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Big Business IS Getting the Message “ population growth, exploitation of natural resources, climate change and other factors are putting the world on a development trajectory that is not sustainable…if we fail to alter our patterns of production and consumption, things will begin to go badly wrong” 7
Costs and Risk to Increase “ The resources on which businesses rely will become more difficult to access and more costly. There will be an increasing strain on infrastructure and natural systems as patterns of economic growth and wealth change. Physical assets and supply chains will be affected by the unpredictable results of a warming world. And business will be confronted with an ever more complex web of legislation and fiscal instruments.” 8
Seeing Opportunities Also“ the bold, the visionary and the innovative recognise that what is good for people and the planet will also be good for the long-term bottom line and shareholder value… competitive advantage can be carved out of emerging risk.” 9
Big Business is Concerned About these Issues 1. Climate Change 6. Urbanization 2. Energy and Fuel 7. Disparate 3. Material resource prosperity Scarcity 8. Food security 4. Water Scarcity 9. Ecosystem Decline 5. Population & Consumption 10. Deforestation growth 10
But Australians Apparently are Not! Australians are effectively indifferent to global and societal issues Australians have put aside the the environment in favour of Food, health, crime, safety and rights to basic public services - “tangible things people confront on a daily basis”What Matters to Australians, produced by the University of Technology, Sydney and the Melbourne Business School 11
If this story came true What are the implications?And IF Plan A is unattractive, where’s Plan B?
What’s Enabling an Alternative?MassIndustrialised Tourism An Alternative Model?Impulse, Frequent, “a right”Comfort & ConvenienceThe Packaged ProductPRICE the decision factorVOLUME GROWTH IMPERATIVEAbundance of Choice butSamenessPrice TransparencyCommodificationAutomationDiminishing MarginsVolatilityCustomers as TargetsLimited ResponsibilitySUCCESS = VOLUME OFVISITORS
When Values Change, Everything Changes “ Consumer and investor values are changing. And as they change more corporations are recognizing that there is profit and opportunity in a broader sense of responsibility beyond the next quarter’s results” 22
ACUMULATING SIGNS Cultural Creatives LOHAS Eco-tourism Responsible Tourism Sustainable Tourism Geo Tourism Fair Trade Tourism Philanthropic Travel Local Travel Movement Indigenous Tourism Educational / Scientific Tourism Health & Wellness/Spa Tourism
RECESSION AS PUNCTUATION POINT Don TapscottRECESSION AS CHANGE ACCELERATOR Anna Pollock
1950s – 1990s 1990s - 2007 After 2008Source: The Darwinian Gale, The Futures Company 2010 28
New Consumers still want MORE, but they are defining that differently. Not more shiny trifles and mountains of consumer goods but, rather, more meaning, more deeply felt connections, more substance and a greater sense of purpose.•72% say they are trying to improve the way they live•71% are trying to improve who they are as individuals•59% worry that society has grown too disconnectedfrom the natural world•51% would like to be part of some important cause•67% believe most people would be better off if they livedmore simply•69% claim to be smarter shoppers than they were a fewyears ago•64% say that making environmentally friendly choicesmakes them feel good about themselves.
The Conscious •Youthful, wired, highly educated, majority femaleConsumer •Three times more likely to try new things •Three times more likely to reward or punish a brand based on corporate practice •Dedicated “box turner” but doesn’t trust corporate declaration •Even in the recession, the majority believe it important to make choices based on environmental and social benefits •More than half are willing to pay more for sustainable brands Asks “what’s in it for we?” Active co-creators of products and experiencesThe Conscious Consumer Report, 2009, BBMG
DOING GOOD IS GOOD FOR BUSINESS •66% of consumers would prefer to buy products from companies that give back to society •62% would prefer to work for such companies •59% would prefer to invest in such companies •46% would be willing to pay extra for products and services from these companies 35
Why Attract, Engage & Support the Conscious Traveller? If you get it right, they’ll ..1. Reward you with higher yields2. Help market your destination, or company3. Favour responsible suppliers, encourage “best practice,”4. Reduce costs (energy, waste, turnover, employee engagement)5. Help ensure you stay ahead of demand6. Reduce the volatility7. Generate more net benefit to local economies8. Help protect & rejuvenate ecosystems and culture & retain bio & cultural diversity
Conscious Travellers are Wired to CARE “Purpose is the new passionParticipation in the new consumption” BBMG
1. Local, Authentic, Quirky2. Personal &Customised3. Experiential and Immersive4. Slow, Sensual & to be Savoured5. Transformational – Change Me6. Let me share7. Show me you care – responsible providers8. Let me show I care
Support Their Causes Let ThemParticipate and Co-Create
1. Local, Authentic, Quirky2. Personal &Customised3. Experiential and Immersive4. Slow, Sensual & to be Savoured5. Transformational – Change Me6. Let me share7. Show me you care – responsible providers8. Let me show I care9. Use “kindred spirit” intermediaries
1. Local, Authentic, Quirky2. Personal &Customised3. Experiential and Immersive4. Slow, Sensual & to be Savoured5. Transformational – Change Me6. Let me share7. Show me you care – responsible providers8. Let me show I care9. Use “kindred spirit” intermediaries10.Will become your advocate
How do we create an alternative?MassIndustrialised Tourism Conscious TravelImpulse, Frequent, “a right” Considered, cautiousComfort & Convenience Seeking VALUE & meaningThe Packaged Product PLACE Specific Experiences Not ProductsPRICE a key decision factor VALUES the key factorVOLUME VALUE& YIELDAbundance of Choice Uniqueness= scarcityPrice Transparency Price TransparencyCommodification Comparisons difficult because…Standardization Local sourcing, hand madeSameness DiversityAutomation PersonalCustomers as Targets Customers are Co-creative PartnersNo Frills or No Surprises Full of spontaneity, unexpected delightPUSH marketing Promise of an Experience that PULLSSUCCESS = VOLUME OF SUCCESS = NET BENEFIT TO HOSTVISITORS COMMUNITY, RESILIENCE,
How do we create an alternative?INDUSTRIAL CONSCIOUSDMO HOSTTOP DOWN – PLANS & POLICIES BOTTOM-UPCHECKLISTS COMMUNITY LEARNING BY DOINGPRODUCT PLACECOMPETITION COLLABORATIONOUTSIDE IN INSIDE OUTPUSH PULL
The Conscious Travel Program CONSCIOUS TRAVEL CONSCIOUS HOST CHANGE AGENCY SOCIAL MARKETING EXPERIENCE DESIGN PLACE IDEAL EMPLOYEES & SUPPLIERS YOUR IDEAL CUSTOMER CULTURE & BRAND VALUES & PURPOSE CONTEXT MINDSET
Be Inspired!Anna Pollockwww.conscioustourism.wordpress.comwww.slideshare.net/AnnaPEmail: email@example.com