TOURISM RETURN ON INSIGHT (ROI). Marketing with Magnetism – from set jetting and “nonline” travel to visual storytelling and the holiday moodboard.

Professor Luiz Moutinho

Foundation Chair of Marketing

Adam Smith Business School,University of Glasgow,

Scotland

Business as unusual: Sustainability, Sustain…..agility, in every possible meaning of the word, is the only way forward.

Attention Economy Share-and-compare economy

Experience Economy Secret economy (underground world of P2P search – Metrics Vacuum)

Conversation economy AGE OF RECOMMENDATION

Application economy Age of engagement Silver economy Speed economy Participation economy The paradox of choice Widget economy Reputation economy Digital economy Reset Economy

Emotion economy

A shift from “telling and selling”

Marketing evolves from selling to citizenship

ME/WE economy

THE WORLD HAS CHANGED

1.0------ 2.0-------- 3.0

• Choice is growing exponentially• Pushing and shouting---------emotionomics and co-creation• Experience rules. Experimentation over message. Storytelling• Portable world. Locationcasting. Liquid media• End of Interruption, Intrusion, Intervention and Insistence (4Is)• SNF. SNW

Market Movements

The patterns we see in major markets will continue. Western countries in general will see flat or gentle growth. In the leisure travel industry, people will keep taking primary holidays but discretionary travel will remain slow.

There may be further cuts in UK but Northern Europe (Benelux) and the Nordic will remain the strongest. What seems certain, however, is that the BRIC countries will continue to see growth.

At one stage everybody was looking at China and now nobody is. China will continue to grow as a major force in travel. The numbers are getting quite serious.

Understated Luxury

The ostentatious design that frequently accompanies a five star experience can be a little overwhelming. Tourists are selecting resorts offering a more discrete experience.

Sense of Location

Forget faceless hotels where you could be anywhere, this is about resorts shaped by local cultures and customs to ensure that authenticity shines through.

Set-jetting

Holidays with the Hollywood sparkle are on the increase, as film fans seek out locations made famous on screen. With the first instalment of the Hobbit dominating the box office, all eyes are on New Zealand – the real Middle Earth.

Content AND Format will be King

The emergence of “nonline” travel. The coming of age of the multi-tasking, multiscreen traveller. While travellers have long been at the forefront of the digital revolution, they have now integrated online and offline in every stage of travel (dreaming, researching, booking, experiencing and sharing). They no longer see a line between online and offline during the five stages of travel and neither do smart travel advertisers.

Google and the portable concierge

More and more people will have a portable concierge in their pocket that helps them research and book things like excursion trips, restaurant reservations, flight changes and so on.

Shaping the future of travel in Asia Pacific

The Me Effect – The fragmentation of the travel market into ever-increasing niches. Travellers across the region will become increasingly distinctive. While travel in Asia Pacific in the past has often been undertaken in large groups through leisure packages sold in bulk, or in large organised business groups, future travellers will be in smaller groups, or alone, and for a much wider range of reasons.

Significant new traveller segments will emerge, such as the female business traveller, the small business traveller and the senior traveller.

Matching this individualism is an increased willingness by travellers to self-manage their travel, a do-it-yourself approach.

By 2030, India, China and Indonesia will dominate travel expenditure in the Asia Pacific region, as the impact of the enormous increase in outbound travellers is seen.

While the main inbound markets such as Singapore, Thailand and Malaysia will remain strong, we expect the highest growth to come from emerging markets, such as China, and from markets that are currently marginal but which will offer huge potential mainly because of their natural resources. In an increasingly resource-constrained world, these will become the new hot-spots for travel- Mongolia, Papua New Guinea and Myanmar among these hot-spots.

The Leapfrog Effect• Technology, infrastructure and behaviours in the Asia

Pacific region will leapfrog ahead of those elsewhere.• Asia will start to leapfrog existing behaviours in the

adoption of newer technologies and infrastructure, giving the traveller new ways to manage the travel experience, creating new behaviours.

• High speed rail (HSR), 4G networks and port upgrade/builds in the region will enable Asia to leapfrog traditional behaviours elsewhere.

The Barbell Effect• Growth particularly at the upper and lower ends of the

travel market.

Brand Space,Audio Branding,Liquid Brands

Molecular BrandsBrand ActivismBrandcasting

Brand Anonymity/Invisibility

Brands’ Role Reversal

BioMarketing,Neuroscience,Biometrics andH-C Interface

Tourism Product Configuration

PlanningDetailability

Tourist Specific Pricing

Stripped Down Tourism Products/Services

Value-orientated hotels, that “will only offer services that matter, those that guests really want and need rather than an array of superfluous services they do not use”…..

OPENED BRANDS – Brands Become Fragmented

The media world today is entirely unlike the media world of yesterday. Today’s media world is not broadcast, it is discovered in fragmented, messy, non-linear, niche conversations. How a brand behaves matters much more than old-fashioned pre-conceptions of identity.

