Tourism: From Good to Great Winning in The “New” Economy Marriott Corporation – Global Sales Organisation, June 23, 2004
Rationale <ul><li>&quot;Strategic resilience is not about responding to a one time crisis …it's about continuously anticip...
Definition of Insanity <ul><li>“ Doing the same thing over again and expecting different results” </li></ul><ul><li>Doing ...
Roadmap <ul><li>What forces are turning the economic order upside down? </li></ul><ul><li>How are customers changing?  </l...
Short History Lesson <ul><li>Four aspects to every economic revolution </li></ul><ul><li>People  – what do they yearn for?...
Industrial Revolution # 1: 1750s <ul><li>People leaving ties of rural life; wanting to purchase “decencies” and better the...
Industrial Revolution # 2 1920s <ul><li>Mass market wanting to purchase luxuries like the automobile </li></ul><ul><li>Com...
Consumer Revolution # 3 <ul><li>People are now very different </li></ul><ul><li>Mammoth changes to technology </li></ul><u...
Four Forces Driving Change <ul><li>Four aspects to every economic revolution </li></ul><ul><li>People  – what do they year...
Force 1: The Changing Consumer <ul><li>Are we really like our grandparents or great grandparents? Do we relate to our kids...
Has Power Shifted to the Consumer? <ul><li>Yes, there has been some: </li></ul><ul><ul><li>Commodisation </li></ul></ul><u...
Here’s the Problem   <ul><li>In a transaction economy…value is seen as something companies create or add  </li></ul><ul><l...
Supposing….   <ul><li>Value actually rests with each customer? </li></ul><ul><li>Supposing each customer sits at the centr...
Dancing with the Customer   <ul><li>Involves partners that share leadership </li></ul><ul><li>A dialogue of bodies; an exc...
That’s Mostly in Their Heads! Physical  Mental  Emotional  Spiritual Stimulate Enable/enrich Mould / propagate Virtual  Vi...
What Business Are You In?   <ul><li>The body parking business? </li></ul><ul><li>The support business? </li></ul><ul><li>E...
dream plan book experience reflect share return Customer’s Intent Experience Cycle reject The Cycle of Need 2004
Business Web Participants GUEST 2004 Host Community Providers Suppliers Agents Channels Partners
The Importance of Community   <ul><li>Our customers are NOT the rational beings (buyings? ) that Adam Smith described – th...
The Importance of Community   <ul><li>“ People in networked markets have figured out that they get better support from one...
The Blurring of Boundaries   <ul><li>When customers are intent on achieving a task do they or should they care about your ...
Coping with a Cheeky Consmer!   <ul><li>Customisation </li></ul><ul><li>Choice </li></ul><ul><li>Completeness </li></ul><u...
Force # 2 – Enabling Technologies   <ul><li>Connectivity </li></ul><ul><li>Convergence </li></ul><ul><li>Open Standards </...
Force # 2 – Enabling Technologies   <ul><li>Implications </li></ul><ul><li>Technology not the barrier to serving “cheeky c...
Force # 3 – New World Views 2004
Force # 4 – New Organisational Structure   <ul><li>Implications </li></ul><ul><li>Instead of a “sector” with a few vertica...
Common Features   <ul><li>Customer centric, task oriented </li></ul><ul><ul><li>Couples seeking a short break at a resort ...
Common Features   <ul><li>Built on a technical infrastructure that enables them to  </li></ul><ul><ul><li>Identify, select...
Leadership Opportunity   <ul><li>Marriott in the perfect position to assume a leadership position in a domain that has to ...
Thank You!   <ul><li>Anna Pollock, CEO </li></ul><ul><li>DestiCorp </li></ul><ul><li>[email_address] </li></ul><ul><li>www...
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Tourism From Good to Great

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  • DMO’s operate in an electronic, virtual world as well as a physical world. You need to excel in both environments Over 60% of the trip experience is mental. It starts with a fantasy – your job is to stimulate and fulfill via electronic media delivered to the prospect. It continues as a physical experience (their bodies engage with your destination) but that involves more than comfort and has a huge mental payoff (learning, stimulation), emotional benefits and spiritual meaning. How do you enable or enrich this experience? Then it translates into a memory that, ideally, you’ve moulded and personally encouraged – like spore - to propogate. 60-80% of all trip decisions are influenced by peers.
