Tourism Business Frontiers: Looking into the Future of Tourism FINAL CONCLUSIONS

The Tourism Business Frontiers Forum which organized by the University of Surrey was held in World Travel Market in ExCel, London, where major trends in tourism demand and supply and exp l oration of the strategic changes that lead to the international tourism industry restructuring were discussed. The key issues of the Forum were:

1. Sustainability in tourism
2. Globalisation: Concentration through mergers and the development of partnerships
3. Developments in Technology
4. Consumer centric technologies and accessibility
5. Pressure on SMEs
6. Innovation and creativity towards competitive advantage
7. Constant crisis management

Chair :

Prof David Airey , University of Surrey

Speakers:	Dr Graham Miller, University of Surrey
	Dr Dimitrios Buhalis, University of Surrey
	Professor John Tribe, University of Surrey

Invited Contributors:	Paul Murphy, Cheshire County Council
	Florence MacKay, SABRE
	Graham Watson, All Being Well, Consultant
	Rok Klancnik, WTO
	Professor Hugh Somerville, University of Surrey
	Professor Victor Middleton, Consultant

Conference Organiser:

Dr Dimitrios Buhalis, University of Surrey

Rapporter:

Caroline Scarles, University of Surrey

Key Emerging Themes:

1) Sustainability in tourism

Firstly, concerns arose over sustainability in tourism. Particular concern arose with regard to climate change, air travel and the true cost of fuel. At present air travel is the greatest source of emissions and there is therefore a move to implement sustainability strategies including issues such as training, more advanced technology, etc. Indeed, key predictions involved changes in trading, the further development and implementation of carbon offsets and radical technological changes such as a move towards biomass fuels and aircrafts powered by hydrogen, although such changes were predicted to be some time in the future. This was further developed with realisation of the tourism industry being at the height of the budget airline peak and predicted a move away from such practice in the future. Nevertheless, with the emergence of key markets of China and India, there is a conflict in interests, particularly in the UK as attention moves away from encouraging shorter haul travel destinations, while remaining open to the inevitability of continued demand for longer haul destinations and the detrimental effects such travel inevitably creates. Indeed, referring to the recent white paper on sustainability, Rok Klancnik (WTO) realised that tourism cannot avoid the development of aviation and the need to create and maintain public/private partnerships to prevent and mitigate climate change. He also highlighted a shift in media attention towards the ethics of tourism and highlighted the WTO’s Global Code of Ethics that addresses issues from climate change through to sexual exploitation. The media therefore holds an ethical responsibility as they grab onto ‘hot stories’ that will sell. As ethics and sustainability is now an issue that can ‘sell’ and the majority of media support and give attention to ethical practices in tourism.

2) Globalisation: Concentration through mergers and the development of
partnerships

Secondly, while tourism was noted to account for approximately 10% of global GDP, through globalisation powers are moved out from Governments into the hands of the private sectors that have increased access to knowledge and innovations. While there are distinct benefits to such practice, discussion noted such shifts contribute detrimental effects and problems with the environment, etc. Governments were recognised to be in a weak position as they are unable to exercise levels of control and the travel and tourism industry remains reliant upon international agencies and the EU (Victor Middleton, Consultant). Consequently, greater partnerships between both public and private sectors were highlighted as vital to future developments in travel and tourism. Greater Government regulation and intervention is required and Governments need to begin to listen to the importance of travel and tourism within the economic, social and environmental issues.

3) Developments in Technology

Thirdly, attention turned to the importance of eTourism and the influences technological changes have on the structure of the tourism industry in bringing both opportunities and challenges. Dimitrios Buhalis explained that the Internet is changing industry structures, generating both opportunities and threats. Indeed, Florence MacKay (SABRE) noted the importance of the internet and dynamic packaging in tourism. Through the internet GDS’s have moved to diversify, becoming open systems such as UNIX that have enabled faster growth and introduction of new processes. Indeed, while in the past tourism has emerged through mass marketing, developments in technology have initiated a move away from a ‘one size fits all’ and while mass marketing still commands a place in tourism, the need for diversity has led to increased market segmentation as technology becomes individual to tour operators.

