London – The Tourism Business Frontiers Forum that took place at World Travel Market addressed the numerous obstacles that tourism faces worldwide. Professor Airey opened proceedings by addressing the ever-increasing number of frontiers that tourism faces in the current climate (e.g. staffing, geography and crises, etc). “We are in a continual process of change and it is important that we, as practitioners and academics of tourism, change in our approaches and understanding of tourism in order to survive,” he said.
Key Emerging Themes:
1. Changing Market Trends and Developments
Rochelle Turner turned attention to market trends and developments. While in the 1990’s, the top four tour operators operating in mass market travel in the UK shared 50% of all package holidays. Vertical integration dominated industry structure. However, the growth of the independent travel sector from one third to 44% of the market in 2005 has set significant change to the market. Low cost airlines, use of the internet, the rise of second-home ownership and visiting friends and family have driven such growth.
Consequently there has been a general decline in demand for package holidays despite an increase in the overall market with an approximate growth of 6% per annum. Greater frequency of travel is coupled with an increase in ‘new entrants’ at different levels of the industry. New strategies for survival have therefore emerged in mass market tour operators through greater use of the internet as well as consolidation and focusing on higher value products, organisation ‘back office’ restructuring, or as adopted by Thomson, specialisation in the mass market (e.g. niche products, smaller tour operator brands, funding higher value holidays, etc). Such trends provide insight into the dramatic changes affecting the tourism industry at present and coupled with threats of terrorism and increasing oil prices, highlight the adaptability and flexibility required to survive in the current tourism market.
With regard to changing market trends, Monique de Greeve raised the issue of the changing flows of travel and tourism. The movement of tourists is no longer confined to the dominant patterns of travel from north to south. Rather, an ‘inter-market’ flow of tourists emerges as not only do ‘western’ travellers engage in travel, but people throughout the world are increasingly mobile, thus generating a far greater complexity to contemporary travel in terms of the people travelling and the destinations they travel to.
Such concerns were echoed during discussion as one contributor questioned the changing motivations for travel and the response of destinations in the presentation of, and provision of facilities at, destinations. With the emergence of new cultures of travel (especially with the increasing numbers of Chinese and Asian tourists), it was envisaged that new targeted strategies of promotion and presentation would be vital if destinations are to optimise the benefits of tourism. While China held the focus of discussion, emerging outbound tourism in Africa also focused attention on the need to accommodate differences in tourist behaviours (e.g. travelling primarily for both business and pleasure, rather than the traditional model of travelling purely for pleasure and escapism).
2. Changing Geographical Frontiers
Linked firmly to issues of changing market trends and developments, Prof. Guangrui addressed the frontier of changing geographical markets. A key frontier that is sure to hold profound impacts on the future of tourism is the emergence of the Chinese market for both inbound, but perhaps more importantly for outbound travel. Since the 1990’s the growth of tourism in China has led to its being ranked No.1 in Asia, 4th in the world for international arrivals and 5th in the world in terms of revenue from tourism.
With international departures trebling from 10.5million in 2000 to 31million in 2005, the impacts of such growth are exponential. With relaxed Government policy, greater leisure time, aggressive external promotions, changes of consumption practices and the projection of over 100million Chinese in- and outbound tourists by 2020, the impacts of Chinese outbound travel on the tourism industry are profound. Indeed, many questions arise concerning changing travel motivations, changing destinations.
3. Developments in Technology and eTourism
Thirdly, building upon issues touched upon by both Rochelle and Peter, Dimitrios Buhalis turned attention to the importance of eTourism and the influences technological changes have on the structure of the tourism industry in bringing both opportunities and challenges. Dimitrios Buhalis outlined the importance of technological advancements with particular focus on the internet and the development of eTourism.
He proposed that the internet and technological advancement lies at the heart of the success of the tourism industry and industry therefore requires technological solutions to existing problems. Such technology has witnessed rapid growth over the last few years, with over £31.5 billion Euros per annum forecast to be generated through internet sales alone in 2006 (not including the use of internet for searching for products but purchasing offline).
