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The Tourism Society

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Tourism is the journal of the Tourism Society.The views expressed inTourism are those of individual authors and not necessarily those of theTourism Society.Whilst unsolicited material is welcomed, neithertransparencies nor unpublished articles can be returned.The Tourism Society cannot be held responsible for any services offeredby advertisers in Tourism. All correspondence must be addressed to theEditor.Tourism is only available to members of the Tourism Society and onsubscription, it is distributed quarterly to 1500 professionals working innational and regional tourist boards, local government, travel agencies,and tour operators, visitor attractions, accommodation and catering,entertainment, information services, guiding, consultancies and educationand training. Britain images © www.britainonview.com

inside front cover 2/6/09 17:12 Page 1

www.tourismsociety.org 1Quarter 2 Issue 140 Summer 2009

EditorialThe Recession:Something to beendured or anopportunityNo two recessions are alike; some haveproduced high inflation, unemployment,industrial unrest, debt and a devalued pound;others low inflation, limited debt and lowinterest rates. The normal response to

inflation is to restrict the money supply by putting up interest rates.Historically, the Bank of England used to call for special deposits from all

banks to reduce market liquidity.As a marketer, what type of recession have we got and what is its impact

on our market? Within tourism it is a mixed bag.The positives are: adevalued pound, in some cases by 28%, making the UK a very attractivedestination, not just flights, but the cost of living, dining and attractions aremore affordable. Therefore we have a huge opportunity to attractinbound visitors. Other factors are: good (some would say over-zealous)security, an innovatively improved product, and the marcoms challenge isincreasingly being made easier.Time to shift our emphasis and persuadethe population to stay home?

However, outbound agencies and operators and will be facing hugeincreases in costs due to the weak pound and its knock-on effect. For myfamily’s trip to Italy, I have found a good deal on the flights but the car hireis up 30% and although the accommodation costs are the same as lastyear, I will be suffering from the exchange loss on the Euro. This said, ourmarketing approach may seek to move from price to quality. People stillwish to travel and many will just take the hit like me. We need to think ofinnovative ways to attract and retain customers this year. The increase inweb use in the tourism market has been huge, but there is much to besaid for letting the professionals find you the best deal. Therefore a seconddifferentiator : compete on service. Finally, if you feel that your income isgoing to drop by 10% or 15%, work to secure the 85% or 90% you mayget.

Chris Lenton DipM, FCIM, FCCA, FCIS | Chairman,TheChartered Institute of Marketing

ContentsThe Impact of the Recession on International Tourism 2Professor Geoffrey Lipman FTS, Christel de Haan Tourism & Travel ResearchInstitute,Victoria University, UNWTO

The Impact of the Recession on Airlines 3Barry Humphreys, Chairman, BATA

Marketing the Capital out of a Crisis 4Carolyn Smith, Director of International Promotion and Visitor Economy,London Development Agency

Funding for Tourism in Wales 6John Walsh-Heron FTS, Managing Director,Tourism Quality Services Ltd,Chairman,Tourism Society Wales

Credit crunch marketing – Sri Lanka uses tried andtested “2for1” tactics 7Sanjika Perera MTS, Director of Tourism UK and Ireland, Sri Lanka TouristBoard

Reacting to a Recession: Tourism Marketing to the USA 8Patrick J. O’Shea FTS CTC, Principle,TMS

Reacting to a Recession: Tourism Marketing to the USA 9Alan Waddell – Chief Operating Officer,Visit USA (UK) Ltd

Small Businesses and the Recession – How are hospitalitySMEs responding? 10Steve Burns MTS, Senior Lecturer – Tourism Management, Liverpool JohnMoores University

Recession Tool Kit for Travel Agents 12Casia Zajac, Head of Communications,ABTA

Recession Busting Marketing Ideas 13Ashley de Safrin MTS, Business Link Adviser, Hospitality and Tourism, BusinessLink in London

Making The Most Of Your Marketing Budget 14Chris Carter MTS, Business Development Executive, Carrier DirectMarketing

The Importance of Improving Skills in a Recession 16Susan Briggs MTS, Director,The Tourism Network

Book Reviews 18

Membership News 20

From the President’s DeskWHAT are we doing about 2012? Threeyears ago the Society’s most prestigiousaward went to the Olympic bid team, andvery well deserved it was. How well I recallthe euphoria of good old Britain winning abid for an international competition – theinternational competition - and the joy oflooking forward to what would be a happyshowcase of British know-how. I took it asread that with the Government in fullsupport we would be out there bangingthe drum and marketing our socks off toget the most out of this massiveinvestment and all its potential for futuretourism.This year is described in theVisitBritain strategic plan as “buildingmomentum” which was always ambitiousgiven the Treasury’s cuts in their budget.From recent conversations with a numberof senior industry figures it is clear thatmomentum is not building fast enough. It

seems to me that there should be aseparate and clearly allocated resource forOlympic promotion; after all, whichbusiness would invest billions in a newventure and not give the marketingdepartment a farthing extra?Mousing idly through the web site I foundthis: “DCMS 2012 Tourism Strategy” statesthat “we need to do all we can to ensurethat overseas visitors receive a welcomesecond to none when they come toBritain.”This follows an observation from asurvey of overseas visitors that ratesBritain poorly for the quality of welcome.Not surprising. For many, the experiencebegins with the rigours of a less thansympathetic entry clearance officer to getan expensive visa, and continues with apretty severe experience with immigrationcontrol at the airport - but these areattributes we share with a number of other

countries.Perhaps theworst is theoutbreak of signsindicating thatyou will bearrested themoment youraise your voicewhen you havebeen treated likecattle. Aren’tefficient serviceand a friendlydemeanour boththe bestprotection and the best way to sell Britain?Someone tell the FCO.

Lord Thurso MP FTS | President,Tourism Society

01 contents 2/6/09 12:53 Page 1

Professor Geoffrey Lipman FTS| UNWTO | Victoria University& The DeHaan Institute

2 [email protected]

The impact of the recession on international tourism

Global tourism

Quarter 2 Issue 140 Summer 2009

Almost half way into 2009 and the bestwe can say about the global outlook for‘travelism’ (tourism and travel) is “more ofthe same”.

Continuing declines in mostinternational markets and some resiliencein domestic and close regional markets isthe order of the day, based on actualresults for the first quarter of the yearand expectations for the second quarterand beyond.

Three key underlying factors remain asthey have been for the past nine monthswhen the global downturn becameevident. Added to this is the depressanteffect of a possible influenza pandemicthat emerged in the last couple ofmonths with a clear potential toadversely affect travel.

First and foremost, the macroeconomicsignals are still unpredictable and weremain in the grip of the worst globalrecession since the 1930s. Globalinstitutional forecasts from the WorldBank, the IMF and the OECD showperiodic downward adjustment, and as ofwriting the consensus seems to be that2009 global economic performance willshow a 1-2% negative growth.

Second, business and consumerconfidence is low and signals from thefinancial and stock markets are at bestmixed and changeable. Each positiveindicator – like a strong performance by aglobal IT company, or big board reactionto the US Bank stress test – eemsmatched by collapse of a carmanufacturer, failure of another airline orcontinued spread of A(H1N1) influenza.Typically, across the entire ‘travelism’industry, we are seeing fewer trips,shorter booking lead times, restrictedstays, closer destinations and lowerexpenditure.

Third, industryperformanceremains poor interms of traffic andeconomics. IATApredicts airline

performancein 2009 at -5.7% andUNWTOcautions that itsforecast based onhistorical data shifts at -2% is more likely to bearound -5% based on ongoing market changesand expectations. Only the cruiseindustry seems to show some strength inpassenger levels, but like other sectorsdiscounting makes yields less buoyant.And of course the drop in fuel pricesfrom their early 2008 peaks is a majorpositive factor for all sectors, butparticularly transport.

The only real positive indicator – but it’sa potentially transformational one – is theroll out of stimulus packages around theworld, based on the exceptional unity ofG20 Members at the April LondonSummit.These are, of course, focused ondomestic demand but there are evidentinternational implications – particularlywhen coupled with open trade anddevelopment support strategies.

It is too early to assess results even atthe overall economic level but there are‘green shoot’ indicators in some keymarkets like China and the US, and thereare also deliberate points of focus ontravel-related areas that are very

promising.For example,

ChineseGovernment targeted travel in

its domestic stimulus package as well asdeclaring its support for the continuedgrowth of outbound travel to helpregional economies; the Thai Governmenttook away visa taxes and the DutchGovernment formally eliminated itsairport departure tax. Sadly, the UKGovernment, with the most outrageousinternational departure tax, announced itsintention to increase it.

At UNWTO there has been asignificant shift in activity to track theseevents in real time and to help developresponse strategies for its Members andother stakeholders through timelyinformation, sharing best practice andidentifying strategic directions. ItsResilience Committee has been meetingregularly through the past year and it isworking on a seven-point Roadmap forRecovery at its Assembly in October. Ajoint meeting with the Tourism Society inLondon on 14th July will be an importantopportunity for reflection and input.

