sigridur kristjansdottir slides
TRANSCRIPT
Technology and sustainable tourismDoes digital capacity of tourism SMEs impact
the sustainability of Icelandic tourism?
Sigríður Ólöf Kristjánsdóttir
Project Manager
Researcherbackground
Project Manager Internet Marketing Travel Agency and
tour operator M.S. Leadership &
Management B.S. Business Diploma Hotel
Management IHTTI
Introduction
Interest in tourism andtechnology
SME support Real situation Support projects Few Icelandic studies Can serve as basis for
measuring change
Research Question
Do Icelandic tourism enterprises have the digital capabilities necessary to reach the enlightened tourist?
HypothesisHypothesis 1: A digital divide exists between tourism businesses in Iceland and their main target group of „the enlightened traveler“
Hypothesis 2: Enterprises with low and very low technological capabilities miss the opportunities offered by the digital economy as the enlightened traveler can not book services directly from their company websites. The tourist then seeks the services of larger intermediaries such as large booking websites or online travel agencies. This leads to high marketing and sales cost for small and medium size enterprises.
Hypothesis 3: The main driver for tourism companies to increase their use of digital technology are demands from guests and the main obstacles is that technical capabilities of owners of the same businesses are limited.
Hypothesis 4: Businesses outside of the capital region are smaller and do not have the technical capabilities and financial resources to take advantage of developing digital technology. This negatively impacts the distribution of tourists to places outside the main circle around the Capital Region as large tour operators and agencies have easier access to guests and influence their choices of destinations through their products.
Hypothesis 5: Digital technology impacts all five forces of Porters Five force analysis and all stages of the tourism value system and has caused permanent changes to the tourism industry.
Aim of the project
Is there a digital divide between Icelandic tourism SME‘s andthe enligtened tourist?
Has digital disruption changed tourism and the competitiveenvironment?
Key findings from interviews
Tourism has changed
Expectations from guests have changed
Digital disruption – changed business environment
SME digital competence
SMEs profit from the use of technology
SME access to knowledge of possibilities
Obstacles
Seeking support and consulting
Questionnaire Results – key findingsOrganisation age, size and structure
Location – Capital Region vs. other regions
Business management culture with regard to ICT
Access to Internet
Attitude towards digtial technology
Usage of technology
Website and social media use
Booking and feedback
Does your company have a website?
90,7%
9,3%
Já
Nei
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Já Nei
Can services be booked and paid for on yourcompany website?
43%
52%
5%
0% 10% 20% 30% 40% 50% 60%
Já Nei Veit ekki /vill ekki svara
What social media platforms does yourcompany use?
67
11
17
6 5
60
22
29
5 6
46
1417
9 10
28
20 18
2429
0
84
73
106
102
0
20
40
60
80
100
120
Facebook Twitter Instagram Pintrest Linkedin
Daglega eða oftar 2-5 sinnum í viku 2-3 sinnum í mánuði Mánaðarlega eða sjaldnar Aldrei
Daily or more often2-5 times a week2-3 times a monthMonthly or less Never
High DigitalAccess SMEs
Upper DigitalAccess SMEs
Medium-LowDigital Access
SMEs
Very lowDigital Access
SMEs
High DigitalAccess
Tourists
Upper DigitalAccess
Tourists
Medium-LowDigital Access
Tourists
Very lowDigital Access
Tourists
Supply
Organisation age, size and structure
Location(Capital region vs.
other)
ICT access
Business/ management
culture
Design/ Usability / Functionality
Content access
Support or serviceaccess
DEMAND
Psychographiccharacteristics
(age, sex, education, ethnicity, etc.)
