Thursday, August 28, 2008

Narrow Foot High Arches





Just after the bursting of the Internet in June 2000, there was some question the real possibilities of success of the newly established online travel agencies.
The rate of penetration of the Internet, the emergence of low cost airlines, changes in consumer habits and the need for distribution after the September 11th attacks of 2001, gave a decisive impetus to a number of global players - Expedia, Priceline, Orbitz, Travelocity - which are now an undeniable part of the great leaders of marketing and distribution.
During this period of growth and consolidation of players online, has repeatedly questioned the role and future of the rest of the elements that make up the distribution sector, mainly traditional travel agencies and tour operators (such as referral from my point of view on the status of the distribution sector and its possible evolution, I refer to my post and presentation "Hosteltur Forum 2008").

resurfaces a few months to force the debate on the viability of online travel agencies in an environment where:
- Increasing pressure on margins becoming increasingly difficult to cover the substantial costs of technology and all marketing.
- Some marketing costs that increase out of control, both by the increasing reliance on search campaigns, for the steady increase betting competitors keywords, actions and similar formats.
- A bet increasingly important for tourism providers - notably airlines, hotels and car hire - in your e strategias direct sales.
- The ever-important " promiscuity" of customers and the ensuing complexity and cost of loyalty.
All this accompanied by some growth of the market much lower than in recent years, also that they share with aggressive traditional players who have awakened from their slumber offline, as well as new companies are entering the sector continuously remains the most successful e-commerce: Travel.

Finding efficiencies in processes and marketing spending as well as the need to continue generating growth makes the OTA's approach has little to do with the leadership of the revolution, and are in consolidation mode and eventually positioning in emerging markets with high growth potential, give them that level of growth and markets in USA and Europe are becoming more complicated - and expensive! - To achieve.

In parallel, there has been an interesting shift in the new tourism businesses online. With a primary focus processes of promotion, inspiration and planning and generation of routes , differentiation based on giving customers the tools to approach the experience, and give secondary importance to the reservation and booking process, which in most cases outsource to third parties.
In the words of CEO of TravelMuse, traditional agencies devote 90% effort to what from the customer point of view would be 10% of the process: The reservation and purchase. The new agencies devoted 90% of his approach to 90% of the process: planning and purchasing decisions and the impact this may have on the loyalty or inspiration to other customers.

On this basis, we have hundreds of companies that explore and exploit these principles, trying to get closer to the customer and their habits, and give a value transaction revenue side, preferring to maximize the commercial value marketing and advertising of their platforms. In this way, mitigate the risk of significant reductions in margins on tourism components, and become allies of both dealers and suppliers.
top of that, these new online travel agency today represent the cutting edge of innovation in tourism and real customer focus, needs and changing their habits.

addition to metasearch engines, which could be the first generation of this new perspective on travel sites, and pages of user reviews - TripAdvisor type - we see a plethora of new pages that will leave some of the global leaders of coming years. Some who have to go considering:
www.tripsay.com
www.planeteye.com
www.travelmuse.com
www.tripwolf.com
www.nileguide.com
www.farecompare.com
www.
tvtrip.com www.dopplr.com

Tuesday, August 26, 2008

Being Banned From Coach Stores

NEW ONLINE AGENCIES Crisis, Productivity and Innovation



I read with interest the interview with Roland Berger, president of consulting firm Strategic same name, published in El Pais Business, this Sunday ( www.elpais.com/articulo/empresas/Espana/tiene/problemas/estructurales/elpepueconeg/20080824elpnegemp_2/Tes) and I can not help extrapolate the impact of some of their claims to the English tourism sector.

