Increased spending by Canadians abroad has pushed Canada's international travel deficit to its highest level ever in the third quarter, edging out the previous high observed nearly 15 years ago, according to Statistics Canada.
The deficit (the difference between spending by Canadian residents abroad and spending by foreigners in Canada) climbed to a record $1.9 billion between July and September. This was up $278 million from the second quarter and slightly above the previous high set in the fourth quarter of 1991. At that time, the ballooning deficit with the United States had been the main reason for the record deficit. Now, say officials, widening deficits with both the United States and overseas countries are contributing factors.
Record spending abroad contributed to the unmatched deficit, as Canadians spent an estimated $5.9 billion outside the country, up 2.9 per cent from the previous quarter. Spending abroad has shown an upward trend in recent years, with increases in 11 of the last 13 quarters. Moreover, foreign travel spending in Canada has fallen in six of the last seven quarters, also fuelling the widening deficit. During the third quarter of 2006, foreigners spent $4 billion in Canada, down 2.6 per cent from the previous quarter.
Canada's travel deficit with the US climbed to $1.1 billion during the third quarter of 2006, a $225 million increase from the second quarter and the highest level since the fourth quarter of 1993.
While spending in Canada by travellers from overseas countries climbed to unprecedented levels in the third quarter of 2006, reaching $1.9 billion, Canada's travel deficit with overseas countries climbed to an all-time high of $753 million, up $53 million from the previous quarter.
Record travel from Canada to overseas destinations contributed to the higher deficit, as Canadians took 1.7 million trips to non-US destinations, up 0.5 per cent from the previous quarter. As a result, Canadians spent a record of $2.7 billion, an increase of 3.3 per cent from the previous high set in the second quarter.
Thursday, November 30, 2006
ISHC Announces the Top Ten Issues & Challenges for 2007
http://www.ishc.com/whats_new/new.cfm
ISHC Announces the Top Ten Issues & Challenges for 2007
Labor & Skills Shortages:
Growing shortage of qualified & skilled employees
Construction Costs:
Escalation of construction &renovation costs
Technology:
Lightening speed of changes – keeping up
Changing Demographics & Their Impact on Travel Trends:
Shift in baby-boomers to gen X
Future of Hotel Profits:
Balancing escalating expenses with the need to increase rates
Branding:
Mitigating consumer confusion over brand proliferation and investor concerns over cross brand impact
Distribution Revolution:
Keeping up with rapidly changing playing field
Travel Restrictions:
And their impact on the travel industry
Global Emerging Markets:
Are travel patterns changing
Capital Availability:
Will investor and lender confidence continue
For a copy of the full press release and additional information on the ISHC Top Ten Issues in the Hospitality Industry for 2007, please click here.
ISHC Announces the Top Ten Issues & Challenges for 2007
Labor & Skills Shortages:
Growing shortage of qualified & skilled employees
Construction Costs:
Escalation of construction &renovation costs
Technology:
Lightening speed of changes – keeping up
Changing Demographics & Their Impact on Travel Trends:
Shift in baby-boomers to gen X
Future of Hotel Profits:
Balancing escalating expenses with the need to increase rates
Branding:
Mitigating consumer confusion over brand proliferation and investor concerns over cross brand impact
Distribution Revolution:
Keeping up with rapidly changing playing field
Travel Restrictions:
And their impact on the travel industry
Global Emerging Markets:
Are travel patterns changing
Capital Availability:
Will investor and lender confidence continue
For a copy of the full press release and additional information on the ISHC Top Ten Issues in the Hospitality Industry for 2007, please click here.
Friday, November 24, 2006
How Do Airlines Set Their Ticket Prices?
They keep going up and down!
By Melonyce McAfee
Updated Wednesday, Nov. 22, 2006, at 6:03 PM ET
This article found at : http://www.slate.com/id/2154261
Thanksgiving is the busiest holiday of the year for the airline industry. High travel demand means full seats and, presumably, full coffers for the airlines. But how do they decide how much to charge passengers?
The most important variable is competition. Until airline deregulation in the late 1970s, rates for flights were more-or-less determined by distance. Now, ticket prices have almost nothing to do with how far you're traveling and more to do with how many airlines are competing for your business. A short route flown by few carriers may be more expensive than a long route flown by all the major airlines. For example, flights between Portland and Medford, Ore., used to boast extraordinarily high per-mile fares, at least until more airlines began offering that service. The presence of discount carriers, such as JetBlue or Southwest Airlines, can drive prices even lower on a given route.
An airline will adjust its ticket prices on a minute-by-minute basis, depending on what competitors are charging. But how do they know the other guys' prices? Each airline enters its rates into the Airline Tariff Publishing Co. computer system, which in turn supplies information about all the others. Plus, most airlines supply their rates and flight availability to booking systems used by travel agents and online travel sites, called Global Distribution Systems.
There is generally not one set rate for a flight, but a range of prices depending on when you buy your ticket. The airline industry engages in "yield management" to adjust how many tickets it sells and for how much, according to the buyer and the market conditions. United Airlines, for example, uses a computer system called Orion to predict passenger load, how many passengers will pay a higher fare, and the optimal time to change rates. Systems like Orion help carriers guess how many tickets they can sell, say, more than 14 days in advance at the lowest price, and then decide when to raise the price in order to make a greater profit.
The customer matters too. If a route attracts lots of business travelers, the airline may up the price for tickets booked on that route at the last minute because, generally, business travelers book flights closer to the time they travel and are willing to pay more. Likewise, it may reserve a block of last-minute seats to accommodate business travelers so they'll develop loyalty to the airline. Vacation travelers, on the other hand, tend to book flights well in advance and are more willing to endure long layovers or weekend travel restrictions to save money.
Lately, fuel surcharges have been increasing how much customers pay. The weather, last year's rates, taxes, the price of tea in China … pretty much anything can affect air travel prices. Columnist Dave Barry once joked that Rudy the Fare Chicken pecks at a keyboard sprinkled with corn to determine ticket prices. If Rudy is sick, he added, Conrad the Fare Hamster takes over.
Got a question about today's news? Ask the Explainer.
Found at : http://en.wikipedia.org/wiki/Yield_management
Yield Management
Yield management, also known as revenue management, is the process of understanding, anticipating and reacting to consumer behaviour in order to maximize revenue. Firms that engage in yield management usually use computer yield management systems to do so. The Internet has greatly facilitated this process. Other terms to describe this process are revenue optimization and demand mangement.
In relation to Telecoms, a company that is focused on profits rather than sales is said to be undertaking yield management. Airlines, for example, use it. Airlines monitor through the use of specialized software how seats are being reserved and offer discounts when it appears as if seats will otherwise be vacant.
In addition, hotels used to use Revenue Management as a way to know when to sell what. Now demand management is becoming a more favorable way to calculate the rates, rooms and restrictions to sell in order to best maximize the return for the property.
Enterprises that use yield management periodically review transactions for goods or services already supplied and for goods or services to be supplied in the future. They may also review information (including statistics) about events (known future events such as holidays, or unexpected past events such as terrorist attacks), competitive information (including prices), seasonal patterns, and other pertinent factors that affect sales. The models attempt to forecast total demand for all products/services they provide, by market segment and price point. Since total demand normally exceeds what the particular firm can produce in that period, the models attempt to optimize the firm's outputs to maximize revenue.
The optimization attempts to answer the question: "Given our operating constraints, what is the best mix of products and/or services for us to produce and sell in the period, to generate the highest expected revenue?"
Optimization can help the firm adjust prices and to allocate capacity among market segments to maximize expected revenues. This can be done at different levels of detail:
by goods (such as a seat on a flight or a seat at an opera production)
by group of goods (such as the entire opera house or all the seats on a flight)
by market (such as sales from Seattle and Minneapolis for a flight going Seattle-Minneapolis-Boston)
overall (on all the routes an airline flies, or all the seats during an opera production season)
Yield management is particularly suitable when selling perishable products, ie goods that become unsellable at a point in time (for example air tickets just after a flight takes off). Industries that use yield management include airlines, hotels, stadiums and other venues with a fixed number of seats, and advertising. With an advance forecast of demand and pricing flexibility, buyers will self-sort based on their price sensitivity (using more power in off-peak hours or going to the theatre mid-week), their demand sensitivity (must have the higher cost early morning flight or must go to the Saturday night opera) or their time of purchase (usually paying a premium for the luxury of booking late).
In this way, yield management's overall aim is to provide an optimal mix of goods at a variety of price points at different points in time. The system will try to maintain a distribution of purchases over time that is balanced as well as high.
Good yield management maximizes (or at least significantly increases) revenue production for the same number of units, by taking advantage of the forecast of high demand/low demand periods, effectively shifting demand from high demand periods to low demand periods and by charging a premium for late bookings. While yield management systems tend to generate higher revenues, the revenue streams tends to arrive later in the booking horizon as more capacity is held for late sale at premium prices.
Firms faced with lack of pricing power sometimes turn to yield management as a last resort. After a year or two using yield management, many of them are surprised to discover they have actually lowered prices for the majority of their opera seats or hotel rooms or other products. That is, they offer far higher discounts more frequently for off-peak times, while raising prices only marginally for peak times, resulting in higher revenue overall.
By doing this, they have actually increased demand by selectively introducing many more price points, as they learn about and react to the diversity of interests and purchase drivers of their customers.
By Melonyce McAfee
Updated Wednesday, Nov. 22, 2006, at 6:03 PM ET
This article found at : http://www.slate.com/id/2154261
Thanksgiving is the busiest holiday of the year for the airline industry. High travel demand means full seats and, presumably, full coffers for the airlines. But how do they decide how much to charge passengers?
The most important variable is competition. Until airline deregulation in the late 1970s, rates for flights were more-or-less determined by distance. Now, ticket prices have almost nothing to do with how far you're traveling and more to do with how many airlines are competing for your business. A short route flown by few carriers may be more expensive than a long route flown by all the major airlines. For example, flights between Portland and Medford, Ore., used to boast extraordinarily high per-mile fares, at least until more airlines began offering that service. The presence of discount carriers, such as JetBlue or Southwest Airlines, can drive prices even lower on a given route.
An airline will adjust its ticket prices on a minute-by-minute basis, depending on what competitors are charging. But how do they know the other guys' prices? Each airline enters its rates into the Airline Tariff Publishing Co. computer system, which in turn supplies information about all the others. Plus, most airlines supply their rates and flight availability to booking systems used by travel agents and online travel sites, called Global Distribution Systems.
There is generally not one set rate for a flight, but a range of prices depending on when you buy your ticket. The airline industry engages in "yield management" to adjust how many tickets it sells and for how much, according to the buyer and the market conditions. United Airlines, for example, uses a computer system called Orion to predict passenger load, how many passengers will pay a higher fare, and the optimal time to change rates. Systems like Orion help carriers guess how many tickets they can sell, say, more than 14 days in advance at the lowest price, and then decide when to raise the price in order to make a greater profit.
The customer matters too. If a route attracts lots of business travelers, the airline may up the price for tickets booked on that route at the last minute because, generally, business travelers book flights closer to the time they travel and are willing to pay more. Likewise, it may reserve a block of last-minute seats to accommodate business travelers so they'll develop loyalty to the airline. Vacation travelers, on the other hand, tend to book flights well in advance and are more willing to endure long layovers or weekend travel restrictions to save money.
Lately, fuel surcharges have been increasing how much customers pay. The weather, last year's rates, taxes, the price of tea in China … pretty much anything can affect air travel prices. Columnist Dave Barry once joked that Rudy the Fare Chicken pecks at a keyboard sprinkled with corn to determine ticket prices. If Rudy is sick, he added, Conrad the Fare Hamster takes over.
Got a question about today's news? Ask the Explainer.
Found at : http://en.wikipedia.org/wiki/Yield_management
Yield Management
Yield management, also known as revenue management, is the process of understanding, anticipating and reacting to consumer behaviour in order to maximize revenue. Firms that engage in yield management usually use computer yield management systems to do so. The Internet has greatly facilitated this process. Other terms to describe this process are revenue optimization and demand mangement.
