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Innovation, Concept Development and Project Management
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Sub City News
Sub-cultural updates for travelers
Group 8
Axel Violon, Camil Manuel Hesse, Mette Larsen-Kaasgaard, Camilla Boel og Signe Hamann-Pedersen
Table of Contents
Executive summary
Concept report
3
4
Product
4
Values
4
The reader segment
5
Subscriptions
5
Content
6
Visual identity
6
These are the subjects covered:
6
Content providers
7
Destinations
7
Market positioning and competitors
7
Business structure
9
Business Model
10
Customer segments
10
Value proposition
10
General outlines for end reader
10
Customer channels
11
Customer relationships
11
Revenue streams
12
Key resources
13
Key activities
13
Key Partnerships
13
Cost structure
14
Business Environment
Industry Forces
16
16
Competitors & Substitute products/services
16
New Entrants
17
Suppliers and other value chains actors
17
Key Trends
Societal and cultural trends
Technology trends
17
17
18
Macroeconomic Forces
20
Global market conditions
20
Capital markets
20
Commodities and other resources
20
Economic infrastructure
20
Market Forces
21
Market Issues
21
Needs & Demands
21
Switching costs
21
Revenue attractiveness
21
References
Appendix 1
Appendix 2
Appendix 3
22
23
25
26
2
Executive summary
”Congratulations! You are the winner of a trip to Barcelona!” How lucky can one be?!
You start searching for information about Barcelona. Off to the bookstore, where all
you find is static information about history and some old recommendations. Then
you check out the Internet for travel and news sites, but you realise that it is a jungle
to manoeuvre in.
Until… you come across the website “Sub City News”! Here you can get information about European cities and see a current monthly issue, with local news from
the culture underground: Local news combined with an up-to-date travel guide…
For a small fee you can even subscribe to access passed issues, which gives you the
possibility to dive into the subjects you find the most interesting: Sub culture, urban
development, local politics, entrepreneurship and entertainment. Even though “Sub
City News” is not filled with noisy advertisement, it is great opportunity that you can
subscribe and read the issue without advertisement.
It comes to your attention that the content is provided by local bloggers and institutions. The articles are in-depth and grasp the local news, while you as the reader are
able to supplement with comments, ratings and reviews. Local news and information
that you could otherwise only access, if you turn to the right people on your destination!
You realise that with “Sub City News” you have finally found a multi-destination
service, which prepares you with an updated overview for your vacation. You sign up
right away, certain about coming back again before your next city holiday!”
Figure I: An example of how “Sub City News” could look like
3
Concept report
Product
“Sub City News” is a web-based news service that is, like a magazine, issued every
month and covers the subcultural news in a range of cities across Europe. The webportal entrance is an international overview with cover stories and an interactive
map, from which the city of choice can be navigated to. “Sub City News” places itself
on a cross-platform between local news and travel guide, engaging into these markets
with attitude and the goal to attract young travellers around the globe. Small local
units in different cities have established networks to the locals in order to provide the
rest of the world with interesting and nuanced sub- and cultural news. These local
text- or video bloggers and photographers are the main content providers along with
in-house staff containing journalists and editors.
The monthly issue becomes alive through encouragement of the readers to comment,
discuss or share articles within their favourite social networks. The service is subscription based, which makes it possible to raise the standard for quality and reader
expectations. There is a print function that allows the reader to take the pages of
interest with him and allows quick and easy access to the news, while travelling offline. The issues of “Sub City News” will be written in English and the given native
language of the chosen destination.
Values
When travelling we find value in acquiring knowledge that is unique, specific to our
interests and with an authentic flavour wrapped around. We also find value in following developments of the places of remote family and friends. We find value in
using one service that provides all of that, fast, in high quality, at low costs.
We see that today the online news industry is, much alike the rest of the web, drained
in a loud soup of information and commercial advertisement. It is still rather difficult to find content of particular interest without spending a fair amount of time
searching the web. Even harder is it to find products with certain amount of quality
and continuity that are not newspapers, covering ones place of residence. The notion of providing balance between the quality of the content, the visual identity and
the advertising has moved towards the side, where lay-outing is being slaughtered
for the benefit of marketing, thus not offering clues for the quality and authenticity
of the content. It seems that there is a general perception (also on the web) that a lot
of things should be for free, including news. This is only possible, when granting
advertisers this platform of intrusion and spam.
We are interested in creating a trustworthy service that provides you with news, produced by locals and about the local. News that is critical and nuanced. We believe
in the willingness of our readers to pay for good and authentic content, and thereby
raise their level of expectation.
4
The reader segment
The readers of “Sub City News” are typically young people (20-40 years) of both genders, to whom travelling especially to cultural destinations is important or because
they have family or friends abroad. Not only is this segment interested in subculture, but it actually gives them a sense of belonging to the cities “in-crowd” and is
therefore crucial to maximise the outcome of the trip. Young travellers are eager to
get in contact with young local people, to share common interests and experience
and broaden cultural backgrounds. We consider “Sub City News” as a good starting
point for tracing these interests and backgrounds, validate them and pass them along
to your network.
Vacations to sunny beaches or sport resorts are different: the classic travel guide with
least expensive... or best value... tips applies. Many in our customer segment travel
once or twice a year to a foreign city and thereby build grounds for the continuance
of our service. They are people who don’t mind spending little money for good quality and tailored news and information regarding their interests and travel behaviours.
Their English skills and their Internet usage is above average.
We have created three personae to describe the usage of “Sub City News”
in different context (Saffer, 2010):
René is a computer engineer from Quebec, Canada, who is going on a long distance
journey. Next month René is going to visit his brother in Copenhagen, Denmark, together with his family. The family is going to stay for two weeks, and is eager to visit
some of the popular tourist attractions, but also to visit small and unknown places.
They visit the “Sub City News” website, read the in-depth monthly issue, and get oriented on interesting things to see in Copenhagen.
Michael is a successful art director from London. He has earlier lived with his girlfriend in Copenhagen, Denmark, when he was in his early twenties. The relationship
didn’t last, so he went back home to London to start up his own business. However,
he became really fond of Denmark, and uses “Sub City News” to keep up with what’s
going on on a regular basis.
Henriette is a teacher, who lives in Copenhagen. She likes to go abroad twice a year,
mainly to other European cities, or to go on trips with a predefined content, such as
opera, art exhibitions or modern ballet. For her next trip she is uncertain, where it
is going to, so she wants to search for a destination. She goes to “Sub City News” in
order to get inspired, to see what’s moving around in Europe, and to get information
on upcoming events.
See appendix 1 for full description of the personae.
Subscriptions
As mentioned earlier “Sub City News” is subscription based, which by all means
doesn’t mean that one can’t read it for free. The current edition is available for free,
accompanied by subtle advertisement. The free version includes to begin with all
functionality, such as rating, commenting and discussing. Once a solid reader-base is
established these features will be reserved for subscribers only. Sharing and recom-
5
mending are obviously free features, since they gain the spreading of the service.
