Benchmarking destinations value for money competitiveness A case study: Nord-Pas de Calais
Content 1. Preliminary works Defining the quality / price referential 2. Scenario based price collection 3. Value for money benchmarking (TRAVELSAT) 4. Conclusions
1. Defining the Quality / Price Referential
3 interlinked components of a destination competitiveness Accommodation Cultural activities Transportation Local food Leisure activities Higher value for things you need to pay for Higher perception on things you do not need to pay for Cheaper Landscape beauty Safety feeling Cleanliness, environment Local people hospitality Orientation, TICs Hotel rates Cost to reach destination Museums entry tickets Cost of living... Overall stay value for money
Two main methodologies used Accommodation Cultural activities Transportation Local food Leisure activities Scenario based price collection Hotel rates Cost to reach destination Museums entry tickets Cost of living... Landscape beauty Safety feeling Cleanliness, environment Local people hospitality Orientation, TICs Overall stay value for money
Preliminary works Defining the scope Local stakehoders viewpoint 6 individual interviews + online «mirror» survey (100+ stakeholders taking part) Price e-reputation of NPDC Targeted audit of web social conversations in the main French and EU outbound markets Final selection of indicators, benchmarks and segments tba Definition of typical trip scenario in NPDC internal workshops Use of the TRAVELSAT standard referential
2. Segment based price collection
Forewords Price collection is a complex issue in essence given the fragmentation of purchasing behaviors, selling channels and volatility of tariffs. Therefore a price collection benchmarking exercise does not aim at reaching exhaustiveness or reporting an exact level of actual prices of the destinations, but tends to capture an instant picture of budgets that potential travelers are exposed to when planning and preparing their trip. This desk research based price collection used multiple channels of information available (web aggregators, destination websites, guides, operators websites ) including direct appropriate search including web, phone and email contacts whenever necessary. Prices observed have been collected using the same scenario and reference periods so to ensure a comparability.
Scope of search Competition scope usually exceeds bordering regions and includes destinations relevant in terms of Price / Distance / Trip purposes A scope of de 13 benchmark destinations was defined: FRANCE Picardie Normandie Ile de France PACA Rhône-Alpes Bretagne Champagne - Ardenne Pays-Bas ABROAD England Belgium Netherlands Turkey Spain Morocco
Selection of scenario 55 scenarios defined including the number of people, adult /children / transport modes to reach the destination and at destination, accommodation and trip lenght, food,activities etc Scenario reflect typical situations around 9 broad categories : - Clientèle Cultur heureux = Court Séjour Urbain (6 scénarios) - Clientèle passionnés = Se déplacent pour leur passion (8 scénarios) - Clientèle Explorateurs = Découvrent à partir du lieu de séjour (8 scénarios) - Clientèle Amoureux = Tombés un jour amoureux d un lieu, y reviennent (7 scénarios) - Clientèle Festifs Collectifs = Se déplacent pour un événement, une manifestation (7 scénarios) - Clientèle Voyageurs (6 scénarios) - Clientèle Récréatifs familiaux = L enfant / la famille est au centre du séjour (7 scénarios) - Clientèle Grands espaces (4 scénarios) - Clientèle Ecotouristes ( 2 scénarios) EXEMPLE : «Couple (25-35 ans) et 3 enfants (3, 5 et 7 ans), venant de Paris en voiture, une semaine, CSP +, gite 3 épis, 1 repas «estaminet», 1 repas «rapide», 1 repas «pique nique», autres repas «autonome», shopping gastronomique, marché, 1h équitation, péage 55 scénarios
Price collection method used 1 Scenario split Grouping by topics (ex.: accommodation), sub-group (ex.: B&B) and range (stars) 2 Master Grid Definition Exhaustive list of criteria, crossed by 14 regions 2 500+ prices reviewed 3 Price Collection 4 Re-build of total budget for each scenario Selection and of raw prices for each scenario taking account of numbers of people, trip duration activities etc
Results provided (1/2) An Excel master grid gathering individual average prices collected for all categories and modalities required for budgeting the scenarios. One calculation sheet per scenario with details per category of costs
Results provided (2/2) Benchmarking of scenario: budget for all 55 scenarios A grid highlighting 3 most competitive 3 least competitive In Bold MAX / MIN budget Scenario description A transverse analysis by cost category and main conclusions related to the NPDC price competitiveness.
3. Quality / Price perceived by visitors Using a Standard benchmarking measure TRAVELSAT Competitive Index
A standard international measure of quality and price Competitiveness : TRAVELSAT Global survey benchmarking destinations quality and price competitiveness Endorsed by UNWTO (2011 Ulysses Award for Innovation) ~ 70 Standard Competitive Indexes + 4 specific ad hoc Indexes added 300+ destinations, markets and travel segments monitored A normative structured survey enriched with targeted e-rep audit ~ 1000 interviews of French and international visitors in Nord-Pas de Calais 25 000+ int. from the TRAVELSAT Global benchmarking database
Data collection Maximizing sampling diversity, cooperation rates and data comparability Multiple channels of recruitment Generating various tourists profiles in markets, trip purposes, internet usage, demographics... 930 standard questionnaires completed shortly after the full trip experience (approx. 10 ) Face to face intercepts (~70%) In 15+ various locations spread over the region: transportation hubs, natural and cultural mustsee attractions, beaches, leisure parks etc Screening / recruitment in markets (~30%) Screening and selection of past 3 month tourists in NPDC from national representative panels in 30 markets
Recruitment modes Random face to face intercepts in various location: Nausicaa Boulogne : vieille ville Montreuil sur Mer Le Touquet : digue, rue St Jean Wimereux : digue Dunkerque : Kursaal + digue de Malo les bains Val Joly Lille : Grand place + Office du Tourisme + proximité Gare Calais : Cité Europe Cassel : musée et place Arras : grands places A16 : aire d autoroute Valenciennes : musée des Beaux Arts et centre ville la Coupole (Musée de la 2nd guerre mondiale) Parc de Bagatelle Site des Caps Musée de Lewarde Ecomusée de Fourmies Zoo de Maubeuge + Recruitment of «past 3 month» visitors via screening in 30 sourcing markets in Europe, Americas, Asia and LATAM from national representative mother samples.
