Future of Rural Tourism. Klaus Ehrlich General Secretary EuroGites
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1 Future of Rural Tourism Klaus Ehrlich General Secretary EuroGites
2 Klaus Ehrlich MA Economics / Business Administration Co-founder of the Andalusian Rural Tourism entrepreneur organisation RAAR EuroGîtes European Federation of Rural Tourism Member of TSG-Tourism Sustainabilty Group klaus.ehrlich@raar.es
3 What is EuroGites? European Federation of 34 representative provider organisations in Farm, Country, and Village Tourism in 27 countries of geographical Europe
4 34 organisations from 27 countries: Austria Belarus Belgium (3) Bosnia-Herzegóvina Bulgaria Croatia (2) Cyprus Czech Republic France Georgia Greece Hungary Israel Italy (2) Latvia Lithuania Luxemburg Norway Poland Portugal Romania Serbia Slovenia Slovakia Spain Switzerland (2) United Kingdom
5
6 Rural Tourism
7 What we speak about Tourism in Rural Territory Rural Tourism = any touristic activity in rural areas AgroTourism only active farm Tourist Services Gastronomy Accommodation Active Tourism Landscape Heritage Culture Events...
8 Rural Tourism Accommodation in farms and private homes in rural areas Small commercial hospitality services (< beds) Either B&B or Self-Catering units + Traditional Rural Gastronomy + Activities + External services & assets (active tourism, heritage sites, etc.)
9 History of Development Spontaneous phenomen in West and Central Europe since beginning of 20th century First organised approach: Gîtes de France (1955) Agro-Tourism: complementary income to Agriculture ( 60-70) Rural Tourism as part of development policies in rural areas ( / LEADER programmes of EU) International tourist product (2000 ->)
10 Importance of RT associated accommodation units in Europe 27 Level of association 20-25% total offer between units 5-20% Agro -tourism (working farms) < 20% rooms B&B style, > 80% self-catering 15% of accommodation capacity in Europe Trend product based on rural assets
11 Favourable for development Areas with high natural or cultural assets Environmental and landscape quality is a must Cluster of varied assets in close-by territory Easy access from urban areas Cultural / language proximity to core market Use geographic position for non-leisure demand Specific segments according to local resources
12
13
14 The client
15 Status quo Domestic market strong (> 85-90%) build on this! However, long-term high growth potential for international demand Changes of consumer behaviour due to crisis are meant to remain in the future: core services, price sensitive Individual packaging with security and quality guarantee versus All- Inclusive Virtual Trust Social Media substitute mouth-to-ear Internet shifts the power from travel trade to the client Experience Economy: tell a story
16 Romantics or Disney?
17 What really matters Needs Promise of Service Expectations Experience Excess or lack of compliance Satisfaction Deception
18 Which are the important factors? Satisfaction Deception
19 Which are important factors? Satisfaction Personal treat Equipment level Ambience / style Clean Meals / food Surroundings Decoration Price-quality Activities offered Deception Personal treat False information Equipment Bad management Clean Meals / food Too little information Activities badly managed Ambience Price-quality
20 Criteria in Accommodation Services Management Wrong or false information Activities Previous information Price-Quality relation Decoration Situation - surrounding Meals Cleanliness Ambience / style Equipment Personal treat SATISFACTION DECEPTION
21 Criteria for Destinations Communication / access Services available Gastronomy Closer surroundings Thing to do and to see General scenery SATISFACTION DECEPTION
22 Factors for success Evaluation of EuroGites cuatrimestral surveys Positive Holiday product Recognized destination Clear-cut image and brand Proactive promotion Extra-regional markets Good Price-Quality relation Segmentation / spezialisation Effective commercial channels Negative (only) Weekend or short-break Only generic rural image Atomized individual promotion Lack of reliable standards Unflexible pricing Isolated services without bounding to territory Individual sales
23
24 Cooperation is better!
25 Rural Tourism and EU
26 Rural Tourism and EU Until the Lisbon treaty, rural tourism was not directly supported by EU due to lack of competence. However, it benefitted considerably from the Common Agriculture Policy (CAP) since beginning 1962 AgroTourism (diversification of farm activities) Integral part of wider Rural Development (since 1990), with strong financial support for the creation of new installations especially in EU +12 indirectly, Regional Development and Cohesion policies other policies and programs (Lifelong Learning, ESF, LIFE, )
27 Rural Tourism and EU -2 European Tourism Policy Consequence of the Lisbon Treaty (art. 195) Implementation plan of 21 actions for period European Tourism Quality label Specific support to transnational activities and products ( Thematic tourisms ) Promotion of transnational products via ETC Streamlining of tourism into other EU policies (Rural Development, Vocational training, Regional Development and Cohesion, ESF, )
28 Rural Tourism and EU -3 Planning and Budget Period New structure of CAP unified access to all EU funds related with Rural Development ( Strategic Framework = EAFRD + Cohesion + ESF + Regio + ) Possible beneficiaries: regional, national, and transnational structures (depending on program and level of implementation) Consolidation of a European Tourism Policy Preferential beneficiaries: transnational structures
29
30 The future of Rural Tourism?
31 New paradigms Accommodation is the complement to a broader product based on nature, culture, and physical assets Traditional market segments disappear, new segments need to be addressed Generation change where do young people go? who will take over the business? Combine Heidi image with Disney professionality
32 Two sides of the same coin
33 Relevant for Rural Tourism The client buys dreams, not just a room Value orientation = price-quality-relation The experience or activity comes first, place on the globe is second Many niche products: specialize on strong assets Internet is the most important source of information, evaluation and contribution from other travellers is important Visibility is essential - and easy for niche products through SEO Authenticity of the holiday (!) experience Competition is world-wide
34 Challenges Seasonality (local demand, climate, assets, ) Streamline the product to real demand Who are the customers and what do they want? Local integration of various services into one product Inadequate regulation environment (pools, meals, ) Communicate the importance of Rural Tourism for rural economy and European society as a whole
35 Strategies Satisfaction and visibility depend on the whole DESTINATION -- individual services are invisible from distance Clear image based on real (!) USP Reliable Quality less is more Holistic approach: Accommodation is a complement, NOT (usually) the product Be sustainable and COMMUNICATE it! Anticipate mainstream aspects (demographic and value changes, ) Hear the grass grow know your client before he knows you Innovation in ICT and special segments Improve qualification -> training
36 A vision for 2020? Integrated, sustainable valorization of all rural assets Market share extended to >15% of vacational overnights Maintaining lively rural communities with fair income Consumer-based quality and product development Clear visibility through strong brand(s) and standards E-community driven, tailor-made holiday experiences Dynamic real-time packaging and booking through mobile devices
37 XBAЛA / Hvala! for your attention
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