In relation to Telecoms, a company that is focused on profits rather than sales is said to be undertaking yield management. Airlines, for example, use it. Airlines monitor through the use of specialized software how seats are being reserved and offer discounts when it appears as if seats will otherwise be vacant.
In addition, hotels used to use Revenue Management as a way to know when to sell what. Now demand management is becoming a more favorable way to calculate the rates, rooms and restrictions to sell in order to best maximize the return for the property.
Enterprises that use yield management periodically review transactions for goods or services already supplied and for goods or services to be supplied in the future. They may also review information (including statistics) about events (known future events such as holidays, or unexpected past events such as terrorist attacks), competitive information (including prices), seasonal patterns, and other pertinent factors that affect sales. The models attempt to forecast total demand for all products/services they provide, by market segment and price point. Since total demand normally exceeds what the particular firm can produce in that period, the models attempt to optimize the firm's outputs to maximize revenue.
The optimization attempts to answer the question: "Given our operating constraints, what is the best mix of products and/or services for us to produce and sell in the period, to generate the highest expected revenue?"
Optimization can help the firm adjust prices and to allocate capacity among market segments to maximize expected revenues. This can be done at different levels of detail:
by goods (such as a seat on a flight or a seat at an opera production)
by group of goods (such as the entire opera house or all the seats on a flight)
by market (such as sales from Seattle and Minneapolis for a flight going Seattle-Minneapolis-Boston)
overall (on all the routes an airline flies, or all the seats during an opera production season)
Yield management is particularly suitable when selling perishable products, ie goods that become unsellable at a point in time (for example air tickets just after a flight takes off). Industries that use yield management include airlines, hotels, stadiums and other venues with a fixed number of seats, and advertising. With an advance forecast of demand and pricing flexibility, buyers will self-sort based on their price sensitivity (using more power in off-peak hours or going to the theatre mid-week), their demand sensitivity (must have the higher cost early morning flight or must go to the Saturday night opera) or their time of purchase (usually paying a premium for the luxury of booking late).
In this way, yield management's overall aim is to provide an optimal mix of goods at a variety of price points at different points in time. The system will try to maintain a distribution of purchases over time that is balanced as well as high.
Good yield management maximizes (or at least significantly increases) revenue production for the same number of units, by taking advantage of the forecast of high demand/low demand periods, effectively shifting demand from high demand periods to low demand periods and by charging a premium for late bookings. While yield management systems tend to generate higher revenues, the revenue streams tends to arrive later in the booking horizon as more capacity is held for late sale at premium prices.
Firms faced with lack of pricing power sometimes turn to yield management as a last resort. After a year or two using yield management, many of them are surprised to discover they have actually lowered prices for the majority of their opera seats or hotel rooms or other products. That is, they offer far higher discounts more frequently for off-peak times, while raising prices only marginally for peak times, resulting in higher revenue overall.
By doing this, they have actually increased demand by selectively introducing many more price points, as they learn about and react to the diversity of interests and purchase drivers of their customers.
Friday, November 17, 2006
Emerging Tourism - Breaking Barriers: Managing Growth
As millions of inhabitants in the new emerging tourism source markets prepare to venture within and beyond their borders for the first time, well-seasoned markets and global businesses continue to generate more and more travel. However, the speed and vigour of this global Travel & Tourism growth is not being met with adequate levels of planning, facilitation and development.
WTTC President Jean-Claude Baumgarten stated, 'Travel & Tourism is enjoying exceptional growth across the world. By the end of this year, Travel & Tourism is set to account for 10.3 per cent of global GDP and more than 234 million jobs. Going forward, WTTC forecasts show continued growth across the world, averaging 4.6 per cent per annum globally over the next ten years.' Jean-Claude Baumgarten continued, 'It is time to ask ourselves - Has the industry fulfilled its promises? Are we all exemplary world citizens? What are the environmental, social and cultural implications of the continued growth of the industry? How can the public and private sector work together towards a sustainable future?'
These are just some of the questions that will be discussed when chairmen, CEOs and presidents of the world's foremost Travel & Tourism companies assemble with Ministers, senior government officials and media from across the world at the Global Travel & Tourism Summit in May 2007.
On the first day of World Travel Market, the World Travel & Tourism Council (WTTC) launched the theme of the 7th Global Travel & Tourism Summit. The annual gathering will take place in Lisbon, Portugal May 10 to12, 2007. The debate will be around the theme Breaking Barriers - Managing Growth.
The Portuguese Secretary of State of Tourism Bernardo Trindade said at the launch, 'In order to sustain an industry like Travel & Tourism, it is absolutely imperative that our planet is protected. As an industry, we must manage growth responsibly and invest now for a sustainable future, reconciling economics, the environment and social and cultural priorities. Lisbon will provide the ideal platform to encourage global leaders to broadcast a message of strength and unity for the Travel & Tourism industry.'
Set in WTTC's signature 'in-the-round' format, the Summit will steer away from traditional speeches and presentations, instead preferring to address issues head on, through debate. The event provides a unique platform for discussion between the leading public and private sector decision makers who will shape the future of one of the world's largest industries - Travel & Tourism.
WTTC President Jean-Claude Baumgarten stated, 'Travel & Tourism is enjoying exceptional growth across the world. By the end of this year, Travel & Tourism is set to account for 10.3 per cent of global GDP and more than 234 million jobs. Going forward, WTTC forecasts show continued growth across the world, averaging 4.6 per cent per annum globally over the next ten years.' Jean-Claude Baumgarten continued, 'It is time to ask ourselves - Has the industry fulfilled its promises? Are we all exemplary world citizens? What are the environmental, social and cultural implications of the continued growth of the industry? How can the public and private sector work together towards a sustainable future?'
These are just some of the questions that will be discussed when chairmen, CEOs and presidents of the world's foremost Travel & Tourism companies assemble with Ministers, senior government officials and media from across the world at the Global Travel & Tourism Summit in May 2007.
On the first day of World Travel Market, the World Travel & Tourism Council (WTTC) launched the theme of the 7th Global Travel & Tourism Summit. The annual gathering will take place in Lisbon, Portugal May 10 to12, 2007. The debate will be around the theme Breaking Barriers - Managing Growth.
The Portuguese Secretary of State of Tourism Bernardo Trindade said at the launch, 'In order to sustain an industry like Travel & Tourism, it is absolutely imperative that our planet is protected. As an industry, we must manage growth responsibly and invest now for a sustainable future, reconciling economics, the environment and social and cultural priorities. Lisbon will provide the ideal platform to encourage global leaders to broadcast a message of strength and unity for the Travel & Tourism industry.'
Set in WTTC's signature 'in-the-round' format, the Summit will steer away from traditional speeches and presentations, instead preferring to address issues head on, through debate. The event provides a unique platform for discussion between the leading public and private sector decision makers who will shape the future of one of the world's largest industries - Travel & Tourism.
Tuesday, November 14, 2006
Executive Summary: Ecotourism Emerging Industry Forum
For more information go to:
http://www.planeta.com/ecotravel/tour/emergingforumsummary.html
ORGANIZERS
Planeta.com (email) is the first website focusing on ecotourism and sustainable travel. Created in 1994, the site has more than 10,000 pages and has garnered numerous awards, including honors from the Mexican government and groups including Conservation International and the Council of Latin American Geographers.
EplerWood International (email) is a private consulting firm specializing in business, market analysis, product development, planning, training and marketing of ecotourism and sustainable tourism.
Introduction
The Ecotourism Emerging Industry Forum was broken down into 7 dialogue areas: Developing Infrastructure for Sustainable Tourism, Private Sector/Public Sector Collaboration, Finance for SMEs, Communities and SMEs, Marketing and Market Development, Interpretive Programs, Triple Bottom Line Business Structures and Strategies each of which resulted in a dialogue that was characterized by excellent insights into the state of the art of developing ecotourism as a sustainable development tool.
Participants discussed the projects they themselves had developed, the challenges they faced, and the possibilities for improving their results and the results of investment in ecotourism in the future. Extra care was taken to involve the private sector, which frequently does not take part in dialogues regarding ecotourism at international forums. Because this was an on-line dialogue, which was open for posts throughout a 3 week period in November 2005, there was an excellent opportunity for busy participants to share their experiences without having to attend a traditional event.
Developing Infrastructure for Sustainable Tourism
Participants found that ecotourism projects, as opposed to larger sustainable tourism projects, are frequently solving infrastructure problems in remote natural areas, at the lodge level without the benefit of opportunity to plan at the regional or destination level. It was remarked that "building green" is a regional issue and that planning at this scale is essential. However, it was noted that rural areas frequently do not get the benefit of larger scale infrastructure planning, because the taxes generated in rural areas will not provide the internal rate of return governments need to justify building the infrastructure required.
In the case of the Cree Village Ecolodge and the new Wa-show James Bay Wilderness Lodge on native lands in northern Canada, the project developers found they had to cope with solving infrastructure issues without the benefit of local municipalities or with any regional infrastructure program that was underway. In order to meet sustainability goals, the project was forced to pay a very high cost to obtain sustainable technologies without the benefit of the economy of scale that could be achieved if more projects were clustered in the area, or if the government were providing sustainable technology solutions as part of a larger program for the region.
Larger scale investments in sustainable tourism, such as the current Inter-American Development Bank Investment in Tela, Honduras have carefully linked sustainable infrastructure development, with the development of mainstream tourism, working diligently to ensure the footprint of the large-scale Tela development is not a burden on the local, fragile environment of coastal Honduras. Many environmental impact studies were done, and financing for the project includes full scale sustainable infrastructure, an Audubon certified golf course, and grants to the coastal protected area adjacent to the development.
However, it was found by Megan Epler Wood as part of her USAID consultancy in the Tela region, from which she was reporting during the forum, that in fact this sustainable infrastructure planning will not reach beyond the immediate dense development zone, and that two important protected areas and a highly vulnerable watershed were to be left unprotected, despite the fact that they were found within the zone between the regional airport La Ceiba and the Tela project. In the case of Honduras, the watershed in this corridor is highly prone to flooding and erosion, and the traditional communities have had little contact with tourism to date. A spiral of uncontrolled development could lead to communities selling land to speculators resulting in poor land-use, undermining of local community livelihoods and values, and watershed destruction. Unfortunately, the USAID project on sustainable tourism in this area was discontinued shortly after her visit due to budget cuts, and no further actions were taken based on the report – despite government approval and validation of its results.
The lessons here are that ecotourism and regional sustainable infrastructure planning must be linked, and that sustainable infrastructure planning must incorporate not only the areas where dense tourism development is planned, but where high probability "sprawl" corridors in fragile natural areas with vulnerable local communities exist. Planning for sustainable infrastructure at the regional level is still in its infancy, with few projects taking such considerations into account. It is therefore recommended to donors that ecotourism planning be linked to larger integrated development planning programs on a regional scale.
Public-Private Partnerships (PPPs)
It was concluded that experiences in the public-private development of ecotourism and sustainable tourism are still limited – except in the field of tourism marketing. Some outstanding examples of public private planning in Canada with First Nations were brought forward: The Quu'as West Coast Trail Society, the Clayoquot Sound World Biosphere Reserve, and Haidi Gwaii, Queen Charlotte Islands. It was pointed out that these successes must be attributed to the sustained outreach and investment by the Canadian government.
Experts working in transition economies noted, they must first seek to foster the strength and quality of business development practices to help ensure the business community is independent and has adequate capacity before re-introducing prospects for public involvement to ensure there is a proper balance between the public and private parties, to make the PPP concept work.
NGO representatives suggested they can help facilitate a more progressive relationship between governments seeking to attract more investment to generate jobs, and companies that are seeking tax breaks and concessions from government to improve profitability. It was observed that middle ground objectives must be created to make PPPs functional. Governments must increasingly seek to meet the needs of industry by providing proper land-use planning and adequate, sustainable infrastructure, while at the same time leveraging private investment. The private sector needs to manage "risks" in a new context, including not only health and safety for clients, but also environmental protection and local social welfare.
