The next big wave in tourism marketing

*This article is written by Tourism Marketing and Management students Jonna Kumpu and Tiina Kattilamäki

The second #IFITTtalk @Helsinki seminar on Digitalization in Tourism business was held at Hotel Arthur on Tuesday 15th of May. The seminar was opened by Kari Halonen from ToolBox Ltd, who was also the main organizer of the day. The opening speech was given by Juho Pesonen from the University of Eastern Finland, who has his thoughts on digitalization and customer experience. It is especially this focus on the customer experience that will be changing tourism marketing on a profound level in the future. Of course, the experience has always been important in tourism, but now with social media and the importance of earned media and technological development, customer experience will be the key to success in tourism. It was also the focus of this IFITTtalk seminar. 

Multisensory experience is the future of tourism marketing

During the day, we got to listen to several speakers and their thoughts and best practices concerning digitalization in the tourism field. One of the most interesting speeches was given by Pasi Tuominen from Haaga-Helia University of Applied Sciences. He emphasized the multisensory approach to tourism services in which all senses are being utilized. For example, in the hotel room of the future customers are able to select in what kind of eenvironmentthey want to fall asleep by using an app on their mobile phone. In multisensory approach spaces, surfaces, smells, and voices are all being utilized. Essi Prykäri from Lahti University of Applied Sciences emphasized the importance and possibilities of 360° Virtual Reality videos, for example in marketing nature tourism. This has also been done for example by SaimaaLife in the Savonlinna region, which we got the pleasure to get to know earlier in the spring when she visited our programme.

Tourist experience captivating the audience

Jarno Malaprade from Tietotalo talked us through the evolution of mobile phones and reminded us of the fast development that has happened during the last few decades. Our phones have transformed from normal mobile phones to personal assistants, and the transformation continues. Jarno also introduced us more closely to beacons, which are Internet-of-Things devices that can be utilized easily in various ways in tourism businesses. The beacons can help businesses to for example guiding customers in certain areas such as theme parks, which tend to get busy at times. The beacons are aware of the presence of the user and can be used to collect all different sorts of data to help in experience design.

Heini Niklas-Salminen from TourGuideFox presented their company’s app, which offers digitally guided city tours. The company has started tours recently in Helsinki but is planning to expand in the future. Heini gave some insights for features of successful apps. It has to be easy to buy, modified to different target groups and that customer experiences are at the core of service. TourGuideFox aims to be more than just another city tour app; there is a possibility to build a whole ecosystem based on creating more value for tourists when they are on the trip.

 

The development of AI and robotization in tourism

The speeches were finalized by Iis Tussyadijah, the President of IFITT, who joined the seminar online. She emphasized the importance of AI and robotics, as services will be robotized in the future. According to her, this change will also greatly affect tourism business. It will bring both opportunities and challenges, and tourism industry should be ready to optimize the benefits and minimize the risks.

The afternoon continued with workshops on digitalization. Also, we got to familiarize ourselves with the exhibitors, who introduced their companies. The companies included were Tripsteri, Qvick, Koodiviidakko, HMMH Consulting, Wowanders, and Poutapilvi. Also, the company representatives had a chance to participate in workshops concerning digitalization held by Juho Pesonen.

The main notion of the day is that tourism businesses can profit greatly from digitalization. It will make the travelers’ lives easier, but also the travel experience certainly a lot more interesting. It became apparent during the day that many companies already use different kinds of applications in order to offer new services, but there is still a lot to be done. However, the question remains whether the virtual reality will never be able to replace real experiences. Does it even have to, or should it be more like an addition to the actual experiences that the traveler may face?

Participants were really enthusiastic about the day’s topic and were eager to share their knowledge and tell about their business ideas. Everyone certainly finished the day with inspiration and new ideas to be utilized in the future.  All in all, the day proved that there definitely is a place for a seminar like this also in the future. It is fantastic that IFITT is supporting events such as this and enables tourism industry to benefit from digitalization and share ideas and best practices.

