1. e-Marketing by DMOs – Techniques and keys to success Dr Roger Carter Managing Director, TEAM UNCTAD Expert Group Meeting on ICT and Tourism for Development 30 November 2005

2. Dr Roger Carter requests that:   where information from this presentation is used by others, it should be fully acknowledged.   the presentation should not be reproduced for distribution to third parties except with his written agreement. Dr Carter would be pleased to discuss any aspect of this presentation with delegates to the UNCTAD meeting. He may be contacted:   by e-mail - RogerCarter@team-tourism.com   by phone at +44 131 557 5867 Regarding this presentation

3. Speaker background Twenty five years working for tourism organisations – national, regional and city – within the UK Since 1997, consultancy in strategy, business planning and operations management for destination management and marketing organisations – strong focus on e-business Co-authored the WTO Business Council publication, “Marketing Tourism Destinations Online”, 1999, + successor publication “E-Business for Tourism, published in October 2001 Recent work for European Travel Commission and for tourism organisations in Cape Town/Western Cape, Seychelles, Estonia, Slovenia, Madeira, Ireland and throughout the UK

4. Agenda The marketing communications life-cycle and its application to leisure and business tourism segments The drivers of change for DMOs Nine keys to future success in e-marketing

5. Agenda The marketing communications life-cycle and its application to leisure and business tourism segments

6. Communications Life Cycle (CLC) - Leisure Dream/ select V This represents a key conceptual framework for the application of new media by DMOs DMOs must optimise their opportunities by responding effectively to the requirements of the visitor at each stage in the cycle Media for communication between DMO and consumers will vary at each stage in the life cycle PlanBookVisit Dream again …. or ‘the customer journey’ Let us consider the leisure consumer perspective first

7. The CLC and e-Marketing for Leisure The Customer Journey Communications Life Cycle e-Marketing Activity Dream and select Creating awareness, emotional interest, specific ideas  e-Mail/viral promotions  Search engine optimisation/promotion [Where to do what]  Distribution of information through high profile intermediaries  Motivational content  Interactive TV Planning the trip Providing ‘hard’ information  Information on transport services, including links  Excellent planning information on the Web, including market access information, itinerary and route planning, events, etc  Special offers by e-mail BookingEnabling booking  Product search facility on Web  Booking provided on, or facilitated by, destination Web site  Shopping mall The visitVisitor services on the ground  Dynamic itinerary planner for visitors  Use of new media to tell stories – interpretation, recreation  Immediate/location-based offers by SMS/email  Information and functions for use by information centres and other outlets  Distribution to kiosks, mobile devices, etc Dreaming - the next trip Maintaining the relationship through research and follow-up action  Research on customer behaviour and satisfaction  Newsletters – what’s new, special offers  Special offer e-mail shots  Visitor journals © TEAM (2005)

8. The CLC and e-Marketing for Leisure The Customer Journey Communications Life Cycle New media/ e-Marketing Activity Dream and select Creating awareness, emotional interest, specific ideas  e-Mail/viral promotions  Search engine optimisation/promotion [Where to do what]  Distribution of information through high profile intermediaries  Emotional/motivational content  Interactive TV Planning the trip Providing ‘hard’ information  Carrier information  Excellent planning information on the Web, including market access information, itinerary and route planning, events, etc  Special offers by e-mail BookingEnabling booking  Product search facility on Web  Booking provided on, or facilitated by, destination Web site  Shopping mall The visitVisitor services on the ground  Dynamic itinerary planner for visitors  Use of new media to tell stories – interpretation, recreation  Immediate/location-based offers by SMS/email  Information and functions for use by information centres and other outlets  Distribution to kiosks, mobile devices, etc Dreaming - the next trip Maintaining the relationship through research and follow-up action  Research on customer behaviour and satisfaction  Newsletters – what’s new, special offers  Special offer e-mail shots  Visitor journals © TEAM (2005)

