The Scary Five. Scenarios for the Hospitality Industry

In 2013, Larry Mogelonsky published a thought-provoking future scenario of Hotels in 2023 as being totally dominated by Online Travel Agencies: the scenario depicts a situation in which a hotel general manager is fired by the OTA, along with his entire hotel, for insufficient market performance.

This could in fact be the outcome of a current power struggle in the hospitality market. But what else could happen if we look at a further evolution of the internet? Especially the role of the big media houses --Google, Amazon, Facebook, Youtube, Ebay--, which in view of their marketing power are already being referred to as the Scary Five?

This article (in Dutch) describes a scenario study currently being conducted about these developments. Drivers that have been identified are: net neutrality, the neutrality of search algorithms and the business model behind these companies acting as travel intermediaries.

Jeroen Oskam & Tjeerd Zandberg, "On-guest entertainment en de Scary Five. Toekomstscenario's voor de hotelindustrie". Hospitality Management 6 (december 2014), pp. 44-47.

A new state in Europe? Scenarios for Catalan self-determination

Historically, the political structure of Spain has been a source of conflict: peripheral regions as Catalonia and the Basque country have questioned the centralized power of the state and have claimed a higher level of decentralization in view of their distinct history, cultural identity and language. Recently, political and social discontent has escalated in Catalonia, leading to the unilateral announcement of a Catalan self-determination referendum for November 2014. Regardless of political or ethical preferences, it will be necessary to foresee the consequences of this process for Catalonia, Spain and elsewhere. A scenario approach focuses on possible outcomes of the current debate rather than on the arguments put forward in the controversy. Those in favour of Catalan independence have depicted a future for their country with a booming economy that will situate it at currently unattainable levels of prosperity. Opponents of secession argue that Catalonia will become a failed state. These future visions of an independent Catalonia can be described as scenarios, the underlying assumptions and plausibility of which can be analysed. EU membership and the effect of borders on international trade are identified as key variables. The alternative scenarios will also be crucial to evaluate the broader impact of “a new state in Europe”.

Article published in Futures, Volume 64, December 2014, Pages 51–60.
doi:10.1016/j.futures.2014.10.008.

Link: http://www.sciencedirect.com/science/article/pii/S0016328714001694.

The Waddendijk as a "Leisure Landscape"

Does the northern Wadden coast, currently mostly a transit area for tourists on their way to the islands, have the potential for tourist and leisure development? The characteristics of a rural area bordering the World Heritage Wadden Sea would suggest that it does, but the challenge is to combine the attractiveness of a tourist area with the strict requirements of coastal protection.


Waddendijk Think Tank
In 2013 ETFI took the initiative of creating a 'Waddendijk think tank' with regional stakeholders representing the housing corporations, coastal protection, architecture, cultural festivals and tourist development. The conclusion was that any future development should respect not only coastal safety, but also the natural and cultural specifics of the area. Two ideas became key in the work of this think tank: the concept of Building with Nature, which seeks to integrate natural processes into the coastal protection system, and the idea of a Cultural Route with landscape art, leading to a kind of permanent Oerol festival on the continental shore. The Estuaire project in Nantes (France) would be a good example of a similar development.

Tourist experiences in 2050?

At the Future Forum Napoli (October 21-28 2014) I was invited to speak about future tourist experiences. I linked their development to the three drivers for the future of tourism identified by Ian Yeoman: the global distribution of wealth, the availability of resources and technology. For the characteristics of our 'experiences', I am following four developments with interest:

1. Commoditization or 'de-experiencing' as a result of declining wealth;
2. The way resources scarcity will affect the offer of 'experiences';
3. Tourist pressure on big cities;
4. The role mediahouses as Google may play in tourism marketing and distribution in the future. Will the internet be a neutral or a mediated platform? (See also my observations on Social media in 2030).

Why did we go to war?

One hundred years later, we are still discussing what caused the First World War, and who is to blame. What we should have learned is that while isolated incidents and the reaction to these in itself may have seemed rational and understandable, the sum of these incidents became a catastrophic leap into death and destruction. With this hindsight we could have avoided a similar chain of events one century later.

In the escalation of tensions in Ukraine, we have seen the following critical incidents:

1. Interference in domestic affairs
If Ukraine was a sovereign state, an intervention in its internal affairs could only have been justified in the case of severe violations of human rights. But what was under discussion were the country's international relations. The EU support for protests against an elected president was a casus belli - not for Russia but for Ukraine.

The next 10 years. Trends and scenarios.

(Published in: Hotel Yearbook 2014)

Watching trends
How will the hospitality business evolve in the next 10 years? Businesses are hungry for information that helps them identify business opportunities and risks in advance. Trendwatchers address this need by watching their crystal balls for the latest updates on consumer likes and behaviour. However, these trends are hardly reliable for long-term strategic planning. They are too volatile and often caused by “self-inflicted” innovation.

