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Facing Disintermediation HK tourist facing the IT storm A discussion at HKU SPACE

Facing Disintermediation HK tourist facing the IT storm A discussion at HKU SPACE By Erwin Huang VP education, HKITF. Quick backgd: Erwin Huang. HKIT Federation, VP of Education Committee IT, Media, Retail background Assisting the HK Tourist industry to react to IT changes for 8 years

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Facing Disintermediation HK tourist facing the IT storm A discussion at HKU SPACE

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  1. Facing Disintermediation HK tourist facing the IT storm A discussion at HKU SPACE By Erwin Huang VP education, HKITF

  2. Quick backgd: Erwin Huang • HKIT Federation, VP of Education Committee • IT, Media, Retail background • Assisting the HK Tourist industry to react to IT changes for 8 years • Partially sponsored by HK.gov

  3. Agenda • Internet and the Tourist Industry • Born of the Knowledge Consumer • Disintermediation • IT, Friend or Foe? • Sample Solution

  4. A Paradigm Shift in the Tourist Industry

  5. A Paradigm Shift • Born of the Knowledge Consumer • Internet as Disruptive Technology • Disintermediation • Changes in the Value Chain = Potential Cut out of the Middleman • What can we do? • A new way of thinking…

  6. Born of the Knowledge Consumer • Free, Direct, Easy, Up-to-date Information flow through Internet • Customer becomes more knowledgeable • New Generation of Consumer with High spending power: Demand Value, Customization, Speed, Flexibility

  7. Knowledge Customer Sample: • Direct contact between the 3star Hotel in Budapest with the Traveler from Shatin in 1 minute

  8. Disintermediation • If all that a Tourist Agent is offering is: • Ticketing (due to access of proprietary information, e.g. flight availability.. Hotel vacancies..) • Lower price by cutting into agent discount • A good chance that disintermediation will occur soon..

  9. So what shall we do? Are we DOOMED? • IT Revolutions as a Disruptive Technology has the Potential to really hurt the sales of the Travel Agencies • Esp. SME type agencies • Competing on Price • Convenience • Access to Proprietary Information • Different environment Demands a Different way of Thinking • Adopting Customer Oriented Systems and Business Flow

  10. Panel Speaker • Sun N Sea Holidays • http://www.sunnseaholidays.com/en/

  11. Sun N Sea Holidays • Using Web as Marketing tool • Focus on a Niche Market • Add Value/Service to the Customer experience • List Management • Recurring/Loyal Customer • VIP Program? • A CRM Program?

  12. What is a CRM? • CRM: Customer Relationship Management • Think everything from the angle of the Customer • Who are they? Where do they come from? • What are their Interest? What is the spending level? How many family member? When is their birthday? • Where do they want to go on Xmas? Easter? • How much is she willing to spend? • Predict what her needs? And offer products accordingly.. • NOT necessarily a Computer System • Definitely a System of Operation

  13. Basic CRM Model for Tourist Industry Acquiring Customer Knowing your Customer Building Products, and Service Increasing Revenue

  14. CRM: Creating the list and Protecting the list • Your current custom, do you keep a list of their contact? • Buying it? • Typing it in from directories? • Upgrading customer on the list? • Protecting your list?! Loyal Customer Coming back Customer Real Customer Confirmed email Mass mailing List

  15. Understanding Customer-Centric Systems: HSBC • Customer “Life-Cycle” • When you are 12, your mother open your first Bank Account.. Your first HSBC account • 15 your first ATM card… • When you are 18, HSBC offers you your University Loan, or your first Credit card (even when you have no credit yet) • When you are 23, HSBC will be your natural choice for your first Salary payment… then first Autopay • 24, your first Tax • 30 your first Insurance sales • 34 your first house mortgage • 35 plan for your first kid.. • 35 your investment accounts • 45 your retirement accounts etc…

  16. Lesson from HSBC • Know your Customer • What do they want at what time? • How much did they spend with you last year • How to increase that? • How does he think? • What does he value? • What Service does he want?

  17. Shopping for CRM: Common Questions • How do I start • How much should I spent? • How do I measure ROI? • How to maintain the system? • Can I export or import info? • Is my data safe?

  18. New Marketing tools • Web 2.0 (Social Networking) • Extending into the Social Networking World • Even more segmented market • A better chance to understand your customer • The Long Tail opportunity • Mobile Internet Solutions

  19. Shopping for Web 2.0 Solution: Common Questions • How do I start • How do I catch on the Facebook wave and reach these users? • How much should I spent? • Do I need dedicated staff? • How do I measure ROI? • How to maintain the system?

  20. Discussion • Q + A • Facebook: erwinhuang1 • Slide available: Slideshare.net/erwinhuang

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