Keynote 1 - Setting The Foundations For Marketing Tourism Destinations

Setting the Foundations for
Tourism Marketing
RON CASTRO
About Me
30 Years Corporate (1987-2016) Post Corporate (since 2017)
• 10 in advertising industry • Management consultancies
₋ BBDO, Lintas • Executive roles
• 10 with Eastman Kodak • Executive Trainor/ resource speaker
⁻ Film, OTUC, Advertising & PR • Education
• 10 with Goodyear ₋ Adjunct Professor: Enderun, U&AP
₋ Marketing, Communications & PR ₋ Guest Lecturer: UP, UST, Ateneo, DLSU
₋ President – PH, TWN, VN, HK, MLC
17 15 1B 3 5
Years In Years in USD in Years as Boards/
Marketing Asia Pacific Turnover President 3 as Chair
IS
MARKETING
DEAD?
Ecommerce, artificial intelligence, Chat GPT, a
mobile-first mentality, rise of omni-shoppers and
prosumers, diminishing brand loyalty, etc. are all
indicating the role of marketing is severely
challenged in this post pandemic world.
What is Reshaping Tourism Marketing?
Tech Trends Consumer Trends Travel Trends
2023 Technology Trends
Five Technologies that are Changing the World
ARTIFICIAL RENEWABLE INTERNET OF

BLOCKCHAIN 5G
INTELLIGENCE (AI) ENERGY THINGS (IoT)
Source: https://www.simplilearn.com/top-technology-trends-and-jobs-article
Artificial Intelligence (AI)

AI can potentially transform a wide range of industries, from
healthcare and finance to transportation and manufacturing.
It could enable more personalized, efficient, and effective
services and products while raising important ethical and
social issues.
Generative AI
Describes algorithms (such as
ChatGPT) that can be used to create
new content, including audio, code,
images, text, simulations, and videos.
Recent breakthroughs in the field
have the potential to drastically
change the way we approach content
creation.
Blockchain
Blockchain technology has the potential to revolutionize
the way transactions are conducted, making them faster,
cheaper, and more secure. It could transform finance,
supply chain management, and healthcare industries.
Renewable Energy
The shift to renewable energy sources, such as solar and
wind power, has the potential to reduce greenhouse gas
emissions and mitigate the effects of climate change. It
could also create new jobs and economic opportunities.
Internet of Things (IoT)

The IoT, which refers to the network of connected
devices and sensors that are embedded in everyday
objects, has the potential to transform industries such as
healthcare, transportation, and agriculture. It could
enable more efficient and personalized services while
raising important privacy and security issues.
5G
The next generation of wireless technology, 5G, has the
potential to enable a range of new applications, from
self-driving cars to augmented reality. It could transform
industries such as telecommunications, entertainment,
and transportation.
2023 Consumer Trends
Emerging Consumer Trends in a Post Covid-19 World
RISE IN CONSUMER NEXT LEVEL THE FUTURE OF BRAND LOYALTY

SPENDING ECOMMERCE WORK IS SHATTERED
Source: https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/emerging-consumer-trends-in-a-post-covid-19-world
Rise in Consumer Spending

Household spending in the Philippines is projected to
expand by 5.5% this year, slower than the 8.2 percent
growth forecast in 2022 (Fitch). In terms of demand,
household spending was the biggest contributor to growth
last year, driven by restaurant and hotel spending.
Ecommerce accelerates to
next level
Credit card data revealed a 20% increase in online spending
since January 2020. 92% of consumers who tried online
shopping in 2019 became converts, cementing an
emergency response into an indispensable habit.
Ecommerce also redefined convenience - even traditional
shopping such as buying groceries surged.
Redefining the Future of Work

Working from home or remotely is something that many
people had to adapt to during the pandemic. Organizations
were pushed to make new processes to fit the needs of this
modern world. Since then, businesses are looking at the
different possibilities of working, whether it is remote or
on-site. The modern work setup relies heavily on technology
and automation.
Source: Future of Work Trends 2022 - KMC/ Marella Gimenez, February 7, 2022
Brand Loyalty is shattered

The pandemic ushered in an unprecedented level of channel
switching and brand loyalty disruption. 75% of consumers
tried new shopping behaviors, with many of them citing
convenience and value. 39% of them, mainly Gen Z and
millennials, deserted trusted brands for new ones.
2023 Travel Trends
Leaders in the travel industry predict that meaningful trips, ultra-localized
itineraries and app technology will be big in 2023
“From addressing climate action, to creating jobs and supporting businesses, right
through to fostering peace and security, and advancing gender and youth
empowerment and the digital transformation, tourism has never been more relevant
than it is in 2023. At the same time, we see tourists themselves increasingly aware
of the impact they can make and determined to travel more responsibly and
sustainably, with growing interest in tourism for rural development and tourism as a
pillar of opportunity for all.”
- Zurab Pololikashvili, secretary-general of the UN World Tourism Organization
Source: Travel trends for 2023, as predicted by industry insiders - roadbook.com

