the UK IPS (which would seem to be broadly in line with international visitor surveys in other countries) include:

  • mode – main method of travel
  • quarter of travel (i.e. Jan–Mar, Apr–Jun, Jul–Sept,
  • Oct–Dec)
  • whether or not on a package trip
  • country of residence for overseas visitors
  • spending on visit
  • age group
  • nights spent on visit
  • country of visit for UK residents
  • nationality of traveller
  • UK port of entry
  • overseas port used
  • vehicle used
  • flight type
  • class of travel.

The cost of the IPS has risen from £3.4 million in 2000–2001 to £4.4 million in 2005–2006.

The United Kingdom Tourism Survey (UKTS)

According to the UKTS, in 2006 UK residents spent 400 million nights away from home in the UK, equivalent to 126.29 million trips, and spent £20 million. The majority of trips were for holidays, to visit friends and relatives and for business and other purposes (www.staruk.com).

But how does the UKTS derive these statistics? The UK national tourism organizations (Visit Britian, VisitScotland, Northern Ireland Tourist Board and VisitWales) contract a market research agency (in 2003 it was BRMB) to undertake an annual survey – the UKTS). As Hay and Rogers (2001: 269) observe, the main objective of the UKTS is to provide measurements of tourism by residents of the UK, in terms of both volume (trips taken, nights spent away from home) and value (expenditure on those trips and nights).

The UKTS continuously interviews adults aged 15 years or more every month, using a random sample and the method of sampling, its accuracy and issues of question style can be found in Hay and Rogers (2001).

From May 2005, UKTS employed a new methodology interviewing 103 000 people face to face, almost double the volume of the previous UKTS survey (and replacing telephone interviews and a random digit dialling approach to sampling) to yield a more representative sample. This equates to a weekly sample of around 2 000 adults aged 16 years or over which is representative of the UK population in relation to gender, age group, social class and residential area.

Further reading

Hay, B. and Rogers, M. (2001) ‘Practical solutions to impossible problems? Lessons from ten years of managing the United Kingdom Tourism Survey’, in J. Lennon (ed.) Tourism Statistics: International Perspectives and Current Issues. London: Continuum.
Ford, H. and Wright, I. (2001) ‘The future of the United Kingdom Tourism Survey’, in J. Lennon (ed.) Tourism Statistics: International Perspectives and Current Issues. London: Continuum.
Also, see the other country studies in:
Lennon, J. (ed.) (2001) Tourism Statistics: International Perspectives and Current Issues. London: Continuum.

Chapter 4

Motivations and activities of ecotourists at an ecolodge in Ecuador

Katrin McInnis and Stephen J. Page

According to the UN-WTO, the Latin American tourism industry is likely to generate US$186.4 billion in 2007, a figure which is expected to rise to US$304.3 billion by 2017. Ecuador’s contribution to this growth is around US$ 4 553.5 million. Within Latin America, and especially in Ecuador where ecotourism has played a major role (Weaver and Schlüter 2001), the development of the Galapagos Islands as a wildlife tourism destination has raised many of the issues of managing nature-based tourism (see Chapter 19). The Galapagos Islands were given UNESCO world heritage site status to help preserve the protected area in 1990 (de Oliveira 2008) which highlighted the pressure which many ecotourism sites were facing in Latin America, a feature also observed by Weaver and Lawton (2007). In Ecuador, this interest in ecotourism has also shifted to mainland Ecuador, due to a growing number of ecotourism projects which have highlighted its biodiversity. For example, the country has one of the world’s highest proportions of protected areas such as the Amazonian rainforest. For this reason, ecotourists have become a significant niche market for tourism in Ecuador. This Insight will show what type of factors influence and motivate visitors to choose to visit an ecolodge (which is an ecologically sustainable form of tourist accommodation in an ecotourism location) as part of an ecotourism experience and the types of experience they consume.

According to the majority of studies on ecotourism, ecotourists tend to be well-educated (Eagles and Cascagnette 1995) and fall within a higher income bracket. Most researchers profile these visitors as aged from 25 to 55 years of age (Weaver and Lawton 2002). Younger ecotourists are generally only found if ecotourism involves more extreme and adventurous activities (see also Insight 4.2). No agreement has been reached on the gender of ecotourists, with some surveys reporting a male dominance (Fennell and Smale 1992), while others note an equal gender distribution (Boo 1990) and others again refer to gender as an activitydependent statistic (Eagles and Cascagnette 1995). Other studies suggest a dominance of females (Weaver and Lawton 2002), causing Wight (2001: 43) to consider whether this is due to ‘women’s increasing independence and incomes’. One example of the significance of ecotourism development can be illustrated by the development of Liana Lodge.

Liana Lodge, Ecuador

Liana Lodge is a privately run ecotourism lodge on the banks of the Arajuno River in Ecuador’s Napo region of the southern Amazon basin, amid rainforest. The lodge is located 45 km south-east of Tena, which marks one of the main gateways to the jungle due to its relatively easy accessibility. It lies six to seven hours (186 km) south-east of Quito and five to six hours (140 km) north-east of Baños by road. From Tena, tourists travel further into the jungle by road for two hours, before reaching Puerto Barantilla, where they are met by Liana Lodge canoes and taken to the lodge. The lodge’s remoteness means it can only be reached by waterway for the last two kilometres. The secluded location of Liana Lodge adds to its charm and represents a pull factor in the ecotourists’ motivational process. The lodge was founded by Angelika Raimann and Remigio Canelos in 1998. It is part of a larger ecoproject which has been in existence since 1993. It consists of the nearby animal rescue centre amaZOOnico, the community-run low budget lodge Runa Huasi, and Selva Viva, a 1200 hectare protected rainforest, which surrounds all projects and is the perfect location for many Liana Lodge tours, due to its unspoilt environment and local wildlife. The lodge employs 16 members of staff and there is emphasis on employing only members of the local Quechuan community (Ecuador’s largest indigenous group living in the Andes and the jungle regions). Thirty-six tourists can be accommodated in eight double cabins. In 2006 the lodge had 4722 overnight stays, of whom 29 per cent were free independent travellers and the remaining visitors came on tours organized by operators. Prices include all meals and tours and rates for 2006 were US$91 for 2 nights/3 days, US$146 for 3 nights/4 days and US$200 for 4 nights/5 days.

A survey of visitors during 2006 found that interest in saving the environment was their main motivation to visit. However, a small number of respondents stated that they had been specifically searching for an ecotourism project and chose Liana Lodge because of its location or because of its features. Wight (1996), suggests that ecotourists show preferences for cabin-style accommodation and lodges, making them an ideal tourism location. Other reasons included curiosity such as ‘the lodge seemed a unique experience’, word of mouth and nearby amaZOOnico. Some 24.5 per cent of visitors were younger than 25 years of age and the main nationalities of visitors were German (41.2 per cent), Swiss (19.6 per cent) and French (14.7 per cent). While at the lodge, the types of activities which the visitors undertook are shown in Table 1.

What this case study shows is that ecotourism has a specialized range of motivations and a unique appeal to visitors who are interested in the natural environment, its fauna and flora and issues associated with conservation and forms of tourism which have a lower impact upon the environment. Yet as de Oliveira (2008) shows, public policy responses are often needed if the scale of ecotourism development starts to become unmanageable which can set in chain a circle of decline, as visitors motivated by the ecological qualities of the destination are displaced by the growth in visitor numbers and the scale of development.

Further reading

Weaver, D. and Lawton, L. (2007) ‘Twenty years on: the state of contemporary ecotourism research’, Tourism Management, 28(5): 1168–79.

References

Page, S.J. (1997) ‘The cost of accidents in the New Zealand adventure tourism industry’, report for the Tourism Policy Group, Ministry of Commerce, Wellington.

Page, S.J. (2003) The Market for Adventure Tourism in Perthshire. Dept of Marketing, University of Stirling.

Page, S.J., Bentley, T.A. and Walker, L. (2005) ‘Scoping the nature and extent of adventure tourism operations, in Scotland: How safe are they?, Tourism Management, 26 (3): 381–97.

Weaver, D. and Lawton, L. (2007) Twenty Years on: The State of Contemporary Ecotourism Research, Tourism Management, 28 (5): 1168–79.

Wight, P. (2001) ‘Ecotourists: not a homogenous market’, in Weaver, D., ed., The Encyclopaedia of Ecotourism. Wallingford, UK: CABI International.

Tourist motivation –
adventure tourism as a global growth market

There is a growing interest globally in the pursuit of more adventurous forms of tourism, ranging from the entire holiday experience based on a sense of adventure, such as trekking through the Andes or a land-based expedition across the Sahara, to high-risk activities such as parasailing and white-water rafting. The motivations for such travel include an interest in exploring, in meeting indigenous people, and in competing with nature, the weather and difficult terrains. Many specialist travel companies have developed to cater to small group, luxury and more budget forms of adventure travel at a global scale. Many of the consumers who pursue these experiences are part of the explorer type identified by Cohen and other researchers, although the growing affluence of former mass tourists seeking something different also feature among key motivations. But these forms of travel may also be grouped under the more affluent and experiential forms of tourism: luxury or high-cost travel experiences such as ecotours to Antarctica and excursions on the Orient Express. In contrast, more mass-market products have been developed which meet different needs of the more adventurous traveller who seeks the thrill, challenge, adrenaline rush and experience of adventure sports.

The motivations for engaging in adventure sports, which include a wide range of activities  include a continuum from the more passive, organized activities such as horse riding through to the ultimate challenge of extreme sports such as white-water rafting, bungee jumping and other physically challenging activities. Many tourist destinations have added these activities to complement the traditional ski holiday market that appealed to the adventure tourist, thereby diversifying the market appeal. Yet there are inherent complexities in analysing the motivations of individuals and groups who consume these products, as noted by a recent market research study undertaken for the former Perthshire Tourist Board in Scotland (now Visit Scotland). One of the main problems is in identifying the multiple motivations associated with engaging in adventure activities and in then seeking to classify people into convenient groupings based on common attributes. The study identified many of the conventional labels used to segment this market, who were typically aged 24–39 years of age, including the avid professional (enthusiasts), those who were sampling the experience for the first time, those wishing to learn a new sport, dabblers who had acquired the skill level necessary but undertook the activity infrequently and the corporate groups who were using it for teambuilding purposes.

Chapter 5

Managing costs as a tool to stay competitive:
The case of the airline sector

One of the main features which characterizes the success of low-cost airlines is their ability to control their costs (see Table 1). Even so, there are many examples of low-cost airlines which have collapsed in the USA and Europe due to underestimating the market and management challenges posed by developing a new venture and controlling costs. In the airline sector, Seristö and Vepsäläinen (1997) outlined many of the cost and revenue factors associated with airline operations and this helps to show where operational costs occur and how airlines might make savings, given the predictions of global airline losses discussed in Chapter 8. Seristö and Vepsäläinen (1997: 11) argue, ‘for many a carrier ever more critical measures will be needed to achieve sustainable profitability’ and they looked at 42 different airlines and their main costs. Among the main factors which contributed to operational costs were:

  • the fleet composition of airlines
  • personnel, particularly the number of flight crew per aircraft
  • the route network
  • the composition of traffic, route structure and salaries/remuneration levels.

This led the researchers to build a model to show how costs were related to the supply and demand for airlines services (i.e. what interdependencies and relationships exist) and they identified areas where cost reductions could be made. One strategy is that airlines might choose to divest themselves of non-core activities by outsourcing the provision of services and activities to other companies. Contracting other companies to supply them would reduce the overheads and staff costs the airlines would incur from hosting them in-house. Seristö and Vepsäläinen (1997) then summarized the areas where cost savings could be made in terms of route structure, fleet composition and company policies. One recent example of an airline pursuing a cost reduction strategy is British Airways (BA).

BA introduced its two-year ‘Future Size and Shape Strategy’ to restructure the company (www.ba.com). One goal was to reduce staffing by 13 000 from the 2001 staffing level of over 50 000 staff worldwide, while releasing capital to refocus attention on core activities. In its 2003/2004 Annual Report BA stated that it had made savings of £869 million against a target of £650 million with the target of 13 000 staff cuts exceeded at 13 082. It also made savings on distribution costs in 2003/2004 of £257 million against a £100 million target through greater use of technology and restructuring of travel agent commissions. The ultimate aim was to reach a 10 per cent operating margin. The ‘Future Size and Shape Strategy’ also sought to cut costs by a gradual reduction in fleet types (standardizing where possible as the low-cost airlines have done, reducing engineering costs), and through the reduced costs of supplies by a procurement strategy and greater use of information technology as well as a low-cost fares strategy on its 180 short-haul routes to regain market share from the low-cost airlines. For BA, the ‘Future Size and Shape Strategy’ was followed in 2005/2006 by further measures to control costs, such as modernizing labour practices and reducing overheads to compete in a global context. The follow-on to the ‘Future Size and Shape Strategy’ is the ‘Fit for 5’ strategy, as the company prepared to move to its own dedicated Terminal 5 at Heathrow Airport in 2008. This strategy also included the pursuit of operational efficiencies along with investment in training for staff and new product development to enchance the company’s reputation as a global airline. In November 2005, the company targeted a 35 per cent reduction in its managers, reducing the number by 1 715 by March 2008. This was in pursuit of a 10 per cent operating margin to further invest in the airline. This will reduce the number of middle managers by 30 per cent, helping to simplify its core business. In addition, BA sought to restructure the company’s pension scheme and in September 2007 announced US$8.2 billion of orders for new Airbus A380 and Boeing 787 Dreamliner aircraft to replace its ageing fleet of long- and medium-haul aircraft. This was also seen by analysts as an important step forward for the company after a protracted period of financial restructuring in pursuit of its 10 per cent operating profit margin which it achieved in 2008.

Chapter 6

The aims and objectives of DMOs and e-marketing and distribution

Overall, the DMS represent and should afford digital platforms providing the functionality and the services to synthesize and meet the divergent needs of all destination stakeholders (e.g. DMO, accommodation providers, intermediaries, visitors’ attractions, residents and activists’ groups ...) as well as e-empower them to achieve their roles in a more sustainable way. In other words, the DMS can and should play a catalytic role in sustainable destination management and marketing by aiming to (Sigala, 2012d; Sigala & Marinidis, 2012):

  1. support and foster the economic development of the destination. The economic role of DMS can be subdivided into the following aims:
    • empower tourism firms (specifically the SMTEs) to exploit and use ICTs for e-commerce and e-marketing purposes in order to reduce their expenses (e.g. distribution costs and commission, attract a wider international audience with less resources, globally disseminate and update multimedia information in an effective way) and increase their marketing effectiveness (e.g. provide personalized services, develop customer relations, collect and exploit customer intelligence).
    • improve the performance (reduce costs and/or increase outcomes) of tourism information centers by digitizing their operations related to: the provision of tourism information; customer services; and sales-marketing activities such as public relations, development of customer relationships and communication.
    •  globally e-promote the destination, create, manage and e-disseminate its image, brand name and resources in order to create and attract more tourism demand and increase tourism spending at the destination
    • diffuse tourism demand at the destination spatially but also through time in order to reduce seasonality; manage the flow of travellers and carrying capacity as well as to support regional development for enhancing the socio-economic development and quality of life of citizens located at peripheral areas. To achieve this, DMS should promote, educate and inform tourists about all the geographically dispersed tourism resources in destinations so that tourists visit wider geographical areas instead of concentrating and staying in all-inclusive resorts. This would lead them to spread their expenditures, spending money across more tourism firms and all over the year, avoiding using specific tourism capacities extensively during certain time periods.
    • increase the competitiveness of the destination in order to: attract more investors; maintain local entrepreneurs and increase their entrepreneurial activity; provide and create employment opportunities etc.
    • providing a platform in order to increase the collaboration and networking of tourism firms, e.g. e-procurement services, collaborative e-marketing, co-development and co-marketing of thematic routes such as wine tourism.
  2. promote the socio-cultural development of the destination: this DMS role can be achieved by meeting the following sub-aims:
    • create an electronic platform enabling the local community and travellers to meet and communicate with each other, exchange and share their cultural values and interests, overcome stereotypes and cultural misunderstanding and achieve a better cultural mix
    • electronically preserve, promote and interpret the cultural and heritage resources of the destination
    • enabling the local community to actively engage in the creation and promotion of the destination image and resources
    • support e-democracy and collaborative destination management by providing the local community with the tools and ways to participate in the tourism development policy making and implementation processes: to that end, DMS should first educate and make the community aware of the current situation and problems, and then, provide a platform for gathering, consolidating and synthesizing different stakeholders' voices for designing and implementing tourism development strategies
  3. support the environmental development of the destination by achieving the following aims:
    • using ICTs (like geographical information systems) for measuring and managing the carrying capacity of regions and identifying areas that need protection, further development and/or better management
    • inform the local community, the tourism suppliers and the travellers about the environmental sensitivities of the destination, while also promote and educate them to adopt certain codes of behavior and ethics for protecting the destination while they are exploring the destination and developing their economic activities.

Despite this multi-dimensional role of DMS for the sustainable development, management and marketing of destinations, the majority of tourism literature has focused on discussing the marketing services and functions of DMS as well as their role in interpreting and promoting destination heritage and cultural resources (e.g. Wang & Fesenmaier, 2008). On the other hand, ICT exploitation by DMS for supporting environmental protection and management of destinations, as well as destination governance and stakeholder collaboration, is very limited. This is in contrast to the increasing adoption of e-government and e-democracy practices afforded by Web 2.0 in order to empower and allow a larger part of the population to participate in the decision-making processes and public governance issues. These e-democracy applications also offer numerous opportunities to DMOs to further engage the various tourism stakeholders in the collaborative decision-making and policy development processes related to destination management. Current trends to move towards community-based destination management and development governance models, as well as more collaborative destination management practices for balancing the (conflicting) stakeholders’ interests, also justify the adoption of e-government and e-democracy practices by DMS that wish to support sustainable destination management (Sigala & Marinidis, 2012).

e-Democracy aims to enhance the quality of democratic processes by broadening citizens' participation in democratic processes and assisting the application of direct democracy on a large scale. Broadening refers to the increased active and effective participation of citizens in all stages of public decision-making (referring to: problem identification, setting and understanding; development of policies, directions and solutions; implementation of decisions; and evaluation of decisions) with increased power, interactive communication and collaborative decision-making and with possibilities to set and negotiate the agendas of decision-making processes. Thus e-democracy empowers people to participate in bottom-up decision processes, to make informed decisions, and to develop social and political responsibility, create transparency and reduce corruption.

