Literature review
In this section of this dissertation the author will discuss various elements that were deemed paramount to the understanding how an individuals is influenced during the travel planning process, by looking at the roles and activities of the destination management organisation, the perceived image of the destination and the effects of Word of mouth and electronic word of mouth recommendations.
Initially the author will define tourism and why exactly people travel. Then following on from this the author will describe the process involved in deciding on holiday destination, how the process unfolds and the difficulties faced by individuals during the process, hence their need for the opinions and recommendations of others.
After the analysis of this process the area of the destination itself and its image will be discussed by the author. The roles and activities of the Destination management organisation and the importance of destination image in regards to attracting potential tourists as well as exceeding visitor expectations leading to new and repeat visitors will be highlighted by incorporating various literature regarding this subjects.
Subsequent to this, the author will then explore the various literature surrounding
The concept of word of mouth communication and the impact of word of mouth recommendations on the decision making process of individuals. To achieve this the author will examine what exactly word of mouth communication is, how impactful it is and how trustworthy it is deemed by individuals in pursuit of finding their ideal holiday destination. Following this the concept of word of mouth will be explored in terms of its expansion to online mediums in the form of electronic word of mouth. This will involve looking and how the internet has allowed for the exchange of information between individuals, in the form of online reviews, social media post and so on following the developments of the internet from the 1990s to the current day.
2.1 General tourism overview
The tourism industry has been proven to be one of the biggest in the world and a major stimulus for economic growth. Currently the tourism industry contributes to ten percent of the Global domestic profit (GDP). Moreover some regions of the globe recognise tourism as their biggest revenue source for their country (Negrusa et al., 2017). Data recorded by the UNWTO shows that in 2017 international tourist arrivals reached the highest levels in 7 years at 1,322 million. This is a seven percent increase compared to 2016. This level of growth is expected to continue into 2018 with a growth of 5% over 2017 being expected (Media.unwto.org, 2019)
According to the UNWTO tourism can be defined as the “activities of a person defined as a visitor” these visitors and individuals partake in activities outside of his or her own country of residence for a period of no more than a year for various reasons such as business, leisure and health (Media.unwto.org, 2019). According to failte Ireland visitors who travel to a destination outside of where they reside can be segmented into three different groups.
1. Visitors – usually travel to a destination for just under a year usually for employment purposes.
2. Tourist – A visitor whose trip includes an overnight stay
3. Holiday maker – A tourist whose main reason for travelling is for leisure/recreation
(Failteireland.ie, 2019)
There are also many reasons in why people travel. People may have the need to travel for business, to see friends and family who live on the other side of the world, to explore different cities and see beautiful scenery or to emerge themselves in a different culture (Efriend.jp, 2019). While the reasons may vary, most if not all individuals will have to go through a stage of planning and deciding where exactly it is the want to go. This process, which will be covered in the next section of the literature, allows individuals to narrow down and eliminate destination they would not visit in the hopes of coming to a conclusion or in this case picking a destination that meets their requirements. This process however is not one to be approached haphazardly and requires extensive research and opinions of other to influence and guide the individual’s decision.
2.2 The process of choosing a holiday destination
Before discussing the elements that effects an individual’s decision, the process involved in making this decision must first be made clear. The main aim of this process is to allow individuals to follow a sequential set of steps that will lead them to making a final decision on where it is they want to go. This sequential process of making a final decision on a holiday destination is known as the travel planning process. This process occurs on a sequential basis which means that the first step must be completed to move onto the next one. The diagram below shows a basic example of this sequential progression of five steps that an individual will go through in the decision making process. (Coccossis, & Constantoglou ,2006).
(Huan and Beaman, 2004) states that this sequential process allows individuals to narrow down and eliminate alternative products in the initial steps and to reach a final decision on where it is they want to go. Moreover (Decrop, 1999) stated that individuals, when choosing a holiday destination, acts rationally and evaluates all options hence they find great benefit in this sequential process as it allows them to choose the most promising alternative out of all the potential choices for a holiday destination.
