1-introduction To E-marketing In Tourism

Introduction to e-Marketing in Tourism

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Topics 1. 2. 3. 4.

e-Marketing medias Trends in online travel market size e-Marketing Tools Case Studies

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Market Channels in Tourism • Printed media – Brochures – Advertisements in magazines and newspapers

• Travel Market Shows • Billboards • Electronic Medias

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e-Marketing Medias • • • • •

Digital TV Electronic billboards Internet Mobile devices PCD (personal communication device)

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e-Marketing in the Internet and in Mobile devices • Interactive communication with the customer • Information available 24 hours a day • Diverse information (text, pictures, video, panorama, voice etc.) • Profiling • Dynamic Packaging • Booking request • Online travel sales Introduction to e-Marketing

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e-Marketing in the Internet and in Mobile devices • Internet services are mainly used for planning the trip – Services by geographic area or by theme (water, fishing, nature etc.)

• Mobile services are useful during the trip – Location based services for guiding the tourist • Nearest restaurant • Nearest accommodation • Guiding to the service

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Online travel sales are increasing • Online travel sales increased as much as 34% from 2004 to 2005 in the European market • Internet sales were 10.3% of the travel market in 2005 • A future increase of about 25% during 2006 • Internet sales expected to be 12.6% of the travel market in 2006 Source: Carl H. Marcussen, Center for Regional and Tourism Research, www.crf.dk/trends

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Online Tourism Coverage • North America online consumer travel sales (eMarketer, 2007) – USA - $94 billion (2007) • Grow at 17% annual - $146 billion (2010) • In 2007, 50% of US Internet Households book online travel = 41.3 million US households

– Canada: 2004 – 2006 more than doubled (6.5 billion C$) - Double again in 2009 (PhoCusWright, 2007)

• UK – largest and most rapidly growing categories in eCommerce; – Travel search engine accelerate this process (Millman & Martin, 2006) – 80% consumers decide holiday destination by using the Internet (Visit Britain, 2007) Introduction to e-Marketing

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Policy Context in Tourism Industry • ‘Open Skies’ Aviation Agreement – EU & US (Washington, 30/04/2007)

• European programmes – Air Canada – St. Johns to Heathrow; Holiday House: to include new European member of states; Canada – Ireland ‘open skies’ agreement – Competitive markets within Europe – Cost + access Introduction to e-Marketing

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Trends in overall online travel market size - Europe 1998 - 2006 Europe Market Year

(billion E.)

Internet sales

Internet sales

Interne t sales

(billion E)

in % of market

increas e% N.A.

1998

218

0,2

0.1%

1999

231

0,8

0.3%

256 %

2000

247

2,5

1.0%

213 %

2001

244

4,9

2.0%

97 %

2002

242

8,6

3.6%

75 %

2003

237

13,2

5.6%

53 %

2004

240

18,9

7.9%

43 %

2005

244

25,2

10.3%

34 %

2006

249

31,5

12.6%

25 %

Source: Carl H. Marcussen, Centre for Regional and Introduction to e-Marketing Tourism Research

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Internet sales in % of market 14,0 %

12,6 %

12,0 %

10,3 %

10,0 %

7,9 %

8,0 %

5,6 %

6,0 %

3,6 %

4,0 % 2,0 % 0,0 %

0,1 % 0,3 %

1,0 %

2,0 %

1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Carl H. Marcussen, Center for Regional and Tourism Research, www.crt.dk/trends, 26 April 2006 Introduction to e-Marketing

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How to select the right tools for e-Marketing? • A large number of Web Pages available in the Internet • How can the customer find your service? • Updating information to many different Web Pages is expensive and time consuming • Expensive to have a market place in many Web Pages Introduction to e-Marketing

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New Tools for e-Marketing • Store the marketing information to one database • Show the information in many Web Pages • No need to update the information on many Web Pages • Save time and money

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”With one Shot to many Goals” www.page2.com www.page1.com www.page1.com

www.page4.com www.page3.com

XML

XML

XML

XML

XML Database Service

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Types of Internet advertising/marketing • Banner ads: most popular, different sizes and styles • Pop-up ads: popular, another type is popbehind • E-mail marketing: powerful, economical, legal implications, spam • Affiliate marketing: commission-based, benefit of the selling site’s brand in exchange for the referral Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok

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Search Engine Positioning

• Potential customers find web sites in many different ways • Some site visitors will be referred by a friend, others by affiliates, some will see the site’s URL in a print advertisement or on television • Many site visitors will be directed to the site by a search engine Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok

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Search Engine Positioning (cont.) • A search engine helps people find things on the web • A search engine has three major parts: 1. A spider, a crawler, or a robot 2. Index or database 3. Search utility • Search engine positioning is also called: • Search engine optimization • Search engine placement Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok

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Search Engine Positioning (cont.)

Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok

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Search Engine Positioning (cont.)

Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok

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Search Engine Positioning (cont.)

Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok

Introduction to e-Marketing

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Search Engine Positioning (cont.)

Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok

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Case: Sportum TravelNet

Tools for e-marketing, e-booking and e-invoicing

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TravelNet • Tools for e-Marketing • Tools for booking, confirmation and invoicing • Communication channel • Versatile reporting system

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Structure of the TravelNet System

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TravelNet • e-Marketplace • COMPANY-application (for service suppliers) • AGENCY-application (for travel agencies) • BOOKING-application Introduction to e-Marketing

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e-Market place

For travel services

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e-Market place • A versatile description of the travel service (text, images, video clips, panorama) • Includes tools for the customer to send a booking request • You can get the descriptions of the travel services on your own and on your selected partners Web Pages (integration) Introduction to e-Marketing

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e-Market place www.page2.com www.page1.com www.page1.com

www.page4.com www.page3.com

XML

XML

XML

XML

XML

TravelNet Service

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COMPANY-application

Service suppliers

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COMPANY-application • Tools for updating information on the eMarket place • Tools for focused marketing • Communication channel to partners • Event calendar

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AGENCY-application Travel Agencies Marketing Organizations

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AGENCY-application • Tools for updating information of your own and partners travel services • Tools for focused marketing • Communication channel to your partners • Event calendar

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Booking System

Travel Agencies Services Suppliers

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BOOKING-application • Booking management • Invoicing system – by e-mail – e-Invoicing

• CRM system

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Booking

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Tools for the e-Marketing and e-Sale Chain • Developing project 16.9.2005 – 31.12.2007 • Tools for the partners in e-Marketing and e-Sale Chain – To offer the services to the partners – A limited right to update the services – To add information to the packages – To show the modified packages in company Web Pages Introduction to e-Marketing

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Tools for the e-Marketing and e-Sale Chain • The tools will inform all partners in the chain about the sale • The tools will count all commissions according to the agreements between partners • Tools for invoicing between the partners • Versatile reporting system

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Tools for e-Marketing chain

Incoming Agency

Tour Operator

TravelNet Service

Travel Agency

www.agency.com

Service Supplier

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Customer

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Tools for the e-Sale Chain

Incoming Agency

Tour Operator

TravelNet Service

Travel Agency

www.agency.com

Service Supplier

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Customer

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”Internet is becoming

a synonym for success in the Travel Industry” Introduction to e-Marketing

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Some Case Studies of Travel & Tourism Organisations using e-brochures as part of an integrated campaign

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Tourism Ireland Case Study Tourism Ireland ‘Market e-Books’ TI is amongst the first destination marketing organisation to make full use of e-brochure technology. Printed materials are still one of the key marketing tools employed by TI. They produce all-island ‘Market Books’ which act as the main fulfilment piece for all enquiries, advertising responses and for distribution at trade and consumer promotions. The TI ‘Market Books’ are published in 10 languages across 13 markets.

25th January 2008

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Tourism Ireland Case Study The objective of this project was to convert ‘Market Books’ into digital e-brochures. Although based on a single template, each is tailored towards the demands of the market in which it was published including carrying different advertisements. The digital format also offers a platform for trade & industry partners by enabling Consumers to link directly through to accommodation and other product providers. TI have numerous other printed brochures based on drivers such as Sport and Leisure Activities and have a commitment to produce all publications into digital format. The next one due is their touring guide called Rainbow Routes and will have the facility to allow the user to produce their own, customised Itineraries instantly.

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Tourism Ireland Case Study

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Tourism Ireland Case Study

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Barbados Tourism Authority Case Study BTA e-brochure Contact centre receives 100k+ brochure requests per year BTA sought a more focused, cost efficient way to bring product to market e-brochure contains key consumer messages on Barbados as a holiday destination The e-brochure also has an indexed accommodation chapter. This prime space was offered to hoteliers and helped the BTA fund their e-strategy – e.g.£50-100 per partner went a long way at 50+ partners!