In a similar vein, DMS can develop e-democracy and e-government functionality for empowering tourism stakeholders to actively participate in destination development and governance. Sigala & Marinidis identified and gave numerous examples of e-democracy functionality and services that DMS could develop to empower tourism stakeholders’ in destination management and governance. This functionality should support stakeholders' participation in collaborative decision-making at the following levels:

  1. e-information referring to a one-way channel that informs stakeholders about a variety of resources available and the current destination situation/problems;
  2. e-consultation  which is a limited two-way channel aiming to gather feedback from stakeholders, but without DMOs being obliged to use and incorporate this feedback into their decision-making processes;
  3. active e-participation which is a more enhanced two-way channel where stakeholders have more power over policy formulation and decision-making processes.

Table 1 provides several examples of DMS services and functionalities for supporting destination marketing and e-governance.

Table 1 DMS services and functionalities for destination marketing and e-governance

DMS Service

Examples of critical DMS functionality

Destination Marketing

Virtual Information Space: the creation, maintenance, management and publication of the website’s content defined as the combination of functional information and motivating visuals that encourage the user to plan and realise a trip to the destination

  1. provision of quality, interactive, multimedia and edutainment information:
    1. tourism information should be provided for all 4As of the destination, (Amenities, Accommodation, Accessibility, Attractions)
    2. provision of specialised content such as gay & lesbian tourism
    3. multilingual information and information in different formats, e.g. in pdf, downloadable to mobile devices etc
    4. continuous update of information
    5. multimedia information for interpreting tourism resources as edutainment
    6. provision of suggested itineraries
    7. provision of user-generated content and development of social networks 
  2. multiple and interactive ways for searching and filtering information:
    1. website accessibility and navigation for people with disabilities
    2. provision of several search engines for finding information (e.g. based on location, type of experiences, specific supplier, etc.)
  3. provision of personalised information and recommendations:
    1. personalised services such as: RSS updates, blogs, newsletters, e-mail campaigns etc
    2. Itinerary and trip planning tool (e.g. http://www.visitbrighton.com) whereby travellers can design their travel experience by finding and plotting on the map places and suppliers they wish to visit at the destination
    3. recommendation systems that find the travel experience and supplier that matches the travelers' profile
  4.  content and/or mini-portals development for specific travel segments such as:
    1. individual travellers
    2. business travellers
    3. tourism suppliers
    4. convention & meeting planners
    5. expatriates & local residents
    6. journalists and media (e.g. press releases and press kits)

Virtual Communication Space: developing interactive communication with and amongst several stakeholders by using different devices and media

    1. DMO-2-traveller communication: this should use several media (e.g. call me back options, e-mail, blogs, newsletters, chat, forums etc.) in order to provide customers information and services wherever they are and at whatever device they use (e.g. mobile, PC etc.)
    2. communication of the website to search engines and portals for improving Search Engine Optimisation and Search Engine Marketing
    3. buying and using a URL with a .travel domain name, e.g. www.visitegypt.travel
    4. communication amongst travellers and local community: functions such as "ask the locals", social networks amongst travellers, wiki applications whereby everyone can upload his/her own content and start a communication with others (e.g. www.visitlondon.com social networks, www.visitjordan.com a wiki application whereby any local stakeholder can update with cultural events, www.visitbrigthon.com find and liaise with a local - buddy for exploring the destination with him/her)

Virtual Transaction Space; functionality supporting online purchases and order – booking processes

  • Booking engine with online availability and prices
  • Secure socket layers and technology to assure secure online transactions
  • privacy policy and technology to guarantee the appropriate collection, storage and analysis of personal data
  • multiple payment options, e.g. many credit cards, paypal, money transfer, debit cards etc.
  • booking engine with multiple search engines through which the traveller can find, filter and compare alternative products and suppliers very easily
  • personalisation - recommender systems for enabling upgrades, cross-sales and up-sales of complementary and/or substitute products in case of lack of availability
  • dynamic packaging tool
  • a special section with last minute deals and online promotions

 

Virtual Distribution Space : distribution of DMS services to many devices and media

  • Internet
  • mobile devices such as iPhone
  • navigation tools and devices (e.g. in rented cars etc.)
  • digital TV
  • information kiosks
  • Blu-ray and DVDs
  • printed material
  • call centres
  • information centres and offices
  • creating and developing profiles in Social Media and social channels, e.g. a youtube.com channel, a profile on facebook.com, an account on delicious.com etc. (more see section on web 2.0)

 

Virtual Relationship Space: developing and nurturing customer relation

an (e)-CRM strategy may include: e-mail newsletters; special offers/best buys for club members; direct e-mail campaigns; free news updates; personalization/customization services; privacy policy; incentive programs; cross-selling/upselling opportunities; secure transactions; customer loyalty programs; social community functions.
Destination loyalty cards: For example, destination loyalty card (http://www.engadincard.ch/) that provides to its cardholders access to special prices and offers, possibility to personalise travel itineraries and tourism products-services etc. Travellers also gather points whenever they purchase and make bookings at different firms at the destination, which they can later exchange for free travel services or products at the destination as well.

e-governance – e-democracy services

To collect stakeholders' feedback, opinion and information in order to identify and prioritise problems and issues

e-Consultation: forums, blogs, wikis that allow stakeholders to contribute their opinion, either privately or publicly, on specific issues, e.g. use a wiki whereby stakeholders can share their expertise and collaborate on the formulation of a legislation, policy or destination marketing budget formulation and allocation

e-Campaigning: stakeholders using web 2.0 tools (e.g. blogs, groups in social networks) for lobbying, petitioning and other forms of collective action. For example, ecologists starting up a group on Facebook running a petition to protect a region from tourism development
EXAMPLES: www.standagainstpoverty.org
e-Deliberation or e-discussions: chat, forums, virtual worlds that support virtual, small and large-group discussions, allowing reflection and consideration of issues. For example, using SecondLife for conducting an open dialogue with several stakeholders
EXAMPLES: www.ili.gr (contest for policy formulation for the redevelopment of an area), http://dialogues.listeninigtothecity.org
EXAMPLES: www.hearfromyourmp.com, www.writetothem.com, http://www.number10.gov.uk/news/webchats
e-Mediation: web-based discussions aiming to resolve disputes or conflicts
EXAMPLES: http://ec.europa.eu/yourvoice/consultations, www.democracyforum.org.uk
e-Polling. asking stakeholders to vote or evaluate specific policies or solutions for measuring public opinion and sentiment (stakeholders' opinion is not policy binding)
EXAMPLES: www.euoparl.europe.eu , www.tellparliament.net, www.askbristol.com

To provide stakeholders the tools to enforce and push the appropriate implementation of policies and collaborative actions by creating transparency and awareness of policy implementation or non implementation

To monitor and evaluate the results of policies and collaborative actions

Use of web 2.0 tools (e.g. blogs, forums, social networks etc.) so that stakeholders:

  • pressure governments and DMOs to implement policies accurately: e.g. stakeholders uploading videos and photos showing on a publicly available map regions whereby DMOs need to take action, e.g. clean a beach
  • report offenders to government: submit online offenders

expose offenders of government regulation: e.g. publish material and evidence on websites showing which firms and how they do not obey to certain policies
EXAMPLES: www.soundcopyright.eu/blog (for enforcing the implementation of regulations on copy right), www.fixmystreet.com (for reporting and monitoring the implementation of projects), www.safeline.gr (for reporting the infringement of laws), www.pledgebank.com

References:

SIGALA, M. & Marinidis, D. (2012). e-Democracy and web 2.0: a framework enabling DMOs to engage stakeholders in collaborative destination management. Tourism Analysis, Vol. 17
SIGALA, M. (2012). Developing Destination Management Systems (DMS): roles, functionality and future trends. In Goncalo Poeta Fernandes, Anabela Oliveira da Naia Sardo and Antonio da Silva Melo (Eds.) "Innovation in Tourism & Hospitality (with proceedings of the international symposium on innovation in tourism and hospitality - ISITH)", published by Instituto Politecnico da Guarda, ISBN: 978-972-8681-31-9

Web exercise 6.2

  • Select 5 DMS Internet portals (e.g. www.visitlondon.com) and evaluate their functionality and services.
  • Identify best practices as well as functionality that they need to improve and/or add for supporting sustainable destination management.
  • Search the Internet for evaluating how the DMS portal exploit the SM internally (e.g. use of RSS on the website, destination blog) but also externally (e.g. a profile of the DMS on the Facebook, youtube.com). how DMS can further enhance their SM exploitation for destination marketing
  • Identify some e-metrics that DMS can use for monitoring and evaluating their e-marketing performance 

Benefits of e-solutions for tourism value chains

e-Procurement is an Internet technology solution facilitating corporate buying using the Internet. Procurement and supplies in tourism firms may refer to many and various goods for general and/or tourism specific use. For example, hotels procure food and beverage items, cleaning materials, consultancy services and many others, while corporate travel agents and event organisers may wish to procure hotel rooms, airline seats and performers' services. E-procurement aims to automate workflows, consolidate and leverage organizational spending power and identify new sourcing opportunities online at a global scale. E-procurement tools include:

  • e-procurement software (e.g. traditional EDI e-procurement systems that migrated to the Internet and enable employees to purchase goods from approved electronic catalogues in accordance with company buying rules);
  • B2B auctions referring to events in which multiple buyers place bids to acquire goods/services at an Internet site;
  • B2B market exchanges that bring together multiple buyers and sellers in one central virtual market and enable them to buy/sell from each other at a dynamic price and purchasing consortia (e.g. www.e-dmc.com and www.desination.pro marketplaces supporting the global sourcing of event organisers and destination management companies (DMC));
  • Internet purchasing consortia that gather the purchasing power of many buyers to negotiate more aggressive discounts (for example, yassas.com aggregates procurement demand of Greek hospitality operators, avendra.com aggregates demand of hotel properties affiliated mainly with three major hotel chains, while www.dmcnetwork.com represents a consortium of 26 DMC companies offering numerous procurement opportunities).

ICT advances have enhanced the integration and information functionalities of these tools by converting them to applications that support collaborative supply chain management across all aspects of the tourism supply chain (Sigala, 2004). Some of the major functionalities of e-procurement systems include: payment processing and handling; inventory management; logistics; early warning procurement systems; just in time; production scheduling; order management and monitoring; supply chain synchronisation.

 E-procurement tools provide benefits including: lower administration costs, inventories and purchasing prices; shorter order-cycle-time; enhanced cooperation with suppliers; integration of multi-chain operations; cost savings resulting from reduced paper transactions, shorter order cycle time and the subsequent inventory reduction. They also provide Just-in-Time inventory and procurement practices; enhancement of supply chain efficiency by providing real-time data regarding product availability, inventory level, shipment status, production requirements; facilitation of collaborative planning among supply chain partners by sharing data on demand forecasts and production schedules that dictate supply chain activities; market responsiveness and firm agility by linking customer demand information to upstream supply chain functions.

E-human resource management (e-HRM) refers to internet applications enabling firms to digitise operations such as: payroll; recruiting; staff training and development; staff evaluation. Technology has enabled firms to reduce the administration expenses of these operations, while enabling the human resource department to synchronise its task with the needs and developments of other departments such as production and finance. Global sourcing is also reported as one of the major benefits of e-recruiting, as it gives tourism firms the ability to identify and recruit the best skills and competencies at an international scale as well as to address the needs for a multi-cultural and diverse workforce that the tourism industry requires. Currently, the networking and social intelligence capabilities of Social Media are also exploited by many tourism firms for identifying (through social networks) and more holistically evaluating potential candidates (e.g. through personal information diffused in Social Media). The e-learning affordances of the Internet are also reported as a critical e-HRM application offering substantial business benefits and enabling Small and Medium Tourism and Hospitality Enterprises (SMTHEs) to have access to knowledge and training which they would not have been able to afford otherwise. So, because of its ubiquity and interactivity, the Internet offers e-learning opportunities with great place and time flexibility to match the specific conditions of work within the sector (e.g. work-based learning opportunities; employees can be trained while remaining at the workplace). E-learning also provides effective, flexible, personalised and updated training. Thus, it is not surprising that many Destination Management Organisations (DMO) are continuously providing online courses for supporting the SMTHEs and the development of capacity in their destinations. E-learning can also foster collaborative learning and many tourism chain operators are complementing peer support and development through e-learning platforms that support the share of tacit knowledge and best practices amongst their staff. E-learning is also preferred because it acclimatizes staff to the changes and ICT applications taking place in the tourism workplace as well as it improves the staff's ICT literacy and skills. 

The major transformational and beneficial impact of Internet applications on tourism firms has been on all e-distribution, e-marketing, e-commerce and e-customer service operations, as it is easily observable by the numerous publications on these fields and the paradigm shift in the dynamics, competitiveness and innovation in the e-tourism distribution chain. The Internet is a sales, communication, customer service and distribution tool that provides numerous benefits to both travellers and tourism firms. Customers benefit from place and time convenience, speed, interaction, variety and easy comparison of goods, and service personalisation. Tourism firms gain performance benefits through:

  • direct distribution and contact with customers (which reduces distribution costs and builds customer ownership);
  • global, cost efficient and effective customer targeting;
  • collection of customer intelligence that can be used for understanding customer behaviour and personalising and segmenting the market;
  • enhanced customer relationship building;
  • automation of distribution tasks, reduction of administrative tasks and labour savings;
  • enhanced agility and flexibility by responding to demand requirements, competitive trends and sales level at real time;
  • use of multiple distribution channels for enhancing online visibility and sales.

Nowadays, the distribution channels, social intelligence and social networking features of Social Media further enhance the capabilities of the firms to: increase online exposure and distribution coverage; collect richer customer information for market research and segmentation purposes; exploit social networks and UGC for more effective e-WOM promotions. Social Media advances have developed e-commerce into social commerce, while recently the integration of social, local and mobile applications have led to a third stage of e-commerce referred as SoLoMo. SoLoMo applications further enhance the targeting and marketing effectiveness of tourism firms communications and distribution practices.

Recently, we have been experiencing an increased use of the Internet and Social Media by the tourism firms for managing crises. Tourism firms are highly vulnerable to many crises being minor or major in scale, size and type (economic, environmental, political, cultural). So, a crisis in tourism may be created by an earthquake, food poisoning, virus outbreak, riots or even customers complaining or affecting the brand image of the firm. Crises can be more effectively managed at all stages (i.e. before, during and after the crisis) when using Social Media (Sigala, 2012c). It is important to conduct environmental scanning for monitoring the online business environment, identifying potential crises issues and operating alarm/early warning systems (risk mitigation and preparedness); to integrate Social Media into their crisis communications plan and actions (crisis communication planning); to enable effective decision-making, communications and synchronise appropriate actions amongst various stakeholders during the crises (crisis response); to develop and implement effective internet-based actions and communication for crisis recovery and brand repositioning; and to collect information and create a collective memory and evidence for organisational learning and further improvement through post-crisis evaluation and sharing of experiences.

ICT's impact on tourism organisations

Organisations have been divided into functions and departments in order to enable the division and specialisation of labour which in turn facilitates management tasks and enhances work efficiency and effectiveness. The task specialisation of every department also allows the firms to easily track the information required to be captured and managed to support the department's operations. At this early stage, the advent of technology enabled organisations to automate their functional specialised tasks, while also create an audit trail or a full accounting of information when desired or needed. For example, the check-in of guests at the hotel reception or the airline's desks is not anymore carried out manually requiring timing and labour demanding processes. Similarly, marketing and reservation departments do not hold and maintain manual customer databases and reservation calendars. Instead, they are supported by a computer system and application that has automated the task by reducing the quality (job deskilling) and quantity (job downsizing) of labour needed. Moreover, as check-in transactions, customer profile information and reservations are conducted and tracked electronically, the computer system collects data that can be easily and quickly analysed and visualised in statistical reports for supporting decision-making (which is sometimes referred to as real time management). Thus, marketing staff is able to produce details reports of their customers' demographic profile and business profitability, while reservation staff can easily identify the dates and days in which the majority of reservation are received, from which distribution channel and at what average price. Thus, ICT are a necessity for making quick, accurate and timely decisions in a competitive and dynamically changing business environment. Moreover, the division of organizational structure and responsibility in functional departments has resulted in the collection and storage of a massive amount of functional information.

For a while, this separation of data and information into separate organisational divisions seemed to be a good way of organising the firm's data. However, as databases and computer systems began to support information processing, and activities were nestled into functional areas, the functional areas developed ownership of data and information. Hence, front office staff obtaining marketing reports of the guests checking in should have make a request to be processed through the marketing department, which in turn may have much later produced in statistical reports in hard copies and/or in electronic forms not easily integrated into the computer systems and applications of front office tasks. Consequently, separate fiefdoms were born and nurtured within the organizations, which translated ownership of data, and information translated into management control and power. Data segregation also meant that different departments within the same organization often collected and maintained duplicated databases. For example, as there was no direct communication, systems integration and data sharing amongst the various computer systems, customer profile information may have been collected and maintained in front office and marketing departments as well as in various other point-of-sales or customer interaction systems such as restaurant databases, websites and call centres. The maintenance of duplicate and functional segregated databases results not only in increased costs and operational inefficiencies, but also lower customer service and satisfaction. For example, imagine a hotel guest providing personal information and/or the loyalty guest card number at every hotel department, or a guest making a booking through the hotel website and not being able to register his loyalty card, while also when arriving at the hotel, the front-office staff is not yet informed about this online booking (i.e. customer dissatisfaction and opportunity cost of overbookings or under-bookings in case of online booking cancelations). In other words, the development of information systems was aligned and integrated into the organizational functioning and structure of the firms. However, as organizations grow and the problems of data functional segregation (e.g. lack of coordination, dublication of efforts, inefficiencies and lack of customer-focused seamless processes), so too did the organizational needs' for computer systems and their requirements for data collection and processing.

