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Barbara - Understanding the future tourism consumer

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Barbara Imazatene

on 1 December 2013

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Transcript of Barbara - Understanding the future tourism consumer

Understanding the future tourism consumer
Moffat Centre and Scholarships
* Moffat Centre revenues created by trading; work in more than 45 countries on over 600 projects
Now the catalysts…
Tourism Development
Professor J John Lennon
Moffat Centre for Travel and Tourism
Glasgow Caledonian University, UK
* Since 1999 £1.3 million in scholarships awarded by the Moffat Centre to students interested in studying Tourism subjects
* Details www.moffatcentre.com
Albert Einstein
“I never think of the future,
it comes soon enough”
When I began…



Now the catalysts
Low Cost Carriers
Growth of Cities as destinations
Rise of Retail as the alternative attraction
Centrality of Web / electronic marketing and data sourcing
Understanding the
future Consumer
* What do we want to achieve ?
* Visitor Numbers / more customers
always a good starting point to
understand business
* Something of a struggle...when we are not great at understanding the consumer
* Lets consider…
Holiday Buying Behaviour
Holiday Decision Making Hierarchy
2. Children
3. Father ?
Holiday Decision Making Hierarchy
Designing for Consumption
Do we design hotels with knowledge of consumers
Spaces we create and how they are used
Understanding Buyer Behaviour
Critical Touch Points
First Physical Contact
For example; Check in
Understanding Buyer Behaviour
Attention is focused on owners of credit cards
Other adults
Understanding Buyer Behaviour
Service encounter can be transformed if attention is focused on reasons for holiday location / choice / expenditure
OR the most important people in the parents lives…
Their Children
Service encounters with Children
“ Its OK John, we employ lots of teenagers and they know how to look after small children because they have younger brother and sisters.”
As we know the Experience
Is now electronic
100% Transparent
Trailed and Photographed
Displayed and exchanged
Consolidated and detailed
Twitter, Facebook, Tripadvisor…
Scale is important here
The number…
500 million
The number
500 million ; the number of
photos uploaded and shared every minute
in 2013
This has changed our industry and
will continue to do so
It’s a race with the retailers
-> Oxford Street, Regent Street, Bond Street in London
The largest combination of retail spend on the planet
The race is over
British Museum
5.5 m visitors
Oxford Street Footfall
140 m visitors
81% of tourists to London list shopping as a must do activity
Our World in 2013
How is it characterised ?
How is it defined ?
Seems like its all about IT and Retail
So I needed a plan…
My approach
When I knew you wanted to understand future consumption I interviewed people

-> People a lot smarter than me…
(But not from tourism people like…
* Chief Executive ASOS
*Chief Technical Officer Microsoft

* £1+ Billion Retail Sales
* No Stores
* 1 Warehouse, 7 websites, 150+ countries
* Free Delivery
* UK based
* UK 3% of consumer base
*In 8 years UK 1%
* Internet is just another phase
of retail development
* Technology is an enabler allowing people to make big decisions in a very short time
* But what about Oxford Street, London
* Everyone still goes to TopShop
* Choice is killing the Old World
* Not everyone has access to Oxford Street or TopShop
* They do on the internet
* Choice on-line vs Choice in Store
* Building web appeal
* No one enjoys viewing 7-8 websites - better one site that has everything
* Then make it Personal – how do we simplify the offer / profile algorithm
* 1 They buy at night / 2 They buy a lot on line / 3 Personalisation and the idea of a personal stylist helps (style library)
* Building awareness – from web to brand
* ASOS saw space opening in fashion
* Employed young people who…
* Love Fashion
* Love mobile
* Love internet
* They also love holidays as Facebook will testify
* Largest clothing retailer in Australia with no traditional marketing and 2-3 days delivery time
* Awareness and growth only via Facebook, Twitter and other social media channels

* Pervasive Connectivity
* HD Collaboration
* Natural Interaction (wearable nanotech)
* Everyone’s mobile
* Social Graphics
* Big Data and Better Insights
Microsoft : shaping future
In Store experience is on-line
Everything is about story telling
The new shopping
No longer “How can I help you ?”
Now its how can I help myself
Buying the Microphone
* Scan microphone bar code online
* See what users think of the product
* Compare price on line / in store
* Shopping has changed
Are you really keeping pace with technology ?
7 years is an eternity
Think about this brand
But I want the best for my child…

