Tourism authorities need to get with the times

As global tourism numbers dwindle, one organization is putting tourism authorities in front of airlines in a bid to change the way the industry works.

As global tourism numbers dwindle, one organization is putting tourism authorities in front of airlines in a bid to change the way the industry works.

“In these challenging times when business travel is being particularly hit hard, airlines are focusing on leisure travel to sustain revenues and route profitability,” explains Route Development Group (RDG) tourism development director Gerard Brown “increasingly, airlines are seeking new leisure destinations to serve and who better to convince them than a tourism authority. Conversely, as visitor numbers continue to fall at an alarming rate, tourism authorities need to start promoting their destinations to airlines.”

At this year’s Arabian Travel Market in Dubai, RDG, organizer of the annual World Route Development Forum, held a workshop in which tourism authorities could discuss the benefits of their role in the development of new air services. The workshop was an exercise in helping tourism authorities promote their destinations to airlines and discover how airline route planners could satisfy and even stimulate tourism demand for a region.

The event was such a success that the opening day of World Routes in Beijing this year will host the Routes/ PATA Tourism & Air Services Summit which will give tourism authorities and airlines the chance to find out more about the destinations they serve and more importantly, which ones they should be serving.

“Historically, tourism authorities have neglected the aviation side of tourism development. Their approach has, in many cases become stale and dated,” explains Brown. “But there are signs that the more pro-active tourism authorities are definitely becoming more interested in aviation and working their way up the supply chain. Previously they would leave the responsibility of promoting their destination to airlines with their airports but in many cases the relationships with their airports are not necessarily strong.

“At the same time, the present climate requires that airlines have to be more proactive in sourcing leisure traffic that is going to fill the plane.”

British Airways newly announced routes are a case in point explains Brown. “BA’s new schedule is very tourism focused. There is a new Las Vegas service from Heathrow, The Maldives and Sharm El Sheik three-times a week from Gatwick and several new Caribbean flights. Many other airlines are also launching flights that seem to be more tourist destination-led than ever before and this is due to the decline in passenger numbers. The hands of tourism are very much behind this.”

So why has it taken airlines and tourism authorities so long to come around to a new way of thinking? “Airlines are asking tourism authorities to help them as the current trading conditions are really hurting the world’s airlines. Airlines have had the luxury of having the airports doing all of the running in the past – now they are having to be a little more pro-active and the balance is shifting slightly.

“The Middle East is seeing healthy visitor numbers but most of these are transit passengers and the Middle East is not the travelers’’ final destination.

“More tourism authorities are now realizing that their competitors are not only their immediate neighbors,” continues Brown. “They are starting to look at where in the world the traveller is ending their journey. It is a similar situation in the Mediterranean, where the destinations and airports are realizing that they are competing with the Maldives, Mexico and Egypt for example. With flights to Australia from £349 with Singapore Airlines, many UK travelers will consider this as a viable alternative to the Mediterranean.”

But some tourist boards are yet to accept this new way of working and Brown says he has been surprised that more Western European and North American authorities have not begun to pro-actively market themselves to the world’s airlines. “Tourism is so well developed in these regions, and they have been hit incredibly hard by declining visitor numbers,” says Brown.

On the other hand Australia and New Zealand’s authorities are well ahead of the game and their tourism boards have been coming along regularly to Routes events over the years. In the same way, Ras Al Khaimah’s tourism authority realized the benefits of meeting with airlines at Routes some two or three years ago and Brown confirms that other Middle Eastern regions are now coming around to this way of thinking, although it has not been without its challenges. “We have built some solid relationships over the years with the Middle Eastern airports and tourism authorities but even though the Middle East is relatively well-developed on the tourism side, there is sometimes a reluctance to work closely with airlines and there are different reasons for this. Some are of the view that if they have their own dominant carrier, why would they need to speak with other airlines? And yes, some of these airlines are very strong in the market but any reliance on one carrier in the present climate is a clear risk. It can also be challenging where you have a country which doesn’t want to upset its national airline, but understand that their national airline does not have sufficient capacity to deliver all of the tourism authorities’ aspirations.”

But Brown argues that all final decisions rest with the tourism authorities and airports and the Routes event can be used as a vehicle for them to bolster their knowledge of industry trends. “They need to find out from airlines what is happening in the industry, and that is where the Routes event is particularly valuable.”