The above mentioned information systems problems were addressed with the advent and development of the communication capabilities of ICT (i.e. their ability to integrate and network/share/disseminate databases and systems in geographical distributed way within and amongst organizational departments as well as beyond organizational borders).  By integrating the computer systems amongst the various functional fiefdoms, organizations were able to solve their problems of communication, collaboration, co-ordination or even synchronization of tasks amongst separate departments. Organizations do not have to enter paper information flows into multiple systems, while customers do not have to call various departments in order to trace and change the status of their booking. Instead, organization have implemented integrated information systems that permit data to be entered once, and then accessed throughout the organization. For example, bookings received from one distribution channel and customer point are entered in a centralized database that is then distributed and shared with all distribution channels. As a result, distribution channels are updated about price and inventory changes on real time and can sell a capacity until the last minute. Similarly, seat upgrades from economy to business class done at the check in desk on the last minute are automatically visible and communicated to operations department for preparing in-flight and boarding services. Thus, the use of an integrated system reduces potential errors from data entry, increases efficiency and effectiveness by supporting functional coordinating and cooperation and it enhances customer service and quality levels by creating a seamless processes and customer-focused organizational structures.

To support the seamless information flows within organizations, firms are adopting Enterprise Resource Planning Systems (ERP), which are gigantic software systems developed to handle all the data within the different organizational departments. ERP are structured in modules frequently representing and supporting the various tasks of the different organizational departments. However, the important thing is that, because the various modules are part of one gigantic software system and the system runs against one database, data common across various functions (for example, a customer reservation) can be viewed and traced by the involved departments throughout the firm. ERP also enable organizations to communicate and share data across organizational boundaries. The electronic support of information flows with business partners enable network of firms and whole supply chains to synchronize their operations for increasing efficiency, customer responsiveness, operational flexibility and so, effectiveness. For example, Sigala (2004) described how the share of data amongst partners in the air transport supply sector (i.e. GDS, airlines, airport authorities, air craft manufacturers etc) enables: a) the various chain operators to increase their individual performance (e.g. airlines receive reports about reservation requests, bookings and customer profiles from various distribution channels and competitors in order to decide about aircraft capacities and prices at various routes, facilitate a more sophisticated yield management, assign aircraft types to different routes based on last minute reservation numbers and identify new routes); and b) the whole air transport supply chain to increase its performance and responsiveness (e.g. passenger information flows automatically to immigration authorities facilitating security controls, baggage information is shared amongst airlines and airports to facilitate the trace and delivery of lost items, incoming transit passengers' data are shared amongst airlines and airports to better coordinate airport passenger services such as business lounges and boarding gates as well as apron aircraft services). Similarly, foodservice operators (Sigala, 2006) sharing data with supply chain partners such as logistics operators and suppliers enjoy the benefits of just-in-time, less inventories, responsiveness and flexibility to customer various demands and levels.

In other words, ICT have enabled and fostered firms to create networks of collaboration within the tourism industry in order to increase their performance and customer service levels. This has resulted not only in a better and seamless functioning of the tourism supply chain, but it has also raised the level of competition in the tourism industry from competition between firms to competition amongst networks or clusters of firms. For example, competition between one airline and another does not exist anymore, but airline alliances compete with other airline alliances and an airline cannot compete nor even survive without being part of an alliance. In a similar way, a hotel does not compete with another hotel, regardless of location, but clusters of tourism firms in a destination compete with other tourism clusters in order to collaboratively design, market and deliver unique and seamless tourism experiences such as wine tourism or gastronomic experiences.

To summarize, several authors (e.g. Sigala 2002; Venkatraman, 1994; Zuboff, 1988) have depicted how the impact of ICT on tourism organizations and the tourism industry has passed through the following three eras or stages of ICT exploitation: automate; inform or hyperautomate; and transform business scope, model and strategy. Table 1 summarizes the characteristics and impacts of these three stages, which are build one upon the other but firms do not have to go through all stages and impacts sequentially. In other words, tourism firms can decide at which level and exploitation level they wish to enter ICT into their business.

Table 1 Impact of ICTs on the tourism firms and industry


Stage of ICT exploitation or ICT era

Characteristic

Business question answered

Impacts

Automate

  • Computers as labour-saving devices automating specialized and standardized tasks

 

  • Know what to task automate and increase efficiency
  • Faster and more accurate completion of repetitive tasks
  • Labour and time savings
  • Less errors
  • Accurate data
  • Deskilling of jobs

 

Inform or hyperautomate

  • Use of stored data to facilitate decision-making
  • use of communication features to share and distribute data across departments

 

  • know how to inform a task to increase effectiveness and redesign internal processes
  • Rise of management information systems (MIS)
  • Real time management
  • knowledge work and workers
  • coordinative effects of a common and unified database, i.e. seamless and synchronized processes
  • changes in the organizational internal structure, which in turn affects roles, power and hierarchy
  • The emergence of team based, problem-focused and flexible work groups, which are often considered as a primary organizational form
  • process re-design

Transform

  • Redefinition of the scope and aims of firms
  • Evolution of business models and practices towards more collaboration, networking and virtual enterprising
  • know why to exist and compete in order to redefine business scope and redesign business networks and models
  • obtain and sustain competitive advantage
  • competition at cluster and/or network level
  • boom of inter-firm relations and collaborations
  • innovation in business models and strategies, i.e. more virtual enterprising
  • firm's network redesign

The impact of social media on the tourism sector

Social media has also changed the tourism supply side. The tourism and hospitality industries are confronted with a substantially different information ecology, communication paradigm (Figure 1), distribution landscape, and competitive environment. This creates a need to redefine business models, inform management processes, and rethink operational practices to exploit social media-enabled opportunities by integrating customers, their social networks and social intelligence into the business value chain (Sigala 2012b; Chalkiti and Sigala 2008). This paradigm shift requires firms to acquire knowledge of the social media opportunities, their users, their uses and their by-products such as user-generated content (UGC), social and market intelligence and social networks. For example, by collecting and analyzing real-time, cheap and accurate consumer information, tourism firms can exploit social media to inform and network business operations such as new service development, customer relationship marketing, complaints and quality management, market research, reputation monitoring and brand building (Sigala et al. 2012). By following the trends in open innovation, crowdsourcing and co-creation, many tourism firms also use social media to actively integrate their customers and other partners in operations including service design and production, crisis management and innovation (Sigala 2012b and 2012c).

Figure 1 Business communication matrix and transformation enabled by social media

SENDER

 

customer

Monitoring, validating, controlling and integrating UGC and social intelligence to inform business operations

Customer communities: exploit them for market research, new service development, customer loyalty, brand building and image enhancement

 

organization

Inter-organizational networks for: building flexibility and agility; collaborative practices; integrating supply chain operations; open innovation etc.

Customer communication: traditional marketing practices digitized and enriched with ICT applications

organization

customer

RECEIVER

Adapted from: Reuter, C., Marx, A. and Pipek, R. (2011). Social Software as an Infrastructure for Crisis Management – a Case Study About Current Practice and Potential Usage. Proceedings of the 8th International ISCRAM Conference – Lisbon, Portugal, May 2011 andSIGALA, M. (2012). Social media and crisis management in tourism: applications and implications for research. Information Technology and Tourism, Vol. 13, No. 4,

The most obvious influence of social media on tourism firms has been on the increase in the number and variety of electronic channels and platforms which tourism firms can use for e-commerce and e-marketing (Hays, Page and Buhalis 2012). Table 1 provides examples showing how tourists and tourism organizations exploit some of the major social media tools for e-business and e-marketing purposes. It is apparent that social media exploitation can be distinguished as internal (when a traveller/firm creates and exploits its own social media platforms) and external (when a traveller/firm exploits existing social media tools and platforms for its own purposes). Both internal and external use of social media is desirable to maximize the online buzz, the visibility and the promotion of the firm (ee.g. more external links directing to the company’s website will increase the website’s search engine optimization results).

The second major influence of social media has been the impact of their social intelligence, UGC and social networking capabilities to move e-commerce to another stage, usually referred to as ‘social commerce’ or ‘social shopping’. Social commerce involves the use of social media to assist in the online buying and selling of products and services and to facilitate online transactions-commerce. Examples of social media tools that are used to support social commerce include: customer ratings and reviews, user recommendations and referrals, shared pick lists and shopping carts, user ratings, social shopping tools (sharing the act of shopping online), forums and on-line communities, social media optimization, social applications and social advertising. Research has found (Grange and Benbasat 2010) that the purchase behaviour of social shoppers is influenced by:

  • customers’ product reviews;
  • online shoppers’ profiles, which enable customers to evaluate who a shopper is, his/her reliability and to match their own profile and interests;
  • shoppers’ generated product and wish lists, which provide shoppers withdirect access to products and future recommendations; and
  • lists of online shopping friends, providing direct access to other shoppers’ profiles (i.e. access to people-related informational resources such as who the shopper is and what are his/her interests) as well as access to the product-related informational resources created by these shoppers (i.e. indirect access to shopper-generated product information such as whether the shopper would recommend the product, and what he/she thinks the pros and cons are).

Preliminary research described in the social shopping literature (e.g. Kozinetz 1999; Grange and Benbasat 2010) has shown that customers use online social shopping settings, because they seek both utilitarian (search efficiency, ease of decision-making) and hedonic (fun, exploration of new ideas, fashion consciousness) benefits. Firms benefit from using social commerce because the persuasion power of other customers’ e-WOM is more effective than firm-produced information. They can also use customers as co-marketers to reduce marketing expenses as customers spread information to their social networks effectively and collect rich customer intelligence cheaply. Overall, two types of information resources published in online social shopping contexts influence the purchasing behaviour of social shoppers and provide them with utilitarian and hedonic benefits: (a) information produced by shoppers and which pertain to the products (e.g. product reviews, ratings, scores, lists of favourite products, lists of favourite brands); and (b) information resources produced by online shoppers that pertain to shoppers themselves and their relationships with others (e.g. shoppers’ interests and hobbies, their friendship networks, their membership of certain shopping-related communities).

The integration capabilities of ICT (i.e. the ability of various devices, communication networks and databases to communicate with each other) has enabled social media to integrate with local and mobile media which has lead to a third stage of e-commerce currently referred to as SoLoMo (social, local, mobile) which provides various benefits (functional, financial and hedonic) to all tourism stakeholders, suppliers, travellers, intermediaries, advertisers etc. With SoLoMo applications, retail deals, coupons and consumer events as well as retailing and leisure opportunities are broadcast to a mobile user from a specific supplier based on that user's geographic proximity, brand/retailer allegiance and users’ shopping/check-in history. The timing and location targeting and market segmentation opportunities are vast. Foursquare.com, gowalla.com and shopkick.com are three of major examples of SoLoMo, while many tourism firms also use Facebook places application to allow users to check-in in their shops, receive special discounts and follow other shoppers.

Table 1 Examples of social media exploitation in tourism


Social media tool

Exploitation examples: tourists

Exploitation examples: tourism firms

Blogs (weblogs): a website consisting of dated entries, whereby entries are episodic or conversational in a diary or ‘‘story telling’’ format

Travellers create their private blogs to publish and share travel-related experiences

Examples of professional tourism-related blogs enabling the publication and sharing of professional knowledge:

aboutourism.wordpress.com
www.ufi.org/ufilive
networkedblogs.com/amLMp
web20travel.blogspot.com
blog.cvent.com/blog/cvent
energise2-0.com

Use of blogs for:

  • monitoring and influencing e-WOM;
  • conducting easy, free, timely and reliable market research about travellers’ preferences, feedback and profile;
  • communicating with current and prospective travellers in a very personal and informal way;
  • gathering travellers’ feedback and responding to customers’ complaints;
  • enhancing search engine optimization

 Ways to exploit blogs:

  1. Develop a company's blog as a communication tool.
  2. For example, www.blogs.marriott.com, blog.experiencela.com. Starwood created the blog www.thelobby.com to communicate with its Preferred Guests and enhance their loyalty.

  3. Link/affiliate relationships with other relevant blogs.
  4. Enable users' blogs on the company's site

For example, Eurostar has initiated a blog and has commissioned local Parisians to post blogs to create a travellers’ guidebook with a ground-roots feel. Sta travel allows travellers to create and maintain their own travel blogs on its website blogs.statravel.co.uk.

Social networking: users create a profile ad invite others to join their network and share content

Travellers use social networks to identify and co-create travel itineraries, e.g. traveltogether.com and travelpost.com enable tourists to create an itinerary and share it online with others, who in turn can edit, modify and enhance it, post it to others for further comments and/or invite and read other travellers’ comments and advices on the trip they organized in order to finally achieve a consensus and proceed to a group booking.

Travellers may use social networks for socializing and exchanging experiences and content with others, e.g. www.wayn.com (general travel social network) or www.cellartracker.com/new (a social network specializing in wine tourism).

1. Companies can develop and maintain their own social networks to create a community around their brand which in turn can nurture the consumers' brand loyalty and involvement with the band/firm, as well as increase the brand image and recognition of the firm. For example, Yahoo! Trip Planner is a collaborative trip organizing and booking tool enabling travellers to create private or public networks for collaboratively creating a trip.
Lufthansa created Jetfriends to enable its young flyers to share flight experiences and indoctrinate them into the Lufthansa brand and frequent flyers’ club (www.jetfriends.com/jetfriends/kids)
2. Companies can create a profile in existing social networks and exploit the network and UGC of these sites. For example, the profile of KLM in Facebook (www.facebook.com/?sk=welcome#!/KLM) or the profile of Northern territory destination organization and Hyatt Caribbean in www.wayn.com.
3. Create a social network to support open innovation and new service development. e.g. www.mystarbucksidea.com  a crowdsourcing social network website created by Starbucks to support idea generation, evaluation and selection for new service ideas.

Wiki: a server software permitting users to create and edit content online and in real time

Travellers use wikis for co-creating guides, e.g. www.wikitravel.org or www.cruiserswiki.org/ (cruising guide).
Wikis integrating web map applications, e.g. www.wikimappia.org  an online social guide whereby users store, create, share, visualize and search travel information on the top of a map.
A wiki is used for interpreting, discussing, saving and sharing content about heritage resources, e.g. www.fotopedia.com

The National Library of Australia has included a wiki (wiki.nla.gov.au) on its portal inviting users to share their understanding and knowledge of local Australian dances as well as negotiate their meaning and create metaknowledge by synthesizing different views and perspectives.
Ancient Times website (ancient.arts.ubc.ca/community.html) includes several collaborative tools, such as a wiki, blog and an arts metaverse enabling any user and history student to collaboratively develop and negotiate the meaning and construction of old cities and destinations, such as Giza and Athens.

Podcasting: social networks where users share audio or video files

Travellers use podcasting sites for storing, sharing, commenting on video/audio travel content, e.g. youtube.com, vimeo.com or travel specialized sites, e.g. tripr.tv, and mytravelnetwork.com.
Travellers maintain their own podcasting websites for uploading and sharing audio-video files that interpret and share their travel experiences, e.g. www.listentoafrica.com  

Companies create their own profile (channel) on podcasting websites for broadcasting audio and/or video content.
Companies provide audio or video content through their websites, which customers can download to their smartphones or mobile devices and use it as a mobile guide, e.g. Visitlondon.com podcasts guides of London, The British Museum website providing audio guides of its exhibits (www.britishmuseum.org), and Virgin Atlantic providing travellers destination audio guides while on board.

The role and impact of the Internet on tourism distribution

In tourism, distribution is of vital importance: tourism suppliers need to be visible and available at multiple sales-points, as suppliers are located in one place while their potential clients are geographically widely dispersed; product information flows need to be multimedia rich and accurate to communicate the service quality and credibility of suppliers, since tourism is an intangible experience that cannot be evaluated before purchase; timely marketing flows are required, as tourism is a perishable good. Thus by connecting tourism demand with suppliers, the tourism intermediaries provide significant product, possession, place, credibility and time benefits to both travellers (e.g. information/consultancy services, distribution of travel documents) and tourism suppliers (e.g. points of sales, collection of payments).

Due to its information and communication capabilities, ICT has had a catalytic influence on the operations and structure of the tourism distribution chain because: information is the lifeblood of tourism distribution; information flows are the glue connecting all distribution members and facilitating the performance of all other marketing flows; and the nature of the tourism product requires the timely, accurate and multimedia rich exchange of information amongst distribution chain members. The Internet has further changed the electronic tourism distribution by providing: a free and open platform as a 24-hour point of sale with a global reach; interactive and multimedia rich information flows and exchanges; and an increase in the number of internet-based sales-points (e.g. computers, tablets, TV, smart phones, wireless internet access points); an efficient and effective e-marketing tool; a collection of rich customer, market and competitor information; and an efficient tool for searching, evaluating and visualizing a huge amount of information. In other words, the Internet is an efficient and effective platform of tools enabling the members of the distribution chain to conduct and enrich the marketing flows with more and better services and fewer costs (Table 5).

The Global Distribution System (GDS) was the first electronic distribution channel in the tourist industry. The GDS was created by the major airlines, when they combined their CRSs (computer reservation system) to provide a single database allowing the search of flights’ availability and price as well as the processing of bookings and purchases. The GDS was later developed into an electronic one-stop marketplace of various tourism products/services, as many other suppliers (e.g. hotels, cruise and train operators, destination management organizations (DMOs), car rental firms) connected their CRS (manually or electronically) to the GDS. The GDS was initially accessible through travel agents, but when the Internet arrived the accessibility of the GDS was widened by developing Internet interfaces and communicating directly to travellers (e.g. www.travelocity.com is Sabre’s internet access point). The GDS supports and facilitates the performance of many marketing flows in tourism distribution (e.g. product information, marketing communication, printing and distribution of tickets/vouchers, payments and distribution of funds to airports, airlines). In other words, the GDS acts as an intermediary connecting tourism suppliers with tourism demand and performs many marketing functions in the distribution chain which are paid for either by the suppliers (e.g. promotion fees, reservation fees, fees for providing market intelligence) and/or the travel agents (e.g. access fees). As the GDS was an expensive electronic channel, it has been mainly used by large tourism suppliers, who could afford the GDS distribution costs and had a critical need to be bookable at the various GDS points of sales (i.e. travel agents) generally used by the profitable corporate travel market.