I first jumped on to read the headline. " Spain has structural problems." Mr. Berger referred to here in a generic, our reliance - for growth and employment - of construction, besides the lack of labor flexibility, increased labor costs that is not accompanied by significant increases productivity, lack of training, infrastructure and innovation.
I think with minimal nuances, all these points are applicable to the tourism sector, including development of dependence on construction, because I believe that one of the most important strategic weaknesses of our product and receptive - especially on the coasts and Islands - destinations that we have developed is based on real estate impulses, then we come to sell (or say better. That after we have dispatched recruiters to the tour operators), rather than design and build opportunities to meet medium and long term demand in specific markets.
When Roland Berger predicts the duration of the crisis until 2010 or 2011, I have the following question. In an increasingly competitive and complex, where the cover of the brochure of the tour operator and distribution of airline seats is not enough to have a significant presence in the market. What we stand to compete and maintain a clear sectoral leadership?

The second group of reflections of Mr. Berger are in line with increases in labor costs with productivity static that makes us less competitive on an ongoing basis - particularly in those tourism products more commoditized. Here
competitive in the next years it has even less flattering: Increased labor costs - which does not seem to be able to stop, maintenance - the best - in productivity, a drop in demand due to the crisis, accompanied by an increase the rivalry between destinations, particularly in advocacy, marketing and distribution margins drop - the downturn in demand and increased costs of flights, leaving little room to improve operating margins. A scenario like this in any business of a certain size would have the entire management team working on plans and alternatives to mitigate the risks and exploit opportunities arising in this environment. What must happen in our industry to be promoted these processes?

Roland Berger dare with some proposals for action palira the effects of this crisis, and here we can apply almost all of their suggestions to the tourism sector: zero
* Increased labor costs accompanied by a significant increase in productivity .
* Public and private investments in infrastructure and INNOVATION
* Firm commitment to become a center for talent development and training
If we compare these points with the strategic challenges above, we see that productivity, training and talent, could be consequences or results of the implementation of strategic plans to review the situation in the sector, and focusing on becoming a world leader in the promotion, tourism marketing and distribution. And even, why not, a leader in the development and management of tourist products and destinations. All that is
INNOVATION. To all this is what I encourage, push and provoke, from this blog, from my lectures and classes, or my participation in business events.
not move in this direction will only be prolonging the agony of a model tourism marketing obsolete, and a model of product development and highly improved tourist destinations.

The Horizon Plan 202 0 ( www.turismo2020.es/) should be a good starting point, and offers a more than adequate for it ... We will have the political leadership and industry to give it a try? We'll see the return of summer ...

Monday, August 11, 2008

Multiple Cankers At Once

Tourism Innovation Culture? Tourism Innovation Forum


"Innovation is the creation or modification of a product, and its introduction into a market ."
The definition of the Dictionary of the RAE and makes it clear that innovation is more than creativity or the ability to generate ideas - some even good!.
also and necessarily implies that "what applies to generate added value that will be appreciated by the market. Thus, we could reach the following definition: Innovation is the profitable implementation of ideas. Some authors

plus 4 distinct phases in the management of innovation in the path from idea generation to "harvest" of benefits from it.
These are:
1) Creativity - In their meanings, inventing new things, find original solutions, or the desire to modify or change the world (!)
2) Strategy - Phase-making and planning alternatives that will generate a greater return to our ideas.
3) Implementation - During which sell the result of creativity.
4) Monetization - When there is positive market response in terms of recognition of the value of our innovative approach.

From this perspective, and in line with my previous posts, I wonder what kind of culture sector is necessary for this process is an inherent part of all tourism dynamics, and an element of competitive differentiation and amplified by actors assumed sectoral and social. The bullet
The Poplar 10.08 Sunday World, a English businessman was bold to the following question asked: "Why as much as we always think out brick?". This reflects brilliantly, one of the greatest evils that have affected the development of our tourism model. With honorable exceptions, successful, business has been more speculative than oriented to sustainable development capacity with a focus on innovation. The main attraction of the business has come from the construction side, encouraged also by the patterns of municipal funding. In addition, marketing through the tour operator model has necessitated the development of capabilities or innovation in the areas of promotion, marketing and distribution, which has left the sector in a precarious business to the accelerated decline in passenger volumes and large business groups tour operator , which in its strategy to shift its problems margins purchase prices of hotels, threaten to drag the industry margins and therefore insufficient unsustainable.