The subscribed versions are commercial free and have the additional print features.
They also allow full access to past issues and the archives. Monthly subscriptions are
either paid for three months or a year in advance, for a price of a coffee.
We believe that the value of a subscription of “Sub City News” exceeds its costs and
will therefore be appreciated by its base of readers. To that the magazine format has a
string of advantages, which can motivate subscriptions. It generates tension and excitement towards the outcome of the next issue and gives something to look forward
to every month.
Most topics and featured articles will find the attention of the readers, due to the time
gap between the issues and the fact of pre-payment. Content curators have made a
choice for the reader, on what is most interesting and therefore no one is lost in the
information overload like on many other news sites.
Another aspect of financing this service by subscription is to make the reader appreciate the local efforts that have been made, by actually paying for that work. This
process can harbour important opportunities for local content providers to actually
pursue journalism.
Content
The contents of “Sub City News” cover a niche within news, with focus on subculture, local politics, urban development, entrepreneurship and entertainment. These
subjects are chosen, because they match the interests of the customer segment and
because they reveal the cultural capital or status of the cities. Besides the in-depth
articles “Sub City News” promote cultural events, present ratings and reviews of both
experts and readers and feature a calender of selected upcoming events. The timing
of the articles and the subjects should possibly precede mainstream media attention,
in order to keep the readers authentic expectations intact.
These are the subjects covered:
Subculture: Street art, underground music, upcoming artists, exhibitions etc.
Local politics: Political development, city finances, political strategies
Urban development: Architecture, city planning, city history etc.
Entrepreneurship: Design, start-up businesses, young creatives, platform of growth
Entertainment: Events, concerts, museums, nightlife
Visual identity
The purpose of this short paragraph is to constitute the importance of reflecting upon
the values of the product compared to the needs of the segmentation. Since “Sub City
News” is about subculture in large cities, the graphical style and layout must not be
shy, but appropriately “edgy” in order to satisfy its readership visually. The goal is to
ensure local independence and trends, while simultaneously maintaining a globally
unified face that statues certain corporate and entrusting values to the readers. Typeface and layout are expected in cutting-edge magazine style, covering various themes
or colours for the different monthly issues.
6
Content providers
“Sub City News” is written mostly by local bloggers or other journalistic talents.
They are the people, who know what is going on in the city, which enables them to
contribute to the service in an intellectual and nuanced way. We will try to pay for
these articles, but consider “Sub City News” to be a stepping stone for young writers
or students and thereby formulate this trade off. Freelance or amateur photographers
are also considered to be main producers of the content. With the growing of videoblogging, small features could be an interesting source of ongoing content.
Another source for providing content are the municipalities and cultural institutions
in the cities. They have great communication staffs, issuing press releases and other
public material, which can be used or be of inspiration. Collaborations between “Sub
City News” and these institutions can be motivated by giving access and exposure
to one another. Once “Sub City News” gets into a more established state, in-house
journalists and content producers could fulfill bigger roles, than the editorial work
they do in the beginning.
Setting up the content like this, is made both from an economical point of view, but
mainly to sustain a local approach to news. - Local news produced by local people.
Destinations
Most European capitals or large cities are suitable to make “Sub City News” a success. In a starting phase five promising cities would act as core destinations, where
Copenhagen also serves as “main office”. These cities could be: Barcelona, Berlin,
Paris, Amsterdam, London, Vienna or Brussels. The main criteria for choosing the
destinations are the cultural capacity, the newsworthiness, a high number of tourists
and recruiting the “ground troops”. More exotic places like Lisbon, Istanbul, Helsinki
or Edinburgh could add some flavour to the variety of destinations. Once this process
is repeated a few times, acquiring new cities will be done with less effort.
One could imagine that future projects could emerge globally in places like San Francisco, Mexico City, Sidney or Tokyo.
Market positioning and competitors
With “Sub City News” we would like to bridge the gap between local news and online travel guides. There are many major news and media companies, that have local
news sections, but they constrain the radius of relevance within their own country
(mostly USA). Local news is generally treated like global news, meaning that they
don’t seem to have any distinct local characteristics. The format it is found in is the
typical news portal style: infinite columns of articles, lots of junk ads and layouts that
look very much alike.
On the other side of the spectre, there are online travel guides, such as LonelyPlanet,
Timeout or Tripadviser, which all provide multi-destination information. They are all
run by the travel industry and try to sell other products than the websites themselves.
We are addressing the travellers segment and provide them with news instead of travel information. News are more frequently updated than regular travel guides, so the
choice of the web as the platform for the service emphasizes this dynamic approach.
The service provides in-depth articles and lets the reader be able to have a discourse
and reflect on them. This makes “Sub City News” an ongoing, living site, compared
to travel guides, which leave no room for self-reflection to the user.
7
TRAVEL GUIDE
TripAdvisor
Politikkens The trip goes to
Lonely
Planet
WikiTravel
Governmental
Insitutions Foreign Ministry
VisitCopenhagen
USER
GENERATED
OUR
CONCEPT
Inflight
Magazines
AOK
ESTABLISHED
COMPANY
Media
Companies
VJ Movement
Media providing multidestination information
Media providing information for a single destination
LOCAL NEWS
Figure II: Positioning Map
Shows where tourist may seek information (of all kinds) about their destination.
Travelguide = Reviews, static information and history about tourist attractions, hotels, restaurants etc
eg. cultural experiences
Local News = Dynamic local news on all sorts of topics: breaking news as well as indepth stories.
Figure 1: Positioning Map
Shows where tourist may seek information (of all kinds) about their destination.
Travelguide = Reviews, static information and history about tourist attractions, hotels, restaurants etc eg. cultural
experiences
Local News = Dynamic local news on all sorts of topics: breaking news as well as indepth stories.
8
Business structure
To accommodate the needs of our customers and to differentiate us from our competitors, it is important that the content we deliver is not superficial, but sufficiently
grasp the local sub news. This requires employees who are on “home ground”, wellupdated in the sub culture milieu and know which resources to contact and use.
These employees are the biggest asset for “Sub City News”.
Therefore our organisation must have an organic structure that involves decentralised units for each destination offered by our service. The work process in each unit
can be characterised as project oriented. Each unit is responsible for their own destination with everything that this involves: assemble, create and edit content; web
management and quality assurance; sales and marketing activities with local institutions and businesses.
Strategic planning, web development, accounting and HR will be centralised in a
head office, and will thereby constitute the established organisation.
The advantages of this business structure are that you invite to transverse and crosscultural communication between the different destinations and thereby share bestpractices and knowledge about sponsoring, marketing, design and networking. Furthermore, you empower the personnel to make decisions, work independently, to
be responsible for own unit, and motivate to be engaged in the company’s revenue
stream and welfare. With a structure where each unit functions as self-contained departments, the overall financial system is less vulnerable, because the units will not
effect each other.
