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Tourism Intelligence Institute was founded in 2010 as a supporting organization in growth of Danish tourism. TII is a practice – oriented think tank. Its mission is in cooperation, planning and new thinking within the Industry. Today the institute is running several projects such as sustainable tourism, emerging markets and experience economy.
Presentation of Placement Company 3
Evaluation of the industrial placement 4
Consideration of the problem statement 8
Data, analysis, suggestions to solution 11
Conclusion 16
List of references 18
Attachment 19
Log Book April/May/June 2011 19
Interview #1 28
Interview #2 30
Statistics 32
Segmentation 33
My suggestion to problem statement resolution is based on recently provided information on regional customers by one of the biggest airline net companies in Russia S7. Consideration of acquiring new partners and representatives based on the fact that regional cities in Central Russia, Urals and Western Siberia with over then 4.000.000 population have a demand for new transportation and tourist products. The segmented population of regional customers in Russia is not reached to the same extent as the people in big cities like Moscow and S Petersburg. Regional customers have a demand for travel but they are seldom users of tourist services and for vacations prefer non-active tanning on the beach. Typically regional customers are coming from Perm, Novosibirsk, Yekaterinburg, Chelyabinsk – cities based around big industrial clusters employing tens of thousands workers and administration. In average 35 – 37 years old regional customers have 3-4 persons per family. Women represent 70%, men 30% of regional customer segment. Average income per working member of the family is 2000 – 4000 euros per month. Moderate climate complicated by cold and long winters. An opportunity to travel to European cities or resorts all year round is an option that is a part of global tourism development. Regional segment presented by directors, managers, employees of the big metal, coal, oil and gas industrial clusters. They have basic or higher education. Readiness stage of regional customers is ‘informed’, loyalty status to new tourist products is medium, attitude towards product is indifferent. According to Peer Kjaer, Sales and Marketing Director of Robinson Scandinavia the company is focused on the clients’ demands and Russian customers are easy to deal with. ‘It takes time and hard work to get the clients attention, and get them to buy from us, but once they trust us, they work with us for a long time’13 said Peer Kjaer.
In consideration of
the problem statement, a real increase of Russian speaking travellers
to Denmark could be based on selling tourist products to regional customers
of Russian Federation, and providing them with all necessary information
and possibilities to choose and plan their vacations.
Experience economy.
Tourist products must satisfy
functional and social needs of the customers. “We don’t see any
specific demands yet, as the majority of Russian tourists mainly arrives
to Denmark on cheap bus tours, and mainly buys sweaters. We do see a
slow upward trend in demand for programs, which include Danish design,
but we cannot see any significant raise in the purchase of the products”,
said Peer Kjaer, Sales and Marketing director of Robinson Scandinavia
A/S.14 Recommendation would be to create or develop tours
that cover the customers’ demand for experience and active participation
as well as their functional and social needs: events, Lego tours, city
breaks, shopping tours, fishing, biking, opera/theater/cinema/concert
going, visiting international and national design shows. When customers’
demands are met they are more likely to return to the same tour operator,
hotel or restaurant and spread good word of mouth about the provided
service.
Feedbacks and service quality
The company very rarely gets
feedbacks from Russian and Ukrainian customers. According to Sales and
Marketing Director of Robinson Scandinavia, the customers send the feedbacks
to the company only when their expectations did not match the experience
from a purchased tour. Implementation of a system of regular feedbacks
from the customers will help to find out and fix the problems in service
quality of the tours. Knowing the problem or a matter of the complaint
would make it easier to eliminate or reduce service quality gaps.
Public Relations
TII wants to create more demand
for travel to Denmark. The company studies different communication platforms
in Russia and believes that television is the main decision maker for
travel. The management provides logistics, accommodation, and transport
for the TV crews. Engagement with Russian and Ukrainian TV Media, with
programs that are willing to present Denmark and create an awareness
of Denmark as a quality tourist destination for Russian customers needs
sponsorships. Recent sponsorship provided by the Press Initiative of
the Danish Ministry of Foreign Affairs allowed hosting of a Russian
TV3Channel, program ‘Daleko I eshe dalshe’. A proposal is to create
a fund for the development of Public Relations between Denmark and Russia,
prior Danish State Visit to Russia in September 2011.