‘Typically, across the entire ‘travelism’industry, we are seeing fewer trips,shorter booking lead times, restrictedstays, closer destinations and lowerexpenditure’

02 2/6/09 16:26 Page 2

Aviation

www.tourismsociety.org

Dr Barry Humphreys |Chairman |British

Air TransportAssociation 3

The main cause for concern for airlinesall over the world last summer was thespiralling cost of jet fuel, whichapproached the dizzying andunprecedented height of over $150 abarrel.

Nearly twelve months on, with theprice currently stabilized at around $50 -$60, things have improved somewhat, butas we enter the summer period this yearthe sharp deterioration in the globaleconomy that started in the autumn ishaving an even worse impact on aviation.

The global recession is undoubtedlyaffecting the aviation industry,compounding the damage done by thehigher oil price last year. In the UK we arealso being hit by a range of other factors,including increased taxation and higherairport and air traffic control charges.And let’s not forget swine flu! This is nota good time to be an airline investor.

The Dutch Government recentlyannounced that it was abandoning its

version of Air Passenger Duty (APD)from 1st July, recognising the damage thistax was doing to the overall economy.This should have been a wake-up call forthe UK Government. Unfortunately, theUK Budget contained no words ofcomfort for the travelling public orairlines – indeed it seems that theratcheting up of APD rates and theintroduction of new geographical bandswill go ahead as planned on 1stNovember, with a further substantialincrease in November 2010.

No other country in the worldoperates such a punitive taxation regimefor air travel, and imposing even higherlevels of tax on international trade andtransport in a time of recession ismadness. Don’t forget as well thattourism is one of the UK’s largest exportindustries. What other industry facessubstantial taxation on its exports?

The price of a visitor visa for the UKincreased to £67 in April, the ‘e-Borders’border management project is stutteringinto life with associated increased costsfor carriers flying into and out of the UK,but with no discernable benefit for themor the travelling public.The trial periodfor ID Cards for airside workers starts inNovember, again with no obvious benefitsfor anyone, and there are even proposalsto charge the maritime and aeronauticalsectors for using radio spectrum,something we use primarily to ensureoperational safety.

The recent weakening of the pound has

meant that the UK has become a moreattractive destination for some, butoutbound tourism is suffering andoperators have been forced to cutcapacity.The downturn in consumerconfidence, the contraction in economicactivity and the reduction in the size ofthe City of London have all led to a fall indemand for airline seats. The net impacthas been heavily negative.

As a response, airlines of all types havecut back on capacity and vigorouslyreduced fares in order to maintain loadfactors. Costs across the board are beingcontrolled as much as possible, includingsignificant staff reductions, wage freezesand the grounding of aircraft. Furtherconsolidation in the industry is expected,continuing a trend apparent before therecession. Unfortunately, there will almostcertainly also be more cases of airlinesfailing before this recession is over.

The impact of the recession issignificantly worse than that whichfollowed 9/11. Aviation in the UK doesnot look to Government for bail-outs,unlike many other industries, but surely itis not unreasonable to expect theGovernment to resist actually makingmatters worse? The green lobby has beenhugely influential with its anti plane andcar rhetoric. It really is time for the UKGovernment to wake up to the damageit is doing and start to eliminate all thesetaxes on air travel and business and startto support one of the country’s mostsuccessful industries.

The impact of the recession on airlines


‘The recent weakening of the pound has meant that the UK has become amore attractive destinationfor some, but outboundtourism is suffering and operators have beenforced to cut capacity’

03 2/6/09 16:27 Page 1

4 [email protected]

The LDA EconomicRecovery Campaign


Peter Drucker once wrote that, since thepurpose of business is to generatecustomers, only two functions do this:marketing and innovation.We’ve taken heed and have ploughedresources into both in the last six monthsin order to support tourism in Londonand to stem any potential downturn.We started by funding a series ofcampaigns from December to March inthe UK and Europe through Visit London– dipping our toe into ‘recessionmarketing’.They worked.The UK campaign, with£150,000 from the London DevelopmentAgency (LDA) and £20,000 fromSuperbreak, returned £1.75m ineconomic benefit.A tester campaign in Europe with£150,000 match funding from Ryanairgenerated a healthy return of £5 million.Researching this campaign we learnt thatour European visitors were not actuallyaware, before they travelled, of the hugeadvantage of the exchange rate. Onarrival, they suddenly found themselvesspending much more than planned! The subsequent campaign from Januaryto March with £300,000 from the LDAand with support funding from Ryanairand Easyjet, contained this exchange ratemessage loud and clear.

‘Only in London’So what about the innovation? Ourresearch also told us that visitors toLondon want to be stimulated by eye-catching opportunities and, particularly,unique experiences.The exchange rate

may be good butsomething quite specialhas to trigger a visit.The result is the ‘Onlyin London’ campaign,with £2 million LDAfunding and developedby Visit London,highlighting the uniqueexperiences that onlyLondon can offer.The campaign broke atthe end of April in theUK with some highlycreative stunts.Weoffered High Tea on thetop of The Monumentand gave ‘Little Ben’ atVictoria Station thechimes of its big brotherfor the day. For the firsttime ever the EveningStandard ran advertisingon the front page of thepaper. The editorialteam gave usconsiderable support inkind.The excellent supportof £100,000 each fromthe four centralboroughs (Westminster, Kensington andChelsea, Camden and the City ofLondon) and extensive partner supportfrom British Airways, Ryanair, HeathrowExpress and Radisson Edwardian, meansthe campaign is running with enablingprice points and motivating offers in theUK, Europe, the USA and Canada.

The full mix of advertising, promotionsand PR is promoting tactical, exchange-rate-driven value offers on transport,hotels and attractions, designed togenerate immediate visits.London businesses can use ‘Only in

London’ as an umbrella for their ownactivities. Indeed, they have been hugelyenthusiastic in sending in ideas forLondon’s unique experiences and VisitLondon is happy to collect 1000 things ifsuggestions keep coming in.Public relations in all markets will usethese to refresh the campaign andpromote London in more depth.

Only in LondonBring out your star qualities with someother famous London experiences …� Recreate the famous Beatles albumcover on Abbey Road

Marketing the capital out of a crisis

‘We offered High Tea on the top of The Monument and gave ‘Little Ben’ at Victoria Station the chimes of its big brother for the day. For the first time ever the Evening Standard ran advertising on the front page of the paper. The editorial team gave us considerable support in kind’

4&5 2/6/09 16:51 Page 2


Carolyn Smith, Director|International Promotion and

Visitor Economy | LondonDevelopment Agency 5Quarter 2 Issue 140 Summer 2009

� See Pete Townsend's smashed guitar atthe V&A’s new Theatre and PerformanceGalleries� Stay in The Dome Suite at HiltonLondon Hyde Park which was used in the1972 Alfred Hitchcock movie "Frenzy"starring Marlene Dietrich� Watch a performance at the famousBrit School in Croydon – whose alumniinclude Amy Winehouse, Adele and KateNash

Measuring the impactBecause of the nature of this campaign –both long term brand building and tactical – and because there are multiple calls to action and no single pointof booking, we need to measure theresults in terms of months rather thanweeks.We also know that the time lag betweenvisitors seeing a piece of promotion andacting upon it is about 3 months in theUK and 6 months overseas.So we expect the first results for the UKin July and for Europe and USA inDecember.Measurement will include response topartner campaigns, traffic tovisitlondon.com, reader response surveys and other sources for eachterritory.Evaluation will follow the standardVisitBritain/National Audit Office endorsedmethodology.Our estimate is that the campaign

will deliver £66 million in incremental spend direct to London’seconomy.

‘Because of thenature of this

campaign –both long termbrand buildingand tactical –and because

there aremultiple calls to

action and nosingle point of

booking, weneed to

measure theresults in terms

of monthsrather than

weeks.’

Funding advertising campaigns is onlypart of our support for Londontourism businesses.Over the next year, the LDA willcontinue to implement a range ofactivities as part of the Mayor’sEconomic Recovery Action Plan, tohelp Londoners find a job, stay inwork and emerge stronger despitethe economic downturn.Business Link in London, which is

wholly funded by the LDA, offers avast range of advice and support.For information seewww.businesslink.gov.uk/london orcall the helpline on 0845 6000787.We also offer workshops on a rangeof subjects including crisismanagement.Our popular free toolkit, Business AsUsual, can be downloaded fromwww.lda.gov.uk/tourismsupport.

The LDA aims to improve the quality of life for allLondoners – working to create jobs, develop skillsand promote economic growth. It is responsible forthe development and promotion of tourism inLondon and majority funds VisitLondon to deliverthe marketing for the capital.

LDA support for tourism

4&5 2/6/09 16:52 Page 3

John Walsh-Heron FTS |Managing Director | TourismQuality Services Ltd |Chairman, Tourism SocietyWales

6 [email protected]

Funding for tourism in Wales

Domestic case study:Wales


Although facing challenges in the currenteconomic climate, the tourism industry inWales stands to gain as visitors in greaternumbers consider a holiday in the UKthis year.