The advent of the Internet has revolutionalized the electronic tourism distribution chain, as the Internet not only offers tourism suppliers an efficient and effective distribution channel, but also provides them with the opportunity to bypass intermediaries (including GDS), save distribution costs, and ‘own’ the customer by communicating directly with the traveller. The Internet has also empowered small and medium tourism and hospitality enterprises (SMTHEs) that could not afford the expensive GDS, to develop international distribution. Consequently, all types of tourism suppliers have created their own presence on the Internet (e.g. hotels, B&Bs, DMOs, Destination Management Companies (DMCs), event organizers, train and other transport operators, food and beverage providers). Faced with the risk of being bypassed by tourism suppliers, the tourism intermediaries (e.g. GDS, travel agents, tour operators) are also exploiting Internet tools to create an electronic point of sale, enrich their online distribution services in order to improve their competitive strategy and ensure their survival.

The Internet distribution necessitates the provision of new services (e.g. electronic payments, user authentication, search engine optimization services) to support the marketing flows taking place through the Internet. Specialized Internet distribution services are also required by both travellers and suppliers, as the huge amount of information published and shared on the Internet has created confusion for customers searching for relevant information as well as for suppliers wishing to monitor online brand reputation and better manage and control their information through multiple technology platforms and applications. Therefore, many new travel intermediaries have been created providing specialized internet distribution services such as channel management systems and online brand reputation services, as well as shopping bots to facilitate customers’ online searches. In addition, the Internet has created opportunities to develop innovative ways of marketing (e.g. digitization of service experiences, virtual worlds for product simulations, online auctions, dynamic packaging systems, social marketing services, online coupons) and provide enhanced distribution services. For example, intermediaries offering online meta-search engines allow customers to compare prices across many websites with only one search; some websites use systems processing electronic payments in new ways (e.g. Paypal); virtual communities collect customer feedback (e.g. tripadvisor.com) helping to reduce the risks for travellers booking online; SoLoMo (social, local, mobile) e-marketing functionality and applications enable tourism distributors to enhance the place, time and product utility of their distribution services by providing travellers with localized and personalized product and price information at the appropriate moment. Recent advances in social media are making a significant and twofold impact on the tourism distribution chain: (a) they have further multiplied the number and types of (new) tourism e-distributors by enabling them to create innovative business models and to provide new and/or internet-specialized online distribution services; they have multiplied the number and type of platforms for tourism e-channels, e.g. social platforms such as Facebook and Wikipedia.org; Google applications such as google maps and Apple Store have evolved as tourism intermediaries, as they are becoming the preferred points of entry for travellers for travel searching, and shopping; and (b) they have empowered travellers to actively participate in the distribution chain by performing and supporting many distribution functions and marketing flows (e.g. e-WOM, customer review websites, social guides in wikis) or even becoming the e-distributors of their own tourism products (e.g. c2c transactions/auctions).

Table 1 provides examples of how the Internet has revolutionalized the electronic tourism distribution chain by: (a) enabling the development of new intermediaries or innovative distribution services supporting the marketing flows; and (b) empowering travellers to actively participate and support the marketing flows of the tourism distribution chain. Table 1 is also a very useful tool as it can help entrepreneurs and innovative firms to generate ideas on how they can exploit ICT to develop innovative distribution services, enriching their marketing flows and differentiating their distribution services to gain a competitive advantage in the tourism distribution chain.

Table 1 The impact of the Internet on the marketing flows of the tourism distribution chain

Marketing flow*

Examples of tourism intermediaries with innovative business models or distribution services supporting the marketing flows

Examples of customer participation in the tourism distribution chain supporting the marketing flows

Information flow

Innovative distribution services related to information search and visualization:

Innovative ways to visualize data searches:
 www.google.com/hotelfinder
 www.google.com/flights
Information transparency of product features and product prices: www.Room77.com is a meta-search engine searching and comparing hotel prices across many websites within one screen, also showing retail rates, merchant rates, AAA (American Automobile Association) and senior rates side-by-side in the primary search. This is the only website that currently does this. For example, Kayak simply white labels Travelocity rates and sells them direct. Room77 is pulling actual retail rates from the GDSs. Currently, Room77 not only has by far the largest number of price comparisons across online multiple booking channels, but also has rates not easily found elsewhere. Room77 has also created digital floor maps for more than one million hotel rooms so that travellers can choose which rooms they prefer.
Content aggregators (compilation of content found on several websites):  www.snowcarbon.co.uk is a unique database, developed by leading rail companies. The Journey Planner enables skiers to view and compare the best daytime and overnight journeys for 34 ski resorts in France, Switzerland, Italy, Austria and Andorra, up to 12 months in advance, and includes transfer information from station to resort. The website also provides a Snowcarbon Journey Planner which shows recommended train travel itineraries to ski resorts all over the Alps further in advance and more easily than anywhere else online.
Websites offering data analysis tools for facilitating travel decision-making:

  • www.farecast.com has an algorithm that estimates the probability that a fare will increase for a given city-pair and itinerary.
  • www.fare-compare.com provides the lowest fares by month and date to provide a broad picture of seasonality, although it does not include real-time inventory availability.

www.flyspy.com displays market fares for a city pair in a stock-chart like interface by departure date or return date, and for different lengths of stay.

c2c communications: highlig.ht allows people to find out which of their friends are near a particular location and makes it easy to message them for communicating and/or consuming products together (eat together in a restaurant)

Results of customers’ online searches are used to produce the best daily deals: reservations.airtickets.com/airtickets/com/cache.do?sid=1&xid=1346247300778
c2c communication, blogs, wikis, virtual communities, customer reviews and other UGC providing inter-customer support and consultation on tourism products and services

 

 

Physical/
product flow possession

SoLoMo applications for distributing localized and personalized tourism information and services to mobile devices at the right moment and to the right person and customer communities 

Smart phone tourism applications distributing tourism services and making them available for purchase from mobile devices while travellers are on the move

www.uber.com: an application which recognizes the traveller’s location and allows him/her to request a taxi (supplier product goes to the demand)

People become the distributors of their own accommodation services: e.g. www.campinmygarden.com allows users to advertise and rent their garden online.

Ownership flow

Dynamic packaging applications allow websites to aggregate, source and compile tourism services and information about product availability and prices from various suppliers’ databases, and then allow customers or the website to develop a dynamic (personalized ) tour package.

Customers obtain ownership of travel products and re-sell them to other customers: www.hallst.com: users negotiate/bid with hotels, buy hotel rooms at their prices and then sell hotel roomnights to others (travellers become e-bidders, e-buyers and e-sellers).

Promotion flow

Recommendation software as personal consultants and personal selling providing personalized solutions to customers’ needs: e.g.
www.uptake.com is a ‘smart’ travel-planning engine that learns your needs and shares the travel experiences of others to respond with more relevant results for each user

Facilitating personal sales and support: www.tripology.com will match the consumer with the most suitable travel agent to meet their needs.

Marketing companies and software allow tourism firms to customize their online promotion (e.g. content, offer, pricing, timing and targeting). gnip.com and datashift.com are paid to analyse UGC and social intelligence, e.g. to find all tweets by men who are interested in a new product and live in London. The streams from Gnip and DataSift can be combined with data from more specialized firms that try to extract meaning from social-media data. Lexalytics analyses the sentiment of messages and posts.

Customers become co-marketers and consultants of other travellers through:
c2c communications, virtual communities, blogs, and/or collaboratively written social guides (www.wikitravel.org)

Intermediaries such as www.nileguide.com which sources locals to help travellers navigate the best places and choose the best match for their visit to a destination

Social media applications for personalized c2c (inter-customer support) consultations:

  • Twihotels.com is a Twitter application which allows travellers to tweet hotel queries to their followers
  • www.tripadvisor.com uses the social graph application of facebook, which allows users to see and read the customer reviews of other people belonging to their facebook network. Tripadvisor uses Facebook open graph which is an application allowing facebook users to upload data about where they have been, where they would like to go and where they are going. Based on this open graph, travellers can identify others with similar profiles for providing and/or getting travel recommendations of the places they are going.

Negotiation flow

Opaque models: (e.g. Hotwire.com and Priceline.com): the services’ characteristics are concealed (hotel or airlines brands, exacts hotels’ location or travel schedule) until payment is completed, and online pricing mechanisms such as Name-Your-Own-Price in which, instead of posting a price, the seller waits for a potential buyer’s offer that he can either accept or reject.

Semi-opaque model (e.g. www.guestmob.com): the user searches within one of 20 select US cities by date. Guestmob produces a list of ‘collections’ that typically include 4–8 similarly rated and located hotels, which guests can view by name. Only after guests confirm the booking do they see at which hotel they’ve actually made the reservation.
The channel streamlines the booking process for guests, arranging hotels in like-minded, curated clusters rather than a list of hundreds of properties as on most hotel booking engines. It also allows travellers to see which properties they might be booking. Bookings made on Guestmob are refundable. Guestmob streamlines the distribution process for hoteliers, who only have to release inventory the Thursday before check-in when it’s clear the room is not being sold on other online travel agencies. Guestmob allows hoteliers to maintain rate parity with other channels and still capture full-price bookings on brand.com.
Providers of tools enabling online companies to customize prices to online customers: online retailers are being offered software that helps them detect shoppers who can afford to pay more or are in a hurry to buy, so as to present pricier options or simply charge more for the same product. Cookies stored in shoppers’ web browsers may reveal where else they have been looking, giving clues as to their income bracket and price-sensitivity. A shopper’s internet address may be linked to his physical address, allowing sellers to offer different prices to people living in different cities. For example, Orbitz’s software detects whether people browsing its site are using an Apple Mac or a Windows PC and, since it has found that Mac users tend to choose pricier hotels, that is what it recommends to them.

Intermediaries enabling customers to create and initiate bids in innovate ways and new specialized markets (apart from the well-known eBay platform)

www.backbid.com: a hotel booking site where travellers post their existing hotel reservations and accept bids from alternative properties to find the best value for their upcoming hotel stay (a reversed auction for purchasing hotels initiated by guests)

Zicasso.com: the traveller specifies his needs for travel products and the website qualifies the traveller’s needs through an online interface and the agencies that bid for the business will handle everything from tours, car services, hotels and event tickets.

Risking flow

www.tingo.com monitors any changes in hotel rates travellers have booked and then rebooks them at the lower rate at no cost to the client should the rate drop (provided there are no cancellation charges). The intermediary reduces travellers’ risk as travellers book the particular room they want and wait for the rate to fall closer to the booking date.

Tingo also provides benefits to hoteliers, including longer booking windows (an average of 45 days), longer length of stay, higher average daily rate and bookings made on more expensive, flexible rates.

www.traveltipping.com creates unique travel packages to destinations throughout the world at reduced prices. Guests select a region and each region generates a handful of travel deals, such as four-night stay for two at an ‘eco adventure lodge’ in the Dominican Republic. Deals are quantity limited, allowing suppliers to sell what they want, when they want. They are also marketed as packages to help drive value and increase ancillary spend. It can help suppliers to sell distressed inventory, increase occupancy and seasonal revenue during shoulder periods.

Supporting last minute sales and reducing suppliers’ risk of unsold inventory:  www.hoteltonight.com hotels offer last-minute deals on their unsold rooms, with discounts up to 70%.

 www.consmr.com/: travellers choose a location and the application tells them what other people say about the quality of the store’s services

Travellers are invited to become part of the KwikChex ‘Find It Trust It Revolution’. Users agree to become ‘Verification Agents’ of www.kwikchex.com/ (an online reputation company), and if selected they are asked to check and verify information and standards of member businesses and act as a ‘mystery shopper’. This is an application whereby consumers and businesses work together to make it easier to locate businesses, products and services and to know that the information you see is accurate and comes from reliable sources.

KLM Royal Dutch Airlines provides a service which allows its passengers to use their Facebook or LinkedIn profiles to choose seatmates (by checking their online profile) on upcoming flights. This application assures the quality of the flight for the individual traveller eg by enabling passengers to avoid seating next to a baby and/or find someone to talk while travelling.

Ordering flow

Room77 also allows users to book rates directly at the site, or buy direct by diverting them to the hotel website or via online travel agents of the marketplace.
Software enabling the completion of pre-orders to take place automatically when order specifications are promoted online: e.g. www.airtickets.gr/#your-price allows travellers to specify the flight route and the price they want to pay and the website will book and pay for this flight when the order specification becomes available online.
Facilitate ordering of travel products by automatically getting and integrating data about travellers’ itineraries to an application. For example, the Red App from Limos.com is a powerful search, compare and booking application for private car services. Bookings integrate into customers’ itineraries, streamlining the reservation process and increasing agent productivity.
Providers of software automating the ordering (re-ordering process): e.g. www.travelautomation.net/qbotic automatically revalidates or reissues tickets due to involuntary changes; this takes around 45 seconds rather than 4–5 minutes by the travel agent.

 Intermediaries allowing customers to specify their order and the software materializes the order when this becomes available: e.g. www.expertflyer.com helps travellers who are stuck in an undesirable seat, such as a middle seat, to change to a better seat as one becomes available. The traveller creates a Seat Alert with flight specific options and will be notified when the best seat becomes available

Self-booking tools: websites providing the tools to travellers to make, manage and change their own bookings online.

Innovative ways to order and pay for travel services: e.g. mytaxi.net, www.gocatch.com allow customers to use an application to: find nearest taxi, choose from different order options, book via touch, calculate fare and track the taxi’s approach live,pay securely and easily via smartphone with myTaxi Payment

Payment flow

New ways to calculate prices of travel services: e.g. www.uber.com calculates prices of taxi services for which clients pay the website through their authorized credit card by taking GPS data from the passenger’s ride and charging for distance or time depending on the taxi’s speed

 

* The innovative distribution service enabled by the technology may influence more than one marketing flow in which the technology-based innovation has been categorized

Web Exercise 1

Please read and answer the following mini cases and student exercises.

Re-intermediation, dis-intermediation and cyber-intermediation examples in tourism: mini cases and student exercises
The case of GDS
The Internet allowed tourism suppliers (including hotels, airlines, cruises and train operators) to bypass GDS and communicate directly to the travellers. To remain competitive and useful in the tourism distribution chain, GDS have redefined their strategy by selling: web services to tourism suppliers (e.g. the provision of a booking engine and a tourism database of suppliers/products, which enable a website to provide information about tourism services and receive online bookings for them); and enriching their Internet distribution strategies with useful distribution services (e.g. provision of market intelligence, channel and yield management tools that enable a firm to simultaneously manage many e-channels at one screen/interface). Overall, the GDS have transformed their competitive strategy from an information system connecting supply with demand to an outsourcer and provider of distribution services to the tourism industry. As a result, many tourism suppliers use GDS's expertise and ICT capabilities to outsource whole business processes (Business Process Outsourcing) (e.g. if you are using travelocity.com or fairmont.com websites and believe you are accessing the CRS of the supplier, you may be using the booking engine of a GDS that provides the information and booking tool to the website). By redefining their strategy, the GDS have re-intermediated their role and power in the tourism distribution chain, as they currently ‘empower’ more than half of the annual reservations conducted on the Internet.

The case of tour operators
The Internet has enabled travellers to quickly search, find and evaluate travel information on many websites allowing them to either develop their personalized travel packages in a DYI (do it yourself) and modular approach (i.e. visiting various websites and creating an itinerary), and/or using one website as a one-stop-shop to create a dynamic personalized package. Cyberintermediaries that are well known for their sophisticated and easy to use dynamic packaging solutions include www.expedia.com, www.ebookers.com and www.travelocity.com. Such developments are challenging the role and existence of the traditional tour operators whose primary function and competitive advantage was to organize and sell static travel packages to consumers. As travellers become more sophisticated and demanding, willing to co-create and experience a personalized service, the traditional static packages of tour operators are loosing competitive edge and market appeal. To re-intermediate their model and existence, traditional tour operators try to compete against the new cyberintermediaries with the same weapons: i.e. by integrating dynamic packaging capabilities into their own websites. For example, Thomas Cook (www.thomascook.com) allows users to combine flights and hotels in order to create and buy personalized packages at a single lower price than the total price of the two package components. However, dynamic packaging solutions are available to purchase and use by any player in the distribution chain and this is what is provided by many suppliers such as Lufthansa (www.lufthansaholidays.com) and Disney Resorts (www.visit.disneylandparis.co.uk).

  • Visit some of the above websites and design a personalized package using the online dynamic packaging tool. Identify and analyse the major functionality of these dynamic packaging tools, in terms of information search, visualization and personalization, pricing mechanisms and booking capabilities. What functionality and tools are available to address the mass confusing problem of travellers? i.e. the the provision of too much specialized information which makes it difficult for the traveler to select and evaluate the best and most appropriate travel product for the package?
  • Dynamic packaging is a strategy related to mass customization and its ability to provide a competitive advantage to the firm. How easy is it to develop a mass customization strategy and how sustainable is this strategy in the long run? To answer this question, take the example of Thomas Cook and read the articles available at:

www.tnooz.com/2010/01/08/news/build-your-own-package-holiday-on-thomas-cook-and-you-actually-go-with-expedia/

www.tnooz.com/2010/04/27/news/how-will-thomas-cook-become-a-top-european-online-travel-agency/

The Case of DMC and event organizers
Visit the following websites, browse their content to identify the functionality and services that these operators provide and answer the questions below:

What disintermediation and cyber-intermediation effects do these websites create in the distribution chain of event tourism and of the Meetings, Incentive,
Conference and Events (MICE) sector?

  • How should traditional DMC and event organizers re-intermediate their business model? How can they build a sustainable and competitive strategy? What 'new' distribution services and functionalities can they provide to survive and stay competitive?
  • How have tourism suppliers benefitted and/or been disadvantaged by these changes in the distribution sector of the MICE sector?