 

#digitalization #technology #AI #tourism #IFITTtalk #IFITT #hotelarthur #tmm #helsinki #maketourismbetter

The Most Common Problem in Destination Marketing in the World

World’s Most Common Problem in Destination Marketing

What is the difference between successful and non-successful destinations from the destination marketing perspective? In this post, I want to understand the details behind successful destination marketing. What is the one key thing to gain competitive advantage in destination marketing?

When we start to think about the exact reasons for the success, I suppose that most of the people will answer that: “It is all about the strategy”, or “The budget walks hand-in-hand with the success”. Third largely heard opinion is: “There are right people behind it”.

These are all right answers while looking at them from the micro perspective. Anyway, by turning the whole point of view into a larger scale, we can find one rallying point for all of them. That is the collaboration. Collaboration ties all of them together and separates the destinations into a successful and non-successful.

d’Angella & Go (2007) and Fyall, Garrod & Wang (2012) have created an excellent researches about the connection between collaboration and marketing. Main results were that, in tourism destinations collectivism is needed for individual success. In such a win–win situation cooperation brings higher competitiveness for the actors involved. The collaboration allows destinations to expand their reach and tap into wider market opportunities. Collaboration is also natural response to the marketing and management challenges of destinations.

We can pointedly say that to succeed with marketing objectives, it is necessity to re-orientate with organisational level toward the achievement of ‘‘collaborative advantage’’ rather than ‘‘competitive advantage’’. The future norm for successful destination marketing and management will be more collaboration and less isolationism. Good example about the destination marketing with “collaborative advantage” is Iceland.

How DMO can strengthen up the level of collaboration?

There are usually many different aspects affecting for the willingness to do collaboration. In many cases, behind the non-collaborative destination you will find following similarities: trust, fear of change and preposterous expectations toward DMO. These all fits in under the following statement: lack of knowledge. There are tons of small micro companies (SME’s) in tourism industry, which does not have the knowledge about nowadays needs. Many of them do not even know the basics about the current issues in marketing scene.

We have almost reached the 2020’s and the marketing is focusing more and more on different digital channels. To be successful, one must be able to develop itself to answer for nowadays needs. Unfortunately, the fact is that SME’s knowledge toward digital marketing is still limited. These small entrepreneurs are still playing by the rules settled in the 90’s. Posters, brochures, newspapers and letters via postal mail. There are too many whose only digital channel is Facebook without any idea how to use it effectively.

To be successful in destination marketing your every component needs to be at a certain level. In situation where the SME’s do not even know how to be visible in online you don’t meet with this goal. As a DMO, encourage the entrepreneurs to improve their skills in digital marketing. That is the modernity, and it is the necessity. SME’s don’t need to be professionals but if they even know how to be visible in online, how to create content, how to use SEO and how to use social media effectively, you are already one step ahead.

How to learn digital marketing together as a destination?

Content creating is now easier than ever. You do not need to be an engineer to create content anymore. Everyone has a possibility for that in the internet. Social media (SM) and content management system’s (CMS) such as WordPress have unlimited options to share content effectively and more importantly, easily.

Educating people inside the destination is not even time-consuming process for DMO anymore. Most of the programs are available in digital format.  Even better, there are great variety of free courses where to participate in. Encourage the SME’s to attend for these free courses and learn how to use these different online tools. Check out these top free online courses to upgrade your destinations digital marketing skills in to next level:

1. Google Digital Garage: https://learndigital.withgoogle.com/digitalgarage/

One of the most versatile courses is offered by Google. These completely free online courses will guide the participator through everything from search engines, to social media and beyond. There is totally 26 different topics and 106 lessons. You will learn to use SEO, create content, to be visible in online, launch different kind of marketing campaigns and use analytic tools more effectively. This is probably the best place to start learning the basics of digital marketing and E-Business.

2. Alison Diploma in E-Business: https://alison.com/course/Diploma-in-E-Business

Alison is a massive online learning community of more than six million registered users. They offer both, free and paid courses. Now you can take the free digital marketing course, Diploma in E-Business. Taking part for the course you develop your skills in search optimization, Google Analytics and AdWords, campaign tracking and integration, revenue metrics analysis, digital measurement, and much more. Extremely useful and recommend course to upgrade your current knowledge.