There are opportunities for operatorsto build customer loyalty from newvisitors to Wales who are looking for thebest quality they can afford. A £2.2million Visit Wales UK marketingcampaign aims to position Wales as avalue destination where visitors can findreal value and authentic quality. However,for those sectors for which advancedbookings are the norm, many operatorsare confirming what was expected tohappen this year is indeed the case withour visitors postponing making a decisionon their holiday plans until much nearerthe time so continued marketing effort isvital.

Specific Welsh Assembly Government(WAG) initiatives for the tourism sectorin response to the economic downturninclude:� Two tourism summits;� A pledge by the Minister for Heritage,Alun Ffred Jones AM, to continueworking with the industry to protectbusiness and jobs; and� Putting into place new industry andgovernment partnerships to help resolvekey issues raised by operators in thesummits.VW in conjunction with theWales Tourism Alliance have establishedthree Task And Finish Groups to furtherspecific projects. Go to:http://new.wales.gov.uk/topics/tourism/news/taskandfinish/?lang=en for furtherinformation

Tourism businesses in Wales havetraditionally sought funding from theWales Tourist Board to support productdevelopment.

There has been industry confusion andmisconceptions about where to go forfunding following the Wales TouristBoard’s merger with the Welsh AssemblyGovernment and the subsequentabsorption of Section 4 tourism grantinto the Single Investment Fund (SIF).Thissituation is now improving and since April

2008 Assembly Government grants of£2.8 million have been awarded totourism projects generating £27.6 millionof investment.

With further grant applications thisfigure is expected to exceed £7.4 millionpotentially taking grant support someway over the historical £3.5 millionannually available from the former WalesTourist Board’s Section 4 tourism grantscheme.

For further information about the SingleInvestment Fund see http://www.business-support-wales.gov.uk/business_support/investment/single_investment_fund_sif.aspx ortelephone 03000 6 03000.

There is still a need for holistic thinkingabout tourism from the Welsh AssemblyGovernment departments andcoordination of effort.

However the SIF scheme together with

practical actions to support individualsand businesses in Wales via the FlexibleSupport for Business website (which alsoincludes a dedicated Leading Wales Outof Recession section, seehttp://www.business-support-wales.gov.uk/, or telephone 03000 603000), is to be welcomed, and thetourism industry in Wales is apparentlyoutstripping other industry sectors intaking advantage of what is on offer fromWAG.

Useful links:Visit Wales marketing opportunities,

see:http://new.wales.gov.uk/topics/tourism/marketingopps/?lang=en

Finance Waleswww.financewales.co.uk

Tel: 0800 587 4140 Wales Tourism Alliancewww.wta.org.uk

‘A £2.2 million Visit Wales UK marketing campaign aims toposition Wales as a value destination where visitors can findreal value and authentic quality’

06 2/6/09 16:30 Page 2

Overseas case study: Sri Lanka


Sanjika Perera MTS | Directorof Tourism UK and Ireland| Sri Lanka Tourist Board

7

Like everyone else, the Sri Lanka Tourismindustry had been going through achallenging period since the end of 2008due to the global economic crisisresulting in a drastic drop in tourismarrivals to the country. Sri Lanka also hadtheir own internal challenges of localisedconflict not targeted at tourism and along way away from tourist areas, but stillevoking Foreign Office warningsenhanced in March by demonstrations inthe UK.

In March 2009 Sri Lanka’s industryrepresentatives decided to launch atactical offer to stimulate bookings for thesummer period.This decision was basedon forward bookings data reporting that,while the 2009 winter season lookedpromising, the immediate summer periodlooked very difficult.

Sri Lanka’s travel trade associations (theSri Lanka Association of Inbound TourOperators (SLAITO), the Tourist HotelsAssociation of Sri Lanka (THASL), theCentral Cultural fund (CCF)) togetherwith Sri Lankan Airlines supported the SriLanka Tourism Promotion Bureau (SLTPB)in creating a unique package based on a‘Buy One Get One Free’ offer.

The offer was channelled through thetravel trade only in order to supportthem during this challenging period.Theoffer was for an initial booking periodfrom 01 April to 30 May 2009 for travelup to the end of October. Allparticipating hotels gave the secondperson sharing a room freeaccommodation and the same meal planfree. SLAITOl provided free transport forthe second person and CCF providedone free ticket for every ticket purchasedwhile the SLTPB paid for the secondperson’s ticket to visit key attractionsPinnawala Elephant orphanage andDalada Maligawa in Kandy. Mostimportantly to make the offer a true‘2for1’ the second passenger travelled forfree, only paying for airport taxes, on SriLankan Airlines and / or Qatar Airways.

A five-week £100,000+ advertising and

PR campaign was embarked on to createawareness of the special offer coincidingwith the launch of Sri Lanka Tourism’srebranding.The media mix, reach and thebudgets for the advertising / PR campaignincluded 60% on display advertising innational and regional newspapers, 10%online and 6% on travel trade advertising.

The main call to action used was asplash page on www.srilanka.travel/2for1where each tour operator taking partwas featured. A dedicated 0800 free-phone number was set up giving a shortexplanation of the offer and the optionof 10 operators to choose from includingMercury Direct,Virgin Holidays,Travelbag,Thomas Cook Signature, Kuoni, Bales,Cox & Kings, Dream Ticket, If Only andHayes & Jarvis.

All participating tour operatorspromoted the offer to their database andvia their own communication /distribution channels to complement theSri Lanka Tourism campaign. They wererequested to submit a plan on theirpromotional activity for the ‘2for1’ offer,including emails, direct mail and classified

advertising.The main challenge was ensuring that

everyone was validating their offers forthe same period and to get the campaignoff the ground in less than 2 weeks.Themain concern was that the offer woulddevalue Sri Lanka as a destination.Instead, it was welcomed by the tradeand consumer as an effort by Sri Lankato help them to sell or take a holidayduring difficult economic times.Thestrategic PR campaign was instrumental inachieving this.

The campaign used one simple triedand tested message responding to themarket’s need for ‘value for money’ notonly increasing awareness of Sri Lankabut also generating a substantial numberof direct bookings within the first month.At the end of April over 1,300 calls,25,000 web hits and 3,000 bookings fromthe UK alone had been generated, and asa result the booking period wasextended for a further month up to 30June. Moreover, the PR campaignproduced positive coverage in the SundayTimes, Sunday Mirror, South Wales Echo,Real Travel Magazine, timesonline,walesonline, and in numerous otheronline and trade publications includingSelling Longhaul.

Would we do this again? Absolutely. Agood value proposition communicatedwith a clear concise message to the righttargeted audience with call for action anddelivery channels will give positive resultsfor any product or service in anyeconomic climate.

Credit crunch marketing – Sri Lanka uses tried and tested ‘2 for 1’ tactics


‘This decision was based onforward bookings datareporting that, while the2009 winter season lookedpromising, the immediatesummer period looked verydifficult’

07 2/6/09 12:56 Page 1

Patrick J. O’SheaFTS CTC | Principal | TMS

8 [email protected]

Reacting to a recession:tourism marketing to the USA

Overseas case study: USA


My current involvement in the Travel andTransportation industry is Mergers andAcquisitions. Mostly deals involvingacquisitions of USA companies byEuropean buyers and some of mycomments will reflect that experience.

Being in M&A, originally from the UK,and operating in the USA for 40 years, Ihave developed and had access toconsiderable data on US Tour Operators,and some small cruise companies

Compared to the UK and Europe, theUS industry is fragmented and morecomplex than the mass European market,with few companies able to market tothe entire country, and no megaoperators of the TUI/First Choice orThomas Cook magnitude.The industrygrew up regionally, with operators oftenspecializing in a particular destination,related to a particular emigration group.For example, Scandinavian Americansresiding in Illinois, Minnesota andWisconsin; Italian Americans in Chicagoand Los Angeles; Greek Americans inChicago and New York, etc. Regionalcompanies concentrating on Ireland ‘grewup’ in the Boston, New York, Chicago orLos Angeles areas with clientele are fromthese areas and so on.That fragmentationhas changed over time, but geographicand specialty fragmentation remains a keyto the US market

The large Visiting Friends and Relativesmarket, typical of an immigrant nation,seems more immune from the panicsthat often affect our industry. Also lessaffected are companies with a ‘focus’ (golf,cultural travel or events etc), where travelis an adjunct to the mission itself. Generaltourism is the most affected.

A greater proportion of travellers fallwithin the above parameters than inEurope.We also have mountains, beachesand geographic diversity here in the USA,with many resorts and cruise destinationsin and close to the USA.The movementof large numbers of Northerners toSouthern beaches still happens, but withinthe country. During recessions peoplemay reduce travel budgets in many

different waysTravellers are ‘trading down’ cost-wise

or doing domestic rather internationaltrips. International travel is affected;however, the advantage of a strong dollaris making most overseas destinations 20-30% less expensive than last year.Companies are showing 10-30%slowdowns in booking activity except inthe low price segment and road travel.Bookings are coming in fits and startsconsistent with moves in the stockmarkets. An anomaly of the UScompared with European originatingmarkets is that many older Americans(with the most stock investments) leaveheavy international travel to postretirement years. As Europeans receive 2-3 times the holiday time of their

American counterparts this trend willcontinue.