Somehow, predicting a trend is like deciding what to have for dinner. When such a “trend” is detected, we decide to influence the near future. If a fashion designer states that “next year, red shoes are hot”, this is not an analysis but a directive statement. In other words, “trends” are commercial propositions rather than insight into the future.

This makes trends capricious and unpredictable by nature in the long run. Besides, were trends a trend themselves? In years without growth, more prudent consumers may slow down their trendiness. Yet, our businesses still face drastic changes we have to analyse and anticipate.

A Big Data Police State?

If you look at the long term future of social media, I do not believe that privacy is the main concern. It is of course not the best place to share those things you would not want to be public. But the larger part of 'posts' will be hardly compromising for its users.
That is, if taken separately. The long term trend in social media appears to be building search algorithms that can make sense of all these posts, and attach a meaning behind them to individual users. As Facebook developer Rasmussen explains in a BBC-interview about the value of newsfeed posts:

"It's by far our biggest data source. The engineering challenge of building a search index that can manage that volume of data is big. We're well underway to making the system scale that far - we just aren't there yet."
It means a friend searching for "Friends who like football" could identify you if you had once written something like "Come on United!" in your feed.
[...]
"There are really interesting techniques around sentiment analysis," Mr Rasmussen says, "where people try to take text and figure out whether it's someone saying they like something or don't like something.
(See: BBC News - Technology, "Lars Rasmussen: the brains behind Facebook's future")

 A few months ago, when we started an ETFI-project on the future of social media, I spoke of a scenario in which both industries and governments would adopt a more repressive attitude. The fact that social media as Twitter have created temporary openings of free speech in totalitarian countries is a matter of technical unpreparedness rather than a feature which is inherent to the new media. On the contrary: indepth indexing of newsfeed posts will be an unprecedentedly powerful tool for repressive organisations.

Trendwatching: my 2013 predictions

Just as others, I failed dramatically in my 2012 predictions. After visiting the Horecava Food Fair, I foresaw that ice cream would become hot, as well as the break through of the culinary bitter ball. This time I will stay on the safe side and just look at the non culinary world:

1. The Syrian civil war will affect the stability of Iran.
2. The U.S. successfully increases its energy production. All else remaining equal, prices will grow moderately. Geostrategical disruptions of energy supply though will lead to a further price hike.
3. Painful sacrifices of purchasing power, in combination with a still deepening recession, lead to rising tensions and social violence in Southern Europe. This will strengthen the traditional left and drive the right to the far right. 
4. Also elsewhere, austerity measures will lead back into recession. Bad times for consensus politics. In the Netherlands, the Conservative-Labour coalition will not make it to the end of the year.
5. The prestige and credibility of monarchies will crumble. In Europe, we may see one disappear. It is a logical result of growing transparency.
6. Coursera will affect universities as Napster has changed the music industry. Eventually we will all be able to learn from eminent scientists. Being in an actual class room will be like being dragged on to the stage to dance with Bruce Springsteen.
7. If electronic warfare has become fully effective, we may also see the digital equivalent of the Great Train Robbery.
8. There will be no Elfstedentocht ice skating tour. Not because of the whether; there would simply be too many people for the (up to now) required 15 cms. of ice.
9. Those who have high expectations of 2013 will be disappointed.
10. Barcelona will win whatever there is to win. At least got that one right.

The future of social media

Last October 31, ETFI professor of Scenario Planning Albert Postma painted scenarions for the long-term future of social media at IPK's World Travel Monitor^® Forum 2012 in Pisa. His presentation included the opinions or visions of several international colleagues, including my own. I see two important trends. In the first place, a growing gap between different types of news consumers, with some able to access far more sources of news than would have been thinkable in the past, and others, overwhelmed by the vast offer of news, limiting themselves to 'low-cost' news (or fun, bizarre etc. news; see "In a bizarre world ...").
A second trend is growing pressure on the freedom of expression the internet in general, and social media specifically, have generated, both from commercial parties (especially the entertainment industry) and from political power.

For the other opinions, see ETFI's Youtube channel at http://www.youtube.com/stendenetfi.

Incoming Tourism

Interview about an ETFI-research project on possibilities for incoming tourism in the north of the Netherlands:

“Fryslan needs to anticipate shifts in consumer behaviour .“ Frisian tourism entrepreneurs should be prepared for Spanish tourists, watersport companies need to offer a variety of products and the world heritage site the Waddensea must have a visitor centre.
All these recommendations are the outcomes of a scenario research towards trends in the field of tourism within the next five years. According to Oskam, entrepreneurs should be aware of shifts in consumer behaviour. This will allow entrepreneurs to anticipate trends.
More articles on the scenario reasearch can be found here.


See also: blog.etfi.eu

What is scenario planning?

Explanatory video on scenario planning (in Dutch, English subtitles).

