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Competing for
Tomorrow
Jyväskylä
June 15th 2011
Rohit Talwar
CEO – Fast Future
www.fastfuture.com
www.convention-2020.com
Hotels 2020 – Objectives
• Identify key drivers of change
for the globally branded hotel
sector over the next decade
• Examine the implications for:
Hotel strategy
Brand portfolio
Business models
Customer targeting
Innovation
Transformational Change?
It’s Only Just Begun
What I Want – When I Want
Holographic Laptops
Personalization
Demographic Destinies 2 billion more people in 40 years –
Demographics is Driving Economics
1998
448 691
729
5231
4157
739
1030
344
585
Source : United Nations 2010 2050
Tomorrow’s Traveler - Demographics
• Over 60‟s in developed
economies to rise from 22-
33% from 2009 and 2050.
• In developing world, from 9 to
20%
• Global retirement market
2010-2020 could grow from
$28 - $46 Tn
• Global middle class could rise
from 430M to 1.2 Bn (2000 –
2030)
Life Redefined –
Lifespans are Increasing
Under 50’s have 90%
chance of living to 100.
Aubrey de Grey suggests
we could live to 500 or 1000
What are the health,
consumption and resource
implications?
What kind of opportunities
will be created?
• By 2020, Asian
consumers could account
for over 40% of global
middle class consumption
• By 2014 female wealth
could reach $18 trillion
• Females could control
70% of global consumer
spending
Tomorrow’s Traveler –
Spending Patterns
The Asian middle classes will make up the largest
share of international travel
21
54
25
1
0
10
20
30
40
50
60
Strongly agree Agree Disagree Strongly disagree600 Respondents
Traveller Behaviours
Too Busy To Care
Complex Lives, Pressurised
Finances
Craving Simplicity
Wealthy and Hard to Please
Sustainability
Environmental considerations will play an increasing role in
the choice of business and leisure hotels. 606 Respondents
Crowne Plaza Copenhagen Towers – Solar Power, Geothermal Well, Eco-rooms
• Number of mobile subscribers
could rise from 4Bn to 5Bn
2009-2015
• Mobile data traffic to rise 300-
fold by 2015 (Nokia).
• By 2020 the range and nature
of interaction technologies /
customer „touch points‟ will
expand dramatically.
• „Go nowhere‟ gamers
• Personal genetic profiles
Tomorrow’s Traveler – Technology
Customers will increasingly use social media and
collective intelligence travel services (like Dopplr) to
define the desired ‘product’ for a temporary self-
forming group.
601 Respondents
45 45
9
00
5
10
15
20
25
30
35
40
45
50
Strongly agree Agree Disagree Strongly disagree
Hotels will need to develop strong social media 'listening skills' to
understand how customer needs and perceptions of brands and service
quality are truly evolving and to develop service propositions, marketing
messages, and pricing solutions that reflect the needs of an increasingly
diverse customer base.
54
42
4
00
10
20
30
40
50
60
Strongly agree Agree Disagree Strongly disagree597 Respondents
Hotel Categorization may Need to Evolve to Focus
More on Service Than Facilities
Traveler motivations will become increasingly fragmented and diverse
and harder to segment into clearly definable customer groupings
604 Respondents
Hotel guests will expect their stay to be personalized
around a set of choices they make at the time of
booking or prior to arrival
42
50
7
1
0
10
20
30
40
50
60
Strongly agree Agree Disagree Strongly disagree602 Respondents
The Emergence of Personalized Service Spectrums
86% agreed that by 2020,
personalization will have been
embraced wholeheartedly by
the sector and that „customers
will have the ability to choose
the size of room, type of bed,
amenities, audio-visual
facilities, business equipment,
etc. on booking and pay
accordingly‟.
