European Commission defines touristic “megatrends”

19Sep10

The European Commission recently published its study on the competitiveness of the European tourism industry and raised some very interesting points that I would like to summarize in this blog post. With regards to the European goal to remain and expand its position as the most popular touristic destination in the world with approximately 400 million visitors per year, a few very interesting “megatrends” are identified that resemble the tendencies of the industry to further embrace digital media and marketing. It’s not hard to draw conclusion for your business from them.

Megatrend 1: Globalization

Different societies, cultures and economies are increasingly interwoven. Technological changes, further liberalisation in trade of goods and services and the increased mobility of individuals have brought the whole world within reach.

Increase your reach across national borders and your marketing efforts across devices to deliver your marketing message at the right time – whether your (potential) clients are browsing the web on their desktop PC, looking for information on Twitter or using their phone.

Megatrend 2: Demographic change

In 2020 roughly 20% of the European population will be aged over 65. This older population will often have considerable purchasing power and have more free time in which to travel. Alongside the ‘greying’ of the population, the number of one or two person-households will increase in Europe.

Cater for this new demographic, and don’t forget to service new life and family models. The demand for the standard family beach holiday of the last decade has decreased significantly. Target groups have become more diverse, and they want customized solutions for their needs.

Megatrend 3: Access to information

Computer technology, internet, search engines, mobile phones, GPS and digital television profoundly change the way the world communicates, collects information and distributes products and services.

Don’t be afraid of new distribution channels. Use and leverage them to better understand your customers and be there for them – with support or your marketing message – wherever they are. Get a Twitter account, sign up for Foursquare and give your fans the opportunity to ‘like’ and recommend you on Facebook. Besides, take a look at regional social media platforms like Tuenti in Spain or the German StudiVZ. They are not as known for advertising and might deliver more bang for you bucks.

Megatrend 4: Experience economy

In an era where supply is abundant and where it is not always easy to distinguish products and services based on quality, consumers are increasingly looking for other factors on which to base their choices. ‘Soft’ characteristics such as design and meaning, as well as the creative combination of products and services into one ‘total experience’ are gaining importance.

Translated into online marketing this means that in a world of global competition – both menace and opportunity to your business – your ad copy, landing page call-to-action, creative or the presentation of your product can make the difference between lots of sales and many wasted advertising dollars. Get all the details right and create a consistent, satisfying experience for your clients from start to finish.

Megatrend 5: Customization

The focus on ‘me’ as a person will increase. Consumers are seeking tailor-made solutions, fitting their own personality. Society can no longer be divided into homogeneous target groups, but increasingly consists of many different niche groups.

This is why your money might be better spent in digital channels than radio or TV campaigns, where you cannot personalize your messages and products to the various niche groups you are trying to target. Define your audiences and tailor-make strategies, campaigns and website pages to deliver great value to them. And if you send out regular newsletters, please personalize! ‘Dear Jamie’ is ten times better than ‘Dear valued customer’, and don’t pitch offers to clients they have never shown interest in unless you are certain that they can appeal to them.

Megatrend 6: Sustainability

Concerns about climate change, environmental pollution, social welfare are being translated into an increased demand for ecologically, socially and economically responsible consumerism.

Megatrend 7: Health and wellness

The increasingly sedentary lifestyles of many people in developed countries have led to an increased focus on health and well-being as a leisure activity. The boundary between wellness and lifestyle on the one hand, and health care on the other hand, is becoming increasingly blurred.

These two trends are not particularly new, but might be worth having a closer look and strategize about for some hospitality businesses and tour operators.

Megatrend 8: Low cost business models

Increasingly, low cost business models are successfully entering the market, reducing products and services to their most basic components. These low cost business models are finding a place alongside more traditional business models.

Online tour operators are certainly part of this trend. And don’t be afraid of cutting down services if with the ends of being able to give your clients more value for less. Price is often a big factor, especially if times are tough. I have recently read an excellent Conversion Rate Experts study on an online travel company. Surveying their clients, the marketing agency found out that they liked the operator’s site, but were wondering about the missing phone number. The operator now explicitly states on their contact page that “We don’t have expensive call centres, so we can pass on these savings to you—making our holidays incredibly good value!” and turned this potential downside into a plus their customers now refer to in a whole different way.

The Commission reprehends that “many EU tourism enterprises are still too ‘product driven’ rather than ‘consumer driven’.” Don’t fall into the same trap. Get to know your customers and customize your digital marketing efforts, and offers, to fit their needs. This will make you stand out from your competitors, make for happier clients and increase the conversions you achieve. The benefits can then be reinvested.