TRIM Conference Hannover 2007

Similar documents
Papathanassis Cruise Management & Prof. Dr. Dr. hc Alexis Papathanassis CruiseT Constanta (Romania), 13 th of June Prof. Dr.

Tour Operations Management

A strategic Analysis to asses current Booking.com competitive Introduction

Everything You Need to Know About Becoming a Successful InteleTravel Agent

Untapped Opportunities? How mobile itineraries bring travelers curated tours and activities at the right time and place

MADE WITH LOVE IN BERLIN Thema: Geschäftsanbahnungsreise Portugal

UNIT TITLE: RECEIVE AND PROCESS RESERVATIONS NOMINAL HOURS: 35

TRAVEL AND TOURISM 7096/22 Paper 2 Alternative to Coursework October/November 2016 MARK SCHEME Maximum Mark: 100. Published

Mobile Shopping. November Copyright 2012 Lightspeed Research. Proprietary Information. All Rights Reserved.

Who said that portals and GDSs are expensive and hard to manage? GPnet: it s never been easier!

4 ROUTES TO A WINNING BOOKING FUNNEL

NEW PUBLICATION. Penetrating the Chinese Outbound Tourism Market. Successful Practices and Solutions

Towards transparency and freedom of choice An unbundled pricing model for retail banks

Optimization Potential for Business Travel Agencies

Destination Online.co

ACCENTURE RESEARCH. TRAVEL FLASH RESEARCH CHINA INSIGHTS February, 2018

20m Customers. The World s Number One Integrated Tourism Group. 67,000 colleagues retail shops hotels. ships. 150 aircraft 14 cruise

MARKET AND FUTURE DEVELOPMENTS OF AIRLINE DISTRIBUTION

QL2 HOSPITALIY SOLUTIONS

STUDY SUBJECTS TAUGHT IN ENGLISH FOR EXCHANGE STUDENTS SPRING SEMESTER 2017/2018

MULTI-NATIONAL TRAVEL TRENDS Connecting the Digital Dots: The Motivations and Mindset of Online Travelers

E-SERVICE QUALITY EXPERIENCE AND CUSTOMER LOYALTY: AN EMPHASIS OF THE NIGERIA AIRLINE OPERATORS

ENHANCING CUSTOMER ENGAGEMENT THROUGH THE RIGHT CHANNEL

REACHING THE WE, MORE, NOW GENERATION THE RISE OF MILLENNIALS ( ) ACROSS ASIA

Factors Affecting Online Customer-to-Customer Purchase Intention: A Study of Indonesian Customers

Social Media and Mobile in Travel Distribution Report: Online strategies, consumer and industry trends, 2013

Egencia Special Report: How Leading Companies Leverage Egencia Technology to Drive Cost Savings

Multi Travel Software for Travel Agencies

Online Booking Engine

Travel Retail and Duty Free The financials of unique retail channels. Alessandro Cardito Braun Global Travel Retail Commercial Leader

research source manage assist a fusion of travel resource

Unique spectrum: Comprehensive solutions for the financial industry

E-SOLUTIONS ARE MORE THAN JUST SOFTWARE

Contracts with distributors the critical issues

Get to know CruiseMatch! In a few short pages, learn to create and service a Group Reservation. You will learn to do the following:

Hidden Business Travel Savings in Big Data

Best Practices in Contractor Loyalty Programs 2015

Price Discrimination. It is important to stress that charging different prices for similar goods is not pure price discrimination.

UNIT TITLE: SOURCE AND PROVIDE DESTINATION INFORMATION AND ADVICE UNIT NUMBER: NOMINAL HOURS:

PROGRAMMATIC JARGON BUSTER. A glossary of industry terminology

Orbitz or, The Reality of E-Commerce in Corporate Travel Purchasing

Labour Market Trends and Outlook

Industrial economics Competitiveness and productivity of tourism countries: Two sides of the same medal

Priceline: Name your own price!! Shrutivandana Sharma. EECS 547 (Electronic Commerce): Winter 2008 University of Michigan, Ann Arbor

TrueNZ. Technology + Tourism

THE DEVELOPMENT OF KNOWLEDGE AND INFORMATION NETWORKS IN TOURISM

SOCIAL INFLUENCE ANALYSIS: A NEW INSIGHT TERRITORY

Aon Risk Solutions Employee Benefits. Aon Plus. A new approach to voluntary benefits. Risk. Reinsurance. Human Resources.