  • Think of the TRIP as a space-time EVENT, triggered by the INTENT and then the ARRIVAL. Each event is like a stone in a pond. The impact of the event ripples out enveloping and binding a community of actors to respond and deliver ( a theme pursued later) This pattern is repeated throughout the trip at multiple levels. The infrastructure needs to accommodate this.
  • Even though DMO’s are the choreographers, in the dance it is the customer that should be taking the lead.
  • Tourism From Good to Great

    1. 1. Tourism: From Good to Great Winning in The “New” Economy Marriott Corporation – Global Sales Organisation, June 23, 2004
    2. 2. Rationale <ul><li>&quot;Strategic resilience is not about responding to a one time crisis …it's about continuously anticipating and adjusting to deep, secular trends that can permanently impair the earning power of a core business. It's about having the capacity to change before the case for change becomes desperately obvious.&quot; </li></ul><ul><li>Prof. Gary Hamel, December 2003 </li></ul>2004
    3. 3. Definition of Insanity <ul><li>“ Doing the same thing over again and expecting different results” </li></ul><ul><li>Doing the same thing over again whilst everything is changing around you” </li></ul>2004
    4. 4. Roadmap <ul><li>What forces are turning the economic order upside down? </li></ul><ul><li>How are customers changing? </li></ul><ul><li>What new technologies might help? </li></ul><ul><li>What’s the bigger picture or context? </li></ul><ul><li>What are Marriott’s opportunities? </li></ul><ul><li>My objective is to help you understand what’s really going on.. </li></ul>2004
    5. 5. Short History Lesson <ul><li>Four aspects to every economic revolution </li></ul><ul><li>People – what do they yearn for? </li></ul><ul><li>Technological capabilities – what do they enable? </li></ul><ul><li>Worldview – how do we perceive the world and our role in it? </li></ul><ul><li>Organisation – how is value created and exchanged? </li></ul>2004
    6. 6. Industrial Revolution # 1: 1750s <ul><li>People leaving ties of rural life; wanting to purchase “decencies” and better themselves </li></ul><ul><li>Inventions – steam engine, spinning jenny </li></ul><ul><li>World perceived as an orderly place -- the clockwork universe; fixed laws; everything in its place </li></ul><ul><li>Factories, hourly paid work; cash, division of labour </li></ul><ul><li>Emergence of capitalism; birth of empires </li></ul>2004
    7. 7. Industrial Revolution # 2 1920s <ul><li>Mass market wanting to purchase luxuries like the automobile </li></ul><ul><li>Communications technology; electricity </li></ul><ul><li>Business could be better organised by applying scientific principles based on Newton, Darwin, Freud </li></ul><ul><li>Emergence of the assembly line; more specialisation; mass markets; persuasive marketing </li></ul><ul><li>Pervasive, global spread of mass consumerism </li></ul><ul><li>Defeat of communism </li></ul>2004
    8. 8. Consumer Revolution # 3 <ul><li>People are now very different </li></ul><ul><li>Mammoth changes to technology </li></ul><ul><li>A very different worldview </li></ul><ul><li>New organisational structures </li></ul><ul><li>Leading to a “New” Economy </li></ul><ul><ul><li>Information </li></ul></ul><ul><ul><li>Knowledge </li></ul></ul><ul><ul><li>Network </li></ul></ul><ul><ul><li>Digital </li></ul></ul><ul><ul><li>Support </li></ul></ul><ul><li>90% of our political leaders don’t “get it” </li></ul><ul><li>Do you? </li></ul>2004
    9. 9. Four Forces Driving Change <ul><li>Four aspects to every economic revolution </li></ul><ul><li>People – what do they yearn for? </li></ul><ul><li>Technological capabilities – what do they enable? </li></ul><ul><li>Worldview – how do we perceive the world and our role in it? </li></ul><ul><li>Organisation – how is value created and exchanged? </li></ul>2004
    10. 10. Force 1: The Changing Consumer <ul><li>Are we really like our grandparents or great grandparents? Do we relate to our kids? </li></ul><ul><li>Conformity is out, self expression is in </li></ul><ul><li>Are we consumers or individuals? </li></ul><ul><ul><li>If you time for only one clue this year, this is the one to get…we are not seats or eyeballs or end users or customers. We are human beings whose reach exceeds your grasp. Deal with it! From The Clue Train Manifesto </li></ul></ul><ul><li>We don’t need to be persuaded to consume! Consumption is what we do to survive! </li></ul><ul><li>We simply want some support </li></ul><ul><li>We have changed – most commercial organisations have not! </li></ul>2004
    11. 11. Has Power Shifted to the Consumer? <ul><li>Yes, there has been some: </li></ul><ul><ul><li>Commodisation </li></ul></ul><ul><ul><li>Reduction in brand values </li></ul></ul><ul><ul><li>Lower prices </li></ul></ul><ul><ul><li>Cannibalisation from intermediaries </li></ul></ul><ul><li>But consumers still very frustrated </li></ul><ul><li>Companies starving the front line – “transaction starvation” </li></ul><ul><li>Squeezing as much value out of a transaction – “transaction inflation” </li></ul><ul><li>Pushing products, still product centric </li></ul><ul><li>Customers sit at the end of a long “value chain” like coins on a shuffleboard, pushed along by accumulative supply forces </li></ul>2004
    12. 12. Here’s the Problem <ul><li>In a transaction economy…value is seen as something companies create or add </li></ul><ul><li>Companies are in control of production, positioning, promotion, pricing, placement (distribution) </li></ul><ul><li>The aim, reduce transaction costs by </li></ul><ul><ul><li>Getting bigger (the M & A phase) </li></ul></ul><ul><ul><li>Cutting costs (the re-engineering phase) </li></ul></ul><ul><ul><li>Up selling and cross selling (the partnership phase) </li></ul></ul><ul><ul><li>Improving quality (the TQM phase) </li></ul></ul><ul><ul><li>Convincing customers that a relationship existed (the CRM phase) </li></ul></ul><ul><li>But supposing…… </li></ul>2004
    13. 13. Supposing…. <ul><li>Value actually rests with each customer? </li></ul><ul><li>Supposing each customer sits at the centre of an orbit, not the end of a chain? </li></ul><ul><li>Supposing the role of the company is to enter into a dialogue or relationship so that.. </li></ul><ul><li>Value is released and exchanged through the act of support. </li></ul><ul><li>We call this Dancing with the Customer ! </li></ul>2004
    14. 14. Dancing with the Customer <ul><li>Involves partners that share leadership </li></ul><ul><li>A dialogue of bodies; an exchange of energy </li></ul><ul><li>Both partners “sense and respond” to the movements of the other </li></ul><ul><li>Requires a fresh, playful, experimental attitude to business </li></ul><ul><li>Requires more loose, flexible, agile structures </li></ul><ul><li>You and your customers co-evolve and co-create innovative solutions that support them in achieving their task </li></ul><ul><li>It all starts with an intent, a fantasy, a purpose </li></ul>2004
    15. 15. That’s Mostly in Their Heads! Physical Mental Emotional Spiritual Stimulate Enable/enrich Mould / propagate Virtual Virtual Physical 2004 INTENT/ FANTASY EXPERIENCE MEMORY RETURN RECOMMEND
    16. 16. What Business Are You In? <ul><li>The body parking business? </li></ul><ul><li>The support business? </li></ul><ul><li>Enabling customers to complete a task? </li></ul><ul><li>What are Your Customer’s Seeking? </li></ul><ul><li>More than pampering </li></ul><ul><li>Meaning & Fulfilment </li></ul><ul><li>A sense of place </li></ul><ul><li>Encounters with people and places that are different from home </li></ul><ul><li>Experience the extraordinary </li></ul>2004
    17. 17. dream plan book experience reflect share return Customer’s Intent Experience Cycle reject The Cycle of Need 2004
    18. 18. Business Web Participants GUEST 2004 Host Community Providers Suppliers Agents Channels Partners
    19. 19. The Importance of Community <ul><li>Our customers are NOT the rational beings (buyings? ) that Adam Smith described – they’re highly emotional! </li></ul><ul><li>Whom do our customers trust – in a world of spin? </li></ul><ul><li>Whom do our customers turn to for advice and support? </li></ul><ul><li>Each other! </li></ul><ul><li>What’s the best way to get customer feedback? </li></ul><ul><li>By listening in on peer to peer conversations </li></ul>2004