Overall this process is essential for an individual to carry out as travel related decisions and purchases can be complex and costly thus requiring a large amount of research (sirakaya and woodside, 2005).
As for most individuals who are in the process of choosing a holiday destination the process can be accompanied by high levels of uncertainty. This is due to the fact that one of the main characteristics of a holiday is that it is intangible (Nielson, 1970). In the next section the challenges of choosing a holiday destination will be discussed and in turn highlighting the need for the travel planning process but also the need for the recommendations and opinions of others.
2.2.1 The difficulties of choosing a holiday destination
One of the difficulties of choosing a holiday destination is related to the complexities of buying something that is said to be intangible. Purchasing a holiday package or choosing a destination is-a-kin to the choosing of specific service. Due to the nature of services and their unique characteristic of being intangible and inseparable it makes it difficult for the end user or consumer to evaluate the product as no prior test can be conducted (Zeithaml, 1988). Unlike services, tangible products are high in search qualities. These are qualities that can be assessed prior to purchase such as an items colour, feel, function & and even its smell (Ford et al, 1988). These qualities combined effect the consumers perception of the product before purchasing allowing them to be more sure of their purchasing decision. The same cannot be said for services on the other hand. Services are high in experience qualities. Experience qualities relate to services whereby their attributes cannot be gauged until during or after the service experience (Ford et al, 1988). With this knowledge it is obvious that the travel planning process is beneficial to individuals. Although the process does not rid the individual entirely of uncertainty, it does enable them to make a clearer decision as they can follow the steps of the process and narrow down the potential options until they are left with one. However the process is becoming easier due to the developments of the interment over time and the abundance of online reviews, recommendations and opinions.
2.2.2 How the process is becoming easier
As discussed above the planning process is hindered by the fact holiday related purchases are intangible therefore requiring vast amounts of information to make an informed decision (sirakaya and woodside, 2005). However the process of choosing a holiday destination is being made easier each day by the developments of the internet. This growth in the internet has allowed for the creation and sharing of vast amounts of personal content and experiences. The explosive rate at which this content came about is due to the dramatic changes in the internet from what was once a static platform to a now dynamic platform allowing bi-directional communication (Aghaei, 2012). This change allowed users all over the world to post their own content on various sites. In relation to holiday destination this change in the internet has allowed for reviews and opinions to be shared in relation to destinations, hotels and travel related services (Sigala, 2010) this new form of information has been titled Electronic word of mouth as it is concerned with offering recommendation in relation to various products and services . Failte Ireland’s report titled “Tourism facts 2017” indicates just how influential the internet is becoming in relation to travel based research and recommendations. The report highlights that that of those surveyed seventy four percent (74%) of people said they used the internet in the planning stages of the trip, while 49% said the used the internet to aid them in choosing Ireland as their holiday destination. (Failteireland.ie, 2018)
As this graph indicates the internet is extremely influential in both the planning and the eventual choosing of a holiday destination. Although the internet allows for the sharing recommendations of individuals from all over the world (Electronic word of mouth recommendations) there is still a lot to be said for the effects of traditional word of mouth recommendations of family and friend as also indicated by the above failte Ireland survey. As well as this an exploration of what a destination does to draw in potential tourists also needs to be understood. To do this the roles of the organisation or body that promotes itself as a potential holiday destination in the eyes of the potential tourist needs to be discussed and furthermore how a destination image created by these destination managers impacts an individual’s idea of the destination and in turn their likelihood of traveling there.
2.3 Destination management organisations
For this section of the literature review the author will discuss the roles of a destination management organisation and how their roles in promoting and branding their destination to attract tourists and influenced potential tourists to visit that destination or to make a repeat visit.
Destination management organisations or DMOs are an internal body within a destination that carry out the roles of promoting a developing a destination. Initially they were agencies focused solely on promoting and selling a destinations and were seen as a relatively new phenomenon. As (Morrison, 2013) states, Destination managers have been recognised as a vital component in a destinations success. However, the term DMO has developed over time and has become more sophisticated whereby their roles in destination management grew and were seen to be destination developers rather than an organisation solely focusing on sales and promotion (Sheehan et al., 2016). More and more DMOs have established over the past number of years due to the desire for a more co-ordinated approach to destination management and marketing. (Pike, 2016). It is important to note however, that the roles of a destination management organisation do not provide direct service to the tourist (Morrison, 2013). Instead they facilitate and co-ordinate the usage of all aspects of a destination and carry out various roles to ensure the proper utilization of various resources and services within a destination to enhance its ability to be identified as a potential tourism destination and avoid receiving negative feedback (Jiang, et al 2010)
2.3.2 roles of a destination management organisation
As (Morrison, 2012) discussed, DMOs carry out various roles allow for the better utilisation of the tourism resources of a destination. These roles allow them to not only market and promote their destination but to identify potential new market segments and to identify new product opportunities as well as best utilising the resources of a destination in order for it to be successful as a tourist destination
1. Partnership and team building: Involves the creation of a team and the building of alliances to accomplish the destinations promotional and product development goals.
2. Planning and research: Involves carrying out research on potential segments of the market to have a clearer idea of what direction they should take in regard to their marketing and product development decisions.
3. Leadership and co-ordination: Here the destination management organisation acts as a facilitator of the efforts of all those involved in the destination team, and creates alliances to reach marketing and product development goals.
4. Product development: Can be described as the sustainable development of tourism products. The Destination management organisation of country is ultimately in charge of the continuous improvements of tourism products a country offers as well as identifying potential tourism product developments and opportunities to attract more and more tourists.
5. Marketing and promotion. Here the DMO takes the role of developing a marketing strategy. This strategy includes selecting the appropriate target market and developing a marketable image of the region.
In the past, the role of a DMO was solely based in marketing and promotional activities, however as tourism continued to grow in a rapid manner the roles of a DMO had to grow in accordance to this.( Ritchie & Crouch, 2003) stated that the “M” in the term DMO would have correctly stood for marketing in the past, but today as their roles have branched out the “M” can now be seen to signify management. Overall the successful implementation of these extended roles of the DMO help promote a destination by exceeding visitor’s expectations, therefore creating repeat visitors and positive word of mouth recommendations in turn effecting the likelihood of potential visitors to be swayed into to coming to the destination (Dwyer et al., 20
2.4 The impact of a destinations image on the decision making process of an individual
The discussion surrounding the roles of a destination management organisation contribute to the overall idea that the utilisation of resources leads to a more compedative and appealing destination, thus allowing it to have a better image in the minds of past and potential visitors. This competitiveness is also essential in creating a destination that can compete with other destinations and continue to create repeat visitors and draw in new visitors rather than having potential visitors travel elsewhere (Dwyer et al., 2009). although creating a destination that offers experiences that exceed the visitor’s expectations and reinforce a positive image of the destination increases likelihood of their return, an understanding of what activities are undertaken by the DMO to draw them there is the first-place needs to be identified. As has been previously highlighted, destinations and tourism products remain mostly intangible making their promotion more challenging, yet this should not limit the idea that destinations can distinguish themselves through marketing to attract and influence potential customers. An integral way in which destinations distance themselves from other destinations is the use of branding. Although branding may be viewed as a concept reserved for the promotion of tangible products, it is essential to note that destinations can benefit from promotion through branding albeit, complex and requiring “the need to go beyond the theories of product or corporate branding. (Ooi and stober 2010). The branding of destinations relates to the principles of branding of products being applied to places. As places are vastly different in their requirements for promotion, branding is usually