Crisis Management Case Studies Tom Buncle, Yellow Railroad

Crisis Management Case Studies

Tom Buncle, Yellow Railroad

England: foot & mouth disease

UK: 9/11 bombings

Bosnia: civil war

Caribbean: “trouble in paradise”

Everyday credibility in a 24/7 world

Case Studies

Case Study 1 England:

Foot & Mouth Disease

England: Foot and Mouth Disease

Media sensationalism

Impact: Domestic travel drop – uncertainty – “countryside closed ?”

Solution: • Media communications: clarity + honesty = credibility;

dedicated 24/7 spokesperson • Consumer telephone “hotline” • Close liaison with COBRA (Cabinet Office Briefing Room A) • Domestic marketing campaign with trade partners

Result: • Public understanding – rather than rumour • Faster return to growth

England: Foot and Mouth Disease

England: Foot and Mouth Disease

Lessons:

• Communication: quick, frequent, honest

• Spokesperson: dedicated, 24/7

• Public trust: reality rather than rumour

• Recovery: faster return to growth

Case Study 2 UK after 9/11

Impact: International travel freeze

UK after 9/11: Impact & Challenge

Challenge

• To get the world travelling again

• To recover tourism to UK

• To deliver an additional 1 m visitors to UK

• To unite the UK tourism industry behind a shared goal

"Million Visitor Campaign"

• 31 partners – c. £45m (c. 50/50 cash/contra)

• Market Focus: campaign in 7 major countries

• Website for British SMEs: 3,000+ holiday offers in 3 months

• Close liaison with COBRA (Cabinet Office Briefing Room A), cross–government – national emergencies

• Protocol bypass: ‘Access all areas’ – JDI mentality

• Speed: Every second counts for the industry & the tourism season

UK after 9/11: Solution

UK after 9/11

Don’t forget to include all the right people!

UK after 9/11: Result Recovery: Tourism to Britain from USA recovered 16% faster than to the rest of Europe

RoI: ….. +1.1 million visitors …………+ £518m “an extremely good investment for Britain plc.” (UK Tourism Alliance Annual Report 2004)

Recognition: E-marketing awards – Highly Commended “a clear, tidy project done in adversity, with good sales results”

Role Model: The "Million Visitor Campaign" used as a model of good practice for tourism destinations in crisis

UK after 9/11: Lessons

• Partnership: no time like a crisis to find common cause

• Be bold: closed doors are easier to open in a crisis

• Focus: you can’t do everything

• Speed: impact vs. protocol

Case Study 3 Bosnia - Herzegovina:

Civil War

Impact: Reputation lag (civil war & genocide)

Action: • Target resilient markets – younger, active, adventurous: “destination pioneers”

• ‘Normal’ news stories – tourism highlights (e.g. activities)

Result: • Slow creation of awareness • Investment in tourism facilities • Gradual growth

Bosnia- Herzegovina: Post-Conflict (2007…)

Bosnia- Herzegovina: Lessons

• Target markets: focus on most resilient/adventurous & others will follow later……..word-of-mouth

• Media stories: ‘normal’, positive, tourism highlights

Case Study 4 Caribbean –

‘Trouble in Paradise’

Caribbean: ‘Trouble in Paradise’

Impact: • Wider Caribbean • Drop in tourism

Solution: • Clear story – police – govt. – tourism sector • Update when certain

Result: • Recovery time

Lessons: • Clear, regular communication – avoid rumour

Case Study 5 Everyday Credibility in a 24/7 World:

Everyday Credibility in a 24/7 World

Everyday Credibility in a 24/7 World

• 33% believe what a brand says about itself

• “If you make customers unhappy in the physical world, they might each tell 6 friends. If you make customers unhappy on the internet, they can each tell 6,000 friends.”

(Jeff Bezos - CEO Amazon.com)

• 92% believe what peers say about a brand (Neilsen)

Event Scale Classification Recovery Period

Source: World Crisis Analysis White Paper, OAG Market Intelligence (Aug 2011)

Crisis Recovery

Event Scale Classification Recovery Period

Low Singular localised event: e.g.: earthquake, tropical storms

Up to 3 months (Country)

Source: World Crisis Analysis White Paper, OAG Market Intelligence (Aug 2011)

Crisis Recovery

Event Scale Classification Recovery Period

Low Singular localised event: e.g.: earthquake, tropical storms

Up to 3 months (Country)

Medium Multiple event: e.g. widespread virus (SARS), extreme natural disaster

3-12 months (Regional)

Source: World Crisis Analysis White Paper, OAG Market Intelligence (Aug 2011)

Crisis Recovery

Event Scale Classification Recovery Period

Low Singular localised event: e.g.: earthquake, tropical storms

Up to 3 months (Country)

Medium Multiple event: e.g. widespread virus (SARS), extreme natural disaster

3-12 months (Regional)

High Global event: e.g.: global financial shocks, World Trade Center attacks

12-36 months (Global)

Source: World Crisis Analysis White Paper, OAG Market Intelligence (Aug 2011)

Crisis Recovery

Useful myth:

+ opportunity !!!!

Crisis

= danger