BLUEPRINTFOR THE FUTURE OF TOURSIMBy Greg Klassen, Principal
July 8, 2015
EMBRACING DISRUPTION
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DISRUPTION
BLUEPRINT FOR THE FUTURE OF TOURSIM
The leaders ofthe digital revolution all
want to eat our lunch
Jamie Dimon, CEO JP Morgan
DisruptionApple i-tunes decimates record labels;
Netflix disrupts cable
Hackers disrupt SONY and the movie “the Interview”
Auto and banking are next
Tourism?We’re used to this by now
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DISRUPTION
WHAT DO THESE ORGANIZATIONS HAVE IN COMMON?
BLUEPRINT FOR THE FUTURE OF TOURSIM
world’s largest taxi company
world’s most popular media
world’s most valuable retailer
world’s largest accommodations provider
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WHY IS OUR (DMO) INDUSTRY PARTICULARLY VULNERABLE TO DISRUPTION?
DISRUPTION DMO’s began as intermediaries
Challenges in governance—self interest; short term; status quo; and a democracy
Focused on the short term and tactical under the influence of advertising agencies
Beholden to accommodation industry that collects DMF fees on behalf of the destination
Destinations focus on the “place” over the experience
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and WHY can disruption be
A GOOD THING?
Most of our industry is in airplane mode
Competitive advantage to those
destinations that “game the system” ,
embrace disruption and the new role of the DMO as curators of experiences
Small organizations and DMO’s can compete with the bigger players. Its not about big media buys anymore but about precision targeting
DISRUPTION
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TOURISM’S WINNERS AND LOSERS
Tourism Winners Yesterday
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big icons
big marketing budgets
big agency
uninformed customers
One way communication
Domestic customers; short haul; low hanging fruit
Tourism Winners Tomorrow?
Less competition
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BUILDING MOMENTUM
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our tourism opportunity
2 the disrupters-marketing
3 the disrupters-tourism
4 why this is awesome for small(er)
destinations.
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1Our Tourism Opportunity+Timing is now
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OUR TOURISM OPPORTUNITY
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AN INDUSTRY THAT WILL
DOUBLE BY 2031
GENERATING>$3 TRILLIONIN TOURISM EXPORT REVENUES
Source: Tourism Towards 2030 / Global Overview, UNWTO
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OUR TOURISM OPPORTUNITY
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Source: Tourism Towards 2030 / Global Overview, UNWTO
INTERNATIONALTOURIST ARRIVALS TO
INCREASE BY43 MILLIONA YEAR ON AVERAGE
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OUR TOURISM OPPORTUNITY
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Source: Tourism Towards 2030 / Global Overview, UNWTO
ASIA AND THE PACIFIC WILL ALSOBE THE OUTBOUND REGION THAT
GROWS THE
MOST
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OUR TOURISM OPPORTUNITY
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Source: Tourism Towards 2030 / Global Overview, UNWTO
9% ANNUAL GROWTHIN MILLENNIAL TRAVEL
187 MILLIONTRAVELLERS 18 TO 29
Destination NEXT
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2The Disrupters-Marketing
+Broadcast to Engagement
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TOURISM ADVOCACY LOOP
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LEVERAGING TECHNOLOGY
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Social Media
Big Data
Content Marketing
Personalization Geo-targeting
leverage all kinds of data—web visits, likes in social media, transaction data, clicks on
websites and pull it all together to gather a digital profile of a customer for future marketing
and personalization
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BIG DATA/PROGRAMMATIC
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PERSONALISATION
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reach different consumers with different
creative messages. rather than having to
have a single TV advert that everyone
sees subtly tailor your executions based
on demographics, interests, location or
even purchase history, reaching millions
of consumers with something that seems personally relevant and interesting.
determine the location of a site visitor and the opportunity to deliver
different content to that visitor based on their location—ie.country,
region/state, city, zip organization, and……IP address, ISP,etc.
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GEO-TARGETTING
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WAYBLAZER
Disintermediation squeezing media middle01
COMMON THEMES
Channels ubiquitous; often “free”.02Customers control brands
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Reduced price of entry for SME’s and more even playing field.
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07
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Conversations two way. Listen and speak.
Understand product and how it meets needs of customer.
Understand customer. Then Personalize message and channel
DISRUPTION IN MARKETING
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3The Disrupters-Tourism
+Accelerating Growth
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YESTERDAY’S DISRUPTORS?
DISRUPTION IN TOURISM
Internet disrupting travel agent and tour operator disrupted by scrapers (trivago, kayak)
• Direct sales to consumers
• Online Travel Agents
Air Travel disrupts train travel and auto travel
LCC’s disrupt airlines disrupt established destinations and open up secondary and tertiary city airports
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TODAY’S DISRUPTORS?
DISRUPTION IN TOURISM
•
Airbnb disrupts hotels.
Uber disrupts taxi services.
Google, Yelp, Social sharing, ubiquitous wifi andi-pads disrupts Tourism Information Centres, DMO’s, the Concierge
Vayable and Couchsurfing.com disrupt tour operators
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VAYABLE
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GOGOBOT
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TOMORROW’S DISRUPTORS?
DISRUPTION IN TOURISM
•
Driverless cars disrupting uber?
Virtual travel disrupting actual travel?
Volume of travelers deteriorate iconic sites?
Commoditization of travel experiences—Gap stores everywhere reduce the exotic lure of travel?