Tracking and monitoring internet and social media use

The diverse and varied nature of travellers’ Internet use has increased the number and the type of website metrics and statistics that a firm needs to continuously track, monitor and measure to assess and improve e-marketing performance and strategies. Traditional e-metrics measure the following dimensions of website performance (Michopoulou and Buhalis 2008): (a) marketing performance (e.g. online sales, online marketing costs, yield, freshness and personalization of website content); (b) customer life cycle metrics, (i.e. metrics showing the ability of a website to attract and convert visitors into loyal/repeat online buyers including information on website users' reach (number of website visitors), conversion (online bookings), retention (repeat sales) and attrition (abandoned sales)); and (c) user behaviour metrics (e.g. how recently and frequently the website has been visited and the length of time spent on the website).Today, software and social media applications also allow firms to collect and analyze more sophisticated e-metrics measuring the level and type of customer engagement with online content and social media. This includes customer profile, number of comments contributed by customer profile and numbers ‘liking’, user-generated content (UGC) or retweeting (forwarding) UGC to social networks. Advanced e-metric techniques and software can now measure and monitor the quality as well as the quantity of customers’ engagement with social media (e.g. qualitative analysis of UGC to evaluate the customers’ positive and negative comments about firms and products). 

The level and type of ICT use and adoption varies across tourism firms. Firms also differ in their abilities and motivation for using ICT for automation, integration (hyperautomation) and/or transformation. Similarly, there are many factors which influence the tourism firms’ adoption of ICT and their diffusion into their value chain to increase the efficiency and effectiveness of their business operations (Table 6). Increasing ICT adoption and diffusion in the tourism sector requires both micro-level and macro-level policies, e.g. an increase in firms’ investments in the education and training of staff and public authorities’ initiatives to encourage investment in technology, and to support and disseminate technology best practices.

Chapter 7

The Thomas Cook–MyTravel merger in 2007

In the UK, around 65–66 per cent of the population take one holiday a year, with 25 per cent taking two or more holidays a year. The recent growth in the Internet as a preferred tool for booking around 50 per cent of these holidays has placed pressure on the profitability and traditional model of the high street travel agent–tour operator relationship for selling packages. With the rise of online travel agencies like Expedia, who are estimated to spend over £10 million a year on advertising, the high reliance upon a diverse range of distribution channels and integrated operations has placed financial strains on travel companies to remain viable. One strategy to respond to the rise of growing volumes of independent travel and the low-cost airline phenomenon (see Chapters 5 and 8) has been to increase market share by increased concentration. This is a European strategy given that in 2006, TUI AG was the largest integrated tourism group with a 114 billion turnover followed by the German-owned Thomas Cook Group, the MyTravel Group in the UK, the German Rewe Group, First Choice in the UK and Kuoni in Switzerland. The announcement in 2007 of the Thomas Cook–My Travel merger placed the new Thomas Cook Group in second place as Europe’s leading integrated tourism company, but the largest in the UK. Much of this is driven by the pursuit of new business models with consumers seeking modular tourism products they can pick and choose in the tour operator and airline sector. This is why most tour operators have expanded their web presence and in the case of TUI, it merged its new brand – TUIfly.com (its airline) to assist in creating a low-cost and modularized product. Other companies like Thomas Cook saw a strategic merger as a means of competing with TUI AG. The merger sought to reduce costs across the new group in June 2007 by announcing £95 million of savings from rationalizing the high street travel agencies and savings in the aviation sector. It also wanted to compete directly with major online businesses like Expedia.

The merger had to seek approval from the European Commission in view of its possible impact on market given the combined shares of tourism business they would control, as well as the possible implications on consumer prices. However, the impact of online distribution in the sector as a route to market for smaller travel agents and tour operators was seen as providing competition to the enlarged Thomas Cook Group. The new company aimed to use Thomas Cook as the main retail brand and the MyTravel ‘Going Places’ brand was retained in towns with more than one retail store. The merger was expected to affect 2500 to 2800 employee positions. As a company, Thomas Cook will be the main higher level tour operating brand with its prestige factor and MyTravel will be the mass market brand. The airline fleet will be renamed under the Thomas Cook name. Some 1000 jobs were expected to be lost at the former MyTravel headquarters in Rochdale. The impact on the group’s retail network was to reduce it from a combined 950 stores by 150 to 800. In its future growth strategy, the Thomas Cook Group was aiming to achieve a 1620 million operation profit by 2009/2010, by refocusing attention on independent travel and financial services and a shift away from tour operating. This is based on a forecast of revenue for the new Group of 113 billion in 2009/2010, with a significant growth in independent travel revenue from 12.2 billion in 2005/2006 to 13.3 billion in 2009–2010. It also set out to grow online sales by 2009–2010 to 35 per cent of its sales.

Chapter 8

The evolution of cycle tourism in the USA

According to Tobin (1974), the nineteenth century saw a ‘bicycle craze’ between the late 1880s and early 1890s, with millions of Americans purchasing two-wheeled bicycles for leisure and tourism activities, including the development of racing. Such racing events attracted large spectator crowds and contemporary commentators attributed this new trend to the mass marketing and consumption after 1884 when the air-filled tyre first appeared and the development of the ‘safety’ in 1886, a bicycle with two equal-sized wheels. This opened up the market to a wide range of social and demographic groups. Bicycle tourism emerged as a result of the growth of use of the bicycle linked to staying in overnight accommodation on defined cycling routes. In 1896 it was estimated that bicycles contributed US$75 million to the economy, with 2.5 million riders, 250 bicycle factories and 30 000 retailers selling bicycles. The sales of bicycles rose from US$2.5 million in 1890 to US$31 million by 1896. Much of the ownership was among the urban middle classes and higher social groups due to the cost of purchase which dropped from US$100 to 150 in 1893 to US$80 in 1897 (Tobin 1974). Contemporary publications such as the Goods Road Magazine of the League of American Wheelmen indicated that most members were urban and so the typical itineraries sometimes included a railroad trip and then travel onwards by bicycle, giving travellers independence of movement as well as the option to travel alone or in a group. The emergence of tourist services for the growing cycle market led to the development of tours to Yellowstone Park and the Rocky Mountains as well as trips beyond the urban fringe. For example, Tobin points to the 430 000 bicycles carried by US railroads and the emergence of guide books for the cycle tourist. Inns and hotels with repair shops nearby were promoted and the League of American Wheelmen developed an evaluation system to rate around 7000 official League hotels. This was very similar to the modern day TripAdvisor system where tourists left their remarks on the sign-in book, as the urban middle classes sought home-from-home comforts.

Further reading

Tobin, G. (1974) ‘Bicycle boom of 1890s: development of private transportation and birth of the modern tourist’. Journal of Popular Culture, 7 (4): 838–49.

Chapter 9

Solar eclipses as a natural attraction

The magnitude of non-permanent natural attractions as generators of tourism demand is evident in the example provided by solar eclipses. Total solar eclipses are witnessed in various parts of the globe sporadically. Eclipses often attract large numbers of spectators: in Zambia where, in 2001, some 20 000 tourists were recorded, more than the country had seen before, and about US$15 million of tourist spending was generated. In the 1999 solar eclipse witnessed over Europe, 100 000 visitors to southern Belgium and 400 000 to Cornwall, southern England, were recorded. Several hundreds of tourists travelled to Antarctica in 2003 for the first recorded eclipse. Future eclipse paths are likely to attract international visitors to witness the event in forthcoming years. Such forecasts also enable tourism organizations to prepare strategies that manage and maximize opportunities to welcome and accommodate visitors, while boosting the local economy.

Chapter 10

J.D. Wetherspoons: The growth of a hospitality chain

J.D. Wetherspoons is a large hospitality chain created in 1979 by entrepreneur Tim Martin (www.jdwetherspoon.co.uk). He strove to offer good value for money and cask-conditioned beers. The concept was extended to offer all-day food, non-smoking areas and a clean, convivial atmosphere. The company’s pubs were initially located in north London followed by other areas of London and theHome Counties (south-east England). After stock market floatation in 1992, the company began a national plan ofpub acquisitions, beginning in the Midlands (Birmingham) followed by other major cities: Liverpool, Bristol and Manchester. The company adopted a strategy of acquiring sites or pubs in key locations and competing locally on its strengths. In 2004, the company had over 640 premises (including lodges) selling its products, which is a massive growth for any company. In 2004, its turnover was £787 million with a profit of £77 million; 40 per cent of sales are from food and soft drinks.

The pattern of growth in the period 2001–2004 shows the company’s entry into the UK’s main conurbations up to 2001 and a gradual consolidation and further expansion into other regions such as Scotland after that date.

Among some of the critical factors that distinguishes Wetherspoon’s from the competition are:

  • good quality food and drink provision
  • being ahead of the competition with its use of nonsmoking areas, in view of impending changes to UK smoking law
  • the use of well-trained and friendly staff
  • individually designed pubs to create a unique experience as opposed to a McDonaldized homogeneous experience
  • high standards of repair and maintenance
  • low operating margins (around 9–10 per cent) to keep prices low
  • including food sales and service as a key growth sector for leisure spending
  • holding beer festivals to promote traditional ales from British, Irish and micro breweries to exceed the capacity sold by the Annual Campaign for Real Ale (CAMRA) Great British Beer Festival
  • using a non-music policy to deter a binge-drinking environment and introducing family areas for early evening dining
  • working in an environment of deregulation of the pub trade in the 1980s when the major breweries were required to divest a large number of their tied pubs to improve competition
  • operating annual performance-related bonus schemes for all staff, based on profitability and operating standards. It also operates a share scheme to motivate staff, especially those who interface with the public
  • developing its own brand (Jones et al. 2002)

Reference

Jones, P., Shears, P., Hillier, D. and Clarke-Mill, C. (2002) ‘Customer perceptions of service brands: a case study of J.D. Weatherspoons’, British Food Journal, 104(10): 845–54.

Second homes: Curse or blessing?

Second homes are one of the more contentious areas of tourist accommodation, especially in rural/coastal areas where incoming tourist purchases push local property prices up above the reach of local residents. The term second home can have a wide range of meanings, including recreational homes, summer homes, cottages and weekend homes (Hall and Müller 2004). Second homes are defined as a permanent building which is the occasional residence of a household that usually lives elsewhere and which is primarily used for recreation purposes. This definition excludes caravans, boats, holiday cottages (rented for a holiday) and properties in major cities and industrial towns. (Shucksmith 1983: 74)

This provides a basis for understanding the nature of holiday cottages and seasonal use, a feature found in many countries which excludes the growing volume of mobile second homes and alternative forms of accommodation.

Classic studies of this tourism-related phenomenon (e.g. Coppock 1977) and recent studies (Hall and Müller 2004) identify the three groups of stationary, semi-mobile and mobile second homes. Historically, the second home was an exclusive home for nobility and the wealthy classes in ancient and pre-industrial times, and the practice continued during the industrial revolution, as the new middle classes emulated the upper classes, purchasing land and building properties in locations accessed by new forms of transportation. In the twentieth century this idea permeated down to the working classes, epitomized in London with the development of holiday homes in the green belt as a refuge from work and in a more healthy open space.

In geographical terms, Hall and Müller (2004) point to distinctive patterns of second homes clustering in journey times convenient from origins in major urban areas, which may be visited easily at weekends. They also identify those second homes in more remote areas, accessed only once or twice a year. For example, in Sweden 25 per cent of second homes were within 14 km of a main residence, 50 per cent 37 km away and 75 per cent within 98 km, depicting a clear distance relationship. A Knight Frank study in 2008 highlighted that around 241 000 second homes exist in England, while the number located overseas has grown from 115 000 in 1996 to 248 000 in 2007. In some UK local authority areas, such as South Hams in Devon and Argyll and Bute in Scotland, they account for over 11 per cent of the housing stock. Research continues to be divided on the impacts of second homes, especially in remoter rural areas. The issue has also continued to attract community and media attention where property price increases for local communities due to this phenomenon have socially excluded many of the local population from home ownership. In the case of the Cairngorms National Park, restrictions have been placed on second home ownership in an attempt to control these impacts.

Some of the motives for second home ownership include:

  • escape from everyday life
  • getting back to nature
  • a clear relationship with personal identity, with family connections to a location/area
  • the ownership of global travel options, where global timeshare or apartments are purchased which has become a major trend for UK holiday-makers
  • a life-cycle component, with people buying property for later stages of the life (i.e. retirement).

Second homes have created new tourism landscapes of consumption as weekend and vacation homes emerge in peripheral locations, near to urban areas and in amenity-rich areas such as coastlines and mountain areas.

While such trends may contribute to economic impacts in the destination area, there is an ongoing debate as to whether these are a blessing or curse (Coppock 1977). The impact on property prices may be cited as negative for local residents, but the re-use of redundant buildings and generation of new tourism income is cited as beneficial for localities. The controversy of absentee owners only paying partial domestic rates has remained highly controversial along with the social blight on localities in community terms outside of the tourist season. Not only are local people squeezed from the local housing market, but the area lacks the social vitality and community spirit of day-to-day life with all-year residents. This also creates a social gradient between residents and more affluent incoming tourists, raising many of the social and cultural impacts discussed more fully in Chapter 19. Indeed, the seasonal impact of incoming tourists poses many strains on local services. For example, in the Spanish municipality of Torrevieja, a local population of 35 000 also had 70 000 second home owners who were perceived as tourists by residents. Yet the problems of managing second homes at the local government level remains a perennial difficulty, as many local authorities have inadequate records.

Scotland was examined in a study published by Communities Scotland (Bevan and Rhodes 2005). It has identified the scale of second home ownership using the 2001 Census estimating that there are 29 299 second and holiday homes in Scotland, with 47 per cent located in very remote rural areas. The geographical concentration of second homes by area type and region within Scotland have a tendency to be located in rural areas with high scenic qualities. The Communities Scotland report identifies the geographical clustering of second homes in remoter rural locations where certain districts (e.g. in West Argyll) have a strong dominance of second homes. The continued growth in this market has placed additional inflationary pressures on house prices and poses a number of risks for the sector, not least in terms of alienating local communities if the issue is not managed. The effect on rural service provision is particularly marked where owners are not resident all year round and able to support the viability of vital services (e.g. shops and post offices).

In a Western context, with the ageing population and rising affluence, increasing second ownership seems set to grow further. As Müller and Hall (2004) acknowledge, in 2000, 11 per cent of the world’s population was aged 60 years or more; by 2050, this will rise to 20 per cent. Many parts of the world with highly developed tourism economies already have a large clustering of second homes (eg. the Mediterranean, Iberian Peninsula, Australia’s Gold and Sunshine Coast, the south-west USA, California and Florida). The second home remains a feature of many national cultures, including the ‘cottage’ in Canada, ‘stuga’ in Sweden, ‘hytte’ in Norway, and ‘bach’ in New Zealand and the various elite forms in the former Soviet Union (dacha). However, the extent to which second home development is ‘more of a blessing than a curse for many regions’ (Müller and Hall 2004: 278) remains debatable and dependent upon the local context, the impacts tourism generates and local acceptance of the phenomenon along with the political context.

The mega resort hotel and Las Vegas

Las Vegas is an interesting example of a destination built in the desert environment of Nevada, USA, and with a tourism sector based on entertainment and gambling. It was only in 1997 that the destination exceeded the 100 000-room point but, because of the scale of building, there were over 125 000 hotel rooms in 2000 and the number continues to increase (Tsai et al. 2006). Table 10.5 illustrates the size of some Las Vegas hotels.

Relating to the origin of their names, The Venetian ‘includes a Grand Canal with gondolas, a 315-foot campanile, Doges Palace, Bridge of Sighs and St Mark’s Square’ whereas Hilton’s Paris features ‘a 50 storey half scale Eiffel Tower’. The Las Vegas Convention and Visitors Authority projects that for every 1000 new rooms opened, an extra 275 000 visitors a year are needed. Given the scale of development, active marketing needs to be complemented by new direct flights, since many visitors arrive by air.

In 2004, MGM announced plans to create a multibillion dollar Project City Centre in Las Vegas on a 66- acre site in the heart of the Las Vegas strip. The first phase of the development would be an 18 million square foot development with a 4000-room hotel and casino with three 400-room boutique hotels operated by other Las Vegas hotel operators. This would also contain 550 000 square foot of retail space and 1650 condominiums. The first phase of this ambitious project is to be opened in 2010. This would extend MGM Mirage’s national presence from the 11 casino resorts it currently operates in the USA and the three additional casino resorts it has invested in the USA as well as interests in the UK. In terms of the volume of investment in Las Vegas hotels, some new build projects are estimated to cost US$6 billion with extensions and new floors added to existing properties costing hundreds of millions of dollars. A wide range of consortiums, finance companies and hotel corporations have interests in the Las Vegas hotel sector, including many established US gaming companies. Reinvestment, refurbishment and redevelopment of existing properties as well as new build continues to expand Las Vegas’ international reputation as a tourist destination. To view further statistics, the reader is recommended to the website at www.lasvegas24hours.com.

References

Tsai, H., Kang, B., Yeh, R. and Suh, E. (2006) ‘Examining the hotel room supply and demand in Las Vegas’, Hospitality Management, 25(4): 517–24

Chapter 11

Empowerment, HRM and the Southwest Airlines model

One of the growing areas of interest in HRM and services in recent years is empowerment (Lashley 2004), which sets out to enable employees to feel more in control and able to use their power in dealing with work issues, especially human interactions with customers. It gives them the discretion to make decisions and is designed to give employees a positive emotional state in the workplace. In service delivery situations it should help employees to feel a commitment to the customer. Lashley (2004) points to relational elements of empowerment, which means the power relationships that exist between an employer and manager. Yet empowerment also has a motivational element, meaning that the employee needs to be able to perceive their ability to be empowered and to use the power effectively in everyday situations. A feeling of empowerment has to be followed by the power to take decisions which make a difference. Both the relational and motivational elements of empowerment need to be recognized if an organization wishes to empower employees.

The Lashley model, based on Lashley (2004: 205–206), (see Chapter 11) outlines five stages to empowerment in a practical tourism and hospitality operational context to combine the relation and motivational elements of empowerment. It illustrates how teams in organizations can be led so that the emotional state of empowerment is engendered to engage employees progressively through a number of stages. Organizations such as McDonald’s have used empowerment models for employment, as many of its managers have previously trained as part of the operational ‘crew’ with the new recruits trained in all aspects of operation so as to provide a foundation for leading a team or progressing to a managerial role.