We were seeing a good recovery fromthe late 2008 and early 2009 bookingslowdown until the latest media mania ofSwine Flu, and once again bookingsstarted slipping. I believe that, as thislatest situation works its way through,there is a possibility for a last-minutebooking surge, although annual sales willbe reduced. Few US operators arevertically integrated, so reducing orincreasing capacity and costs is donerapidly, by reducing payroll, the largestexpense line.

Airlines, cruise lines and hotels are usingtheir full armoury of Frequency Programs,price reductions and other lures toenergize the moribund traveller, andsome are working. Price is a strongmotivator and, combined with theimproved dollar relationship, has madebuying international travel the best deal inyears.The easiest recovery will be in thecruise industry where the lines maydiscount their tickets, but can make upthat revenue reduction on board.

My experience of many other majorrecessions since 1970 is that UScorrections are sharper and deeper thanmost markets, but recoveries happenmore rapidly.

‘Travellers are ‘trading down’ cost-wise or doingdomestic rather international trips.International travel isaffected; however, theadvantage of a strong dollar is making mostoverseas destinations 20-30% less expensive than last year’

08 2/6/09 16:30 Page 2

Overseas case study: USA


Alan Waddell | Chief Operating Officer|

Visit USA (UK) Ltd9

Whilst these are clearly difficult times forall of us involved in travel, equally it isclear that the British are still retaining alively interest in their favourite long haulholiday destination, despite the creditcrunch.Visit USA members are reportingthat US bound travellers are stillcommitting to their holidays Stateside, butthat three distinct trends are emerging.

Firstly, consumers are making enquiriesmuch closer to their planned departuredate than they have previously. Secondly,the number of enquiries is very highcompared to the number of bookings,demonstrating that consumers are reallyshopping around, not necessarily to getthe cheapest deal but to get the bestvalue on offer in the marketplace. Finally,consumers are biding their time beforeactually confirming their booking.

So the first conclusion is that, in theserecessionary times, as far as the UK-USAis concerned, the underlying demand isstill strong and any related marketingmust be governed by the consumer’schanging needs. I.e.Very timely, rifle ratherthan shotgun and an efficient, targetedwebsite is mandatory

In the current economic climate, noneof the above trends is unexpected, but itis good to know that the US still firmlyfeatures in people’s travel plans. Andthere are a number of positive factorsworking in their favour:� Travellers are still researching theirholiday destination.The Visit USA websitehas never been busier and continues tobe massively ahead of 2008 with sitevisitors +350% ahead of last year andbrochure requests expected to beat lastyear's record total of 20,000.� Many Visit USA Tour Operatormembers bought the Dollar currencyneeded for their 2009 programmes in2008, and therefore travellers can stillbenefit from last year's exceptional rates.� Back to reality, the Pound Sterling toUS Dollar exchange rate is now runningat close to $1.50, which is not so verydifferent from the average exchange ratesof the past decade, a period which saw

UK travellers to the USA grow from 3.8million in 2002 to 4.6 million in 2008. ie.It is only the last 2 years that saw anabove average exchange rate � As can be expected, US suppliers arenot just sitting back waiting for therecession to go away.They are reactingvery positively to the situation by creatingtravel bargains and added value offers toensure that travellers stay with their UStravel plans. Airlines, hotels, car rental,attractions etc have all been sharpeningtheir pencils and travellers will reallybenefit.� Major US holiday destinations likeFlorida, New York and Las Vegas haveembarked upon expanded promotionalprogrammes to attract UK travellers totheir cities and beaches. And specifically,California identified two main targetmarkets to focus their media activity onin 2009 – the Cultured Explorer (ABC125-45) – and the Silver Voyager (ABC145+) and then designed their marketingto focus on these two key groups, havingidentified first of all that these groups areamongst the most recession-proof in the

UK.This multi-layered and integratedstrategy also helped impart their valuemessaging through mass awareness of TVand press advertising.� In the USA, work continues apace toget the Travel Promotion Act throughCongress and which, if enacted, shouldeventually result in a substantial increasein marketing activities to attract visitorsto the USA.

ConclusionClearly the USA continues to be high onthe list of consumers’ long haul holidaydestinations – despite the currenteconomic backdrop. By a very widemargin, the USA is still the UK traveller’sfavourite long haul holiday destination,with a holiday to suit every taste andbudget – which is why UK travellers willcontinue to return there in their millionsevery year – including 2009. During arecession, the trick is to make sure thatthe supporting marketing is impactful,economic and matches the needs of themarket, i.e. not a lot different from non-recessionary marketing!

Reacting to a recession … tourismmarketing to the USA


‘’By a very widemargin, the USAis still the UKtraveller’sfavourite longhaul holidaydestination, witha holiday to suitevery taste andbudget – which iswhy UK travellerswill continue toreturn there intheir millionsevery year –including 2009’

09 2/6/09 16:31 Page 1

10 [email protected]

How are hospitality SMEs responding?

Small businessesand the recession


It is 15 years since Stanley Plog wroteabout how our ‘extraordinary industry’faced superordinary problems. In the faceof almost continuous growth ininternational travel, many destinationswere beginning to show signs of strain inaccommodating more tourists.

With increases in tourism had comeproblems, problems in Plog’s view thatwere “deep, severe and difficult toreverse”.

Plog warned that the tourism industrywas unsustainable, and there was neededa common action to reverse the effectsof physical deterioration of destinations,environmental change and impacts onlocal cultures.

However, I believe that it is now, in2009, that our industry faces the mostsuperordinary problems that it has everfaced, “unchartered waters” as theTourism Society President put it in a

previous issue of Tourism.Students of tourism will recognise what

all of us who work in the industry alreadyknow: that tourism is embedded in anexterior world of social, political,economic, and technological change. Andthere lies the rub.Whilst global changes,in technology for example, may providecatalysts for travel, other externalities(wars etc) may do the exact opposite.The current crisis is highlighting, in myview, even more clearly that tourism isone of the most fragile industries there is.I chose the word fragile carefully becausedespite periodic shocks to the tourismsystem, whether at local, national orinternational level, tourism has alwaysseemed to manage to recover. However,who would have thought even two yearsago that the sub-prime mortgage sectorwould have such a devastating effect onour industry in 2009?

When starting to write this piece, Idecided to look through my olddocuments and industry articles back asfar as the early 1990s, including copies ofTourism. I know that sounds really sad,but some of us academics tend to have ahabit of keeping old books and articles,sometimes for posterity and sometimesafraid (as Sod’s Law tells us) that if wethrow something away then we will needit the following week.

From a review of my tourism industrypublications over the last 15 years or so,downturns have come and gone.However, two things particularly appearto stick out regarding the currentscenario.The first is the severity of theeffects across our industry, and second isthe speed at which the downturn hastaken affect.

What is also apparent is a need for ananswer to the question ‘can we doanything about this?’ Some commentatorsappear to suggest that a weak pound andinternational events may bolster numbersby attracting more overseas visitors tothe UK this year. However, as our industryis made up of mostly small and mediumenterprises (SMEs), how are the smallerorganisations faring and, moreimportantly, how are they responding tocurrent trading conditions?

I have recently undertaken a survey ofhospitality SMEs in the North of England.These included some small chain andnon-chain hotels, a number ororganisations in the catering sector, and across section of leisure facilities andtourist attractions.Whilst it was only arelatively small sample, and not intendedto be a large empirical study, it does giveus a gauge on current responses of smallhospitality companies to the recession. Ihave summarised some of the mainfindings.

General feeling abouttrading conditions

This research found most respondentsin a pessimistic mood. Across all sectorswas evidence of reducing costs. Somerespondents reported that they had

10&11 2/6/09 16:53 Page 2


Steve Burns MTS | SeniorLecturer | Tourism

Management, Liverpool | John Moores University 11Quarter 2 Issue 140 Summer 2009

already introduced cost-savings during thelatter parts of 2008 given that therecession was forecast. Others reportedthat they had deferred upgrading orrefurbishment plans.There weredisagreements in terms of staffing – somerespondents had recently (in the lastmonth) made redundancies, whereasothers hadn’t; one respondent arguingthat “we are already geared up to beingvery lean”. Some were not replacing staffwhen they leave, and are trying tointroduce more job flexibility.There weresome signs of optimism, even customer‘loyalty’. One respondent reported thattheir hotel had noticed more businesscustomers having dinner in the hotelrestaurant, rather than venturing out intothe city to eat. “If that change is replicatedacross the whole year, then that willtranslate into a very helpful financial boostfor us”.

