1
jfotis@bournemouth.ac.uk
Social media impact on leisure travel:
The case of the Russian market and the challenges for
the Cyprus Tourism Industry
Preliminary Findings
John Fotis, PhD Researcher, PT Lecturer
School of Tourism, Bournemouth University
Dr. Nicos Rossides, Chief Executive Officer
MASMI Research Group
Prof. Dimitrios Buhalis,
Established Chair in Tourism,
School of Tourism, Bournemouth University
2
jfotis@bournemouth.ac.uk
Web 2.0: Users as content creators
Web 2.0 “empowered” consumers by enabling them to generate their own content through a
range of devices and platforms that are easy to use.
A significant number of consumers are now able to use the web, not only as recipients of
information (Web 1.0 era), but also as information and content creators for others.
3
jfotis@bournemouth.ac.uk
Phenomenal success of social media
• Facebook (2010): +517m users
• Twitter (2010): 160m users; 90m tweets/day
• Flickr (2010): 5bn pictures; +3000 pictures /min
• Blogs worldwide: +200m
• Youtube (2010): 2bn videos seen/day; 24hrs of videos
uploaded/min
• Foursquare (2010): 3m users
4
jfotis@bournemouth.ac.uk
Definitions “...online applications, platforms and media
which aim to facilitate
interaction, collaboration and the sharing of content”
(Richter & Koch 2007)
“activities, practices and behaviours
among communities of people who gather online to share information,
knowledge, and opinions using conversational media.
Conversational media are Web-based applications that make it possible
to create and easily transmit content
in the form of words, pictures, videos, and audios.
(Safko and Brake 2009)
”...a group of Internet-based applications
that build on the ideological and technological foundations of Web 2.0,
and that allow the creation and exchange
of User Generated Content”
(Kaplan and Haenlein 2010)
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jfotis@bournemouth.ac.uk
Source: Cavazza 2009
6
jfotis@bournemouth.ac.uk
7
jfotis@bournemouth.ac.uk
Social media and tourism
SM seem to change significantly the way individuals plan and
consume travel:
• 82% of US online consumers have checked online
reviews, blogs and other online feedback for their travel
related purchasing decisions (eMarketer, 2008).
• TripAdvisor (2010), hosts over 40 million user-generated
reviews and opinions, used by more than 40 million
website visitors per month.
8
jfotis@bournemouth.ac.uk
Social media are becoming
increasingly important in tourism
• Experiential nature / complexity / high cost of tourism products
• Potential tourists rely on others’ experiences for their decision
making, decreasing uncertainty and increasing the exchange
utility
• Social media enable storytelling, a usual post-travel
engagement to a larger audience, while providing a sense of
belonging in virtual travel communities.
• The content of on-line communities is perceived as similar to
recommendations provided by friends, family members or even
“like-minded souls” becoming vital information source to
potential tourists.
9
jfotis@bournemouth.ac.uk
Research Purpose
• To investigate the role and impact of social media on how
Russian holidaymakers plan and consume holidays
• To explore determinants of acceptance and usage levels
of SM as marketing and communication tools, by the
Cyprus tourism industry.
10
jfotis@bournemouth.ac.uk
Rationale of context
Russia has the most engaged social networking audience worldwide in
terms of time spent /user (ComScore 2010):
34.5 million Russian internet users (74.5% of the online population)
visited at least one social networking site, spending an average of 9.8
hours /visitor during the month ranking it #1 among all countries in social
networking engagement.
Russia is Cyprus’...
• Second most important incoming holiday market
• Most promising market in terms of per capita tourism receipts
11
jfotis@bournemouth.ac.uk
Research objectives
To measure Russians’ holidaymakers:
1. Exposure to SM before, during and after their trip;
2. Level of influence that SM have on their holiday plans
3. Level of trust / credibility towards SM, in relation to
traditional sources of holiday related information.
Quanti
Quali
To explore among Cyprus tourism industry’s stakeholders
4. The perceived importance of SM as marketing tools,
5. The underlying reasons determining acceptance and
usage level of SM as part of their organization’s
communication tools.
12
jfotis@bournemouth.ac.uk
Design / Methodology / Approach
Two stage research design:
• Quantitative (Objectives #1, #2, #3)
A questionnaire survey to MASMI’s online Russian panel
(n=329)
• Qualitative (Objectives #4, #5)
A number of in-depth semi-structured interviews with key
stakeholders of the Cyprus tourism industry.