Finance for SMEs
A question was raised by FRI Ecological Services on why the firm faced so much difficulty raising finance for their proposed tourism project in Guyana despite the fact there was $5 million available from donors. It was noted that the cost of working with donors was far too high for small scale ecotourism developers to consider.
It was mentioned that using a hybrid model of financing a private sector project through traditional means, but allying with NGOs or creating a NGO partner as part of corporate development to raise grants to pay for external costs, such as environmental conservation and social welfare, is a model that has been successful for some companies, such as Rainforest Expeditions.
It was noted that because donors have asked private sector firms to work using NGO models, many unrealistic ecotourism plans have been developed that have resulted in failed enterprises. Because donors have also financed NGOs to develop ecotourism enterprises, there are many poorly managed ecotourism enterprises now seeking to reorganize their ecotourism operations into private business models.
A specific case in Central America was brought up where a leading NGO was developing a business plan for expansion of their ecotourism program requesting "investment" without offering any rate of return. The NGO was dependent on ecotourism for its operational costs, and was mixing the concept of donation without return with investment which must have a return. The NGO's ecotourism enterprise was being hindered from growth by poor business planning, finance, and management systems despite the fact they had a relatively successful operation. Their inability to separate ecotourism business from their NGO management model was stifling the potential of their ecotourism enterprise.
The overall approach of donors to provide NGOs with the funding to develop enterprises was discussed, and most agreed that a new more business friendly approach to ecotourism development, which fosters small businesses directly, and does not hinge on working with NGOs would be more productive
Financing community enterprises was also discussed, and Canyon Travel, a small private sector firm noted they have had good success financing community enterprises, creating a win-win between the firm and their community partners. But this firm also commented that it is still a challenge to maintain their "ecovision" while trying to justify the higher costs of operating in a remote location with community employment agreements – when other competitors do not embrace the same responsibilities or costs.
Overall it was clear that small businesses will need specially designed financing from donors to meet all the objectives of ecotourism while providing the appropriate business and marketing models for enterprise success.
Communities and SMEs
It was agreed from the beginning of the forum that most participants felt that donors need to support joint ventures between communities and the private sector as the best option for fostering viable enterprises. Nomadic Journeys and Tropic Ecological Adventures, offered their examples of partnering with local communities to develop viable, marketable on-going enterprises in their regions.
However, it was noted that when business is established in sites where poverty is high, infrastructure is poor, and ethnic differences tend to be sensitive -- donors need to help business to be very responsive to these issues.
One area of technical assistance to assist business that was recommended is the advance profiling of social, political, and livelihood strategies in communities before enterprise development efforts are launched. It was also recommended that any training programs offered should be done less in the class-room and more on-the-scene.
An Inuit community tourism development example in Pangniitung was provided which pointed out the benefits for local communities of controlling tourism development through contracts with tour operators and organized groups – while avoiding independent visitors. Other guidelines offered were to provide communities with an advance knowledge of the pros and cons of tourism, and to develop a community strategy for tourism development that invites the opportunity for private sector investment, with on-going monitoring of the project.
Wildland Adventure's involvement with the Maasai Environmental Resource Coalition led them to recommend community partners that have strong leadership, and advisory decision making board, and the involvement of tour operators from very early in the project development process.
It was pointed out that community involvement in project development takes considerable time and often consultants are not given the time required. This job is often given to NGOs who lack an understanding of ecotourism project development, thereby not giving the community's input in appropriately phased and designed project development procedures. Even in Canada, it was noted that the time to develop community-led project processes is rarely supported.
Community based tourism marketing support has often led to unsatisfactory outcomes for the communities. It was agreed that it is insufficient to establish websites on behalf of the communities without determining how the community will manage visitor inquiries, bookings, and the maintenance and up-dating of the website.
Overall, it was noted that community based tourism needs to be planned like all businesses, with business planning, feasibility studies, infrastructure planning and training. In addition there needs to be additional time allowed and support from donors for community involvement procedures, and operational support once the enterprises are up and running for a reasonable period of time. Rarely can all these development phases for community based ecotourism start-ups be supported within a 3 year project window, and this leaves many communities either improperly prepared, inadequately involved in all phases of planning, or with insufficient operations and marketing systems.
Marketing and Market Development
A question was asked at the beginning of this topic, how to increase competitiveness and profitability of tourism SMEs in high biodiversity areas? How do we effectively grow these businesses? How do we encourage outbound eco/adventure operators to partner and promote SMEs?
The consensus was that there needs to be stronger support of market-based approaches that would attract business partnering and reinforce supply chains, and bolster effective marketing through existing supply chains – not by reinventing the wheel and attempting to market outside existing market supply and demand structures.
The question was raised if certification can be an effective marketing tool. While most participants pointed out that there is no evidence that certification leverages markets, and that in fact consumers are almost entirely unaware of tourism certification, it was pointed out that in Sweden an effective branding campaign, Nature's Best, has both achieved market recognition and helped bring accountability to the industry through certification. This is being achieved through a public-private partnership that has strong industry buy-in and is working as a destination marketing tool. In other countries, most agreed that business alliances, not certification, are needed to achieve improved market reach for ecotourism. But many felt that ecotourism as a term, though increasingly used by travelers, is still not a term the industry embraces.
Internet marketing was found to be a challenge for some NGOs and community projects, but most participants remarked that it levels the playing field and is highly cost effective.
Overall the priority of understanding market channels, and creating marketing systems that can bring together and ally SMEs and their community partners on a regional basis to improve cost-effectiveness of ecotourism marketing for each alliance member was endorsed as the most likely tactic to create a viable system for improving marketing effectiveness for ecotourism companies.
Intepretive Programs
The pivotal nature of naturalist guides was raised immediately as the leading "asset" that gives one ecotourism company or project a market edge over another.
Other ideas such as geo-caching as a new tool for raising excitement about visiting new areas and lesser known regions was mentioned and other technology tools, such as creating a CD of local sounds or developing a personalized GPS map of places each client visits were suggested as interpretative program "value addeds."
It was pointed out that indigenous guides are often trained by biologists and this can actually cause them to undervalue their own knowledge of local plants and animals, in favor of learning scientific names. It was suggested that indigenous guides should be trained to value their own knowledge and to share their own stories, legends and local names. It was pointed out in response that some groups, such as birders, require scientific names for educational purposes, but that most general ecotourists do not.
Triple Bottom Line Business Structures and Strategies
Certification became the main topic of discussion in this part of the forum. However, it was discussed not only as a tool to foster best practice, but to ensure quality control. And it was put into the context of its economic feasibility, contribution to market access, and accessibility to micro and small enterprises in developing countries.
Some parties felt more research is still required on the value of ecotourism certification, while others pointed out that millions of dollars of donor funds have been spent and that there is still a divided opinion on its value. Participants pointed out that to date certification has gained a foothold in only a few localities, such as Australia and Sweden – noticeably developed countries, with good tax bases, excellent infrastructure, and a significant amount of heterogeneity in their business tactical thinking. It was pointed out that experimenting with this approach in developing countries where ecotourism is still emerging as a business economy is risky. Participants pointed out that when nations are poor and investment is scarce, attention first needs to be devoted to competitive enterprise development, job creation, and economic outcomes at the macro and local levels. It was further noted that "best practice workshops" which have become widespread in the developing world, via donor support, are unlikely to result in outcomes of any lasting value until businesses have profits.
The value of Build, Operate and Transfer (BOT) models that attract private sector investment in community lodges with a return on investment built in, joint operation programs, and transfer of the property to the community at the end of the project are still undergoing review. No project has yet transferred its assets to the community as yet, as the model generally includes 20 or more years of joint operations before transfer takes place and no project has yet hit the 20 year turn over date. These projects have provided a good deal of security and long-term business functionality to demanding projects in remote regions, but may hit a difficult period when the time of transfer is required.
The value of Corporate Social Responsibility reporting was discussed and it was revealed that tourism as an industrial sector has been slow to embrace the ideal of CSR reporting. While UNEP invested considerable funds in reporting guidelines for the tourism industry through the Global Reporting Initiative (GRI), it was found subsequent to the forum via inquiry that few if any tourism businesses have used the reporting guidelines according to staff working at GRI.
While ecotourism certification should not be abandoned as a tool to achieve sustainability, and quite a few participants underwrote their thinking that it deserves considerable attention and effort -- it is unlikely to produce results for years according to excellent research on the matter quoted in the forum. It therefore represents a highly risky investment in developing country economies that should only be considered by donors after a competitive, ecotourism economy has been established.
Final Recommendations
Sustainability requires the involvement of governments, business, and NGOs. At present, donors have largely focused on funding best practice of businesses, NGO technical support of local enterprises and protected areas, and community enterprise development. This supply side approach has not been fully connected to the marketplace and as a result has not resulted in viable enterprise development and has not adequately used the existing power of private sector supply chains to create more vibrant ecotourism economies around the world that could do much more to sustain local communities and conserve local environments.
To create a strategy that will both facilitate investment in sustainable tourism and foster greater sustainability on a larger scale, donors will need to work directly with governments on the provision of adequate sustainable infrastructure in order to develop sustainable tourism and ecotourism on a regional scale. At present ecotourism developers are largely working without governmental or donor support to help them create an economy of scale for their efforts.
While public private planning of tourism is still new and untested, except in marketing, it appears that the careful involvement of both the public and private sector in regional planning of sustainable tourism could be a highly desirable means of developing ecotourism in conjunction with more mass tourism simultaneously, with investment returns for government, protection built in for communities, and the potential of funding the conservation of natural resources on a destination scale. The experience of participants showed that regional planning is required to make sustainable tourism a genuine output of donor programs and that public private planning is likely to be the best tool to achieve this.
It was agreed that financing for ecotourism programs needs to be moved from NGOs to SMEs, and that SMEs should be given the tools to finance and help develop community based tourism. It was universally agreed that joint ventures between private sector businesses and communities is the best model for achieving viable community based tourism projects.
It was noted that businesses seeking to meet sustainable tourism development models will need assistance covering the additional costs of working with communities and developing the most environmentally sensitive business operations. One type of technical assistance recommended to assist business was the advance profiling of social, political and livelihood strategies in communities before enterprise development efforts are launched. It was also recommended that training programs offer on-the-scene, practical workshops, not classroom exercises.
Overall it was agreed that community based ecotourism development requires all the same approaches as other businesses, but that community involvement procedures make this process longer than standard business development. Frequently there is not enough time in a 3-year donor project to complete all the necessary phases of community-based enterprise development. It is for this reason that private sector partners are required, but they must receive support to cover the costs of sharing all of their business planning, management, operations, and marketing tools. Stronger market based approaches that will attract business partners and reinforce supply chains, and bolster effective marketing through existing supply chains was recommended.
It was recommended that business alliances are considered as a cost effective means at the local level to achieve more effective marketing systems for ecotourism. It was recommended that donors help SMEs ally with their community partners in local, regional and international Internet marketing programs. These alliances will need support to build the capacity to handle bookings, customer service, web-site maintenance, and to ensure local quality control mechanisms of all their partners are working and in place.
Interpretive program development is a highly important component of ecotourism that must be taken into account as part of ecotourism enterprise development.
Ecotourism's triple bottom lines are well understood to be social, environmental and economic. To date donor's have largely sought to ensure these bottom lines are met by funding certification and best practice workshops. While there was no agreement on the value of certification in the marketplace, it was pointed out that millions of donor dollars have been spent on the question and that results indicate it takes over 10 years for investment in certification to result in more marketable programs. It was pointed out that given the shortage of funds for sustainable tourism development to date that other priorities, such as enterprise development strategies that are market-based, need to be given a higher priority in order to meet immediate local needs. Other triple bottom line development practices discussed, such as Corporate Social Responsibility reporting and Build, Operate and Transfer programs are in their infancies, but both appear to be promising tools which are at the experimental stage.
http://www.planeta.com/ecotravel/tour/emergingforumsummary.html
ORGANIZERS
Planeta.com (email) is the first website focusing on ecotourism and sustainable travel. Created in 1994, the site has more than 10,000 pages and has garnered numerous awards, including honors from the Mexican government and groups including Conservation International and the Council of Latin American Geographers.