Response strategiesHowever, it is in the response strategies

that this study was particularly interested.Despite the variation in type of hospitalityorganisation consulted, there appears tobe some consistency in the way thatorganisations are responding to thechallenge. I have categorised them intofour main areas:� Maintaining customer service.Therewas a resounding feeling that if smallbusinesses are to survive current tradingconditions then customer service must bemaintained. One manager appeared to

sum up feeling when they replied, “Wemust maintain and even try to improveour standards if we can”.� Improving effectiveness of sales andmarketing. It was clearly articulated thatmost respondents don’t have the size ofmarketing budgets of the larger brands.However, many appear to be going onthe offensive i.e. looking to market morebut using cheaper methods such as mail-shots and editorials in local newspapersto try to generate new business. A largenumber appear to be utilising technologymore, particularly the Internet, to try togenerate new business. One companyreported new business after signing upfor Google Maps and others reportednew business after offers were placed onwebsites. One respondent reported anumber of new customers (for meals)after placing a voucher for a free cup ofcoffee on their website.� Re-adjusting their target segments. Itappears that pullbacks in both businessand leisure spend are creating a need forthe smaller, more local organisations tore-adjust.With the drop in internationaltourists during quarter one of 2009, thesmaller businesses appear to be acceptingthat attracting the corporate andinternational tourist markets will bedifficult in 2009. A number oforganisations are responding by switchingmarketing strategies. For example, anumber of organisations are moreactively targeting local markets in twoways: one is introducing a more proactive

Internet-based marketing strategy (seeabove), and the second is throughmarketing diversity i.e. adjusting theproduct offer towards new local markets.� Greater focus on customer loyalty.Whilst organisations appear to beadjusting their strategies towards localmarkets, the strongest emphasis fromrespondents was a clear determination toboth retain existing customers andincentivise new customer loyalty.A number of respondents reportedfurther development in their customerloyalty schemes. For example, oneorganisation has developed an e-flyerparticularly targeted towards recent newcustomers, and giving a “large discount”for repeat business in the following 6months.

ConclusionWhilst only intended to be a snapshot

of the current fortunes of smallhospitality organisations, a picture ofchange is emerging.The respondents inthis study appear to be placing a clearemphasis on the importance of customerloyalty in their response to changingmarket conditions.

Facing a prediction of reduced businessand leisure travel in the UK during 2009,there is movement in the strategies ofthe smaller hospitality organisationstowards developing Internet-driven localbusiness and greater adoption, ordevelopment, of customer loyaltyprogrammes.

‘ The current crisis is highlighting, in my view, even more clearly that tourism isone of the most fragile industries there is. I chose the word fragile carefullybecause despite periodic shocks to the tourism system, whether at local,national or international level, tourism has always seemed to manage to recover’

10&11 2/6/09 16:53 Page 3

Marketing out of a recession

12 [email protected] 2 Issue 140 Summer 2009

ABTA’s advice

2008 was one of the tougher yearsour industry has had to deal with. Fuelcosts at a record high of 150 dollars abarrel, wildly fluctuating exchange ratesleading to surcharging and culminatingwith the collapse of XL, the biggest travelcompany failure for almost 20 years.Thisfailure resulted in the largest repatriationin the CAA’s history and has had aprofoundly negative impact on the AirTravel Trust Fund.

On top of all this, newspaper headlineswere dominated by the credit crunch, sowe all hoped 2009 would bring bettertimes. However, as we all know theeconomic situation has deteriorateddrastically and we are living through theworst recession since the end of theSecond World War.

In difficult times trade associations mustdo everything in their power to assisttheir members. Earlier in the year ABTAproduced its Recession Toolkit, an onlineguide to surviving the recession.Thetoolkit brings together all the servicesthat ABTA offers to its members that canhave a positive impact on businessperformance.The toolkit covers six keyareas: recognising key risks, keeping staffmotivated, adding value, saving money,other sources of advice and help and

marketing effectively.ABTA members all have access to one

massive marketing advantage over theircompetitors – the ABTA logo – abusiness superbrand and by far the bestrecognised travel protection symbol.Witha 74% recognition factor the logo is keyand widespread use of it essential. Apartfrom their own websites where ABTAprovides a DIY guide to Search EngineOptimisation, ABTA members can postdetails of their own specialisations andcountries they sell on www.abta.com.Thisreceives tens of thousands of uniquevisitors each month and any member thatwants to publicise a particular offer canpost these details on the home page ofthe site.

When done well, Public Relations canprovide free media coverage and bemuch more cost effective thanadvertising. A good example of PR at itsbest was the recent Tourism Queenslandcampaign about the search for acandidate for the best job in the worldand is estimated to have obtainedcoverage that would have costs millionsto provide by advertising alone. Knowingwhat the media want and how toprovide it to your advantage is the secretto success. ABTA has also produced a PR

toolkit which unravels the mysteries ofthe PR world and explains how to makethe media your allies. How to give goodinterviews, draft a professional pressrelease and, just as importantly, what notto do, are all explained in detail.

The toolkit also points out sources offree marketing advice such as the RoyalMail and the Direct MarketingAssociation, and how to access anextremely valuable and generally freesource of expert advice and marketingresources, your local college or university.

The Recession toolkit has alreadyobtained favourable feedback from ABTAmembers, one commenting at a recentABTA seminar that it had given her freshinsights and useful advice after she hadalready been through three recessionsover 30 years in the industry.

ABTA is continually investigating newways in which it can help members’businesses, with a raft of services on offerand access to years of experience andexpertise contained in our new LondonBridge offices.We are confident thatABTA members are in a better positionthan their competitors to get through thecurrent economic crisis and will doeverything in our power to help ensurethat this remains the case.

Casia Zajac | Head of Communications | ABTA

‘A good example ofPR at its best was therecent TourismQueensland campaignabout the search for acandidate for the bestjob in the world and isestimated to haveobtained coveragethat would have costsmillions to provide byadvertising alone’

12 2/6/09 16:33 Page 2

Business Link


Ashley de Safrin MTS |Business Link Adviser |

Hospitality and Tourism |Business Link in London 13

Despite the general gloom there’s stillplenty of business out there to win. It’svery much a question of attitude, selfbelief and an active approach.So what’s the secret of survival in thiseconomic climate? Quality Marketing.

Marketing doesn’t have to be eithercomplicated or expensive, but in arecession one has to do lots of it, focusedand targeted at your niche. If you do not,it will be your competitors who will besweeping up your customers.

Prepare a new marketing plan and takethe time to make the right strategicdecisions for your business.Take anhonest and careful look at your strengthsand weaknesses from a marketingperspective.What is the client experiencewhen they arrive? What will be goodand what will be bad?

Analyse each possible interaction withyour client from the first contact to theend of the holiday or experience. Eachone of those has the ability to enhancethe client’s experience of your businessor the opposite. Attention to detail iscritical and great companies do it well.

Look at the opportunities and threats.Are there new markets you could beexploiting or ones previously abandonedbut are now worth trying? Do you reallyknow the profile and requirements ofyour client base? Don’t try to pleaseeveryone. If you’re a smaller business it’sfar better to develop a product in aspecialist niche market rather thancompeting with the big players on price.

Prepare a budget against which you canbe measured, timed and, above all,regularly monitored. Build in someflexibility. Monitor your marketing activity,and if it’s not working change it. Alwayskeep in mind your strategic aims. Forexample, if you’re targeting high quality

don’t mix this with budget or discountedbusiness.

So here are a few thoughts:� If you are a business owner, rememberthe passion that made you start up yourbusiness in the first place.� Make sure your product is up toscratch.� Update the customer proposition forthe sophisticated but poor ‘Noughties’and a new generation of buyers.� Remember your existing client base.� Go back to your customer recordsand search out those who haven’t usedyour services for over a year. Give them akiller offer to bring them back into thefold.� Put together attractive but notgiveaway deals to attract new people.� Use the technology available to you.� Use the social websites tocommunicate with your youngercustomers. And keep up to date with the

latest social websites by speaking toyoungsters and see what they use.� Offer the best service going becauseservice is more important than ever andwill often make the difference betweensuccess and failure when things are hard.� Don’t offer blanket discounts as it willtake years to get back to previous pricinglevels.� Offer short term deals and targetthem carefully.� Rather than discount, add value:upgrade rather than discount.� Think what new services you could beoffering.� Partner with other organisations tooffer packages which benefit both.� Use influencers: people such as travelwriters, lawyers and accountants youwork with.� Always think of the PR storyopportunities.� Network extensively. There are lots ofevents so get yourself to some of theseand talk to as many people as possible.Not everyone feels comfortable doingthis but if there is someone outgoing inyour organisation use them.There is always something positivecoming out of a downturn. Aim to thrivenot just survive.

Recession busting marketing ideas


‘Don’t try to please everyone. If you’re a smaller business it’s far better to develop a productin a specialist niche market rather than competingwith the big players on price’

13 2/6/09 16:34 Page 1


Making the most of your marketing budget

MarketingStrategy


In these difficult and unpredictable eco-nomic times, the importance of ensuringbest value for money and accountabilityhas never been more important for anybusiness.

Marketing expenditure is often an earlycasualty of recessionary times, especiallywhere its effectiveness is not measuredand the returns unknown. It is crucial thatbusinesses have set in place the proce-dures to measure results from marketingand that these results are used toimprove future productivity.

Plan the work and work the plan First things first:What is your strategy?

Have you set clear goals for your busi-ness, and targets for your marketing activ-ity? Do you know who your customersare and how to reach them? Are theremarket segments appropriate to yourbusiness but which you aren’t addressing?Are your existing customers happy?Could you make improvements to yourservice or product? Are you exploitingthose qualities which make you stand outfrom the crowd?