Pricing In a highly automated world, there will be a range of customers at
every price point who are willing to pay for personal service
610 Respondents
Staff and Service Highly trained staff backed up by technology will be key to delivering
personalized service and experiences
605 Respondents
Finland has Strong Tourism Goals
.. and Success in Key Markets
The Country is an Innovation Leader
(EU Innovation Index 2010)
Source: PRO INNO EUROPE Innovation Performance 2010
…But not in Travel and Tourism
Competitiveness
th
… or Price Competitiveness
th
…or Affinity for Travel and Tourism
GDP
123rd
Jobs
112th
Invest
151st
Exports
126th
Innovation in Finnish Tourism
Source: LAPPALAINEN, PAIVI, Tourism and Experience Management Centre of Expertise Building the Future of Tourism Through Innovation and Networking
Travel Agency Innovation
Innovative Training Practice
Promoting Tourism Through Partnerships
So where are the Opportunities?
Outstanding Natural Heritage
Community Engagement - Aruba
City Regeneration - Malmo
City Branding - Berlin
Sydney ‘Vivid’
Joined up Thinking
Adelaide Convention Centre
Creating Experiences http://www.borev.net/imf.jpg
Image source: Adelaide Convention Centre
Using Social Media
Tourism Co-creation
Business Events
Museum Partnerships
Festivals / Cultural Events
Art Exhibits
Gourmet Experiences
Distinctive Experiences
Agri-Tourism –
25% Income boost to Farmers
Create Tolerance of Uncertainty
http://2.bp.blogspot.com/_MuWNJtJ8XS4/RwrvXTT4e4I/AAAAAAAABJc/pMnDJx06ZQA/s400/DuaneMichels.Uncertainty88.jpg
Partner and Be Magnetic
• All to play for
• Think Partnership
• Curiosity and Magnetism
are key
• Experiment
Conclusion
Designing Your Future
Background notes
64
Economic Outlook
2011-20 2021-30 2011-30
Growth and productivity (% change; annual av)
Growth of real GDP
per head 1.9 2.5 2.2
Growth of real GDP 2.2 2.6 2.4
Labour productivity
growth 2.2 2.8 2.5
Source: ECONOMIST INTELLIGENCE UNIT, September 2010 http://country.eiu.com, retrieved June 2011
Travel & Tourism
Competitiveness Index 2011 Country 2011 Score 2011 Rank 2009 Rank
Switzerland 5.68 1 1
Germany 5.50 2 3
France 5.41 3 4
Austria 5.41 4 2
Sweden 5.34 5 7
USA 5.30 6 8
Netherlands 5.13 14 13
Denmark 5.05 16 14
Finland 5.02 17 15
Norway 4.98 20 19
Estonia 4.88 25 27
Russia 4.23 59 59
Source: WORLD ECONOMIC FORUM The Travel & Tourism Competitiveness Report 2011 http://www3.weforum.org/docs/WEF_TravelTourismCompetitiveness_Report_2011.pdf retrieved June 2011
How Finland Scores on the Index
Rank Score
T&T Regulatory Framework 5 5.7
Policy Rules and Regulations 5 5.4
Environmental Sustainability 5 5.7
Safety and Security 1 6.5
Health & Hygiene 12 6.6
Prioritization of T&T 65 4.5
Source: WORLD ECONOMIC FORUM The Travel & Tourism Competitiveness Report 2011 http://www3.weforum.org/docs/WEF_TravelTourismCompetitiveness_Report_2011.pdf retrieved June 2011
How Finland Scores on the Index
Rank Score
T&T Business Env. &
Infrastructure
30 4.8
Air Transport Infrastructure 16 4.9
Ground Transport Infrastructure 21 5.2
Tourism Infrastructure 42 4.8
ICT Infrastructure 17 5.2
Price Competitiveness 128 3.6
Source: WORLD ECONOMIC FORUM The Travel & Tourism Competitiveness Report 2011 http://www3.weforum.org/docs/WEF_TravelTourismCompetitiveness_Report_2011.pdf retrieved June 2011
How Finland Scores on the Index
Rank Score
T&T Human, Cultural and Natural
Resources
25 4.6
Human Capital 7 5.7
Affinity for Travel and Tourism 83 4.5
Natural Resources 66 3.3
Cultural Resources 26 4.7
Source: WORLD ECONOMIC FORUM The Travel & Tourism Competitiveness Report 2011 http://www3.weforum.org/docs/WEF_TravelTourismCompetitiveness_Report_2011.pdf retrieved June 2011
Total Contribution of T&T to GDP
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
Tourism and GDP
• GDP: Direct Contribution
The direct contribution of Travel &Tourism to GDP is expected to be
EUR4.4bn (2.4% of total GDP) in 2011, rising by 4.2% pa to EUR6.6bn
(2.7%) in 2021 (in constant 2011 prices).
