Front || Speeches Index || Annotated Resumé || Contact
|
Jorge Herrera, Dallas Convention & Visitors Bureau November 1998
Keeping Pace With Changing Demands: Written for presentation by Mick Doherty
Today we are talking about emerging markets in the
travel industry; we discuss the increasing internationalization
of our industry, and the crossover markets of the business
traveler, the convention-goer and the leisure-seeking vacationer.
But only one emerging market covers all of these others, and
any other you can name; in fact, we might even name it that
the emerging market.
[show graphic on overhead]
Or more accurately, the E-Merging Market. That’s E- as in
e-mail, as in electronic; and merging as in combining,
changing, and making new demands. The travel industry
is truly e-merging.
Research report figures for online
travel are already a year ahead of projections, leading
researchers to predict online travel will become the
single largest business-to-consumer product online accounting
for 12% of the overall travel market by the year 2002.
Further, the travel industry will account for 35% of all
online sales by 2002.
I do not intend to bore you with numbers;
after just another moment, I will abandon statistics
altogether for the remainder of this presentation.
But there is more worth hearing and worth considering.
Online travel sales surged 200% in the calendar
year 1997, and will likely rise at least that much when the
final numbers for 1998 are totaled; by the end of 1997,
more than 70% of Web users had visited a travel-related
site, double the 1996 rate.
In fact, Jesse Berst, editor of the Internet
standard ZDNet AnchorDesk declared in June of this year
that "Travel" was the sixth-most popular use of the Internet
behind obvious leaders like "Read News & Sports", "Hunt for a Job",
and the #1 activity,
"Searching."
Searching, of course, is the key tool on the
Internet and it is no coincidence, given the numbers
you have just heard, that at least two major resources,
Travigator and Travel.com, are entirely and solely
dedicated to the search for travel information on the
Internet.
And let us not forget that the international population
of the Internet is growing exponentially with each passing day
in computer terms, years are measured in generations,
rather than the reverse. So as our existing audience is
becoming more and more interested in online travel resources,
the size of the potential audience is growing as well.
And that audience is becoming more and more
Internet-savvy, and doing so quite naturally.
By 2005, students entering first-year university
will have grown up never having known a world where
the Internet did not exist. It will be
and in many cases already is
as natural as telephone, television, radio;
but in other ways, it is quite different, as this medium is,
at least supposedly, interactive.
Understanding the way Internet users think
about what they’re doing and the way they
approach finding and using information on
the Web is crucial to the way we can and
should market our destinations and other
travel services.
In the last half-decade, a time in which
we have seen the invention and invasion of the
World Wide Web into our international consciousness,
the undisputed industry leader in personal computer
and internet technologies has been, of course,
Microsoft. And when Microsoft speaks, the world
whether they want to or not listens.
And what is the current Microsoft advertising
campaign telling us? Or more accurately, asking us?
Where do you want to go today?
The Internet, according the Microsoft,
is essentially a means of travel and tourism.
When an online traveler visits a Web page even
the words we use to describe internet use are
travel-oriented she is taking away much more
than she might from a phone call or a brochure mailed
to her office.
There is a sense of actually being in the place we
are considering traveling to when we access their Web site
and if the information is hard to find, hard to use, or
not as attractive and accessible as information presented
by a competitor, we have lost a customer.
Where do you want to go today?
If a visitor wants to come to Dallas
or fill in your city of choice here, but I always
assume they will prefer Dallas!
the number of tasks they face in planning a
trip might include but are not limited to! the following:
The point is, the Internet-connected traveler
(and that is quickly becoming a redundancy)
can now do all of those many things herself
probably in less than an hour. You have in your hands
a list of Internet sites claiming to provide
precisely those services; as a Convention & Visitors
Bureau, we wonder, should we be tracking these sites?
Policing them for accuracy and fairness? Rating them?
Partnering with them?
Sites like The Internet Travel Network provide
one-stop shopping links to all these possible services;
or the consumer might have a series of familiar and
favorite sites, such as Microsoft Expedia, American
Airlines Online, and HotelView, and use all of
these to make reservations
even to perform quick, efficient comparison shopping.
