Ttulo

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Product differentiation by creating and
packaging sustainable experiences

• Guatemala Ciudad
• 10 septiembre, 2009
• Presentación de
• Marie-Andrée Delisle, M.Sc.
• Consultora en desarrollo turistico
• www.madelis.com

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Clarifying definitions

• Ecotourism (or Green Travel/Green Tourism)
• Environmental, ecological, social issues
  interpretation and education activities
• Eco-friendly not harmful to the environment
  (nature and culture)
• What about nature and adventure tourism?
• Responsible tourism
• Having a responsible behavior and business
  practice, being socially-conscious
• (tourism businesses, service providers and
  visitors, local communities, partners and
  employees)
• Community-based tourism
• Collective responsibility and ability to make
  decisions from a community standpoint

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Clarifying definitions

• Sustainable tourism
• Being aware and active in neutralizing and
  reducing actual and potential economic,
  environmental and cultural impacts of tourism
• In other words, it means we should look forward
  to a sustainable environment, to sustainable
  management and operations and to sustainable
  products and services

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Sustainable tourism

• Based on three dimensions for long-term
  development
• Environmental flora, fauna, ecosystems, etc.
  observation, protection, conservation, carrying
  capacity waste and energy management
• Social/cultural traditions, ways of life,
  heritage sites, etc. protection, conservation,
  education
• Economical benefits the local population
  improving life conditions benefits the local
  businesses revenues from the tourism activities
• With the next generations in mind

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Sustainable tourism aspects

• A product differentiation that represents
• A competitive advantage if it includes truly
  sustainable aspects
• An excellent quality-price ratio
• The ability to create memorable experiences and
  to educate the local population and the visitor
• An awareness and tangible actions taken about
• The climate change (carbon emissions, offsets,
  carbon neutral)
• The protection of land and culture
• Best management practices and social
  responsibility

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However

• Price and quality vs environmental friendliness
• Many ecolabels confusing
• Ethical marketing vs greenwashing
• Sustainable practices must be integrated to the
  operations of a business
• Energy efficiency, recycling, water
  conservation, waste management, carbon offsets,
  social practices, building/construction practices
  and purchasing policy

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Some tools

• Sustainable Tourism Criteria
• Demonstrate effective sustainable management
• Maximize social and economic benefits to the
  local community and minimize negative impacts
• Maximize benefits to cultural heritage and
  minimize negative impacts
• Maximize benefits to the environment and minimize
  negative impacts
• Refer to http//tinyurl.com/3z2wfv
• Sustainable Tourism Self-Assessment Tool
• Refer to http//tinyurl.com/klfo92

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Why bother to create an experience?

• Innovation
• Product differentiation
• being different from the competition instead of a
  me too product
• integrating distinct characteristics
• Value-added
• Exclusivity
• Trend
• Travelers with common interests / affinity

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Any advantages in creating a sustainable
experience?

• Booking easiness one-stop shop
• Access to more information
• Accessibility to culture and nature
• Security
• Attracting
• Retaining
• Partnering
• Word-of-mouth

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Trends

• Travelers are aware and preoccupied by their
  impacts while traveling but
• Travelers want authenticity and comfort
• They look for security, safety and quality
• They like to mix culture and nature
• They want to interact with people, learn and
  play, taste local cuisine, try new activities
• There are more and more short, multiple, closer
  to home, last minute reservations

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Trends

• The long-haul trips have more to do with personal
  interests regardless of age
• The market segments are becoming more and more
  sophisticated
• Family and friends travel to share memorable
  moments
• The travelers use technology for researching,
  planning and booking

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Who should create a sustainable tourism
experience ?

• It is a joint effort
• Creating hotelier, attraction or activity, local
  tour operator, community (ex. Lago Atitlan,
  Peten, Chichi)
• Commercializing local travel agency,
  local/national/foreign tour operator
• Promoting local tourist board, national tourist
  board

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Creating an experience

• From where to where? When?
• Based on what?
• Culture, arts, food, heritage, people
• Experiential itinerary / touring routes
• Ecological and sustainable activities
• Nature / Adventure
• With or without partners?
• Should it be packaged?
• Elements to consider transfers, transportation,
  lodging, food, attractions, activities WOW

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What is considered a package?

• More than one item but at one price (A hotel with
  a meal plan is usually not considered a package
  but a good deal)
• A package versus a tour
• Could be for hours or days
• Dynamic packaging and modular trips
• Deal or no deal ?
• 5 key elements
• WHY - WHAT - FOR WHOM - HOW - WITH WHOM

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WHY

• What do you want to accomplish ? What is your
  objective ?
• Is it based on research, on market analysis in
  order to identify your target market ?
• Clients surveys tourist board surveys
• Trends the competition
• Tour operators requests or inquiries
• Reports, statistics, destination marketing plan
• Destination strategy, branding, etc.

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WHAT - Example of packages from

• A museum Museum and Cruise Package One
  dayCombines visit of Pirates, Privateers and
  Freebooters Exhibition with AMLs Cruise
  excursion (a tour of the city on the River aboard
  the Cavalier Maxim).
• An attraction Tulum Archeological Ruins with
  Xel-Ha Natural Wonder Park one-day package.
  Comfortable transportation from hotel zones
  included.
• A national park Canoe Downriver Rapids
  Initiation Package One day Includes a
  professional guide service, canoe, life jacket
  and paddles, map of the river, shuttle (return
  trip), dry bag for personal belongings

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Other examples

• A lodging property Discover Copan Package 3
  days/2 nights - Includes transfers, some meals,
  entrance to park with guide choice of 2
  activities (coffee tour, Bird Park, canopy tour,
  horseback riding, yoga, spa)
• A travel agency/tour operator Birding Package
• 7 days/6 nights - Includes some meals,
  transfers, accommodation, private bus, local
  flight, guided tour.
• A community Community life Package 7 days/6
  nights - Includes accomodatoinvisits plus one
  night homestay, meals and participating in
  community activities

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FOR WHOM

• What is your target market ?
• Where are they coming from ? Is it far? Close?
• Have you identified their interests and
  expectations?
• What segments are you after ?
• By profile young travelers, mature travelers,
  women travelers, multi-generation, boomers
• By theme adventure, culture, nature and
  eco-tourists, romance, education, business, etc.

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HOW

• Develop the experience with the package
  components
• Choose the activity, the visit, the content of
  the theme Ex. hiking to the Laguna Chicabal a
  visit to the Abaj Takalik archeological site
• Select the partners that will supply parts of the
  content Ex. guide to be hired, park or site
  entrance fee, transportation, transfers from the
  hotel to the sites, etc.
• Decide on the lodging number of nights Ex. each
  activity will take one day, the package should be
  based on a 2 night/3 day accommodation
• Integrate meals Ex. breakfast and dinner at
  hotel lunches provided by another partner
• Sketch a schedule from the arrival to the
  departure time

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WITH WHOM

• Build an inventory of potential partners
• Cultural, archeological, heritage
  expert/site/guide
• Arts expert, artist(s)
• Ecological, environmental expert/site/guide
• Flora and fauna expert birding expert/site/guide
• Sports / adventure expert/site/guide
• Community expert/site/guide
• Food, cuisine expert (chef, producer, ), etc.
• Others restaurants, transportation companies,
  etc.
• The guide is a key element

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WITH WHOM

• Look for partners with similar quality and
  service standards, to enrich content and share
  promotional costs
• Inform and train your staff accordingly
• Establish written agreements with your partners
  (reservations, vouchers, package inventory, price
  guarantee, communications, payments,
  cancellations, refunds, etc.)
• Evaluate the promotional budget with your
  partners

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Pricing

• The pricing should always include an element that
  the consumer cannot evaluate
• The pricing should include all the components
  costs
• The retail price should always be on a per person
  basis, and on a double occupancy basis
• The profit margin should be reduced whenever
  there is volume offered by the tour operator
• The best net rate should be given to
  local/national tour operators it should always
  be better than the one for foreign tour operators

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Pricing structure

• TOTAL COSTS
• Profit margin (flexible)
• NET RATE to sales intermediates
• Commission or rebate to sales
• intermediates (between 10 and 30 )
• CONSUMER / RETAIL PRICE or rack rate
• Depending on the volume of sales given by the
  intermediate
• Net rate confidential, without tax or
  commission)
• Travel agents, tour operators

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Pricing structure
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Testing

• Evaluating the creative experience packaged
  before it is promoted
• With customers
• With tour operators
• Evaluating the customer satisfaction once it is
  experienced
• Customer satisfaction difference between the
  expectation beforehand and the perception of the
  value once the product is experienced

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Evaluating results

• On a three-year span
• Costs versus revenues
• Customer survey
• Partnerships evaluation
• Budgeted promotion
• Results following the promotion, etc.

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Preguntas ?

• The next presentation will cover the marketing of
  sustainable packages.
• Muchas gracias por su generosa atención!

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References

• Useful websites
• Networks and associations
• The International Ecotourism Society (TIES) -
  Uniting Conservation, Communities and Sustainable
  Travel
• For info and membership http//tinyurl.com/nx8d9m
  
• Your Travel Choice Blog http//www.yourtravelchoi
  ce.org/
• Ad of Service Summit event on TIES website
  www.ecotourism.org/site/c.orLQKXPCLmF/b.4835333/k.
  B6C5/News.htm
• Rainforest Alliance www.rainforest-alliance.org
  
• Monthly updates newsletters
  www.rainforest-alliance.org/news.cfm?idpublicatio
  ns
• Sustainable Trips for a Better Future
  www.rainforest-alliance.org/tourism/sustainable_tr
  ips
• UN World Tourism Organisation on Sustainable
  Tourism www.world-tourism.org/frameset/frame_sust
  ainable.html
• Comiturs http//www.export.com.gt/Portal/Home.asp
  x?subTurismo
• Guatemala Green http//www.guatemalagreen.com/