EplerWood International (email) is a private consulting firm specializing in business, market analysis, product development, planning, training and marketing of ecotourism and sustainable tourism.
Introduction
The Ecotourism Emerging Industry Forum was broken down into 7 dialogue areas: Developing Infrastructure for Sustainable Tourism, Private Sector/Public Sector Collaboration, Finance for SMEs, Communities and SMEs, Marketing and Market Development, Interpretive Programs, Triple Bottom Line Business Structures and Strategies each of which resulted in a dialogue that was characterized by excellent insights into the state of the art of developing ecotourism as a sustainable development tool.
Participants discussed the projects they themselves had developed, the challenges they faced, and the possibilities for improving their results and the results of investment in ecotourism in the future. Extra care was taken to involve the private sector, which frequently does not take part in dialogues regarding ecotourism at international forums. Because this was an on-line dialogue, which was open for posts throughout a 3 week period in November 2005, there was an excellent opportunity for busy participants to share their experiences without having to attend a traditional event.
Developing Infrastructure for Sustainable Tourism
Participants found that ecotourism projects, as opposed to larger sustainable tourism projects, are frequently solving infrastructure problems in remote natural areas, at the lodge level without the benefit of opportunity to plan at the regional or destination level. It was remarked that "building green" is a regional issue and that planning at this scale is essential. However, it was noted that rural areas frequently do not get the benefit of larger scale infrastructure planning, because the taxes generated in rural areas will not provide the internal rate of return governments need to justify building the infrastructure required.
In the case of the Cree Village Ecolodge and the new Wa-show James Bay Wilderness Lodge on native lands in northern Canada, the project developers found they had to cope with solving infrastructure issues without the benefit of local municipalities or with any regional infrastructure program that was underway. In order to meet sustainability goals, the project was forced to pay a very high cost to obtain sustainable technologies without the benefit of the economy of scale that could be achieved if more projects were clustered in the area, or if the government were providing sustainable technology solutions as part of a larger program for the region.
Larger scale investments in sustainable tourism, such as the current Inter-American Development Bank Investment in Tela, Honduras have carefully linked sustainable infrastructure development, with the development of mainstream tourism, working diligently to ensure the footprint of the large-scale Tela development is not a burden on the local, fragile environment of coastal Honduras. Many environmental impact studies were done, and financing for the project includes full scale sustainable infrastructure, an Audubon certified golf course, and grants to the coastal protected area adjacent to the development.
However, it was found by Megan Epler Wood as part of her USAID consultancy in the Tela region, from which she was reporting during the forum, that in fact this sustainable infrastructure planning will not reach beyond the immediate dense development zone, and that two important protected areas and a highly vulnerable watershed were to be left unprotected, despite the fact that they were found within the zone between the regional airport La Ceiba and the Tela project. In the case of Honduras, the watershed in this corridor is highly prone to flooding and erosion, and the traditional communities have had little contact with tourism to date. A spiral of uncontrolled development could lead to communities selling land to speculators resulting in poor land-use, undermining of local community livelihoods and values, and watershed destruction. Unfortunately, the USAID project on sustainable tourism in this area was discontinued shortly after her visit due to budget cuts, and no further actions were taken based on the report – despite government approval and validation of its results.
The lessons here are that ecotourism and regional sustainable infrastructure planning must be linked, and that sustainable infrastructure planning must incorporate not only the areas where dense tourism development is planned, but where high probability "sprawl" corridors in fragile natural areas with vulnerable local communities exist. Planning for sustainable infrastructure at the regional level is still in its infancy, with few projects taking such considerations into account. It is therefore recommended to donors that ecotourism planning be linked to larger integrated development planning programs on a regional scale.
Public-Private Partnerships (PPPs)
It was concluded that experiences in the public-private development of ecotourism and sustainable tourism are still limited – except in the field of tourism marketing. Some outstanding examples of public private planning in Canada with First Nations were brought forward: The Quu'as West Coast Trail Society, the Clayoquot Sound World Biosphere Reserve, and Haidi Gwaii, Queen Charlotte Islands. It was pointed out that these successes must be attributed to the sustained outreach and investment by the Canadian government.
Experts working in transition economies noted, they must first seek to foster the strength and quality of business development practices to help ensure the business community is independent and has adequate capacity before re-introducing prospects for public involvement to ensure there is a proper balance between the public and private parties, to make the PPP concept work.
NGO representatives suggested they can help facilitate a more progressive relationship between governments seeking to attract more investment to generate jobs, and companies that are seeking tax breaks and concessions from government to improve profitability. It was observed that middle ground objectives must be created to make PPPs functional. Governments must increasingly seek to meet the needs of industry by providing proper land-use planning and adequate, sustainable infrastructure, while at the same time leveraging private investment. The private sector needs to manage "risks" in a new context, including not only health and safety for clients, but also environmental protection and local social welfare.
Finance for SMEs
A question was raised by FRI Ecological Services on why the firm faced so much difficulty raising finance for their proposed tourism project in Guyana despite the fact there was $5 million available from donors. It was noted that the cost of working with donors was far too high for small scale ecotourism developers to consider.
It was mentioned that using a hybrid model of financing a private sector project through traditional means, but allying with NGOs or creating a NGO partner as part of corporate development to raise grants to pay for external costs, such as environmental conservation and social welfare, is a model that has been successful for some companies, such as Rainforest Expeditions.
It was noted that because donors have asked private sector firms to work using NGO models, many unrealistic ecotourism plans have been developed that have resulted in failed enterprises. Because donors have also financed NGOs to develop ecotourism enterprises, there are many poorly managed ecotourism enterprises now seeking to reorganize their ecotourism operations into private business models.
A specific case in Central America was brought up where a leading NGO was developing a business plan for expansion of their ecotourism program requesting "investment" without offering any rate of return. The NGO was dependent on ecotourism for its operational costs, and was mixing the concept of donation without return with investment which must have a return. The NGO's ecotourism enterprise was being hindered from growth by poor business planning, finance, and management systems despite the fact they had a relatively successful operation. Their inability to separate ecotourism business from their NGO management model was stifling the potential of their ecotourism enterprise.
The overall approach of donors to provide NGOs with the funding to develop enterprises was discussed, and most agreed that a new more business friendly approach to ecotourism development, which fosters small businesses directly, and does not hinge on working with NGOs would be more productive
Financing community enterprises was also discussed, and Canyon Travel, a small private sector firm noted they have had good success financing community enterprises, creating a win-win between the firm and their community partners. But this firm also commented that it is still a challenge to maintain their "ecovision" while trying to justify the higher costs of operating in a remote location with community employment agreements – when other competitors do not embrace the same responsibilities or costs.
Overall it was clear that small businesses will need specially designed financing from donors to meet all the objectives of ecotourism while providing the appropriate business and marketing models for enterprise success.
Communities and SMEs
It was agreed from the beginning of the forum that most participants felt that donors need to support joint ventures between communities and the private sector as the best option for fostering viable enterprises. Nomadic Journeys and Tropic Ecological Adventures, offered their examples of partnering with local communities to develop viable, marketable on-going enterprises in their regions.
However, it was noted that when business is established in sites where poverty is high, infrastructure is poor, and ethnic differences tend to be sensitive -- donors need to help business to be very responsive to these issues.
One area of technical assistance to assist business that was recommended is the advance profiling of social, political, and livelihood strategies in communities before enterprise development efforts are launched. It was also recommended that any training programs offered should be done less in the class-room and more on-the-scene.
An Inuit community tourism development example in Pangniitung was provided which pointed out the benefits for local communities of controlling tourism development through contracts with tour operators and organized groups – while avoiding independent visitors. Other guidelines offered were to provide communities with an advance knowledge of the pros and cons of tourism, and to develop a community strategy for tourism development that invites the opportunity for private sector investment, with on-going monitoring of the project.
Wildland Adventure's involvement with the Maasai Environmental Resource Coalition led them to recommend community partners that have strong leadership, and advisory decision making board, and the involvement of tour operators from very early in the project development process.
It was pointed out that community involvement in project development takes considerable time and often consultants are not given the time required. This job is often given to NGOs who lack an understanding of ecotourism project development, thereby not giving the community's input in appropriately phased and designed project development procedures. Even in Canada, it was noted that the time to develop community-led project processes is rarely supported.
Community based tourism marketing support has often led to unsatisfactory outcomes for the communities. It was agreed that it is insufficient to establish websites on behalf of the communities without determining how the community will manage visitor inquiries, bookings, and the maintenance and up-dating of the website.
Overall, it was noted that community based tourism needs to be planned like all businesses, with business planning, feasibility studies, infrastructure planning and training. In addition there needs to be additional time allowed and support from donors for community involvement procedures, and operational support once the enterprises are up and running for a reasonable period of time. Rarely can all these development phases for community based ecotourism start-ups be supported within a 3 year project window, and this leaves many communities either improperly prepared, inadequately involved in all phases of planning, or with insufficient operations and marketing systems.
Marketing and Market Development
A question was asked at the beginning of this topic, how to increase competitiveness and profitability of tourism SMEs in high biodiversity areas? How do we effectively grow these businesses? How do we encourage outbound eco/adventure operators to partner and promote SMEs?
The consensus was that there needs to be stronger support of market-based approaches that would attract business partnering and reinforce supply chains, and bolster effective marketing through existing supply chains – not by reinventing the wheel and attempting to market outside existing market supply and demand structures.
The question was raised if certification can be an effective marketing tool. While most participants pointed out that there is no evidence that certification leverages markets, and that in fact consumers are almost entirely unaware of tourism certification, it was pointed out that in Sweden an effective branding campaign, Nature's Best, has both achieved market recognition and helped bring accountability to the industry through certification. This is being achieved through a public-private partnership that has strong industry buy-in and is working as a destination marketing tool. In other countries, most agreed that business alliances, not certification, are needed to achieve improved market reach for ecotourism. But many felt that ecotourism as a term, though increasingly used by travelers, is still not a term the industry embraces.
Internet marketing was found to be a challenge for some NGOs and community projects, but most participants remarked that it levels the playing field and is highly cost effective.
Overall the priority of understanding market channels, and creating marketing systems that can bring together and ally SMEs and their community partners on a regional basis to improve cost-effectiveness of ecotourism marketing for each alliance member was endorsed as the most likely tactic to create a viable system for improving marketing effectiveness for ecotourism companies.
Intepretive Programs
The pivotal nature of naturalist guides was raised immediately as the leading "asset" that gives one ecotourism company or project a market edge over another.
Other ideas such as geo-caching as a new tool for raising excitement about visiting new areas and lesser known regions was mentioned and other technology tools, such as creating a CD of local sounds or developing a personalized GPS map of places each client visits were suggested as interpretative program "value addeds."
It was pointed out that indigenous guides are often trained by biologists and this can actually cause them to undervalue their own knowledge of local plants and animals, in favor of learning scientific names. It was suggested that indigenous guides should be trained to value their own knowledge and to share their own stories, legends and local names. It was pointed out in response that some groups, such as birders, require scientific names for educational purposes, but that most general ecotourists do not.
Triple Bottom Line Business Structures and Strategies
Certification became the main topic of discussion in this part of the forum. However, it was discussed not only as a tool to foster best practice, but to ensure quality control. And it was put into the context of its economic feasibility, contribution to market access, and accessibility to micro and small enterprises in developing countries.
Some parties felt more research is still required on the value of ecotourism certification, while others pointed out that millions of dollars of donor funds have been spent and that there is still a divided opinion on its value. Participants pointed out that to date certification has gained a foothold in only a few localities, such as Australia and Sweden – noticeably developed countries, with good tax bases, excellent infrastructure, and a significant amount of heterogeneity in their business tactical thinking. It was pointed out that experimenting with this approach in developing countries where ecotourism is still emerging as a business economy is risky. Participants pointed out that when nations are poor and investment is scarce, attention first needs to be devoted to competitive enterprise development, job creation, and economic outcomes at the macro and local levels. It was further noted that "best practice workshops" which have become widespread in the developing world, via donor support, are unlikely to result in outcomes of any lasting value until businesses have profits.