• GDP: Total Contribution
The total contribution of Travel &Tourism to GDP, including its wider
economic impacts, is forecast to rise by 3.4% pa from EUR12.2bn (6.6% of
GDP) in 2011 to EUR17.2bn (7.0%) by 2021.
Source: WORLD TRAVEL & TOURISM COUNCIL Key Facts at a Glance Finland 2011 http://wttc.org/eng/Tourism_Research/Economic_Research/Country_Reports/Finland/
Tourism and Employment
Tourism and Employment
• Employment: Direct Contribution
Travel & Tourism is expected to support directly 58,000 jobs (2.4% of total
employment) in 2011, rising by 1.7% pa to 69,000 jobs (2.8%) by 2021.
• Employment: Total Contribution
The total contribution of Travel & Tourism to employment, including jobs
indirectly supported by the industry, is forecast to rise by 0.9% pa from
168,000 jobs (6.9% of total employment) in 2011 to 185,000 jobs (7.5%) by
2021.
Source: WORLD TRAVEL & TOURISM COUNCIL Key Facts at a Glance Finland 2011 http://wttc.org/eng/Tourism_Research/Economic_Research/Country_Reports/Finland/
Exports and Investment
Exports and Investment
• Visitor Exports
Travel & Tourism visitor exports are expected to generate EUR3.3bn (4.3%
of total exports) in 2011, growing by 6.2% pa (in nominal terms) to
EUR5.1bn (3.7%) in 2021.
• Investment
Travel & Tourism investment is estimated at EUR0.9bn or 2.7% of total
investment in 2011. It should rise by 6.3% pa to reach EUR1.6bn (or 3.1%)
of total investment in 2021.
Source: WORLD TRAVEL & TOURISM COUNCIL Key Facts at a Glance Finland 2011 http://wttc.org/eng/Tourism_Research/Economic_Research/Country_Reports/Finland/
Leisure vs. Business Travel
Leisure vs. Business Travel
• Leisure travel spending (inbound and domestic) is
• expected to generate 67.7% of direct Travel & Tourism GDP in 2011
compared with 32.3% for business travel spending.
• Leisure travel spending is expected to total EUR6.8bn in 2011, rising to
EUR10.4bn in 2021.
• Business travel spending is expected to total EUR3.3bn in 2011, rising to
EUR5.0bn in 2021.
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
GDP Contribution Regional Comparison
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
GDP Contribution Regional Comparison
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
T&T Employment Regional
Comparison
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
T&T Employment Regional
Comparison
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
T&T Investment Regional
Comparison
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
Visitor Exports
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
GDP Contribution to 2021
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
GDP Contribution to 2021
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
Employment Growth to 2021
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
Employment Growth to 2021
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
Investment to 2021
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
Visitor Export to 2021
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
Overview to 2021
Source: WORLD TRAVEL & TOURISM COUNCIL Travel and Tourism Economic Impact Finland 2011 http://www.wttc.org/bin/pdf/original_pdf_file/finland.pdf
EU Innovation Index 2010
Source: PRO INNO EUROPE Innovation Performance 2010 http://www.proinno-europe.eu/inno-metrics/page/31-innovation-performance retrieved April 2011
Embraced by Russia
Source: FINNISH TOURIST BOARD Border Interview Survey: Foreign Visitors in Finland in 2009 http://www.mek.fi/W5/meken/index.nsf/(Pages)/Border_Interview_Survey?opendocument&np=F-10 retrieved June 2011
Seasonality in Tourism
Seasonality in Tourism
• Among the Member States having a distinct peak in July, the highest
monthly shares were found in the Nordic countries of Denmark (24% of all
nights spent in July) and Sweden (22%), followed by Estonia (16%) and
Finland (15%).