2023 Travel Trends
Meaningful travel and Travel tech for a better
Indigenous Tourism Low-Cost Destinations
ultra-localized itineraries experience

2023 Travel Trends
Meaningful travel and ultra-localized

itineraries
• Rise of conscious consumers seeking more
meaningful travel experiences
• A desire to give back to local businesses, as well as to
minimize one’s footprint and immerse in the
destination in respectful ways
• New ways to immerse in nature, but tied to
indigenous cultures
• Travelers looking to understand the way of life in
other places - back to the basics of why we travel

2023 Travel Trends
Indigenous Tourism
• One of the fastest growing trends in travel

• Post pandemic, people are looking for genuinely
sustainable and community-led experiences that
benefit both the land and its people
• Travelers seek to help in generating income and
empowering local communities - these kinds of
experiences give an amazing insight into traditional
ways of life and a better understanding of a
destination’s diverse legacy

2023 Travel Trends
Low-Cost Destinations
• In 2023, economists believe a global recession will be
inevitable - people will experience a cost of living
crisis and have less disposable income for travelling
• With increasing prices, travelers will seek out
low-cost destinations to make trips viable
• Consumers are looking to make better, more
informed decisions about their discretionary
spending (Skyscanner 2023 travel trends report) -
travelers are looking to visit places where their
currency will go further

2023 Travel Trends
Travel tech for a better experience

• 2023 will see an evolution in travel apps as demand
for travel and better user experience surges
• Frequent travelers are now confident and loyal to
online travel agencies, travel apps
• But with changing travel demand, apps can be both
empowering and complicated and time consuming
• In 2023, apps will need more seamless user
experience, particularly on mobile, and integrate
rewards and loyalty, trip itinerary, etc.

Key Implications for Marketing
TECHNOLOGY • Adopt an operating model built for speed – one with
TRENDS nimble, empowered teams with multi-disciplinary skills
who use analytics to test and make fast decisions
• Incorporate customer-centered strategies, real-time
CONSUMER
TRENDS analytics to make adjustments or stay on course
• Use analytics to drive personalization - understand
customers better, create moments that matter
TRAVEL • Act with speed to capture demand, win new
TRENDS customers, and reinforce the trust and loyalty of
existing ones
Essence of Modern Marketing
Boxing vs. Mixed Martial Arts
GLOVES ON GLOVES OFF
ABOVE THE WAIST ANYTHING GOES
COMBINATIONS AGILE & ADAPTIVE
READY READY
AIM FIRE
FIRE AIM
The Omni Channel Shopper
• Customers want what they want,
when they want it, how they want it,
and purchase anytime
• Customers want new ways to engage
with retailers, seamlessly
• Customers participate in different
channels on the path to purchase
The Consumer in the Digital Age
• The greatest effects of the digital age have not been
the mechanics of shopping but rather in the
enormous disruption to Consumer - Brand
interaction
• Consumers are less influenced by above-the-line

marketing vs. more personal forms of connection
and ‘interruptions’ on their way to the checkout
Source: Brand Activation: Implementing the Real Drivers of Sales and Profit, McKay A., Brown G. & Skalberg N. (2015).
The “Prosumer”
• Producer and consumer (of
content) at the same time
• Productive and empowered
• People become the voices of
products, impact the success or
failure of companies, products,
and brands
Source: Brand Activation: Implementing the Real Drivers of Sales and Profit, McKay A., Brown G. & Skalberg N. (2015).
The AIDA Model – A Thing of the
Past?
Purchase Funnel
• Identifies cognitive stages an individual goes
through during the buying process
• Marketers “PUSH” messages at each stage of

the funnel to influence purchase
The Marketer’s Challenge?