The value of Build, Operate and Transfer (BOT) models that attract private sector investment in community lodges with a return on investment built in, joint operation programs, and transfer of the property to the community at the end of the project are still undergoing review. No project has yet transferred its assets to the community as yet, as the model generally includes 20 or more years of joint operations before transfer takes place and no project has yet hit the 20 year turn over date. These projects have provided a good deal of security and long-term business functionality to demanding projects in remote regions, but may hit a difficult period when the time of transfer is required.
The value of Corporate Social Responsibility reporting was discussed and it was revealed that tourism as an industrial sector has been slow to embrace the ideal of CSR reporting. While UNEP invested considerable funds in reporting guidelines for the tourism industry through the Global Reporting Initiative (GRI), it was found subsequent to the forum via inquiry that few if any tourism businesses have used the reporting guidelines according to staff working at GRI.
While ecotourism certification should not be abandoned as a tool to achieve sustainability, and quite a few participants underwrote their thinking that it deserves considerable attention and effort -- it is unlikely to produce results for years according to excellent research on the matter quoted in the forum. It therefore represents a highly risky investment in developing country economies that should only be considered by donors after a competitive, ecotourism economy has been established.
Final Recommendations
Sustainability requires the involvement of governments, business, and NGOs. At present, donors have largely focused on funding best practice of businesses, NGO technical support of local enterprises and protected areas, and community enterprise development. This supply side approach has not been fully connected to the marketplace and as a result has not resulted in viable enterprise development and has not adequately used the existing power of private sector supply chains to create more vibrant ecotourism economies around the world that could do much more to sustain local communities and conserve local environments.
To create a strategy that will both facilitate investment in sustainable tourism and foster greater sustainability on a larger scale, donors will need to work directly with governments on the provision of adequate sustainable infrastructure in order to develop sustainable tourism and ecotourism on a regional scale. At present ecotourism developers are largely working without governmental or donor support to help them create an economy of scale for their efforts.
While public private planning of tourism is still new and untested, except in marketing, it appears that the careful involvement of both the public and private sector in regional planning of sustainable tourism could be a highly desirable means of developing ecotourism in conjunction with more mass tourism simultaneously, with investment returns for government, protection built in for communities, and the potential of funding the conservation of natural resources on a destination scale. The experience of participants showed that regional planning is required to make sustainable tourism a genuine output of donor programs and that public private planning is likely to be the best tool to achieve this.
It was agreed that financing for ecotourism programs needs to be moved from NGOs to SMEs, and that SMEs should be given the tools to finance and help develop community based tourism. It was universally agreed that joint ventures between private sector businesses and communities is the best model for achieving viable community based tourism projects.
It was noted that businesses seeking to meet sustainable tourism development models will need assistance covering the additional costs of working with communities and developing the most environmentally sensitive business operations. One type of technical assistance recommended to assist business was the advance profiling of social, political and livelihood strategies in communities before enterprise development efforts are launched. It was also recommended that training programs offer on-the-scene, practical workshops, not classroom exercises.
Overall it was agreed that community based ecotourism development requires all the same approaches as other businesses, but that community involvement procedures make this process longer than standard business development. Frequently there is not enough time in a 3-year donor project to complete all the necessary phases of community-based enterprise development. It is for this reason that private sector partners are required, but they must receive support to cover the costs of sharing all of their business planning, management, operations, and marketing tools. Stronger market based approaches that will attract business partners and reinforce supply chains, and bolster effective marketing through existing supply chains was recommended.
It was recommended that business alliances are considered as a cost effective means at the local level to achieve more effective marketing systems for ecotourism. It was recommended that donors help SMEs ally with their community partners in local, regional and international Internet marketing programs. These alliances will need support to build the capacity to handle bookings, customer service, web-site maintenance, and to ensure local quality control mechanisms of all their partners are working and in place.
Interpretive program development is a highly important component of ecotourism that must be taken into account as part of ecotourism enterprise development.
Ecotourism's triple bottom lines are well understood to be social, environmental and economic. To date donor's have largely sought to ensure these bottom lines are met by funding certification and best practice workshops. While there was no agreement on the value of certification in the marketplace, it was pointed out that millions of donor dollars have been spent on the question and that results indicate it takes over 10 years for investment in certification to result in more marketable programs. It was pointed out that given the shortage of funds for sustainable tourism development to date that other priorities, such as enterprise development strategies that are market-based, need to be given a higher priority in order to meet immediate local needs. Other triple bottom line development practices discussed, such as Corporate Social Responsibility reporting and Build, Operate and Transfer programs are in their infancies, but both appear to be promising tools which are at the experimental stage.
Wednesday, November 08, 2006
Spa Finder Announces 4th Annual Spa Trends to Watch for Calendar Year 2007
For more information on Spa Finder's 2007 spa trends forecast or to arrange an interview with Spa Finder President Susie Ellis, contact Betsy Isroelit: (213) 300-0108 or betsy@rbicom.com.
About Spa Finder, Inc.:
As the world's largest spa marketing and media company, Spa Finder reaches millions of health conscious consumers via its award-winning website, Spafinder.com. The company publishes Luxury SpaFinder Magazine, the trusted authority on luxury spas and associated lifestyles, as well as its annual Worldwide Guide to Spas, the ultimate spa-goers' resource. Spa Finder also operates the world's largest spa gift certificate and incentive programs as well as the Spa Distribution Network, the Internet's first online spa booking program.
Media Contact:
RBI Communications
Betsy Isroelit - (213) 300-0108, betsy@rbicom.com
New York, NY - November 1, 2006
The spa experts at Spa Finder, Inc., the global spa resource, have announced their fourth annual prediction of spa industry trends, providing an expert forecast of the innovations and ideas that will shape the world of spa in 2007.
As the point of connection between the thousands of spas and millions of spa consumers around the globe, Spa Finder offers a uniquely broad perspective of the spa industry. In recent years, the company has used this vantage point to provide industry watchers with a "sneak peek" at the big spa stories in the year ahead. Spa Finder has proven remarkably prescient with its annual predictions, which have included the popularization of spa residences and home spa design; the rapid growth of cosmetic med spas, medical wellness and mobile spas; the renewed interest in water experiences; and increased spa participation among men, pregnant women, teens, couples and groups.
"These trends will all continue to unfold and develop in 2007, and of course entirely new concepts will hit the scene," said Spa Finder, Inc. President Susie Ellis. "Evolution is the one constant in the vibrant world of spa, which is why we focus on predicting where the industry is going, rather than reporting where it's already been. For writers, spa enthusiasts and industry professionals who want to be on the cutting edge, this is what we see as the cutting edge - and where it will take us in the year ahead."
Following are Spa Finder's "10 Spa Trends to Watch for in 2007," based on widespread consumer input, extensive travel by the company's Luxury Spa Finder Magazine and Spafinder.com editorial staff, and its close working relationships with thousands of day and stay spas worldwide.
Sleep - A New Dawn in Spa Health
Exercise, good nutrition and stress management have long been the domain of spa programs. Now healthy sleep is being added to the curriculum, inspired by the emerging field of sleep medicine, which has revealed that sleep has a profound effect on appearance, weight, and well-being - and that we, as a nation, are dangerously sleep deprived.
Look for hotels and resorts to put even greater emphasis on creating ideal sleep environments through minimal light and sound, aromatherapy, ultra-relaxing spa treatments, etc. At destination spas (some of which already offer sleep programs) sleep specialists will help educate, diagnose and treat sleep apnea, insomnia and other disorders. More spas will focus on good sleep hygiene, offering sleep yoga programs and life coaches who address the underlying issues associated with poor sleep. Stay spas will also re-schedule their programs to start morning hikes and exercise programs a bit later (so people can sleep in) and allow for naps to help visitors catch up on their "sleep debt." Even day spas will get in on the sleep craze by offering relaxation lounges for a post treatment nap. (... Now if they would only let us snooze on the massage table after a massage instead of ushering us out.)
Detox
In the past "detox" denoted alcohol or drug rehabilitation, but today that definition has expanded to express any transition from unhealthful habits to healthful habits. As the culture continues to identify more "toxins" - such as dietary no-no's, stress, and environmental pollution - look for more people to turn to spas for a range of detox solutions, including relaxation, all-organic diets, sweating (exercise, steams and saunas), and the purging of emotional baggage through one-on-one or group therapy work.
Ironically, part of the momentum for this detox trend has been supplied by spas themselves, which over the past years have begun offering alcohol, caffeinated beverages, serve-yourself buffets, tempting desserts and fewer restrictions in general to attract a wider audience. The result? It's become harder and harder to end a spa vacation having lost weight or made significant changes in eating habits. Spa Finder is forecasting that core spa enthusiasts will begin to ask for more structure, less temptation, and more intensive programs - in short, more detox and less "tox."
Spa Retreats - On the March
For years destination spas have offered occasional "specialty weeks" where experts are brought in and like-minded people gather to focus on a specific area of interest, such as yoga, sexual health, or to address medical concerns such as arthritis or quitting smoking.
Now resorts and hotels are getting into the retreat business, adding specialty programs or special accommodations that appeal to their past guests - in effect becoming "destination spas" for a period of time. Look for offerings such as wellness workshops, spiritual retreats, boot camps, or "find your inner artist" getaways to energize resort and hotel spa programs, attracting solo travelers with group events, workshops and shared meals. On the horizon, we'll see day spas expand their group/community offerings with special workshops and even group outings to destination and resort spas for overnight stays.
Medical Tourism - In Search of Affordable Health
Medical wellness and cosmetic med spas are doing booming business by filling certain critical gaps in the traditional health care system. In 2007 more and more people will travel to another city, state or country for medical spa experiences, creating a new trend: medical tourism.
A range of new technologies will attract these medical tourists - DNA analysis, for example, and new generations of anti-aging medicines, injectables and lasers. But another big draw will be cost. Squeezed by domestic health care costs, many Americans are going online and discovering global destinations that offer cutting-edge medical procedures for a fraction of the cost ... often in beautiful, culturally rich locales like Bangkok, South Africa and India, to name a few.
Many hotel/resort spas will recognize the new opportunity that medical tourism presents and market themselves as ideal pre- and post-operation stays. Also look for some travel agents to act as lifestyle coaches, helping to plan vacations that include preventive medical procedures and aesthetic med spa treatments as part of the journey.
Move Into a Spa Lifestyle Community ... and Bring the Kids
Spa Finder initially identified the genesis of the spa real estate trend at the end of 2004, and already the company is tracking 200 such properties in various stages of development. This growth will continue in 2007 as spa residences move beyond being the retirement option of choice for aging baby boomers - the 21st century's answer to the golf community - to also attract younger families with children. Recognizing the growing priority among parents on raising their children in an active, healthful, communal environment (and avoiding the growing problems of childhood obesity and diabetes), more spa lifestyle communities will offer structured outdoor/exercise activities and healthy eating options just for children. This trend will also provide a great perk for older empty nesters, since the grandkids will have plenty to do when they visit.
The Bottom Line Becomes a Top-Line Consideration
More spa trends in the New Year will be driven by the bottom line, which will play an ever-larger role in shaping the competitive landscape and determining what the industry will offer. For example, the highest outlay for U.S. spa businesses is labor costs, which can consume over 50% of a spa's revenue. Domestically, this is one reason we'll be seeing an increase in "de-staffed" spa treatments, like heat and water experiences, which allow for a higher guest-to-therapist ratio. In general, as profits get tighter, revenue management models will become more sophisticated. Look for spa treatments to become more expensive on busy Saturdays and discounted on Monday and Tuesday mornings. Spa menu options, similarly, may change depending on seasons, time of day, and other factors affecting supply and demand.
On a positive note for consumers, more insurance companies will begin to cover complementary and alternative (CAM) (or integrative) health services, and more employers will subsidize spa-like services to promote a healthier, more productive work force.