Where do you want to go today?
Some people have claimed the Internet will inevitably
be the death of the professional travel agent; and
while you will see in a moment that is not necessarily
true, it is true that every individual computer user
with Internet access can now
cut out the middle man and act as her own agent.
America Online, the largest single Internet access
provider in the world, even has an entire section of
their Travel Channel entitled Be Your Own Travel Agent.
This should at least make us pause and reconsider the
audience we are targeting as we write our copy and mail
electronic and otherwise our brochures.
And everyone seems to want in on the travel/tourism
business these days. It makes sense
according to the C|Net News Service,
"travel represents one of the largest electronic
commerce areas for consumers. [Therefore]
Net businesses of many stripes always eager to grab
consumer dollars whenever possible have responded."
Microsoft, Netscape, AOL, Yahoo! and other familiar
Internet names now provide their own specialized
Travel sections. In other words, people who
"do the Web" for a living are now providing
travel services and in many cases are wildly successful.
People who "do travel services"
professionally aren’t necessarily providing Web services
and when they are, it’s not necessarily successful.
Where do you want to go today?
I do not mean to dismiss the very real effort
many of our industry leaders are making toward incorporating
technology into our everyday business. But I find
some irony in the fact that as I prepared for this
presentation, I was told I could have an overhead
projector, a 35mm carousel slide projector with remote,
as well as any handouts I may decide to give out.
When I spoke to our Bureau’s Internet Editor to discuss
ideas for this presentation, he told me "I haven’t given
a presentation since 1994 in which I didn’t have
access to at least a Liquid Crystal Display unit.
How are you going to talk about Internet technologies
without looking at them live?"
Of course, I am doing just that, so it’s
clearly possible and possibly it’s even clear!
But the fact is, we do not as an industry think
"technology first" and because we are a people-friendly
industry, a hospitality-first-last-and-always business,
we may never think that way. In fact, I hope we never
do. But we have not done our jobs incorporating the new media,
the changing expectations and demands of our clientele.
Let’s be honest just for a moment. Perhaps we are simply
scared. A badly-designed or badly-maintained Web site
is probably worse than none at all; an impersonal e-mail
surely negative to the point of canceling out any
positive follow-up phone call. Misinformation on the
Net and Web can spread so quickly that we hesitate to
use the medium for accurate information these are real problems.
Where do you want to go today?
There are facts we must face. Here in Dallas,
we can reasonably expect that by early 2000
and that is just over a year away
the number of e-mail requests we receive at the
Convention & Visitors Bureau will outnumber the
number of phone calls and walk-ins to our office
combined; that the number of visitors to our
Web site in one month will approach the number
of visitors to our downtown Visitors Center in
one year; that our current stable of publications
will either be mirrored in an electronic format,
or in some cases actually replaced by electronic media.
This is not to suggest the number of phone calls
we receive will decline, or the number of visitors to
our downtown Visitors Center will decrease
in fact, those numbers are more likely to grow,
if we do our job well. As more people become aware
of us and what we offer through our electronic presence,
the more traditional requests will follow. But
what is our job in the "E-Merging Marketplace,"
and how can we do it well? The answers are changing.
Where do you want to go today?
We can argue, I suppose, that technology is
making travel more difficult for the everyday browser.
One professional travel agent
the dying breed mentioned earlier
recently wrote in an Internet publication,
"The fact is that the vast majority of people,
who actually travel only two or three times a year,
need professional help when it comes to interpreting
the labyrinthine depths of airline rules and marketing
schemes or, for that matter, just about any detailed
travel itinerary. Otherwise they will be eaten alive."
His comment does not necessarily address the real
issues facing the current generation of traditional
travel agents; whereas they used to be the ones to
handle complicated travel details, they now must
compete with self-service travelers who bargain-hunt
on the Web believing whether they are correct or not
they are saving time and money "doing it themselves."