With so many channels and interruptions, this funnel has
blown up; consumers can filter the messages
4000
Brands/day
Brands Today…
Share Information Share stories Share the market Share relationships

Customer Decision Journey
McKinsey Model
2 6
4
Empowered Consumers
1
5
Source: McKinsey.com - the consumer decision journey

What Can Marketers Do?
Never settle, and push the envelope!
“Marketers must view the change not as a loss of power over

consumers, but as an opportunity to be in the right place at the right
time, giving them the information and support they need to make the
right decisions.”
- David Court, McKinsey Group
Source: McKinsey.com - the consumer decision journey

15 Skills & Competencies
Marketing & Communications Professionals MUST HAVE
✔ Social Media Analytics ✔ Basic Coding ✔ Video Production

✔ Keyword Research ✔ Metrics ✔ Social Advertising
✔ SEO/ SEM ✔ Google Analytics ✔ Influencer Relationships
✔ Visual Literacy – UI/UX ✔ Digital Dashboard ✔ Media Analysis
✔ Original Image Creation ✔ Report ROI ✔ Digital Media Relations
Source: Digital PR Academy

Traditional Marketing “Cheat Sheet”
Consumer Market Competitive Distribution
Marketing Mix Economics Revise
Analysis Analysis Analysis Channels
Needs and Wants Market Sizing Competitor Sales Channels 4P’s vs. 4C’s Fixed & Tweak or
Profiling Variable Costs Discard
High/ Low Product Life Direct & Indirect Product
Involvement Cycle SWOT/ TOWS Positioning/ Break Even Fluidity of
Analysis Online Selling Good-Fast-Cheap Point Plan
Market PESTEL Analysis
Segmentation Porter’s Five NPS and CLV Payback
Forces Analysis Period
Consumer Behavior Pricing Strategies
Matrix
Brand Activation
Activate the Brand
EXPERIENTIAL PROMOTIONAL
MARKETING MARKETING
DIGITAL RETAIL
MARKETING
MARKETING
RELATIONSHIP MARKETING EMPLOYEE

ENGAGEMENT
Ideas to Spur Local Travel
Modern Marketing in Action
• Engagement through Gamification

• Leveraging the Power of Influencers
Idea #1: Gamify Local Tourism
Gamification is adding game

mechanics into nongame
environments to increase
participation and engagement
• Online community
• Local government
• Business establishments
• Education / LMS
Incentivize Travel
Road Trip Planner
Earn Badges, Points to Redeem Prizes
Link to Social
Idea #2: Unleash the Power of Influencers
Wil Dasovich Bisayang Hilaw

Curated Travel
Sandy Daza
BJ Pascual
Yuka Saso
Drew Arellano
Andi Eigenmann
Ian Veneracion
Foundations for Tourism Marketing
In a Nutshell
✔ Technology, Consumer and Travel trends post pandemic are shaping the way we
need to think and act as tourism marketers
✔ A combination of both “classical” and modern marketing still the key to
succeeding in a digital, omni-channel world
✔ Consumers/ travelers are empowered – know their decision journey and how to
engage them at the right place and time
✔ Today’s marketer needs to be digital savvy, tech-enabled and data-driven –
highly adaptive to change, engaging and not afraid to “make mistakes”
Assignment
THANK YOU
Setting the Foundations for Tourism Marketing

RON CASTRO

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Setting the Foundations for

ARTIFICIAL RENEWABLE INTERNET OF

Artificial Intelligence (AI)

Internet of Things (IoT)

RISE IN CONSUMER NEXT LEVEL THE FUTURE OF BRAND LOYALTY

Rise in Consumer Spending

Redefining the Future of Work

Brand Loyalty is shattered

- Zurab Pololikashvili, secretary-general of the UN World Tourism Organization

Source: Travel trends for 2023, as predicted by industry insiders - roadbook.com

Source: Travel trends for 2023, as predicted by industry insiders - roadbook.com

Meaningful travel and ultra-localized

Source: Travel trends for 2023, as predicted by industry insiders - roadbook.com

• One of the fastest growing trends in travel

Source: Travel trends for 2023, as predicted by industry insiders - roadbook.com

Source: Travel trends for 2023, as predicted by industry insiders - roadbook.com

Travel tech for a better experience

Source: Travel trends for 2023, as predicted by industry insiders - roadbook.com

ABOVE THE WAIST ANYTHING GOES

COMBINATIONS AGILE & ADAPTIVE

• Consumers are less influenced by above-the-line

• Marketers “PUSH” messages at each stage of

The Marketer’s Challenge?

Share Information Share stories Share the market Share relationships

Source: McKinsey.com - the consumer decision journey

“Marketers must view the change not as a loss of power over

Source: McKinsey.com - the consumer decision journey

✔ Social Media Analytics ✔ Basic Coding ✔ Video Production

Source: Digital PR Academy

RELATIONSHIP MARKETING EMPLOYEE

• Engagement through Gamification

Gamification is adding game

Road Trip Planner

Earn Badges, Points to Redeem Prizes

Wil Dasovich Bisayang Hilaw

Setting the Foundations for Tourism Marketing

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