A City Card for Milan

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Within the Destination Management module, a research project was carried out on the image of Milan as perceived by 1,200 tourists then present and hundreds of potential tourists in order to draw up guidelines for tourism growth strategy in the city, under the guidance of destination management academics and experts. The findings of the project, sponsored by the Milan Town Council, were discussed with the local institutions and a number of large tourism firms working in the city.
This is a proposal for a City Card for Milan. project.

Published in: Technology, Business

A City Card for Milan

  1. 1. A City Card for Milan Business Plan: Professor d’Angella Master in Tourism Management IULM University Camilla Andreani Mihaela Carp Serena Cossu Alessia Galli John Hanley Elizabeth Rodgers
  2. 2. <ul><li>Group Two has been assigned the task to create a business plan for the creation and implementation of a city card for Milan. It is proposed that the city card will assist with offering greater value and convenience to tourists in the city. </li></ul><ul><li>The project is based on the following methodology: </li></ul><ul><ul><li>a preliminary desk analysis; </li></ul></ul><ul><ul><li>a national and international benchmark analysis; </li></ul></ul><ul><ul><li>the development of the city card project. </li></ul></ul>
  3. 3. <ul><li>SECONDARY DATA </li></ul><ul><ul><li>The Internet (city card websites). </li></ul></ul><ul><ul><li>Le città europee scoprono le carte, “La Rivista del Turismo”, a European city card analysis conducted by Touring Club Italiano Research Department; 2002. </li></ul></ul><ul><ul><li>Action Plan 2008-2009-2010; Municipality of Milan. </li></ul></ul><ul><li>PRIMARY DATA </li></ul><ul><ul><li>Tourist characteristics and the perceived image of Milan; 1285 p ersonal interviews to tourists in Milan conducted by the students of Master in Tourism Management (IULM University). </li></ul></ul><ul><ul><li>The Competitiveness of Milan as a tourism destination, De Carlo M., Ongoing Research, IULM University, presented 11 April 2008. </li></ul></ul><ul><ul><li>Milano in breve 2006-2007; Municipality of Milan, Statistic Department; 2008 . </li></ul></ul>
  4. 4. <ul><li>Tourism in Milan </li></ul><ul><li>City Cards in Europe </li></ul><ul><li>City Cards in Italy </li></ul><ul><li>… in Milan </li></ul><ul><li>Marketing Mix </li></ul><ul><li>Operational Plan </li></ul><ul><li>Quantitative Analysis </li></ul><ul><li>Conclusions </li></ul>
  5. 5.
  6. 6. <ul><li>Arrivals: 3,233,696 </li></ul><ul><li>Average Stay: 2.2 nights </li></ul><ul><li>Seasonality: High levels of visitors in winter months and low in the summer. This is evidenced by hotel occupancies of up to 80% versus lows of 20%. </li></ul><ul><li>Itinerary: 70% stay in Milan only </li></ul><ul><li>Tourist Profile: 30% Leisure – more than half are 18 – 34 years old; 80% would return to Milan </li></ul><ul><li>42% Business – mostly foreigners; 59% would return to Milan 28% MICE – average stay 3.4 nights; 55% visited Milan 3 times or more </li></ul><ul><li>Tourist Perception: 55% of foreign visitors and 20% of Italians do not know the Brera District and the Sant’ Ambrogio Abbey. </li></ul><ul><li> 55% of foreign visitors and 45% of Italians are not aware of the Monumental Cemetery. </li></ul>
  7. 7.
  8. 8. <ul><li>For the tourist… </li></ul><ul><li>A tool that can enhance the quality of the holiday giving to tourists the possibility of saving money and time and deepening their knowledge of the destination. </li></ul><ul><li>For the destination… </li></ul><ul><li>An instrument potentially useful for creating an integrated offer (using major attractions as a driving force for minor ones and secluded spots), fostering cooperation among different stakeholders, and managing tourist flows and seasonality. </li></ul>
  9. 9.
