Careers, technology and exit strategies
– three key issues for travel managers
By Judith O’Neill*
THE last six weeks have provided me with a wealth of variation in research, consultation and discussion.
The three main areas of concentration have been:
• Exit strategies for travel agents eg. selling their agencies;
• Technology and the travel and tourism industry; and
• Careers in the travel industry.
All three are connected and it starts from bottom up.
So one last time – why is the travel industry (and I mean travel industry, not to be confused with the tourism industry) not attracting new, young, ambitious people?
And more importantly, why are you personally not seeking them out, employing them, nurturing, fast-track training, infusing them with the practicalities and lastly, transferring your knowledge?
It’s getting much harder to have a successful exit strategy without up and coming buyers!
And what about embracing technology – knowing how to leverage the power and having fun with it at the same time?
It’s up to you. If you need employees (and I know that business is good and the perennial search for consultants is ON) then you need to bring in new people, acknowledge their existing skills (eg. technological computer skills) and pay them well.
Last week I was guest lecturer at the University of Technology Sydney: UTS Business School of Leisure Sport and Tourism on the subject of “Technology and the Tourism Business”, which I changed to “Technology and the Travel Business”.
Students, I was told, generally believe that the days of the bricks and mortar agents are over and that “all” travel arrangements can be made on-line. My brief was to dispel this belief along with talking about GDS, direct booking and online travel agency (OTA) sites.
Fortunately for me, there is very good empirical evidence (particularly through research companies such as PhoCusWright) available that gave me good ammunition.
PhoCusWright’s Traveller Technology Survey 2010 takes a detailed look at consumer behaviour and attitudes toward innovations in travel technology, including new tools, functions, and platforms. Based on a comprehensive survey of online travellers in the US, the report outlines key trends and uncovers some surprises about how today’s travellers use technology to plan, shop and purchase their travel.
Research highlights include:
The internet may be ubiquitous, but it still isn’t everything
• Less than one fourth do all their travel shopping on websites.
User opinions can make or break you
• More than two thirds are at least slightly influenced by traveller-generated ratings when making purchase decisions.
Consumers are ready for mobile, are you?
• 43 per cent of mobile phone users are carrying smartphones, and more than a third of mobile users plan to book travel on their phones in the next year.
The young and the wireless
• Close to half of smartphone users are under 35 years old.
You may have an app for that, but…
• Less than a third of touchscreen smartphone users are carrying iPhones.
Even mum is on Facebook
• Seven in 10 are members of an online social network, and member-ship is stronger among females than males.
• Nearly nine in 10 social network users log on weekly or more often.
A lot of consumers are fans of travel, but not travel companies
• While over half of social network users are “fans” of companies, less than two in 10 are “fans” of travel companies.
Word of mouth gets a megaphone
• Nearly a third were at least somewhat influenced by comments from people in their online social network when making travel purchase decisions.
• Above information sourced from www.phocuswright.com
So, are you using and realising the marketing potential of social networks? Your new young or old savvy employees can help out here. However, you have to make them truly useful for consumers.
Many companies are diligently establishing presences on Facebook, Twitter, and other platforms. Yet the true value of social networks remains unclear, and while common wisdom suggests that they should be tremendous enablers and amplifiers of word of mouth, few consumer companies have unlocked this potential. Maybe you can.
An effective way for a brand to be useful in the context of social networks is to make people who originate a word-of mouth conversation seem important within their own social environment.
Recognition by peers is a powerful motivator, and brands that allow users to gain it deliver real perceived value. When users publicise that recognition, it translates into word of mouth.