5. Reputation Management

Presented by Dr David Beirman May 19, 2011. Mapping the Future Bangkok Thailand.

Theme 1. Defining Reputation and perception in a Tourism Context A component of social identity. Socially based.

Reputation is defined by significant others.

A fundamental instrument of social order.

In tourism, your market will determine both your perceptual image in the market and reputation (which in most instances means your standing)

Critical to reputation management is the ability to understand how significant stakeholders and prospective customers regard you in relation to your competitors.

Consistent Delivery on promises and claims.

Thailand’s Tourism Image as the Thai Tourism industry and TAT would like to see it

2011

Theme 1. The Importance of Perception in

Defining Business and Destination Reputation

Perception and reputation is frequently more influential than the facts. Global Examples: SARS in 2003 and Swine Flu 2009/11. Political unrest in Egypt 2011. The impact of earthquake, tsunami & Nuclear fallout following the 2011 tsunami on destination Japan. Unrest in the Middle East and its impact on tourism The current economic “recession”. Depicting a modest tourism downturn as a crisis. “If it bleeds it leads” Tabloid News editors.

Key Concepts in Perception Analysis

Governors of Tourism Perception

News media in all forms.

Web and blog sites.

Lifestyle and travel Media incl.

guidebooks.

Trade press.

Government travel advisories.

Cruise ship operators

Airlines.

Word of mouth and family opinions.

Major tour wholesalers.

Travel agency chains.

Key Stakeholders in Shaping of

Thailand’s Tourism reputation

Airlines servicing Thailand.

Foreign Tour Operators which include Thai product.

Travel agents in key source market countries

Internet booking sites.

Travel Insurance providers in source markets.

Foreign Diplomatic legations in Thailand (travel advisories)

Media both news and tourism orientated publications, Electronic media, travel editors and journalists.

Regional Tourism Associations including PATA, ASEAN Tourism and APEC

Theme 2. Understanding What

makes a Destination Competitive

J Brent Ritchie and Geoffrey Crouch in their seminal

work, The Competitive Destination (2003) CABI Publishing

UK/USA provide extensive coverage of the qualities

which make for a competitive destination and by

inference a destination which will enjoy a good

reputation.

Core Indicator

The DCI Model (Destination Competitive Index). Key to ongoing Reputation Measurement Ritchie and Crouch (2003)

DCI

EP VS S MA

Index

Criteria

Indicator 1: Economic Performance Criteria:

24 out of 163 total index criteria

20 quantitative and 4 qualitative criteria

Some Criteria Examples:

Total visitor expenditures (secondary data)

Ratio of travel/tourism employee compensation to overall employee compensation (secondary data)

Ease of starting a tourism-related business (expert opinion)

Travel and tourism GDP/overall GDP (secondary data)

The DCI Model

Indicator 2: Sustainability Criteria:

60 out of 163 total index criteria 7 quantitative and 53 qualitative criteria

Some Criteria Examples:

Preservation of natural capital (expert opinion) Maintenance of ecological integrity (expert opinion) Resident access to tourism infrastructure (resident survey) Level of political support in facilitating tourism efforts

(expert opinion) Taxes generated from tourism expenditures (secondary data) Visitor perception of destination having reached its tourism carrying

capacity (visitor survey)

The DCI Model

Indicator 3: Visitor Satisfaction Criteria:

32 out of 163 total index criteria

2 quantitative and 30 qualitative criteria

Some Criteria Examples:

Perceived richness of destination culture and history (visitor survey)

Satisfaction with overall destination quality of service (visitor survey)

Level of repeat visitation (secondary data)

Perception of resident hospitality (visitor survey)

Quality of the destination experience (visitor survey)

The DCI Model

Indicator 4: Management Action Criteria:

47 out of 163 total index criteria 10 quantitative and 37 qualitative criteria

Some Criteria Examples:

Satisfaction with destination management (DM) action in dealing with competitive pressures (expert opinion)

Quality of involvement in human resource development programming and support (expert opinion)

Satisfaction with destination materials to help with trip planning (visitor survey)

Number of quality special events (secondary data) Average visa fees per visitor (secondary data)

The DCI Model

Steps to Destination success Implementation and results

Goal congruence

Competitor congruence Between enemies and allies

Market congruence Categories, Nature and size of demand, Seasonality

Ability to mobilise , train and deploy resources

Factor endowments including natural resources, knowledge, capital and

infrastructure

Theme 3.Working With The Media both Trade and Consumer to Build or Restore Business or Destination Reputation.