One of the disadvantages is that it might take some time to implement this decentralised structure due to national diversity. For example measured on Geert Hofstede’s
Cultural Dimension, where for instance the “Power Distance Index” and “Uncertainty Avoidance Index” could be an issue, if the specific destination is used to operate with strict hierarchic organisations and work on specific prescribed assignments
(Hofstede, 2009).
9
Business Model
The business model is based on the business model canvas from Business Model
Generation (Osterwalder & Pignuer, 2009).
Customer segments
The customer segment can be divided into two major groups: the reader and the B2B
clients. This Multi-sided platform brings these two interdependent segments together, creating value by facilitating the interactions between the two groups.
General outlines for end reader
City travellers (who is traveling to explore the destination or to visit family or
friends)
Aged 20-40 years
Both genders
Urban citizens
Travel 1-3 times per year
English language skills
Regular to experienced users of news sites on the Internet; use social networking
sites or other co-creation sites.
Cares about quality in content and usability on websites
Interests: Urban culture, urban development, entrepreneurship, politics
The business to business clientele are exchanging publicity space for money. These
are local institutions and municipalities, together with companies from the travel
industry, who are interested in making advertising on the local destination site. As
“Sub City News” is a service, which is very focused on the value that we bring to the
readers, a creation of a marketing manual will be mandatory to provide and guarantee
a both relevant and interesting, but yet local advertisement content.
This business segment is interested in branding the destination the best and most
effective way as possible, and thereby gaining more tourists with a positive attitude
towards the city.
Value proposition
As described, “Sub City News” cares to publish high quality content; local content
produced by local people. “Sub City News” brings value to the segment by bringing
a monthly issue, which quickly gives the tourist an overview of the most interesting
stories within the local culture and urban development. A monthly issue makes it
achievable only to focus on the most interesting and important in-depth stories, and
thereby sort out all “the noise”, which you, as an Internet user, is bothered with when
surfing.
10
“Sub City News” works for the convenience of the reader, which is key, so they won’t
need to browse around hundreds of tourist sites, or be dependent to meet the “right”
local people on spot to tell what is happening in their local community.
Another evident value proposition “Sub City News” offers, is the foundation of customer loyalty. As “Sub City News” services several destinations, the user has the
motivation to keep returning to the site, but for different travel purposes.
The current monthly issue is for free, to make an extra added value to travellers,
who just want a quick overview for their upcoming travel or for those wanting to
evaluate the content before subscribing to the service. A subscription to the service
is at a price of DKK 15,- (EUR 2,-) per month, which allows access to the archive and
extended functionality. At the beginning, every reader will be able to comment and
rate the articles so we can quickly get some content. But as soon as we have enough
subscribers, we intent to reserve this functionality to subscribers only, to add a motivating factor.
Customer channels
The distribution of “Sub City News” is based on a website, meaning that it is accessible when being connected to the Internet. We assume that travellers read or print
out the monthly issue of “Sub City News”, while planning and preparing for their
vacation. Some people may not be aware of their need of “Sub City News” before they
actually stand in a foreign airport or railway station. “Sub City News” in the form of a
smartphone application is therefore an inevitable development of the website.
Creating awareness worldwide for a global enterprise is a huge mouthful and can be
very expensive. The most obvious communication channel to reach our segment and
to brand our value proposition is to use all the existing online social media networks.
A lot of corporate media companies already have integrated “Share on Facebook”
buttons ending each news article, and many companies in the service industry, such
as restaurants, local shops etc. are also doing this. These are inevitable and invaluable tools, when creating awareness, because it has no costs, just as word-of-mouth
communication.
The local bloggers producing content to the site are of course a huge asset and great
ambassadors, since many of them have great networks of people following them already. Moreover it seems common that bloggers around the world discussing the similar topics follow each other, which hereby gives great exposure and awareness to the
site. This will be characterized as reaching the segment, through partner channels.
Within direct communication channels, e.g. where we pay to get exposure, there are
many obvious places to call for attention. For instance, advertisement by the gate in
the airport, at the railway station or in a travel magazine, where a 2G bar-code is visible to gain access to the application.
Customer relationships
Multiple customer segments require different types of customer relationships. The
reader operates on a website, which includes some self-service elements and automated services, such as user profiles and extended functionality due to the monthly
subscription fee. Simultaneously, there is a large base for a co-creation environment,
11
from which due to the nature of the content will evolve commentaries and discussions, spread out through online social networks, such as Twitter, Facebook or Youtube.
Regarding the B2B segment, a personal contact and relationship keeping is of crucial
importance. It is as well a networking or outgoing activity, as well as a maintaining of
fertile partnerships, as discussed in key activities.
Revenue streams
The revenue streams derives from reader subscription and from web advertisement
on the site. To gain an overview of the income, we have made some estimations on
subscriptions and advertisement.
The current monthly issue is for free, while a subscription to one destination on “Sub
City News” is at a price of DKK 15,- (EUR 2,-) per month. You can also choose to follow more than one destination at DKK 40,- (EUR 5,-).
The table below shows, how many subscribers we anticipate to have for the x number
of destinations over 5 years. The subscribers are divided into single destination and
multi destination subscriptions. Merging the number of subscribers shows that from
year 1 to 5 with 5 to 10 destinations an increase from 1.000 to 60.000 subscribers
Year
Number of cities
Number of subscriber for single destination
Subscription / month
Number of subscriber for multi destination
Year
1
Multi destination
subscription / month 5
Number
of cities
Number of subscriber for single destination
900
Subscription / month
2.00
INCOME
Number of subscriber for multi destination
100
Year
In
this
table itsubscription
is seen that
after
5 years
Multi
destination
/ month
5.00
Table A: Subscriptions
Advertising
Multi destination subscription
4
8
27000
2.00
3000
4
85.00
5
10
54000
2.00
60005
5.00
10
3600
12600
27000
2.00
2.00
2.00
400
1400
3000
1
2
3
4
the
subscriptions
92% of
5.00
5.00includes
5.00
1
2
3
4
12,000.00 21,600.00 33,600.00 57,600.00
21,600.00 86,400.00 302,400.00 648,000.00 6,000.00 24,000.00 84,000.00 180,000.00
39,600.00 132,000.001 420,000.00
885,600.00
2
3
Number of cities
Table
B: Income
Employees
/ city
Website
COSTS
Maintenance
Year
Buildings
Number
of cities
Employees/ city
Employees
Content
Website
Marketing
Maintenance
Buildings
Total costs
Employees
Content
Year
Marketing
Balance
Total costs
1
5
1
- 10,000.00
0.00
- 36,000.00
- 150,000.00
- 27,000.00
- 30,000.00
- 253,000.00
Year
Balance
Cumulative balance
1
- 213,400.00
- 213,400.00
Cumulative balance
2
3
6
7
3600
12600
2.00
2.00
400 3 1400
5.00 7 5.00
54000
2.00
6000
5
thetotal
5.00
12,000.00 21,600.00 33,600.00 57,600.00 120,000.00
21,600.00 86,400.00
302,400.00
648,000.00
1,296,000.00
6,000.00 24,000.00 84,000.00
180,000.00 360,000.00
39,600.00
132,000.00
420,000.00
885,600.00
1,776,000.00
income.