Social Spa-ing
Community is the new privacy. For hundreds of years, "taking the waters" had been as much a social event as a personal therapy, but more recently hydrotherapy and heat/cold experiences have become solo undertakings as spa-goers have generally sought privacy and solitude in the spa setting. Spa Finder, however, is predicting that the search for solitude will be trumped by the natural desire for community and a growing awareness that social interaction is an important aspect of health. "Social spa-ing" will emerge as an exciting new term, describing the emphasis on opportunities to connect, converse, and play in the spa environment. (This social spa-ing trend also fits in nicely with the need to create more "de-staffed spa experiences" as discussed above.)
How Green Is My Spa?
The spa's mantra of body/mind/spirit is extending past the "self" to include others - and also the planet. Consumers are now factoring in a spa's green commitment when they choose a spa, and they're looking for a spa that does more than just recycle and offer organic food. And it's as much about respecting people as it is about respecting nature. Spa guests are rewarding a spa's efforts to incorporate authentic indigenous treatments, hire local staff, and contribute to the community. They're also welcoming education about local cultures and healing traditions and looking for holistic commitment on the part of spa personnel to contribute to sustainability and the health of guests, themselves and the planet at large. In short, spas and spa consumers are getting serious about terms like "natural," "organic," "holistic," "green," "eco-friendly," and "sustainable." And that's a good thing - naturally.
Beauty Inside-Out and Outside-In
Spa Finder forecasts that the spa industry will continue to lead innovation in skincare with new technologies and programs that recognize that beauty is much more than skin deep.
Inside Out
Spa visitors will continue to pursue maximum results by focusing on full-scale beauty regimens, from the inside out. Anti-aging foods rich in antioxidants such as berries, dark green leafy vegetables, salmon, and nuts are also part of the "inside-out" phenomenon as evidence mounts that what we eat has a major effect on how our skin ages. There is also a renewed interest in natural and organic products, spurred on by skin-care companies making purity a priority, not a false promise.
Outside In
"High spa IQ" consumers are curious about advances in beauty products, wanting to understand the science that makes skin-care products work so they can make intelligent choices. And there's plenty of science to learn about in the current beauty products market, including skin-care serums that penetrate the skin with peptides and nanotechnology, and basically work from the skin's deeper layers up. This new generation of products, exemplified by DDF's RMX Maximum, which uses growth factor hormones, and Remergent's DNA Repair, which fights sun damage, target the building blocks of our skin, fibroblasts and DNA, to improve our appearance, from the outside in.
Spa Finder asks: Will invasive face-lifts and cosmetic surgery soon be obsolete?
Spa Fusion
Thai massage (a fusion of yoga stretches and massage), Watsu (water and shiatsu), wellness (well-being and fitness) and yogalates (yoga and pilates) are just a few examples of spa fusion that we've seen in years past. In the year ahead, look for an acceleration of these sorts of combined modalities that produce even more powerful benefits than the sum of their parts.
Ryu-Jitsu (Japanese for "Dragon Magic"), a spa treatment recently launched in Manhattan at NAO Salon and Spa, is a good example of what we'll be seeing more of in '07. The treatment begins with work on the Body Master machine, then progresses to sweating in a hot stone spa room, then to a combination of Shiatsu and Thai massage. Other popular "fusions" will include: facials with breathwork, jacuzzis with light therapy, massage with sound therapy, Neurobics (mind aerobics), and Kinesis, which is a new combination mind/body exercise experience.
"We believe that all of these trends demonstrate the diversity and creativity of both the spa industry and millions of consumers who turn to spas to find wellness and balance in their lives," added Ellis. "Spa Finder predicts that many of these spa trends, which seem so new and unfamiliar now, will soon be mainstream - helping many people live healthier, happier lives."
2007 Spa Buzz Words
Anti-aging, Ayurveda, Bespoke Spa Treatments, Body Facials, Body/Mind/SPIRIT, Caldarium, De-staffed Treatments, Energy Medicine, Express Services, Frigidarium, Holistic, HRT for Men, Hyperbaric Chamber, Infrared Sauna, Kids Spa, Kinesis, Laconium, LOHAS, Metrospiritual, Mineral Make up, Nanotechnology, Neurobics, Peptides, Self-Responsibility, Sleep Medicine, Social Hydrotherapy, Spa Butler, Spa Culture Tourism, Tepidarium, TCM, Unplugged, Vibration Therapy, Wellness
About Spa Finder, Inc.:
As the world's largest spa marketing and media company, Spa Finder reaches millions of health conscious consumers via its award-winning website, Spafinder.com. The company publishes Luxury SpaFinder Magazine, the trusted authority on luxury spas and associated lifestyles, as well as its annual Worldwide Guide to Spas, the ultimate spa-goers' resource. Spa Finder also operates the world's largest spa gift certificate and incentive programs as well as the Spa Distribution Network, the Internet's first online spa booking program.
Media Contact:
RBI Communications
Betsy Isroelit - (213) 300-0108, betsy@rbicom.com
New York, NY - November 1, 2006
The spa experts at Spa Finder, Inc., the global spa resource, have announced their fourth annual prediction of spa industry trends, providing an expert forecast of the innovations and ideas that will shape the world of spa in 2007.
As the point of connection between the thousands of spas and millions of spa consumers around the globe, Spa Finder offers a uniquely broad perspective of the spa industry. In recent years, the company has used this vantage point to provide industry watchers with a "sneak peek" at the big spa stories in the year ahead. Spa Finder has proven remarkably prescient with its annual predictions, which have included the popularization of spa residences and home spa design; the rapid growth of cosmetic med spas, medical wellness and mobile spas; the renewed interest in water experiences; and increased spa participation among men, pregnant women, teens, couples and groups.
"These trends will all continue to unfold and develop in 2007, and of course entirely new concepts will hit the scene," said Spa Finder, Inc. President Susie Ellis. "Evolution is the one constant in the vibrant world of spa, which is why we focus on predicting where the industry is going, rather than reporting where it's already been. For writers, spa enthusiasts and industry professionals who want to be on the cutting edge, this is what we see as the cutting edge - and where it will take us in the year ahead."
Following are Spa Finder's "10 Spa Trends to Watch for in 2007," based on widespread consumer input, extensive travel by the company's Luxury Spa Finder Magazine and Spafinder.com editorial staff, and its close working relationships with thousands of day and stay spas worldwide.
Sleep - A New Dawn in Spa Health
Exercise, good nutrition and stress management have long been the domain of spa programs. Now healthy sleep is being added to the curriculum, inspired by the emerging field of sleep medicine, which has revealed that sleep has a profound effect on appearance, weight, and well-being - and that we, as a nation, are dangerously sleep deprived.
Look for hotels and resorts to put even greater emphasis on creating ideal sleep environments through minimal light and sound, aromatherapy, ultra-relaxing spa treatments, etc. At destination spas (some of which already offer sleep programs) sleep specialists will help educate, diagnose and treat sleep apnea, insomnia and other disorders. More spas will focus on good sleep hygiene, offering sleep yoga programs and life coaches who address the underlying issues associated with poor sleep. Stay spas will also re-schedule their programs to start morning hikes and exercise programs a bit later (so people can sleep in) and allow for naps to help visitors catch up on their "sleep debt." Even day spas will get in on the sleep craze by offering relaxation lounges for a post treatment nap. (... Now if they would only let us snooze on the massage table after a massage instead of ushering us out.)
Detox
In the past "detox" denoted alcohol or drug rehabilitation, but today that definition has expanded to express any transition from unhealthful habits to healthful habits. As the culture continues to identify more "toxins" - such as dietary no-no's, stress, and environmental pollution - look for more people to turn to spas for a range of detox solutions, including relaxation, all-organic diets, sweating (exercise, steams and saunas), and the purging of emotional baggage through one-on-one or group therapy work.
Ironically, part of the momentum for this detox trend has been supplied by spas themselves, which over the past years have begun offering alcohol, caffeinated beverages, serve-yourself buffets, tempting desserts and fewer restrictions in general to attract a wider audience. The result? It's become harder and harder to end a spa vacation having lost weight or made significant changes in eating habits. Spa Finder is forecasting that core spa enthusiasts will begin to ask for more structure, less temptation, and more intensive programs - in short, more detox and less "tox."
Spa Retreats - On the March
For years destination spas have offered occasional "specialty weeks" where experts are brought in and like-minded people gather to focus on a specific area of interest, such as yoga, sexual health, or to address medical concerns such as arthritis or quitting smoking.
Now resorts and hotels are getting into the retreat business, adding specialty programs or special accommodations that appeal to their past guests - in effect becoming "destination spas" for a period of time. Look for offerings such as wellness workshops, spiritual retreats, boot camps, or "find your inner artist" getaways to energize resort and hotel spa programs, attracting solo travelers with group events, workshops and shared meals. On the horizon, we'll see day spas expand their group/community offerings with special workshops and even group outings to destination and resort spas for overnight stays.
Medical Tourism - In Search of Affordable Health
Medical wellness and cosmetic med spas are doing booming business by filling certain critical gaps in the traditional health care system. In 2007 more and more people will travel to another city, state or country for medical spa experiences, creating a new trend: medical tourism.
A range of new technologies will attract these medical tourists - DNA analysis, for example, and new generations of anti-aging medicines, injectables and lasers. But another big draw will be cost. Squeezed by domestic health care costs, many Americans are going online and discovering global destinations that offer cutting-edge medical procedures for a fraction of the cost ... often in beautiful, culturally rich locales like Bangkok, South Africa and India, to name a few.
Many hotel/resort spas will recognize the new opportunity that medical tourism presents and market themselves as ideal pre- and post-operation stays. Also look for some travel agents to act as lifestyle coaches, helping to plan vacations that include preventive medical procedures and aesthetic med spa treatments as part of the journey.
Move Into a Spa Lifestyle Community ... and Bring the Kids
Spa Finder initially identified the genesis of the spa real estate trend at the end of 2004, and already the company is tracking 200 such properties in various stages of development. This growth will continue in 2007 as spa residences move beyond being the retirement option of choice for aging baby boomers - the 21st century's answer to the golf community - to also attract younger families with children. Recognizing the growing priority among parents on raising their children in an active, healthful, communal environment (and avoiding the growing problems of childhood obesity and diabetes), more spa lifestyle communities will offer structured outdoor/exercise activities and healthy eating options just for children. This trend will also provide a great perk for older empty nesters, since the grandkids will have plenty to do when they visit.
The Bottom Line Becomes a Top-Line Consideration
More spa trends in the New Year will be driven by the bottom line, which will play an ever-larger role in shaping the competitive landscape and determining what the industry will offer. For example, the highest outlay for U.S. spa businesses is labor costs, which can consume over 50% of a spa's revenue. Domestically, this is one reason we'll be seeing an increase in "de-staffed" spa treatments, like heat and water experiences, which allow for a higher guest-to-therapist ratio. In general, as profits get tighter, revenue management models will become more sophisticated. Look for spa treatments to become more expensive on busy Saturdays and discounted on Monday and Tuesday mornings. Spa menu options, similarly, may change depending on seasons, time of day, and other factors affecting supply and demand.
On a positive note for consumers, more insurance companies will begin to cover complementary and alternative (CAM) (or integrative) health services, and more employers will subsidize spa-like services to promote a healthier, more productive work force.
Social Spa-ing
Community is the new privacy. For hundreds of years, "taking the waters" had been as much a social event as a personal therapy, but more recently hydrotherapy and heat/cold experiences have become solo undertakings as spa-goers have generally sought privacy and solitude in the spa setting. Spa Finder, however, is predicting that the search for solitude will be trumped by the natural desire for community and a growing awareness that social interaction is an important aspect of health. "Social spa-ing" will emerge as an exciting new term, describing the emphasis on opportunities to connect, converse, and play in the spa environment. (This social spa-ing trend also fits in nicely with the need to create more "de-staffed spa experiences" as discussed above.)
How Green Is My Spa?