MAXIMISING GROUP SALES AND BOOKING MANAGEMENT WITH GROUPS NEXT GEN

Dené Sinclair Director of Marketing Aboriginal Tourism Association of Canada. Joe Volk Executive Director CITAP #2016IATC

PERSPECTIVE. Destination Next for Travel and Hospitality. Abstract. Mitrankur Majumdar

PRODUCT INFORMATION MANAGEMENT

A-LEVEL BUSINESS Paper 2 Specimen Assessment Material. Mark scheme

INDEPENDENCE KEEP YOUR IDENTITY AND STILL PLAY WITH THE BIG BOYS AS PART OF OUR TOP 10 GLOBAL CHAIN

Tourism Supply Chains: A Conceptual Framework

Why The Best Product Fails

INTRODUCTION TO AIRLINE MARKETING Dr Keith Mason FRAeS

Online Travel Shopping Intention

Travel Services. When your business runs smoothly, you ll gain travelers loyalty.

Tourism Education as a Way to Create Value for the Industry: an Example from Haaga-Helia University of Applied Sciences

HOW TO DO A ZYNDIO BUSINESS MEETING (ZBM)

Addressing the Risk of Cryptocurrencies. 19 January

Trending with NextGen travelers. Understanding the NextGen consumer-traveler

7096 TRAVEL AND TOURISM

The Case of ARKTIK A system innovation for sustainable mobility from Germany

Electronic Travel Solutions (ETS)

Reflex. Online Appointment scheduling as an extra call to action on the website. Essential link between online & offline

Management. 1 Demonstrate an understanding of the concept of customer lifetime value, how to calculate it and the different factors that influence it.

E-commerce Mock-exam Questions

Management Reporting System

Lecture 7 Production Cost and Theory of the Firm

Christmas survey 2017 What will Christmas have in store for Belgians this year?

Terms and Conditions

Machine Learning Technologies for The Hospitality Industry

e-commerce WEEK7 Learning Objectives

Consumer rights and consumer organizations in Slovenia

The State of the UK Ticketing Industry 2013: Analysing the trend towards direct, online ticket buying

THE IMPACT OF ONLINE CONTENT ON GREEK TOURISM

Innovative business models within niche tourist markets: shared identity, authenticity and flexible networks. The case of three Italian SMEs.

THE SOPHISTICATED TRAVELLER S GUIDE TO Vacation Investment. Presented by: Luxus Vacation Properties

Expedia Affiliate Network. User Guide

TRUST BASED MARKETING OR THEORY T -- THE TRUST IMPERATIVE. Professor Glen L. Urban November 7, 2002 ebusiness Conference

Your guide to success, the CostSaver way

Contract Express. Contract Express is more than just a document automation system.

FOR MORE INFORMATION:

Chapter 12 Managing Relationships and Building Loyalty

9395 TRAVEL AND TOURISM

Jingle All the Way Home and Abroad: Holiday Travel Spend More than Doubles AMERICAN EXPRESS SPENDING & SAVING TRACKER

What s New Guide. Sage Pastel Version 14

9395 TRAVEL AND TOURISM

The Changing Attitudes of Canada s Frequent Business Traveller. Presented by: Dave Pierzchala

Assignment Topic: A Digital Marketing Strategy for The Windsor Colombo

35+ Years Systems 50,000+ Vehicles. Solutions Overview. Taxi Black Car Limousine.