Subscribtion
INCOME
Total income
Year
Advertising
Subscribtion
Multi
destination subscription
COSTS
Total
Year income
1
5
900
2.00
100
2
5.00
6
5
120,000.00
1,296,000.00
360,000.00
1,776,000.00
4
5
5
6
7
8
10
1
1
2
2
2
- 10,000.00
0.00
0.00
0.00
0.00
0.00- 1,500.00 - 2,000.00 2,500.00 3,000.00
2
3
4
5
- 36,000.00
- 43,200.00- 50,400.00
- 57,600.00
- 72,000.00
6
7
8
10
- 150,000.00
-
- 420,000.00
- 480,000.00
- 600,000.002
1 180,000.00
2
2
- 27,000.00
- 75,600.00
-0.00
126,000.00
- 172,800.00
- 270,000.00
0.00
0.00
0.00
--
30,000.00
- 35,000.00
- 38,000.00
60,000.00
- 100,000.00
1,500.00
- 2,000.00
-
2,500.00
3,000.00
43,200.00
- 50,400.00
- -
57,600.00
- 72,000.00
- -
253,000.00
- 335,300.00
- 636,400.00
767,900.00
- 1,039,000.00
- 180,000.00
- 420,000.00 - 480,000.00
- 600,000.00
- 75,600.001 - 126,000.00
- 172,800.00
2
3
4 - 270,000.00
5
- 35,000.00
- 38,000.00
- 60,000.00
- 100,000.00
- 213,400.00
- 203,300.00
- 216,400.00
117,700.00 737,000.00
- 335,300.00
- 636,400.00 - 767,900.00
- 1,039,000.00
- 213,400.00
- 416,700.00
- 633,100.00
- 515,400.00 221,600.00
2
- 203,300.00
- 416,700.00
3
- 216,400.00
- 633,100.00
4
117,700.00
- 515,400.00
5
737,000.00
221,600.00
Chart 1: Income
12
As described earlier, the web advertisement needs to be controlled and minimized,
so that the reader perceive “Sub City News” as professional. Moreover, within the
first years we cannot expect the B2B clientele to pay large amounts for advertisement
due to the relative low number of readers. Consequently, the revenue streams from
advertisement will include a smaller percentage of the total income; 8% within 5
years. This revenue stream can easily become higher, when the B2B segment is ready
to pay more, due to a higher number of readers.
Key resources
Key resources will be divided into two groups, the first representing city units and
the second the main office. Both have an office space to maintain, where in the city
unit only a limited staff is necessary, since the content providers co-exist elsewhere
(bloggers, etc. working independently). A marketing expert, a web developer and a
networker/journalist are needed to maintain each units business. To start off we imagine 1-3 employees in each city, which means that ideally one person possess more
than one of the above-mentioned qualifications.
The main office includes a much larger staff, consisting of graphic designers, web
developers, HR personnel, accounting and legal department.
Human capital and intellectual resources dramatically influence this service, since
“knowing the right people” is a core asset of this project. Therefore networking and
maintaining relationships are crucial tasks to be executed on a daily basis.
Key activities
Key activities are divided into two main tasks: networking and content/editorial work.
Networking describes the building and maintaining of relationships to “the people
on the ground”, which include connections to the bloggers, journalists, photographers or people with insight and knowledge on local trends. Each city unit maintains
these networks independently, ensures quality and “creates” its own “newspaper”.
So the editorial/curator work is spread out to the different cities.
Furthermore, each unit is also responsible to perform key account activities; making
contracts with relevant companies and institutions interested in having advertisement on the site. They can negotiate as they wish, the important thing is that each
unit is responsible for its own revenue streams.
There is also a set of key activities regarding the “main office”. It is considered the
heart of this enterprise, setting the stage for all the different destination units. The
main office holds a strategic overview on all projects and handles the accounting,
legals and HR.
Key Partnerships
Key partnerships can include a variety of businesses and institutions. There are different kind of partner relationships imaginable, ranging from local collaborations or
beneficiaries on either side to business agreements and relationships. To keep the
costs at a minimum, cultural institutions or municipals could serve as content contributors, gaining exposure on the site as trade off.
The local bloggers are key partners to us, as they also serve as content contributors,
but more importantly they bring the “sub-knowledge” about the destination to our
readers.
13
We anticipate the readers to take part in discussions by commenting articles or distribute content through social media networks, which therefore play a significant role
in the partnership construct and this particular channel distribution of this product.
Cost structure
The costs of “Sub City News” are many, but the most apparent costs are for employees and content provided by bloggers, journalists or other institutions.
City unit costs (fixed costs): Salaries and small office rent.
Main office costs (fixed costs): Salaries, office establishment and website development and maintenance.
Costs of content providers (variable costs): Content payment for each piece to journalist/blogger/media agency.
COSTS
Year
1
2
3
4
5
Number of cities
5
6
7
8
10
Employees / city
1
1
2
2
2
Website
- 10,000.00
0.00
0.00
0.00
0.00
Maintenance
0.00
- 1,500.00 - 2,000.00
2,500.00
3,000.00
Buildings
- 36,000.00 - 43,200.00 - 50,400.00 - 57,600.00
- 72,000.00
Employees
- 150,000.00 - 180,000.00 - 420,000.00- 480,000.00 - 600,000.00
Content
- 27,000.00 - 75,600.00 - 126,000.00- 172,800.00 - 270,000.00
Marketing
- 30,000.00 - 35,000.00 - 38,000.00 - 60,000.00 - 100,000.00
- 253,000.00 - 335,300.00 - 636,400.00- 767,900.00 - 1,039,000.00
Total costs
Table C: Costs
Chart 2: Costs
14
Combining the revenue streams and cost structure, it shows that “Sub City News”
will break-even in the fourth year, but yet again it should be considered that both revenue and costs are estimations, which should be backed up by more evident research.
Year
Balance
Cumulative balance
1
2
3
4
- 213,400.00 - 203,300.00 - 216,400.00 117,700.00
- 213,400.00 - 416,700.00 - 633,100.00 - 515,400.00
5
737,000.00
221,600.00
Table D: Balance
Chart 3: Balance
15
Business Environment
Industry Forces
“Sub City News” is operating in two major industries, being the news industry and the travel industry, which makes an analysis of the industry forces
less straight-forward. Looking at the positioning
map (in the concept section), placing “Sub City
News” compared to other players in both industries,
reveals a basic visual understanding of the market
the concept is operating in.