Future Scenarios for Spanish Tourism: Discussion and Wild Cards

At a recent conference on scenario planning for the tourist sector in Spain, I presented the following Key Uncertainties and Wild Cards:

	1. Empty stores are hardly an uncertainty anymore in cities in Northern Europe. Changing comsumer behaviour, combined with the current crisis, will undoubtedly have an impact on inner cities in Southern Europe and on their attractiveness to visitors.
	2. Climate changes may affect tourism to Southern Spain, especially water-intensive tourism (such as golf tourism). Water distribution may even become a source of increasing regional and violent conflict.
	3. A Euro-crisis will have an enormous impact on price sensitive mass tourism, as we find thoughout the Mediterranean. If a country were to abandon the Euro-zone, and would (re-) introduce its own currency, beach tourism would immediately start to flow to the lowest point. (Image: Post in German Bild Zeitung, TUI is already calculating in Drachmae).
	4. The Arab Spring was a protest generated by rising food prices, at least as much as an expression of the desire for freedom and civil rights. It is therefore not hard to imagine that the 'Arab Spring' may spread to (European) countries with a population facing similar problems. Greece? (Image: Fast Company, Let Them Eat … What? High Food Commodity Prices Could Cause A Global Revolution).
	5. Population Decline apparently has ceased to be just a steady (albeit dramatic) change in birth rates, and may be turning into a desastrous, crisis-driven exodus. Ironically, some superficial populism welcomes emigration as an answer to mass unemployment, whereas in fact mass emigration is a phenomenon indicating a steeper crisis curve. (Image: El País, 580.000 People are leaving Spain. Note: This is the size of the entire population of Málaga).
	6. Youth depending on Parents: this is actually a chicken-and-egg phenomenon. In the poorer south of Europe people have traditionally been obliged to live with their parents during their studies and early professional career, for economic reasons. The paradoxical consequence of this tradition is that young adults in the North learn to cope with adverse financial conditions, whereas their southern counterparts may postpone their autonomy until they are able to live under the same standards as before. Thus, they may have developed weaker defense mechanisms for times of crisis. (Image: blogpost Mummies’ boys – the number 1 variable for predicting Eurozone sovereign stress?!, M and G Investments).
	7. Gastronomy becomes unfashionable: This is a more specific, profession-related wild card. In recent decades, many businesses but also many educational institutes have focused heavily on high-end gastronomy, not necessarily a traditional phenomenon in Spain. It may well be that this "Gastronomy as Art" has been closely related to the years of (EU- and speculation-fed) opulence, and that it may therefore again be on the decline. Not that people will stop enjoying food; but they may no longer be interested in self-actualization through cooking.

Conference: Escenarios de futuro para el turismo, Centro Superior de Hostelería de Galicia, November 12, 2011.

Where is the trip going? (Wohin geht die Reise?)

"On May 17th 2011 Jeroen Oskam and Gaby Seemann were invited by the project group 'Netzwerk Toekomst' to take a glimpse into the future. Oskam not just highlighted the importance of being prepared for the future but elaborated why the ETFI rather works with uncertain factors and scenario planning than with common forecasts. Ongoing developments such as a decline in out of home expenditure and increase in investments in energy and living rather than food and tourism shape tomorrow's tourism. A decrease in income and increasing costs for tourism due to higher energy costs will change the tourism pattern. Moreover, in house gaming and online communities such as Facebook and Twitter make the current and future generation of children rather stay inside and not meet or play outside which will drastically change their way of travelling and leisure behaviour in the future."

From the Ems-Dollard Regio Magazine:

Open publication - Free publishing - More etfi

International Tourism Futures Conference

Panel discussion: the Future of Tourism and the Future of Tourism Education

From November 2-5, 2011, the European Tourism Futures Institute organized the 'Tourism Futures' conference at Stenden University, as a meeting for international futurologists, tourism researchers and professionals with the objective to find and discuss answers to the situations tourism will face in the next decades. Conference topics were the hotel of the future, creative cities/city-sumers, slow marketing and the global shift of political power. As keynotes the programme featured Márcio Favilla, as Director of Competitiveness at UNWTO and dr. Katharina Grünberg, from the scenario team at Shell, about their organisations’ tourism future study and scenario studies in general, respectively. Ari Björkqvist presented Haaga-Helia’s project on the future of hotels and conference centers, while Ian Yeoman looked at the hotel of the future from the perspective of the future of sleep.

The international conference was combined with the regionally oriented Fryske Toerisme Kongresdei.

Conference website: http://www.etfi.eu/conference.
Conference presentations can be downloaded from http://www.etfi.eu/conference/programme .

Future or Futures?

(Opening of the Academic Year 2011-12)



Today I have been asked to give an extremely short presentation about the European Tourism Futures Institute. I believe that time will be sufficient to concentrate only on one single letter in the name of the institute: that will be the S that turns future into a plural futures.
When this name was first launched, we were asked whether this was a mistake: can you speak of multiple futures, while everyone knows there is just one future? This is a deliberate choice of our institute, that is crucial for our research strategy.

Leeuwarden in search of tomorrow's tourist

Newspaper article (Leeuwarder Courant, April 28, 2011) on a workshop organized by Stenden's European Tourism Futures Institute and delivered by dr. Ian Yeoman, at the local City Hall: