THR's opinion

Eulogio Bordas: An artillery of promotions will break seasonality

THR's president, Eulogio Bordas, proposes an ambitious national plan. About 40% of the Spanish hotel industry has been closed during the winter 2012-2013, as estimated by the CEHAT, representing a record high due to aggravated tourist seasonality.

Managers destinations, hoteliers, tour operators and airlines agree on the need to "work together" to lengthen the season in the beach destinations. But how to achieve this cooperation? Eulogio Bordas, president of consulting firm THR, proposed an ambitious plan with measurable objectives and which require a year and a half planning.
As says the cover story of the magazine Hosteltur on April, destinations ni-ni (no flights or hotels open from fall to spring), hotel closures have become critical at the Baleares, Catalonia, Valencia and Costa del Sol.

For example, the Costa del Sol hotel closed figure reaches 35% of the hotels, while last year was about 30%. While in Mallorca closures earn 66% of the total hotel on the island, being the highest in many years.
At the province of Alicante closures affecting 23.7% of the total hotel (well below the national average of 40%) but still represent a 10% increase in two years.

A measurable plan

Eulogio Bordas, president of consulting firm THR, warns: " for the past 40 years the industry has been talking about how to break the seasonal and I always hear topics. At best, it is said that it is necessary to develop products for the offseason. But so far I have not heard coherent projects, to set measurable goals".

Therefore, the expert remarked, "it would be necessary to set an important number, of how many tourists want to come to Spain in low season. And from there, establish a plan that can take up to a year and a half of planning, it will be necessary to call numerous companies, close deals with tour operators and airlines, etc".

From international market studies in which THR has participated, this consulting firm estimated that in Europe there is a potential market of 50 million people "who have time and resources to travel to Spain in low season." So the question is: why do all these people do not come?

Three barriers

"It is the addition of several factors or barriers," said Eulogio Bordas. First, there is a "problem of Spain positioning, which is widely perceived as a destination of great weather, sun, fun and a bit of culture. But all this happens in the summer".

According to THR president, "Today there is not an automatic association that Spain is a destination for all seasons. But marketing know how to fix this, changing the perception, within two to three years. Therapy to be applied is very clear, but it would require a financial investment, of course, to display artillery of advertising to change that perception".

Another obstacle to overcome is that those 50 million potential tourists would have to vary their travel routine, because it is people used to take their holidays in summer.

"Also here are some marketing tools to break those routines and are called sales promotion, not advertising. So, if you break your routine, I have a prize for you. A benefit that may take form of an attractive price, free tickets, upgrading programs, 2x3, loyalty benefits, etc.. In conclusion, you need a promotional artillery to break routines" said Eulogio Bordas.

But still there is a third barrier: "It should be really easy, but it\'s not, go on holiday season from Europe to numerous destinations on the Spanish coast. Direct flights are missing."

Objective: two million tourists

Therefore, Eulogio Bordas believes that "Spain should fix an ambitious but feasible objective, for example, receive two million tourists more than we now receive off-season. Always referring to coastal destinations."

How to bring two million tourists? Piece by piece. The plan would have to target three or four segments and each custom designed.

The segmentation may respond to different travel motivations: relax in a destination not crowded, sports or activities, socialization, etc…

Then they should divide those two million tourists in five or six sites that have their own airport.

"We will not be solving the problem of seasonality for the entire Spanish tourist industry, but the 80%," the president of THR.

Which destinations we should target? Those who commit to be open a minimum of its offer, it would be necessary to set rates for restaurants and shops, and hotel rooms, and develop a program of events.

"Of the five or six Spanish airports, would choose between 15 and 20 destinations in its area of ​​influence, establishing a pact to have a minimum tourist offer open, with entertainment provided."

Negotiate airline seats and frequencies with insurance

Moreover, according to the plan proposed by Eulogio Bordas, those two million tourists come from a dozen airports, for different metropolitan areas in Europe. The plan would have to set how many tourists can be picked from each region.

"This requires developing a complex plan for airline seats and certain frequencies per week. So there should be a mega- negotiation, which includes free Aena rates at airports, or ability to refuel without paying taxes."

To finish convince tour operators, Eulogio Bordas proposes that the Spanish Government established an agreement with a group of insurance companies that would cover any loss on aircraft low occupancy, below a certain percentage.

Such insurance would have to be funded by the Spanish tourist destinations and companies that participate in the plan. "All have to take part of the bid: hotels, theme parks, restaurants, municipalities, autonomous regions ... Could also be considered a fee that the tourist would pay, collected for example through Aena".

Loyalty program

Tourists who come could also benefit from a loyalty program, which allowed them to accumulate points and enjoy the benefits next year, at another Spanish destination if they wanted.

How to execute a plan of this magnitude? Eulogio Bordas proposes to create a corporation owned by the different administrations and private companies, "with a sales team of 30 people very aggressive and a board of directors with independent directors. And for a year, they should have 50% of the advertising budget of Turespaña ".

Private management plan

Summarizing, concludes Eulogio Bordas, there is a potential market, but you need a plan to create "an attractive and easy to buy."

"The problem is that Spain never organized to deploy and manage the project professionally privately. Maybe it\'s the inability to think big, to come together and observe discipline marked by a national plan ".

Eulogio Bordas’ ideas are included in April’s cover story of HOSTELTUR.

Source: Hosteltur