Competitors & Substitute products/services
We have not been able to find an organisation/platform who can be categorised as a
strong competitor, as the combination of the content (local news and tourist information) and the fact that it is a multi destinations platform, is not seen in our research
so far. Therefore many of our “competitors” or substitute products can provide our
segment with either a ‘multi-destination’ platform in the shape of a travel guide,
recommending/reviewing accommodation, neighbourhoods, tourist attractions etc.,
while only local and ‘single-destination’ media companies, individual bloggers, can
provide local sub-news from the specific destination. This means that you either
have to search several places for the information/service we offer, or that the content
you are looking for is only present in the native language of the destination.
Looking at Copenhagen as an example, visitcopenhagen.dk is of course a huge competitor. When the tourist have decided to travel to this destination, it provides some
of the same content, focusing on cultural news and upcoming events in a travel guide
manner. Visitcopenhagen is a part of Wonderful Copenhagen and Visit Denmark,
which of course means that there is a solid organisation behind; Denmark’s official
tourism organisation, focusing on attracting tourist to Denmark and branding Denmark in general. Visitcopenhagen is just a single unit destination, so where we would
have an apparent competitive advantage is, when a tourist have used our platform
once, they know that we provide the same service for other destinations when they
are travelling the next time.
Moreover, our service is more differentiated and may appeal more to a niche segment,
as defined with our personae, whereas visitdenmark/Copenhagen is determined to
satisfy the masses.
Copenhagen is just an example of how we of course have competitors at each destination, meaning that the above description may as well be applicable to Barcelona,
Edinburgh or somewhere else.
16
New Entrants
In general the entry barriers to retrieve the market, and create a web based communication platform, is low compared to for instance the industry of industrial production. The start-up capital need is only for the design and production of the platform,
and then the major expenses are wages. On the other hand, the most important asset
to retrieve this market, and being able to meet the needs of the target group, is human
capital. Competences, knowledge and personality is pivotal to make this business
work, as you need the right people, with the right network to be responsible at each
destination.
This is the primary key for this service, but also here when talking about if competitors can retrieve the same market serving the same target group.
Another important aspect, when talking of retrieving barriers, is how easy it is for the
user to shift to another platform/service. Users are very little loyal on the Internet,
because it is easy and cost free to browse around on different sites. Creating customer
value and customer relation is therefore crucial, and the best place to start is to have
an easy and intuitively user interface.
Suppliers and other value chains actors
Our value chain is yet again dependent on human capital. As described above we are
100% dependent on key employees at each destination and their network to bloggers,
local institutions and other influential people, who know what is happening at the
destination and who can create content to our platform.
Sponsors and partners are also part of our value chain as they, either through advertisement or for example integrated services as online restaurant booking, also provide the user with content about the destination, which the tourist might be seeking.
Again, this creates value to the user.
Key Trends
The most important trends to research
for with our concept, is our segments’ behaviour on the Internet, the consumption
of news and their travel patterns and expenditures, e.g. the societal and cultural
trends and the technology trends. This is
evident to analyse, if the market is increasing or decreasing.
The key trends are based on figures and facts from Denmark as an overview of the
trends. With an international based concept as ours, of course it is crucial that key
trends from each destination in question should be analysed in depth.
Societal and cultural trends
The desire for travelling is still increasing. Key trends in the Danish travel industry
show a continual increase in the number of travels from 2005 with approx. 3,5 millions travels to 4,5 millions travels in 2007 (Appendix 2). The financial crisis have of
course affected the Danish travel industry after these figures, but Copenhagen Airport
17
reports a general healthy growth of international travels since the crisis hit Denmark.
A press release from Copenhagen Airport from February 2011 reveals a passenger
increase of 9,1 % in 2010, and without the Ash-cloud closing the European air space,
Copenhagen Airport would have exceeded the record year with the largest number of
travellers. The number of local passengers travelling internationally increased with
9,5% in 2010 (CPH, 2011).
As described, our concept primarily focuses on people, who are travelling to major
cities or to visit family and friends. Figures from 2009 (Appendix 3, Table 9) show the
purpose of the travel (min. 4 days), where it is seen that 17% of all outbound travellers are visiting family and friends, and 17% are going on city holiday. Comparable,
table 17 (Appendix 3) shows the same figures but for travels less than 4 days. Here
‘city travels’ and ‘visiting family and friends’ includes the majority of 54 % of the
travels.
Last but not least 32% of all these travellers are between 25-44, e.g. belonging to our
segment. This same age group uses an average of DKK 2.582 per every short travel
(less than 4 days) and DKK 8.118 per every longer travel, and they are thereby the age
group using more money on longer trips; 13% more than the age group 45-64. In 2008
the travel expenses were 2,6% of the total annual expenses in an average household
in Denmark (DST: Forbrugerundersøgelse 2009, 2010).
Overall this indicates a huge and increasing market of travellers within our segment,
and healthy buyer behaviour within this industry.
Holding these trends up against our Business Model, it is clear that comparing the
average travel expenses to the costs of the Sub City News service is very little. DKK
15,- (EUR 2,-) for the 1 month subscription is only 0,5% of the travel expenses for a
short travel and only 0,2% of the expenses for a longer travel (+ 4 days). Also it may
be evident to compare the price to the travel guidebooks, which you find in every
book store. Definitely, there is a market for these travel book, such as Lonely Planet
and the Danish “Politikken - Rejsen går til..”, and the price for such a book is approximately EUR 20,-, meaning 10 times the price of “Sub City News”.
Technology trends
Our segment’s use of the Internet is of course crucial and inevitable to determine,
whether our concept can be successful. General figures on the Danish people’s use of
the Internet provide a great overview of the technological trends.
Today the Internet is used for all kind of purposes, for instance communication, seeking information, gaming, e-purchasing etc. As seen in figure III the most popular is
writing and receiving emails. But while the growth of this diffusion is low, other applications are in a huge diffusion growth such as using social networking sites and
reading blogs.
18
Figure III: Trends in diffusion of selected forms of communication on the Internet. 2008-2009
(Danmarks Statistik: Befolkningens brug af internettet 2009, http://www.dst.dk/publikation.
Danmarks Statistik: Befolkningens brug af internet 2009
http://www.dst.dk/publikation.aspx?cid=14039
aspx?cid=14039)
In 2009, the amount of people reading blogs increased from 22% to 33%, at the same
time as the amount of active bloggers was doubled from 9% to 18%. The amount of
people reading or downloading online news increased from 62% to 74%, and 65%
used the Internet to search for information relating to travels or overnight stays.
Within the age group 20-39, there are some important numbers to be aware of. 44%
are reading blogs, while 26% is writing content for blogs, which is a relatively smaller group compared to the 16-19 years-old, but still much more than the average. 78%
of our target group reads online news and 68% searches for travel information online,
which also represents more than the average (DST: Befolkningens brug af internet
2009, 2010).
Again it must be emphasized that these figures are from 2009 and a huge increase has
without doubt changed the numbers’ applications and diffusion dramatically.