One high-profile example of a tourism-related business which has used empowerment as part of its HRM practices is Southwest Airlines, the original low-cost airline in the USA. As Gittell (2003) explains, the company transformed itself from a regional carrier to a national carrier by:

  • building an organization able to build and sustain relationships, with shared goals, knowledge and mutual respect
  • having an intense focus on quality
  • using a non-unionized workforce in a highly unionized industry
  • having influential leadership and a clear strategy
  • creating a unique corporate culture
  • having a quick turnaround of aircraft
  • having high levels of coordination.

As the airline is built upon the efforts of its staff, the airline has a highly empowered culture of inclusivity for its staff and well organized teams where all staff work together. A high ratio of supervisor to team members (1: 12 or 1: 10) is the highest in the US airline sector, but it empowers managers and supervisors also to perform the work of other staff. So they work as ‘player-coaches’ to use a US football team analogy, undertaking the work of frontline staff: a policy that is conducive to building shared goals, relationships and problem-solving. It also helps to eliminate staff not suited to working at Southwest. As a result, Southwest’s HRM focus is on employing people with teamwork abilities. Internal promotions also create internal job mobility so staff acquire knowledge across the organization, helping to break down barriers between departments. The organization also has a well-established conflict resolution process for staff, when conflicts are not addressed immediately, to improve working relationships.

HRM strategy at Southwest encourages staff to be themselves, so employees identify with the company, and seeks to maintain the family–life balance by having flexibility in scheduling of staff. One innovation is in ‘shift trading’, allowing staff to negotiate their work–life balance to fit the workplace. The airline does not endorse negative controls through functional accountability (i.e. finger pointing when things go wrong), seeking instead to learn from mistakes so as not to undermine the corporate culture. It does this by looking at the overall results and performance of the organization rather than narrow functions, department by department, and their outputs. By having flexible job boundaries, staff can help each other so they can cross functional boundaries and managers can work alongside frontline employees. As a result Southwest is characterized by:

  • investing in frontline leadership
  • empowering staff via job flexibility and team working
  • training staff for competencies such as an ability to build relationships
  • using conflict to build rather than destroy relationships
  • being a caring employer
  • investing in people, their careers and thereby their organizational commitment via flexible working practices.

Underpinning much of the culture at Southwest is its empowering of staff at all levels to work towards shared goals, which involves caring about relationships inside the organization, with its customers and with its suppliers.

Chapter 12

The role of the World Travel and Tourism Council (WTTC):
The Human Resources Taskforce and the future role of HRM

The WTTC is a global business leader’s forum for travel and tourism from all sectors of the industry. It has representatives and offices throughout the world and it sponsors a WTTC human resource centre which has produced a publication entitled Global Good Practices in Travel and Tourism Human Resource Development with the publication sponsored by American Express. It provides case studies of good education and training across the tourism sector with a view to disseminating real-world experiences to a worldwide audience of human resource professionals. Pizam (1999) reports the results of a study funded by the WTTC and American Express on tourism and human resource issues in Latin America. In 2001, WTTC also undertook an in-depth study of the main human resource challenges facing the global tourism sector, given forecasts of 4.5 per cent growth per annum and the need to supply well-trained staff. This resulted in the WTTC Task Force report (WTTC 2001). The six areas the Task Force focused on were:

  • the future role of HR and e-HR
  • the attraction and retention of staff
  • education and training
  • leadership and management development
  • gender and racial prejudice
  • raising the awareness of tourism as a generator of employment.

The Task Force indicated that HR functions in the future will be very different, especially as HR moves from a localized to a global function, with locally led teams in different locations. Above all, employers need to be flexible so that employees can have a decent work–life balance. With the growth of technology, it will be possible to deliver HR services electronically, via e-HR computer systems. What is clear is that organizations in tourism of the future will move away from the traditional, highly structured, hierarchical form (see Chapter 5) to more flexible forms that might resemble a spider’s web containing smaller clusters of teams distributed across the organization.

This, according to management theorists such as Drucker, Peters and Handy, is to accommodate continuous innovation (see Chapter 12), to cut implementation times and to head off competition. A more goal-oriented form of organization with ICTs will need to be used to communicate and manage these teams, collaborating to achieve a common goal. As a result, a hierarchy will be replaced by a looser corporate umbrella, with more empowered teams working in a flexible manner. Self-managed and empowered teams will be a key element of this new organizational structure.

One consequence for tourism organizations may be a greater use of part-time staff and contractors and consultants rather than full-time employees, with a greater use of online recruitment. Part of this culture change will also be creating organizations people want to work in and in e-HR, which can help in facilitating a greater interaction between staff and the organization so people feel they can participate in the management of the organization. Using web-based training and e-learning offers employees more flexible training options.

In terms of the recruitment and retention of staff, the Task Force noted some of the high costs and reasons for staff turnover, which results in lost knowledge, were due to:

  • inadequate opportunities for promotion
  • dissatisfaction with company management
  • dissatisfaction with pay
  • lack of flexibility and lack of empowerment to take responsibility
  • poor career paths
  • bad working environments
  • conflict with manager/staff
  • unhappy with employee benefits.

To address such issues, the Task Force pointed to good practice across the tourism sector by companies to address such issues by:

  • improving internal communications about the organization and strategy
  • improving remuneration and benefits
  • taking a greater focus on retention strategies
  • focusing on new recruitment audiences such as retirees, returners and the disabled
  • providing employment flexibility
  • recruiting based on competencies to do the work (i.e. Southwest Airlines) and improved recruitment literature.

Even so, the major challenge for tourism employers will be:

  • recruiting employees with industry experience
  • retaining good staff
  • introducing performance-based rewards
  • providing a better image of the sector.

In terms of education and training, the value of human capital and the importance of integrating new HR practices will be dependent upon organizational leadership to recognize and implement these issues. However, changes are gradually filtering into larger organizations (as opposed to the SME sectors) as they recruit effective leaders, and Figure 1 highlights some of the essential leadership qualities which the Task Force identified. The tourism sector also has to address gender and racial prejudices to reduce dissatisfaction and turnover and to comply with the legislation in different countries. This involves recruiting a diverse workforce.

Reference:

WTTC (2001) Human Resources Task Force: HR Opportunities and Challenges. London: WTTC.

Pizam, A. (1999) ‘The state of travel and tourism human resources in Latin America’, Tourism Management, 20 (5): 575–86.

Chapter 13

Stelios Haji-Ioannou and the easyGroup

Born in Athens in 1967, Stelios obtained an economics degree from the London School of Economics in 1987 and a Master’s in shipping trade and finance from the City University the following year. Joining his father’s Troodos shipping company, Stelios became the founding chairman of the Cyprus Marine Environment Protection Association in 1992; this group of Cyprus-based business people pursue a common interest in sustainable development.

Stelios’ first venture, Stelmar Tankers, was formed in 1992, involving his older brother and younger sister as shareholders. Three years later, easyJet was launched as a low-cost carrier flying out of Luton. In 1998, a holding company called easyGroup was formed in order to build on recognition of the ‘easy’ brand. The first of these new ventures was easyEverything – more than cyber-cafés, these internet access outlets contain between 400 and 600 terminals offering cheap ‘surfing’; the first began trading in June 1999 and more are planned across Europe. In spring 2000, easyRentaCar was launched, taking on the might of the established companies Avis, Hertz, National and Europcar, with the unique idea of only one model of car and very low hire cost.

Stelios says that what motivates him is ‘succeeding in using new technology, particularly the internet, to bring down the price of goods and services to consumers’ and he enjoys the challenge of developing an idea from inception to implementation and then moving on to a new project, such as the easyhotel.com, while leaving the former business in competent management to run unimpeded. Website address: www.easy.com

h2>The Singapore Tourism Board’s vision for tourism
and Tourism 21

The STB’s vision of Singapore as a tourism capital embodies an exciting and memorable destination; a regional hub for travellers and tourism investors; and a centre of excellence in tourism business expertise, ideas and networks. It is a vision of a vibrant and progressive city-state, yet filled with Asian warmth and hospitality; a place where East and West meet, and the old and new coexist in harmony; a gateway for travellers and business professionals to make their voyage in to the region and beyond.

Source: Modified from STB (www.stb.com.sg/corporate/index/htm)

In terms of Tourism 21, the STB will be realized through six strategic thrusts:

  • redefining tourism
  • reformulating the product
  • developing tourism as an industry
  • configuring new tourism space
  • partnering for success
  • championing tourism.

This is designed as a new blueprint for Singapore’s tourism industry in the new millennium.

Chapter 14

fastjet – Launching Africa’s first low-budget airline using digital marketing

James Kennell, University of Greenwich

fastJet is Africa’s newest low-cost airline, which launched in November 2012.  Originally conceived along with the founder of Easyjet, the largest carrier in the United Kingdom, it offers a similar service based on low and transparent pricing coupled with a simple service offer.  fastjet’s hub airport is Julius Neyerere International Airport in Tanzania and it currently flies to destinations in Tanzania and South Africa.  The airline has plans to expand its operations to other international African destinations and has recently signed agreements allow it to fly to Zambia and Rwanda. Ultimately, the company aims to become Africa’s first pan-continental low-cost airline.

fastjet faced a number of marketing challenges before their launch:

  • The company was entering a new market and launching a completely new brand, which had no recognition from their target consumers.
  • The market they were launching into is an immature market as regards air travel.  Local consumers have huge concerns over the safety and reliability (liquidity) of air carriers and they are not used to purchasing their tickets in advance.
  • The large distances involved in the market were a factor, creating the need to profile and target potential travelers in specific geographic regions using social media.
  • fastjet needed the means to identify and engage the local audience from a distance.

fastjet enlisted the support of British digital marketing agency BozBoz to help them to develop a digital marketing strategy that would allow them to compete in a growing and highly competitive marketplace.

The digital strategy involved two key areas of fastjet’s marketing: Sales and Social Media.  Have a look at http://www.fastjet.com and www.facebook.com/fastjet to see how these have been implemented. 

In common with other low-cost airlines, fastjet only offers sales direct to passengers via its website.  In Europe and the USA this method of booking has seen huge growth as high-speed broadband has been rolled out to domestic markets.  However, the African market has instead seen huge levels of penetration of mobile internet technologies, with mobile telephone infrastructure being installed across Africa at a faster rate than costly new fixed-line systems.  Because of this, fastjet’s website has been developed to be fully responsive to the different modes of mobile access that its potential customers make use of – helping it to sell to a huge market of mobile internet users that other airlines had no means to access.

Secondly, a social media strategy was developed to help fastjet to build a customer base.  In the first twelve months following fastjet’s launch, the company gained over 100,000 Facebook likes and the website saw almost one million visitors.  21% of all its bookings are taken on mobile platforms and this is growing.

Mike Hollingbery, Chief Executive of BozBoz, explains:

“In 12 months fastjet grew to be one of the most recognized brands in Tanzania on Facebook, earning a great reputation by pioneering western standards of travel in an emerging marketplace with a poor safety record. Gaining market share quickly with no existing brand presence required careful planning and technological and cultural understanding in equal measure. Using social media channels effectively allowed us to connect directly with the local population and to amplify the mood on the ground from thousands of miles away. This aided awareness and adoption of the brand to a tipping point which has helped springboard it to further success.”

References

BozBoz (2013) ‘fastjet’ [online]

Available from: http://www.bozboz.co.uk/projects/fastjet

Chapter 15

The marketing and promotion of Berlin as a tourist destination

Since the fall of the Berlin Wall, Berlin Tourismus Marketing GmbH has had the task of promoting Berlin as a tourist destination. It is among the most visited cities in Germany and was designated a world heritage site in 1999 by UNESCO. The city has over 170 museums and 400 art galleries making it an art and culture city (see Chapter 21 on urban tourism). The city has a fascinating history after its division in 1945 and its subsequent reunification. Berlin Tourismus (BT) works with other tourism partners in the city to market and promote it, as the destination received over 17 million overnight stays in 2007. BT’s role is to develop products suitable for the city’s tourism markets and the provision of information on the range of attractions in partnership with the local tourism industry. This Insight focuses on how BT has promoted Berlin as a tourist destination, using a themed campaign, supported by seasonal marketing and PR campaigns to create an internationally recognizable image among consumers and the tourism sector. Its most recent campaign – Berlin, Berlin wir fahren nach Berlin (Berlin, Berlin, we’re going to Berlin) – was developed in 2007 with a budget of D8 million. It sought to showcase Berlin’s cultural landscape in a glossy and emotionally appealing manner using images of a fascinating metropolis. The campaign emphasized the friendliness and confidence of Berliners along with the unique brand of art, culture, nightlife and history. For this reason, the campaign identified a number of core themes:

  • Trends (design, club scene, galleries, fashion, modern art, music scene)
  • Entertainment
  • Opera/classical music
  • Art (museums, special exhibitions)
  • History in the making to position Berlin nationally and internationally as a unique cultural capital. The promotion uses a wide range of communication mechanisms such as:
  • Print media
  • Online media
  • A website: http://www.fahren-nach-berlin.de
  • Additional PR campaigns
  • Joint advertising with partners to attract the German and selected European markets over 40 years of age and young event-oriented visitors. BT identified the following target markets for the geographical marketing of the city including:
  • Within Germany, the regions which were already the focus of the Winter Magic campaign
  • Europe, the UK, the Netherlands, Spain, Italy, Denmark and Switzerland
  • In the US a wider focus on the ‘Central European Experience’ joint marketing campaign.

As BT state in relation to the advertising campaign they have employed:

Each image presents one particular aspect of the vast array of events in Berlin‘s cultural sector and links it to an inspiring Berlin headline. The copy then embeds the images in their context and narrates an appropriate story (or stories). The claim sums up and expresses the enthusiasm in and for Berlin, and is simultaneously used as the campaign logo. The claim has deliberately been left in German: Berlin, Berlin, wir fahren nach Berlin.

Source: Developed from http://www.berlin-tourism.com

Chapter 16

Gromit Unleashed: The economic impact of a film and TV tourism product

James Kennell, University of Greenwich

Wallace and Gromit are the characters who star in the popular, Oscar-winning series of animated movies made by Aardman studios in Bristol in the United kingdom

‘Gromit Unleashed’ was an art and tourist trail around the city of Bristol, in the west of England.  It consisted of 80 giant fiberglass statues of the dog Gromit, one of the two main characters in the animation series.  Each of the statues was different and had been designed by artists who had won commissions for their work.  The main aim of the trail was to raise £3.5m for a local children’s hospital charity, but the secondary aim was to increase the numbers of tourists and other visitors to the city and to generate economic impact from this increase.  The project was inspired by other similar trails in cities around the world, most famously the ‘Land in Sicht’ project from artist Walter Knapp and the worldwide ‘Cow Parade’, which has taken place in 75 cities since 1999 and which aimed to raise money for charities by creating tourist trails based on artist-designed cows.

In order to calculate the economic impact of the tourism associated with Gromit Unleashed, the organizers commissioned a survey that measured visitor spending.  A total of 6728 people completed the survey – 505 on-site and 5782 via a website.

A total of 1,184,000 people visited the Gromit Unleashed trail and other attractions associated with the project.  The total visitor spend was calculated as £77,035,230, or an average of £65 per person, which included money spent on accommodation as well as spending on travel, food, refreshments and souvenirs. 

In order to calculate the total economic impact of this spending, the researchers used a multiplier.  The multiplier that they used was a government recommended figure of 1.6.  This meant that for every £1 that was spent by tourists, £1.60 of economic impact was judged to have been created in the local economy. The reason that multipliers are used is because any injection of extra money into an economy creates additional economic activity as businesses use their income to pay staff, carry out refurbishments and pay additional local taxes, for example. 

Applying this multiplier to the to visitor spending associated with this project, a total economic impact of the project for the city of Bristol was calculated as £123,256,367.

In addition to this economic impact, 91% of tourists who visited for the Gromit Unleashed project said they would recommend the city to friends and family as a direct result of their own visit and 91% also said that they had visited parts of the city that they would not have visited without the tour, showing that the impacts of the project on future tourism to the city were wider than just additional spend.

George Ferguson, Mayor of Bristol, summed up the impacts of the project by saying: “The Gromits had a tremendous impact on Bristol, not only in terms of the money raised for a good cause but in the wider sense of boosting our economy and attracting visitors.  They’re a great example of the way in which the city’s creative and cultural offerings have a really positive effect on Bristol’s growing reputation for doing things differently.  In doing this, the city is staking its claim as a major attraction for visitors from all over the world, showing everyone a little bit of the spirit which makes Bristol so special.”

References

Aardman Animations (2013) Gromit Unleashed Evaluation, Bristol: Aardman

Chapter 17

The Arctic – socio-cultural impacts of tourism in an emerging destination

James Kennell, University of Greenwich

The Arctic region is the polar region at the northernmost point of the Earth.  It is made up of the Arctic Ocean, which is permanently frozen, as well as the bordering northern areas of seven countries: Canada, Denmark, Iceland, Finland, Norway, Russia, the United States of America and Sweden.  The Arctic region is demarcated by the Arctic Circle, a line of latitude, and covers 4% of the Earth’s surface.  Average temperatures inside the Arctic Circle in July (the warmest month) are below 10 degrees Celsius and average winter temperatures are around -40 degrees Celsius. 

Because of the extreme climate, the Arctic region is sparsely populated, with fewer than 8 million inhabitants.  There are towns and cities north of the Arctic Circle that range from 5,000 to more than 300,000 inhabitants.  There are a number of nomadic communities and small settlements of indigenous peoples.  The majority of the Arctic’s population lives in Russia. 

Tourism to the Arctic region began to increase in the 1890s, when steamships and railroads made the region more accessible to a growing middle and upper class with increased personal wealth and greater leisure time.  Today, tourism in the arctic is split into five main categories:

  • Mass tourism, mostly involving cruises
  • Sports tourism, including fishing and hunting
  • Nature tourism
  • Adventure tourism
  • Cultural tourism

Due to climate change and the demilitarization of the Arctic region that followed the end of the cold war, tourism numbers in the Arctic are rapidly increasing with the region seeing in excess of 5 million tourist arriving per year, with that number increasing annually.  In the last fifteen years, cruise based tourism arrivals rose by 430% and land-based arrivals by 757%.

The increase in tourism has led to a number of social and cultural impacts that call into question the sustainability of the Arctic as a tourism destination.