13
jfotis@bournemouth.ac.uk
Cyprus 9th in terms of consideration
Q. Which countries did you consider?
48%
37%
24%
18%18%
15%
10%10%10%10% 9% 9% 9% 7% 7% 7% 7% 6% 6% 5% 5% 4% 4% 4%
Base: Travelled P12M
14
jfotis@bournemouth.ac.uk
Turkey, Ukraine, Egypt: top 3 destinations
Cyprus ranked 23rd
Q. Which country did you go to?
22%
16%
12%
5%
4% 4% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1%
Base: Travelled P12M
15
jfotis@bournemouth.ac.uk
Cyprus possibly missing opportunities
• Cyprus has low conversion rates
• Ukraine, Belarus, Turkey, Egypt have high conversion rates
68%
47% 45%
31%
25%
21% 21% 20%
16% 16% 15% 15%
10%
Ukraine
(24%)
Belarus
(10%)
Turkey
(48%)
Egypt
(37%)
Italy
(15%)
Thailand
(10%)
Czech
Rep
(7%)
Bulgaria
(18%)
Austria
(9%)
Tunisia
(9%)
Greece
(18%)
Spain
(10%)
Cyprus
(9%)
NB. Ratio from consideration to final decision
(in brackets: %age consideration)
Base: Travelled P12M
16
jfotis@bournemouth.ac.uk
12 days is the average length of stay
Expected high influence from packages offered by travel agents
20%
18%
14%
7%
6%
5% 5%
3%
10 7 14 5 12 8 15 3
Base: All travelled in P12M
Nights stayed
17
jfotis@bournemouth.ac.uk
A high 73% visited SM when planning
Q. Did you visit social media when planning your holidays
73%
10%
17%
Yes No Cannot remember
Base: All travelled in P12M
18
jfotis@bournemouth.ac.uk
63% use SM to find alternatives
Q. Why did you use SM when planning?
63%
33%
45% 47%
56%
To search for
destination ideas
To narrow down
my destination
choice
To confirm that I
made a good
destination choice
To seek ideas &
info on
accommodation
options
To seek ideas &
info on leisure
activities
Base: All who used SM when planning
Before deciding on destination After deciding on destination
19
jfotis@bournemouth.ac.uk
Info from friends & travellers sought
Q. Which of the following did you use, to find info about your holidays …?
Base: All who used SM when planning
4%
7%
11%
12%
17%
36%
39%
40%
41%
41%
45%
64%
76%
Advertisements in radio
Advertisements in newspapers
Advertisements in magazines
Advertisements in TV
Documentaries in radio
Company owned websites
Articles in newspapers
Articles in magazines
Travel agents
Official tourism websites
Shows or documentaries in TV
Suggestions from friends and relatives
Information and reviews provided by other…
20
jfotis@bournemouth.ac.uk
Trust in friends, travellers & SM
Q. How much do you trust holiday info found in …?
Base: All who used SM when planning
23%
31%
34%
47%
57%
69%
92%
Advertisements
Travel agents
Holiday documentaries
Official tourism websites
Social Media
Holiday info from travellers
Holiday info from friends
NB. %age positive responses
21
jfotis@bournemouth.ac.uk
SM influential on destination
Q. How much were you influenced on choice of destination?
7%
5% 5%
15%
32%
22%
14%
1 2 3 4 5 6 7
Base: All who used SM when planning NB. 7-point scale
Ave. Score: 4.8 out of 7
22
jfotis@bournemouth.ac.uk
SM influential on accommodation
Q. How much were you influenced on choice of accommodation?
10%
5%
9%
16%
23%
20%
16%
1 2 3 4 5 6 7
Base: All who used SM when planning NB. 7-point scale
Ave. Score: 4.7 out of 7
23
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2 in 3 made changes based on SM info
Q. Did you make any changes to your original holiday plans because of
info you found in social media websites?
48%
15%
35%
2%
Made a few changes Made significant
changes
No changes Not sure
Base: All who used SM when planning
24
jfotis@bournemouth.ac.uk
Experiences fed back to SM – a full circle
Q. After holidays, for what reason did you use any social media websites?
78%
27% 28%
12%
To share
experiences/photos
To provide reviews To get ideas for next
holidays
Did not visit/use any SM
Base: All travelled in P12M
25
jfotis@bournemouth.ac.uk
Important to keep in touch with friends
Q. During holidays, for what reason did you use social media websites?
28%
18%
49%
15%
2%
31%
To find out info
on leisure
activities
To provide
comments on
experiences
To stay
connected with
friends
Used SM but not
related to
holidays
I cannot
remember
Did not visit any
SM
Base: All travelled in P12M
26
jfotis@bournemouth.ac.uk
In conclusion
• Social media play an important role in travel behavior
• Consumers are engaged throughout the process
• Cyprus enjoys high consideration yet can do better in
converting
Pre During Post
27
jfotis@bournemouth.ac.uk
John Fotis
jfotis@bournemouth.ac.uk
Prof. Dimitrios Buhalis
dbuhalis@bournemouth.ac.uk
Thank you
Dr. Nicos Rossides
nicos.rossides@masmi.com

Social media impact on leisure travel: The case of the Russian market and the challenges for the Cyprus Tourism Industry. Preliminary Findings

  • 1.