3. HubSpot Academy: https://www.udemy.com/inbound-marketing-course/

HubSpot Academy offers an incredibly comprehensive digital marketing courses. They are also offering free and paid courses. Recommend free course is: Inbound Marketing Course. This course has currently more than 35K participators. This inbound marketing course offers over 4.5 hours of instruction with totally 38 lectures, and all of them are completely free. You will learn how SEO, blogging, landing pages, lead nurturing, conversion analysis and reporting come together to form a modern inbound marketing strategy.

Benefits of collaboration

At the beginning, it is enough if you can encourage even couple of companies to take a part for these courses. As a DMO, think about the benefits of educating the people inside your destination.

1. You will get available working hours and other resources for your destination marketing. That does not involve even money transfers. The more people we have creating content about the destination, the easier all of this provides advantage through synergy. Little by little the visibility and awareness of whole destination will start to increase.

2. Togetherness creates strength. It is always better to have more people doing right things at the same time. Professionals are important, but one or two gurus cannot do everything by themselves.

3. You can start to build a common marketing strategy in more detailed level. Exploit the different digital channels as together and create a controlled content network between the individuals inside the destinations.

Once you have reached that, you are ready to take a step for the next level: collaboration between destinations and organisations.

Using Pixel Hotel idea for entrepreneurship

Can we own a hotel or start hotel business with our limited money? You may think that the answer is no. But, I would say Yes, and you will probably agree with me if you take a closer look at pixel hotel business idea in Austria.

Pixel hotel is a new form of hotel business which I recently learned while studying tourism destination marketing course. I got so interest to this idea that, I wanted to learn more about this and share my thoughts.

Whenever we think about a hotel, what usually comes to our mind? A nice tall building with lot of rooms in different floors with many other facilities. But, Pixel hotel is just the opposite. “The city is the hotel” which is the slogan of pixel hotel and it works like that. This new idea of hospitality industry came into existence in 2006. The idea originated from a concept made by a group of young architects and designers in Linz, Austria.

Pixel hotel is a cultural enterprise in Linz, with the aim of giving guests a direct experience of unusual accommodation with certain particularities. Another aim of this association is to utilize unused properties in urban and rural areas in profitable way. This also gives an opportunity to their guests to stay close to their travel destination. Hence, tourists get more time to travel. Targeted tourists are those people, who love watching things a bit slower and bit closer. As an accommodation project, it has become an international recognized brand which was cited as an example of innovative tourism in 2009. Rooms of pixel hotel are scattered in whole city which can be an old building, workshop or basically anything which can be used as accommodation.

Picture of the first prototype Pixel Hotel which was in an empty garage.

Similarly, for pixel guests, there is not any certain restaurant to offer lunch and dinner. Rather guests are invited to discover the local food and culture and to know the story of that place.

In my opinion, this is a very nice business idea to learn from. This idea can be utilized to start hotel business with very little money and with minimum preparation. Another competitor in the market is Airbnb, but people who rent apartment there usually own only one apartment and that is not their main source of income. On the other hand, an establish hotel is always more reliable to the guests and more profitable.

How Pixel hotel idea can be utilized in Finland

Finland is a big country with very little population. Most of the tourists’ services like hotels and transportation facilities are available mainly in big cities and in the center areas. So, when tourists visit Finland, they tend to stay in those places which are close to their hotel and where public transport are available. Because of this, attractions in small towns and places remain unknown and undiscovered by most of the tourists. But, we can utilize pixel hotel idea here to arrange accommodation and other facilities for the tourists in all over the country, then it may appear as an attractive tourists’ service for those who will plan to visit Finland in future.

Idea: A simple house can be used as a hotel

Moreover, there are many empty houses and apartments in every cities and towns which are ready to use or with little arrangements can be made ready to rent to make money. People can use this idea to start their own business with a limited money and minimum risk.

Source: http://www.pixelhotel.at/index.php?id=1&L=0