1. Business to Business Media is a valuable ally if you treat it with respect and not just as a mouthpiece. Paying for positive advertising does not guarantee your destination or business positive editorial.

2 Business to consumer media involves overcoming inate skepticism. You need to earn trust and support not try to either buy it or assume it. A professional journalist has a highly tuned bullshit antennae.

What Makes News According to Rupert Murdoch ? Interview June 20, 1987

Crisis

Conflict

Crime

Corruption

Catharthis

Conquest

Cataclysm

Scandal

Rescue

Triumph over adversity

Sporting Triumph

COMMON ASSUMPTIONS TO OVERCOME The media is only interested in bad news.

The media is an adversary.

The media is not interested in covering solutions and recovery stories.

The media exaggerates problems.

Tourism in the Media PRINT Daily newspapers Local, weeklies Travel Specific

magazines Lifestyle magazines. Billboards and posters

ELECTRONIC Websites E publications Blogs Social networks

Facebook & Twitter TV Travel and Lifestyle

shows (Getaway) TV and radio news. Radio AV ads and displays.

Correcting Potentially Negative Assumptions Many in the media want to support tourism as

tourism advertising supports the media.

The media will publish or broadcast your side of the story if you are prepared to give it.

Well presented good news is as marketable as bad news.

The media can be an ally if its treated accordingly.

Travel writers and travel trade press have natural affinity towards the promotion of tourism.

How can we best work with the Media to get our story across ? Develop and nurture contacts. BUILD TRUST.

Ensure there are an active media spokespeople for all key source markets who are fluent and articulate in the relevant language.

Ensure that person is readily contactable 24/7/365.

Ensure there is a coherent, consistent and credible media line on all tourism matters, especially crisis related matters.

Prepare factual answers to questions.

Ensure the organization understands and is consistently keeping to the organization’s policy line.

TIMING YOUR MESSAGE IS CRITICAL

The Core Elements of Reputation Management For Destinations and Tourism Companies HONESTY

CONSISTENCY

RELIABILITY

TRANPARENCY

CLEAR EVIDENCE TO BACK CLAIMS

SUPPORT OF STAKEHOLDERS

TESTIMONIALS FROM RESPECTED –PEOPLE FROM KEY SOURCE MARKETS

The Ingredients of an Effective Tourism Recovery Media Campaign

Consumer and trade media targeted simultaneously. Advertisements alone do not make a media campaign.

A good media campaign has to be news and articles and eyewitness accounts from credible source to the target audience..

An effective media campaign is proactive. A media campaign has to be appealing and relevant to

its target audience. The campaign has to be multi-media in scope.

The Essential Tools of Good Media Relations A readily contactable media spokeperson.

An up to date an accurate web site.

Ready access to the facts.

Make their job easy by providing well prepared media releases and credible contacts for interviews.

Enable the media to see the situation first hand.

Honesty.

Correcting Negative Reports Attack the content, not the journalist.

Ensure your facts are correct and verifiable.

Offer the reporter the opportunity to see

for him/herself.

Quote from or provide access to credible sources who can verify your side of the story.

Set the News Agenda Responsive PR places you in the defensive.

Where possible initiate positive coverage.

Spread the news of positive developments.

On identifying supportive reporters offer

exclusives or preferential notice of a breaking story. Journalists love exclusives.

WEB SITE INCLUSIONS Security advice for intending visitors. South Africa has

used this strategy with great success

Anticipate negative perceptions and address them

Hot tips for a safe and enjoyable visit.

Unique experiences in Thailand. A welcome from famous Citizens.

Testimonials from celebrity visitors relevant to the source market.

Thematic Tourism.

Targeting the Media for New Tourism initiatives

Pick a niche market with potential for growth.

Lifestyle TV programs have global audiences.

Choose the socio-economic group you wish to target.

Travmedia service specialises in articles for travel journalists globally.

Tourist organisations should be cautious in offering assistance to current affairs programs

Hosting a “Good Morning America/ Australia/ New Zealand” or similar program in your source market country is viable and gives excellent coverage for several days.

The 2010-11 Oprah in Australia Campaign has proven to be an effective marketing campaign for Tourism Australia.

Which Country’s Tourism Industry is getting media management Right ? South Africa:

Excellent leverage from 2010 World Cup.

Promotes a diversity of attractive tourism images.

Has positioned a high national crime rate from a potential crisis to an avoidable hazard.

Is proactive in engagement of consumer and trade media

Invites carefully targeted travel professionals and media for familiarization trips.

Excellent inter-sectoral relations between SATOUR and other South African tourism stakeholders.