Master YOUR DEVELOPMENT CONTRACTING MADE EASY CHOOSE YOUR PROJECT TYPE CUSTOM DESIGN & TECHNICAL ASSISTANCE

Disruptive Innovation in

Overview of Cochlear s Process Architecture

The era of Ship Intelligence

Proactive, Strategic & Personalised

CHAPTER 12 Pricing CHAPTER OUTLINE

Transcription:

Institut fürf Maritimen Tourismus TRIM Conference Hannover 2007 Online Trust: Survival in the E-Tourism Battlefield Prof. Dr. Alexis Papathanassis

Table of Contents Introduction Discussion Conclusion Understanding Online Trust in an E-Tourism Context The Nature of Selling Holidays Trust, Risk & Information Online Trust Dimensions Facilitating Online Trust & Different Types of Holiday Case Study: Royal Caribbean s Freedom of the Seas Website Usability! Website Usefulness & Awareness? Online Credibility? Implications and Conclusions E-Tourism Battlefields Critical Success Factors for: Holiday Portals, Online Tour Operators, Holiday Specialists Summary 2

INTRODUCTION (Conceptualising Online Trust in an E-Tourism Context) 3

Is This a Pipe*? Do you trust this picture as a representation of a real pipe? Had you never seen one, would you trust it still? Would this painting be sufficient for you to buy it? NO IT IS A PAINTING OF A PIPE! "La Trahison des Images" or "Ceci n'est pas une pipe (1928) by René Magritte (1898-1967) Belgian Surrealist Painter 4

Is This a Holiday? 5

Not Really! NO IT IS A DESCRIPTION OF A HOLIDAY! Do you trust this description? Is this description sufficient for you to book it? Do you think prior experience with this type of holiday or resort would affect your decision to book it? Would you book this online or at the travel agent? Would it make a difference if I told you that this is a TUI Holiday? 6

Defining Trust Human Risk Minimisation Strategy in the Face of Imperfect Information Actual (Objective & Measurable) Perceived (Subjective) Requires Presence of Risk Trust is willingness to be vulnerable based on positive expectations about the actions of others [1] Availability of Information Reduces Explicit (Rational-Focus) + + Tacit (Affective Focus) Empirical (Own Experience) = Information Richness 7

Online Trust Dimensions (abbr. ACU) Cumulative Information Richness Requirements Relative Price / Transaction Risk ++AFFECTIVE TRUST [4] ( reliance on Tacit information) +COGNITIVE TRUST [4] ( reliance on Explicit information) BASIC TRUST [5] ( reliance on information) facilitates Degree of Standardisation / Commoditisation facilitates facilitates Online Credibility [2] Company Reputation Perceived Size of Org/tion Structural Guarantees Website Usability [3] Content clarity & quality Navigation efficiency Interface/GUI-customisability Transaction Transparency Online Awareness & Usefulness [2] Awareness (Which website(s) should I visit?) Perceived Usefulness (Why book here online and not elsewhere - offline as well)? Frequency of Purchase Information Intensity (Complexity of Product Description) 8

There is More to E-Tourism Than Selling No- Frills Flights & Business Hotels Online Degree of Standardisation / Commoditisation Relative Price / Transaction Risk ++AFFECTIVE TRUST ( reliance on Tacit information) +COGNITIVE TRUST ( reliance on Explicit information) BASIC TRUST ( reliance on information) Last-minute offers Holiday Package Single components (flight, hotel) Theme Holidays / Cruises Information Intensity (Complexity of Product Description) Expeditions / Study Trips Itinerary-Built Holidays / MICE Frequency of Purchase 9

CASE STUDY (Royal Caribbean) 10

RCI - Freedom of the Seas (1) Intuitive & Interactive Navigation Screenshots from: http://www.freedomoftheseas.com, Access Date: 12.04.2007 11

RCI - Freedom of the Seas (2) Richness & Depth of Content Screenshots from: http://www.freedomoftheseas.com, Access Date: 12.04.2007 12