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References

• USTOA (United States Tour Operators Ass.)
  www.ustoa.com/pressroom/newsreleases/ecotourism.ht
  ml
• Tour Operators Initiative (TOI) or Responsible
  Tourism http//www.toinitiative.org/
• REDTURS  Red de Turismo Communitario de America
  Latina http//www.redturs.org/nuevaes/articulo1.p
  hp?ca_codigo9home1  
• Asociacion panamena de turismo sostenible
  http//www.aptso.org/english/
• National Geographic Centre for Sustainable
  Destinations http//www.nationalgeographic.com/tr
  avel/sustainable/professionals.html
• Boletin Turistico www.boletin-turistico.com
• The International Centre for Responsible Tourism
  www.icrtourism.org
• Green Maps www.greenmaps.org
• The Nature Conservancy www.nature.org
• Voluntary Initiatives for Sustainable Tourism
  (VISIT) www.visit21.net

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References

• Listings 
• Accommodation listings on Trip Advisor
  http//www.tripadvisor.com/pages/getlisted_hotel.h
  tml
• Listings on the Eco-Index Sustainable Tourism
  website http//eco-indextourism.org/en/home
• Tools
• Eco certification Self-assessment tool
  Sustainable Travel International
  http//www.sustainabletravelinternational.org/docu
  ments/sustainabletourismcertification_howtoapply.h
  tml  
• Global Tourism Criteria - Sustainable Travel
  International http//www.sustainabletourismcrite
  ria.org/index.php?optioncom_contenttaskviewid
  58Itemid188  
• Rainforest Alliance Guide for sustainable
  tourism best practices http//www.rainforest-alli
  ance.org/tourism.cfm?idguide  
• Tour Operators Good Practices http//www.toinitia
  tive.org/index.php?id48
• Certification for Sustainable Tourism
  www.turismo-sostenible.co.cr
• The Virtual Marketing Service for Sustainable
  Tourism www.greentravelmarket.info Criteria
  for tour operators ttp//tinyurl.com/moy2mk

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References

• Green lists
• Green Travel green-travel-subscribe_at_yahoogroups.c
  om
• TerraCurve.com
• Planeta.com Global Journal of Practical
  Ecotourism
• VISION on Sustainable Tourism travelmole-wire_at_tra
  velmole.net
• Various examples
• Example of Basic package extensions
  http//downloads.raileurope.com/brochure/latin_ame
  rica/guatemala.pdf 
• Example from a hotel Discover Copan Ruins
  http//www.hotelmarinacopan.com/package_offers.htm
  
• GORP Travel Itineraries and choice of theme
  http//gorptravel.away.com/xnet/one-product.tcl?pr
  oduct_id118254
• Example of Adventure Package http//www.greencost
  arica.com/in_pa001.htmltodo
• Example of Port Moresby River Adventure
  http//www.em.com.pg/PNG/emtours/itineraries/EM19
  20TAURI20RIVER20ADVENTURE.htm 

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References

• Example from a tour operator Eco-Circuitos
  Panama http//www.ecocircuitos.com/index.php?optio
  ncom_contenttaskviewid106Itemid38
• Canadian tour operator GAP Adventures Packages in
  Central America http//tinyurl.com/nxwe3j
• Example of an eco-sustainable lodge in Ecuador
  http//eco-indextourism.org/mantaraya_ec_en
• Example of a lodge involving the community
  http//eco-indextourism.org/en/takalik_maya_lodge_
  gt_en
• The InterContinental hotels and National
  Geographic Geotourism initiatives
  www.terracurve.com . http//tinyurl.com/lsejlu
   
• US TRAVEL AMERICAN EXPRESS website
  http//www.travelgreen.org/
• Co-branding examples http//www.haciendachichen.c
  om/activities.htm
• Responsible travel holidays website
  http//www.responsibletravel.com see menu on
  left side
• Philanthropy tourism http//www.travelersgivingba
  ck.org
• Carbon offsets website http//www.carbonoffsets.o
  rg
• Volunteer tourism, EcoResorts, Extreme Adventure,
  Active Boomers see top menu www.away.com  

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References

• GO Green Traveler / Travel Tips for the
  Eco-Conscious Traveler http//gogreentravelgreen.
  com/green-travel-101/responsible-travel-vs-eco-fri
  endly-travel/
• Rosalie Community Ecolodge http//www.rosaliefore
  st.com/rates_packages__community.php
• Community Tours www.alltournative.com
• Packages
• 8 day/7 night Package with itinerary
  http//www.mexicoculturaltours.com/our_tours/yucat
  an_travel_package.html 
• Hotel Package, minimum 3 nights
  http//www.hotelcasavelas.com/html/canopy-adventur
  es-puerto-vallarta-mexico-pkg.asp
• One-day Mayan Encounter Package
  http//www.alltournative.com/tours-products/maya-e
  ncounter
• La Victorine Inn choice of packages
  http//www.quebecfinestinns.com/inn-hotel-quebec/p
  ackages-les-victorines-du-lac-257_ang.cfm
• Packaged tours to Guatemala http//www.latinamer
  icacollection.com/packages/savor_guatemala_holiday
  .html
• Packages for women http//www.northernedgealgonqu
  in.com/