Source: EUROPEAN TRADE UNION LIAISON COMITTE ON TOURISM Seasonality in Tourism in the EU27 in 2009, November 2010 http://www.etlc-network.eu/europaeische_kommission/eurostat/seasonality_in_tourism retrieved June 2011
Background
• Tourism is an industry with an intense employment effect. The tourism
industry is labour intensive and dominated by SMEs, providing employment
to a large number of young people.
• Between 1995 and 2008, the number of people employed in the hotel and
restaurant business increased by 37% while other industries grew at a rate
of approximately 26%. In 2008, the hotel and restaurant business alone
provided employment to 82,000 wage-earners and entrepreneurs.
Source: MINISTRY OF EMPLOYMENT AND THE ECONOMY. Innovation Department. Government Resolution on Finnish Tourism Policy . March 2011 http://www.tem.fi/files/29582/Government_Resolution_on_Finnish_Tourism_Policy.pdf retrieved June 2011
Objectives for 2020
Objectives for 2020 • Rural tourism is expected to grow in respect of domestic travellers
approximately 3 % annually.
• The estimate is based on the increase in the amount of senior citizens,
because this population is healthier than previous generations with a higher
life expectancy and stronger consuming power also with regard to tourism
services.
• On the other hand, strong growth is also sought in the international market,
and the expected yearly growth is an average 5 %. Foreign travellers are
also expected to spend more than earlier when they travel in Finland.
• The occupancy rate of accommodation facilities is expected to rise to 50%.
• The amount of employed tourism workers is expected to rise to 15%.
• 40% of sales proceeds (customers) comes from abroad.
Source: RURAL POLICY COMMITTEE , Rural Tourism in Finland http://www.maaseutupolitiikka.fi/files/1362/Rural_tourism_future.pdf retrieved June 2011
State of SME’s in Tourism Sector
• SMEs - employing up to 249 people according to the EU classification
(European Commission 2003) - account for more than 99% of businesses in
total in the country, with micro businesses (fewer than 10 people) making up
93%.
• The value added of SMEs is almost at the same level as that for large
enterprises (Small Business Institute 2000).
• In other words SMEs are of key importance and this is also true for tourism
with an estimated 90% of tourism businesses being classified as micro
enterprises (Peltonen, Komppula, and Ryhänen 2004).
Source: SEPPÄLÄ-ESSER, R , The Dependence of Tourism SMEs on NTOs: The Case of Finland, 2009 http://epubs.surrey.ac.uk/2289/2/AIREY_EMBARGOED_posted.pdf
State of SME’s in Tourism Sector
• The responding enterprises in a study sample were only moderately
international. In total, 88 % of the respondents had fewer than half of their
guests from abroad. Some 52 % of them had less than a 10 % share of
foreign guests and 4 % of the respondents had only domestic guests.
• Enterprises in the transport and hotel sectors were the most internationally
oriented. The visitor attraction sector proved to be the most domestically
oriented.
• Of the respondents some 25 % had a formal marketing plan while about 50
% planned their marketing in an informal manner. One quarter of the
responding companies did not plan marketing at all. Those who planned
their marketing most often did so one to two years in advance (65.5%).
