97 Contemporary Tourism Marketing 3 Connection - Connectors intentionally connect others with information about organizations and brands. Non-connectors do not do this. The imperative of understanding the new consumers, and of working with them in the co-creation of products is clearly illustrated in the following case study on the 'millenials'. Case study 4.1: Consumer behaviour and the millennials 4 Much is written about the millennials'and the fact that their attitudes, values and behav- iour in the marketplace are different from preceding generations. This is a significant generation, the largest since the baby boomers, and they represent the future of tourism consumption (Solnet & Hood 2011). As a result the realities of their behaviour must be taken into account and researched. Yet there is little in-depth research on the tourism behaviour of generation Y - what, for example, will be the tourism behaviour of China's generation Y as they begin to travel the world? This case study outlines the consumer behaviour characteristics of generation Y and poses questions as to how this will impact on tourism marketing. Generational marketing? A generation can be defined as an identifiable group that shares birth years, age, and significant life events at critical developmental stages (Kupperschmidt 2000). In terms of consumption we can think of three significant generations: 1 The baby boomers, born between 1945 and 1964. 2 Generation X, born between 1965 and 1978. 3 The millennials are the generation following generation X (and sometimes known as generation Y), born between the late 1970s and the early 2000s. 4 Generation Z are following the Millennials, born early 2000s onwards. We outlined the life course approach in Chapter 3 and a continuation of this theme is the robust debate over the usefulness of using generations as market segments: Supporters of generational marketing' recognise that each generation has distinctive characteristics, values and beliefs and these influence tourism demand. Generations also experience common environmental variables such as culture, politics, media and world events, which in a sense describe a generation socially rather than biologically. As a result each generation has specific consumer behaviours which allow targeting in terms of products, promotion and services. The millennials for example value networking with friends over belonging to institutions. On the other hand, Kotler et al. (2010) raise the question as to whether specific marketing approaches and campaigns need to be devised for different generations. They suggest that those generations themselves represent large 1 98 Mike ther such pron of the ticul dest Fort with ucts is pc mus mar Contemporary Tourism: The Contemporary Tourist groups in the population, and that it is perhaps difficult to devise marketing specifically for such a large group. This is supported when we consider the definition of a generation as the years between the birth of parents and the birth of their children, tending to average around 20 years. Add to this the fact that the pace of change in technology and society will change social values immensely in 20 years, and a single marketing approach may be seen as inadequate. Adding to this complexity of changing social trends, couples are having children later and the generational span in some countries is approaching 30 years. Despite the argument against generational marketing, we believe that it has an impor. tant role to play in tourism marketing. Indeed, companies that have used the same marketing messages to different generations soon found that their approach was not working. Examples here include using the same marketing messages to generation Y that was used for their parents, or simply approaching generation Y as a linear extension of generation X The millennials There is a range of definitions and terms for the millennials. Most definitions state that the millennials are those born from the late 1970s to the early 2000s. They have been variously labelled as generation we the 'connexivity kids, the boomerang generation or the dot-com generation but the millennials has become the accepted label for this demographic cohort. The consumer behaviour of the millennials The millennials have been born into a period dominated by technology and thus demand almost instant connection to friends and peers through mobile devices, tablets and the Internet; indeed it is a generation that is defined by technology. The media, par ticularly mobile Internet and television, are important to this group in terms of reality TV and the spontaneous availability of programming. Digital convergence will heighten the millennials' abilities to treat new technologies as their own. This allows them to be consistently in touch, communicate and to join global networks - whether with friends on social media, or on community web sites such as Facebook. They are also the most formally educated generation in history, aware of opportunities, world geography and tourism destinations. In other words they are confident, smart and technologically savvy. Finally, they have grown up in an affluent world where economic prosperity has grown and unemployment has been low; but equally with terrorism and changing economic fortunes they have experienced an uncertain world. There are two conflicting views here - one is that with the economic recession which began in 2008, we have a 'lost generation' who will struggle to recover financially in later life. On the other