During the tourist seasons, huge pressure is placed on local social infrastructure and institutions, including hospitals and medical care, law enforcement, public spaces and community facilities.  It is possible to reduce these negative impacts through local tourism taxes and specific arrangements between tourism operators and host communities.  However, cultural impacts that go beyond capacity issues are more complex to negotiate.

Especially in areas of indigenous peoples, large numbers of tourists can generate major cultural impacts.  This can happen in three main ways.  As tourists consume natural resources on which indigenous people’s subsistence and cultural traditions depend, it becomes increasingly difficult for these ways of life to be maintained.  Secondly, the economic opportunities provided by tourism will encourage many members of host communities to become tourism entrepreneurs, as the economic return from tourism outweighs the advantages of more traditional activity.  Finally, through the ‘demonstration effect’, the presence of tourists with what will often be novel patterns of behavior, speech, dress, technology use and so on, can create conflicts between traditional and imported culture that erodes traditional values and practices.  Despite this, it is also possible that the presence of tourists will support the preservation of traditional practices through their commodification as tourist products, such as the ways in which Inuit Arctic survival practices have been drawn upon to provide adventure tourism products for tourists in the Nunavik area of Northern Quebec, in Canada.

References

Horejsova, T. & Paris, C-M. (2013) ‘Tourism and the Challenge of Arctic Governance’ in International Journal of Tourism Policy, Vol.5, Nos. 1 / 2, pp.113-127

Chapter 18

British Airways environmental report

BA as a global airline had a turnover of £8.4 billion in 2006/2007. The recent group statistics are shown in Table 1 and the company operated a fleet of 242 aircraft in 2006/2007 to 147 destinations in 75 countries. Air travel impacts on the environment are discussed in their widely used Environmental and Social Report (now retitled Environmental Overview) under the following headings.

Noise

BA (2003) show that they have made considerable progress towards noise reduction targets with a 5.8 per cent reduction 2002–2003 (which rises to 8 per cent if Concorde is excluded) and it has 78 per cent of its fleet already meeting the new ICAO Chapter 4 noise standards, up from 60 per cent in 1998–1999. The global distribution of noise pollution by BA aircraft at airports it uses is shown in Table 2 which illustrates the pattern of operations, dominated by its London bases. To further help reduce noise pollution on arrival at airports, the airline has a code of practice – the Continuous Descent Approach, which seeks to reduce noise and improve fuel efficiency when it is safe to use this approach.

Emissions, fuel efficiency and energy

The growing concern over global warming and ‘greenhouse gases’ (e.g. CFCs, CO2, NOx and methane) arising from aviation (Table 3) are significant as BA estimated that civil aviation accounts for 400–500 million tonnes of carbon dioxide from 20 000 million tonnes of fossil fuels. This recognizes that almost 50 per cent of global warming may be a consequence of man’s activities, with civil aviation’s contribution accounting for 3 per cent of the total effect of global warming. BA also indicated that NOx emissions remain the main airport-related pollution issue for airlines. BA also reports that 97.6 per cent of its fleet conform to the new ICAO certification levels for NOx emissions, and that by making modifications to almost half of its Boeing 747–400 fleet it has been able to reduce NOx emissions in-flight. It also points to the combined effect of CO2, NOx, particles and water vapour which combine to produce radiative forcing, that is a process resulting from airline pollution which contributes towards global warming. They indicate that global aviation contributes about 3.5 per cent to this process. Since 1990, the company has improved its fuel efficiency by 28 per cent and in five years, reduced UK emissions by 23 per cent through its involvement in a voluntary UK emissions trading scheme

Congestion

Congestion is viewed by BA as one of the most pressing problems it faces. For Heathrow, Gatwick and Manchester the cost of additional fuel burnt due to congestion was £3.6 million. BA points to the additional fuel burnt by aircraft being held in locations above the airports they want to land at (known as stacking). Additional fuel was also burnt due to aircraft carrying excess fuel in case of delays occurring at Heathrow, Gatwick and Manchester.

References

BA (2003) 2002/2003 Social and Environmental Report. Harmondsworth: British Airways.

BA (2004) Environmental and Social Report 2003/2004. Harmondsworth: British Airways, www.ba.com.

Whale and dolphin watching:
A global growth sector

According to Hoyt (2001), in 1995 5.4 million tourists engaged in this activity and by 2001 the figure was 9 million. They spent US$500 million in 1995 and it was a US$1 billion industry by 2001. The activity of whale and dolphin watching has seen significant growth over the last ten years and is enjoyed in a variety of international locations, from the poles to the equator. It now occurs in 87 countries and in 492 communities. Whale watching has been growing by 12 per cent a year in visitor numbers and, since 1994, 22 new countries have joined the market for this activity. In 1994, only the USA had 1 million visitors whale watching a year but by 1998 this had extended to Canada and the Canary Islands, with Australia and South Africa recording 500 000 visits a year. Some localities have seen remarkable growth such as Taiwan growing from zero to 30 000 visits 1994–1998. While there are no international regulations, many countries have introduced strict regulations to protect the creatures, such as limiting the noise and speed of boats, the number of boats, the distance allowed from creatures and swimming. Some are calling a halt to activities. In New Zealand and the Azores, concern has been expressed about the amount of human contact between the creatures and swimmers, which is thought to cause stress among whales. The Whale and Dolphin Conservation Society (www.wdcs.org) is currently campaigning for an international ban on swimming with all marine creatures. Boats also cause problems by following the creatures too closely. Contact with the creatures can lead to changes in behaviour, such as more leaping, and disturbance to habits, such as the need to rest during the day and hunt at night. More research is required to prove that human contact does cause whales stress problems but, until then, the precautionary principle should be adhered to. Whale watching has been proven to be beneficial to conservation when its economic potential exceeds that of hunting. At Kaikoura, South Island, New Zealand, there is a moratorium on the setting up of new tourist business related to whale watching and existing businesses have agreed to a voluntary code of practice to allow the whales sufficient rest time.

References

Hoyt, E. (2001) Whale Watching 2001: Worldwide Numbers, Expenditure and expanding socioeconomic benefits. Crowborough: Whale and Dolphin Conservation Society. www.wdcs.org

Chapter 19

Sardinia: Implementing approaches to sustainability at the destination level

James Kennell, University of Greenwich

Sardinia is a large island in the Mediterranean Sea and is an autonomous region of Italy.  It is the second largest Island in the Mediterranean, after Sicily.  Tourism is the main industry of the Island and has been developed vigorously over the last forty years.  The population of the Island is 1.6 million, and it receives more than 2 million tourists per year.

Until the 1950s, the town of Alghero was the main tourism destination on the Island and was visited mostly by up-market tourists, mainly from the United Kingdom.  From the 1960s onwards, the Island saw significant levels of tourism development including the construction of marinas, the development of ‘3S’ tourism products for the mass markets and increasing urbanization of the Island’s coastline.  In common with other southern European destinations in this period, the increasing levels of tourism development led to a number of negative impacts on the environment, as well as overpopulation and high densities of development in some of the coastal areas of the Island.

New tourism development in Sardinia is now taking place guided by the principles of sustainable development.  On the east of the island, in the province of Medio-Campidano, researchers have developed a framework for promoting the development of eco-tourism as a strategy that will both protect the fragile local eco-system (which includes the Parco Geominerario Storico e Ambientale della Sardegna - Sardinian Historical and Envi-ronmental Geo-mining Park, an  example of the new worldwide network of UNESCO Geosites/Geoparks) and attract high-spending, low impact tourists.

In the south of Sardinia, five municipalities working together, Caligari, Domus De Maria, Muravera, Pula and Villasimius, have created a new DMO called ‘Visit South Sardinia’.  The DMO’s first action has been to implement a new set of international sustainable tourism standards in the DMO area.  Key tourism stakeholders were invited to consultation events to discuss tourism planning and the management of the destination.  In this consultation, the topics of economic development, community involvement, heritage protection and heritage conservation were discussed.  The DMO has agreed to implement the Global Sustainable Tourism Council’s  (GTC) ‘Sustainable Tourism Destination Criteria’ which covers the following areas:

  • Sustainable Destination Management
  • Maximizing economic benefits to the community and minimizing negative impacts
  • Maximizing benefits to communities, visitors and cultural heritage and minimizing negative impacts
  • Maximize benefits to the environment and minimize negative impacts

You can read the GTC sustainability standards in full at www.gstcouncil.org

The local outcomes of implementing these standards has included regulation and specific programmes to include local producers in tourism industry procurement, recognition and promotion of local community groups in the tourism destination management and marketing process of the DMO and a consistent approach to local sustainability monitoring.

References

Bourse Loic (2011) Profile of Sustainability in some Mediterranean destinations, Plan Bleu report, UNEP: Nairobi

Ioppolo, G., Sija, G. & Salmone, R. (2013) ‘From coastal management to environmental management: The sustainable eco-tourism program for the mid western coast of Sardinia (Italy)’ in Land Use Policy, vol.31, pp.460-471

GSTC (2013) ‘South Sardinia completes ‘early adopter’ assessment of global sustainable tourism criteria for destinations’ [online]
Available from: http://www.gstcouncil.org/about/news/
Accessed 31st October 2013

Chapter 20

Urban regeneration and tourism in the ‘Big Apple’:
New York and the 2012 Olympic bid

Urban regeneration has been widely used in a global context to redevelop areas of cities which have lost their main economic function in the changing world economy. Many inner city areas and former port areas offer exciting opportunities for urban regeneration when the potential for harnessing tourism is recognized. A number of classic studies in urban tourism and regeneration (e.g. Law 1992, 2002) have highlighted successful examples of tourism being linked to economic regeneration, including Manchester and Baltimore, USA. In most cases, the process of regeneration has to be initiated when large areas of private and public land are involved. A lead agency with a public sector lead or public–private partnership stimulates development, typically forming an agency or organization to drive the process. Although tourism is not always involved in urban regeneration, it has had a significant impact in waterfront areas, where leisure and tourism uses often feature as a dominant element.

Where the development process is initiated it often follows a similar direction as that of a product or resort lifecycle: there is a need to constantly reinvest to retain a vibrant development. In particular, at maturity stage, additional intervention may be required to drive the process forward once it has lost impetus. In this respect, Law (2002) highlights the significance of developing a coherent and focused strategy towards redevelopment to visualize and communicate the purpose of redevelopment, who will be the beneficiaries and the expected outcomes of a regeneration plan. Law (1992) examined the tourism-economic regeneration issue in considerable detail, and Figure 21.5 highlights the critical links between economic, physical and social regeneration in redeveloping an urban area as well as the importance of marketing in developing a new image of the area, to reposition it. One recent and notable example of seeking to harness regeneration to expand and drive redevelopment forward is the New York City 2012 bid to host the Olympic Games (www.NYC.com, accessed 19.1.2005), which comprises the New York City Bid Book.

New York City (NYC) is already in a global position as an urban destination, also comprising one of the USA’s leading gateways to the east coast. It has a mature tourism product, with a resident population of 8 million in NYC and 11 million in the metropolitan area, making it a global city. It receives over 39.6 million visitors of whom 34.3 million are domestic and 5.3 million are international. They generate US$15.1 billion in spending and US$220 million in hotel tax revenue, with a hotel occupancy rate of 83 per cent. One strategy which has helped to popularize NYC is its entertainment district (e.g. Broadway) and its harnessing of film tourism. According to the NYC Mayor Office this has led to over 40 000 media shoots in NYC each year. There are around 60–90 on any given day and 100 000 people are employed in the entertainment sector.

The existence of over 578 miles of waterfront and a variety of brownfield sites (i.e. development sites previously developed which will need environmental improvement and decontamination in some cases). While the NYC area has seen over US$1 billion of investments in regeneration schemes directed at waterfront areas, the Olympic bid provides NYC with an opportunity to push these schemes further. Underpinning the NYC bid is an X plan, where three clusters exist: Olympic Square (including areas around Madison Square and other icons), the Olympic Riverfront and Olympic Park, with an Olympic Village positioned at the centre of the X plan. The combination of these areas into a plan for the Olympic Games will:

  • expand the business sector in the central business district
  • revitalize the waterfront
  • lead to the provision of new parks and sport facilities as part of the post-Olympic legacy.

The waterfront adjacent to the Hudson river with old railway yards would be a potential site for an Olympic stadium and feature as part of an integrated sport, tourism and residential redevelopment. The proposed Olympic Village would provide housing after the Olympics and the Williamsbury Waterfront Park would comprise two anchor projects to stimulate redevelopment. The NYC bid expects the Olympics would yield a US$12 billion economic impact for the city, generating 135 000 jobs. What is notable in the NYC bid, in line with the requirements of the International Olympic Committee (IOC), is the inclusion of sustainability principles in its development, operation and legacy phases. It embodies six environmental and sustainability principles which highlight the growing significance of sustainability. The six principles are:

  • urban transformation, with the environmental transformation of degraded land to new uses such as parkland, sport and leisure as part of the proposed waterfront transformation
  • environmental awareness, with the creation of partnerships to make redevelopment environmentally focused
  • global partnerships, with redevelopment informed by collaboration with international agencies like the United Nation’s Environment Programme
  • sustainable development, with the project conforming to the IOC’s Agenda 21 principles
  • innovative technology, which is embodied in buildings (e.g. 40 per cent of the energy to run the Olympic stadium would be from renewable energy sources) so they are environmentally sustainable
  • clean air and water, so that any generated effects such as the impact of transport on sustainable (e.g. the use of clean fuel buses) and able to use existing transport infrastructure.

What the NYC bid highlights is the role of the sports tourism in seeking to stimulate and continue the regeneration of NYC’s waterfront area. This is a departure from the experience of many Olympic bids and locations that have hosted the Olympic Games where regeneration has not been sustainable, especially where greenfield sites have been degraded instead of principles of sustainability being embodied. The competing bids for 2012 Olympics included London, Paris, Moscow and Madrid and a comparison of each bid can be found at their respective websites. The successful bid announced in July 2005 was the city of London.

Chapter 21

Rural tourism in Namibia

Namibia, a large country in south-west Africa with a population of 2 million, is a country of unspoilt landscapes and significant populations of wildlife, from the Big Five to unusual insects and plant life and is among the world’s driest countries. The world’s largest cheetah population lives here. Some 15 per cent of the country is covered by National Park designations. Since the country gained independence in 1990, tourism has been viewed as an important source of economic support. Tourism is the country’s third most important industry and foreign exchange earner, after mining and fishing. Between 1993 and 1997, tourist numbers increased by 18 per cent to 500 000. In 2002, numbers had slipped to 430 000 which dropped further in 2003 to 300 000 but grew to 777 890 in 2005. One result has been promotion in key markets (e.g. Germany and the UK) with a campaign in 2005 to target high-spending visitors. In 2006, the World Travel and Tourism Council (WTTC 2006) outlined the economic aspects of tourism in Namibia:

  • it employed 18 840 people directly
  • it may support around 71 000 jobs overall, equivalent to almost 18 per cent of employment
  • the tourism economy may be worth US$1.1 billion, equivalent to 16 per cent of GDP.

The objectives of Namibia’s Development Plan are to revive and sustain national growth, create employment, reduce inequalities in income distribution, and eradicate poverty (Jenkins 2000). The government is committed to developing tourism based on sustainable development which must support the objectives of the Plan. The draft tourism policy was published in January 1999 and subsequently revised for the period 2001–2010 (www.namibweb.com) by the Ministry of the Environment and Tourism. The national mission statement for tourism development is: ‘To develop the tourism industry in a sustainable and responsible manner to significantly contribute to the economic development of Namibia and the quality of life of all her people’ and tourism is highlighted as a priority area in the National Development Plan 3 as a key factor in ‘Broad-based Black Economic Empowerment’ (WTTC 2006: 4) to stimulate entrepreneurship. In fact WTTC (2006) describes tourism as one of the country’s most promising industries.

A significant amount of accommodation is available on farms as farmers seek methods of economic diversification. These enterprises are generally working farms, often extensive ranches, and offer the visitor the chance to experience life in rural Namibia. Some offer activities and excursions while others emphasize the opportunity to relax and enjoy what the local area has to offer. Guest farms are viewed as a way of generating economic benefits in harmony with the environment. However, there is some concern that tourism is less labour intensive than ranching, and that jobs are being lost as a result of tourism (Shackley 1993). The following four important principles guide the implementation of the tourism policy.

Management of the industry

The future success of Namibia’s tourism sector requires appropriate marketing and management at an international level. Government intervention is needed to enhance Namibia’s ability to compete in the international tourism market. The government controls about one-third of accommodation in the National Parks under its Wildlife Resorts initiative (for example, self-catering camps in Etosha National Park) and is based on low-volume/high-spending tourists. This has been facilitated by the world of NGOs such as the World Wildlife Fund for Nature and the US aid organization, US Aid (www.USaid.org) to bring local economic benefits.

Local participation

The benefits of tourism will be most effectively translated at the local level if there are opportunities for local participation and equity. Local people will be encouraged to take ownership and control of tourism and its management. By 2008, there were 77 community-based tourism projects operating (see Novelli and Gebhardt 2007 for a review of one such project).

Environment

The protection of biodiveristy and the natural resource base is crucial: this includes environment, wildlife and culture. Natural resources must be used in a sustainable way to create employment and income.

Government’s role

The government’s role in tourism development should be that of a facilitator and not an operator. It should guide and facilitate the direction of tourism and provide an enabling environment for small-scale operators and the informal sector. This will lead to the achievement of sustainable and socially desirable tourism in Namibia. Recent government legislation, designed to actively encourage communities to establish conservancies, gives to communities the right to earn revenue from tourism on communal land. The Himba nomadic people living in Puros, north-west Namibia, are a good example of an indigenous community which has developed a wildlife tourism initiative. While retaining their traditional herding practices, the local community has initiated game-monitoring and protected wildlife from poachers, devised guidelines for appropriate tourist behaviour and started a camp site. Local people act as guides, tourists are charged a daily levy which goes directly into the local community and local crafts are sold to tourists. While, almost inevitably, some sociocultural effects have arisen as a result of this initiative, this example demonstrates that local people can create the type of development that suits their needs without destroying the natural resource base. In the National Development Plan 3 for 2007/2008 to 2011/2012, a number of culture villages were also envisioned, to assist local rural communities to develop cultural tourism to aid poverty alleviation and promote economic development. This is also part of a wider strategy to reduce urban–rural inequalities in income distribution. WTTC (2006) suggested that Nambia may create 36 000 more jobs in tourism by 2016.

