Tourism industry of the 21st century: scenarios and trends, supported by President Obama

1. Introducing tourism industry:
industry:
destinations and tour operators
by Roberto Gentile
y
1st session, January 31st, 2011
session,

2. We are the
nation of
Google and
G l d
Facebook.
Facebook
Barack Obama's
State of the Union
Speech
Tucson, January 27th, 2011

3. That world has changed.
And for many, the change
many
has been painful. I've
seen it in the shuttered
windows of once
booming factories, and
the vacant storefronts of
once busy Main Streets.
I've heard it in the
frustrations of
Americans who've seen
e ca s o e see
their paychecks dwindle
or their jobs disappear –
proud men and women
who feel like the rules
have been changed in the
middle of the game.

4. They're right. The rules
have changed. In a single
changed
generation, revolutions
in technology have
transformed the way we
live, work and do
business.
business. Steel mills that
once needed 1,000
workers can now do the
same work with 100.
Today, just about any
oday, a y
company can set up shop,
hire workers, and sell
their products wherever
there's an internet
connection.
connection.

5. Meanwhile, nations like
China and India realized
that with some changes of
their own, they could
compete in this new world.
world.
And so they started
educating their children
earlier and longer, with
g
greater emphasis on math
p
and science. They're
investing in research and
new technologies. Just
h l i
recently, China became
home to the world s
world's
largest private solar
research facility, and the
y,
world's fastest computer.
computer.

6. The first step in winning
the future is encouraging
American innovation.
innovation.
None of us can predict
with certainty what the
next big industry will be,
or where the new jobs will
come from. Thirty years
ago,
ago we couldn't know that
something called the
Internet would lead to an
te et ou d ead a
economic revolution.
revolution.
What we can do – what
America does better than
anyone – is spark the
creativity and imagination
of our people.

7. We are the nation that
put cars in driveways
and computers in
offices; the nation of
Edison and the Wright
brothers; of Google
and Facebook. In
Facebook.
America,
America innovation
doesn't just change
our lives. It s how we
lives It's
make a living.
Barack Obama
President of the United States
of America
fA i

8. 1. IDENTIFY YOURSELF

9. Are you a Traveller ?
Traveller...

10. … or are you a T i t?
Tourist
Tourist?
t?

11. You are a real traveller if…
if
you avoid travel agencies and you tailor your
trip to your own needs
you think Bruce Chatwin or Tiziano Terzani are
the best it
th b t writers ever
you lo e strolling around, getting to know
o love aro nd kno
local people and tasting local food
p p g
..it doesn’t really matter what you see but how
you experience it…

12. You are just a tourist if
if…
your luggage contains mainly high heels shoes (if
you are ♀) and D&G sneakers (if you are ♂)
you are disappointed as your smartphone is out of
coverage and you cannot get on Facebook
you know who has been nominated for Best Actor
at the Golden Globe Awards but you have no idea
which the Estonia capital is
..all you need is to relax under the sun have fun and
all sun,
have a beer: no stress, please!...

13. So… Now that you
know who you are
are…
Are you ready to
take off?

14. 2. EGYPT DID A GREAT JOB IN
DEVELOPING TOURISM IN THE
RED SEA AREA
… How did they manage to
do that?
that?...
that?
?...

15. That s the story : the 30s
That’s
Everything started with a
y g
few pos British tourists
e posh s ou s s
picnicking at Giza and the
Pyramids…

16. the 80s
… th cruising from Luxor to
then i i f L t
Aswan became an attractive,
A b i
but still elitaristic, place to
go…

17. the 90s
… the Red Sea Riviera was
turned into a gold mine
targeting both divers and
families…
Sharm El Sheik anyone?!

18. until yesterday
It is still a market in
evolution... New places to
discover: Marsa Alaam,, El
Alaam
Queseir,, Marsa Matrouth,,
Q
Queseir Matrouth
Nweba

19. but today...

20. ... and then , what’s going to
happen to the Egyptian
tourism industry?
Maybe, almost nothing...
Maybe nothing

21. Egypt
Nothing compares!
g p
Welcome to our interactive
catalogue!

22. How has the Egyptian
touristic market evolved
overtime?

23. Giza and the Pyramids
target: up-market
up-
worldwide travellers,
interested in culture and
history,
history expecting top level
services and facilities

24. cruising on the Nile
target: couples and honey-mooners
honey-
in search of a good mix of culture
history, good food, shopping and
entertainment… but also looking
for time to relax

25. Sharm el Sheikh & Co.
target: tout le monde
the initial-goers, divers, were
initial-
followed by the so-called IT
so-
people, groups of teen&yang,
l f
empty nesters, DINK couples
t t l
and families with children
ith

26. How the Red Sea Riviera defeated
Mallorca, Greece, Tunisia
1. Open 12 months/year
p y
2.
2 Mild temperature all over the year
3.
3 Accommodations (from b&b up to 5
5*
hotel) suiting all tastes
4. cheaper prices compared to competitors
4

27. How the Red Sea Riviera defeated
Mallorca, Greece, Tunisia
5. the 3 S: clear sea, sandy beaches,
hot sun (maybe there’s another one…)
h ( b h ’ h )
6. word of mouth: You go, I follow you
7. Trend setters (actresses, rock
setters’
stars,, TV starlets,, footballers)
followers

28. How Red Sea Riviera defeated
Mallorca, Greece, Tunisia
8. safer than other countries (well, not
always...)
9. huge investment in marketing
initiatives, advertising and promotion
10. …… You find!!