Some 15.5 % planned their marketing short term (up to one year); another
19 % planned long term (three to five years in advance).
Source: SEPPÄLÄ-ESSER, R , The Dependence of Tourism SMEs on NTOs: The Case of Finland, 2009 http://epubs.surrey.ac.uk/2289/2/AIREY_EMBARGOED_posted.pdf
State of SME’s in Tourism Sector
• Nearly two thirds of all enterprises (63 %) had plans to grow in the future.
The great majority of the respondents cooperated with other organisations
(93.4%). Only a small proportion of them did not (6.6 %).
Source: SEPPÄLÄ-ESSER, R , The Dependence of Tourism SMEs on NTOs: The Case of Finland, 2009 http://epubs.surrey.ac.uk/2289/2/AIREY_EMBARGOED_posted.pdf
SME Resource Dependence on the Finnish Tourist Board
Resource Dependence on the
FTB • The mean value of the overall resource dependence of the respondents
was 2.43 on a scale from one to five.
• The overall resource dependence of Finnish tourism SMEs on the FTB can
be considered to be moderate (between 2.40 and 3.60). Resource
dependence can also be defined in relative terms.
• A total of 100 % would stand for a complete dependence, while 0 % would
signify a complete independence. On this basis the dependence of Finnish
SMEs was calculated at 36 %.
• Some 18.5 % of enterprises considered the FTB to be at least somewhat
important while more than 50% considered the FTB unimportant for their
business.
• This may suggest, that respondents are not quite aware of all of their
dependencies. Interestingly when asked to rate the importance of the FTB
for Finland as a whole, the largest number, about 69% regarded the FTB as
being important for Finland.
Source: SEPPÄLÄ-ESSER, R , The Dependence of Tourism SMEs on NTOs: The Case of Finland, 2009 http://epubs.surrey.ac.uk/2289/2/AIREY_EMBARGOED_posted.pdf
Resource Dependence on the FTB
• Turning to the elements, on the importance dimension the most important
resource by far is the NTO‟s marketing knowledge (4.14). This is followed
by other resources associated with markets and marketing, consumer
information and product development support, all scoring above 3.5.
• The lowest 2.44 is for contacts with the foreign media, presumably a
reflexion of the relatively low involvement in foreign tourism by many of the
respondents. The level of magnitude of resource exchange at 1.99, on a
scale from 1 to 5, is substantially lower than the scores for importance
(3.29), alternatives (3.87) and access (3.70).
Source: SEPPÄLÄ-ESSER, R , The Dependence of Tourism SMEs on NTOs: The Case of Finland, 2009 http://epubs.surrey.ac.uk/2289/2/AIREY_EMBARGOED_posted.pdf
Resource Dependence on the FTB
• As the number of employees increases, the level of resource dependence
increases as well. Whereas enterprises with only one employee show an
average resource dependence level of 2.31, a level of 2.88 is computed for
medium-sized enterprises.
• The number of international guests had an impact on the level of SMEs‟
dependence on the FTB resources as well. Resource dependence levels
were lowest among enterprises with no foreign guests whereas enterprises
with shares of 51% to 100% foreign guests showed the highest levels of
dependence.
Source: SEPPÄLÄ-ESSER, R , The Dependence of Tourism SMEs on NTOs: The Case of Finland, 2009 http://epubs.surrey.ac.uk/2289/2/AIREY_EMBARGOED_posted.pdf
Resource Dependence on the FTB
• Planning of operations was expected to decrease SMEs‟ dependence on
external resources.
• The results of this research suggest that quite the contrary was the case;
indeed, the more sophisticated the planning procedure of an SME, the
higher was its dependence on the provision of FTB resources. This might
indicate that a strategic approach to planning possibly makes SMEs more
aware of the resources needed as well as where to obtain them from. They
might also be more aware of the costs of alternative resources. Given that
they come from a publicly funded body the resources provided by an NTO
might prove to be more cost effective than other alternatives.