This transition from off- to online market share is further evident in the 35-40% growth rates of internet sales per-annum, with the UK and Germany leading internet users. While the majority of sales continue to emerge through transport bookings (in particular air transport), Dr Buhalis forecasts the future for the internet in tourism as becoming increasingly consumer-centric, with particular focus on personalisation, location/context/mood awareness, customer satisfaction and adaptive to consumer needs, thus striving for an agglomeration of production and consumption systems.
4. Climate Change and Sustainability in tourism
Fourthly, of key concern was the need to revisit issues of sustainability in tourism. Professor John Tribe questioned the limits of acceptable change through tourism with particular focus on climate change. With the publication of the Stern Report in the UK, the Predict and Decide Report and from the UK Energy Research Centre, climate change is the greatest market frontier. Being “more than not changing towels in hotel rooms”, Professor Tribe called for sustainability to be brought back to centre stage of tourism.
Peter Wear coupled previous issues of changing consumer behaviour with issues of sustainability and ethical awareness in tourism as he noted the increasing discretion of the tourist as consumer. Tourists are therefore juggling their priorities as in the UK, they are increasingly willing and able to pay for an ethical option for travel. However, echoing concerns for climate change, he acknowledged that while ethical concerns are emerging, with increased taxes on flights coupled with concerns for the environment, an ethical trade-off emerges as consumers balance the price to pay for the experience.
In terms of the tourism business, George Drakopoulos raised concern over the sustainability of destinations in terms of the entire economic systems. Indeed, with changing market trends and development and the infiltration of tourism throughout the entire economic systems of many destinations where tourism accounts for a significant percentage of GDP, such issues of sustainability are vital. Traditional package holiday tourists are increasingly replaced by a ‘visitor’ culture as greater investment is made in alternative touristic activity such as the purchase of second-homes. Such activities are no longer confined to traditional tourist activities and areas, but infiltrate the entire economic system for prolonged periods of time, thus generating the possibility of alternative, deeper impacts on entire local economies.
5. The ‘low cost’ phenomenon
Cutting across all emerging issues, was the impact of the ‘lost cost’ frontier. A means of increasing independent travel and increasing access to destinations, low-cost travel (in particular low-cost airlines), was felt to be replete with impacts on future tourism trends and practice. In terms of sustainability, it was felt that the days of low-cost travel cannot be sustained in the long-term. Indeed, such practices must be realised in terms of their ‘real’ costs (e.g. carbon emissions). However, despite such concerns, with the ‘low-cost’ lifestyles and the emergence of second-homes, embedded as a key element of contemporary tourism, it may be very difficult to ‘bite the bullet’ of low-cost and find suitable alternatives.
Both panel members and ‘floor’ contributors raised concern over the potential of the low-cost phenomenon to impact levels of service. While some voiced concern over the eradication of hospitality, or the creeping increase in prices with continued low quality service, others reflected on the positive effect of ‘no-frills’ airlines in generating competition, increasing overall service and reducing general costs of air travel in the marketplace. Nevertheless, the main concern arose of the subsequent polarisation of the market with the emergence of a ‘swap’ (Rochelle Turner), whereby the middle market has dropped out leaving only low-cost or luxury travel options.
6. Other emerging frontiers?
In addition to the key emerging themes identified, several other frontiers emerged during discussion. Some points for further reflection are: the role of government in the arena of changing consumer protection, changing future technologies of travel and the future travel demands of today’s teenagers/tomorrows 30-somethings? The future of technology and virtual travel experiences and the emergence and impacts of space tourism.
Session Chair was Professor David Airey (Pro-Vice Chancellor, University of Surrey). Rochelle Turner (Thomson), Prof. Zhang Guangrui (CASS TRC, China), Dr Dimitrios Buhalis (University of Surrey) were the keynote speakers.
Invited Contributors were Monique De Greeve (emergingmarketsgroup.com), George Drakopoulos (SETE, Greece), Peter Wear (Patent Group), Professor John Tribe (University of Surrey)
Dr Dimitrios Buhalis, University of Surrey was also the Conference Organiser and Dr Caroline Scarles, University of Surrey was the rapporter.
TravelDailyNews International was Media Sponsor of the Tourism Business Frontiers Forum.
Source: www.traveldailynews.com