Web sites are open seven days a week, 24 hours a day, and
users now have direct access to the very same
reservations databases that travel agents and
airlines have used for years.
As of this past summer, four Internet-only
travel agencies Expedia, Preview Travel, Travelocity
and Internet Travel Network were ranked in the top
50 U.S. travel agencies.
The travel agent’s relevant point, of course,
is that "real folks" will always be required
or at least desired to help other "real folks"
in face-to-face, or telephone conversations.
As members of the hospitality industry, we are
inclined to agree. But what do we do when the phone
call comes and the question is too technical for
an otherwise knowledgeable salesperson or representative?
Where do you want to go today?
At the Dallas CVB, we frequently get calls (and e-mail)
asking us to confirm information a traveler found on
CityView, CityGuide, CityLink, CityNet, CitySearch, DigitalCity
you get the idea. Or a complaint from a traveler who
made reservations through a specific hotel Web site,
or dinner plans based on a menu and map provided by
an online dining guide. Again, we are left with the
question, what is our job? To monitor? To "link"?
To provide ratings and endorsements? To form partnerships?
The problem is, as we take our time
formulating and asking these questions,
the answers are already being provided
by the customers using the Internet daily, both at home
as they plan their trips and while they are actually on
the road, traveling. To borrow a phrase, our industry
has not been made up of "Market Makers" on the Internet
we are passively watching the market take shape and wondering
how to enter into the fray.
Kevin Jones, a reporter for Inter@ctive Week Magazine,
recently wrote that "Internet Market Makers, a phrase being applied
to the many new entries into the burgeoning world of electronic
commerce, can provide more perfect information about markets,
and a small, nimble player can create a shock wave in a
huge industry right from the outset."
Companies may feel threatened initially, but it
is a new sales channel, and if we can't beat them,
we will have to find some way to join them.
And as we consider how to join them
whether that be by competing or collaborating
we will, as we always have, be responsible enough to
put the needs and expectations of our customers first.
That is where we will run into some hard truths.
Where do THEY want to go today?
Think about the few well-known truths of
marketing and sales
the customer wants clear choices, the best deal
in the fastest turnaround time, and wants to
feel they are treated well in a place where
they can return to for quality repeat business.
In the best of all worlds, the customer has a
one-stop shopping experience and the
name on the front of the store as long as the product
and price are satisfying really doesn’t matter.
Shopping at Expedia as opposed to Travelocity
doesn’t really make a difference to a consumer.
Buying that American Airlines ticket with the
frequent flyer miles whether that’s accomplished through
Preview Travel or through AA.com doesn’t really matter.
Getting information about your destination city from
CityView as opposed to CitySearch
what’s the difference? A brand name? Unfortunately
(for the travel industry, anyway) the only "brand names"
Web users tend to pay attention to are those of the provider.
Netscape, Yahoo, AOL, Microsoft.
Where do you want to go today?
In that one stop, the customer wants ...
[Hand out press release.]
This Visitor Center, built into the first floor of the
historic Dallas County Courthouse, goes beyond
the traditional racks of brochures and maps.
Certainly, we have the brochures and maps
but there is also a large-screen video room to show off
Dallas sights and attractions, as well as a full staff
available every day of the week.
More to the point of this presentation, we have
eight interactive touchscreen kiosks showing off the very
same information available on our data-driven Web page,
as well as Internet access and Web stations for the walk-in user.
The 21st-century traveler not only wants to use technology
to plan her trip in advance she wants to be connected
while on the road. This too is a topic worthy of much
conversation, but best suited for another time.
Where should I end this presentation today? (I suppose you might
ask, where do I want to go today?) With a series of recommendations,
suggestions, a call to action? Not precisely.
Instead, I leave you with an invitation to further
discussion. If you’d like to spend more time talking
about what we can and must do, I urge you to sign
the sheet that is going around the room right now,
and list your name and e-mail address; our Internet Editor
at the Dallas CVB will create an e-mail discussion list
for those of you interested, and we will take this
conversation to its natural surroundings online, where
we as an industry have not spent nearly enough time.
|