9. The CLC and e-Marketing for Leisure The Customer Journey Communications Life Cycle New media/ e-Marketing Activity Dream and select Creating awareness, emotional interest, specific ideas  e-Mail/viral promotions  Search engine optimisation/promotion [Where to do what]  Distribution of information through high profile intermediaries  Motivational content  Interactive TV Planning the trip Providing ‘hard’ information  Carrier information  Excellent planning information on the Web, including market access information, itinerary and route planning, events, etc  Special offers by e-mail BookingEnabling booking  Product search facility on Web  Booking provided on, or facilitated by, destination Web site  Shopping mall The visitVisitor services on the ground  Dynamic itinerary planner for visitors  Use of new media to tell stories – interpretation, recreation  Immediate/location-based offers by SMS/email  Information and functions for use by information centres and other outlets  Distribution to kiosks, mobile devices, etc Dreaming - the next trip Maintaining the relationship through research and follow-up action  Research on customer behaviour and satisfaction  Newsletters – what’s new, special offers  Special offer e-mail shots  Visitor journals © TEAM (2005)

10. The CLC and e-Marketing for Leisure The Customer Journey Communications Life Cycle New media/ e-Marketing Activity Dream and select Creating awareness, emotional interest, specific ideas  e-Mail/viral promotions  Search engine optimisation/promotion [Where to do what]  Distribution of information through high profile intermediaries  Motivational content  Interactive TV Planning the trip Providing ‘hard’ information  Carrier information  Excellent planning information on the Web, including market access information, itinerary and route planning, events, etc  Special offers by e-mail BookingEnabling booking  Product search facility on Web  Booking provided on, or facilitated by, destination Web site  Shopping mall The visitVisitor services on the ground  Dynamic itinerary planner for visitors  Use of new media to tell stories – interpretation, recreation  Immediate/location-based offers by SMS/email  Information and functions for use by information centres and other outlets  Distribution to kiosks, mobile devices, etc Dreaming - the next trip Maintaining the relationship through research and follow-up action  Research on customer behaviour and satisfaction  Newsletters – what’s new, special offers  Special offer e-mail shots  Visitor journals © TEAM (2005)

11. US online travellers – positions within the CLC Source: Canadian Tourism Commission (Spring 2002) - Role of the Internet in the vacation travel of North Americans. Around 50% 35-40% < 10%

12. CLC and e-marketing for Business Tourism Options evaluation V Again DMOs, through their Convention Bureaux, must optimise their opportunities by responding effectively to the requirements of the meetings planner at each stage in the cycle Event Planning Venue Booking + Hotel Room Allocation The event Planning the next event Is the CLC concept relevant for business tourism? Yes! The business tourism application must be divided into two – communications with the meeting planner and with the ‘delegate’ Let us start with the CLC for the planner of conventions, congresses, conferences, exhibitions etc:

13. CLC for convention and exhibition planners The Customer Journey Communications Life Cycle New media/e-Marketing Activity Options evaluation and selection Creating awareness, interest, specific ideas  Prospect search and evaluation by Web  Excellent Web information on the destination’s added value for conferences and exhibitions – rational/emotional  MICE buyer eCRM (including e-newsletters)  Electronic RFP system  MICE media liaison Planning the event Providing ‘hard’ information  Excellent Web information on venues and hotels  Special offers by e-mail  Carrier information Venue booking and hotel room allocations Facilitation of booking and room allocations  System for creation of event Web site, linked to destination site  Systems for managing room allocations across the destination The eventServices on the ground for meetings planners  Systems for common access to registered delegate information/requirements Planning the next event Maintaining the relationship through research and follow-up action  Continuing the eCRM cycle – e-newsletters etc  Research on planner satisfaction and attitudes  E-mail promotion of opportunities for future meetings  Special offer e-mail shots © TEAM (2005)