  10. 10. <ul><li>MAIN TRENDS </li></ul><ul><li>More and more cities worldwide are issuing City Cards; thus having a good City Pass Card is becoming a competitive advantage for a tourist destination. </li></ul><ul><li>Presently in Europe we find three different business models for city cards: </li></ul><ul><ul><li>All inclusive (free public transport+free entrance in featured establishments) </li></ul></ul><ul><ul><li>Discount (free public transport+discounted services) </li></ul></ul><ul><ul><li>Mixed (free and discounted services). </li></ul></ul><ul><li>KEY SUCCESS FACTORS </li></ul><ul><ul><li>High quality and integrated service offer. </li></ul></ul><ul><ul><li>Good promotion and communication. </li></ul></ul><ul><li>BARRIERS TO ENTRY </li></ul><ul><ul><li>Initial budget. </li></ul></ul><ul><ul><li>Achieving solid patnership and commitment from stakeholders. </li></ul></ul>
  11. 11. <ul><li>A deep analysis of the European City cards (see the Word file) showed which are the best practices to follow in the creation and implementation of a City Card. </li></ul><ul><li>Here a summary, with some outstanding cases. </li></ul><ul><li>TARGET MARKETS </li></ul><ul><li>City Cards applying price differentiation: different prices for different categories (i.e: young people). </li></ul><ul><li>City Card entailing tailored services for specific segments </li></ul><ul><ul><li>Madrid Card Niños: provides discounts on attractions for children (different from the ones included in the regular Madrid Card). </li></ul></ul><ul><li>City Cards addressed to the Mice segment (it can be a competitive advantage for the destination when bidding for hosting an event) </li></ul><ul><ul><li>Frankfurt Kongress Museums Ticket: 1 euro card (providing free admission to 29 museums) sold to congress organizers, hotels, incentive and special-event agencies for their clients. </li></ul></ul>
  12. 12. <ul><li>TECHNOLOGY </li></ul><ul><li>Smart City Cards that can collect data and being a tool to study tourist flows behaviour </li></ul><ul><ul><li>Madrid , Burgos , Cordoba , Sevilla Cards: have an intelligent chip that is recognized by the electronic validation terminals placed in each of the participating establishments. </li></ul></ul><ul><li>Innovative Smart City Cards </li></ul><ul><ul><ul><ul><li>Salzburg Swacth Access: all the services provided by the regular City Card can be transferred to a wristwatch with an integrated microchip (available at all Swatch shops around the world). Services are deducted by inserting the chip card in the participating retailers terminals or by waving the watch across them. </li></ul></ul></ul></ul>
  13. 13. <ul><li>TOURISM PROBLEM SOLVING </li></ul><ul><li>Attempt to forecast tourist flows encouraging City Cards advanced purchase. </li></ul><ul><li>Use of the City Card as a tool to face seasonality issues </li></ul><ul><ul><li>Dubrovnik Winter Card: a free discount card aiming at increasing the number of visitors in the off-peak season. </li></ul></ul><ul><li>DISTRIBUTION </li></ul><ul><li>Facilitated distribution of the City Cards through the Internet, kiosks in the city and availability abroad. </li></ul>
  14. 14. <ul><li>ENVIRONMENTAL CONCERN </li></ul><ul><li>City cards that include free public transport. </li></ul><ul><li>City Cards as a tool to boost alternative means of transport </li></ul><ul><li>(i.e.: discount on bike rentals). </li></ul><ul><li>DIFFERENTIATION </li></ul><ul><li>Offer of unique services </li></ul><ul><ul><li>Reykjavik Tourist Card: offers free internet access in the city centre. </li></ul></ul><ul><li>Focus on the customer </li></ul><ul><ul><li>Budapest Card: tourists can have assistance calling the 24h call centre. </li></ul></ul>
  15. 15.
  16. 16. <ul><li>We have analyzed the major Italian city cards: </li></ul><ul><li>ROMA : Roma Pass Roma & Più Pass (start date: 2006) </li></ul><ul><li> Validity: 3 days / 20 € Validity: 3 days / 25€ </li></ul><ul><li>VENEZIA : Venice Card Transport and Culture (2001) </li></ul><ul><li> Validity: 3 days (16 different prices) </li></ul><ul><li>TORINO : Torino + Piemonte Card (2000) </li></ul><ul><li> Validity: 2, 3, 5, 7 days / 18, 21, 31, 35 € </li></ul><ul><li>NAPOLI : Campania > Arte Card (2002) </li></ul><ul><li> validity: 3, 7 days / 25, 28 € (for 18-25 years old: 18, 21 €) </li></ul><ul><li>All cities use a mixed city card model, which offers public transport, some free entrances and discounts to museums and attractions. </li></ul>Italian City Cards
  17. 17. <ul><li>... IN MILAN </li></ul>
  18. 18. <ul><li>STRENGTHS </li></ul><ul><li>Affordable public transport when compared to other European cities. </li></ul><ul><li>Accessible airports and railway stations. </li></ul><ul><li>Variety of tourism offer. </li></ul><ul><li>Advantageous location: near to the lake district. </li></ul><ul><li>WEAKNESSES </li></ul><ul><li>Poor price/quality ratio of hotels and supporting services. </li></ul><ul><li>Lack of public-private partnerships. </li></ul><ul><li>Hard to find tourist information and ineffective tourism communication. </li></ul><ul><li>No single official website. </li></ul><ul><li>Lack of convention bureau. </li></ul><ul><li>OPPORTUNITIES </li></ul><ul><li>Potential for increasing awareness of Milan as a leisure destination. </li></ul><ul><li>International tourists are increasing the average number of journeys per year. </li></ul><ul><li>Increase of Mice industry. </li></ul><ul><li>Expo 2015. </li></ul><ul><li>Enlargement of European community: more tourism flows. </li></ul><ul><li>THREATS </li></ul><ul><li>Italian bureaucracy allows time for competitors to increase market share. </li></ul><ul><li>Enlargement of European community: increasing competition. </li></ul>
  19. 19. <ul><li>The first city card for Milan and surrounding areas offering free entrances in the major museums and a variety of discounts for cultural attractions, shops and restaurants. </li></ul><ul><li>Three versions of the card are proposed: </li></ul><ul><li>MY MILANO CARD </li></ul><ul><li>The access card to the city which will allow leisure and business tourists to discover and enjoy the sights of Milan. </li></ul><ul><li>MY MILANO CARD PLUS </li></ul><ul><li>The pass for the city and the lake district giving the tourists the possibility of </li></ul><ul><li>experiencing a unique mix of cultural and natural beauties. </li></ul><ul><li>MY MILANO CARD LIGHT </li></ul><ul><li>A new product aimed specifically at convention and congress attendees, sold exclusively to PCOs. </li></ul>
  20. 20. <ul><li>BENEFITS </li></ul><ul><ul><li>Increasing tourists’ average length of stay and expenditure in Milan. </li></ul></ul><ul><ul><li>Enhancing the competitiveness of the destination. </li></ul></ul><ul><ul><li>Attracting more tourists in off-peak seasons (especially through My Milano Card Plus). </li></ul></ul><ul><ul><li>Having a better tourism flows management through the employ of technology. </li></ul></ul><ul><ul><li>TECHNOLOGICAL FEATURES </li></ul></ul><ul><ul><li>My Milano Card and My Milano Card Plus are provided with a smart chip that gives the opportunity of collecting data about tourist flows and behaviours: expenditure, activities, timing and most popular itineraries. </li></ul></ul><ul><ul><li>Compatibility with existing ATM electronic validation terminals is suggested. </li></ul></ul>Benefits & Features
