Tourism Busines Portal. Tutorial ONLINEDISTRIBUTIONCHANNELS

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1 Tourism Busines Portal Tutorial ONLINEDISTRIBUTIONCHANNELS

2 INDEX INTRODUCTION What types of online distribution channels are there? What tools can be used for direct online distribution? How can you define our distribution channels? Your online marketing plan SUMMARY

3 INTRODUCTION Companies use online distributions channels to get their products or services to consumers via the Internet. In the tourism industry, online distribution has become one of the main purchasing channels for tourists and is, therefore, an essential sales channel for tourism businesses. ADVANTAGES AND DISADVANTAGES OF ONLINE DISTRIBUTION CHANNELS ADVANTAGES - It permits «one to one marketing» on a global scale. - Companies can customise travel products or services for each customer by better understanding their needs and market segmentation. - Companies, whose strategy is to sell highly customised services to special clients, can access the global market. - Development of new services. - Open «24 hours of the day / 7 days of the week / 365 days a year». - Improved corporate image above and beyond the size of the company. DISADVANTAGES - Cultural barriers: in terms of information, trust when making payments, etc. - The tourist could have the perception that their purchases are more complex. - Purchases cease to be a recreational or fun activity. - Customer Seller interactivity is not complete. - There is almost no advice given. 2

4 1. What types of online distribution channels are there? In e-commerce there are, in general, two types of online distribution channels: direct and indirect. Companies that do not sell their products directly to tourists use indirect channels. Instead, they sell their products through distributors that, in the case of the tourism industry, are called online tourism intermediaries. In the tutorial: "New intermediaries in the online tourism market" 1 you can find a detailed description of all indirect online distribution channels cited in this tutorial. Direct online distribution is characterised by the absence of intermediaries; whereby the company sells its products directly to the tourists. With this type of distribution, both the decision to purchase and the sale take place on the tour company s website. Therefore, the sales strategy for companies that are developing this type of distribution is oriented towards: - Increasing traffic on their website. - The user that is visiting the website, making the decision to buy and doing so at the same time. 1 Link to tutorial New intermediaries in the online tourism market 3

5 This type of sale is very similar to the concept of traditional sales. In the chart below you can see the similarities. Shop Web The web will be the online shop Pedestrians Clients Radio, newspapers catalogues Internet users Visits AdWords, Newsletters Pedestrians that walk around the shop/hotel/travel agency will now be the internet users Customers that come into the shop to get more information will now be website visitors Customers that come into the shop to get more information will now be website visitors 2. What tools can be used for direct online distribution? In direct distribution you can use a number of tools that are essential if you want to attract potential customers to your website. They are as follows: STRATEGY HOW? How can you attract tourists to your website? Tools for Direct Online Distribution: - Web positioning. - Search Engine Advertising. - Marketing. - Advertising using affiliates. - Viral Marketing. - Guerrilla Marketing: bulletins, news, blogs, etc. - Mobile marketing. - Social Media. 4

6 Below, each of these tools are explained: a. Web Positioning The technique for website positioning on a search engine is called SEO (Search Engine Optimisation). The most widely used Internet search engine is Google. Therefore, the information that Google provides is very useful when trying to achieve good positioning of your website on search engines. For this reason, it is recommended that you consult the document Search Engine Optimisation. Starter Guide 2 by Google. b. Search Engine Advertising The technique for advertising and marketing on search engines is called SEM (Search Engine Marketing). It consists of situating your website among the "sponsored results". These are the ones that are highlighted in the right hand margin of the page and sometimes at the top of the natural results, when the user performs a search that matches any of the terms from the list of keywords related to the business of the advertiser. Example of search engine advertising Source: Google sters/docs/search-engine-optimisation-starter-guide.pdf 3 5