Competitive Benchmarking Destinations Two groups of benchmarking for evaluating the competitive positioning of the NPDC region: «Geographical» Benchmarks Euromed Bordering / close destinations Remote / sun destinations Average France All regions Average France Grand South (PACA, Languedoc-Roussillon, Aquitaine) Average France Grand East (Alsace, Lorraine, Franche-Comté, Champagne, Bourgogne, Rhône-Alpes) Average France North-West (Picardie, Normandie, Bretagne, Pays de Loire) Market/Motivational Benchmarks Cultural city break Nature/Active trips (exc. Beach) Beach trips Business / MICE First time visit French English Belgians Dutch Germans Other markets Budget hotels Mid class hotels Luxury hotels B&B Campsites
The standard TRAVELSAT criteria A diagnosis covering the whole visit experience OVERALL INDEX Overall Satisfaction Intention to repeat visit Recommendation Overall Value for money COMPLAINT LEVELS Visa formalities Accommodation Transportation Safety Cultural/leisure activities Food quality/service Health Other DETAILED SATISFACTION INDEX Accommodation: range-quality-value for money-hospitality Food: range-quality-value for money-hospitality Transport: quality-value for money-hospitality Cost to reach the destination Taxi service Parking convenience Access from/to the airport Historical Heritage: range ticket price - hospitality Cultural activities: range-quality-value for money Guided tours / Excursions TICs: accessibility, hospitality, opening hours Mobile apps quality Leisure activities: range price - Nightlife Shopping: range-value for money-hospitality-hours Hospitality of local people / ease of communication Safety feeling Landscape beauty Cleanliness inside/outside cities Urbanization development Air quality Signposting / orientation Crowd/busy places perception Road infrastructure Beach: range-quality-cleanliness - safety Business/MICE related criteria SEGMENTS Market Trip purposes First stay / Repeat Stay length Accommodation used Transports used Regions/Cities visited 30 Activities High spenders Demographics Web influencers Tourists with special needs Trip booking modes CUSTOM QUESTIONS
A comprehensive competitive analysis Competition Mapping Which destinations compete with NPDC in travelers' mind and for which travelers? Competitive Prompters: What mostly prompt visitors to choose NPDC vs competition for the first visit? Competitive Index: What competitive strenghts and weaknesses of NPDC related to price and quality perceived? Competitive Roadmap: Which priority actions for gaining competitiveness for each market and segment?
Competitive Mapping All visitors Alternative destinations considered before choosing NPDC Belgique France Espagne Italie Turquie Pays-Bas Angleterre Allemagne Czech Republic Ecosse Irlande Suisse Portugal Autriche Grèce Luxembourg Hongrie Malte
TRAVELSAT Index Definition Note: the interpretation grid does not apply to price and value for money related Indexes Exceptional High Experience exceeds expectations Acceptable However, experience doesn t exceed expectations Low Problems of consistency in the quality provided and / or non fulfillment of expectations Very low Significant quality problems, highly detrimental to the reputation of the destination
Example of competitive benchmarking ACCOMMODATION 200 COMPETITOR X 172 150 COMPETITOR Y 146 COMPETITOR W 122 123 100 50 FRANCE Overall quality Staff hospitality Value for money Accommodation types Region A 151 161 106 above competitive norm Accommodation types in line Region B 154 180 143 with competitive norm Accommodation types Region C 155 174 135 below competitive norm NPDC Overall quality Staff hospitality Value for money 106 81 INTERNATIONAL COMPETITIVE NORM
Example of transverse benchmarking Price perceived by visitors 150 AVER. = 68 AVER. = 73 114 100 102 106 93 94 103 96 82 87 57 50 45 44 44 30 25 0 NPDC COMPETITION Accommodation Local food Public transportation Museums, historic sites Leisure activities Shopping 6 Cost to reach destination Overall stay
A detailed competitive analysis on 1. Key Performance Index Globale satisfaction, Intention to recommend, to repeat visit, Complaint levels 2. Competitive analysis by branch / chapter Accommodation, food, transportation, activities, environment, hospitality 3. Competitive Gaps per market and segment Ambassadors and At risk vs competitive destinations Drivers for gaining competitiveness on each 4. Roadmap Local partners and stakeholders presentation (2013) Specific Focus Summary Reports per branch (under evaluation)
4. Conclusions
A complete diagnosis of the region price and quality competitiveness Objective scenario-based prices Perceived prices and value for money performances Mirror viewpoints from local stakeholders Benchmarking with a relevant competitive scope An efficient tool for engaging and managing local stakeholders and destination marketing