A marketing strategy should focus onfive key elements:� overall objectives� understanding your product and itsposition in the marketplace� market segmentation – understandingyour customers� creating a mix of marketing activity toreach those segments� create a business plan with costingsand timescales

The key building block of any strategymust be understanding who your cus-

tomers are. Accurate customer informa-tion will enable you to reach them andeven to source more like them. Profilingthe customer database can be the key tomore efficient and effective marketingcampaigns.

Accurate profiling techniques reducewastage in direct mail campaigns andallow tailored messages to hit target audi-ences.

A well organised customer database isfundamental to successful marketing. Itwill allow you to talk to your customers,secure repeat business, generate recom-mended business and implementresearch.

Identifying the most efficient ways toreach your target markets is crucial inmaking a limited budget work hard. Aswe see a fragmentation of traditionalmedia and the emergence of new mediaand social networking there are a bewil-dering number of options.

Research and evaluation becomeincreasingly vital in order to achievemedia effectiveness. Market researchincluding perception research and cus-tomer satisfaction surveys will help deter-mine the appropriate messages to targetspecific audiences.

Thorough measurement of media costper enquirer combined with conversionresearch will help to inform which mediaproduces the best results.

It is estimated that 80% of visitors dosome pre-trip research on-line. However,in our experience, demand for printedbrochures has declined only marginallyover recent years and print continues tobe an important part of the marketingarmoury, whether the motivation is forsharing, reassurance or convenience.

Found on the web Any tourism company’s web presence isnow crucial to survival and increasinglythe battle is for search engine ranking –fighting it out with the big multinationalplayers is tough but astute and strategicactivity can produce good results, particu-larly in niche markets. Search engine opti-misation is now one of the core activitiesof any web-orientated operator.

Using the Internet to reach your cus-tomers is now established as a key tool inalmost every marketing campaign.

But, in a world that contains over 30billion web pages, how can you be surethat people are finding your website andthat your message is getting through?

The answer to a large extent lieswith two very different yet inextricablylinked factors: your website’s ability toattract top search engine listings and itsability to convert those visitors into cus-tomers.

With over 90% of internet users findingwebsites through search engines, promi-nence on the leading search engines isabsolutely essential to the success of yourweb site. Once achieved, it is critical thatthe content of your website provides theinformation your visitors are looking for ;without this, it is clear that even the mostbeautifully designed website is a waste ofbudget if it doesn’t generate enquiries.

By implementing intelligent keywordchoices, search engines appear to beresponding to the flexibility and diversityof content that smaller organisations canprovide enabling them to compete suc-cessfully against larger budgets.

Of course, generating more enquiriesand improving sales conversion not onlyrequires considered website design andprofessional Search Engine Marketing. Italso requires an understanding of yourbusiness and your market.

Choose a supplier who will take thetime to get to know you and your busi-ness with a view to building a successfullong term relationship.

‘A well organised customer database is fundamental to successful marketing. It will allowyou to talk to your customers, secure repeat

business, generate recommended business and implement research’

14&15 2/6/09 16:35 Page 2


Chris Carter MTS | BusinessDevelopment Executive |Carrier Direct Marketing

15Quarter 2 Issue 140 Summer 2009

Hit the in-tray Email marketing is a well established, lowcost, direct and environmentally friendlyway to communicate with your clients,promote your organisation and drive visi-tors to your web site.

Almost uniquely, email marketing allowsyou to measure the success of your cam-paigns instantly through real-time statisti-cal data. Over time, it is the analysis ofthis data that will help you deliver consis-tently relevant and targeted content toyour audience.

Critically, when preparing copy and cre-ative for your campaigns, approach this asif you were one of your customers.Whenyour email arrives in their inbox they areunlikely to read every word or marvel atits design. Instead, they will (subconscious-ly) ask themselves 3 very important ques-tions:1.Who is this from?2.What’s in it for me?3.What do I do next?

If your e-mailer successfully answersthese questions and stimulates a responseyou can be sure of an impressive returnon your investment.

With inboxes busier than ever, ensureyou have a web partner with comprehen-sive skills and talent to deliver effectiveand dynamic campaigns that have theedge over your competitors.

Get social A proactive approach to social network-ing can be highly productive and is beingadopted by a growing number of tourismbusinesses. Social networking can’t be

ignored, it is now part of the fabric of life.Facebook alone has 200m users world-wide and some argue that Tripadvisor isbecoming more powerful than official rat-ing schemes.

Tourism operators now have theopportunity to participate within theglobal social networking sites, as well asthe niche, special interest sites, to createinterest and foster positive vibes for theirown businesses. It will bring viewers clos-er to your company or destination, forexample by allowing ‘leaders’ or ‘experts’to get close to the audience. Businessescan also locate and communicate withclusters and learn about visitor experi-ences.

However, it is important to rememberthat trust comes from truth in these envi-ronments and overt manipulation couldseriously backfire. Communications mustbe conducted openly and honestly.

Social networking activity doesn’t comefor free. It can require high levels of timeinput in research and participation, but itcan be a very cost-effective means ofgenerating new customers and develop-ing customer loyalty and recommenda-tion.

And finallyThe recession has brought extra pres-sures and demands to most tourism busi-

nesses. In a world where everything ischanging so quickly it’s vital to keep apacewith the new marketing opportunitiesthat are emerging.

Our conclusion is that marketingstrength lies in having a clear directionand objectives for your business and tocreate a mix of marketing campaignsbased on sound research and evaluation.

The traditional methods of print andprinted media advertising should sitalongside the development of on-linemarketing.

The core branding and positioningshould be consistent, targeting of identi-fied segments should be disciplined andall activity evaluated.

Good luck!

This article was written by Chris Carter ofCarrier Direct Marketing and Ian Parkington

of Carter Communication, both companieswithin The Carrier Group.Take a look at their websites or follow

links from www.thecarriergroup.co.uk

Carrier Direct Marketing are new corporatesponsors of the Tourism Society

‘Tourism operators now have the opportunity to participatewithin the global social networking sites, as well as the niche,special interest sites, to create interest and foster positivevibes for their own businesses’

14&15 2/6/09 16:35 Page 3

Susan Briggs MTS |Director | The Tourism Network


The importance of skills and training in a recession

Professional Development


Is there room for improvement in the UKtourism industry? Yes.

Can training improve professionalism?Yes.

Does the recession make it even moreimportant to develop the skills of thoseworking in the industry? Yes, in theory.Recessions can be times of greatopportunity. Good businesses tend tosurvive. Bad ones fail. Innovations andgood people can make all the difference.

So far, so good. But what’s actuallyhappening?

Many of the official training and skillsdevelopment agencies have pounced onthe recession as an opportunity toconvince businesses to invest in training inorder to survive. Bad idea.

The word “invest” implies spending cash– just when there’s little of it around.“Training” implies something a bitnebulous and without immediate return –exactly at the time when business wantinstant results. So the theory isn’tworking.The language and attitude are allwrong. And this approach makes a basicassumption – that there is plenty ofappropriate training out there.

The Tourism Network wascommissioned to run a generouslyfunded project aimed at encouragingmore businesses to take up training. Itpaid well, but the job satisfaction waszero.

We started full of enthusiasm, armedwith an excellent database of peoplewho we knew wanted training andnaively imagined it would be a simple jobto tell them what was available and sendthem on their way. Wrong. An army ofresearchers tried to unearth everytourism and hospitality-related shortcourse, workshop and master class inexistence.The ones relating to legislationsuch as Health and Safety were easy tofind. But look for anything on a topic that

businesses had actually asked for –marketing, sales training, CRM,management skills, search engineoptimisation etc – and you won’t exactlybe overwhelmed by the choice.

Some national training companies offerfairly standard one day courses foraround £450+ per day per person.Business Link offer some free courses.They are rarely tourism specific, and tendto be quite general – along the lines of“internet marketing is important” ratherthan “here’s how to do it”. Business Linkis improving but history and reputationaren’t on its side.

So the problem isn’t that businessesdon’t want training.They do! The problemis that the sort of training they wantdoesn’t necessarily exist. How easy is itfor accommodation providers to findpractical, reasonably-priced training thatslots appropriately into their window oftime between mid morning check-outand late afternoon check-in? Pretty muchimpossible. In a recession it becomeseven more important for them to findtraining that fits around the business theydo have.

There’s a glut of ‘initiatives’ to get us to‘up-skill’ but a dearth of practical, relevantand reasonably priced training. I’ve rarelymet a business owner who talks abouttheir need to up-skill.Their focus is simple– they want more sales and bigger

profits.That is their starting point fordoing anything.

We need to give much greater thoughtto what we say and how.We need moreappropriate courses and approaches totraining.We need to provide whatbusinesses actually want. A recession is achance for change for better but it has tobe handled in the right way.

There are always calls from think tanksthat we need to improve the visitorwelcome.This is true in some areas butothers are already doing well. Instead ofwondering why no one hears the call, weneed to look where the welcome isstrong (one of the words mostcommonly used to describe Yorkshire in ayear-long regional visitor survey is“welcoming”, another is “friendly”), andfind out what they’re doing right.