14. CLC for convention and exhibition planners The Customer Journey Communications Life Cycle New media/e-Marketing Activity Options evaluation and selection Creating awareness, interest, specific ideas  Prospect search and evaluation by Web  Excellent Web information on the destination’s added value for conferences and exhibitions – rational/emotional  MICE buyer eCRM (including e-newsletters)  Electronic RFP system  MICE media liaison Planning the event Providing ‘hard’ information  Excellent Web information on venues and hotels  Special offers by e-mail  Carrier information Venue booking and hotel room allocations Facilitation of booking and room allocations  System for creation of event Web site, linked to destination site  Systems for managing room allocations across the destination The eventServices on the ground for meetings planners  Systems for common access to registered delegate information/requirements Planning the next event Maintaining the relationship through research and follow-up action  Continuing the eCRM cycle – e-newsletters etc  Research on planner satisfaction and attitudes  E-mail promotion of opportunities for future meetings  Special offer e-mail shots © TEAM (2005)

15. CLC for convention and exhibition planners The Customer Journey Communications Life Cycle New media/e-Marketing Activity Options evaluation and selection Creating awareness, interest, specific ideas  Prospect search and evaluation by Web  Excellent Web information on the destination’s added value for conferences and exhibitions – rational/emotional  MICE buyer eCRM (including e-newsletters)  Electronic RFP system  MICE media liaison Planning the event Providing ‘hard’ information  Excellent Web information on venues and hotels  Special offers by e-mail  Carrier information Venue booking and hotel room allocations Facilitation of booking and room allocations  System for creation of event Web site, linked to destination site  Systems for managing room allocations across the destination The eventServices on the ground for meetings planners  Systems for common access to registered delegate information/requirements Planning the next event Maintaining the relationship through research and follow-up action  Continuing the eCRM cycle – e-newsletters etc  Research on planner satisfaction and attitudes  E-mail promotion of opportunities for future meetings  Special offer e-mail shots © TEAM (2005)

16. CLC for conference and exhibition delegates Decision to attend V Let’s look again at the communication opportunities at each stage in the life cycle PlanBookVisit Future trip planning Varying levels of Convention Bureau interest in promotion to delegates. Some leave it to the organisers; others wish to get involved. Why do it? Because the Convention Bureau can work with the meeting planner to maximise attendance at the event and exploit the potential for follow-up visits, whether for business or leisure travel For those that are interested, the CLC for delegates looks more like that of the leisure consumer

17. CLC for conference and exhibition delegates The Customer Journey Communications Life Cycle e-Marketing Activity Decision to attend Creating awareness of destination, the business and social programme and pre/post event opportunities  e-Mail promotions by Convention Bureau or Meeting Organiser  Excellent Web information on the destination’s added value for conferences and exhibition delegates – emotional, social, educational = the motivators Planning the trip Providing ‘hard’ information  Excellent planning information on the Web, including accommodations, transfers, up-to-date business and social programme, pre/post event opportunities BookingEnabling booking  Online registration, including hotel search/booking via event, destination or agency Web site, pre/post event tours, etc The visitVisitor services on the ground  Venue based information provision by kiosks, WiFi, etc  Hotel room based information provision by Web, interactive TV  Immediate/location-based offers by SMS and wireless Internet Future trip planning Maintaining the relationship through research and follow-up action  Research on customer behaviour and satisfaction  Newsletters – what’s new, special offers for leisure trips  Special leisure offers by e-mail © TEAM (2005)

18. CLC for conference and exhibition delegates The Customer Journey Communications Life Cycle e-Marketing Activity Decision to attend Creating awareness of destination, the business and social programme and pre/post event opportunities  e-Mail promotions by Convention Bureau or Meeting Organiser  Excellent Web information on the destination’s added value for conferences and exhibition delegates – emotional, social, educational = the motivators Planning the trip Providing ‘hard’ information  Excellent planning information on the Web, including accommodations, transfers, up-to-date business and social programme, pre/post event opportunities BookingEnabling booking  Online registration, including hotel search/booking via event, destination or agency Web site, pre/post event tours, etc The visitVisitor services on the ground  Venue based information provision by kiosks, WiFi, etc  Hotel room based information provision by Web, interactive TV  Immediate/location-based offers by SMS and e-mail Future trip planning Maintaining the relationship through research and follow-up action  Research on customer behaviour and satisfaction  Newsletters – what’s new, special offers for leisure trips  Special leisure offers by e-mail © TEAM (2005)

