Making the most of ICT-based
opportunities for developing tourism in
destinations
Dr Roger Carter
Managing Director, TEAM
WTO Affiliate
UNCTAD Expert Group Meeting on ICT and
Tourism for Development
30 November 2005
Introduction to TEAM
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WTO Consultant and Affiliate Member
Co-authored the WTO Business Council publication, “Marketing
Tourism Destinations Online”, 1999, + successor publication “EBusiness for Tourism, published in October 2001
Consultant in strategy, business planning and operations for
tourism destination organisations – strong focus on e-business in
all our work
Clients include the World Tourism Organization, European Travel
Commission, Western Cape TB, Seychelles TMA, Enterprise
Estonia, VisitBritain, Irish, Scottish and Wales TBs, and Destination
Management/Marketing Organisations (DMOs) throughout the
UK
Managers of the European Travel Commission’s Web site, “New
Media Review”, which monitors trends in the use of new media
by consumers in all major tourism markets
Publishers of ‘DMO World’, a newsletter for tourism destination
organisations around the world
Agenda
• Key trends in the use of ICT in general and for travel
and tourism
• Key roles for ICT/e-business in destination
management and marketing
• E-business model for tourism destination communities
• Options for acquiring ICT/e-business systems
Agenda
• Key trends in the use of ICT in general and for travel
and tourism
Rapid growth in use of the Internet
Number of Internet Users Worldwide
(in million)
1400
1,350
1,210
1200
1,070
934
1000
814
800
665
544
600
413
400
200
284
184
44.5
0
1995 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Computer Industry Almanac (as quoted by ClickZ Stats in September 2004) /
eTForecasts for earlier figures (December 2002)
Both Computer Industry Almanac and eTForecasts feature the same data.
Growth in the use of broadband
Number of Broadband subscribers worldwide
2002-2007
250.0
250
200
150
98.8
100
100.0
63.0
50
0
2002
Source: eMarketer, April 2004.
2003
2004
2007
Internet users forecasts by world region
Internet users by region, 1997-2006 by regions
600
500
USA
N. America
W. Europe
E. Europe
Asia
S/C America
M. East/Africa
400
300
200
100
0
1997
2000
2003
Source: eTForecats (www.etforecasts.com), July 2001.
2006
Internet users by world region
Number of Internet Users Worldwide by region
as in March 2005 (in million)
Africa
13.5
Oceania/Australia
16.3
19.4
Middle East
56.2
Latin America/Caribbean
221.4
North America
Europe
259.7
302.3
Asia
0
50
100
150
200
Source: Internet World Stats statistics updated on 24th March 2005.
250
300
350
Increasing Number of Wireless Internet users
(eTForecasts)
Worldwide
USA
1500
1500
1000
1000
500
500
0
0
2001
2004
2007
2001
Western Europe
1500
1000
1000
500
500
0
0
2004
2007
Asia-Pacific
1500
2001
2004
2007
Non-Wireless Internet Users
2001
2004
2007
Wireless Internet Users
Billion US$ p.a.
Trends in overall online travel market size in
the US, 2000-2004
55
50
45
40
35
30
25
20
15
10
5
0
52.8
39.4
26.5
20.2
13
2000
2001
2002
2003
2004
Source: PhoCusWright (various articles: Nua - December 2001, eMarketer - February
2002 and PhoCusWright itself – July 2004).
Value of US online travel market 2003-2009
US online travel booking revenues
2003-2009 (in billion $)
100
80
60
40
46
54
62
70
77
84
91
20
0
2003
2004
2005
2006
2007
2008
2009
US online travel booking are expected to reach $91 billion by 2009 at which time it will
represent 33% of the total US travel revenues. By comparison, in 2004 it represented only
23% of total US travel revenues.
Source: JupiterResearch, quoted by ClickZ Stats in November 2004.