Brand Mise-en-scene

The new mandate for brands is to master the context of the story and the technology that affords our involvement.

Brands are seeking to build platforms which enable them to engage their customers. Increasingly, these platforms get people to be part of the narrative or story, to contribute to it! It is a totally different approach to the traditional advertising strategy based around intervention……

PBM2New BusinessEcoSystems

Strategic AgilityStakeholder - driven

metrics

M3,Media Atomisation,

Lilliput Land,Liquid Media,Fragvergence

Transmedia Planning,Experience Planning,

Gladvertising, GeofencingAudio Advertising,

New Metrics(CPIR, CPEA, CPT, etc)Popup Retail

AndCarbon FootprintRestaurants and

Hotels

EARNED MEDIA• We are increasing seeing earned media

outperform paid media and becoming the main driver of traffic to marketing initiatives.

• Earned Media is earned, which means, it finds and links to something that is valuable.

• If marketing is valuable, then the media channel needs to offer the space for where the content resides.

• No advertising…….• ……the joy of not being sold anything.

SYMPVERTISING

……infusing tourism advertising with a pinch of sympathy that acknowledges the tougher times most consumers are currently experiencing. Small indulgencies to “ease the pain”. Catering to the concerns of tourists. Times of economic uncertainty.

Customer-of-One marketing (where customers are contacted from any media format, a dialogue is initiated and followed through in a compelling way). Now customers are carrying around the answer in their hands. The leading edge players will make progress by using big data, near field communication and more.

High-performance analytics becoming more integral to big data and businesses will be transformed as people begin to understand the value of what they can do with the data they have.

No TWO people will connect to the brand in the same way, for the same reasons, through the same story on via the same

channels…..

Transmedia Storytelling Planning

Liquid Media

• Digitalisation leads to a higher portability of equipment and content.

• Media and content are used more and more independently from location and time.

• The effect: “liquid” media consumption. The era of predictable, large media prime time is over.

• Behavioural Advertising – the use of micro-engagement platforms.

TRANSMEDIA PLANNING

• Extending narratives across media platforms• Narrative continuity across multiple platforms• Creation of original storylines for new platforms• Entertainment content• MeMedia

SEMANTIC ADVERTISING

Semantic Advertising applies semantic technologies to online advertising solutions. The function of these technologies is to semantically analyse every web page in order to properly understand and classify the meaning of a web page and accordingly ensure that the web page contains the most appropriate advertising.

GLADVERTISING

• Advertisements that adapt to our moods (Gladverts)

• Emotion Recognition Software (ERS) – H-C-Interface technology

• A system which can work out a person’s gender, estimate their age, and serve up adverts that suit to that demographic profile (NEC-Japan)

Social Media Scale – Back: Savvy consumers are now in the process of deciding what degree of personal disclosure and social-net activity they can deal with.

Social Vibe: Too many social media updates turn off consumers

• A third of internet users in the U.S. have cut social media ties with a brand because they were receiving too many updates.

• Excessive updates was by far the most common reason to de-friending a brand – above concerns about brand values.

The Endless Pursuit of Meaningless ‘Likes’

“Now is the Wild Wild West in social media”.

The futility of terms such as ‘like’ or ‘fan’. It is a litany of misleading statements: connections, friends, fans and likes all mark very different sets of online behaviours.

People do not understand that a ‘like’ is not an abstract event, but a mechanism of data storage.

To attempt to take the richness and complexity of human relationships and reduce them to a series of streamlined interactions is impossible.

Social media is dead – airline marketing in 2013 all about connected travellers and the real world.

Let’s face it – social media is dead. There are over 200 airlines on Twitter today, for example, and the space is cluttered.

Mere contests and free tickets are no longer enough to drive engagement. Too many airlines are trying to woo travellers in the same old ways. In 2013, social media was predicted to be dead, as we know it.

Airline marketers will need to engage the traveller in a specific manner, often via mobile phones, rather than only on social media.

The bridge between social and real-world relationships will need to be built, as the travellers will be more connected than ever.

So, welcome to 2014, the year of a world in airline marketing beyond likes, tweets, RTs and fans.

BOGUS REVIEWS

As hospitality companies increasingly depend on positive reviews, the market for “promotional reviews” has sprung up to buy and sell fictitious feedback to gain 5-star status.

69% of online reviews did not require hotel stay.

When it comes to making product and service decisions, social media alone is not representative, accurate or deep enough. In fact, some people believe as many as 40% of online hotel reviews are made up.

Many promotional reviews are obtained through help-for-hire sites like Fiverr and Mechanical Turk.

Very few online review sites and virtually no social media platforms require any proof that a reviewer actually visited the hotel or restaurant they are reviewing.

Building real-world relationships, not just social engagement

Real-world relationships can go a long way in building online advocates.