19
Macroeconomic Forces
Global market conditions
As you can read in the article “Who killed the newspaper?” from the economist website, the news market has experienced a bust in the last 10 years. According to the
Newspaper Association of America, the number of people employed in the industry
fell by 18% between 1990 and 2004. The New York Times share price had fallen by
nearly half between 2002 and 2006. And the situation is not going better since then.
Plus the world just went through a global economic crisis that does not help the market to recover from its bust.
Capital markets
As explained above, the news market is not doing well lately. Therefore, obtaining
funding now can be difficult. However, our service can be launched at a fairly low
price, which should help us find fundings.
Commodities and other resources
Human resources is key for our service. Since December 2009, the unemployment
rate in Denmark is decreasing, while the one for the journalism and communication
professions is increasing (DST Unemployment 2011 & Journalisten, 2009). This unemployment rate offers us the opportunity to employ the ‘right’ people.
Economic infrastructure
We are willing to launch our service in occidental Europe, meaning in one of the richest region of the world, where the quality of life is high and the density of culture is
probably the highest in the world. Most people are educated and the proportion of
English speaker travelers is already high. The occidental Europe market offers us the
highest ratio of customer (Human Development Reports, 2010).
20
Market Forces
The environment of our business is at midway between
news and travelling, our value proposition is about
news, while our customer segments are the travellers.
Market Issues
In the last ten years, the news market experienced a lot of changes. For a long time
people were used to pay for the paper version of the news. But since the explosion
of Internet and free blogging around the year 2000, news companies had to switch
their business model and offer a free online version of the news. The news market is
now following the trend of smartphones and tablets by offering free application on
these devices. Facebook also can play an important role in the evolution of the news
industry as seen in the article ‘How Facebook can change the news industry’ from
digitalmarketinginstitute.ie website. All these changes are positive for the reader,
since you can access what you used to read for free. But on the other hand, the news
industry is suffering from this evolution, as already described in the global market
conditions section.
Needs & Demands
As shown in the table 15 (Appendix 3) of the danish statistic of 2009, 81% of our segment prefers to organize their holidays by themselves. That means that they look for
information on websites or in travel guide books to pick up information on probably
any tourist attraction in the world. However, it’s not as easy to find sub news and
underground places as finding touristic places. Even if we don’t have data to back up
our theory, we believe that travellers not only want to see the attractive places, but
also want to go to the places that the locals go to.
Switching costs
The price of the subscription to a newspaper is quite small, which make the switching costs small as well. However, people usually read the same newspapers. That
means that the fidelity is really high in this market. Since we are offering a really
different type of news, we can’t say that the newspapers people already read are competitors. Meaning we are not suffering competition, but we can actually benefit from
the fidelity of these readers.
Revenue attractiveness
What people are really ready to pay for is convenience. For instance, the great success of Apple iPod is due to the convenient way to synchronize music between the
computer and the iPod using iTunes. Regarding the news industry, the major issue
is the volume of news produced. People can’t read all the news published on the
Internet. Mainstream news companies created categories and filtering to help people
select the news they might be interested in. By limiting our publications at one per
month, we expect to offer content that would interest the majority of our readers.
To make it simple, we make the selection for them, and we believe that’s the most
convenient way to read news and that people are ready to pay for this convenience.
21
References
CPH (2011)
Copenhagen Airport, press release 2011
http://www.cph.dk/CPH/DK/PRESSE/Nyheder/2011/Lavprisvaekst+hoejere.htm
http://www.cph.dk/CPH/DK/PRESSE/Nyheder/2011/Et+aar+med+vaekst.htm
retrieved April 12th 2011
DST Befolkningens brug af internet (2010)
Befolkningens brug af internet 2009,
published October 26th, 2009
http://www.dst.dk/publikation.aspx?cid=14039
DST Forbrugerundersøgelsen (2010)
NYT fra Danmarks Statistik, Forbrugerundersøgelsen 2007-2009,
published December 15th 2010
http://www.dst.dk/Statistik/Nyt/Emneopdelt.aspx?psi=404
DST Unemployment Rate (2011)
Unimployment rates for Journalists
http://www.statistikbanken.dk/ugdk/109900
Hofstede (2009)
Geert Hofstede
http://www.geert-hofstede.com/ ,
Human Development Reports (2010)
http://hdr.undp.org/en/statistics/data/
retrieved May 11th 2011
Journalisten (2009)
“Journalister dobbelt så arbejdsløse som gennemsnittet”, Øjvind Hesselager
published July 1st 2009
http://journalisten.dk/node/13337
retrieved May 11th 2011
Osterwalder & Pignuer (2009)
Alexander Osterwalder & Yves Pigneur
Business Model Generation, Self Published 2009, pp. 15-44
Saffer (2010)
Dan Saffer
Designing for Interaction, Second Edition: Creating Innovation Applications and Devices. New Riders,
pp.106-111
22
Appendix 1
Personas/segment
Of course everybody is invited to use the website/the app. However, we have decided
to define a specific target group/define the typical user and make the outlines about
their values in order to be able to make a website/app with the right design, language
etc.
Outlines about or segment in general
The archetypal users are:
20-40 years of age
Urban citizens
Travel 1-3 times per year
English language skills are medium/high
Regular/experienced users of the Internet
In the following section we will present three different personas, who are representative to our target group, and who cover the three different traveling types that we
have decided to work with. As suggested by Saffer (2010) we have included details
about their demography, and tried to capture some of their goals, passions and behaviour patterns.
1) René - going to a city for the first time
2) Michael - wanting to get information about a former residence.
3) Henriette - taking a short trip without knowing which destination yet
Persona - Michael - wanting to get information about a former residence.
Michael is a 26-year-old successful art director, who is in head of his own graphic design and communication business, in which he has five young and enthusiastic people employed. He lives a free single life in the Soho district in London in a big pent
house apartment. Michael loves having his friends and business partners over for
dinner parties every other evening, as he is quite a magician in the kitchen. He also
loves going out to the hippest clubs in town, but sometimes also just hangs around
in the local bar or ethnic restaurant. Michael gets around riding his white designer
bike or by shiny roller blades, and always brings along his camera in order to capture
exciting and appealing things that he meets on his way. Often he visits modern art
museums and galleries especially presenting young upcoming artists.
Michael is self taught as a graphic designer, but did attend some courses in international business in a business school in Copenhagen, Denmark, when he was in his
early twenties.The main reason why he went there was that he then had a Danish
girlfriend, that he went to go and live with. The relationship didn’t last, and neither
did he finish his education, so he went back home to London after two years to start
up his business. However, he became really fond of Denmark, and uses Sub City
News’ monthly issue to keep up with what’s going on on a regular basis. Especially
he got hooked on Copenhagen and the underground life there.