  21. 21. <ul><li>Primary : LEISURE </li></ul><ul><li>As a business destination Milan has some seasonality problems that could be solved attracting more leisure tourists. </li></ul><ul><li>CITY CARD ADVANTAGES </li></ul><ul><ul><li>FOR TOURISTS: the chance to have an integrated and well communicated offer </li></ul></ul><ul><ul><li>FOR THE DESTINATION: a means to attract price sensitive tourists, such as young people and families. </li></ul></ul><ul><li>Secondary: MICE </li></ul><ul><li>The congress segment is an opportunity to be exploited because of its high spending power and its potential to enhance the image of the city at an international level. </li></ul><ul><li>CITY CARD ADVANTAGES </li></ul><ul><ul><li>FOR DELEGATES: a free tool to encourage a longer stay in the city. </li></ul></ul><ul><ul><li>FOR THE DESTINATION: the card could be a competitive advantage for Milan, letting it grow as a congress destination </li></ul></ul>
  22. 22. VALIDITY For the My Milano Card it was decided not to have a one day card as the card holder was unlikely to overnight in Milan, hence would not facilitate the objective of increasing visitor LOS. My Milano Card Plus aims at increasing visitor spending in Milan and the surrounding areas. My Milano Card Light has a validity of five days only in order to increase the delegates’ willingness to stay in Milan. Validity and Price PRICE Prices have been defined through an international benchmark. Proposed prices are lower than the European average city card price but higher than the Italian mean. Our pricing policy aims at pushing the sales of the longest version of each card. Through My Milano Card Light we are trying to capitalize on bulk buying and to offer some value added proposition to PCOs Validity (days) Price (€) My Milano Card 2 – 3 23 - 28 My Milano Card Plus 5 – 7 39 - 45 My Milano Card Light 5 5
  23. 23. <ul><li>CARD NAME </li></ul><ul><li>MY MILANO CARD: our card name combines two strong elements “My” and “Milano”, emphasizing the international attitude of this Italian city. Moreover the adjective “MY” highlights the centrality of the tourist, who can “own” the city thanks to the card. </li></ul><ul><li>MY MILANO CARD PLUS: the “PLUS” refers to the added value provided by this card, which widens the range of services available to the tourist. </li></ul><ul><li>MY MILANO CARD LIGHT: the adjective “LIGHT” refers both to the different thickness of the card and to its reduced price. </li></ul><ul><li>WHAT ARE WE DOING DIFFERENTLY FROM OTHER CITY CARDS? </li></ul><ul><li>MY MILANO CARD PLUS: </li></ul><ul><li>the concept of a city card including the surrounding area already exists in other European destinations, but the innovation introduced through My Milano Card Plus is to integrate the tourism offer of a whole geographical district, gathering territories belonging to different provinces. </li></ul>
  24. 24.
  25. 25. <ul><li>TRANSPORT </li></ul><ul><li>Free public transport. </li></ul><ul><li>20 % discount on private transport: </li></ul><ul><ul><li>Citysightseeing Bus Tour; </li></ul></ul><ul><ul><li>Navigli boat tour with Navigli Lombardi s.c.a.r.l.; </li></ul></ul><ul><ul><li>Bike rentals. </li></ul></ul><ul><li>MUSEUMS </li></ul><ul><li>Priority access to Cenacolo; </li></ul><ul><li>50% discount on Musei del Castello Sforzesco, Museo nazionale della scienza e della tecnica, Museo di storia naturale, Pinacoteca di Brera and Duomo; </li></ul><ul><li>Free entrance to all other museums and cultural sites. </li></ul><ul><li>OTHER </li></ul><ul><li>Discounts in several shops, restaurants and hotels. </li></ul><ul><li>Skip queuing </li></ul>
  26. 26. <ul><li>CHIP CARD </li></ul><ul><li>PROMINENT DISPLAY OF CARD NAME </li></ul><ul><li>PICTURES OF: </li></ul><ul><ul><li>- city landmark: DUOMO + GALLERIA VITTORIO EMANUELE </li></ul></ul><ul><ul><li>- Modernity and design: CADORNA’S MONUMENT </li></ul></ul><ul><ul><li>- public transport : TRAM </li></ul></ul><ul><ul><li>- participating museum: CASTELLO SFORZESCO </li></ul></ul><ul><ul><li>- City sights: NAVIGLIO </li></ul></ul>
  27. 27.