    1 jfotis@bournemouth.ac.uk Social media impacton leisure travel: The case of the Russian market and the challenges for the Cyprus Tourism Industry Preliminary Findings John Fotis, PhD Researcher, PT Lecturer School of Tourism, Bournemouth University Dr. Nicos Rossides, Chief Executive Officer MASMI Research Group Prof. Dimitrios Buhalis, Established Chair in Tourism, School of Tourism, Bournemouth University
  • 2.
    2 jfotis@bournemouth.ac.uk Web 2.0: Usersas content creators Web 2.0 “empowered” consumers by enabling them to generate their own content through a range of devices and platforms that are easy to use. A significant number of consumers are now able to use the web, not only as recipients of information (Web 1.0 era), but also as information and content creators for others.
  • 3.
    3 jfotis@bournemouth.ac.uk Phenomenal success ofsocial media • Facebook (2010): +517m users • Twitter (2010): 160m users; 90m tweets/day • Flickr (2010): 5bn pictures; +3000 pictures /min • Blogs worldwide: +200m • Youtube (2010): 2bn videos seen/day; 24hrs of videos uploaded/min • Foursquare (2010): 3m users
  • 4.
    4 jfotis@bournemouth.ac.uk Definitions “...online applications,platforms and media which aim to facilitate interaction, collaboration and the sharing of content” (Richter & Koch 2007) “activities, practices and behaviours among communities of people who gather online to share information, knowledge, and opinions using conversational media. Conversational media are Web-based applications that make it possible to create and easily transmit content in the form of words, pictures, videos, and audios. (Safko and Brake 2009) ”...a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of User Generated Content” (Kaplan and Haenlein 2010)
  • 5.
  • 6.
  • 7.
    7 jfotis@bournemouth.ac.uk Social media andtourism SM seem to change significantly the way individuals plan and consume travel: • 82% of US online consumers have checked online reviews, blogs and other online feedback for their travel related purchasing decisions (eMarketer, 2008). • TripAdvisor (2010), hosts over 40 million user-generated reviews and opinions, used by more than 40 million website visitors per month.
  • 8.
    8 jfotis@bournemouth.ac.uk Social media arebecoming increasingly important in tourism • Experiential nature / complexity / high cost of tourism products • Potential tourists rely on others’ experiences for their decision making, decreasing uncertainty and increasing the exchange utility • Social media enable storytelling, a usual post-travel engagement to a larger audience, while providing a sense of belonging in virtual travel communities. • The content of on-line communities is perceived as similar to recommendations provided by friends, family members or even “like-minded souls” becoming vital information source to potential tourists.
  • 9.
    9 jfotis@bournemouth.ac.uk Research Purpose • Toinvestigate the role and impact of social media on how Russian holidaymakers plan and consume holidays • To explore determinants of acceptance and usage levels of SM as marketing and communication tools, by the Cyprus tourism industry.
  • 10.
    10 jfotis@bournemouth.ac.uk Rationale of context Russiahas the most engaged social networking audience worldwide in terms of time spent /user (ComScore 2010): 34.5 million Russian internet users (74.5% of the online population) visited at least one social networking site, spending an average of 9.8 hours /visitor during the month ranking it #1 among all countries in social networking engagement. Russia is Cyprus’... • Second most important incoming holiday market • Most promising market in terms of per capita tourism receipts
  • 11.
    11 jfotis@bournemouth.ac.uk Research objectives To measureRussians’ holidaymakers: 1. Exposure to SM before, during and after their trip; 2. Level of influence that SM have on their holiday plans 3. Level of trust / credibility towards SM, in relation to traditional sources of holiday related information. Quanti Quali To explore among Cyprus tourism industry’s stakeholders 4. The perceived importance of SM as marketing tools, 5. The underlying reasons determining acceptance and usage level of SM as part of their organization’s communication tools.
  • 12.
    12 jfotis@bournemouth.ac.uk Design / Methodology/ Approach Two stage research design: • Quantitative (Objectives #1, #2, #3) A questionnaire survey to MASMI’s online Russian panel (n=329) • Qualitative (Objectives #4, #5) A number of in-depth semi-structured interviews with key stakeholders of the Cyprus tourism industry.
  • 13.
    13 jfotis@bournemouth.ac.uk Cyprus 9th interms of consideration Q. Which countries did you consider? 48% 37% 24% 18%18% 15% 10%10%10%10% 9% 9% 9% 7% 7% 7% 7% 6% 6% 5% 5% 4% 4% 4% Base: Travelled P12M
  • 14.