hand, studies show that millennials, despite growing up in the midst of economic downturn, are relentlessly optimistic and do not share the financial concerns and priorities of their parents as personal milestones are reached later in life. As tarc dor agg MO cha ing fo 97 Contemporary Tourism Marketing 3 Connection - Connectors intentionally connect others with information about organizations and brands. Non-connectors do not do this. The imperative of understanding the new consumers, and of working with them in the co-creation of products is clearly illustrated in the following case study on the 'millenials'. Case study 4.1: Consumer behaviour and the millennials 4 Much is written about the millennials'and the fact that their attitudes, values and behav- iour in the marketplace are different from preceding generations. This is a significant generation, the largest since the baby boomers, and they represent the future of tourism consumption (Solnet & Hood 2011). As a result the realities of their behaviour must be taken into account and researched. Yet there is little in-depth research on the tourism behaviour of generation Y - what, for example, will be the tourism behaviour of China's generation Y as they begin to travel the world? This case study outlines the consumer behaviour characteristics of generation Y and poses questions as to how this will impact on tourism marketing. Generational marketing? A generation can be defined as an identifiable group that shares birth years, age, and significant life events at critical developmental stages (Kupperschmidt 2000). In terms of consumption we can think of three significant generations: 1 The baby boomers, born between 1945 and 1964. 2 Generation X, born between 1965 and 1978. 3 The millennials are the generation following generation X (and sometimes known as generation Y), born between the late 1970s and the early 2000s. 4 Generation Z are following the Millennials, born early 2000s onwards. We outlined the life course approach in Chapter 3 and a continuation of this theme is the robust debate over the usefulness of using generations as market segments: Supporters of generational marketing' recognise that each generation has distinctive characteristics, values and beliefs and these influence tourism demand. Generations also experience common environmental variables such as culture, politics, media and world events, which in a sense describe a generation socially rather than biologically. As a result each generation has specific consumer behaviours which allow targeting in terms of products, promotion and services. The millennials for example value networking with friends over belonging to institutions. On the other hand, Kotler et al. (2010) raise the question as to whether specific marketing approaches and campaigns need to be devised for different generations. They suggest that those generations themselves represent large 1 97 Contemporary Tourism Marketing 3 Connection - Connectors intentionally connect others with information about organizations and brands. Non-connectors do not do this. The imperative of understanding the new consumers, and of working with them in the co-creation of products is clearly illustrated in the following case study on the 'millenials'. Case study 4.1: Consumer behaviour and the millennials 4 Much is written about the millennials'and the fact that their attitudes, values and behav- iour in the marketplace are different from preceding generations. This is a significant generation, the largest since the baby boomers, and they represent the future of tourism consumption (Solnet & Hood 2011). As a result the realities of their behaviour must be taken into account and researched. Yet there is little in-depth research on the tourism behaviour of generation Y - what, for example, will be the tourism behaviour of China's generation Y as they begin to travel the world? This case study outlines the consumer behaviour characteristics of generation Y and poses questions as to how this will impact on tourism marketing. Generational marketing? A generation can be defined as an identifiable group that shares birth years, age, and significant life events at critical developmental stages (Kupperschmidt 2000). In terms of consumption we can think of three significant generations: 1 The baby boomers, born between 1945 and 1964. 2 Generation X, born between 1965 and 1978. 3 The millennials are the generation following generation X (and sometimes known as generation Y), born between the late 1970s and the early 2000s. 4 Generation Z are following the Millennials, born early 2000s onwards. We outlined the life course approach in Chapter 3 and a continuation of this theme is the robust debate over the usefulness of using generations as market segments: Supporters of generational marketing' recognise that each generation has distinctive characteristics, values and beliefs and these influence tourism demand. Generations also experience common environmental variables such as culture, politics, media and world events, which in a sense describe a generation socially rather than biologically. As a result each generation has specific consumer behaviours which allow targeting in terms of products, promotion and services. The millennials for example value networking with friends over belonging to institutions. On the other hand, Kotler et al. (2010) raise the question as to whether specific marketing approaches and campaigns need to be devised for different generations. They suggest that those generations themselves represent large 1 98 Mike ther such pron of the ticul dest Fort with ucts is pc mus mar Contemporary Tourism: The Contemporary Tourist groups in the population, and that it is perhaps difficult to devise marketing specifically for such a large group. This is supported when we consider the definition of a generation as the years between the birth of parents and the birth of their children, tending to average around 20 years. Add to this the fact that the pace of change in technology and society will change social values immensely in 20 years, and a single marketing approach may be seen as inadequate. Adding to this complexity of changing social trends, couples are having children later and the generational span in some countries is approaching 30 years. Despite the argument against generational marketing, we believe that it has an impor. tant role to play in tourism marketing. Indeed, companies that have used the same marketing messages to different generations soon found that their approach was not working. Examples here include using the same marketing messages to generation Y that was used for their parents, or simply approaching generation Y as a linear extension of generation X The millennials There is a range of definitions and terms for the millennials. Most definitions state that the millennials are those born from the late 1970s to the early 2000s. They have been variously labelled as generation we the 'connexivity kids, the boomerang generation or the dot-com generation but the millennials has become the accepted label for this demographic cohort. The consumer behaviour of the millennials The millennials have been born into a period dominated by technology and thus demand almost instant connection to friends and peers through mobile devices, tablets and the Internet; indeed it is a generation that is defined by technology. The media, par ticularly mobile Internet and television, are important to this group in terms of reality TV and the spontaneous availability of programming. Digital convergence will heighten the millennials' abilities to treat new technologies as their own. This allows them to be consistently in touch, communicate and to join global networks - whether with friends on social media, or on community web sites such as Facebook. They are also the most formally educated generation in history, aware of opportunities, world geography and tourism destinations. In other words they are confident, smart and technologically savvy. Finally, they have grown up in an affluent world where economic prosperity has grown and unemployment has been low; but equally with terrorism and changing economic fortunes they have experienced an uncertain world. There are two conflicting views here - one is that with the economic recession which began in 2008, we have a 'lost generation' who will struggle to recover financially in later life. On the other hand, studies show that millennials, despite growing up in the midst of economic downturn, are relentlessly optimistic and do not share the financial concerns and priorities of their parents as personal milestones are reached later in life. As tarc dor agg MO cha ing fo 99 4 1 Contemporary Tourism Marketing Millennials intuitively understand the importance of networks and how to leverage from them. They tire of well-known brands quickly and respond equally to adverts in media such as the Internet rather than in the usual press and television placement. In terms of promotion, they respond more to humour, irony and honesty rather than the messages of their parents' generation where tourism brands pushed lifestyle and image. In par- ticular they are the vanguard of the ethical consumer, favouring tourism products and destinations with strong social or environmental values. For tourism, this means that successful tourism products and destinations must 'connect with these consumers. It is less important to build products for them, but to build prod- ucts with them in the classic model of co-creation. Millennials recognise that knowledge is power and have a new language rooted in the digital age. This implies that marketing must use this language and provide truthful and comprehensive information. To sum- marise, millennials are: Interested in experiences; Civic and community minded; Opportunity focussed and ambitious; Strongly influenced by their friends and peers; Influenced by viral marketing and word of mouth; Technologically literate favouring interactivity and selective on how they receive and seek out information: Short term-focussed; Not brand loyal, but respond to campaigns focussed on local values; Tolerant and liberal, supportive of consensus and collaboration; Concerned to achieve a work/life balance; Concerned to be connected; Strongly opinionated on social and ethical marketing issues and supportive of causes such as the environment fair trade and volunteering: Family rather than work-centric - they are loyal to parents, friends and peers. Indeed co-purchasing with parents is common; Have a sense of entitlement; and Practical in their world view but internationally aware. As a target market for tourism, the millennials are racially more diverse than previous target markets such as the baby boomers. For example, Demoor and Zhang (2006) have done a ground-breaking study of millennials in China. They see this generation as more aggressive and rebellious than previous generations, looking to enjoy life and to spend money. They are creative, and follow fashionable products, displaying the generational characteristic of low brand loyalty. This has important implications for countries market- ing into China for the outbound market that is predicted to dominate world tourism flows in the opening decades years of this century. . 