  28. 28. <ul><li>All the services included in My Milano card </li></ul><ul><li>plus : </li></ul><ul><li>20% discount on airport transfers to Malpensa and Orio al Serio </li></ul><ul><li>20 % discount on lake boat tours; </li></ul><ul><li>50% discount on the major museums of the lake district; </li></ul><ul><li>Free entrance to all the other cultural sites of the surrounding area. </li></ul><ul><li>And more : </li></ul><ul><li>50% discount on Milan and lake district tourist guide books; </li></ul><ul><ul><li>(a tool to encourage tourist flows in the whole area). </li></ul></ul><ul><li>eligibility to win prizes through the related raffle. </li></ul><ul><ul><li>(a promotional strategy to boost My Milano Card Plus sales) </li></ul></ul>
  29. 29. CHIP CARD PROMINENT DISPLAY OF CARD NAME PICTURES OF: - Surrounding area: COMO LAKE - City landmark: DUOMO - Modernity and design: CADORNA’S MONUMENT - Public transport : TRAM - Participating museum: CASTELLO SFORZESCO - City sights: NAVIGLIO
  30. 30.
  31. 31. The Light version includes all the features of My Milano Card except free public transport. This special product has been targeted particularly to the MICE segment and is available only to PCOs. The discounted price of My Milano Card Light is appealing to congress organizers, who are also free to buy the others two card options if they prefer. Congress participants will receive it for free.
  32. 32. CARD with MAGNETIC STRIP PROMINENT DISPLAY OF CARD NAME PICTURES OF: - City landmark: GALLERIA VITTORIO EMANUELE + DUOMO - Modernity and design: CADORNA’S MONUMENT - City congress centre: RHO FIERA - Target Market: MICE - Participating museum: CASTELLO SFORZESCO - City sights: NAVIGLIO
  33. 33. <ul><li>CONDITIONS </li></ul><ul><ul><li>Personal and not transferable; </li></ul></ul><ul><ul><li>Not-refundable, non-exchangeable; </li></ul></ul><ul><ul><li>Usable on consecutive calendar days; </li></ul></ul><ul><ul><li>Maximum 2 children (under age of 14 years) free per card holder; </li></ul></ul><ul><ul><li>Valid only once in free attractions. </li></ul></ul><ul><li>EXTRA MATERIAL </li></ul><ul><li>The following will be provided at the time of purchasing the card: </li></ul><ul><ul><li>a multilingual brochure including all participating retailers divided by kind of service provided (museums, restaurants, shops), specifying address, contacts, closing days, prices, timetables and special conditions (i.e: for Cenacolo it would be emphasized that reservation is compulsory); </li></ul></ul><ul><ul><li>pocket city and metro maps. </li></ul></ul>
  34. 34.