Against this background, it is clear that there are no elements for the emergence of a widespread culture of innovation in the sector. However, this same scenario should lead us to believe that s nly a clear commitment innovation, we would still able to maintain a leading position worldwide in our sector beyond the predatory skills of hotels and apartments built for the glory of the tour operators on our coast.

Since this paper sector awareness that each day can play the blogosphere, continue to make calls and proposals for innovation in the sector because the generation of this culture in our industry is only a suggestion, a form of social responsibility given the impact of tourism in our economy, society, territory and environment.

Friday, August 8, 2008

Chilean Ways To Use Scarf Fore Men




Alvin Toffler (The Third Wave) defines change as the process by which the Future breaks into our lives. Almost might add, the demonstration of future and present.
past 10 years - though with undeniable impact over the past five or so - the tourism sector, mainly in areas of promotion, marketing and distribution, has been has been invaded by this strong-looking attack has succeeded in putting its This "upside down."

When we analyze the catalysts of these changes, all agree that the Internet and low cost airlines have played a crucial role, both through its impact on behavior of passengers, for direct distribution opportunities that make available to tourism providers - hotels, airlines, car rental agencies or receptive.
However, behind these catalysts is a common element of INNOVATION. Innovation

business models, such as low cost, rapidly pushing the obsolescence of models valid for more than 50 years, as the tour operator in the sun and beach destinations in the Mediterranean. Technological innovation
, first with the popularization of Internet, and then all subsequent technological applications arise in their environment. Innovation
products or services, primarily in the platforms of both B2B and B2C distribution.
Innovation in processes, whose most striking examples are given in most of the disciplines of tourism marketing.

The great paradigm shift occurs therefore by the powerful performance of catalysts, which arises at the same time generates a cycle / virtuous circle of innovation.
Today we face new challenges and new opportunities to boost tourism globalization, new practices in the distribution and marketing in an environment not favorable. And the question that arises is: are our levels of innovation sector to guarantee the best use of opportunities presented to us? Or vice versa. These changes will once again be a source of threats and mitigate risks by not having the capabilities to take advantage of favorable?

Where can we find these centers of innovation to show us which side does the future invades us in our day?
If we look around us, both locally and globally, it seems that to some extent, the fuel of innovation mentioned above has been diluted, when companies reach a certain scale, and focus their efforts on protecting their growth and margins shrinking rather than assume the risks posed by innovation.
Someone might say that this occurs at the time that companies spend to be managed by entrepreneurs to be managed by executives.
As an example we analyze the evolution of the major players in online distribution. Between 98 to 2002, the approach to innovation in the four areas mentioned was absolute. Since 2002, with an unexpected prominence and growth after 11 / S, the focus shifts from innovation to business development. It is now time to move forward in business models and processes generated in the previous phase.
Since 2005, steady growth rates and online travel markets begin to show signs of maturity. At that time the focus shifts to the generation of efficiencies and any items deemed disruptive innovation and therefore undesirable. Only in the area of \u200b\u200bprocurement remains an interest in new business models with a potential to generate significant changes in the sector.

In 2008, the innovation is outside the major companies in the sector, and moves in three main lines: The Mash-ups, search and semantic models and processes based on Web 2.0 ...
mobile applications do not consider that the vast majority of cases, involves in itself an important source of innovation, and responds more to the pursuit of opportunity for distribution companies and tourism marketing in place to develop business models and processes to these platforms.

Over the next few weeks, I will try to share some thoughts on this line, in order to feed this "sectoral consciousness" which is the web 2.0 in Spain, with some elements of innovation management and strategic implementation.