Development of a sophisticated IT system
It appears important to increase company’s web site interface regarding customers from Russia. It is desirable to create a communication possibility for the customers on the company’s website and implement social networking services15 like www.facebook.com, www.twitter.com, www.youtube.com, www.vkontakte.ru
Statistics on the use of social
network services in Russia show the ever-growing trend towards increase
of hours spend in the social network by an average Internet user in
Russia. There is also a trend towards growth of electronic purchase
of goods and services. With a degree of modern Internet sophistication
processes, the company could increase the amount of customers by spending
more on marketing and advertising, social networking, and facilitating
of tourist product purchase services on the company’s site.
Marketing
The company’s sales in Ukraine
and Russia in 2010 made approximately 200.000 kr. According to Peer
Kjaer company’s spending on marketing are - “Way to little. The
top management of Robinson does not quite understand the potential of
these ‘new’ markets and is not ready to spend sufficient funds.
In order to achieve our goals, we have to find more external funding
for our projects”. A solution to this problem would be in raising
the sales of the diversified tours to Denmark in big cities as well
as in the regions of Russian Federation. The sales could be raised by
the free advertising in Russian and Ukrainian TV programs that were
assisted by the company. Robinson Scandinavia A/S is an experienced
tour and holiday maker with a solid reputation. Russian and Ukrainian
TV programs about Denmark created with direct assistance of the company
should advertise the company’s tours to Denmark. The condition for
advertising the company’s tours in Russian and Ukrainian TV programs
seems reasonable and fair.
Cross-cultural training
Some cultural awareness training
for the employees in Hospitality Industry can be proved necessary as
the guests of the country expect service providers to understand their
values and their cultural beliefs. Cross-cultural understanding comes
with a developed intercultural sensitivity – the attitude that enables
hospitality employee and a guest to interact effectively with people
of foreign cultures towards a creation of unique experience for the
guest. Hospitality employees can use critical incidents16
as training in service encounters.
CONCLUSION
Danish Ministry of Economic and Business Affairs informed17 that the Danish government together with the Business Plan for more intensive global marketing of Denmark in 2011 – 2012 assigned 210 million kr. for marketing of Denmark. 32 million kr. are especially determined for attraction of more tourists to the country. Better knowledge of Denmark as a tourist destination should be promoted by organization of more conferences in the country, marketing Denmark as a green nature destination, better coordination between export, culture life and tourism promotion. Tourist access to Denmark is planned to be promoted by organization of additional airways and by easing rules for tourist visas. Tourism statistics should be more precise and efficient when applied to marketing.
Information or the lack of it is still an obstacle for attraction of more Russian tourists to Denmark. It is possible to buy a guide book in Russia. But guidebooks offer the consumer a standard set of places of interest and general data about the country, whereas the customer is mainly interested in sources of information based on their own areas of interest.
Event tourism is significantly important in attraction of more tourists to Denmark. An access to visiting exhibitions, auctions, sales, fairs, flea markets, and concerts is an issue of paramount importance as well as providing tourists with an access to participation in special local events not designed only for tourists. Potential Russian tourists do not have sufficient information about the events like Sankt Hans Aften, Roskilde Festival, Frederikssund Vikingespil Festival, and more of the festivals, rituals and concerts. Demand for visiting sacred places, and places of power is also increasing.
Some routine organized events can be attractive to Russian customers. Wine and chocolate tours, Cheese tours, Sausage and Beer tours, Lego tours, excursions to places connected to legendary performers, like Graceland near Randers, are theme tours that are certainly viewed as interesting and worth of spending money, buying or being presented memorabilia and souvenirs.