4) Consumer centric technologies and accessibility

Fourthly, such developments in technology have led to an increased consumer-centric approach to tourism. Tourism businesses are moving to see tourists in a different perspective as focus moves away from mass marketing to addressing that which the tourists really want and wish for. Destinations are no longer the sole product per se as attention moves to providing activities such as shopping, spas, cultural events, etc. Tourism is becoming about going that bit further to understand what consumers want. Consequently, technology is moving to become consumer-centric and new avenues of distribution are realised. Focus lies in maximising distribution and accessing the diversity of consumers through technological developments. Florence MacKay (SABRE) acknowledged the importance of such technological development, investment and change as GDS and non-GDS content merge through the internet to meet demands of tourists who increasingly book flights, accommodation, tickets and research holidays, etc online. Young tourists and travellers were recognised as the most sophisticated users of IT and are able to take advantage of changing technologies as they optimise the potential of the internet to book holidays and engage with local economies directly. However, while youth tourism is always at the forefront of technology, changes constantly occur through generations as new and different technologies emerge. Additionally, changing population demographics indicate a trend towards increasing numbers of older tourists and the various physical and environmental disabilities experienced by tourists. Concerns therefore arose over accessibility. While realising there are dangers in separating people into categories, Dr Graham Miller raised the issue that all tourists have accessibility issues at some point. Indeed, such is the increased concern over accessibility that the UK Government has highlighted this issue as key to the planning for the 2012 Olympics in London. Additionally, the School of Management at the University of Surrey is currently establishing a project called OSSATE: a ‘one-stop shop’ information source for accessibility requirements throughout Europe ( http://www.ossate.org ).

5) Pressure on SMEs

Fifthly, such concerns over sustainability and the development of partnerships were related directly to SMEs as they face pressures to not only diversify, but to exist in a market with competing interests. While the travel and tourism industry is highly dependent upon such enterprises, they currently have little or no voice. Nevertheless, with regard to the previous theme, it was realised SMEs could take advantage of the Internet and new technologies to compete with big brands. Indeed, many tourists, especially younger tourists, take advantage of such potentials as they access previously trapped SMEs.

6) Innovation and creativity towards competitive advantage

Sixthly, it was realised there is an ever-increasing demand for new products in tourism. Lower cost no longer means low service and low quality. Rather, attention has moved towards providing high quality products for tourists. Tourism is now a mature industry and focuses on innovative, creative opportunities for travel as attention moves from how to what tourists are demanding. Products now focus on creating new and memorable experiences ‘on the ground’, on selling stories, on touching. Pressures of diversity demand new opportunities for travel. Examples discussed include opportunities for tourism for ethnic minorities in Cheshire, England, gangland tourism in Amsterdam and dark tourism to name but a few. Nevertheless, some warned that there are no new products as such, but new forms of packaging. Such change in direction was also felt to greatly benefit SMEs as they can fill the narrative of memorable experiences, as they are part of them.

7) Constant crisis management

Finally, in addition to the concerns above, it was recognised that tourism is also facing constant crisis management. Terrorism is not a new concept and while September the 11 th is often acknowledged as the principle moment in such crisis, it was also recognised that prior events such as SARS and international terrorism and subsequent events such as the SE Asian Tsunami and the threat of avian flu continue to threaten tourism. There is a distinct unpredictability in everything and such events serve to reaffirm the importance of the worldwide tourism industry on both global and local economies. While some regarded youth travel as a source of dissipating concerns and creating opportunity to spread peace and understanding as there is a distinct lack of understanding why such crises are arising and therefore the industry should be seen as an opportunity to be together and understand each other. Nevertheless, such optimism was equalled with concern over the potential of such tourists to sow the seeds of negative impacts.

Final Food for Thought

In closing, Professor David Airey posed the questions that in 1973 there was no mention of sustainability or technology as it is understood today. Neither globalisation nor population change were high on the agenda. Therefore, the world has a great deal of continuity, but there are also big changes. Therefore in twenty years time, what new themes will be on the agenda?