Screenshots from: http://www.royalcaribbean.com, Access Date: 12.04.2007 13

RCI International Website (3) Customisable Search & Reservation Workflow Freedom of the Seas Website Richness & Depth of Content Intuitive & Interactive Navigation Flexible / Customisable Reservation Workflow (various ways of searching for and booking a cruise) Online Usability Which should facilitate cognitive trust But how about RCI reservations in Europe? 14

RCI International Website (4) Usability What about the Other Dimensions? Usefulness? Awareness? Cannot book online on the international website (if you are logging-in from Europe): Re-directed to a travel agency in your country One can make an optional booking (subject to fee and then must contact the travel agency for completion of the booking) This requires the creation of an account and the provision of a credit-card number Why not contact the travel agency and book there? Why is the customer not redirected to the European website for the online booking? Is there a European website? Why was the customer not redirected there automatically, before starting with the search and entering data? Even if they have heard of the Freedom-of-the-Seas, do the customers know what RCI is? Would they visit the European website without having been subjected to the Freedom of the Seas publicity? 15

RCI European Website (5) A Totally Different Online Experience Screenshots from: http://www.royalcaribbean.de, Access Date: 12.04.2007 16

RCI European Website (5) A Totally Different Online Experience European RCI Website: Very basic content No possibility for online reservation Just optional booking For Free this time! Hotline does not work on weekends How does this experience affect online credibility? Will the potential customer go to the travel agency? Even if they do will they end up booking RCL? 17

The RCI Case & Discussion European Online-Strategy Myopia Relative Price / Transaction Risk? ++AFFECTIVE TRUST +COGNITIVE TRUST ( reliance on Explicit x information) BASIC ( reliance on Tacit information) TRUST ( reliance on information) Degree of Standardisation / Commoditisation No awareness = No Reputation The incompleteness of the previous dimensions negatively affects reputation Usability dimension more or less covered But alone not sufficient! Misled assumption (RCI is not as known in Europe as in the US) Online setup does not provide any customer advantages Theme Holidays / Cruises Online Strategy Myopia Frequency of Purchase Information Intensity (Complexity of Product Description) 18

RCI Case & Conclusions European Cruise Market is Different Cruises More commodity than luxury Booked fairly often Relatively cheaper Focus is on ship (less on itinerary) BASIC & COGNITIVE TRUST ARE THE DECISIVE DIMENSIONS Relative Price / Transaction Risk ++AFFECTIVE TRUST BASIC TRUST Decreased Significance +COGNITIVE TRUST Degree of Standardisation / Commoditisation Cruises (US) Cruises (EU) Information Intensity Frequency of Purchase FOCUSING ON USABILITY IS JUSTIFIED BASIC TRUST IS COVERED Well-known brand in the US Focuses on Caribbean cruises Offers direct online booking options 19

IMPLICATIONS & CONCLUSIONS (E-Tourism & the Online Challenges ) 20

Multiple E-Tourism Battlefields From Looking 2 Booking (E-Tourism L2B = 5-25% [6]) Holiday Components (i.e. hotels, flights, rental cars) Holiday Packages Holiday Experiences (e.g. theme holidays, cruises, expeditions) Awareness Battles: Online suppliers of tourism components enjoy a relatively high Look2Book ratio approx. 34% [7] [8] Large investments on online branding Usefulness Question: Price sensitivity E-Convenience: Preference for one stop online services [6] Content Democratisation Online suppliers of packaged holidays, city tours have a low L2B ratio - approx. 13% [7] Emancipated E-Tourists & UGC (User-generated-content) [9] GNEs (Global New Entrants) Usability Question: DIY Packaging vs. Tour Operator Packaging Online offer standardisation Pricing transparency Direct Selling Dilemma Complexity of product description & relatively high prices Mostly bookable offline & dependence on travel agencies Credibility Question: Brand awareness & reputation Offer customisability / exclusivity Price parity (x-consistency) 21