  35. 35. <ul><li>ADVERTISEMENTS </li></ul><ul><li>My Milano Cards will be advertised through free newspapers: </li></ul><ul><li>NATIONAL TARGET: Newspapers available in the underground (i.e. Metro, Leggo), periodical offered in restaurants and bars (i.e. Milanomese); </li></ul><ul><li>INTERNATIONAL TARGET: Newspapers in English at the Tourist Information Office (i.e. Hello MIlano). </li></ul><ul><li>The brochure of the card will be freely distributed through Tourism Offices and a PDF version of it will be downloadable from the website www.comune.milano.it. </li></ul><ul><li>PUBLIC RELATIONS </li></ul><ul><li>Press releases; </li></ul><ul><li>Preview of the My Milano Cards, to be launched in the summer 2009. </li></ul>
  36. 36. TREASURE HUNT Objective – To extend visitors’ awareness of Milan and encourage them to go to the city’s unfamiliar “treasures” providing an incentive for their visit. How it will work – An activity sheet will be provided to each of the visitors for them to partake in. Riddles such as “Give the title of the painting by Bruno Munari created in 1956” along with the scavenger hunt items can be used. RAFFLE Objective – An added-value element for the Milan Plus card that allows buyers to become eligible to win grand prizes by simply purchasing this card. How it will work – A drawing will be held once each year where a grand prize will be given to the visitor whose ticket selected. The drawing can be attached to a major visitor-centred event and the ticket can be drawn by a prominent guest. SALES PROMOTIONS The following ideas are presented in an effort to support the ongoing sales and marketing
  37. 37. <ul><li>ONLINE </li></ul><ul><ul><li>Milan website: www.comune.milano.it (encouraging advanced purchase through a discount) </li></ul></ul><ul><ul><li>City Card distribution websites (i.e. Groundline, European City Cards) </li></ul></ul><ul><li>IN MILAN </li></ul><ul><ul><li>Tourism office in the city centre: Piazza Duomo; </li></ul></ul><ul><ul><li>Railway / Major tube station: Centrale, Cadorna, Garibaldi and Duomo; </li></ul></ul><ul><ul><li>Major Airports: Linate and Malpensa </li></ul></ul><ul><ul><li>Selected newsagents </li></ul></ul><ul><ul><li>Featured hotels </li></ul></ul><ul><ul><li>Participating retailers </li></ul></ul><ul><li>ABROAD </li></ul><ul><ul><li>Travel agencies </li></ul></ul><ul><ul><li>ENIT offices </li></ul></ul>
  38. 38.
  39. 39. <ul><li>The creation of a City Card for Milan has been planned by the local administration in the Action Plan towards 2010 (“Relazione revisionale programmatica 2008 -2010”). </li></ul><ul><li>The public organitazion in charge of its development is the Tourism, territorial marketing and identity department of Comune di Milano. </li></ul><ul><li>This body is currently seeking a potential card manager, able to co-finance and implement the initiative. </li></ul><ul><li>The type of contract for this patnership has still to be defined. </li></ul>
  40. 40. <ul><li>Set up the Card Management Association and create office with related personnel; </li></ul><ul><li>Create and get signed the contracts for all participating businesses: museums, shops, restaurants… </li></ul><ul><li>Order 50.000 chip cards, 20.000 magnetic strip cards and related technologies; </li></ul><ul><li>Order and install special machines in each of the locations; </li></ul><ul><li>Once the cards are received and verified, send to distribution channels; </li></ul><ul><li>Add one person managing direct line for card holders at the Cenacolo’s call centre; </li></ul><ul><li>Time requirements: 1 year </li></ul><ul><li>estimated launch in July 2009. </li></ul>
  41. 41. The following companies, operating in the plastic card sector, were contacted in order to obtain technological consultancy and quotes:
  42. 42. Integrated Ethernet interface terminals for data collection and access control. Unitary Price: € 1.450,00 Among all suppliers contacted, we decided to base our quantitative analysis on the quotation provided by Codarini, because it includes also terminals, compatible to ATM technology. 50.000 chip cards Unitary price: € 0,70 20.000 magnetic strip cards Unitary price: € 0.115 CITY CARDS AND RELATED TECHNOLOGY: CITY CARD BROCHURES: 150,000 brochures / Cost for 1 copy = 0.031€ total amount 4,650 € copy writer: 2,000 €
  43. 43.
  44. 44. The first 100 companies will pay 50€ as a membership fee which includes promotional costs.
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  46. 46.
  47. 48. <ul><li>Milan is one of the few remaining major European urban centers without a city card. </li></ul><ul><li>Its implementation is forecast to be a profitable venture despite the initial costs. </li></ul><ul><li>REQUIREMENTS FOR SUCCESS </li></ul><ul><ul><li>An independent card manager to ensure the card’s sustainability. </li></ul></ul><ul><ul><li>Clear communication and collaboration amongst stakeholders. </li></ul></ul><ul><ul><li>Accurate and reliable recording and analysis of data collected from the cards. </li></ul></ul><ul><ul><li>Willingness to adjust and refine the Milan city card. </li></ul></ul>

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