Tuesday, August 5, 2008

Coffee Stained Wedding Invites

Hosteltur 2008


Today my notes, with a view to giving the thirty-odd days that have passed on Hosteltur Forum held in Madrid on June 25 and both feelings as the conclusions remain similar to those that had both the day of the forum, as in the days immediately following.

First Annual Forum Hosteltur consolidated with the meeting point at the top level management, in which to present and discuss the hottest topics of the sector. The power of attraction and interest in the content increases each year in an obvious way.
The success Hosteltur team this year, to invite the main driving forces of the Commonwealth of Hosteltur - affectionately called "Bloggers" - has helped to provide a breath of fresh air not only the event but then the impact has been - especially in the RED course.

The main discussion dealt with - or should have done! - About our ability, dedication and strategic decision, as a tourist destination and as entrepreneurs / managers to make sustainable global leadership position in our industry, and the alternatives that we could present it in a window of opportunity of about 3 to 5 years.

In my case, made an approach to 3 main ideas. We have no other option to maintain our relevance sector, a strategic approach from the business perspective and as a destination, to develop all necessary plans and capabilities in the areas of promotion, marketing AND DISTRIBUTION. Second, the dynamics of Web 2.0 and the Horizon 2020 plan should give us the framework within which to articulate these plans in an environment of cooperation and consolidation as opposed to the current state of fragmentation and dispersion of efforts and resources. The third contribution to the debate, would supply a context in which to evaluate various strategic alternatives in the distribution, with what I call the fundamental equation of the distribution, which is intended as a planning tool that simultaneously provides value to all stakeholders of the tourism distribution, whose weight will be higher or lower depending on a particular strategy or market, and not absolutely as intended at the moment (and generating debates as barren as the survival of travel agents or the viability of the tour operators or GDS).
condense all this conceptual content in just over half an hour of lecture is not easy, and although a priori it was not dissatisfied with the outcome in PowerPoint, from the beginning of the debate that followed the presentations, I realized that main messages had not permeated most of the audience.

Later - Thank God! - I could see that at least in the blogosphere, the debate going in the right direction and that both chronic and comments were brilliant and successful in criticism, compliments and remarks.

around 3 main ideas mentioned, there was an element intended to unite all the concepts, and act as a generator of a certain sector ATTITUDE: innovation.
can not pretend to be leaders in a sustained without maintaining a high level of innovation, and this, but only becomes effective through well structured processes, only arises at the sector level / national and an attitude that the sector breathe and live at all times as inherent to its essence.

this month that has passed since the forum, I have seen, heard and discussed hundreds of comments on whether it was possible or not leading distribution (or as I prefer to see him, Promotion, Marketing and Distribution). The conclusion of my paper was in fact that SI, which was not only possible, it was imperative to our businessmen, politicians and managers to use all means and actions in a few years we in this world-class.
Today, however, beyond the intellectual exercise and beyond good intentions, I have to refine my expectations.
- only we will be leaders in Promotion, Marketing and Distribution through a clear and unambiguous demonstration of a vocation for long-term sectoral leadership, beyond the immediate interests - business or political.
- This leadership is based on a provocative attitude in all sector actors, as a seed for an approach to innovation. The current approach based on victimhood and uncompromising defense of the status quo (even today, but ten years ago!) We will lose relevance in a rush, and the maturity and increased competition in our target model and enterprise / business, and no alternatives will be doomed to a decline of no return.
- Forums and other events are interesting to enhance the debate, but the solutions here will not make us more competitive in the future. Probably the biggest factor we face failure, is the total absence of leadership visionary, inclusive and enforcement capabilities, both political and sectoral levels.


While this leadership takes shape, the most fertile area for questioning, debate, propose and make incremental changes in attitudes are found in communities and blogs. 2.0 The travel in Spain is today our small and marginal consciousness still sectoral.


To see the full presentation: http://www.slideshare.net/alfcastellano/foro-hosteltur-julio-2008