    20. 20. The Importance of Community <ul><li>“ People in networked markets have figured out that they get better support from one another than vendors and are beginning to self organise faster than the companies that serve them” </li></ul><ul><li>Cluetrain Manifesto </li></ul><ul><li>The Rise of Emotive Networks </li></ul>2004
    21. 21. The Blurring of Boundaries <ul><li>When customers are intent on achieving a task do they or should they care about your departmental boundaries and policies? </li></ul><ul><li>Customers are more likely to think outside the box than companies are – they have more at stake and more flexibility </li></ul><ul><li>Competition might come from unexpected quarters </li></ul><ul><li>Low cost airlines disrupted business for traditional carriers </li></ul><ul><li>Might second home ownership disrupt your business? </li></ul>2004
    22. 22. Coping with a Cheeky Consmer! <ul><li>Customisation </li></ul><ul><li>Choice </li></ul><ul><li>Completeness </li></ul><ul><li>Content </li></ul><ul><li>Control </li></ul><ul><li>Convenience </li></ul><ul><li>Cheap! </li></ul>2004
    23. 23. Force # 2 – Enabling Technologies <ul><li>Connectivity </li></ul><ul><li>Convergence </li></ul><ul><li>Open Standards </li></ul><ul><li>Web Services </li></ul><ul><li>File Sharing & Grid Computing </li></ul><ul><li>Nanotechnology </li></ul>2004
    24. 24. Force # 2 – Enabling Technologies <ul><li>Implications </li></ul><ul><li>Technology not the barrier to serving “cheeky customers”! </li></ul><ul><li>Every supplier will have access to the kinds of technology now proprietary to the likes of Expedia </li></ul><ul><li>Mammoth customisation, complex and rapid syndication is now possible </li></ul><ul><li>No need to allocate inventory </li></ul><ul><li>Everyone can become an intermediary, aggregating and syndicating services </li></ul><ul><li>We call it “the napsterisation of the travel industry” </li></ul><ul><li>Futuristic scenario…new property owner </li></ul>2004
    25. 25. Force # 3 – New World Views 2004
    26. 26. Force # 4 – New Organisational Structure <ul><li>Implications </li></ul><ul><li>Instead of a “sector” with a few vertically integrated multinationals and huge numbers of independent suppliers </li></ul><ul><li>Multiple, living, breathing business ecosystems interacting with and affected by many others </li></ul><ul><li>All members engaged in converting the energy (value) latent in a customer’s intent </li></ul><ul><li>Taking a Holistic view of the customer </li></ul><ul><li>Focus shifts from exploitation to support </li></ul><ul><li>Cannot act unilaterally </li></ul><ul><li>Collaborative federations are formed driven by the customer’s profile and intent – their task </li></ul>2004
    27. 27. Common Features <ul><li>Customer centric, task oriented </li></ul><ul><ul><li>Couples seeking a short break at a resort </li></ul></ul><ul><ul><li>Small peer groups seeking action packed city experience </li></ul></ul><ul><ul><li>Corporate travel managers seeking travel support for an expanding sales team </li></ul></ul><ul><ul><li>Golf event </li></ul></ul>2004
    28. 28. Common Features <ul><li>Built on a technical infrastructure that enables them to </li></ul><ul><ul><li>Identify, select and aggregate, at speed, relevant services and appropriate content that.. </li></ul></ul><ul><ul><li>Can be “mixed and matched” and mammothly customised to meet the precise needs of each customer </li></ul></ul><ul><ul><li>Syndication and distribution can be managed by marketing and sales personnel </li></ul></ul><ul><ul><li>Delivered over every channel at every stage </li></ul></ul>2004
    29. 29. Leadership Opportunity <ul><li>Marriott in the perfect position to assume a leadership position in a domain that has to “move with the times” </li></ul><ul><li>It can do this by showing both imagination and will and, most of all, by an understanding of what tomorrow’s customer will expect </li></ul><ul><li>Lessons from eBay and Enron </li></ul><ul><li>The technology is there </li></ul><ul><li>Could you show the way? </li></ul>2004
    30. 30. Thank You! <ul><li>Anna Pollock, CEO </li></ul><ul><li>DestiCorp </li></ul><ul><li>[email_address] </li></ul><ul><li>www.desticorp.com </li></ul>2004
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