29. Exercise # 1
Think of how to turn your
country in a new gold mine
for tourism

30. Identify one convincing “reason why” tourists
should visit your Country
Set
S your own target: tourists, b k-packers,
i back-
back k
worldwide travellers, families etc..
choose THE attraction not to be missed
find at least 3 typical local p
yp products and
identify a way to sell them
… you have no budget limits (advertising,
promotion,
promotion fam trip etc )
etc.)…

31. 3. EUROPEAN TOUR
OPERATORS: NUMBERS
AND TRENDS

32. How travels have been sold on line in
Europe, 1998 trough 2009 (billion €)
E t h (billi
2004
350
€ 18.9 billion
…% = in % sul mercato globale
9,5% market share 300
25,7%
25 7%
250
22,5%
2008 200
19,4%
16,1%
€ 58,4 billion 12,9%
9,5%
150
22,5% market share 6,5%
4,0%
100 2,3%
2 3%
1,1%
2009 50 0,4%
0,1%
€ 65,2 miliardi 0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
25,7% del mercato
M ercato viag gi Vend ite on line

33. Leading tour operator s, in Italy and in Europe: a comparison
Turnover Growth Turnover Growth
2009 2009/2008 2009 2009/2008
Company (billion €) Country (billion €)
(
Company
Gruppo Alpitour 1090,2 -11,9% TUI AG D/UK 14.255,4 -28,3%
Gruppo Ventaglio 443,1 -
Thomas Cook UK/D 10.403,4
10 403 4 -6%
6%
Eden Viaggi 258 -2%
Hotelplan Italia 183,2 -25,6% Rewe Group D n.d. -
Teorema Tour default -
Kuoni
K i CH 2.578,5
2 578 5 -15,7%
15 7%
Valtur 215 +3%
Veratour 170 -4% Club Med F 1.360 -8,3%
Eurotravel default -
Alltours
Settemari 98 -8% D 1.220 -6,2%
I Grandi Viaggi 85,3 -14,9% FTI Group D 1.093 +24,4%
In Viaggi n.d.
Alpitour I 1.090,2 -11,9
Kuoni Italy 69,5 -23,9%
p
Hotelplan CH 1.071,5 -11,8%
,
Swan Tour 86 -11%
11%

34. Number of Tour Operators and Travel Agents in Europe (2009)
2005 2006 2007 2008
Austria 2.522 2.645 2.571 2.583
Belgio 1.223 1.145 1.158 1.158
Bulgaria 1.196 1.670 2.068
Repubblica C
R bbli Ceca 6.396
6 396 2.350
2 350 2.450
2 450
Danimarca 627 603 599 594
Finlandia 1.016 795 780 710
Francia 4.922
Germania 12.639 11.866 11.404 11.046
Grecia 3.277
Ungheria 1.799 1.116 1.137 1.122
Irlanda 320
Italia 11.124 9.800 11.846
Malta 669 239 248
Olanda 2.355
Norvegia 948
Portogallo 1.484 869
Polonia 5.184 2.628
Romania 1.989 2.600 2.950 3.200
Slovacchia 402 502 600 650
from:
Slovenia 365 356 376
Spagna 8.373 5.258 5.600 5.100
Svezia 2.826 800
Svizzera 2.200 2.200
Gran Bretagna 6.663 6.124 6.108 5.858

35. VERTICAL INTEGRATION OF THE EUROPEAN
LEADING TOUR OPERATORS: A FAILURE
Milan, april 2008 - “The failure of the model of vertical
integration of tour operators, much in vogue in the
g f p , g
'90s, is obvious. The German conglomerate Preussag
(TUI meant that ten years ago, Thomson, Nouvelles
Frontières, and shares in Club Med and Alpitour) lost
300 million € from 2003 to date ...”

36. “ …The error was pay more attention to volumes in
the proper management of business and product.
Error that the specialists have not made, the market
as those closer to the needs of consumers. "
Jean Pi
J Pierre L
Lozato Jotart, professor of tourism and
J f f i d
culture at the New Sorbonne in Paris

37. Here’s the Boss, Michael Frenzel
,

39. rgentile@network-
rgentile@network-news.it