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NEW:
Jan 2004 Previous:
April 2001
Ethical
Marketing for Sustainable Tourism - 2
What's
the Buzz?
The Travel and Tourism industry is in chaos:
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Since 9/11, international passenger numbers are reducing/stagnating. Tourists are fearful of both potential terrorism and the measures taken against it spoiling or destroying their trip - or even their lives |
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The US$ is in free-fall, dramatically reducing the numbers of exUS travellers by increasing their costs by up to 30%. |
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The
internet has dramatically altered the geography of tourism
marketing and the logistics of tourism. The old model of
departure-area operators and agents serving a local
clientele (PUSH) is rapidly being replaced by PULL
(internet-specific companies and local facilities offering
their services directly to an international market) |
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The "Dinosaur" tour operators, the megalithic companies who created the amazing growth of the inclusive tour, are seeing their business models fail and their profits collapse. |
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The old business-model airlines are unprofitable and there is a rapid
re-organisation of the marketplace, airline mergers and bankruptcies are reducing available capacity. |
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The new business-model airlines - the low-cost carriers - are beginning to realise that their formula (cheap fuel + cheap airplanes +low service standards + government subsidies = low prices = high numbers = marginal profit) is ultimately unsustainable. |
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Due to a worldwide excess of capacity, and the historically price-sensitive marketplace prices and hence profitability is now perennially under threat. |
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The growth of the package tourism industry was based on low costs (both to suppliers and staff) generating low selling prices for high passenger uptake. Now, it appears that the industry does not have the quality human assets needed to deal with this traumatic time. |
Looking at this picture, it would not seem the time to enter the tourism business at all, much less to create products that necessarily have a high value-added. Nonetheless, the growth of the "Sustainable" tourism sector is pretty dramatic, albeit partly fuelled by at least $8bn of donor money.
But tourism is in a period of change and re-organisation, and change often presents real opportunities. As in the case of the advertising and marketing industry - which, of course, fostered tourism's dramatic growth. At the beginning of the tourism boom advertising agencies bought space and time (on behalf of tourism companies amongst others) in a limited number of media on a percentage of the spend. Agencies grew dramatically and entered other disciplines (such as Public Relations and the "New" science of marketing) to enhance their value-added. Loosely-targeted messages were delivered to a bulk marketplace via restricted
media.
By the 1990's the architecture of advertising was in a period of really traumatic change. Satellite and cable TV was exponentially increasing TV selling opportunities with 1,000's of channels; the internet (possibly the biggest selling opportunity ever) was in its infancy; the use of mobile telephone was beginning its growth, and challenging landline costs, leading to a vast teleselling industry. Plus - there was a worldwide slump and Advertising Agency margins were dropping dramatically - leading to a substantial rathionalisation in the industry. By the 1990's the old Advertising Agency model was being challenged, destroyed and re-created in a new mould.
"Below the line" advertising and marketing expanded, whilst the established "Above the line" space and time buying basically marked time. New agencies, specialising in off-beat promotions, internet marketing,, telephone and SMS marketing, WORM (Word of Mouth) and BUZZ marketing proliferated. The advertising agencies that recognized that their clients' markets had changed, and addressed them, grew stronger whilst those that didn't either contracted or died. There is no clearer case than the battle between the advertising moguls Saatchi & Saatchi (Cordiant) and WPP. The former (concentrating on "Message" advertising) failed, whilst the latter (a "Flatter" company with multitudes of disciplines in smaller units) grew to further dominate the marketplace with its "Insight" groups.
Much the same thing is happening in the world tourism marketplace. The old formulas are dying or dead, rapidly being replaced with new attitudes and completely new buying mechanisms. In the UK, for instance, MyTravel (one of its biggest mass tour operators ) is on the ropes whilst First Choice (split into lots of specialist units) beats its profit forecasts - precisely the same movement that happened to the advertising industry.