25th January 2008

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First Choice Case Study First Choice e-brochure e-brochure on CD-rom Distributed to coincide with tv advertising sponsorship Had over 100 pages and 800 deep links for 3-click booking process 220k CDs inserted into Mail on Sunday in Carlton Area 30k sent DM to targeted customers on First Choice database High conversions on those who clicked deep links

25th January 2008

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Tourism SouthEast Case Study TSE runs 3 Integrated ‘Themed’ Campaigns per year Elements include: Printed Guide for distribution via Media Partner PR Campaign microsite e-brochures Competitions – drive entries to website and complemented by advertorial Online Advertising – placing banners and skys on appropriate sites to generate traffic PPC E-Newsletters – regular communication Blogs & UGC (user-generated content)

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Tourism SouthEast Case Study TSE Campaign KPIs No. hits on website, contacts/enquiries made No. of unique visitors to campaign landing page No. of registrants opting in to the database Hyperlink clicks from the e-brochure to partners No. of ‘forward to a friend’s Click-thrus to campaign website from e-marketing including banner ads Visits from the e-brochure to the website

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Tourism SouthEast Case Study How has TSE made their e-guides work harder? Give prominence to the e-guide on homepage Use the cover as motivation to click thru Include e-guides in all newsletters Encourage media partners and third party partners to distribute Promote in on and offline media and PR discussions Use simple, motivational text and bullet points Use Inspiring images Push more click-thrus to partner websites Include added value offers and coupons Encourage newsletter sign-ups and competition link for data capture

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Tourism SouthEast Case Study

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Tourism SouthEast Case Study

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Tourism SouthEast Case Study

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e-Marketing doesn’t have to cost the earth! Be inspirational – great images go a long way! Be clear with your copy Engage your customers – encourage contact and build your database Communicate with your database - word of mouth is the best form of advertising Reuse your elements making sure you can update & amend easily and cheaply Work with partners Barter opportunities

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Case Study of Stratford Upon Avon

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Samples

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Key Findings ------------------------------------

Customer Profile (Jan – Dec 2006) Month/Year (2006)

Unique visitors

No. of visits

Pages (hits)

January

53070

81661

274499

February

51141

77475

271598

March

57312

88293

301453

April

53410

79681

305287

May

40975

63231

293355

June

33974

52128

248138

July

36209

54298

259246

August

37553

56432

287920

September

33385

50825

244303

October

34686

52110

251337

November

31757

48315

241363

December

25547

36805

159353

Total

489037 741254 Introduction to e-Marketing

3110852

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Customer Profile (2006) Half million visitors Each visitor made 1.5 visits Average visit was 303 seconds 4.2 web pages were visited by each unique visitor Patterns of days within month – less over weekends Patterns of hours within a day (Greenwich) • Start at 8 or 9am • by 2pm the figures started to increase as by this time the online visitors from America may have started to log on Introduction to e-Marketing

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Top 7 pages have been viewed • • • • • • •

The website portal’s main page (/index.htm) Accommodation – Where to stay (/wslife.htm) Shakespeare’s history (/soawshst.htm) What’s on – event page (/soarscinframe.htm) Travel – How to get there B&Bs Hotels

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B&Bs’ Online visitors pattern

Various Linkage & URL

Accommodation page

Direction Page

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B&B E-Planning Common Features: All linked to several major successful destination website portals Good visual impact Registered with search engine for online advertising, e.g. Google Ads, Yahoo overture, and MSN

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Online support service provisions • Using search engines • Using special online functions • Adding human factors

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Using Search Engine Name of search engines Percentage (2006)

Percentage (2007)

Google

72.50%

81.80%

Ask Jeeves

9.80%

5%

Yahoo

6.80%

4.80%

MSN

4.10%

3%

Google (Images)

3.20%

2.20%

Others

4.60%

3.20%

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Special online support functions • Late availability function – Overcrowd at certain days

• RoomOK online booking function – Cash flow

• Adding human factors – Web 2.0/Travel 2.0 – User Generated Content (UGC) – 72% - consumer reviews have influenced their travel choice (HotelMarketing, 2007). Introduction to e-Marketing

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Concluding Remarks and Recommendation • Few B&B small businesses are aware of their customers and their online visiting patterns • Few owners are aware of the changing pattern of their online visitors • Design of their websites lack the focus that would emerge from an understanding of their customer behaviour Introduction to e-Marketing

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