19. CLC for conference and exhibition delegates The Customer Journey Communications Life Cycle e-Marketing Activity Decision to attend Creating awareness of destination, the business and social programme and pre/post event opportunities  e-Mail promotions by Convention Bureau or Meeting Organiser  Excellent Web information on the destination’s added value for conferences and exhibition delegates – emotional, social, educational = the motivators Planning the trip Providing ‘hard’ information  Excellent planning information on the Web, including accommodations, transfers, up-to-date business and social programme, pre/post event opportunities BookingEnabling booking  Online registration, including hotel search/booking via event, destination or agency Web site, pre/post event tours, etc The visitVisitor services on the ground  Venue based information provision by kiosks, WiFi, etc  Hotel room based information provision by Web, interactive TV  Immediate/location-based offers by SMS and wireless Internet Future trip planning Maintaining the relationship through research and follow-up action  Research on customer behaviour and satisfaction  Newsletters – what’s new, special offers for leisure trips  Special leisure offers by e-mail © TEAM (2005)

20. Agenda The marketing communications life-cycle and its application to leisure and business tourism segments Three drivers of change for DMOs

21. 1.The central role of technology for everyone –Consumers –Intermediaries –Businesses 2.Demanding consumers 3. Commercial players –Operating in your space, where once only you operated –They need income so they are customer focused –They have efficient business processes –They have effective distribution –And they don’t stand still - always refining and improving Three drivers of change in DMO marketing

22. As intermediaries, must add value or die What can they do better than the private sector? What are they most truly competent at? They must become expert in exploiting the opportunities that technology offers And encourage and enable their tourism businesses, especially the SMEs, to become expert also So, who needs a DMO?

23. Agenda The marketing communications life-cycle and its application to leisure and business tourism segments Three drivers of change for DMOs Nine keys to future success in e-marketing

24. Nine keys to future success in destination e-marketing 1.Reach as many potential customers as possible 2.Maximise the lifetime value of customers, by maintaining the relationship 3.Create a compelling website experience 4.Maintain high quality content 5.Deliver sales, directly or indirectly 6.Offer customised packaging 7.Engage tourism businesses, to deliver the inventory 8.Demonstrate return on investment – performance evaluation and benchmarking 9.Ensure effective electronic distribution of information to travellers and visitors, including location based services

25. Key1 – Maximising market reach Use of traditional media to promote the destination Web site(s) for fulfilment – “the Drive to Web” Search engine optimisation – the critical factor Distribution partnerships: –using online intermediaries to get your product in front of far more consumer eyes than you can reach through your own site –you can’t beat them, so join them –but you need inventory to partner with most of the intermediaries

26. Key 2 – Maximising the lifetime value of your customers through CRM Your past customer, if satisfied, is your best source of future business – repeat business and recommendations Customer relationship management (CRM) How is it relevant to destinations? 1.Keeping enquirers interested during the lead time to conversion 2.Attracting visitors back 3.Co-opetition: working with your (apparent) competitors CRM = An underlying philosophy, not an add-on Understanding your customers’ needs and decision making processes, satisfying them, attracting them back A strong case for ‘account management’ in larger DMOs

27. Key 3 – The Web site experience Quality of presentation Balance of content (emotional/rational) Functionality –Speed of download –Navigation –Interactive searching – answering enquiries dynamically –Schedule planning –Mapping and route planning –Access to third party services – e.g. weather forecasts Identity and trust

28. Key 4 – Achieving high quality content Content is king – for the customer Content is the poor relation for many destination management organisations (DMOs) – incomplete, inaccurate, out-of-date; this destroys credibility High quality content should be your core asset – a key area in which you can add value

29. Key 4 – Achieving high quality content Within a DMO, different people have to be able to develop Web sites for their particular markets or customer groups and to maintain the data and content on a day-by-day, or minute-by-minute, basis Content management systems provide this flexibility – now in place in leading NTOs But content must be co-ordinated and, where appropriate, shared ICT provides the opportunity to import data from specialist providers, rather than reinvent it