The spa's mantra of body/mind/spirit is extending past the "self" to include others - and also the planet. Consumers are now factoring in a spa's green commitment when they choose a spa, and they're looking for a spa that does more than just recycle and offer organic food. And it's as much about respecting people as it is about respecting nature. Spa guests are rewarding a spa's efforts to incorporate authentic indigenous treatments, hire local staff, and contribute to the community. They're also welcoming education about local cultures and healing traditions and looking for holistic commitment on the part of spa personnel to contribute to sustainability and the health of guests, themselves and the planet at large. In short, spas and spa consumers are getting serious about terms like "natural," "organic," "holistic," "green," "eco-friendly," and "sustainable." And that's a good thing - naturally.
Beauty Inside-Out and Outside-In
Spa Finder forecasts that the spa industry will continue to lead innovation in skincare with new technologies and programs that recognize that beauty is much more than skin deep.
Inside Out
Spa visitors will continue to pursue maximum results by focusing on full-scale beauty regimens, from the inside out. Anti-aging foods rich in antioxidants such as berries, dark green leafy vegetables, salmon, and nuts are also part of the "inside-out" phenomenon as evidence mounts that what we eat has a major effect on how our skin ages. There is also a renewed interest in natural and organic products, spurred on by skin-care companies making purity a priority, not a false promise.
Outside In
"High spa IQ" consumers are curious about advances in beauty products, wanting to understand the science that makes skin-care products work so they can make intelligent choices. And there's plenty of science to learn about in the current beauty products market, including skin-care serums that penetrate the skin with peptides and nanotechnology, and basically work from the skin's deeper layers up. This new generation of products, exemplified by DDF's RMX Maximum, which uses growth factor hormones, and Remergent's DNA Repair, which fights sun damage, target the building blocks of our skin, fibroblasts and DNA, to improve our appearance, from the outside in.
Spa Finder asks: Will invasive face-lifts and cosmetic surgery soon be obsolete?
Spa Fusion
Thai massage (a fusion of yoga stretches and massage), Watsu (water and shiatsu), wellness (well-being and fitness) and yogalates (yoga and pilates) are just a few examples of spa fusion that we've seen in years past. In the year ahead, look for an acceleration of these sorts of combined modalities that produce even more powerful benefits than the sum of their parts.
Ryu-Jitsu (Japanese for "Dragon Magic"), a spa treatment recently launched in Manhattan at NAO Salon and Spa, is a good example of what we'll be seeing more of in '07. The treatment begins with work on the Body Master machine, then progresses to sweating in a hot stone spa room, then to a combination of Shiatsu and Thai massage. Other popular "fusions" will include: facials with breathwork, jacuzzis with light therapy, massage with sound therapy, Neurobics (mind aerobics), and Kinesis, which is a new combination mind/body exercise experience.
"We believe that all of these trends demonstrate the diversity and creativity of both the spa industry and millions of consumers who turn to spas to find wellness and balance in their lives," added Ellis. "Spa Finder predicts that many of these spa trends, which seem so new and unfamiliar now, will soon be mainstream - helping many people live healthier, happier lives."
2007 Spa Buzz Words
Anti-aging, Ayurveda, Bespoke Spa Treatments, Body Facials, Body/Mind/SPIRIT, Caldarium, De-staffed Treatments, Energy Medicine, Express Services, Frigidarium, Holistic, HRT for Men, Hyperbaric Chamber, Infrared Sauna, Kids Spa, Kinesis, Laconium, LOHAS, Metrospiritual, Mineral Make up, Nanotechnology, Neurobics, Peptides, Self-Responsibility, Sleep Medicine, Social Hydrotherapy, Spa Butler, Spa Culture Tourism, Tepidarium, TCM, Unplugged, Vibration Therapy, Wellness
Tuesday, November 07, 2006
Creating a Great First Impression by Phone
This article found at:http://www.htrends.com/researcharticle24981.html
By Denise Moretti
For clarification or discussion, feel free to contact us: news@hamistergroup.com
The Hamister Group, Inc. is a rapidly growing hotel management company. A leader in assisted living and health care management for over 25 years, the company now manages five hotels in Tennessee and Kentucky.
The Hamister Group, Inc. is actively seeking acquisitions and management contracts throughout the United States. For more details, please see our web sites: www.hamistergroup.com and www.hamisterhospitality.com.
Phone etiquette helps encourage clear lines of communication, build rapport, and avoid misunderstanding. It is an important part of customer service and influences the first impression that people form of your business. Here's how to let callers know that they are dealing with a great company:
Great customer service begins BEFORE the phone even rings. Make sure that you:
• Have an organized desk
• Pen and paper ready
• A list of phone extensions nearby
• Know the names, title, and responsibilities of everyone in your office
• Have an updated list as to who is in the office today, who is in a meeting, who is out to lunch, and when will they be back
• Have a list of who to refer calls to (general topic and person responsible)
• Know who has assistants and where calls should be directed if the assistant is out of the office
• If you are not comfortable greeting callers, practice in front of a mirror
• Learn the call transfer system thoroughly
• Familiarize yourself with the answers to general questions regarding your company
• Do not disclose confidential information
Some tips on answering the phone:
• The best time to answer the phone is just after the second ring. You don't want to catch the caller off-guard by answering too quickly, nor do you want them to wait too long.
• Greet the customer; thank the customer for calling your company; identify yourself; ask how you can assist. For example: 'Good morning/Good afternoon. Thank you for calling _____________. This is __________________. How many I direct your call?'
• Answer in a warm, enthusiastic, friendly, and positive tone of voice. This makes callers understand that you are happy to assist.
• Smile! Believe it or not, it shows through the phone!
• LISTEN carefully to what the caller is saying or requesting
• Be patient. Stay cool, calm and collected.
• Ask callers for their names, even if it is not necessary, and use their names during the remainder the call.
• Speak clearly, slowly and in a low tone of voice (you don't want to seem like you're screaming)
• Never talk with anything in your mouth.
Putting a Caller on Hold:
• When putting callers on hold, always ask permission.
• When taking callers off hold, always thank them for their patience.
Transferring a Caller:
• All co-workers should know how to use the call transfer system. Everyone should know how to transfer callers directly to other co-worker's extensions; in this way callers will not have to repeat requests a second time and the number of transfers will be reduced.
• When transferring callers, tell them the name of the person to whom you are transferring them; announce callers' names to your co-workers.
Taking Phone Messages: Be sure to record the following information...
• Caller's name and company (if applicable). Repeat this information out loud to ensure accuracy
• Time and date of the call
• Subject of the call
• Ask if callers want their calls returned. If the answer is yes, get their phone number and ask what time would be convenient for them
Creating a Great Last (until next time) Impression:
• Ask if you have answered all of the callers' questions
• Thank them for calling
• Always end with a pleasantry, such as: 'It was nice speaking with you!' 'Have a great day!'
• Let the caller hang up first; this shows you are not in a hurry to get off the phone.
DO:
• DO make the caller feel special.
• DO develop a consistent greeting (hotels be sure to meet any brand standards) that is to be used by all staff. DO use a Unique Selling Proposition in your greeting.
• DO put the phone down in a gentle manner if this is necessary during the call; it will be easier on the caller's ear.
• DO speak directly into the receiver, without burying it on your shoulder or neck.
• DO avoid background noise as much as possible.
• DO put a small mirror next to the phone. Smile. Research shows that smiling can be 'felt' over the phone.
• DO maintain a professional manner at all times!
DON'T:
• DON'T type or shuffle papers. It suggests that you're not listening to the caller.
• DON'T eat, chewing gum, or have anything in your mouth while talking on the phone.
• DON'T sound rushed, as if you have more important things to be doing.
• DON'T keep a caller on hold for more than 30 seconds. Speed sells!
By Denise Moretti
For clarification or discussion, feel free to contact us: news@hamistergroup.com
The Hamister Group, Inc. is a rapidly growing hotel management company. A leader in assisted living and health care management for over 25 years, the company now manages five hotels in Tennessee and Kentucky.
The Hamister Group, Inc. is actively seeking acquisitions and management contracts throughout the United States. For more details, please see our web sites: www.hamistergroup.com and www.hamisterhospitality.com.
Phone etiquette helps encourage clear lines of communication, build rapport, and avoid misunderstanding. It is an important part of customer service and influences the first impression that people form of your business. Here's how to let callers know that they are dealing with a great company:
Great customer service begins BEFORE the phone even rings. Make sure that you:
• Have an organized desk
• Pen and paper ready
• A list of phone extensions nearby
• Know the names, title, and responsibilities of everyone in your office
• Have an updated list as to who is in the office today, who is in a meeting, who is out to lunch, and when will they be back
• Have a list of who to refer calls to (general topic and person responsible)
• Know who has assistants and where calls should be directed if the assistant is out of the office
• If you are not comfortable greeting callers, practice in front of a mirror
• Learn the call transfer system thoroughly
• Familiarize yourself with the answers to general questions regarding your company
• Do not disclose confidential information
Some tips on answering the phone:
• The best time to answer the phone is just after the second ring. You don't want to catch the caller off-guard by answering too quickly, nor do you want them to wait too long.
• Greet the customer; thank the customer for calling your company; identify yourself; ask how you can assist. For example: 'Good morning/Good afternoon. Thank you for calling _____________. This is __________________. How many I direct your call?'
• Answer in a warm, enthusiastic, friendly, and positive tone of voice. This makes callers understand that you are happy to assist.
• Smile! Believe it or not, it shows through the phone!
• LISTEN carefully to what the caller is saying or requesting
• Be patient. Stay cool, calm and collected.
• Ask callers for their names, even if it is not necessary, and use their names during the remainder the call.
• Speak clearly, slowly and in a low tone of voice (you don't want to seem like you're screaming)
• Never talk with anything in your mouth.
Putting a Caller on Hold:
• When putting callers on hold, always ask permission.
• When taking callers off hold, always thank them for their patience.
Transferring a Caller:
• All co-workers should know how to use the call transfer system. Everyone should know how to transfer callers directly to other co-worker's extensions; in this way callers will not have to repeat requests a second time and the number of transfers will be reduced.
• When transferring callers, tell them the name of the person to whom you are transferring them; announce callers' names to your co-workers.
Taking Phone Messages: Be sure to record the following information...
• Caller's name and company (if applicable). Repeat this information out loud to ensure accuracy
• Time and date of the call
• Subject of the call
• Ask if callers want their calls returned. If the answer is yes, get their phone number and ask what time would be convenient for them
Creating a Great Last (until next time) Impression:
• Ask if you have answered all of the callers' questions
• Thank them for calling
• Always end with a pleasantry, such as: 'It was nice speaking with you!' 'Have a great day!'
• Let the caller hang up first; this shows you are not in a hurry to get off the phone.
DO:
• DO make the caller feel special.
• DO develop a consistent greeting (hotels be sure to meet any brand standards) that is to be used by all staff. DO use a Unique Selling Proposition in your greeting.
• DO put the phone down in a gentle manner if this is necessary during the call; it will be easier on the caller's ear.
• DO speak directly into the receiver, without burying it on your shoulder or neck.
• DO avoid background noise as much as possible.
• DO put a small mirror next to the phone. Smile. Research shows that smiling can be 'felt' over the phone.
• DO maintain a professional manner at all times!
DON'T:
• DON'T type or shuffle papers. It suggests that you're not listening to the caller.
• DON'T eat, chewing gum, or have anything in your mouth while talking on the phone.
• DON'T sound rushed, as if you have more important things to be doing.
• DON'T keep a caller on hold for more than 30 seconds. Speed sells!
Thursday, November 02, 2006
Zagat 2007 Restaurants Survey
This article was found at:
http://www.hotelnewsresource.com/article24933.html
Service is no. 1 complaint, but tips grow anyway; Asian cuisines, hotel dining and sustainably grown foods are on the march.
Zagat Survey today released the results of its new 2007 America's Top Restaurants Survey. The guide, covering 1,389 eateries in 42 major cities, is based on 21 million meals experienced by over 123,000 surveyors.
It reflects a banner year for restaurant goers nationwide: Not only are restaurant openings far outpacing closings, but the past year's +2.8% overall average increase in meal cost is below the +4% rise of the Consumer Price Index. There is good news for restaurants too in that people are going out and spending more than ever, especially at the high end of the market where inflation was +6.9%.