100 Contemporary Tourism: The Contemporary Tourist Key sources Beckendorff, P.J., Moscardo, G. & Pendergast, D. (2009). Tourism and Generation Y, Oxford: CABI. Demoor, P. & Zhang, W. (2006), China's Y Generation. Orion Journal of International Hotel Management 2(1), 13-17 Kotler, P., Bowen, J. & Makens, J. (2014). Marketing for Hospitality and Tourism, 6h ed. Harlow: Pearson. Kupperschmitt, B.R. (2000). Multi-generation employees strategies for effective manage. ment. The Health Care Manager 19,65 - 76 Solnet, D. & Hood, A. (2008). Generation Y as Hospitality Employees. Framing a Research Agenda. Journal of Hospitality and Tourism Management 15,59-68 Discussion questions 1 Taking the characteristics of the millennials outlined in this case study, what strategies would you use to market a destination to this group? List the pros and cons of taking a generational approach to tourism marketing. Generation Y are characterised by their use of connections and technology - how can this be used to attract them to tourism products? 2 3 Globalising markets Whilst tourism has always been an international industry, it has not necessarily demonstrated the characteristics of a global industry. These include the growth of large multi-national firms, the movement of resources across borders, and the increasing permeability of borders as we enter a 'borderless world'. Globalisation is seeing distinct national tourism markets blurring to become globally-linked markets , fuelled by the homogenisation of customer needs and low transport costs; the tourism market in Asia is a good example here. Globalisation imparts "pposing forces on the contemporary tourism market environment: Omogenisation of consumer preferences with communication convergence and the mass marketing of brands and lifestyles. Fragmentation as mass markets break into molecular markets with smaller and smaller segments. The connected knowledge economy The contemporary tourism marketing environment is characterised by inter organizational networks in both tourism value chains and destinations. This emphasises the importance of collaboration between marketing organizations sectors, delivo and the need to form alliances and mis Contemporary Tourism Marketing 105 Case study 4.2: Social media as a research tool ayah 4 Introduction Social media provide a rich source of data for market research. No longer does the researcher have to question the consumer in the high street or in their home; instead the consumer is constantly posting their thoughts and opinions on-line for all to access. Traditional market research can be costly and time-intensive; as a result, many organisa- tions have begun to turn to social media as a cost-effective and in-depth tool for gaining real time insights into their customers, market, brand appearance and other important market research aspects, assisted by social media aggregation tools such as hootsuite. com. The keys to utilizing social media for market research are to understand the ben efits and to create a proper research plan. This flow of information available from social media has been termed big data and for tourism organisations the approach is to: Extract big data using mining tools Model and analyse the data distinguishing the signal'from the noise'; and Use knowledge management to communicate the findings. This new approach to research is already gaining a commercial edge with the sale and analysis of real time social media data. Companies such as 'DataSift' and 'Gnip' analyse Tweets and blogs to track opinions of products in real time, whilst other research com- panies such as 'klout'analyse the influence of those who post opinions on line. These companies are data platforms, collecting and standardising information from social media sites such as Twitter, Facebook, YouTube and others. The companies can do this by enforcing the licensing rules for social media which state that say, a tweet can be 'analysed' but not 'republished: The sophistication of the approach allows data from dif- ferent companies to be combined to create powerful analytics. This is a new departure for market research and one that has moved rapidly from a cottage industry to the main- stream as the sophistication of the technology has improved. This is also a significant development - it turns market research on its head. No longer do researchers need to wait on the high street with clipboards, and as such there are two clear advantages for marketers: First, traditional market research takes months to design and implement but with social media, research can be conducted in a matter of minutes or hours and can be done more cost effectively. This is a significant breakthrough for an industry such as tourism where the product is produced where it is consumed as it allows companies to respond quickly to market intelligence about say. levels of service in a restaurant. Second, big data gives access to market research with an audience sample that is much greater in size than any other source can provide. This type of research also engages with the research subject and can be used to build relationships, as well as ensuring the data is more accurate than in traditional research approaches dos alis 22
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