McTourism overwhelms locals and restricts tourism
Transparency of prices01
COMMON THEMES
Disintermediation02
Reduced price of travel03
Local and authentic
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05
07
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Heightened choice and competition
Reduced price of entry to tourism business
Sharing economy
DISRUPTION IN TOURISM
Even more insecurity
in booking travel08
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4Why This Is AwesomeFor Small(er) Destinations
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BE THE DISRUPTOROF THE BIG DESTINATION
(AND BIG MARKETING BUDGETS)
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MARKET LIKE
IT’S 2019NOT 1999.
Path to Purchase—OLD School
Evaluation
Advertising/DMSchoolEncylopediaSlide Shows
Consideration Awarenss
1-800 Number and URL’sTravel AgentPlanning GuideDestination Websites
Purchase/Visit
Travel AgentTour OperatorFodorsVIC’s
Experience/Advocacy C’mon backTell your friends
Path to Purchase—NEW School
Evaluation
Social MediaTV showsLifestyle BrandsNew/traditional mediaBig Data, personalization
Consideration Awarenss
10 to 20 websites—Trip Advisor, Destination Websites; Expedia,
Purchase/Visit
Geo-targeting, personalisationMobileGogobot, Vayable, Yelp, Trip Advisor
Experience/Advocacy Trip Advisor, Yelp, Facebook
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DEEPLY UNDERSTAND THE HYPER-CONNECTED TRAVELER
WHAT DO WE NEED TO DO?
1
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DEEPLY UNDERSTAND THE HYPER-CONNECTED TRAVELER
WHAT DO WE NEED TO DO?
12DEEPLY UNDERSTAND THE
MILLENNIAL AND MILLENNIALLY ALIGNED
TRAVELER
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HYPER-CONNECTED CONSUMERSSPEND MORE
THAN 50% OF
THEIR TIME
ONLINELOOKING AT CONTENT
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27,000,000PIECES OF CONTENT ARE SHARED EACH DAY
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73%OF HYPER-CONNECTED CONSUMERS
GET FRUSTRATEDWITH BRANDS WHEN THEIRDIGITAL CONTENT HAS NOTHINGTO DO WITH THEIR INTERESTS
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HYPER CONNECTED TRAVELERS
DON’T FOLLOWTHE “PATH TO PURCHASE” IN A LINEAR FASHION.THEY CARVE THEIR OWN JOURNEYAND IT CAN BE CONFUSING!
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DEEPLY UNDERSTAND THE HYPER-CONNECTED TRAVELER
WHAT DO WE NEED TO DO?
1Millennials and Millennially-Aligned
Travelers over-index on
experience, novelty, nature,
culture and history
!
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IMPACTFUL TRENDS FOR THE FUTURE OF MARKETING TOURISM (IE. NEXT YEAR)
Millennial Travellers
and Aligned will
dominate by 2030
Local and authentic will rule
Massive Growth will need to be managed strategically
Marketing much more precise and less wasteful
Less big agency and more micro campaigns
Bring disruptors into tourism fold
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IMPACTFUL TRENDS FOR THE FUTURE OF MARKETING TOURISM (IE. NEXT YEAR)
TARGET THE RIGHT CUSTOMERS
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Free Spirits
Cultural Explorers
Authentic Experiencers
No-hassle Travellers
Gentle Explorers
Rejuvenators
Market Share, Revenue Potential
Age, Gender, Income
Travel Motivators – Trip Type, Accommodation, Food, Activities
Preferred Media Sources For Inspiration, Planning, Advocacy
What Sorts Of Canadian Tourism Experiences Appeal To Them
Marketing Considerations – Messaging, Voice, Personality
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UNDERSTAND HOW THE UNIQUE SELLING POINTS (USP’S) OF YOUR “REGIONAL” BRAND
THAT MATTER MOST
WHAT DO WE NEED TO DO?
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Boulders Rocks Pebbles
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DETERMINE HOW WE BRING THOSE USP’S TOLIFE ACROSS INTEGRATED CHANNELS TO CONNECT
WITH TRAVELERS AT:
WHAT DO WE NEED TO DO?
MOMENT THEY DISCOVER YOUR DESTINATIONE/EXPERIENCE(FIRST
MOMENT OF TRUTH)
WHEN THEY PURCHASEYOUR DESTINATION/EXPERIENCE(SECOND MOMENT OF TRUTH)
WHEN THEY EXPERIENCEYOUR DESTINATION/EXPERIENCE
(THIRD MOMENT OF TRUTH)
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THEN…DELIVER THE JAB, JAB RIGHT HOOK WITH CONTENT
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It’s About Content
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Follow The Global
Traveler
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A SHIFT TO CONTENT MARKETING
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CONTENT IS A SUSTAINED, ALWAYS ON STRATEGY THAT SUPPORTS AND EXPANDS THE EFFECTIVENESS OF PAID MEDIA.
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SOURCE OF CONTENT
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Curation
Assembly
Creation
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PUBLISHING PLAN
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WHY NOW?
NOTHING WILL EVER MOVE THIS SLOWLY AGAIN
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TOURISM WINNERS AND LOSERS
Tourism Winners Yesterday
BLUEPRINT FOR THE FUTURE OF TOURSIM
big icons
big marketing budgets
big agency
uninformed customers
One way communication
Domestic customers; short haul; low hanging fruit
Tourism Winners Tomorrow
Embracing change, risks and technology for competitive advantage
Understanding customers, product, USP’s, brand and how it all ties together
Seeking potential in international markets
Communicating role of tourism in economic development
Collaboration…rowing in same direction—partners and customers AND disrupters
Less competition
“Destination differentiated by “experiences”
Thank you
Greg KlassenTwenty31 Consulting
@klassenGreg