We also need to think what willencourage businesses to improvecustomer care. Many think they’re eitheralready good at it or they don’t care sothey don’t attend the courses (even ifthey are actually offered at a suitable timeand price).

We need to re-position what is on offerso it appeals to more businesses. “10ways to increase your profits” is so muchmore compelling than “improve yourcustomer care” but the content doesn’tneed to be that different.

‘ We need to give much greater thought to what we say and how.We need more appropriate courses and approaches to training.We need to provide what businesses actually want. A recession is a chance for change for better but it has to be handled in the right way.’

16 2/6/09 16:36 Page 2

17 consumer ad 2/6/09 16:37 Page 1


Book reviews

Operations Management in theTravel IndustryEdited by Peter RobinsonCABI, 2009ISBN: 978 1 84593 503 0298 pages

The book provides agood overviewof OperationsManagement inthe TravelIndustry covering keyareas includingtheory,concepts,frameworksand case stud-ies. As thetravel industryis very frag-mented, thereare many aspects to consider when looking atthe management of operations within it such aslogistics, marketing, strategy, staffing, finances,sustainability and culture, to name but a few.These key elements that comprise the complexrelationships of all areas are mapped out in thisbook, giving an insight into the travel industryand providing a good grounding for studentsstudying and entering employment in this sec-tor. I think the book is a good source for thoseseeking knowledge about the workings of oper-ations management The chapters are relevant to the subject andthe structure is laid out well, with a good sum-mary at the beginning explaining what thechapter will cover, guiding the reader througheach topic, with practical information as well asdiscussion questions and guides for furtherstudy.Each chapter features case studies, which pro-vide thought and discussion.However, some of the case studies would ben-efit from more detail and several of the illustra-tions of models could be made a little clearer.As the travel industry is so fragmented andrapidly changing, with many small to mediumsize businesses emerging and outnumbering thelarger ones, I would like to have seen somemore references made to the smaller business-es, as not all aspects of the OperationsManagement discussed in this book are signifi-cant to them.However, this is a useful book that gives a very good overview of what OperationsManagement entails and can used by students as well as people working in the industry.

Kasia Chmielewska MTS | Director,Pure Alpine Tennis

& Ski Holidays

Entrepreneurship & SmallBusiness Management D. Lee-Ross and C. LashleyButterworth Heinemann9780750684484294 pages

I have alwaysbeen rather per-plexed why areassuch as entrepre-neurship andsmall businessmanagementhave not beenexplored more intourism litera-ture. After all, thetourism and hos-pitality industry is mostly made up ofsmall firms. In some countries the ratio isvery high; for example, this book arguesthat in the UK 98.5% of all hotels andrestaurants employ fewer than 50 people.This volume has arrived at an opportunemoment.The book consists of 11 chap-ters.The tone is set in the first chapter,which provides a firm foundation for thebook through a conceptual discussion ofkey themes such as definitions of smallfirms, and the relationship between entre-preneurial activity and the economy. Onepoint: some of the examples used areplainly for an English audience, for exam-ple Del Boy Trotter and Arthur Daley, andI wonder if these examples may be loston an overseas audience.The book then embarks on a further 10chapters which quite comprehensivelyexplore this subject. I particularly likedthe exploration of such themes as ‘indige-nous and ethnic entrepreneurship: a cul-tural perspective’ (chapter two), and ‘cre-ativity’ (chapter four).The problem withdealing with this topic is what to leaveout. It is clear that this book is targeted atboth an academic and practitioner audi-ence.The introductory chapter identifiesthe aim of the book as “providing theknowledge and skills required to start asmall business”. I therefore would like tohave seen more exploration, for the bud-ding entrepreneur, of both the financialand human resource intricacies of thesmall business.The incorporation of ‘reflective activities’is a nice touch, as is reference to suchgreat entrepreneurial luminaries such asBranson, Hilton and Ray Croc.This is agood book and would be a welcomeaddition to University LRCs.

Steve Burns MTS | Senior Lecturer inTourism and Leisure | Liverpool John

Moores University

Nation Branding –Concepts, Issues, PracticeEdited by Keith DinnieButterworth-Heinemann 2008 ISBN 978-0-7506-8349-4264 pages

“NationBranding” is atimely arrival onthe scene.In the currentcontext of economicupheaval, withconcepts such asglobalisationbeing scrutinised,allied with a feeling – or need – toreturn to simple, sustainable values, abook about nation branding can take onadded importance.It is worth noting that the majority ofthe 29 contributors assert that nationbranding is more likely to be successfulwhen undertaken across many – or all –sectors of the economy, thereby helpingthe country’s image appeal to investors,students, workers and cultural audiencesas well as visitors.This holistic approach,whilst logical, means that many groups of(domestic) stakeholders need to buy into nation branding which in itself can befraught with issues of self-interest andmay lead to the watering-down of anysuggested ‘proposition’.It takes some time to get used to thisbook’s structure. Each chapter startswith a short case study, usually from onespecific country, and is followed by anarticle from a practitioner and one froman academic on various aspects of nationbranding.These include references to theleading case study but also othersthroughout the book. Once the reader isused to this – and perhaps the layoutcould be clearer – it is an easier read.The list of contributors is impressive andmany other well-known marketing andcommunication experts are citedthroughout.The case studies are drawnfrom across the globe and it is particu-larly interesting to compare theapproaches of countries as diverse asEgypt, Switzerland and Japan as well asmore heralded examples such as NewZealand, Spain and Scotland.A fascinating and thought-provoking readfor branding and marketing practitioners,but perhaps above all for all of us whocare about how our own countries areportrayed and perceived!

Jeremy Brinkworth FTS | Head ofIndustry Services,VisitEngland

18 2/6/09 16:38 Page 2


Notice of Annual General Meeting 2009

TOURISM SOCIETY & UNWTO DEBATE

travel and tourism: stimulus for G:20 economiesTuesday 14th July 2009

The Royal College of Physicians, London NW1 4LE

This high-profile debate will look at the implications of the G:20 summit outcomes on the international tourismindustry; what the governments of the world are doing to combat the global recession and in particular, what theyare doing in terms of tourism. It is hoped that this exciting debate will herald a 'shift change' in attitudes of globalgovernments who will finally take tourism seriously as a means to boost their ailing economies.

The new Secretary General for the UNWTO, MMrr TTaalleebb RRiiffaaii will join the panel alongside PPrrooffeessssoorr GGeeooffffrreeyyLLiippmmaann FFTTSS (Christel De Haan Institute,Victoria University, UNWTO), CChhrriissttoopphheerr RRooddrriigguueess FFTTSS, Chairman ofVisitBritain as well as other senior industry figures, the moderator will be Society President LLoorrdd TThhuurrssoo MMPP FFTTSS,who is current Liberal Democrat Shadow Secretary of State for Business, Enterprise and Regulatory Reform.

PROGRAMME:18.30: Arrival with refreshments19.00: Debate in the Seligman Theatre21.00: Networking & refreshments

Visit www.tourismsociety.org to book your place today or email [email protected] formore information or call 020 8661 4636.

TICKETS:Student/Retired: £25Members of the Tourism Society: £30Non-members: £50

Notice is hereby given that the Annual General Meeting of The TourismSociety will be held at the Royal College of Physicians, 11 St Andrews Place,Regent's Park, London NW1 4LE on Tuesday 14th July 2009 at 5:30 pm for thefollowing purposes:1. The Executive Director to read the Notice convening the meeting2. To receive apologies for absence3. To receive and, if agreed, to adopt the Minutes of the Annual General Meeting held onThursday 19th June 2008, previously circulated4. To receive and consider the reports of the Council and of the Sections Groups andChapters for the year ending 31st December 20085. To receive and consider the Accounts, Balance Sheet and report of the Auditors for theyear ending 31st December 20086. To appoint the auditors at a fee to be agreed by the Board7. To elect members of the Board8. To receive a report and vote on the proposal for the integration of the Tourism Societyand the Tourism Management Institute (TMI)9. To transact any other business

By Order of the BoardFlo Powell

Executive Director14th May 2009

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As you can see from the followingpages, the Society’s membership isgrowing. I would like to thank allnew members for joining andwelcome them to the Society, inparticular Carrier Direct Marketingwho joined as new CorporateSponsors.We have our annualconference on 25th and 26th Junein York, on ‘Tourism: Saviour of theUK Economy’ sponsored byYorkshire Forward, if you have notyet booked you can do so online atwww.tourismsociety.org.TheSociety’s 2009 AGM will take placeon Tuesday 14th July at the RoyalCollege of Physicians at 5.30pm; allSociety members are welcome toattend at no cost. A high-profiledebate with the UNWTO willfollow the AGM at the same venue

from 6.30pm; tickets for the debateare just £30 for Society members.The debate will look at tourism asan economic stimulator for theG:20 economies.The new Society website haslaunched since the last issue of thejournal and I am delighted that somany have been using the newfeatures and new members joiningonline. If you have not yet visited itplease take a look today atwww.tourismsociety.org and login ifyou are a member to access theevent reviews, member search,discount package and industrystatistics.