7 For this type of advertisement, the advertiser pays when the user clicks on their link and is directed to their website. Search engine advertising is handled by each of the networks or search engines based on a bidding system. The most widely used is Google, and their bids are made through Google Adwords 4. If you do not have sufficient knowledge of SEM techniques, remember that there are professionals and companies that can help you with the process at an affordable price. c. marketing This is a simple tool through which information is sent out to a list of contacts. It is a technique that is widely used. As such, to get good results and generate business you will need to be creative and inventive. The first step is to create a database of addresses that you can direct marketing bulletins to. The ideal method is to gain voluntary subscribers. To do this, you can enter a free subscription option (a link or a form) on your website. You can motivate subscription by creating attractive offers or other publicity claims that grab the interest of the public. When planning an marketing campaign in your tourism company, you should take the following aspects into account: 1) Review the rules about applicable data protection in your country before you plan and develop your marketing campaign. 2) Clearly identify the person or company that is sending the marketing . 3) Make sure that the recipient can respond to your campaign. Do not use no reply addresses. 4) Let your recipients know if the contains advertising. If the is being used to sell a product or service, you should indicate this by using the word "Advertisement" somewhere in the

8 5) Give the recipient the option to unsubscribe from the campaign. This can be done using an automated unsubscribe system (that is integrated in your sending system) or by providing an alternative address to the recipient where they can request to be removed from the list. Once the database is created, prepare the content well and then send it. Make sure that you are always aware of any responses from the users and keep track of the sent messages. Look at the stages of the process in the following diagram: 1. PLANNING 5. FOLLOW UP AND TRACKING MARKETING 2. CREATION OF CONTACT DATABASE 4. SENDING THE 3. DESIGN AND CREATION OF THE It is important to note that you should NEVER mass mail advertising to users who have not given their consent to receive such information. The practice of mass mailing is frowned on and will be counterproductive to your brand. d. Advertising via affiliates Advertising via affiliates is an online marketing strategy where the advertiser distributes their online advertising through a network of partners, for example affiliate websites or blogs. 7

9 The elements involved in this type of advertising are: The advertiser: a company that wants to promote their products or services. Affiliates offer their website up for advertising and divert traffic from their page to that of their advertisers, for an agreed price. Platforms: can be any website, blog, user community, forum or e-commerce website. Commission agents act as intermediaries between the platforms and the advertisers. This network allows platforms to find advertising campaigns and advertisers to reach their target audience. Example Tourism Affiliate Network International The Affiliate network Affilired 5 is an exclusive network for the tourism sector. Through its affiliates, all kinds of tourism businesses, from hotels, airlines, as well as complementary offers are advertised. e. Viral marketing This is Word of mouth. Viral marketing refers to the use of certain techniques that cause an exponential increase in the brand image of the company. Example Viral Marketing in the Tourism Sector - Accommodation Netherlands The Amsterdam Hotel: Hans Brinker Budget made the most of their bad reputation 6 on travel opinion websites by creating a YouTube 7 channel where travellers could upload their videos of the hotel Brinker-Amsterdam-boasts-filthy-rooms.html 7 8

10 f. Guerrilla marketing Guerrilla marketing is an advertising strategy that uses unconventional techniques, such as graffiti or stickers to promote a product or a service. This type of marketing is very useful for companies with relatively low income. The actions are usually directed at specific market niches This type of marketing is a set of strategies and techniques, which are executed by non-conventional means. They rely on the resourcefulness and creativity of company members to achieve the goal, so it is not necessary to invest large amounts in advertising. As it is not conventional advertising, guerrilla marketing reaches the target group in a different way. Here are some of the most usual techniques: Publishing of expert content: writing articles on a topic that you are a specialist in and, as well as publishing them on your website, distributing them to other specialised networks. This will help generate traffic to your website from people with interest in the content. Be sure to include your contact details and your website address in the article. Imagine that you have a rural hotel and offer mycological routes because you are an expert on the subject. A good way of getting tourists interested is by writing articles on mushrooms and fungi. Sending newsletters: producing digital content that you can send to your subscribers. You can include news about your company and the sector and new initiatives and offers. You can also communicate your projects, using an attractive and dynamic image. Example Accommodation and Hospitality Germany The Mandala Hotel 8, located in Berlin, informs people about their various offers by using newsletters 9. To receive them, the website user has to subscribe by filling in an 8 9

