Understanding customer needs in
the tourism industry
Gkirtzou Ekaterini
Zachopoulos Antonis
Kapravelos Alexandros
Livadas Georgios
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October 15
Michou Maria
Papavasileiou Vasiliki
Papadakos Panagiotis
HY490.91
Contents
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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
October 15
HY490.91
Contents
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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
October 15
HY490.91
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
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Heraklion
Chania
Rethimno
Lasithi
46%
17.8%
19%
17%
During the 2002 the 68% of night of accommodation were in
luxurious hotels
•13.92% in category “AA”
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•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.
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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
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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
October 15
HY490.91
Customer orientation
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Tourism industry in Crete is mostly based on foreign
customers
Tourism orientation in Crete
Number of accomodation nights
14.000.000
12.000.000
10.000.000
8.000.000
International Tourism
Domestic Tourism
6.000.000
4.000.000
2.000.000
0
1998
8
1999
2000
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2001
2002
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Customer orientation
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Main sources: North & Central Europe
International Customers' Orientation
Germany
G. Britain
Scandinavia
Netherlands
France
Austria
Belgium
Switzerland
Italy
Other countries
Eastern Europe
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Customer data
Data groups
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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
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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
October 15
HY490.91
Product Centric Vs. Customer
Centric view
Product centric view
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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
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Collect customer data
Combine multiple sources of data
Analyze customer relationships
Identify the best customers
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Customer Centric view (2/2)
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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
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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
October 15
HY490.91
Techniques (1/2)
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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)
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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)
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2.
3.
4.
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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)
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Families with children at secondary school
Empty Nesters
Third Agers (usually 70+)
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Contents
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21
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
October 15
HY490.91
Historical data required to develop
effective models (1/3)
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Nationality
Financial position
Season (Summer/Winter)
Mountain / sea
Group / Independent
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Historical data required to develop
effective models (2/3)
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Family / Mate / Friends /Alone
International press
Fans of technology
History
Tradition
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Historical data required to develop
effective models (3/3)
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Food
Nightlife
Disabilities
Time period
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Contents
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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
October 15
HY490.91
Business Situation
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Revolutionary changes within the tourism
industry brought about by the Internet meant
the model needed to overhaul its tourismpromotion strategy to focus directly on
individual tourists and niche markets.
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Solution
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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
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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
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29
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
October 15
HY490.91
Knowledge to customer advisor
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Create package depending on customers
needs and wishes.
Better understanding on customers’ need
Before and after sales dialog
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Tourist Campaign
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Customer analysis
Design of the campaign
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Define target group
Organize facilities and offers
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Tourist Campaign
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Execution of campaign
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Inbound campaign
Outbound campaign
Campaign evaluation
Note : The tourist campaign is a circular procedure!
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Questions
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Understanding customer needs in the tourist industry