Understanding customer needs in the tourism industry

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Understanding customer needs in the tourism
industry

• Gkirtzou Ekaterini
• Zachopoulos Antonis
• Kapravelos Alexandros
• Livadas Georgios

• Michou Maria
• Papavasileiou Vasiliki
• Papadakos Panagiotis

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Contents

• The tourism market in Crete
• How to collect and analyze customer data
• Transition from product centric to customer
  centric view
• Customers segmentation techniques
• Historical data for developing effective models
• Next Best Offer Model
• Developing models and campaigns

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Contents

• The tourism market in Crete
• How to collect and analyze customer data
• Transition from product centric to customer
  centric view
• Customers segmentation techniques
• Historical data for developing effective models
• Next Best Offer Model
• Developing models and campaigns

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Competition
Crete is very competitive because, not only there
is a large number of hotels but also they are
usually full.
2000 2001 2002
Herakleion 83.28 76.01 77.08
Rethimno 72.98 66.63 65.77
Chania 86.07 79.01 77.33
Lasithi 73.14 77.10 73.43
Crete 79.94 75.12 74.41
Luxurious hotels outweigh the other types of
hotels in Crete and they are the main part of
local tourist industry
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Luxurious Hotels In Crete

• Heraklion 46
• Chania 17.8
• Rethimno 19
• Lasithi 17

• During the 2002 the 68 of night of accommodation
  were in luxurious hotels
• 13.92 in category AA
• 54.31 in category A

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Profitability

• This analysis will judge the main tourist
  companies
• on seven criteria which are listed below.
• Sales / Assets
• Gross Profit / Sales
• Sales Cost / Average Level of Fund
• Quick Assets / Near Future Obligation
• Basic Period of Vitality
• Self Funds / Self Funds Obligations
• Total Obligations / Period of Self-Liquidation

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Contents

• The tourism market in Crete
• How to collect and analyze customer data
• Transition from product centric to customer
  centric view
• Customers segmentation techniques
• Historical data for developing effective models
• Next Best Offer Model
• Developing models and campaigns

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Customer orientation

• Tourism industry in Crete is mostly based on
  foreign customers

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Customer orientation

• Main sources North Central Europe

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Customer data

• Data groups
• Customer Name / Address
• Contact Information Phone, e-mail, etc.
• Purchase Data How often they buy, when they buy,
  etc.
• Marketing Data How they first learned of your
  product or service
• Demographic Information age, geography, and
  income

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Customer data

• How to collect data
• Collect both internal and external data
• Sort and analyze. Cross-reference with
  demographic data.
• Locate common patterns. Determine who is buying
  the most.
• Focus on profitable customer groups.
• Be alert on privacy laws!

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Contents

• The tourism market in Crete
• How to collect and analyze customer data
• Transition from product centric to customer
  centric view
• Customers segmentation techniques
• Historical data for developing effective models
• Next Best Offer Model
• Developing models and campaigns

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Product Centric Vs. Customer Centric view

• Product centric view
• Here are our products and/or services.
• Here is why we think they are great.
• Do you want to buy them?

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Customer Centric view (1/2)

• Understanding customers begins with identifying
  them
• Collect customer data
• Combine multiple sources of data
• Analyze customer relationships
• Identify the best customers

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Customer Centric view (2/2)

• Provide avenues for customer feedback
• Talk to customers like customers
• Test personalization
• Say thank you
• Create an ad hoc customer committee

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Contents

• The tourism market in Crete
• How to collect and analyze customer data
• Transition from product centric to customer
  centric view
• Customers segmentation techniques
• Historical data for developing effective models
• Next Best Offer Model
• Developing models and campaigns

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Techniques (1/2)

• demographics age, income, family status,
  education. People choose different products
  according to their age and activities. However,
  this should not be the only criteria
• economic status - for example budget
  accommodation providers will target people who
  are travelling on a restricted income
• purpose of travel - reason for travel and any
  special needs. For example, a business traveller
  will look for efficiency and prompt service
  whereas a family are more likely to look for fun
  activities

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Techniques (2/2)

• nationality - as the section about overseas
  marketing indicates, some nationalities have a
  greater propensity to travel or indulge in
  certain activities than others
• geographic location/origin - instate,
  out-of-state, local. For example, visitor
  attractions usually find that most visitors come
  from within one hours travelling time from the
  place where they live or are staying
• lifestyle, consumer attitudes and behaviour -
  price, quality, quantity. There are numerous
  studies and reports which break populations down
  into smaller sub-groups according to aspirations,
  attitudes and general lifestyles.
• equipment ownership/use - RV's, sailboats,
  canoes, tents, snowmobiles

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Customer bands identified in the Cretan tourism
market (1/2)

• Young Free and Singles
• DINKS (Duals income, no kids) , SINKS (Single
  income, no kids)
• Families with children at preschool age
• Families with children at primary school

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Customer bands identified in the Cretan tourism
market (2/2)

• Families with children at secondary school
• Empty Nesters
• Third Agers (usually 70)

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Contents

• The tourism market in Crete
• How to collect and analyze customer data
• Transition from product centric to customer
  centric view
• Customers segmentation techniques
• Historical data for developing effective models
• Next Best Offer Model
• Developing models and campaigns

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Historical data required to develop effective
models (1/3)

• Nationality
• Financial position
• Season (Summer/Winter)
• Mountain / sea
• Group / Independent

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Historical data required to develop effective
models (2/3)

• Family / Mate / Friends /Alone
• International press
• Fans of technology
• History
• Tradition

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Historical data required to develop effective
models (3/3)

• Food
• Nightlife
• Disabilities
• Time period

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Contents

• The tourism market in Crete
• How to collect and analyze customer data
• Transition from product centric to customer
  centric view
• Customers segmentation techniques
• Historical data for developing effective models
• Next Best Offer Model
• Developing models and campaigns

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Business Situation

• Revolutionary changes within the tourism industry
  brought about by the Internet meant the model
  needed to overhaul its tourism-promotion strategy
  to focus directly on individual tourists and
  niche markets.

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Solution

• Our next best offer model is a new strategy
  through a range of instruments, including a
  tourism portal with customized, dynamic content
  provided direct to the customer in a variety of
  languages, together with a supporting data
  warehouse and CRM solution.

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Benefits

• Reaches tourists directly
• Builds relationship with customer
• Enables travel planning
• Supports local companies
• Better analysis of tourist preferences
• Better response to fast-changing trends

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Contents

• The tourism market in Crete
• How to collect and analyze customer data
• Transition from product centric to customer
  centric view
• Customers segmentation techniques
• Historical data for developing effective
  models
• Next Best Offer Model
• Developing models and campaigns

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Knowledge to customer advisor

• Create package depending on customers needs and
  wishes.
• Better understanding on customers need
• Before and after sales dialog

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Tourist Campaign

• Customer analysis
• Design of the campaign
• Define target group
• Organize facilities and offers

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Tourist Campaign

• Execution of campaign
• Inbound campaign
• Outbound campaign
• Campaign evaluation
• Note The tourist campaign is a circular
  procedure!

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Questions