    14 jfotis@bournemouth.ac.uk Turkey, Ukraine, Egypt:top 3 destinations Cyprus ranked 23rd Q. Which country did you go to? 22% 16% 12% 5% 4% 4% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% Base: Travelled P12M
  • 15.
    15 jfotis@bournemouth.ac.uk Cyprus possibly missingopportunities • Cyprus has low conversion rates • Ukraine, Belarus, Turkey, Egypt have high conversion rates 68% 47% 45% 31% 25% 21% 21% 20% 16% 16% 15% 15% 10% Ukraine (24%) Belarus (10%) Turkey (48%) Egypt (37%) Italy (15%) Thailand (10%) Czech Rep (7%) Bulgaria (18%) Austria (9%) Tunisia (9%) Greece (18%) Spain (10%) Cyprus (9%) NB. Ratio from consideration to final decision (in brackets: %age consideration) Base: Travelled P12M
  • 16.
    16 jfotis@bournemouth.ac.uk 12 days isthe average length of stay Expected high influence from packages offered by travel agents 20% 18% 14% 7% 6% 5% 5% 3% 10 7 14 5 12 8 15 3 Base: All travelled in P12M Nights stayed
  • 17.
    17 jfotis@bournemouth.ac.uk A high 73%visited SM when planning Q. Did you visit social media when planning your holidays 73% 10% 17% Yes No Cannot remember Base: All travelled in P12M
  • 18.
    18 jfotis@bournemouth.ac.uk 63% use SMto find alternatives Q. Why did you use SM when planning? 63% 33% 45% 47% 56% To search for destination ideas To narrow down my destination choice To confirm that I made a good destination choice To seek ideas & info on accommodation options To seek ideas & info on leisure activities Base: All who used SM when planning Before deciding on destination After deciding on destination
  • 19.
    19 jfotis@bournemouth.ac.uk Info from friends& travellers sought Q. Which of the following did you use, to find info about your holidays …? Base: All who used SM when planning 4% 7% 11% 12% 17% 36% 39% 40% 41% 41% 45% 64% 76% Advertisements in radio Advertisements in newspapers Advertisements in magazines Advertisements in TV Documentaries in radio Company owned websites Articles in newspapers Articles in magazines Travel agents Official tourism websites Shows or documentaries in TV Suggestions from friends and relatives Information and reviews provided by other…
  • 20.
    20 jfotis@bournemouth.ac.uk Trust in friends,travellers & SM Q. How much do you trust holiday info found in …? Base: All who used SM when planning 23% 31% 34% 47% 57% 69% 92% Advertisements Travel agents Holiday documentaries Official tourism websites Social Media Holiday info from travellers Holiday info from friends NB. %age positive responses
  • 21.
    21 jfotis@bournemouth.ac.uk SM influential ondestination Q. How much were you influenced on choice of destination? 7% 5% 5% 15% 32% 22% 14% 1 2 3 4 5 6 7 Base: All who used SM when planning NB. 7-point scale Ave. Score: 4.8 out of 7
  • 22.
    22 jfotis@bournemouth.ac.uk SM influential onaccommodation Q. How much were you influenced on choice of accommodation? 10% 5% 9% 16% 23% 20% 16% 1 2 3 4 5 6 7 Base: All who used SM when planning NB. 7-point scale Ave. Score: 4.7 out of 7
  • 23.
    23 jfotis@bournemouth.ac.uk 2 in 3made changes based on SM info Q. Did you make any changes to your original holiday plans because of info you found in social media websites? 48% 15% 35% 2% Made a few changes Made significant changes No changes Not sure Base: All who used SM when planning
  • 24.
    24 jfotis@bournemouth.ac.uk Experiences fed backto SM – a full circle Q. After holidays, for what reason did you use any social media websites? 78% 27% 28% 12% To share experiences/photos To provide reviews To get ideas for next holidays Did not visit/use any SM Base: All travelled in P12M
  • 25.
    25 jfotis@bournemouth.ac.uk Important to keepin touch with friends Q. During holidays, for what reason did you use social media websites? 28% 18% 49% 15% 2% 31% To find out info on leisure activities To provide comments on experiences To stay connected with friends Used SM but not related to holidays I cannot remember Did not visit any SM Base: All travelled in P12M
  • 26.
    26 jfotis@bournemouth.ac.uk In conclusion • Socialmedia play an important role in travel behavior • Consumers are engaged throughout the process • Cyprus enjoys high consideration yet can do better in converting Pre During Post
  • 27.
    27 jfotis@bournemouth.ac.uk John Fotis jfotis@bournemouth.ac.uk Prof. DimitriosBuhalis dbuhalis@bournemouth.ac.uk Thank you Dr. Nicos Rossides nicos.rossides@masmi.com