Source: SEPPÄLÄ-ESSER, R , The Dependence of Tourism SMEs on NTOs: The Case of Finland, 2009 http://epubs.surrey.ac.uk/2289/2/AIREY_EMBARGOED_posted.pdf
The Finnish Centres of Expertise
Programme (CoE) • is built to accelerate growth of innovative SME's by combining Finnish
technology centres with companies and universities, and by improving their
innovation capacity.
• lays the ground for diverse innovation activities in which high‐level research
is combined with technological, design and business competence.
• is a tool for regional innovation, which contains ready‐made operating
models and networks for the national and international markets.
• offers networks and services for companies, universities, universities of
applied sciences and research institutions.
• has introduced cross science innovations and even made it possible to
develop commercial products from those innovations.
• the CoE comprises 13 national competence clusters.
Source: LAPPALAINEN, PAIVI, Tourism and Experience Management Centre of Expertise Building the Future of Tourism Through Innovation and Networking 2010 http://www.nordicopen.org/wp-content/uploads/Paivi%20Lappalainen.pdf retrieved June 2011
Source: LAPPALAINEN, PAIVI, Tourism and Experience Management Centre of Expertise Building the Future of Tourism Through Innovation and Networking 2010 http://www.nordicopen.org/wp-content/uploads/Paivi%20Lappalainen.pdf retrieved June 2011
Source: LAPPALAINEN, PAIVI, Tourism and Experience Management Centre of Expertise Building the Future of Tourism Through Innovation and Networking 2010 http://www.nordicopen.org/wp-content/uploads/Paivi%20Lappalainen.pdf retrieved June 2011
Innovation in Finnish Tourism
• Tourism is an important sector in the Finnish economy and an important
employer in Uusimaa region. The „Travel Park Incubator Network‟ has been
established to support the creation of new companies in the tourism sector.
• The network, which is coordinated by the Haaga Institute Foundation,
includes incubators in Uusimaa Region in Finland (i.e. Helsinki, Espoo,
Vantaa). It supports both national and local tourism strategies and
cooperates with key actors in the area.
• A close cooperation has been established between Travel Park and major
Finnish travel/tourism-related companies. The incubator services to
entrepreneurs include premises, training, facilitation of contacts with a
network of enterprises in the tourism sector, cooperation with higher
education institutions, business consultancy, business mentoring,
newsletters, joint participation in events, and public relations work. Source: Europa, 2008, retrieved June 2011 http://ec.europa.eu/enterprise/ire/Innovating-regions/www.innovating-
regions.org/schemes/scheme2c3c.html?publication_id=3624&display=byTopic
Innovation in Finnish Tourism
• The participating companies can also take advantage of business
counselling in areas such as business plan development, testing of new
products and product development, and financial and contractual law.
• Between 1997 and 2007 the network has contributed to the start of over 100
companies inUusimaa Region and total over 200 companies nationwide.
Source: Europa, 2008, retrieved June 2011 http://ec.europa.eu/enterprise/ire/Innovating-regions/www.innovating-regions.org/schemes/scheme2c3c.html?publication_id=3624&display=byTopic
Travel Agency Innovation
• In December 2010 it was announced that „…Amadeus and Finnair plan to
enable travel agents in Finland beginning in the first quarter of 2011 to pay
for the airline‟s bag fees through the GDS and to settle the transaction using
EMDs (a new IATA standard, the Electronic Miscellaneous Document).‟
• If Amadeus and Finnair make it first to the finish line first among airlines and
GDSs, then this would be the inaugural instance of an airline, GDS and
travel agencies using the new industry standard to settle optional services
through GDS bookings.
• In 2010, none of the estimated $22.6 billion in airline ancillary services was
settled in a GDS through an industry standard.