23
Persona – Henriette - taking a short trip without knowing which destination yet
Henriette is 29 years old and lives in Copenhagen. She is a Danish and English teacher at one of the finest schools, which the children of the royal family attend. However
she herself lives in a working/middle class area in the north west of the city. She
lives in a cheap apartment alone with her cat, but has a boyfriend (or should you say
a lover).
As a teacher Henriette is not payed very well, so she hasn’t got the money to travel as
much as she would like to. However, she does manage to save and go abroad twice a
year, mainly to other European cities, but she also likes to go on trips with a predefined content, such as opera, art exhibitions or modern ballet. Her last trip went to
Munich, where she watched the Stravinskij-opera “The Rake’s Progress” and visited
a friend of hers, who is studying art history. Her next trip she is uncertain where is
going to, but it shoul definetely be a reconciliation trip with her boyfriend/lover, she
thinks... She goes to Sub City News in order to get inspired, to see what’s moving
around in Europe, and to get information on upcoming events.
Apart from her travelling, Herniette doesn’t really spend that much money on herself.
Politically Henriette is around the middle, but politics doesn’t really interest her that
much, although it ought to, she thinks. She prefers though to spend her evenings
painting or seeing friends (or her boyfriend/lover) instead of watching the dull news
on the telly.
Persona – René - going to a city for the first time
René is a 36 year-old Canadian, who lives in the suburbs of Quebec with his wife,
Michelle, and their two 10-year-old twin daughters, Amélie and Julie. For a living he
is a computer engineer at a large international oil company, and both he and his wife
work many hours a week. Therefore they have hired a young Philippine au-pair, Elsi,
who is helping out with the kids and the daily household.
Next month René is going to visit his brother (who moved with his family to Copenhagen, Denmark three years ago) together with his family. The family is going to stay
for two months, and is eager to visit some of the popular tourist attractions. René has
been travelling a lot in Canada and the states with his job, but he hasn’t really had the
chance to go abroad before. Now the timing is perfect – he has been saving up a great
deal of money for the trip, the kids are older now and easier to travel with, and he
and his wife really need something new and positive to happen in their relationship
(since last year they almost split up due to a short affair he had with the neighbour’s
wife). They visit Sub City News’ website, read the in depth monthly issue, and get
oriented on interesting things to see in Copenhagen.
Politically René is an active democrat, and has considered running for election for
the local city council. Apart from this in his spare time René likes spending time
surfing on the internet, going fishing, reading novels (mainly classical American), occasionally drink home-brew-beers with the guys, and once in a while to go mountain
hiking with some old scout friends.
24
Appendix 2
TOTAL of Leisure Travels Min. 4 overnights aborad (outside DK)
# Travels
2005
2006
2007
2008
3.532.000
4.054.000
4.416.000
3.888.334
Top Destinations for min. 4 overnights aborad (outside DK) In percentage (%) Joined table from 4 different reports www.dst.dk Publications: NYT fra Danmarks Statistik Emnegruppe: Serviceerhverv
Ferie- & Forretningsrejser 2005 - 2008
2005: www.dst.dk/nytudg/7944 2006: www.dst.dk/nytudg/9272 2007: www.dst.dk/nytudg/10621 2008: www.dst.dk/nytudg/12289 25
Appendix 3
26
STATISTISKE EFTERRETNINGER
SERVICEERHVERV
2010:9
!
14. juli 2010
Ferie- og forretningsrejser 2009
Resumé Rejserne til udlandet gik typisk til Spanien og Italien, mens Region Nordjylland og Region Midtjylland var de mest valgte destinationer i Danmark, når danskerne tog på ferier med
mindst fire overnatninger. Danskerne foretrak at bo i sommerhus i Danmark og på hotel i udlandet.
Kort om statistikken: Statistikken er et led i en fælles EU-turismeundersøgelse. Den har til
formål at beskrive danskernes rejsemønster, hvad angår forretnings-, ferie- og fritidsrejser med
overnatninger uden for eget hjem. Herigennem belyses bl.a. den anvendelse af infrastruktur og
overnatningstilbud, som turismen giver anledning til. Endvidere opnås informationer om ferietype, turisternes aldersfordeling, rejsegruppens størrelse, rejsens organisation og turisternes
samlede udgifter ved rejsen. Pga. omlægning af undersøgelsen er der databrud, hvilket betyder,
at det ikke er muligt at sammenligne resultatet for 2008 og 2009 med tidligere undersøgelser.
Undersøgelsen omlagt
I 2008 gennemførtes en metodisk omlægning af undersøgelsen af ferie- og forretningsrejser. De væsentligste ændringer er, at der nu spørges deltaljeret til de seneste
tre rejser mod tidligere fem, at der spørges specifikt til besøg hos venner/familie og
ophold i eget sommerhus, samt at der ikke længere spørges tolv måneder tilbage for
de lange rejsers vedkommende (over fire overnatninger), men kun tre måneder tilbage.
Resultat
Grundet dette databrud forekommer antal rejser kun som procent-andele af den samlede population. Da alle procenttal afrundes, er det ikke altid muligt at summere til
100.
Oversigtstabel 1.
Antal ferie- og forretningsrejser i alt. 2009
Antal rejser
pct.
Ferierejser i alt
Korte ferierejser i alt
Ferierejser i Danmark med 1-3
overnatninger
Ferierejser i udlandet med 1-3
overnatninger
64
Lange ferierejser i alt
Ferierejser i Danmark med mindst
4 overnatninger
Ferierejser i udlandet med mindst 4
overnatninger
12
Forretningsrejser i alt
Forretningsrejser i Danmark
Forretningsrejser i udlandet
Flest lange ferierejser til
udlandet og flest korte
rejser i Danmark
100
7
16
100
38
62
Ud af det samlede antal ferierejser var de 16 pct. udlandsrejser med mindst 4 overnatninger, og 64 pct. var korte rejser i Danmark. 62 pct. af forretningsrejserne gik til
udlandet.
2 2010:9
Rejseudgifter størst
til udlandsrejser
Danskerne brugte i gennemsnit 5.188 kr. pr. rejse på lange rejser i 2009. Den gennemsnitlige rejseudgift til udenlandske rejser lå med 7.416 kr. pr. rejse noget højere
end udgiften til indenlandske rejser på 2.244 kr. pr. rejse. Se tabel 26.
Lange ferierejser i Danmark
Formål med ferierejsen
Når danskerne i 2009 holdt ferie i Danmark, tog 50 pct. i sommerhus. 35 pct. skulle
besøge familie og venner, og 6 pct. tog på naturferie. Se tabel 1.
Flest rejser om sommeren
Flest indenlandske ferierejser (55 pct.) foretages ikke overraskende i sommermånederne juni, juli og august. 80 pct. af rejserne havde en længde på 4-7 døgn. I gennemsnit havde man 7,43 overnatninger pr. rejse. Se tabel 2 og 3.
Det mest populære
danske rejsemål
En fjerdedel af alle ferierejser i Danmark gik til Region Nordjylland. Region Midtjylland og Region Syddanmark var også populære med 24 og 21 pct. af rejserne. Region
Hovedstaden havde færrest besøg med 10 pct. Se tabel 4.