What's Inside: The 2007 Survey not only lists the Top Food and Most Popular eateries in each of the 42 markets covered, it also points to a variety of national dining trends including America's rising taste for Asian cuisines (especially Japanese), an increase in culinary diversity, dramatic improvements in hotel dining and growing support for sustainably raised food. In addition, the 2007 Survey offers a plethora of data about meal costs, tipping, favorite cuisines, dining frequency and much more.
"As part of an ongoing revolution in American dining, this marks yet another year where restaurant quality, diversity and value have improved across America," said Tim Zagat, CEO of Zagat Survey. "No matter how you slice it, it's a good time to go out to eat."
Eating Out -- A Lot: Nearly 83% of respondents say they are eating out as often or more often than they did two years ago. And 67% say they are spending more per meal while only 4% are spending less. When it comes to dining frequency, Texas' cities led the nation -- Houston (4.2 meals per week), Austin and Dallas/Ft. Worth (each at 4.0).
Running close behind in a three-way tie (at 3.8 times per week) are Las Vegas, Los Angeles, and Miami. Hot on their heels are Atlanta and San Antonio (each at 3.7). New York trails at 3.3 (perhaps due to the high cost of dining there), but New Yorkers need not get an inferiority complex, since Boston comes in last at 2.7 times per week.
Dollars and Cents: New York City leads the way as the most costly U.S. restaurant city with an average meal tab of $39.43. In second place is Palm Beach at $38.56. By comparison, the national average is 17% lower at $32.86, while the lower end of the spectrum is inhabited by cities such as Houston ($27.04) and Atlanta ($26.20). That said, the ultra high costs of dining in Tokyo ($73.69), London ($71.19) and Paris ($65.85), make U.S. prices seem like a steal.
Tipping: While some other nations' diners pay much more for their meals, they are not big tippers. Americans, on the other hand, are more generous -- especially in cities like Orlando and Philadelphia (both 19.4%) and St. Louis (19.3%) where tipping exceeds the national average (18.9%). Inexplicably, West Coast diners tip less than those on the East Coast, up to a full percentage point less in San Francisco and Los Angeles (18.4%)
Slighting Service: Sadly it's the same old story across the country when it comes to service. Fully 72% of diners say service is the greatest irritant when it comes to eating out, while only 28% cumulatively cite other frustrations such as noise, parking, prices, and food quality. In New York, issues like Noise/Crowds (38%) and Prices (10%) significantly exceed the national norms. In contrast, the most important dining component, food is cited as a problem by only 5% of Zagat's U.S. surveyors.
Favorite Cuisines: Nationwide, Italian cuisine remains the number one preference with 27% of surveyors calling it their favorite. American food comes in second at 16% and French in third with 12%. Although individual Asian flavors cuisines score below 10% each, when combined, Japanese, Chinese and Thai run a close second to Italian cuisine with 25% of the vote.
Sustainably Raised Food: Reflecting the increasing interest in sustainably raised foods, residents of the West Coast -- specifically Portland (80%), San Francisco (74%) and Seattle (72%) -- say they are willing to pay more for it. Their counterparts in the rest of the country are not quite so green, e.g., New York (58%) and St. Louis (55%).
Distances Don't Matter: Despite the high price of gas during the past year, that alone is not enough to stop hungry Americans from traveling for a fine meal. In fact, 63% of respondents nationwide say they'd be willing to travel 45 minutes or more each way for a good meal. And 40% say they'd travel an hour or longer.
Reservations Online: Reserving online is steadily becoming more popular. On average, 78% of Americans still call the restaurant, however 8% are now using the Internet. It should be no surprise that San Francisco ranks the highest (33%) among those who make reservations online. Miami (2%) and Phoenix (3%) residents are far less likely to net seats on the Web.
Anti-Smoking: Ninety-seven percent of respondents said they would dine out the same amount or more frequently if smoking were prohibited. Even with smokers in the mix, 32% say they would dine out more if smoking was banned and only 3% say less. In other words, clean air is good for business as well as for health.
Restaurants Become Multi-Taskers: A new 'invention' being led by some of the nation's top chefs is the dual-purpose dining hall under one roof, i.e., where one space is formal with high tabs, and another is casual with lower costs. Following the lead of NYC's Jean Georges are Coi in San Francisco, Primo in Tucson, The Modern and Aquavit in New York and Joel Robuchon with two restaurants in Las Vegas.
Hotels Are Hot: More than ever, hotel restaurants are bringing in top chefs. It's a win-win-win proposition: the hotels boost their brands; the chefs benefit from favorable leases; and diners reap the ultimate reward -- mouthwatering meals. This trend, which has revolutionized dining in Las Vegas in the past few years, is accelerating in New York with Gordon Ramsay soon-to-open at The London NYC, Joel Robuchon's L'Atelier at The Four Seasons Hotel, Alan Yau's Park Chinois at the restored Gramercy Park Hotel, Laurent Tourondel at the Ritz Carlton, Alain Ducasse moving to The St. Regis, Tony Chi taking over at The Essex House and Geoffrey Zakarian's Country and Cafe at Country at the Carlton Hotel. In Atlantic City, the Borgata Hotel Casino attracted San Francisco's Michael Mina, Philadelphia's Susanne Foo and TV star Bobby Flay; not to be outbid, Caesar's Atlantic City imported Georges Perrier of Philadelphia's Le Bec Fin. Four top chefs, Mark Milleto, Douglas Rodriguez, Nobu Matsuhisa and Emeril Lagasse have respectively been imported by the Hotel Nash, Savoy, Shore Club and The Loews. And the trend goes on and on in city after city.
The 2007 America's Top Restaurants guide ($15.95) was edited by Shelley Gallagher and Robert Seixas and is available at bookstores and other retail outlets, through www.Zagat.com or by calling 888/371-5440.
http://www.hotelnewsresource.com/article24933.html
Service is no. 1 complaint, but tips grow anyway; Asian cuisines, hotel dining and sustainably grown foods are on the march.
Zagat Survey today released the results of its new 2007 America's Top Restaurants Survey. The guide, covering 1,389 eateries in 42 major cities, is based on 21 million meals experienced by over 123,000 surveyors.
It reflects a banner year for restaurant goers nationwide: Not only are restaurant openings far outpacing closings, but the past year's +2.8% overall average increase in meal cost is below the +4% rise of the Consumer Price Index. There is good news for restaurants too in that people are going out and spending more than ever, especially at the high end of the market where inflation was +6.9%.
What's Inside: The 2007 Survey not only lists the Top Food and Most Popular eateries in each of the 42 markets covered, it also points to a variety of national dining trends including America's rising taste for Asian cuisines (especially Japanese), an increase in culinary diversity, dramatic improvements in hotel dining and growing support for sustainably raised food. In addition, the 2007 Survey offers a plethora of data about meal costs, tipping, favorite cuisines, dining frequency and much more.
"As part of an ongoing revolution in American dining, this marks yet another year where restaurant quality, diversity and value have improved across America," said Tim Zagat, CEO of Zagat Survey. "No matter how you slice it, it's a good time to go out to eat."
Eating Out -- A Lot: Nearly 83% of respondents say they are eating out as often or more often than they did two years ago. And 67% say they are spending more per meal while only 4% are spending less. When it comes to dining frequency, Texas' cities led the nation -- Houston (4.2 meals per week), Austin and Dallas/Ft. Worth (each at 4.0).
Running close behind in a three-way tie (at 3.8 times per week) are Las Vegas, Los Angeles, and Miami. Hot on their heels are Atlanta and San Antonio (each at 3.7). New York trails at 3.3 (perhaps due to the high cost of dining there), but New Yorkers need not get an inferiority complex, since Boston comes in last at 2.7 times per week.
Dollars and Cents: New York City leads the way as the most costly U.S. restaurant city with an average meal tab of $39.43. In second place is Palm Beach at $38.56. By comparison, the national average is 17% lower at $32.86, while the lower end of the spectrum is inhabited by cities such as Houston ($27.04) and Atlanta ($26.20). That said, the ultra high costs of dining in Tokyo ($73.69), London ($71.19) and Paris ($65.85), make U.S. prices seem like a steal.
Tipping: While some other nations' diners pay much more for their meals, they are not big tippers. Americans, on the other hand, are more generous -- especially in cities like Orlando and Philadelphia (both 19.4%) and St. Louis (19.3%) where tipping exceeds the national average (18.9%). Inexplicably, West Coast diners tip less than those on the East Coast, up to a full percentage point less in San Francisco and Los Angeles (18.4%)
Slighting Service: Sadly it's the same old story across the country when it comes to service. Fully 72% of diners say service is the greatest irritant when it comes to eating out, while only 28% cumulatively cite other frustrations such as noise, parking, prices, and food quality. In New York, issues like Noise/Crowds (38%) and Prices (10%) significantly exceed the national norms. In contrast, the most important dining component, food is cited as a problem by only 5% of Zagat's U.S. surveyors.
Favorite Cuisines: Nationwide, Italian cuisine remains the number one preference with 27% of surveyors calling it their favorite. American food comes in second at 16% and French in third with 12%. Although individual Asian flavors cuisines score below 10% each, when combined, Japanese, Chinese and Thai run a close second to Italian cuisine with 25% of the vote.
Sustainably Raised Food: Reflecting the increasing interest in sustainably raised foods, residents of the West Coast -- specifically Portland (80%), San Francisco (74%) and Seattle (72%) -- say they are willing to pay more for it. Their counterparts in the rest of the country are not quite so green, e.g., New York (58%) and St. Louis (55%).
Distances Don't Matter: Despite the high price of gas during the past year, that alone is not enough to stop hungry Americans from traveling for a fine meal. In fact, 63% of respondents nationwide say they'd be willing to travel 45 minutes or more each way for a good meal. And 40% say they'd travel an hour or longer.
Reservations Online: Reserving online is steadily becoming more popular. On average, 78% of Americans still call the restaurant, however 8% are now using the Internet. It should be no surprise that San Francisco ranks the highest (33%) among those who make reservations online. Miami (2%) and Phoenix (3%) residents are far less likely to net seats on the Web.
Anti-Smoking: Ninety-seven percent of respondents said they would dine out the same amount or more frequently if smoking were prohibited. Even with smokers in the mix, 32% say they would dine out more if smoking was banned and only 3% say less. In other words, clean air is good for business as well as for health.
Restaurants Become Multi-Taskers: A new 'invention' being led by some of the nation's top chefs is the dual-purpose dining hall under one roof, i.e., where one space is formal with high tabs, and another is casual with lower costs. Following the lead of NYC's Jean Georges are Coi in San Francisco, Primo in Tucson, The Modern and Aquavit in New York and Joel Robuchon with two restaurants in Las Vegas.
Hotels Are Hot: More than ever, hotel restaurants are bringing in top chefs. It's a win-win-win proposition: the hotels boost their brands; the chefs benefit from favorable leases; and diners reap the ultimate reward -- mouthwatering meals. This trend, which has revolutionized dining in Las Vegas in the past few years, is accelerating in New York with Gordon Ramsay soon-to-open at The London NYC, Joel Robuchon's L'Atelier at The Four Seasons Hotel, Alan Yau's Park Chinois at the restored Gramercy Park Hotel, Laurent Tourondel at the Ritz Carlton, Alain Ducasse moving to The St. Regis, Tony Chi taking over at The Essex House and Geoffrey Zakarian's Country and Cafe at Country at the Carlton Hotel. In Atlantic City, the Borgata Hotel Casino attracted San Francisco's Michael Mina, Philadelphia's Susanne Foo and TV star Bobby Flay; not to be outbid, Caesar's Atlantic City imported Georges Perrier of Philadelphia's Le Bec Fin. Four top chefs, Mark Milleto, Douglas Rodriguez, Nobu Matsuhisa and Emeril Lagasse have respectively been imported by the Hotel Nash, Savoy, Shore Club and The Loews. And the trend goes on and on in city after city.
The 2007 America's Top Restaurants guide ($15.95) was edited by Shelley Gallagher and Robert Seixas and is available at bookstores and other retail outlets, through www.Zagat.com or by calling 888/371-5440.
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