• Using EMDs, ancillary services in the GDSs for travel agents may begin
with bag fees next year in Finland, but likely would expand to the gamut of
optional services over time. This first implementation of EMDs, enabling
electronic settlement and accounting, could signal the beginning of a multi-
year process to bring more ancillary services to travel agents in their GDSs.
Source: Tnooz, December 2010 http://www.tnooz.com/tag/finnair/
Innovative Training Practice
• Kaleva Travel‟s staff receives continuous training and the company takes
continuous steps to ensure the sufficiency of its service resources.
• These tasks are seen by Kaleva Travel School, which has specialized in the
comprehensive training of the business travel sector.
• The school is the only one of its kind in Finland. Its primary fields of activity
are the training of new, professional business travel consultants for its
parent company Kaleva Travel, keeping the present personnel‟s skills up-to-
date and organizing training days around travel themes for our corporate
clients.
• Kaleva was bought by Carlson Wagonlit Travel in 2011.
Source: Kaleva Travel, retrieved June 2011 http://www.kalevatravel.fi/yritys/fi_FI/kaleva_travel_english/
Promoting Tourism Through
Partnerships • Developing Cultural Tourism as a joint network in Capitals of Culture 2011 is
a project built by The Centre of Expertise Tourism (OSKE) of Turku Touring
together with the Turku 2011- and Tallinn 2011- foundations.
• The aim of the project is to unite the operators of culture and tourism in
Turku and Tallinn and create new and more customer friendly services and
product combinations.
• The main partner of the project is Turku Touring/city of Turku, additional
partners are Turku 2011 – foundation, Tallinn 2011 – foundation and the
culture organisations of the city of Tallinn. The project got started at the
beginning of 2010 and will end 30.8.2012 and it is funded by EU.
Source: Turku Touring, July 2010 http://www.turku.fi/Public/default.aspx?contentid=191002&nodeid=8202
Promoting Tourism Through Partnerships
• The targets of the project:
• To join the operators of culture and tourism in Turku and Tallinn in order to
create more customer orientated services and product combinations.
• To build up a permanent network between tourism and culture operators in
the Turku and Tallinn regions both inside the cities and crossing the borders.
• To increase the accessibility and the fame of the joint product combinations.
• To increase the know-how of the operators and to build up a permanent
route of learning and know-how which can be used even after the project
• To create an identical and good quality service culture in Turku and Tallinn
regions by increasing the knowledge of the service providers in accessibility
and in customer-orientated approach.
Source: Turku Touring, July 2010 http://www.turku.fi/Public/default.aspx?contentid=191002&nodeid=8202
Streamlining Promotion
• The activities of Finland Convention Bureau (FCB), the national
organisation that promotes Finland as a destination for international
congresses and corporate events, will transfer to the Finnish Tourist Board
as of 1 January 2011. The decision was taken at a statutory meeting of FCB
in Helsinki.
• The aim is to clarify FCB‟s activities in accordance with the wishes of its
members. The new arrangement also complies with the model adopted by
most European countries, whose national convention bureaus are backed
up by a national organisation similar to the Finnish Tourist Board.
Source: ICCA World, October 2010 http://www.iccaworld.com/newsarchives/archivedetails.cfm?id=2266
Visit Finland’s Role
http://www.mek.fi/w5/meken/index.nsf/(images)/FTB_strategy_2010_2015/$File/FTB_strategy_2010_2015.pdf
http://www.mek.fi/w5/meken/index.nsf/(images)/FTB_strategy_2010_2015/$File/FTB_strategy_2010_2015.pdf
Funding
• The National Tourism Administration is part of the Ministry of Employment
and the Economy and has no separate budget. One person is in charge of
tourism-related affairs at the Directorate of Innovation at the ministry.
Tourism development is funded mainly by regional funding.
• Public funding of the Finnish Tourist Board in 2008 was EUR 16 million. For
2009, this was reduced to EUR 14.8 million and will be further reduced in
2010 to an estimated EUR 9.5 million. The amount of private money in
Finnish Tourist Board activities is very difficult to assess, however, since the
content and operating methods of the Finnish Tourist Board activities have
changed radically.