The toddlers favourite toy

Baby friendly Apps
Toddler Teasers, Baby Fun !, Instant Arcade, Peek-a-Boo, Pocket Zoo.
Apple is the favourite brand among children
Pass tablet to child and they are hooked
The Centrality of Brands
By 2 years 90% of all infants are watching screen media regularly (developed world)
Brand recognition 18-24 months
By 36 months US children can recognise up to 100 brands
Brand preferences expressed at age 4-5 years
56% of adults use brands they remember from childhood
1. Mother
Think about brands and teenagers
Anxiety and belongingness
Majority of teenagers believe buying branded goods will enhance confidence and peer acceptance
( Superdry T Shirts, Abercrombie Hoodies )
Todays teenagers spend 5-6 x the revenues
their parents spent on clothes
Brands and Teenagers
During the period of identity development belonging is a powerful urge for children
Alignment with an external force – using the attributes of that group, that object helps define themselves
More than 60% of teenagers consider brand when choosing clothes and the majority would be reluctant to wear non-branded goods
That’s how Abercrombie can charge £50 for a T shirts and Apple £590 for a phone
So who really understands the customer ?

its probably not a major hotel chain
So who then… ?

Probably Mark Zucherberg (Facebook)
If it was a country it would be between 2nd and 3rd largest in the world by population
More than 60 million daily status updates
It's where everyone is
It's where we construct our lives
Where we send messages, post invites,
Where we post pictures (more than 1 billion
images posted per week)
Where we say what we like (the importance of peer recommendation)
This material is gold to those who mine data…and big data and understanding your likes, needs and wants is where the market is going
Welcome to the £70 billion world of data mining / knowledge discovery / consumer insights
Companies now can chart your buying habits, race, gender, address, phone no, education, approx. income, family size, pets, film choice and much more creating an ability to understand…
An airline boarding card or a discount voucher printed from your computer with a bar code gives access to your computer IP address, Facebook profile and posts, date and times you printed and used the boarding pass
-> The motivations and understandings around what customers buy and do
-> Every element of what you purchase can be monitored
Your on line behaviour will be matched to in store purchasing, in this way retailers can understand what ads work for your demographic/ population profile
Personalised sales communication

The aim is to build programmes based on recognition and relevance which comes from knowing preferences, loyalty cards…
In 2011 major concern when it emerged that iphone and Android phones contain software that tracks and records users locations. Location updates every few seconds why …A $3 billion market for location based services
Let's look at use
Walmart – POS data captured from 3000 stores in 6 countries held in a 7.5 terabyte warehouse (8 x size of US Federal Governments storage facility)
Why ?
What sells and what doesn’t
Example Hurricane Warning – what to stock ? Torches and batteries
Personalised sales communication
The aim is to build programmes based on recognition and relevance which comes from knowing preferences, loyalty cards…
In 2011 major concern when it emerged that iphone and Android phones contain software that tracks and records users locations. Location updates every few seconds why …A $3 billion market for location based services
Best of all

Pop Tarts (Strawberry flavour)
Now with Google maps it knows where you live, car parked in driveway, whether or not your fire is lit…
Now Google will know who you like on Facebook, who appears in your photos, what you tweet about…
Welcome to the post privacy age
Most sophisticated predictive algorithms and data tracking capabilities
Google knows what you search for, links search to computers used, knows what online videos we watch, music you stream, articles read, files downloaded, knows what's in your emails (scans automatically for serving contextual advertising).
That brings us back to the consumer
The aim here is to get close to people
So do not loose heart
Those people sit in your restaurant, eat your breakfast, sleep in your beds, take your rides, pay your admission
Access to Customers
People are with you for valuable time
They are much more likely to follow a purchase recommendation from someone they know or trust
Humans still have an important role here
Do not squander this time
Tourism can compete
Holiday is a must do
Travel is the norm
Authenticity and personal contact is the desire / aspiration
Personalisation is at the heart of most of the algorithms used for profiling
Here is the advantage for tourism…
Ask Yogi Bear
“This forecasting stuff is really tricky
especially about the future”
Enough from me
Questions welcome
Full transcript