Socio-economicstatus
Place of residence(e.g. urban vs. rural
areas)
Mental propensity/ Motivation
ICT acceptanceand trust
Instrumental skills
Information skills
Usage
EnvironmentICT infrastucture (HW,SW, connectivity etc); social and economic environment (population, GDP, etc.); presence of service providers; finance and
pricing mechanisms; institutions (role and incentives); training; policy and governance; (incentives vs restrictions and censorship)
EnvironmentICT infrastucture (HW,SW, connectivity etc); social and economic environment (population, GDP, etc.); presence of service providers; finance and
pricing mechanisms; institutions (role and incentives); training; policy and governance; (incentives vs restrictions and censorship)
eTourism marketplace
Traditional marketplace
Tou
rO
per
ato
rsTr
avel
Age
nci
es–
„In
com
ing“
Tou
rO
per
ato
rsTr
avel
Age
nci
es–
„Ou
tco
ing
“
Digitaldivide
Digitaldivide
Digitaldivide
Digitaldivide
Digitaldivide
Digitaldivide
Answears by M&B Framework
4%
17%
10%
44%
1%
6%
5%
52%
57%
25%
25%
22%
88%
17%
41%
25%
40%
20%
71%
6%
56%
3%
1%
24%
11%
6%
0%
22%
0% 20% 40% 60% 80% 100% 120%
Stjórnun og stefna
Viðhorf til stafrænnar tækni
Virkni við umsjón og uppfærslur
Aðgengi að neti
Almenn notkun
Viðhorf til gesta og endurgjafar
Stærð og skipulag
Þrep 1 Þrep 2 Þrep 3 Þrep 4
SMEs categorized by M&B Framework
4%
29%
64%
3%
0% 10% 20% 30% 40% 50% 60% 70%
Þrep 4 Þrep 3 Þrep 2 Þrep 1
Hypothesis 1: Is there a digital divide?
The research findings give a rather clear view regardingthe digital divide. According to the survey results whenanalyzed through Minghetti and Buhalis‘s framework
about 67% of the SME‘s fall into third or fourth categoryof medium to low digital access SME‘s.
Hypothesis 2: Are SME‘s missingopportunities?
When there is a disequilibrium between the digitalcompetence of tourists and the SMEs offering services there is a high likelyhood that tourist with high technical competences
will seek the services of either booking websites or onlinetravel agencies as intermediaries to conclude their business. Another option for the tourist is to search for a destination
where the technical capabilities of the SMEs within the regionare similar to their own. The results support the hypothesis.
Hypothesis 3: Incentives and obstacles
The small size of Icelandic tourism SME‘s prevents themfrom taking advantage of the opportunities technology
might offer them and could help them grow. The growthis simply not fast enough for the owners/managers toput money and effort into building the knowledge and
training necessary.
Hypothesis 4: Size or location?
Researcher concludes that the findings suggest that SMEsoutside the Capital region are smaller and the technical
capabilities of their owners or staff for that reason lacking. Thatagain results in them not being able to reach the enlightened
tourist directly.
Increased business through international booking and sharingwebsites may suggest that SMEs have less direct influence ontourist decision making process. That again may impact tourist
choices of destinations within Iceland.
Conclusion
There is a digital divide
Icelandic tourism SMEs are missing opportunities due to lack of technological knowhow
Main drivers of change – price controls, efficiency and guest demands
Main obstacles of change – knowhow and money
Size is a problem rather than location
Technology impacts all five forces of Porters Five Force Model
Trends, strategy and the enlightened tourist
The enlightened tourist:
- expects to do business through digital channels.
- wants to seek information, experience and share his experiencs
- tourists and SMEs tell stories through short videos on socialmedia.
- bases decisions on recommendations of other tourists
Tourism SMEs neet to think through theirprocesses, information sharing, booking and
payment processes with regard to technology.
Tourism Innovation
Digital technology is the driver of tourism innovation.
New business models, online travel agencies, futuretrends and technology in tourism.
Tourism SMEs need to be aware of how big a roletechnology plays in the shaping of tourism services
and experiences.
Strategy, management and attitude
The attitude of management is key regarding change anddevelopment and that includes the use of technology.
The basis of successful use of technology is long term strategicplanning, need analysis for hardware and software, reorganizing processes, commitment and interest of
management and training at all stages (Buhalis, 2013).
Strategy, vision and values are thebasis of success in any business.
Sustainable tourism and the role of technology
Uses of ICT-based tools/applications for sustainable tourism: Information management
Managing destinations resources, sites and attractionsEnergy consumption
Interpretation – tourist educationCommunity participation
Tourist satisfactionEnabling partnership
Managing tourist flowIdentify market segments – Profiling visitors
Engaging with the tourists