adjusted depending on the place and a generic branding policy for destinations would be inadequate. As identified by (Hannah & Rowley, 2011) place branding has an ultimate aim of triggering positive associations with the destinations and distancing itself from other destinations. (Ritchie & Ritchie, 1998) Put forward a definition of place brand as a “Symbol, logo, word mark or other graphic” that allows a destination to identify itself and differentiate itself simultaneously. They also stated that the elements of a place brand are used to promise a memorable experience to visitors that they would not experience elsewhere therefore enticing and influencing the potential visitor to choose their destination over another. However, destination branding cannot take place without the creation of a destination image. A vast expanse of existing literature agrees that a destinations image is a visual depiction of the destination in the tourist’s mind. (Josiassen et al., 2015) A prominent belief amongst those that have studied destination marketing is that a destinations image, if positive, will develop the likelihood of an individual to visit a certain destination but will also contribute positively to their experience and the extent to which they are satisfied. (Stylises et al., 2017). As (Aaker 1991) states that a brand image is a collection of all the associations that link a consumer’s memory to a brand. Therefore, it is of extreme importance to a destination to have a positive image as it as it adds value to the brand or in this case a destination. A brand image is said to add value in various ways. It enables the consumer to obtain information about the brand. It allows for differentiation of the brands products and effects the products market position. A brand image also gives the customer reasons to purchase that brands products and also fosters a positive emotion within the consumer to the brand (Aaker 1994). When pertaining this theory to a destination, it is said that the image is the informational beliefs one has about a country but also the view and the reputation of a destination that an individual has of the place. It is said that a destinations image in the eyes of tourists is made up of three distinctive components. These are cognitive, affective and conative (Pike and Ryan 2004). The cognitive image is the component that relates to the tourist understanding and evaluation of the destinations attributes (Crompton, 1979) A destinations attributes can be various elements such as the offering of the destination in terms of accommodation, the scenery and setting of the destination and even the friendliness of the locals. In a failte Ireland report created in 2018 documenting the facts and figures relating to tourism in Ireland in 2017 the following was identified in relation to attributes deemed most important to the tourist when choosing Ireland as a holiday destination. (Failteireland.ie, 2019)
the affective component in relation to destination image describes a person’s feelings towards a destination (Baloglu and McCleary, 1999). The conative component of a destinations image relates to the desire and intention of an individual to visit or revisit a destination. It is the goal of the DMO to create image for the destination that appeals to the individual that will allow them to evaluate the destination but will also trigger a positive feeling towards the destination that creates a desire within them to travel there.
Overall the DMO’s aim is to create and manage a destination that will exceed visitor expectations and lead to repeat visits but will also lead to positive word of mouth recommendation being spread by prior visitors to friend and family, in the next section the author will examine how and to what extent word of mouth recommendations impact a holidaymaker when choosing a destination.
2.5 Word of mouth communication
In this section the author will discuss the concept of word of mouth communication in relation to it impacts on an individual’s understanding of particular destinations and how that in turn influences their decision when choosing a holiday destination.
As described by Westbrook (1987) word of mouth is the informal communication of information and personal experiences which informs individuals and consumers about a product or services attributes and qualities. This form of communication takes place in a face to face setting (King et al., 2014) and is usually the sharing of past customer experiences or in this case the tourists experiences to other such individuals as friend and family members (Viglia et al., 2016). Word of mouth communication can be neutral, positive or negative and can have a profound effect on the decision of a customer in regards to a product or service they are looking to purchase (Katz and Lazarfeld, 1955). When examining the impact of word of mouth communication on the purchasing decisions of consumers, it is seen to have a greater impact on their judgment of services as opposed to products due to the intangible nature of services (van den Bulte & Wuyts, 2007). With this word of mouth has become an integral force within in the tourism industry impacting purchase intentions, attitudes, preferences and decision making of customers. Overall scholars agree that word of mouth is of critical importance in the success achieved by service providers as positive or negative word of mouth can be the deciding factor of a company, firm or destinations success or failure.
