The introduction of the ESG concept has become imperative for companies in the tourism sector, because sustainable business is not only a moral obligation, but a key factor in competitiveness and long-term success," says Jelena Sretenović, director for the markets of Serbia, Montenegro and Bosnia and Herzegovina at Matercard.
- Why has the introduction of the ESG concept become necessary for companies in the tourism sector?
Introducing the concept of ESG (Environmental, Social, and Governance) into business strategies has become imperative for companies around the world in modern times. This is especially pronounced in sectors that have a significant impact on the environment and society, and tourism is certainly such an example. In this industry, sustainable business today is no longer just a moral obligation for everyone, but also a key factor in competitiveness and long-term success. Sustainable tourism is one of the topics of this year's ESG Adria Summit for a reason, which represents a significant step towards a deeper understanding and implementation of ESG principles in the tourism sector in accordance with the UN's sustainable development goals. In the global economic framework, which shows that tourists are turning to less popular, and consequently more economical, destinations such as these in our region, all in search of new experiences, local economies have a chance to be profiled as attractive and, therefore, to achieve growth, but that chance also brings the necessity for the tourism offer to be sustainable. We still haven't achieved that goal, actually - no tourist destination in the world can say that for itself, but there are many positive examples of the changes taking place: from relying exclusively on local supply chains during construction and business, using natural and recycled materials as would get closer to a net neutral footprint, strict adherence to environmental standards, taking into account the equal representation of the sexes in the workforce, etc. What is necessary for the development of sustainable tourism is a transition to a model that sustainably uses resources and protects natural and cultural values. In this regard, the cooperation of state institutions, the private sector, local communities and all visitors is essential in order to achieve the goals of sustainable tourism.
It is important not to approach tourism as an activity that happens by itself. Tourism must be based on strategy, accurate data and digitization as a key differentiating factor. You need to learn, expand your offer, adapt to trends or impose trends, and all this is possible if you have the knowledge on which to base these changes. Challenges in the application of sustainability measures in tourism still exist, such as lack of infrastructure, insufficient financial resources and lack of awareness among all participants in the tourism industry. However, sustainable tourism is the future of this industry. In the future, we expect the increasing popularity of these destinations and their economic prosperity, which will result in the economic prosperity of the entire community.
- How does sustainable tourism contribute to economic development?
As I said, sustainable tourism is far more than a necessity to save our planet, it is also a significant economic opportunity. Sustainable tourism attracts an increasing number of conscious tourists, who are willing to pay more for experiences and destinations where they know that all regulations and precautions have been followed when it comes to protecting the environment and cultural heritage, resulting in long-term economic advantages for those destinations.
The market itself has changed in the last few years. A new generation has come of age whose habits, needs and – what is certainly the most important thing for everyone whose existence depends on the consumption behavior of guests – expectations are greatly different from all the generations that preceded it. New generations of consumers think more carefully about where and how they will travel, that is, who they will give their money to, and this very often means that they care about sustainability. Our recent research Experience Economy it shows that overall experiences are important to consumers and that they would rather invest their money in experiences than in material things, which is an excellent opportunity to create an offer that will attract them to a given destination. Montenegro is a country that definitely has something to offer the world and it is an excellent basis for improving its visibility and attractiveness through modern technologies and relying on data, which will benefit the entire local community.
- How important is the impact of digitization when it comes to tourism?
Digitization is necessary in an environment where there has been a shift in consumer habits towards digital channels. Big businesses have known this for a long time, and now even small companies have recognized this necessity, because digital business has opened the way to new clients. Tourists browse an average of 38 online travel sites and plan their trips five weeks before departure, search for advice on social media, post vacation photos and travel reviews, and pay for a large portion of their travel expenses online. That's why digitization in tourism is a process that must take place in parallel on several fronts, so that digital presence is accompanied by digital business, in order to truly meet consumer expectations.
And I would say that digitization has brought us significantly smarter tourism if we know how to use all the opportunities available to us. It is up to the tourism and related industries to adapt to the situation as best as possible. What we can do is take into account all the elements from the environment, be creative in the formation of the offer and effective and well-targeted communication of that offer on broadcast markets.
- How important is insight into data as a prerequisite for managing the tourist offer in changing circumstances?
If you don't have an overview of the entire customer experience, you lack the insights to understand travelers' needs and the information needed to form investments to attract them to a destination. At the same time, consumers using digital services before, during and after the trip generate massive databases - sentiment data extracted from search engines, anonymized data from transactions, data on social networks and data on reservations measure the overall satisfaction, experiences and perceptions of visitors, users and competitors .
This is exactly what the Mastercard Tourism Insights platform is based on, which analyzes the entire consumer journey, before, during and after the trip, and thus enables users - organizations in the tourism sector - to better understand the plans, interests and preferences of visitors, which serves them to shape the offer as well as direct marketing investments.
This solution helps local and national tourism boards and government agencies plan their tourism recovery programs, from launching international marketing campaigns to awarding subsidies to citizens to encourage local spending in the tourism sector. It will also help hoteliers understand how to communicate with certain types of travelers—for example, the needs of families versus solo travelers. Also, I can help them manage the calm off-season, that is, the overcrowding in the season. This tool is used by, among others, London, Paris, Madrid, New York and the Greek tourist board, as well as Croatia, which achieves excellent results at the national level and at the level of individual counties. It enables them to clearly profile the visitors, their wishes and needs, and direct the offer based on that. In this way, they understand profitable segments of visitors, main markets, trends and thus get a platform to win market share.