Flo Powell MTS | ExecutiveDirector|

[email protected]

Events calendar

From a reality check to how tocombat the recession this editionof the journal is certainly a usefulread.We are very honoured tohave Chris Lenton, Chairman of theChartered Institute of Marketing asour guest Editor.This is a direct result of a conversation at one of ourChairman's lunches initiated by theTourism Society.Most of us are volunteers andmany have not chaired an association or society before, theseinformal but informative meetingsallow us to share knowledge andexperiences on anything from VATto Chartership or how to get ourmembers involved in 2012.In fact most associations are wondering why they hadn't thoughtof the idea sooner.Let's make sure that as many ofour members as possible can stayon the right side of this recession –those of you who have beenunlucky enough to have fallen victim please do not forget to post

your CVs on the new and highlypraised website – it's free for allmembers.The conference this year in York isa one day event having separated it from the AGM with cost cutting in mind so hopefully I willsee many of you there at the endof June.

Alison Cryer FTS | Chairman| The Tourism Society

JUNE25-26Tourism Society Annual ConferenceThe Royal York Hotel, York

JULY14Tourism Society AGM & UNWTODebateThe Royal College of Physicians,London

SEPTEMBER22Tourism & Climate ChangeThe Royal Geographical Society (withIBG), London

OCTOBER22Tourism Society Annual DinnerThe House of Commons, London

NOVEMBER4Annual Media Masterclass withTravMediaChurchill Museum & Cabinet WarRooms, London9-12World Travel MarketExcel Centre, London

DECEMBER10Tourism Society Wales ChristmasLunch Park Plaza Hotel, Cardiff

AUTUMN/WINTERPLANNED EVENTS

Sales & Marketing TrainingThe Visitor ExperienceTourism & New MediaTourism & The Public RealmTourism & Transport

From the Chairman’s Desk

Membership News

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Membership News

Welcome New CorporateSponsorsCarrier Direct MarketingT:01271 336000www.carrierdirectmarketing.co.uk

Bob Carter MTSCarrier Direct MarketingE: [email protected] Carter MTSCarrier Direct MarketingE:[email protected]

Ian Parkington MTSCarter CommunicationE: [email protected]: www.cartercommunication.co.uk

Matt Pringle MTSSputnik InternetT: 0870 742 5959E: [email protected]: www.sputnikinternet.com

Welcome New Group MembersOxford Brookes UniversityT: 01865 483813www.brookes.ac.uk

David BowenE: [email protected] HarwellE: [email protected]

Roberto DanieleT: 01865 484346E: [email protected]

Kate VariniE: [email protected]

Welcome New MembersAmad Alazzawi MTST: 0161 4828376E: [email protected]

Angela Baines MTSRoundberry ProjectsT: 01827 897629E: [email protected]

Kenny Boyle MTSVisitBritainT: 020 8563 3340E: [email protected]: www.visitbritain.co.uk

John Briggs MTSNewark & Sherwood District CouncilT: 01636 655261E: [email protected]: www.newark-sherwooddc.gov.uk

Paul Brocklehurst MTSMountain Sites UKT: 08454 192634E: [email protected]: www.mountainsites.co.uk

Jean Burbidge MTSWild Goose LeysT: 01487 773349E: [email protected]: www.wildgooseleys.co.uk

Eddie Byers MTSVisitScotlandE: [email protected]: www.visitscotland.com

Anne Cumberlidge MTSTourism SolutionsE: [email protected]

Heidi Dahl MTSInnovation NorwayT: 0207 389 8800E: [email protected]: www.visitnorway.com

Gwyn Davis MTSZoological Society of LondonT: 0207 4496275E: [email protected]: www.zsl.org

Samantha Dodd MTSNewark & Sherwood District CouncilT: 01636 655719E: [email protected]: www.newark-sherwooddc.gov.uk

Eileen Donnelly MTSVirgin Management LtdT: 020 7313 5012E: [email protected]

Rachael Dyer MTSLancaster City CouncilT: 01524 582813E: [email protected]: www.citycoastcountryside.co.uk

Christine Fenley MTSFrench Government Tourist OfficeT: 0207 0616629E: [email protected]: www.franceguide.com/uk

Chris Fuzinatto MTSBrazilian Tourist OfficeT: 0207 3965551E: [email protected]

Christopher Gledhill MTSFuture DirectionsT: 01874 638979E: [email protected]

Debbie Hindle MTSBGB CommunicationsT: 0207 902 2990E: [email protected]: www.bgb.co.uk

Suzanne Holiday MTSKeene Public Affairs ConsultantsT: 02078392140E: [email protected]: www.keenepa.co.uk

Pauline Jones MTSBlack Country Consortium T: 01384 471132E:[email protected]: www.blackcountryconsortium.co.uk

Ian Kirby MTSTalk-Tourism LtdT: 0845 0508436E: [email protected]: www.talk-tourism.co.uk

Continued on Page 22

Congratulations to...Helen Beioley, Benjamin Carey, Penelope Viscountess Cobham, Geoff Le Page and Simon Woodward on theirupgrades to Fellowship of the Tourism Society, to Sandie Dawe FTS on her promotion to CEO of VisitBritain, toAviva Pearson on her new role as Chief Executive of the Yorkshire Moors & Coast Tourism Partnership and toRoger Goodacre FTS who has been appointed leader of a UNWTO team that will be managing the implementation of a tourism development master plan for the Indian state of Punjab.

21 2/6/09 16:38 Page 1


Membership News


Evelyn Lafone MTSSwitzerland TourismT: 020 7845 7688E: [email protected]: www.myswitzerland.com

Marilyn Larden MTSSustainable TravelInternationalT: 0208 6309519E: [email protected]

James Morris MTSFarm & Cottage HolidaysT: 01237 479146E:[email protected]:www.holidaycottages.co.uk

Daniel Moriss-JefferyMTSThe Tourism SocietyT: 020 8661 4636E: [email protected]: www.tourismsociety.org

Richard Morrey MTSService Science LtdT: 0207 0600 722E: [email protected]: www.servsci.com

Ben Moxon MTSAmenford LtdT: 01483 510310E:[email protected]: www.arkenford.co.uk

Jackie Parry MTSInstitute of Tourist GuidingT: 0207 9531257E: [email protected]: www.itg.org.uk

Sanjika Perera MTSSri Lanka Tourist BoardT: 0845 880 6333E: [email protected]: www.srilankatourism.org

Luis Rendon AnguilarMTSMexican Tourist BoardT: 02074889392E:[email protected]:www.visitmexico.com

Nabeel Shariff MTSSri Lanka Tourist BoardT: 0845 880 6333E: [email protected]: www.srilankatourism.org

Daniel Sheratte MTSW: [email protected] Stone MTSShiverpool Tours LtdT: 0151 7092030E: [email protected]: www.shiverpool.co.uk

Brian Summers MTSTourism West MidlandsT: 0121 503 3391E: [email protected]: www.visittheheart.co.uk

Sean Taggart MTSAlbatross Group ofCompaniesT: 01732 879148E: [email protected]: www.albatross-tours.com

James Turner MTSHidden Britain S.E.E:[email protected]:www.hiddenbritainse.co.uk

Nick Way MTSHistoric Houses AssociationT: 020 7259 5688E: [email protected]: www.hha.org.uk

Graham Wilkinson MTSThe Coppermines & LakesCottagesT: 01539 488264

E:[email protected]: www.coppermines.co.uk

John Williams MTSTourism South EastE: [email protected]:http://industry.visitsouth-eastengland.com

Robert Woodford MTSLondon Black CabSightseeing Tours LtdT: 0208 5238555E: [email protected]: www.londonblackcab-sightseeingtours.co.uk

Miriam Wright MTSSwale ForwardT: 01795 417456E:[email protected]:www.swale.gov.uk

Gregory Yeoman MTSThe Tourism SocietyT: 020 8661 4636E:[email protected] W: www.tourismsociety.org

Welcome OverseasMembersGabor Galla MTSTourconsult LtdT: +361 2247670 E: [email protected]: www.tour-consult.eu

StudentsAnglia Ruskin UniversityDavid Dhannon

Bournemouth UniversityMaeve MarmionThanasis Spyriadis

Guildford CollegeElena Georgiou

Kings College LondonSebastien Dujardin

Leeds MetropolitanUniversityRebecca ForsmanElizabeth Jane Hough

London South BankUniversitySheila Nabasuma

LTC CollegeDinya D’Silva

Middlesex UniversityHans W. Dorr

Napier UniversityJessica Beattie

Oxford BrookesUniversityEhinoman Eliboh

Thames Valley UniversityChristentia Oldham

University CollegeBirminghamLeslie GriffithsHristo Yanev

University ofBedfordshireKristine Anoska

University of SurreyBeverley Sabbioni

University of GreenwichCaroline Doherty Blerton HyseniRamiz LotfallaAmar PokhrelSanaz Oskuiefar

University ofWestminsterAleksandra MisaikaTeodora Moneva

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