2.5.1 Word of mouth communication and its effects on a holidaymakers decisions
As individuals find it difficult to assess destinations prior to visiting them, they rely heavily on the suggestions and experiences of others. Word of mouth is described as being one of the most utilised “extrinsic cues” due to its high level of accessibility and its evaluation quality
(Darby and Karni, 1973). When a tourist looks to choose a destination they utilise many different sources of information to guide their decision and word of mouth is one of the most significant ways of obtaining information that will guide and shape and individuals attitudes. This is due nature of word of mouth recommendations being informal, swift and lacking in commercial bias, and hence have a profound effect on the decisions and behaviour of consumers (East et al., 2008) as they view these recommendations to be more trustworthy and authentic. According to “Nielsen global trust in advertising” survey, which had just over 28,000 respondents across fifty six countries concluded that word of mouth recommendation from friends and family members was chosen by ninety two percent of those surveyed as the most trustworthy source of information (advertising) whilst online consumer opinions had a lower trust rate of seventy percent.
Furthermore the survey highlighted that of those surveyed only forty seven percent said they trusted ads on television .
The reason for word of mouth communication been seen to show a high level of trust is due to the fact that it comes from friends or family members and therefore is deemed more trustworthy than consumer opinions posted online (E-WOM) (Mack et al., 2008)
Positive word of mouth experiences comes from tourists that have had an experience with a destination that has either matched or well exceed their expectations . These individuals will be most likely to speak highly about it to friends and family (Litvin et al, 2008) immediately after they return from their holiday thus resulting in the perception that the destination is of high quality and will meet or even exceed the expectations of potential visitors hence highlighting the fact that word of mouth recommendations do in fact impact on the decision making process. However if the tourist has a negative experience of the destination they will be like to prescribe a negative word of mouth account of their experience to friends and family thus creating a negative image of that destination in the minds of potential holiday makers ultimately forcing them away from choosing that destination.
In summary word of mouth recommendation are heavily based on the perceived image an individual has of a destination and whether the destination has proven to be a worthy choice and has exceeded the expectation of the individual. If so, the individual will be more than likely to provide a positive WOM recommendation to his or her friends and family. Going by the existing literature proving these word of mouth recommendations shared by close friends and family members have a high trust rate, it is safe to assume that they bare a large impact on the travel based decision of individuals
2.6 The internet and Electronic word of mouth recommendations.
The effects of the internet have had an acute impact on both the everyday life of individuals but has also had great effects on businesses and organisations (Wirtz, Schilke, & Ullrich, 2010). The developments of the internet over the past two decades have led to a change in business models but also a world of information for individuals that can be incredibly beneficial when conducting research on destinations (Benson & Standing, 2008). The growing number of studies on the tourism industry and how it is being constantly effected by the internet in various manners indicates just how powerful the changes to the web are in relation to the tourism sector, destinations and of course for tourists themselves
2.6.1 How the world wide web has developed
Prior to the birth of the internet all of the worlds information sharing & communication practices took place through traditional mediums such as, radio, newspapers and television. However, many of the channels in which information was distributed through were seen to only allowed one way communication. For example newspapers were seen as a top down form of information media and did not allow for two-way communication.
The world wide web, which is the largest existing information construct, has come a long way since its advent. The first report of interactions and information & data sharing across a network was a series of memos that were said to be created in 1962 by J.C.R. Licklider. (Leiner and Cerf, 2018). Since then web has seen itself transform immensely, especially in the last two to three decades where the web has transformed from a static platform with little interactivity to a massive network that thrives on social communities and user generated content. Originally the state of the internet in its infancy was much more akin to traditional forms of information. Although information could now be transmitted digitally there was still no room for interactivity. The internet at this stage was titled web 1.0. This version of the was described as read-only. Here large organisation and corporations could use the web to deliver information or online brochures to a large audience of individuals who could access the internet (Aghaei, S, et al 2012) These individuals could obtain the information directly source but the boundaries of web 1.0 did not grant individuals the ability to interact with this information (Getting, 2018). Overall web 1.0 was static and favoured large corporations as they could supply the content they wanted. For destinations, this meant they could produce an image of their destination online that was created solely by them allowing their best foot to be put forward and delivering an appealing impression of the destination. However, this was just the start of something unprecedented and the world wide web would continue to change.
