Speaker Presentations
To view a selection of the presentations that were given at the Tourism Directions and Distribution Conference click here.
Video Presentations
For a selection of Video Presentations from the Conference, please visit the Sustainable Tourism CRC Website.
2007 Conference Program Summary
The Consumer is King
Over two days in October, a number of leading tourism industry participants from Australia, the Asia-Pacific and the world came together to discuss the commercial and policy implications of rapid changes to the distribution/supply chains of travel product.
The event was a joint initiative of the Australian Tourism Export Council (ATEC), Tourism Australia, the Pacific-Asia Travel Association (PATA) and the Sydney Convention and Visitors Bureau (SCVB).
From the opening presentation of key-note speaker, Anna Pollock, from DestiCorp, it was clear that we were in for a special couple of days. What followed were equal doses of insight, soothsaying, inspiration, comedy and controversy.
The most telling out-take of the conference was the importance of the consumer. Armed now with the capability to tell the world of their experiences and, particularly in the case of "Generation Y", the willingness to do so, the implications for the distribution chain are profound.
Anna Pollock put it succinctly when she noted that after a long period when intermediaries drove the distribution chain, and after a short period when suppliers "held the conch", the new platforms of facebook, you-tube, trip advisor, blogs, etc meant that the consumer is now in the driver's seat. She noted that research has shown that people will tell 18 others of a poor experience and 4 of a good one. When they only had communication access to a circle of friends and family it was a concern - now that they have access to the world it is critical.
One participant dubbed this consumer-driven paradigm 'Wiki-Marketing' - where similar to Wikipedia, the end users are collectively engaged in the development of recorded knowledge, the customers of travel will increasingly determine the definition of values and the development of appeal and experiences.
As a result of the intense debate over the two days of the conference, the organizers believed that there were a number of recommendations for participants in the distribution chain:
Industry
1. The distribution system needs to develop beyond the 'industrial model', to become more engaging of the customer and more representative of the experience.
2. There are weaknesses in matching the experience delivery with the brand promise, which will have the increasing potential to erode brand, as customer advocacy/word of mouth (including chatrooms/blogs and trip advisor etc) significantly increases its role as the key market motivator.
3. Tourism industry organisations will have an increasing role in leading/facilitating networking, quality improvement/accreditation and community engagement.
Markerters and Industry
1. Marketers must recognise that we are in a dynamic and rapidly changing time where information and connectivity is critical.
2. While market forces will shape the development of distribution models, marketers must recognise the risk that the commoditisation of tourism can decouple the brand from the experience.
3. Marketers must be prepared to use the full suite of communications technology to reach consumers.
Regulators and Industry
1. Due to the shifting of the distribution paradigm to the consumer, Australia needs to overhaul its approach to quality tourism.
2. Where the old intermediary and supplier - driven models may have directed consumers to experiences backed by voluntary accreditation or business codes, the consumer-driven approach dilutes this discipline. The risk is that poor quality products will flood the market with negative consequences for brand Australia.
3. Regulators and industry need to re-explore Australia's regulatory regime, including a close look at mandatory licensing and stronger incentives for accreditation. A review of the regulatory regime in Australia should cover the following points:
- Industry considers that the current legislation governing the tourism sector is inconsistent, unwieldy and overlaps itself on a state and federal basis;
- Industry needs consistent, easily implemented regulation in an environment of flexibility;
- Much of the current legislation has been developed for industry generally and not specifically the tourism sector;
-
In regard to consumer protection, there is no adequate licensing scheme, nor any sufficient enforcement or right of redress by consumers or operators respectively;
- The tourism sector requires legislation to protect its online and web based trading processes;
- There is very little protection for industry participants engaged in international trade.
4. Australia urgently requires a national accreditation brand. The success of New Zealand's Qualmark model places them at a distinct advantage to cope with the new consumer-driven paradigm.
In conclusion, the organisers would like to thank our sponsors; Tourism Tasmania, Qantas, Visa and the Australian Tourism Data Warehouse.