11 online form where they can also specify which services / offers they are interested in. The options available are: spa, restaurant, lounge, hotel and suites Creating a blog: A blog is a convenient way to create content and communicate with customers and subscribers, as it is technologically simple to do, and users can provide feedback Example Travel Agency United Kingdom The British travel agency G Adventures 10 has a Travel Blog 11 through which they offer up to date information about destinations, trends and activities. They allow the other users to comment on each post that they publish. To create a blog, it is not necessary to have previous knowledge of programming. You can even take advantage of design templates. You can create a free and simple blog through websites such as Blogger 12. Blue jacking: involves sending promotional messages via Bluetooth to PCs and mobile devices that are located in the near vicinity. Sometimes, this technique may be considered intrusive. Active participation in forums: participation in tourism forums, either as a forum member or as an expert, can result in attracting interested parties to your website

12 g. Mobile marketing This type of marketing is done through portable devices such as mobile phones, PDAs, tablets, etc. The following methods can be used: - Sending SMS or MMS messages to mobile devices for specific promotional campaigns. - Advertising on mobile Apps. If you want more information, consult the tutorial: What tourism applications for mobile devices could interest my clients? 13 h. Social Media This tool involves the use of social media as a channel to promote tourism. These networks are online communication platforms, where the users create the content. In the tutorial "How are the communication channels with the clients changing?" 14 you can find information about the importance of social networks in tourism advertising and trade. You can also find advice about using these networks to help improve your company s advertising. 3. How can you define your distribution channels? Your online marketing plan Before defining and choosing online distribution channels for your company, you must design a strategy that will integrate into the online marketing plan. But what is an online marketing plan? It is the document that sets out the goals and strategies of your company in the digital environment. It is essential that you identify the audience that you are directing your tourism product or service at (target) and specify the platforms or means you will use to reach this audience. 13 Tutorial Link What tourism applications for mobile devices could interest my clients? 14 Link to the tutorial "How are the communication channels with the clients changing?" 11

13 To make your plan, you can use the 4S methodology, based on the analysis of the following concepts: SCOPE This concept refers to the main strategic variables that will determine the presence of your company on the web. Include the following things: - Analysis of your current situation: o Geographical Scope o Business Model - Analysis of the competitors / clients. - Identification of the objectives and strategies set out for your web presence. SITE Your company must have a fully customer-oriented website, which not only attracts the clients, but keeps them on your site. To do this, you must analyse the following aspects: SITE STRATEGY Attract the clients Marketing Mix (4 Ps) Retain users on the website ASPECTS TO BE ANALYSED Domain Design Positioning Product. Product Strategy. Price. Price Strategy. Promotion. Communication Strategy. Place. Distribution Strategy. Structure Velocity Navigability Interactivity SYSTEM This involves defining the technical aspects of the website. Remember that you have to take into account parameters that ensure security, integrity and operation of the site. 12

14 The technical aspects are the following: - Software. - Hardware. - Communication Protocols. - Content Management. - System Maintenance. - Web Administration. - Payment Systems. SYNERGY At this stage you should try to integrate your company s offline and online strategies, and make sure the latter is integrated into the company's internal processes. For example, if you include search engine rankings in your online strategy, you have to have a SEO specialist on your team. You also need to define the pricing strategy that you will apply to each of the chosen distribution channels, both online and off line. This way you will avoid possible conflicts between tourism intermediaries, website sales, and direct onsite sales. To build the marketing plan for your online tourism business, you can view the following video

15 SUMMARY Below is a brief summary of what has been explained in the tutorial. Types of online distribution channels Indirect Channels: tourism intermediaries. Direct Channels: Promotion and / or sales are made directly to tourists excluding the middlemen. Tools for direct online distribution Tools for Direct Online Distribution: - Web positioning. - Search Engine Advertising. - Marketing. - Advertising using affiliates. - Viral Marketing. - Guerrilla Marketing: bulletins, news, blogs, etc. - Mobile marketing. - Social Media. Aspects that define your distribution strategy You must identify the audience that you are directing your tourism product or service at (target) and specify the platforms or means you will use to reach this audience. Method for drawing up your online marketing plan The 4S methodology, based on the analysis of the following concepts: - SCOPE. - SITE. - SYSTEM. - SYNERGY. 14

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