The dynamics of the travel business are also being changed by low-cost airlines and Brown argues that they and other full service airlines are becoming tour operators in their own right. “UK carriers such as Jet2, Easyjet and even British Airways have become tour operators and very influential ones,” says Brown, and tourism authorities are cottoning on to this. “Who carries more tourist passengers in the UK each year? TUI, Thomas Cook or Ryanair? Who should the European tourism authorities be trying to influence? The face of the leisure travel industry is changing. Airlines are becoming the new tour operators. How will BA fill their new flights to the Maldives, Sharm el Sheik and Las Vegas? I imagine they will work with each respective tourism authority on joint promotions.”

“VisitBritain has struck up relations with Easyjet as well as BA and have also been speaking to hoteliers like Holiday Inn to offer a one-stop shop packages to tourists. It highlights a proactive approach to driving visitors to their destination, which is exactly what is needed in the current climate.”

Tourism authorities need to get with the times

Gerard Brown of RDG takes a look at how tourism authorities must use route development initiatives to maximise ROI from their marketing spend in the current climate.

Gerard Brown of RDG takes a look at how tourism authorities must use route development initiatives to maximise ROI from their marketing spend in the current climate.

Difficult economic trading conditions concentrate the mind wonderfully. There is a myriad of options for promoting a destination to those who have the money – but today’s climate demands certainties. Destination marketing expenditure must be offset by measurable results, and those results must translate into additional visitors and bed nights. Given the necessity to work smarter, often with smaller marketing teams and budgets, the analysis and quantification of any results has never been more important.

Today, destination marketing organizations are looking for more ways to market their destinations to the right people, at the right place, and at the right time with truly measurable results – and this is possible at World Routes, which styles itself the global meeting place for every airline and airport. The fifteenth World Route Development Forum takes place September 13-15 in Beijing and marks something of an evolution in the annual event, as more tourism and economic development agencies than ever before will be joining their airports to take part in the pre-arranged airline meetings, exhibition, networking, speaking, and sponsorship opportunities. By participating in such an event and taking part in the wide range of initiatives, there is a strong possibility that destinations can gain new air services, and hence it is possible to know exactly how many new visitors this activity has generated.

Strength in numbers

There is growing recognition from around the world that when airports join forces with tourism authorities, government agencies, and other stakeholders, these destination “teams” can provide all the information that carriers require to penetrate new markets such as information on new markets and developments in infrastructure.

Ninety-nine percent of destinations and tourism authorities market themselves well to tour operators and the public, and yet the final piece in the jigsaw – obtaining new air services – is performed well by only a tiny fraction of this number. At World Routes, tourism authorities can cost-effectively promote and differentiate themselves, move up the supply chain, and start speaking directly to potential carriers in conjunction with other stakeholders.

South Australia is a prime example of how a destination can get itself onto the world map in a relatively short space of time by involving all the stakeholders in the region to influence airline decision makers and drive traffic. In a demonstration of its commitment, “Team Adelaide” – the collaboration between Adelaide Convention & Tourism Authority (ACTA), the South Australian Tourism Commission (SATC), Adelaide Airport Ltd (AAL), and the Department of Trade and Economic Development (DTED) – has recently made a successful bid to host the Routes Asia Forum in 2010.

Commenting, Phil Baker MD of Adelaide Airport said: “We look forward to demonstrating to visitors not only how easy it is to get to Adelaide, thanks to the new terminal, but also the spread of potential travelers – those attracted by the Mediterranean lifestyle and cosmopolitan image and its well-earned reputation for smart, efficient, and high-tech business facilities. Securing a return on our investment is very important to us and we know that all the Routes forums will deliver results and strengthen relationships for the future.”

The Right People, Place & Time

Team Adelaide, not surprisingly, sees such an event as an opportunity to show at first hand that it has “arrived” as a major destination. “The Route Development Forum will enable us to reach the key players who can assist us to achieve our route development objectives. We want to uncover the secrets of South Australia and reveal the untapped demand for our destination. Who better to share our secrets with than the route planners who can supply our growing tourism market?”

Unlike most of the international tourism exhibitions and conferences, the structure of World Routes ensures that meetings will be set up with the correct people, and participants can tap into that knowledge where they require it. It makes sure you get to speak to the right people in the right positions, even if you don’t know who the key people are. So you get a foot in the door and the opportunity to concentrate on making a business case for your region without worrying about footfall.

At World Routes in September, the network planners from the World’s airlines will be gathering once more specifically to discuss the possibility of new air services at a time when the industry is suffering and there is increased pressure for new and more profitable air services. You can be assured that the tourism authorities and DMO’s will be attending in greater numbers than ever before to communicate their messages to the right people, at the right place, and at the right time.

About the author

Avatar of Linda Hohnholz

Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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