Trends in overall online travel market size
in Western Europe, 1998 – 2006
Trends in overall online travel market
size - Western Europe 1998-2006
30
26.9
In billion Euros
25
22.3
20
17.6
15
12.5
8.34
10
4.813
5
0.225
0.79
2.453
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
Source: Carl H. Marcussen “Trends in European Internet Distribution of Travel &
Tourism Services”, April 2005 (Centre for Regional and Tourism Research – Denmark
http://www.crt.dk/trends)
Latest US online travel trends
% of US travel booked online
2002
15%
2003
21%
2004
27%
2005
32%
2006
35%
Sources: PhoCusWright data from June 2004 (quoted by eMarketer in
March 2005)
Sources used to find out where
to go in 2005 in various markets
Personal recommendation
Russia
59%
India
59%
Web search
37%
Visit travel agent's office
24%
32%
51%
Denmark
54%
55%
USA
54%
58%
Japan
52%
China
51%
Brazil
50%
Australia
50%
Germany
49%
Canada
49%
Mexico
47%
Spain
44%
Netherlands
43%
PoIand
42%
UK
39%
France
36%
Italy
33%
61%
35%
Korea
30%
69%
23%
0%
8%
12%
53%
32%
20%
29%
63%
26%
19%
25%
62%
14%
20%
23%
22%
10%
7%
4%
23%
19% 7% 5%
100%
11%
11%
24%
13%
1%
26%
9% 7%
26%
65%
21%
17%
6%
8%
26%
60%
50%
39%
33%
25%
11%
35%
7%
13%
25%
50%
64%
44%
29%
57%
47%
7%
12%
50%
13%
31%
16%
26%
65%
36%
15%
16%
33%
Other
1%
31%
21%
22%
Read a newspaper
7%
13%
27%
See TV program
14%
5%
8%
22%
11%6%
22%
8%
12%
150%
Source: Global Market Insite (GMI) Survey of 18,000 consumers globally, June 2005.
200%
250%
300%
Sources used to search for last minute
deals by UK holidaymakers in 2005
22%
Tourism websites
Local high street
travel agent
29%
Personal
recommendations
from friends & family
32%
Traditional paper
holiday brochures
34%
Online travel
agencies
0%
51%
10%
20%
30%
40%
50%
60%
Source: Survey by Amadeus of 2,000 UK holidaymakers conducted in May 2005 (reported by travelmole).
Sources used by affluent US consumers to
obtain travel information in 2004
Email newsletters
24%
Travel agents
35%
Referrals
42%
Travel magazines
47%
Internet search engines
76%
0%
20%
40%
60%
80%
100%
Source: a study by Thomas, Townsend & Kent, reported in eMarketer, September 2004.
Primary source of information for planning
travel by Canadians in 2003
Other
2%
Tour Operators
2%
Newspapers
Brochures
Auto clubs
5%
6%
7%
Family & friends
14%
Travel agents
14%
35%
The Internet
0%
Source: Ipsos-Reid, August 2003.
10%
20%
30%
40%
Changing use of online booking
The new tourist – a summary of changing
behaviour, attitudes and values
• Takes more and shorter holidays
• Makes decisions later, reducing the lead time
• Seeks more individual offers; self-enrichment; better,
immediate information about the product and the
destination; better service
• Is more mobile and critical; more brand aware but less
loyal; more price sensitive
• Is more knowledgeable about international travel
And
• Has access to the Internet to obtain instant, in-depth
information and booking
And
• Has access to low cost international air travel
Agenda
• Key trends in the use of ICT in general and for travel
and tourism
• Key roles for ICT/e-business in destination
management and marketing
Destination management and marketing functions
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Destination marketing, including branding and image
Marketing campaigns to drive business, particularly to SMEs
Unbiased information services
Operation/facilitation of bookings
Destination coordination & management for visitor ‘quality of
experience’ + involvement in the daily operation
Visitor information and reservations
Strategy, research and development
Training and education
Business advice
Product “start-ups”
Events development and management
Attractions development and management
Destination marketing
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Destination marketing, including branding and image
Marketing campaigns to drive business
Unbiased information services
Operation/facilitation of bookings
Destination coordination & management for visitor ‘quality of
experience’ + involvement in the daily operation
Visitor information and reservations
Research and development
Training and education
Business advice
Product “start-ups”
Events development and management
Attractions development and management
Destination management
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Destination marketing, including branding and image
Marketing campaigns to drive business
Unbiased information services
Operation/facilitation of bookings
Destination coordination & management for visitor ‘quality of
experience’ + involvement in the daily operation
Visitor information and reservations
Research and development
Training and education
Business advice
Product “start-ups”
Events development and management
Attractions development and management
Destination management
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Destination marketing, including branding and image
Marketing campaigns to drive business
Unbiased information services
Operation/facilitation of bookings
Destination coordination & management for visitor ‘quality of
experience’ + involvement in the daily operation
Visitor information and reservations
Research and development
Training and education
Business advice
Product “start-ups”
Events development and management
Attractions development and management
E-Business for destination management
Function
Destination management for
visitor ‘quality of experience’
Visitor information and
reservations
Strategy, research and
development
Training and education
E-Business supported activity
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Business advice / support
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Visitor needs/ satisfaction research
Project planning/ management
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Communication network for destination partnership
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Problem alert system
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Product data search and presentation
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Reservations
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Digital audio/video guides
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Information centre management
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Strategic research, including impact assessment
Evaluation
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Online surveys
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Distance learning
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Networking between institutions to share resources
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Practitioner input
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E-newsletters
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Knowledge bank – research, plans, case studies, advisory
handbooks/ videos, etc
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Business management tools
Online support
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Business planning tools, case studies, knowledge bank (as above)
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Start-up online advisory support, including financial advice
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Market analysis
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Project planning and management
e-Marketing
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Business management tools
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Online support
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Market analysis
e-Marketing
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Business management tools
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Online support
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Product “start-ups”
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Events development and
management
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Attractions development and
management
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Agenda
• Key trends in the use of ICT in general and for travel
and tourism
• Key roles for ICT/e-business in destination
management and marketing
• E-business model for tourism destination communities
The destination as a community
• The destination represents the focal point for all the
players in tourism whose interests are interdependent –
government, residents, suppliers, carriers, major
corporations, intermediaries, consumers
• A core role for DMOs is bring together those players to
work together in a meaningful way
• The DMO’s ICT/e-business systems potentially provide key
media for these players to work together in destination
management and marketing
• These systems enable the DMO to communicate with all
the players – but also, for the players to communicate with
each other
• The destination community e-business system may be
represented like this ……
Travel
Trade/ Group
Organises
Conference
Buyers
Travel
Media
PC
Handheld
Handheld
PC
Handheld
Consumers
at home
TV
Reservations
Handheld
Internet
Community
– Residents,
Schools, etc
Online
surveys
PC
Product
Customer
Impact
Analysis
CRM/
Contact
mgmt
Major
Partners –
Public &
Private
PC
PC
Visitor
Services &
Management
Call
Centres
Tourism
Information
Centres
PC
Market
analysis
PC
PC
PC
‘Push’
marketing
MIS/
evaluation
Tourism
Facility
Operators
Handheld
Image
library
Knowledge
PC
Kiosk
PC/TV
(Hotel)
CMS/
Web
Publishing
Databases
Handheld
Handheld
© TEAM 2002
Print
mgmt
Info
search
PC
Visitors –
Mobile
PC
Handheld
Tourism
Marketing
Tourism
Development
& Business
Support
© TEAM 2000
© TEAM 2000
Implementing the community
• Three year agenda for development
• Many different interfaces, each of which may be
subdivided
• A two way process of communications – pull (Web)
and push (e-mail)
• A core pool of data and content that is, or can be,
available to all of the users
• In addition, special messages can be tailored for
particular audiences
Agenda
• Key trends in the use of ICT in general and for travel
and tourism
• Key roles for ICT/e-business in destination
management and marketing
• E-business model for tourism destination communities
• Options for acquiring ICT/e-business systems
The components of a destination system
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Technical components
Hardware + operating system
A network for communications between the main users
– the Web, extranets or intranets
Software for storing, managing, searching, analysing
and publishing data and content
Web sites (or interfaces) for different groups of users
The components of a destination system
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Data and content – product, customers, knowledge –
traditional assets which must now be positioned at the heart
of the system, designed for multiple purposes and resourced
accordingly
The operations – call centres, kiosk networks, Web publishing,
push marketing, etc. These are all part of the day-to-day
activities of DMOs in an e-business environment and need to
be considered as enterprises in their own right
Two broad approaches for obtaining a
destination system
• Incremental
– Start with product database(s) and one or two
Web interfaces
– Buy-in or develop the functionality and add in
new interfaces over time in response to expressed
user requirements
• Planned system
– Work towards the concept of a fully integrated
system, normally for multiple user groups – even if
it is implemented in phases
The incremental approach
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Database management system
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Database structure
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Content management system
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Knowledge management system
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Web publishing
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Print publishing
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Applications of third party Web services developed or
bought-in, when required
Particularly appropriate for DMOs/NTOs with limited resources and
requirements
The planned system approach –
two software options
• Buy a fully integrated software system - e.g.
World.net, TIScover, Visit - as a package ‘off-theshelf’, with some customisation and/or highly flexible
templates.
• Buy or develop a purpose designed system, built
from components:
–
Generic and/or
–
Tourism specific
Planning for an integrated DMS TEAM’s approach
• E-Business strategy – defines the wider e-business
network, provides the framework for action and basis
for buy-in; principal focus is on opportunities to make
existing activities more cost-effective
• Specification of user requirements – a two-way
process
• Functional specification
• Project scoping/Business case analysis
• It is an iterative approach
Planning for an integrated DMS TEAM’s approach
• ‘Request for Information’ from system suppliers or integrator –
optional but educational – may result in changes to the
specifications or the business case analysis and shortlisting of
potential suppliers
• ‘Request for Proposals’ (or ITT) – which should result in an
evaluation of the options based on a variety of factors,
including a systematic assessment of the extent to which the
products will meet the DMO’s detailed requirements
• Implementation Plan – not only the role-out of the ICT, but
also the information management plan, the training plan
and so on….
• As early as possible in this process, appoint the Project
Manager, to contribute to the evolving process
Resumé
• Key market trends, the factors that make it essential
for DMOs to take the use of new media seriously and
recognise its dynamic nature
• Review of destination management and marketing
functions and the way that may be supported by a
e-business
• Concept of destinations as communities, and the
way that may be supported by a destination ebusiness system
• Analysis of the options for acquiring ICT/e-business
systems
Thank you for your attention!
For further information:
Dr Roger Carter
[email protected]
+44 7932 739 453
30 November 2005
Three drivers of change for DMOs
1.
The central role of ICT and the Internet
– Consumers
– Intermediaries
– Tourism businesses
– Internal business processes
2.
Demanding consumers
– Price conscious
– Demanding immediate attention/bookings
– Expecting rich, accurate information
3.
Commercial players
– Operating in your traditional space
– Customer focused
– Efficient business processes
– Effective distribution
– Continual improvement
So, who needs a DMO?
• DMOs have no God given right to exist
• They must add value by doing things that the private
sector does not wish to do or cannot do as efficiently
and as effectively as the DMO
• DMOs must be clear about where they can add value
and develop a high level of competence in these
areas
• Most importantly, they must become expert in
exploiting the opportunities that ICT and the Internet
offer
The future role of DMOs
• Running a DMO is not easy. You have many masters to
please and diverse, and sometimes conflicting objectives
to achieve
• Combine public and private sector aims - the
achievement of social, cultural, economic and
environmental objectives for the destination with the
delivery of business to the tourism industry
• The tasks of DMOs are many, as shown in the next slide