Theme 4. Travel Advisories and Destination Reputation. Understanding the basics of Diplomacy is vital for

destination tourism professionals.

Demanding a country’s government tone down a travel advisory because you don’t like it never works because you are calling on a government to publicly lose face with its citizens.

Changing negative travel advisories involves a negotiation process in which you need the support of advocates in the source market.

The Australian model which follows will be helpful.

Travel Advisories Become an Issue of Diplomatic Conflict Following the Bali Bombing of 12 October

2002 Many Western governments issued negative travel advisories applying to Indonesia, and other SE Asian countries including Singapore, Malaysia Philippines and Thailand.

Fears of Al Q’aida related terrorism in many parts of SE Asia.

DFAT’s Approach to Advisories Post September 11 and Bali Bombings 2002

Primary concern the protection of Australian citizens abroad.

Political concerns that media judged “failure” to predict Bali required a cautious approach.

Heightened review of travel advisories

and procedures.

Australian advisories should never be influenced by overt foreign pressure.

The Problems of Resolving Disputes through conflict Australia and other Western governments

can’t be seen to lose face by being perceived to change travel advisories in the face of foreign diplomatic pressure tactics.

Strident approach to Western advisories by SE Asian and SW Pacific nations is a barrier to review of advisories rather than a facilitator.

Thai Tourism Officials should build up contacts with the diplomatic legations of all key source market countries.

The Australian Travel Industry Developed a Role in Advisories After 2002 the Australian Travel industry was

increasingly critical of travel advisories and their formulation.

Travel industry sought a say.

Governments suspicious of travel industry motives. Profit before safety. INCORRECT

PATA, UN World Tourism Organization and tourism industry leaders sought a more active role in influencing travel advisories from all tourism generating countries.

The Australian Charter for Safe Travel Model for a Cooperative Approach between Tourism Industry and Government

Jan 2003 ANTOR sets up meeting between DFAT and travel industry leaders.

AFTA’s Mike Hatton establishes a committee of Australian Travel Industry leaders to negotiate with DFAT an agreement under the banner of the “Charter for Safe Travel”

The government seeks industry dissemination of travel advisories.

The Industry seeks a say in their content.

Charter for Safe Travel Signed in Sydney June 11, 2003. Industry agrees to disseminate advisories.

Australian Government agrees to enhance

consultation with industry through the Smartraveller Advisory Group which involves representatives from all key outbound travel companies and associations. Regualar meetings with DFAT

DFAT makes itself available to discuss advisories with travel agents through travel industry seminars and consumer travel expos.

An International Example of the

Cooperative Tourism Approach to Travel Advisories- Kenya 2003-4 In April 2003 UK, USA and Germany imposed negative

travel advisories on Kenya based on a perceived threat of terrorist attack.

May 2003 Kenyan Tourism leaders met with diplomats in closed meeting to negotiate what measures were required to overcome the advisories.

By July 2003 UK and USA lifted negative advisories based on Kenyan actions. US and Australia took much longer.

By adopting consultation rather than confrontation, Kenya’s tourism industry recovered with one year.

Global Approaches to Travel Advisories Tourism Concern, UNWTO, PATA advocate a global

approach towards ensuring that travel advisories are:

(a) Truthful.

(b) Specific to the problem area as opposed to a blanket assessment of a nation.

(c) Reflect changing conditions (timely).

(d) Avoid targeting bias against developing countries.

(e) Graded in accordance to an agreed level of threat to travellers.

The last of this list is totally unrealistic for reasons I’ll explain.

Current Situation 2011 Australia the first country with an industry/

government agreement.

British industry signed an agreement in 2004.

Canada signed an agreement in 2005.

In 2011 only these three countries have govt/travel industry agreements on travel advisories. More should do the same.

Understanding that circumstances for

travel generating countries are different.

Disputes - tourism generating countries and tourism receiving countries require diplomatic rather than a confrontational solutions.

Theme 5. Avoiding Tourism’s Most Common Post “Negative Event” Recovery Trap Incentive based recovery should be financially sustainable. Focus on value adding rather than discounts. Avoid the financial striptease of dropping your prices and exposing your bottom line. Once a business strips prices. consumers will resist attempts to get dressed again. Price is a measure of how tourism businesses value their own reputation.

Thank you Dr David Beirman

Senior Lecturer – Tourism University of Technology-Sydney. [email protected]

Founder (2000) and National Secretary Eastern Mediterranean Tourism Association. www.emta.org.au

Member: Smartraveller Advisory Group to the Australian Department of Foreign Affairs and Trade.