E-Tourism Success & Online Trust (1): Holiday Portals Online Strategy Guidelines Online Brand Dev. & Protection Expedia vs. Expado [10] Aidu vs. Aida [11] Dynamic packaging functionality Inclusion of pre-packaged holidays in the online offering Maintain portal-character / model Minimise capacity risk Maintain lean cost structures Attracting Online Lookers Basic Trust Development 22

E-Tourism Success & Online Trust (2): Online Tour Operators Online Strategy Guidelines Investment in content enrichment for: -margin, information-intensive products Exclusivity packages and / or components which are capable of financing such an investment! Pricing transparency and content standardisation for mass-market holiday packages: light the advantages of a tour operator package vs. a DIY holiday Transforming Online Lookers to Bookers [12] Cognitive Trust Development 23

E-Tourism Success & Online Trust (3): Online Specialists Online Strategy Guidelines Multimedia-enabled & interactive content Reduction of transaction risk through structural guarantees: Option booking Free re-bookings Price parity across channels and over time: Do not punish online customer Avoid sabotaging offline distribution channels Utilisation of online presence to increase customer base (both offline & online) Affective Trust Development 24

Online Trust In A Nutshell E-Tourism & Online Trust Risk minimisation mechanism Online trust-levels depend on: The availability of information Both explicit and tacit), combined with the ease and ability to access it Within the E-Tourism Context, online trust has migrated from a focus on internet adoption to a competitiveness issue... poses different requirements, depending on the scope and type of holiday services offered cannot be separated from the overall marketing strategy of tourism companies Success in E-Tourism is not just about increasing the trustworthiness of websites, but also about utilising web presence to facilitate trust towards the organisation! 25

REFERENCES 26

End Notes 1. According to Riegelsberger et al (2003:761), this is the most commonly used definition by researchers in organisation- and computer-human interaction studies 2. Koufaris, M. & Hampton-Sosa, W. (2004) 3. Flavian, C. et al (2006) 4. Lewis & Weigert (1985:963) 5. Giddens (1991:39-40) 6. Eggers (2005:169) 7. Fittkau & Mass (2002:75) 8. See for example: Mueck, R. (2007:124) 9. See for example: Hildebrandt, K. (2007:54) 10. See for example: Juers, M. (2007:21) 11. See for example: Teggatz, T. (2007a:44) 12. See for example: Teggatz, T. (2007b:87) 27

References Eggers, R. (2005), Grundlagen des E-Tourism: Information & Kommunikationstechnologien im Tourismus, Shaker Verlag: Aachen Fittkau & Maaß (2002), Reisen im Internet, W3B Umfrage Flavian, C, Guinalıu, M. & Gurrea, R. (2006), The role played by perceived usability, satisfaction and consumer trust on website loyalty, Information & Management, No.43, pp.1-14 Giddens, A. (1991), Modernity and Self-Identity, Polity: Cambridge Graue, O. & Rogl, D. (2007), 80 Prozent Online Buchung als Standard, FVW International, 30 March, p.54 Hildebrandt, K. (2007), Die Guerilla uebernimmt die Macht, FVW International, March, p.54 Juers, M. (2007), Expedia erfolgreich im Namenstreit, FVW International, 01 March, p.21 Lewis, J.D & Weigert, A. (1985), Trust as a Social Reality, Social Forces, Vol.63, No.4, June, pp.967-985 Muenck, R. (2007), Mehr Buchungen ueber Airline Seiten, FVW International, 01 March, p.124 Muenster, M. (2007), Transocean lockt Reisebueros ins Netz, FVW International, 30 March, p.67 Riegelsberger, J, Sasse, M.A. & McCarthy, J. (2003). The Researcher's Dilemma: Evaluating Trust in Computer Mediated Communications. International Journal of Human Computer Studies, 58(6), 759-781 Teggatz, T. (2007a), Aidu ein Name wird Schall und Rauch, FVW International, 16 February, p.44 Teggatz, T. (2007b), Online gesucht, offline gebucht, FVW International, 01 March, p.87 28