NICHE SOCIAL NETWORKS• Small is the new Big• Social Media is becoming increasingly personalised• Internet users are increasingly seeking connections and

content that filter out the “noise” and focus on online conversations.

2 in 3 mobile device -owning travellers admitted to travel dreaming at least once a month or more!

One of the biggest etourism trends since 2012 was the rise of Solomo, the convergence of social, local and mobile.

REAL-TIME & LAST MINUTE ARE THE NEXT BATTLEFIELD

Whether it is for holiday packages, airfares or hotel and accommodations, more and more searches are now made last minute, which equates in most cases to mobile devices. This is a new reality, where estimates vary between 10-30% of all online bookings. Despite of all the talk, a majority of travel industry brands have not yet embraced the mobile revolution.

Visual Storytelling – a core part of digital marketing for hotels

It is not about the content, it is about the story the content tells about the hotel.

Travellers are not looking for content – per se; they are looking for meaningful stories that help them better understand if the hotel will contribute to the success of their trip.

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A key to successful digital marketing in the future will be visual storytelling.

• Pinterest has more than 10 million users and to date is the fastest growing social network of all time.

• In 2012, Facebook members were uploading more than 300 million photos every single day.

• Flickr houses more than six billion images.

Visual content has to focus on telling each hotel’s unique story, albeit under the umbrella of the brand’s story.

• Compelling stories are not centralised in corporate offices but rather decentralised: known, told and experienced at the hotel property level.

• Stories are not one-way communication; they are told through a many to many approach – contributions of user-generated content.

Stories that break the mould investing in rich media production that is standard and templated, and have well thought out articulated storylines are the ones that are more interesting and have the potential to really set a hotel apart.

We are seeing that the average amount of visual content consumers are interacting with is higher in mobile, than standard web browsers per visit.

Consumers are interacting with 55% more visual content on smartphones and 50% more visual content on tablets than on standard web browsers.

CREATE YOUR OWN HOLIDAY MOODBOARD!

• Marketing with magnetism: think right place, right time, with right technology

• Magnetic marketing – social, local and mobile are lending a new dimension to the way marketers can reach and engage their customers.

• Unlike ‘push’ and ‘pull’ advertising, magnetic marketing is by-product of the social media space that bonds the seller and the buyer together in an intrinsic way to trigger ROE, resulting in significant ROI.

• Magnetic marketing is when the consumer and brand are drawn at the right time and the right place.

• Like a magnet, the customer and brand come together naturally because the mutual attraction is that strong.

• Magnetic marketing can work across all travel verticals including airlines, restaurants and airports.

• It is not until the buyer interacts with the brand on his or her own terms, that magnetic marketing can create the strongest of bonds between the two parties. Flip.to is a social media service for hotels that demonstrates this paradigm by interacting with guests after they have confirmed a reservation for a hotel stay or airline ticket. At the point, the consumer is prompted to share their travel experience with followers on Twitter, Facebook and/or LinkedIn.

• The process commences when Flip.to’s platform interfaces with the hotel’s booking engine and incentivises existing guests to become an extension of the hotel’s marketing force using social channels.

• In the near future, augmented reality will be gaining more traction where its technology will only enhance magnetic marketing practices.

RFID wristbands are so last year – social media – loving hotel connects fingerprints to Facebook

• The Ushuaia Ibiza Hotel allowed its clubbing-crazed guests to interact with Facebook via RFID wristbands.

• Sensors were installed throughout the hotel (pool, bars, restaurants, etc) so that users could swipe their wristband to upload pictures, update status and check-in using Facebook Places.

• Now it installed payment machines around the venue so that users could pay for drinks and other services using their fingertips.

NEW SOCIAL MEDIA INTELLIGENCE TOOLS• To learn the meaning and context of data in a

way that is similar to humans. Called “Biologically inspired intelligence”. Machine Learning, useful for understanding complex, unstructured information.

• Application Programming Interface (API) for building learning machines. Adaptive holosemantic data space with semiotic capabilities. Sense-making capabilities for semantic discovery, lightweight ontologies, knowledge collaboration, sentitment analysis, AI and data mining. “Topic-Mapper”

DATA MYNING• If data is the new resource,

expect consumers to start demanding their share of its value.

• Big Data discussion. The value of customer data to businesses. Now, savvy consumers are reversing the flow: seeking to own and make the most of their lifestyle data, and turning to brands to proactively offer better solutions.

FULL FRONTAL

• Not just transparent, but naked and proud.• Brands must move from “having nothing to hide”, to pro-

actively showing and proving they have nothing to hide.• Total transparency will become a hygiene factor.• Only tourism brands that have the utmost confidence in their

products (and themselves) will be able to go Full Frontal.

The Future is like heaven – everyone exalts is, but no one

wants to go there now……

Tourism Business is a continual dealing with the future.

The future can be anything we want it to be….!