Cooperation of TII with Ukrainian and Russian TV Channels and production of in-land filmed programs appears to be extremely interesting. Filming in-land popular Ukrainian and Russian TV hosts credit interest and attention of multimillion audiences. 45 or 90 minutes of TV program aired in the prime time include up to 5 minutes episodes filmed in various locations in the country and feature interviews with interesting people of the country. Learning and traveling programs in different genres add to general presentation of the country and to positive cultural awareness of tourist destination. Danish services and products are being indirectly marketed in programs produced at TV Media Tours which can be considered company’s USP.
Technical visits appear to be company’s another USP as they contribute to export of new design, ecologically friendly technologies, services and products.
A system of feedbacks from
the tourists would help to eliminate or reduce gaps in perceived and
experienced service quality at a tourist destination and design tours
that are more oriented on demand of the travelers.
LIST OF REFERENCES AND SOURCES
Recommendations and initiativs, ’Fornyelse og Vækst i Dansk Turisme’, Økonomi- og Erhvervsministeriet, June 2011
Reisinger & Turner; Cross-Cultural Behavior in Tourism: Concepts and Analysis, Butterworth-Heinemann, 2009.
Hofstede, Hofstede, Minkov; Cultures and Organizations Software of The Mind, Intercultural Cooperation and Its Importance for Survival, McGraw Hill, 2010.
Fons Trompenaars; Business Across Cultures, Wiley, Adobe Digital Editions.
Trompenaars, Hampden-Turner; Riding The Waves Of Culture, Nicholas Brealey Publishing in 1997.
Chris Cooper; Tourism Principles and Practice, 4th edition, Pearson Education Limited, 2008.
Christian Groenroos; Service Management and Marketing, 3rd edition, John Wiley & Sons, Ltd, 2007.
Svend Hollensen; Global Marketing, 3rd edition, Prentice Hall, Pearson Education Limited, 2004.
Longman Advanced American Dictionary, Pearson Education Limited, 2000.
Collins Russian Dictionary, Harper Collins Publishers, 2000.
Source list.
www.1tv.com.ua
http://tv3.ru/daleko.html
http://www.tv14.net/zvezda-
www.tvketlin.ru
ATTACHMENT
Log Book: April/May/June 2011
Log Book. Industrial Placement - International Hospitality Management.
Student’s name: Dmitrij Goujov
Company’s name: Robinson Scandinavia A/S
Contact person in the company: Director of Sales and Marketing Peer Kjaer
Placement period: 01/04/2011 – 30/06/2011
Supervisor: Hans Svenningsen
Problem statement.
The number of nights spend
by Russian tourists in Denmark in 2010 is 64.695 – it is lower
than in Sweden (222.265) and Norway (172.811) and any other European
country. What can be done to attract more tourists from Russia and other
former SU countries to Denmark? What can be done to raise the demand
for Danish tourist products in Russian outbound travel market?
Overall plan for the industrial placement. April 2011.
13/04/2010
15 April 2011
18 April 2011
19 April 2011
Assignment#3
28 April 2011
29 April 2011
02 May 2, 2011
Practical placement proceeds according to the plan. Overall problem statement as an objective to reach in several years (increase of Russian and former USSR tourists’ visits to Denmark) is relative to the activities of the company. It goes well in accordance with the State Visit to Russia (Moscow and St Petersburg) in September 2011. Preparation to massive B2B and B2C events in Russia includes Public Relations and Press Relations to inform as many as possible interested people in the event as well as inviting them to take part in the program. Audiences for PR and press messages are customers, employees, stake holders, mass media, government, all interested people in the development of Tourism and relations between two countries. Informational objectives are to inform defined audiences about company’s plans, campaigns, innovations and events and to receive feedbacks from the publicity. PR target a number of placements in Press and Social Media. Role of the PR is to build consensus and to advocate the position of the company as well as to create coverage in the largest newspapers and the most popular TV channels. PR activities – campaign support. Major issue – campaign support.
The company’s and the student’s objectives for the Industrial Placement:
3 May 2011
4 May 2011