• Most of the funding for the tourism sector comes from regional authorities
(T&E Centres and Regional Councils), which also allocate EU co-funding for
tourism development projects (e.g. investments, development and
training).
Source: Hotel Mule, January 2011 http://www.hotelmule.com/management/html/53/n-3853-2.html
Online Marketing Campaign
Online Marketing Campaign
• Visit Finland‟s online marketing campaign reached wide audiences in the
UK, Germany and France. From October to November 2010, a competition
video exhibiting Finland‟s wintry offerings was available on the websites of
The Guardian, Der Spiegel and Le Figaro, respectively.
• The campaign brought Finland great visibility in the targeted countries. More
than half a million people watched the video and saw that they don‟t call
Finland “Winter Wonderland” for nothing, says Mervi Holmén, Director of
Nation Brand and Marketing at Visit Finland.
• Finland‟s tourism offering is divided into the following three themes:
• Silence, please: As a counterpart to the hectic, ever-accelerating rhythm of
daily life, Finland offers peacefulness and quietness, and space to breathe,
even in the heart of the city. Visitors can take things easy, stay at a cottage,
enjoy a sauna, and explore an untouched natural environment.
Source: Visit Finland, March 2011 http://www.mek.fi/w5/mekswe/index.nsf/(Pages)/Vinnaren_Alice_kom_till_Finland?opendocument&np=C
Online Marketing Campaign
• Wild & free: Every traveller would like to experience at least one
memorable adventure during their holiday. The Finnish nature offers
opportunities for spectacular nature activities such as snowmobile and dog
sled safaris, island hopping by boat, canoeing in the archipelago, or even a
snowball fight in the city.
• Cultural beat: The uniqueness of Finnish culture is conveyed by the global
phenomena it evokes such as Finnish design, Santa Claus, heavy metal
and delicious natural produce.
Source: Visit Finland, March 2011 http://www.mek.fi/w5/mekswe/index.nsf/(Pages)/Vinnaren_Alice_kom_till_Finland?opendocument&np=C
Pori Jazz Festival
• With a long history that stretches back to 1966, the festival has a well-
earned reputation as one of the biggest and best jazz festivals in Europe.
• Typically attracting over 100,000 visitors during its nine-day duration,
visitors to this event can expect an audio feast of jazz music that embraces
the genre in all its weird and wonderful forms. Past performers have ranged
from such classics as Chuck Berry and James Brown to more contemporary
acts such as Craig David and Alicia Keys.
• The Pori Jazz Festival was 2010‟s biggest event in Finland, and attracted a
record paying audience - 156,000 listeners. This was as much as 30 per
cent more than the previous year.
Source: World Travel Guide, retrieved June 2011 http://www.worldtravelguide.net/finland/pori-jazz-festival
Source (2): Helsingin Sanomat, May 2011 http://www.hs.fi/english/article/Summer+festivals+draw+record+audiences+in+Finland/1135221450304
Other Festivals
• Other summer events attracting large audiences were the Kotka Maritime
Festival that attracted over 150,000 people, even though the number of
actual tickets sold was only 15,000, and the annual Tango Festival in
Seinäjoki, in Ostrobothnia, which drew a crowd of 114,000 - slightly fewer
than in the last few years.
• The Kaustinen Folk Music Festival attracted a total of 85,000 folk and world
music lovers, while the number of tickets sold was only 34,000. However,
the number of visitors to Kaustinen Folk Music Festival was 16 per cent
down on the previous summer.
• Many smaller festivals succeeded better than expected.
Provisional estimates for the Helsinki Festival audience is that it exceeded
the previous years 255,000.
Source: Helsingin Sanomat, May 2011 http://www.hs.fi/english/article/Summer+festivals+draw+record+audiences+in+Finland/1135221450304
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