Further reading

Gehrels, B. (1997) 'Namibia: Rhetoric or reality?' In Focus, 23: 15-16. London: Tourism Concern.

Jenkins, C. (2000) 'The development of tourism in Nambia', in P. Dieke (ed.) The Political Economy of Tourism in Africa. New York: Cognizant.

Nambia Ministry of Environment (1999) Draft tourism policy. www.iwwn.com.na/namtour/namtour.html

Shackley, M. (1993) 'Guest farms in Namibia: An emerging accommodation sector in Africa's hottest destination', International Journal of Hospitality Management, 12(3): 235-65.

WTTC (World Travel and Tourism Council) (2006) Namibia: The Impact of Travel and Tourism on Jobs and the Economy. http://www.wttc.travel

Chapter 22

Margate:
Cultural tourism and the British seaside towns

James Kennell, University of Greenwich

Britain’s seaside towns were amongst the earliest tourist resorts to be developed at the coast, but despite their early prominence, the tourism industry in Britain’s seaside towns has been in decline since the mid- 1970s when increasing competition from newly developed holiday destinations and changes in the dynamics of the tourism market made the traditional week-long British domestic seaside family holiday obsolete.

Over a period of twenty years, most of Britain’s seaside towns suffered from the multiple impacts of a declining tourism industry: unemployment, poor infrastructure, redundant buildings and facilities and poor image.  Margate is a seaside town in the southeast of England that has taken an innovative approach to reversing this decline.

Margate in Kent is certainly one of the earliest of England’s seaside resorts. It was first served by coaches and then steamers, which came up the river Thames from London to this destination on the North Kent coast. Later, the opening of the Margate Sands railway station made this one of the most popular seaside resorts of the 19th and 20th centuries. In 1830, Margate was receiving more than 100,000 visitors a year by sea and, by the 1960s, annual visitor numbers had risen to 32 million.

The decline of the seaside tourism market from the 1970s was felt particularly keenly in Margate, where the economy was overwhelming dependent on tourism income.  By the 1990s, the economy had failed to diversify and was still heavily dependent on a shrinking tourism market. Thanet, the local government district of which Margate is the most significant area, is the 60th most deprived of 354 local government areas in England.

Local government and funding agencies took the decision to seek new forms of economic activity to stimulate the visitor economy and revive the town. This included the promotion of a cultural quarter in the ‘old’ town area of Margate and the construction of a new art gallery. It was hoped that the economic impacts of cultural tourism, through direct benefits and secondary spending in the local economy, would drive the regeneration of this faded resort.

In April 2011, Margate’s new ‘Turner Contemporary’ gallery opened.  Just two years later it had received more than one million visitors, exceeding forecasts that had said it would attract 300,000 new visitors to the town in this period.  As well as attracting tourists, the gallery has created £21m of economic activity in the area and supports around 130 jobs regionally.  More than 35 new businesses have opened in the town’s old town and existing shops have seen takings double since the gallery opened.

The example of Margate shows how destinations that have been defined by their core coastal attributes and that have served the needs of mass tourism can be re-invented using new forms of tourism and thinking creatively about their markets.  Not every formerly popular resort can follow the cultural tourism route, but diversification into modern tourism markets offers the hope of new economic activity for formerly busy coastal resorts.

References:

Kennell 2011, Arts Council England 2013

Arts Council England (2013) ‘Turner Contemporary: a million reasons for Margate to celebrate’ [online]
Available from: http://www.artscouncil.org.uk/news/arts-council-news/turner-contemporary-million-reasons/
Accessed 28th October 2013

Kennell, J. (2011) ‘Rediscovering cultural tourism : Cultural regeneration in seaside towns’ in Journal of Town and City Management, Vol.1, No.4, pp.364-380

Chapter 23

Enclave tourism in Africa

There has been a long tradition since the 1970s of research on enclave tourism in LDCs. These studies question the economic development benefits of such forms of tourism, since visitors arrive in the main urban centre and are then transported to resorts/complexes, organized and managed by large organizations. Often these resorts are in remote areas and do not take account of local community needs, thus few benefits accrue to these areas. This is because of leakage, due to control of tourism spending by the highly organized form of tourism in the resort, a concept pioneered by all-inclusives such as Club Med. In LDCs, the disparities become even more profound due to the need to import luxury goods to meet the needs of enclave tourists, often equated with five-star tourism. This form of tourism is often controlled by a local elite or MNCs.

In Botswana, this model of development has occurred in the Okavango Delta which has a number of transport links via one gateway airport (Maun International Airport). Visitors enter or depart from this gateway and are then transported by air or road to the delta to see wildlife. As Mbaiwa (2005) found, tourism has grown from a standing start in 1996 to the second most important economic activity in Bostwana, with over a million visitors going to the Delta by 2002. An upmarket tourism product has been developed. Yet foreign ownership of the tourism plant (e.g. lodges and transport) as well as concessions to view wildlife has led to an enclave style of development. Low levels of local involvement in the running of tourism enterprises and limited capital have effectively isolated many indigenous people from becoming entrepreneurs.

Much of the revenue from tourism is repatriated from the hotel and transport sector since it is paid for outside Botswana, especially with the international airlines which compete with Air Botswana (e.g. South African Airlines, KLM, Lufthansa and British Airways). The cost of importing food for tourists and payment of expatriate staff simply adds to leakage of revenue. A lack of taxation, with some companies not liable for local tax, reduces the benefits for the local economy. Weak linkages in the local economy are not assisting in locally beneficial tourism development. Many of the people employed locally experience the low pay and conditions of LDCs. Thus tourism has not been a major catalyst to eradicate poverty. Indeed, Mbaiwa (2005) points out that while there has been economic growth in tourism in the 1990s, rural poverty in the Delta has increased. Much of the effects have occurred because government tourism policy since 1990 to attract low-volume, high-spending visitors has detracted from encouraging casual budget travellers and campers who would add more value to the local economy.

Further reading

Mbaiwa, J. and Stronza, A. (2010) 'The effects of tourism development on rural livelihoods in the Okavenga Delta, Botswana', Journal of Sustainable Tourism 1 (5): 635 - 656

Chapter 24

Factors influencing the tourist experience at visitor attractions: Key studies and issues

Clawson and Knetsch (1966: 170) in their seminal work on outdoor recreation point out that ‘the quality of the recreation experience is affected by the design, the investment and the management of outdoor recreation areas’. Likewise Heeley (1989) recognized that design issues, such as signposting and seating provision, present an image of the attraction to the visitor, which may or may not be favourable. Coupled with the physical management of the site is the importance of customer care, acknowledging the crucial relationship between the staff, the service and the needs of the visitor. Laws (1998) observed that each element is important and a lack of care – whether it is in the signage, car parking, quality of catering or cleanliness of the toilets – can destroy the overall visitor experience. Indeed, Schouten (1995: 260) states that the attitude typified by ‘visitors: who cares about them, they come anyway, so why bother?’ is beginning to change at more professionally run and managed attractions. But as Schouten (1995) argued, in many cases there is still a gap between the product and visitor perception, which will be returned to later under service quality issues. Interestingly, Graefe and Vaske (1987) emphasized the influence of other visitors within the tourist site or destination. Visitors respond to perceived levels of crowding and this impacts on the resource base and can lead to dissatisfaction with the site or, indeed, displacement of the visitor.

In reality, the tourist experience is likely to be affected by a wide range of factors, some of which are inevitably not linked with the destination per se, but which hinge on the mood and personal circumstance of the visitor. Page (1995: 24) notes that the tourist experience may be affected ‘by individual, environmental, situational and personality-related factors as well as the degree of communication with other people’. The experience is also likely to be affected by the expectations and preconceived ideas that the visitor may possess prior to a visit, as well as the cultural origin of the visitor and prior socialization. The recognition of these individual factors reflects the modelling of consumer-based experience when previous product experience or expectations influence the satisfaction/dissatisfaction process. Ryan (1997) highlights the overall importance of a closer understanding of social factors and individual motivations to more precisely identify the range of factors which impact upon the tourist experience in terms of how tourist expectations are shaped and the outcome as satisfaction or dissatisfaction. This is a vital starting point in any conceptualization of the visitor experience, so we can better understand how individuals reach these perceptual decisions on the overall experience of tourism.

References

Clawson, M. and Knetsch, J. (1966) Economics of Outdoor Recreation. Baltimore, MD: Johns HopkinsUniversity Press.

Heeley, J. (1981) ‘Planning for tourism in Britain’, Town Planning Review, 52 (1): 61–79.

Laws, E. (1998) ‘Conceptualizing visitor satisfaction management in heritage settings: An exploratory blueprinting analysis of Leeds Castle, Kent’, Tourism Management, 19 (6): 545–54.

Page, S.J. (1995) Urban Tourism. London: Routledge

Chapter 25

Accidents and injuries in adventure tourism

Following a decade of research monitoring accidents and injuries in the adventure tourism industry, Bentley and Page (2009) reviewed a range of studies to understand what problems contributed to these injuries. One study by Bentley, Page and Laird (2001) pointed to the problems which contributed to accidents and injuries. This led them to construct a model which attributed the risks of participating in adventure tourism to a series of interconnecting factors which combined the:

  • problems of clients participating (i.e. human failures in communicating levels of risk and experience levels)
  • environmental factors (i.e. the unpredictability of the terrain, natural environment and hazards)
  • equipment-related problems, such as failures of safety equipment
  • significance of factors outside the control of businesses (i.e. weather and forecasting)
  • management and organizational failures, including a lack of experience among employees and failure to brief clients properly and to undertake safety audits and risk assessment of activities, as well as cultural problems in seeking to save money by taking short cuts among some businesses.

Research in Scotland by Page, Bentley and Walker (2005) and in New Zealand (Bentley et al. 2007; Bentley and Page 2009) reinforced the applicability of such a model in adventure activities along with the problem of safety issues for predominantly small operators (i.e. employing fewer than five staff) in this sector. One consequence of research by Page et al. (2005) is that one can begin to construct a distinct geography of injury/accident risk by tourist board region according to:

  • the number of clients and type (i.e. day visitor, domestic or international visitor and adult/child)
  • activity type (land-, air- or water-based or mixed)
  • number of participation hours which are expressed in Figure 2 in terms of injuries per million participation hours (IPMPH) so that the risk can be standardized in terms of the risks faced in terms of how long each activity lasts.

The results indicated that  certain regions with a highly developed adventure tourism sector (e.g. Perthshire) have a high concentration of injuries reflecting the prominent nature of these activities in this region of Scotland.

The consequences of such research reinforce the importance of regulatory bodies and codes of practice to improve client safety as well as a need to raise standards to the levels of best practice that exist within the tourism industry. However, as the legal case history research in New Zealand shows (Callander and Page 2003), there is a trend towards litigation when adventure tourism accidents cause personal injury and loss, despite the provisions of the country’s unique No Faults, No Suing accident compensation legislation. What this case study shows above all is that accidents and injuries attract litigation against a global growth in the participation of adventure tourism. Visitor risk may be understood more fully if the hazards are understood, the behaviour of visitors is appropriate in the adventure setting, effective precautions are taken and warnings on possible hazards are given by adventure operators.

References

Bentley, T., Page, S.J. and Laird, I. (2001) ‘Accidents in the New Zealand adventure tourism industry’, Safety Science, 38 (1): 31–48

Bentley, T. and Page, S.J. (2008) ‘A decade of injury monitoring in the New Zealand adventure tourism sector: a summary risk analysis’, Tourism Management, 29 (5):857 – 869

Callander, M. and Page, S.J. (2003) ‘Managing risk in adventure tourism operations in New Zealand: A review of the legal case history and potential for litigation’, Tourism Management, 24 (1): 13–23.

Page, S.J., Bentley, T. and Walker, L. (2005) ‘Scoping the nature and extent of adventure tourism operations in Scotland: How safe are they?’ Tourism Management, 26 (3): 381–97.

Chapter 26

Squamish and event development

Squamish is located in British Columbia, Canada and is 45 minutes north of Vancouver and 45 minutes south of Whistler, a major ski destination, with a resident population of 15 000 people. It has been called the Outdoor Capital of Canada and has a vibrant tourism industry. Squamish has an economy based on transportation and forestry but it has become notable for its increased interest in outdoor activities and its ability to harness these in relation to events to grow its tourism market, which was recently boosted by the decision to host the 2010 Winter Olympics in Vancouver. The Games are expected to have a spill-over effect into nearby tourism destinations such as Squamish. One result has been the investment of C$2m in an adventure centre followed by the formation of a DMO to help market and promote the destination and its desire to attract events. Three core products drive the outdoor activity market in Squamish:

  • Mountain biking: the area has developed hundreds of trails stretching over 1000 km and established the Test of Metal Mountain Bike Race event with 800 riders competing while local biking organizations have expanded (e.g. Squamish Off Road Cycling Association and Squamish Trails Society). This has helped to create a vibrant bike-related tourism product which supports local bicycle shops and regional biking attractions;
  • Climbing: with the world’s second-largest granite monolith and over 1500 routes within a 20-minute drive of Squamish and the successful Squamish Mountain Festival which features clinics, speakers, competitions, international adventure films, volunteer trail maintenance days and parties;
  • Eagle watching: emerged after the recording of 3769 Bald eagles in the 1994 winter migration during November to February. By establishing an inaccessible site – the Eagle Run Park – it has provided viewing sites with interactive boards and Eagle Watch explaining the relationship between the eagles/salmon/forests. This is set in over 755 hectares which is protected for the eagles with no trails. Brackendale Art Festival also hosts an event – an annual eagle count where volunteers from all over the world break out into teams to conduct the bird count accompanied by music, slideshow, art displays, and speakers.

This provides a broad portfolio of activities for a relatively small destination. Among the key success factors in developing an events focus to driver visitation, according to Tourism Squamish, is a process of community engagement at all levels to get buy-in to activities among businesses and individuals, with many volunteers contributing to the event development in the destination. Partnerships at a corporate, government, and local business level have been formative in creating synergies and successes in collaborative event development. Tourism Squamish is a community DMO and has a community tourism plan in which events are a key element in growing wider awareness of its tourism products and experiences. To help develop the destination and its position within Canada, community groups in 2001 decided to develop a Municipal Brand which has also attracted an incoming population and has spawned a new list of events/festivals to support the claim such as a white-water festival, the North American windsurfing championships, trail-running competitions and adventure races.

Further reading

http://www.tourismsquamish.com

Chapter 27

Future changes in air travel:
The role of technology – the A380

Many forecasts of changes in global air travel recognize that annual growth rates in excess of 5 per cent per annum may pose a significant challenge for airlines and airports in accommodating the level of expected growth. One solution mooted by carriers is the move towards larger aircraft which are currently under development by one leading aircraft manufacturer, the Airbus Industries consortium in Europe. While Boeing examined the viability of such a project, it has focused on aircraft production to meet the medium- to long-haul market, considering that there would only be demand for 400 aircraft larger than a jumbo jet in the next two decades. Its focus is on long-range medium sized aircraft like the new 787 ‘Dreamliner’ to be launched in 2009, with 250 seats and a cost of £60 million. In January 2005 Airbus Industries unveiled the Airbus A380 outlining the potential changes that may occur in air travel over the next decade. The A380 is a £10 billion project which will initially be a jet aircraft capable of seating between 555 passengers (with larger versions planned) which compares with the 400–500 seating capacity of Boeing 747 (the ‘jumbo jet’). The A380 has a wingspan of 262 foot, a tail fin seven storeys high and, at a cost of £150 million per plane, 50 per cent more space on board than a 747. With a top speed of 565 miles per hour (equivalent to the top speed of a Boeing 747), speed has not had to be sacrificed for size, while the range of the aircraft will be 9000 miles (5 per cent further than a Boeing 747). It also offers fuel savings of 12 per cent over the 747, consuming three litres of fuel per passenger per 100 km.

In March 2000, the UK government provided a loan package to Airbus Industries of £530 million to assist in the implementation of the A380 project. One of the major challenges of increased aircraft size is that they will need to fit into the existing infrastructure (e.g. airport aprons and slots) and the A380 is intended to fit within an 80 × 80 m horizontal box so that airports can accommodate the new aircraft without massive redevelopment work. Airbus Industries expect that the A380 will be able to use the existing runways, taxiways and gates although it will place additional pressure on ground-handling facilities, with increased numbers of passengers at check-in gates and in holding areas. The gate-handling facilities will certainly need expanding to accommodate the increased numbers at the gates and ground-handling facilities (e.g. luggage transfer) will have additional pressures placed upon them. Some airport authorities are also concerned about the complementary infrastructure required to serve the needs of passengers to get to and from terminals, where existing airports are already facing growing pains from additional increases in passenger use. British Airports Authority spent £450 million to modify Heathrow airport to accommodate the aircraft, since it is only expected to operate on global trunk routes between the world’s top 60 airports.

There are varying forecasts on the likely demand for larger aircraft like the A380. Airbus hopes to be able to produce and sell 750 A380s and this is based on the assumption that in the period 1999–2018, world airports will be able to accommodate a 95 per cent increase in daily departures. In terms of the usage of aircraft, the top 25 world airports are expected to absorb 30 per cent of all world air traffic by 2018 and half the aircraft will be used on flights from the top 60 airports, which will be located in North America, Europe and Asia Pacific. In January 2005, some 149 A380s had been ordered, but the aircraft manufacturer needs to have orders for over 250 to cover its research and development costs: over £5.6 billion has already been spent and this could rise even further. One of the largest orders was by Emirates, which signed up in 2000 for 45 A380s. For global airline operators, the A380 is set to revolutionize long-haul travel with the first truly double-decker aircraft, with a lower breakeven point for profitable operation (i.e. 58 per cent load factor compared to 70 per cent for the 747) which increases the potential profit margins for airlines able to fill the seats. Above all, lower operating costs, typically 15–20 per cent below the 747, are expected to give airlines more flexibility on the configuration of seats/on-board facilities as well as the pricing of air travel.  However, due to costs of production and a relatively low take up rate by global airlines, Airbus announced its decision in February 2019 to end Airbus A380 production by 2021.