Research Oxford Scenarios as a strategic tool Challenges for the European tourism sector Presentation by Jakob Stoumann, Senior analyst Oxford Research Copenhagen Falkoner allé 20 DK-2000 Frederiksberg Tlf.: 33 69 13 69 Fax: 33 69 13 33 E-mail: office@oxfordresearch.dk Hjemmeside: www.oxfordresearch.dk Agenda - a company in the Oxford Group - 1. Background: A comprehensive sectoral analysis of the EU Hotels & restaurants sector 2. Challenges for the European tourism industry 3. Scenarios as a strategic tool 4. Summing up and recommendations Background - a company in the Oxford Group - In 2008-2009 Oxford Research carried out a comprehensive mapping and analysis of the European Hotels and restaurant sector for the European Commission. Focus was on drivers of change and emerging skills ad competencies The study was carried out simultaneous with 17 other comprehensive sector studies All studies followed the same methodology: The European Foresight Methodology. Qualitative scenario building is one of the main pillars of the EFM The studies formed part of the European Commission’s overall strategic goal to identify trends and drivers of change in the European labour market in order to enhance strategic human resource management Challenges - a company in the Oxford Group - Challenges for the European tourism industry Heightened international competition: Europe is lacking behind… Lack of qualified labour • • • Weak focus un training and up-skilling Need to up-date educational system Poor working conditions and career possibilities Sector characterised by a certain level of inertia • • Slow pace of innovation Few players take in to account new mega trends (e.g. health and climate concerns) Lack of cooperation Little strategic planning The Scenario methodology - a company in the Oxford Group - Two uncertain but very important drivers for the Hotels and restaurants sector has been identified. Scenarios describe possible developments until 2020. The general economic development: • Continued economic growth and globalisation or, • Economic recession and nationalism The development of certain consumer trends • Puritanism or, • Escapism Crossing drivers of change - a company in the Oxford Group - Economic growth and globalisation Escapism Consumption is typically driven by the ‘faster, better, bigger’ ideology. Climate problems for example are not seen as a personal responsibility´. The escapists are concerned about health and the fairness of the world but tend to escape via wellness and traditional luxury. The ongoing economic crisis is just a minor and short economic slow down. With such a positive economic development increased globalisation will follow. Puritanism Consumers will develop a more puritan and spiritual approach to consumption. The personal responsibility concerning for example health, environment, climate and fair trade is taken very serious. Saving before spending becomes more important. Economic recession and nationalism A recession will influence the society for the next 10-12 years. It will result in increased nationalism and regionalism where regions and nations turn their back to global cooperation concentrating on their own lack of resources. The four scenarios - a company in the Oxford Group - Continued economic growth and globalisation Scenario 1 Scenario 3 The Marco Polo Scenario The Body Shop Scenario Puritanism Escapism Scenario 2 Scenario 4 The Sunny Beach Scenario The Asceticism Scenario Economic recession and nationalism The Marco Polo Scenario - a company in the Oxford Group - The Marco Polo Scenario • • • • High individualisation Some specialisation possibilities Polarisation of the market High growth in both inbound and outbound tourism • Wellness and traditional luxury Escapism Economic growth and globalisation The Sunny Beach Scenario - a company in the Oxford Group - Escapism The Sunny Beach Scenario • • • • • Mass produce, economies of scale Highly price driven market Conformity Comfort – but no luxury Regionalisation of travelling Economic recession and nationalism The Body Shop Scenario - a company in the Oxford Group - Economic growth and globalisation The Body Shop Scenario • • • • • High individualisation Many specialisation possibilities Segmentation of the market Healthy lifestyle and holidays Goodness: volunteering, fair trade, organic food, etc. Puritanism The Asceticism Scenario - a company in the Oxford Group - Puritanism The Asceticism Scenario Economic recession and nationalism • Basic living – simple holidaying • ‘Close-to-home’ tourism • Experiences: healthy, sustainable and not expensive • Food: vegetarian, organic, local produce, simple Emerging Competences in the scenarios - a company in the Oxford Group - Tasks and emerging competences Main occupational function The Marco Polo Scenario General Management • Entrepreneurship • Knowledge about health, environment and climate • CSR • Knowledge about ICT • International financial management •Intercultural management Marketing The Sunny Beach Scenario The Body Shop Scenario The Asceticism Scenario • International financial management • Knowledge about ICT • Contract management • Rationalisation methods and techniques • Entrepreneurship • Project management • Multicultural management • International networking • Knowledge about ICT • Knowledge about health, environment and climate • CSR • Knowledge about health, environment and climate • CSR • Rationalisation methods and techniques • International corporate branding • Branding through ICT • Employer branding • International corporate branding • Branding through ICT • Incorporating sustainability and CSR in corporate branding • Exploring new, individualised market segments • Employer branding • Branding through ICT • Employer branding • Incorporating sustainability and CSR in branding • Branding through ICT R&D • Developing new, unique individualised hospitality experiences • Developing and applying ICT and internet solutions • Developing and applying ICT and internet solutions • Developing new individualised hospitality experiences • Developing sustainable resorts and healthy menus • Developing and applying ICT and internet solutions • Developing sustainable resorts and healthy menus Production/ service • Multi-skilling and flexibility • ICT skills: using ICT and internet solutions • Intercultural competences • Multiskilling and lexibility • ICT skills: using ICT and internet solutions • Language skills • Intercultural competences • Cooperation and team spirit • Multiskilling and flexibility • Knowledge about health, nutrition, environment and climate • ICT skills • Multi-skilling and flexibility • Knowledge about health, nutrition, environment and climate • ICT skills: using ICT and internet solutions Recommendations - a company in the Oxford Group - Europe can’t compete (only) on price – in the long run! Sunny Beach is the easy, but short sighted, way to go Instead: High end / luxury market (the ‘Marco Polos’) Niches and specialisation (the ‘Body Shoppers’ and Marco Polos) Sustainable tourism - for all (the Ascetics and the Body Shoppers) Close-to-home tourism (Ascetics) Uniqueness and value for money (all) Recommendations - a company in the Oxford Group - More strategic planning is needed! Segmentation and innovation: • • • Find your uniqueness, Which target group(s) and which niches? Invent specialised offers, services and experiences? Which competencies, resources, measures etc. will be needed? Multilevel cooperation is needed! Destination building and innovation --› Clustering and networking Upskilling and training --› Social dialogue Up-to-date education --› cooperation between industry and education - a company in the Oxford Group - Denmark Oxford Research A/S Falkoner Allé 20, 4. sal 2000 Frederiksberg C Danmark Phone: (+45) 33 69 13 69 Fax: (+45) 33 69 13 33 Norway Oxford Research AS Kjøita 42 4630 Kristiansand Norge Phone: (+47) 40 00 57 93 Sweden Oxford Research AB Box 582 201 25 Malmö Sverige Phone: (+45) 33 69 13 69 Fax: (+45) 33 69 13 33 office@oxfordresearch.dk post@oxford.no office@oxfordresearch.se www.oxfordresearch.dk www.oxford.no www.oxfordresearch.se