30. Key 5 – Delivering sales It is, or should be, the job of every DMO to generate new business for its country or destination The DMO’s marketing should take its potential customers to, if not through, the point of sale  Online reservations are offered predominantly at the regional and local level, reflecting: –Previous off-line activity –Commercial imperative to generate increased income  NTAs and NTOs generally prefer to enable bookings by others, reflecting: –Constraints on government funded organisations –Lack of previous experience –Partners (commercial or destinations) better able to do it Consumer perspective:

31. Type of Web Site Online travellers Travel PlannersTravel Bookers Online Travel Agency Sites66%63% Search Engine Sites67%44% Company Sites59%63% Destination Sites55%25% Special Interest Sites21%9% Travel Guide Sites12%7% Newspaper or Magazine Sites11%6% Community Sites6%4% US online travellers’ habits Travel Industry of America (TIA) Report “Travellers’ Use of the Internet, 2003 Edition”.

32. Delivering sales – the options Booking engine as part of destination system Outsourcing of the whole booking operation to one or more booking agencies Allowing each tourism business to nominate a booking engine, with links from the destination Website Shopping mall approach – enabled by new technology –Choice –Transparency –‘Polling’ of availability

33. Delivering sales Consumer expectations – instant gratification This requires DMO access to inventory (available accommodation) Two approaches –Accommodation PMS integrated with DMS –DMS checks availability from PMS (polling)

34. Key 6 – Customised packaging Enabling the customer to create their own package, by selecting components of their own choice, which are then paid for in one transaction – the cost may be more or less than the sum of the components Key development that is driving the strategic planning of the major tour operators and online travel agents The reason ….

35. At the same time, the number of online travel buyers who purchased pre-packaged travel declined from 19% to13% Dynamic online package purchasing in the US % of US online travel buyers who made a combination purchase of travel components using dynamic packaging technology 200324% 200433% Source: Findings from a PhoCusWright Report, quoted by travelmole in March 2005.

36. Dynamic packaging Highly relevant concept also for DMOs, which wish to maximise sales of their destination’s products Those which themselves undertake transactions can potentially provide dynamic packaging – but it is complex to implement within the destination context All DMOs can at least emulate dynamic packaging by enabling customers to assemble the products they want into a ‘shopping basket’ and then to easily access the relevant supplier Web sites for purchase

37. Key 7 – Engaging tourism businesses, to deliver the inventory A critical factor In many cases, DMOs have overestimated the willingness and ability of tourism businesses, particularly the SMEs, to participate actively in new Internet platforms This can easily undermine the success of the DMO’s considerable investment in ICT systems Need for awareness raising activity of the importance of the Internet for future destination marketing, particularly for international business; and a broad understanding of the techniques involved in e-marketing This must be followed by training and ongoing business support Access to real-time inventory is the key

38. Key 8 – Performance evaluation and benchmarking When new Internet platforms are being established, performance evaluation should be part of the specification, so that data is available from the outset Various types of data that can be easily assembled: –Web metrics – data that can be obtained automatically about the users of your site and the way in which they used it –Online surveys of users, who are invited to complete a questionnaire at the time of their visit – reasons for using the site and reactions to it Other methods of effectiveness: expert audit and evaluation; laboratory testing; and online experiments Evaluation will be more meaningful if it can be benchmarked against competitors – WTO scheme to be launched in November

39. Key 9 – Electronic distribution to visitors Increasing use of e-distribution during The Visit The ‘new frontier’, with major implications for existing often expensive information services within destinations Focus on distribution to mobile/PDA (everybody has one) and to car based systems ‘Push’ of special offers or opportunities, as well as pull – visitor searching for information Location based services will use GPS to push specific information and offers to willing recipients in particular locations – interpretation, as well as sales

40. DMOs – The e-marketing survival kit

41. Resumé The communications life-cycle (or ‘the customer journey’) as a conceptual framework for e-marketing for both leisure and business tourism The drivers for change that require the adoption of new tools and techniques to realise future opportunities and to genuinely add value Keys to success in destination e-marketing – the key issues for DMOs to consider in the development of their new media applications

42. Thank you for your attention! For further information: Dr Roger Carter RogerCarter@team-tourism.com +44 1242 512 279 1 December 2005