In 2005 the internet saw what was known as the second generation of the internet commence. This second generation of the world wide web was to be known as web 2.0 Noti, E., 2013.
The term web 2.0 officially outlined in 2004 by Dale Doughtery, vice president of O’Riley media. Web 2.0 would become synonymous with various descriptions such as; the wisdom web, the participate web and the people centric web. Overall web 2.0 allowed for a web that was bi-directional meaning that both the provider (the website creator) and the end user could interact on the web. Web 2.0 did not just facilitate the interaction between companies and end users but between end user and end user or peer to peer. Rather than the controls of web 1.0 that granted companies with most of the power, web 2.0 loosened these controls an allowed for the birth of online communities and bi-directional communication. As web 2.0 grew so too did the number of individuals using the web. This new form of the world wide web allowed potential, existing and current customers of products and services to impart their opinion on their purchase. This opinion could be either positive or negative and has a profound effect on the opinions of potential customers and on those researching products and services. This advancement in communication online that was brought about by web 2.0 was titled e-wom or electronic word of mouth.
2.6.2 Electronic word of mouth recommendations
Traditional word-of-mouth opinions have long been associated with being a major factor influencing the purchasing decisions of customers and the perception they have of a product or service. WOM has been identified by many studies to be one of the most trustworthy sources of information and e-WOM is near to as trustworthy as its more traditional counterpart. Electronic-word-of-mouth can come in the shape of online reviews on specific reviews sites or blog post by individuals relating to a specific destination. These “opinion platforms” that allow for these online recommendation and user generated content to be shared have not only have profound effect on the decisions made by individuals when choosing a holiday destination but also help empowering consumers (Buhalis and Law, 2008) This is because the reviews and recommendations shared on these platforms are seen to be credible and are deemed particularly influential ( Jiang et al., 2010) However traditional word of mouth is still deemed as the most trustworthy source of information as it comes from close family ties and results in higher trust levels being shown towards it. On the other hand, however, the characteristics of E-WOM render it a critical factor in influencing the decision-making process of individuals choosing their next holiday destination. The major differing factor between traditional WOM and E-WOM is the nature in which E-WOM is disseminated. Online material is shared and generated on a constant basis across a plethora of “opinion platforms”. This content is influencing the tourism industry as it shapes attitudes and generates expectation that have and overall impact on the decision-making process of an individual (Llamero, 2014) a characteristic not seen with traditional word of mouth.
E-WOM, as previously stated, can be shared across many platforms in many different ways and the social characteristic of the means in which these recommendations leads them to be perceived as credible sources (Jiang, et al 2010). This is due to the fact that after the creation on the first online communities their content was perceived to be a-kin to the recommendations provided by the likes of friends and family members through traditional word of mouth recommendations. A number of studies carried out on the effect of social media in relation to travel related decisions discovered that reviews posted on travel review sites by individuals increased potential holidaymaker’s confidence levels during the travel planning process as these recommendations were seen to greatly reduce the risk and uncertainty associated with choosing a holiday destination.
A study carried out by (Fotis, 2012) highlights in detail the use of online recommendations in relation to the travel planning process of holidaymakers. Although the study highlights that only forty five percent of the individuals surveyed said that the used internet based recommendations to choose their next holiday destination, over seventy eight percent said they used the internet after their trip to post recommendations and information about the destination. With such a high number of people using the internet to post recommendations more and more people are beginning to trust and utilise electronic word of mouth recommendations on social media. In the same survey conducted by (fotis, 2012)