The rules are "Mass is out, specialisation is in", "Blanket-coverage is passe, pinpoint marketing is hip"
And the reasons are simple. Top of the consumer's hierarchy of needs, and by far today's biggest marketing motivator is "Self Actualisation". For many decades it was enough to buy a holiday to actualise yourself as a traveller, to move up the ladder by spending more - more luxurious hotels, better class flying etc. Now, our opinion-leaders are taking us in a multitude of different directions. And, as far as tourism is concerned, it's now not just "Where you go" but also "What you do" and "How you book" that provides your actualisation. This whole trend is dramatically facilitated and leveraged by the internet, cable and satellite TV, cheap telephone, cellular telephony and a plethora of other new communications methods.
So, the tourism marketplace is metamorphosing. In the place of mass package holidays, tourists are now buying more and more specialist arrangements. In the place of megalithic tour operators, tourists are now purchasing from a variety of sources including internet travel providers, low cost airlines, specialist travel companies, and direct from ground handlers/destination marketing companies and accommodation units. In the place of beach holidays for relaxation , tourists are now buying more specific activity holidays to improve their
self-actualisation.
So, just how is sustainable tourism a part of these major movements, and just how can it fully benefit from the opportunities that are now presented?
My favorite definition of sustainable tourism is:
'Sustainable tourism is tourism development formed in consultation with local communities, businesses and other stakeholders. It aims to allow tourism to develop in a way that is fair and equitable for host communities. It is economically sustainable in the long term, and avoids damage to tourist attractions or the physical environment. It offers high quality, diverse experiences to tourists in both the mainstream and specialist markets.'
(Sustainable Tourism, Moving from Theory to Practice: a report prepared by Tourism Concern Published by WWF-UK, Tim Forsyth, 1996)
It is clear that the major stakeholders in sustainable tourism are local shops and restaurants, local attractions, and local tourism employees and potential employees, By far the most important grouping, which has the most tangible investment, and the one that is viscerally attached to the results of tourism marketing is local accommodation owners from B&B's to
independently- owned hotels. Provided that locally-owned hotels and B&B's are full with tourists, the tourism spend becomes more weighty and the trickle-down opportunities more diverse.
It is also clear that sustainable tourism in all its forms (potentially including Eco-tourism and Green Tourism) is already benefitting from these market changes.
"By 1995 the size of the nature-related tourism market had been estimated at anything between 7% and 15% of the total market - say a global $50bn. And it was said by the World Tourist Organisation to be increasing by 20% per annum - some 6 times the rate of increase of standard tourism. If these projections are anywhere near correct, by 2002 the nature tourism market should have reached $100bn or some 20% of total international tourism spend - without the regional and local tourism spend. No wonder the WTO and the WTTC are so interested!"
(Totem Tourism Marketing Report Spring 2003)
All this growth in potentially sustainable tourism is further accelerated by three major factors:
Security fears are reducing (or restricting) the international tourism markets, with a consequent increase in the domestic and regional markets, where sustainability issues are more easily addressed and advertised, and tourists more able to make their own personal decisions.
Donors now better appreciate the opportunities sustainability provides for local economic and cultural regeneration and are providing massive funding and assistance for sustainable tourism projects - at least $8bn is currently invested worldwide by the EU, the World Bank, USAID, GTZ, and the UNDP amongst many others. Furthermore this is double the amount of 10 years ago and this dramatic growth rate is thought unlikely to change.
B&B's and small, individually-owned eco-lodges and hotels - the basic building blocks of sustainable tourism - are experiencing a dramatic sectoral growth, partly because of the lifestyle choices of 1st World retirees and divorcees, partly because of donor funding and training programmes in other countries (e.g. UNOPS/PSARP program, training for bed and breakfast development for groups of women in Himara, Albania).
So, how is Sustainable Tourism to harness this market movement and growth in investment to make itself truly "Sustainable"?
Given that the deliverers of the sustainable product are, by their nature a diverse and fragmented crowd - possibly over a million B&B's worldwide and increasing at 20% pa - as individual as their owners, there is no chance of proffering a global brand to a global public. This would, in any case destroy the diversity, individuality and local-ness that is at the heart of sustainable tourism.
The changing consumer marketplace is dictating a need for proactive market access strategies for countries seeking tourists. there's so much competition that access to markets is becoming the crucial factor in success or failure. Tourists are simply hard to find.
The solution must be to link state-of-the-art marketing with the sustainable tourism sector - and this is not as difficult or as inappropriate as it seems. In fact, nowadays, the two are a very appropriate mix, delivering "Ethical Marketing for Sustainable Tourism".
"It is clear that the general public are becoming more and more disillusioned with, untrusting of, and generally annoyed with, the massive increase in advertising messages however they are delivered. "In the advertising arena, everyone is trying to get noticed and this results in clutter. Indeed the latest figures show that that we are each assailed by about 3,000 marketing messages a week. To acknowledge and act upon even a small proportion of these messages is a huge call on our time. And time is the one irreplaceable commodity that more and more of us are guarding more and more jealously"
Mark Wnek, RSGC Wnek Gosper - in the Independent -
UK.
It is clear that we all are turning to our trusted friends to endorse products and services based on their personal experiences.
It is clear that we all respond less to promotion and more to attraction.
All this has led to the latest, and possibly most sustainable, form of marketing. Ideally suited to sustainable tourism's needs. "BUZZ", or "Word of Mouth" marketing is, in fact as old as the power of speech. Linked with modern communications facilities and scientific, psychologically-based marketing techniques, it provides an immensely powerful, infinitely targetable, tremendously cost effective, rapid-response facility. It fits extraordinarily well with sustainable tourism projects, because for any "Buzz" campaign to be effective, the product advertised needs to be:
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Authentic
- Innovative
- Aspirational
- Unique
- Passionate
- Honest
Moreover, the BUZZ process relies on the precise identification of market needs and the targeting of only the most relevant marketplaces. It depends on the full understanding of consumer geography (a major issue and discipline in itself - to create sustainable tourism products that properly reflect market needs). Most importantly, it can be effected extremely cheaply - ideal for the needs of small-scale tourism - and it is potentially extremely sustainable, building long term interest-communities rather than short term price-oriented individual purchasers. Plus - a BUZZ campaign need use no paper (recycled or not)!
A typical BUZZ campaign would follow this course:
The Travel and Tourism industry is in chaos:
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A clear understanding of the individuals and the market to whom the marketing is to be directed. |
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The identification of the "Innovators" in this discrete marketplace - understood to represent some 2% of the population. |
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The identification of the "Alpha's" (the true opinion leaders) and the understanding of their present and future needs - some 8%. |
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The identification of the "Bees" (those who are the message propagators and communicators) - some 20%. The remainder of the marketplace is expressed in BUZZ language as "Mainstream" (50%) and "Laggards" (20%). |
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The identification of the message appropriate to this marketplace. |
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The identification of the medium(s) to be used (SMS, website, email, event, word of mouth, or other). |
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The creation and delivery of the message and the appropriate responses. |
Almost free advertising, customer loyalty, innovative marketing, quality targeting, instant and sponsored market accessibility, a supreme platform for understanding marketing at its most effective, why should the devil have all the best tunes?
Why should Microsoft, Mango, MacDonalds, Nike, Diesel, Coca Cola, Bulgari, Daimler Chrysler, Adidas and the rest monopolise this effective method, when its true partner is SUSTAINABILITY!
Valere Tjolle
Totem Tourism Marketing
1 The Grove
Bath
BA1 4AT
UK
Tel: +44 1225 313031
Email: valere@totemtourismmarketing.org
Web: www.totemtourismmarketing.org
January 2004
Valere Tjolle is recognised as an innovator, authority and key proponent of direct and alternative marketing and product creation in the travel and tourism industry. He has over 40 years in-depth, practical "Hands-on" experience at every level. As principal of Totem Tourism Marketing,Valere has specialised in the ethical development and marketing of sustainable tourism projects since 1995. Projects have included tourism developments in Africa, USA, UK and Eastern Europe for clients as diverse as the European Union, the World Bank, the Department for International Development and local and international travel and tourism entrepreneurs. Valere specialises in small-scale tourism development, is marketing advisor to a number of accommodation providers and is chair of the advisory committee of a soon-to-be launched UK eco-hotel development.
Valere is also the principal of BandBSuccess.com, the author of "99 Ways to B&B Success' and is currently leading masterclasses in small-scale tourism
marketing.
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©
2003 TOTEM Updated: 07/02/04
email: info@TotemTourismMarketing.org
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