Bilen det foretrukne
transportmiddel
På ferierejser i Danmark er det foretrukne primære transportmiddel uden sammenligning bil. 80 pct. af danskerne anvender bilen, når de rejser i Danmark. Det næstmest anvendte transportmiddel er toget, som blev benyttet på 11 pct. af rejserne. For
de 15-24-årige var fordelingen dog lidt anderledes. I denne aldersgruppe blev bilen
kun anvendt på 67 pct. af rejserne, mens tog og bus blev valgt på henholdsvis 17 og
11 pct. af rejserne. Se tabel 5 og figur 1.
Flest bor hos
venner og familie
Indkvartering hos venner og familie (inkl. lånt sommerhus) var den mest benyttede
indkvarteringsform med 39 pct. af de lange ferierejser i Danmark. Dernæst følger eget
feriehus med 26 pct., lejet feriehus med 18 pct. og camping med 9 pct. Se tabel 6 og
figur 1.
Figur 1.
Ferierejser i Danmark, indkvarteringsform og transportmiddel. 2009
90
Pct.
80
80
70
60
50
39
40
26
30
18
20
10
11
9
5
3
3
2
3
0
Hotel
Camping
Lejet
Eget Familie/ Andet
feriehus feriehus venner
Indkvarteringsform
Fly
Bil
Bus
Tog
Andet
Transportmiddel
Selvarrangerede
rejser dominerer
Kun 2 pct. af de indenlandske rejser var arrangeret af et rejsebureau. 98 pct. af rejserne var således selvarrangerede. Se tabel 7.
27 pct. rejser
med børn
På rejser i Danmark var rejsegruppens størrelse gennemsnitligt på 2,41 personer fra
den samme husstand. 27 pct. af rejserne var med børn under 15 år. De 25-44 årige
var den aldersgruppe, der oftest rejste sammen med børn. Således var 65 pct. af rejserne i denne gruppe med børn. Se tabel 8.
2010:9 3
Rejsegruppe bestod
typisk af to personer
fra samme husstand
Den typiske rejsegruppe bestod af to personer over 15 år fra samme husstand; det var
tilfældet på 42 pct. af rejserne. For personer på 65 og derover var den dominerende
tendens at rejse to fra husstanden (60 pct.), og for aldersgruppen 45-64 år var der to
personer fra husstanden på 61 pct. af rejserne. For aldersgruppen 15-24 år var 48 pct.
af rejserne uden følgeskab fra andre i husstanden. Se tabel 8.
Lange ferierejser i udlandet
Badeferier populære
Mange danskerne tager på badeferie, når de rejser til udlandet. Således tog 26 pct. af
sted på ferie for at bade. 17 pct. tog på storbyferie, mens 17 pct. besøgte venner og
familie. Se tabel 9.
Sommermånederne
mest populære
Sommermånederne juli og august var de mest populære rejsemåneder. 30 pct. af
samtlige rejser til udlandet blev foretaget i disse måneder. Juli måned var den mest
populære med 19 pct. af alle rejser. For de 15-24 årige tog 26 pct. på ferie i juli. For
de ældre på 65 år og derover var juni den mest populære rejsemåned med 15 pct. af
rejserne. Rejserne er generelt mere spredt over hele året for de ældres vedkommende.
Se tabel 10.
Hvor lange var rejserne?
61 pct. af udlandsrejserne havde en varighed på 4-7 døgn, og 25 pct. varede 8-14
døgn. De rejsende havde i gennemsnit 9,36 overnatninger pr. rejse. Se tabel 11.
Spanien var den
foretrukne destination
De tre mest populære rejsemål på de lange rejser til udlandet var Spanien (16 pct.),
Italien (10 pct.) og Sverige (8 pct.). For de ældre over 65 år er Sverige, Tyskland og
Norge de næstmest foretrukne rejsemål efter Spanien. Den mest populære destination uden for Europa er USA med 3 pct. af rejserne. Herefter kommer Thailand med 2
pct. af rejserne og Egypten med 1 pct. Se tabel 12 og figur 2.
Figur 2.
Ferierejser med mindst 4 overnatninger til udlandet. 2009
Spanien
Italien
Sverige
Frankrig
Tyskland
Norge
Grækenland
Østrig
Tyrkiet
Storbritannien
0
2
4
6
8
10
12
14
16
18
pct.
Fly mest anvendte
transportmiddel
Fly var det foretrukne transportmiddel på 62 pct. af udlandsrejserne. Derefter fulgte
bil med 26 pct. og bus med 6 pct. Se tabel 13 og figur 3.
Flest sov på hotel
På halvdelen af rejserne til udlandet var hotel den anvendte indkvarteringsform. Indkvartering hos familie og venner blev foretrukket på 20 pct. af rejserne og lejet feriehus på 9 pct. af rejserne. Vandrerhjem blev benyttet af 8 pct. af de 15-24 årige mod 12 pct. af de øvrige aldersgrupper. Se tabel 14 og figur 3.
4 2010:9
Figur 3.
Ferierejser til udlandet, indkvarteringsform og transportmiddel. 2009
70
Pct.
62
60
50
50
40
26
30
20
20
9
10
3
5
9
6
4
4
2
0
Hotel
Feriecenter
Cam- Lejet
Eget Familie/ Andet
ping feriehus feriehus venner
Indkvarteringsform
Fly
Bil
Bus
Tog
Andet
Transportmiddel
Næsten tre fjerdedele
arrangerede selv rejsen
I 2009 var 71 pct. af samtlige udlandsrejser selvarrangerede. For aldersgruppen over
65 år var der 39 pct., der købte en pakkerejser. Andelen af købte pakkerejser for de
øvrige aldersgrupper svingede mellem 19 pct. og 36 pct. Se tabel 15.
Hvor mange rejser
med børn?
Rejsegruppens størrelse var i gennemsnit på 2,21 personer fra samme husstand. 21
pct. havde børn under 15 år med på rejsen. Personer i aldersgruppen 25-44 år havde
dog børn med på 47 pct. af rejserne. Se tabel 16.
Rejseudgifter
Danskerne brugte i gennemsnit 7.416 kr. pr. person pr. rejse i på lange rejser til udlandet. Se tabel 26.
Korte ferierejser med 1-3 overnatninger
Ferierejsens formål
92 pct. af de korte ferier brugte danskerne primært til at besøge familie og venner
eller tage i sommerhus. På de korte rejser til udlandet var der 56 pct. i sommerhus og
besøg hos venner/familie. Også de udenlandske storbyer blev besøgt, idet 27 pct. af
rejserne havde storbyferie som rejsens formål, hvorimod kun 1 pct. af de korte rejser i
Danmark havde storbyferie som formål. Se tabel 17.
Flest korte rejser
i Danmark
De fleste korte rejser med 1-3 overnatninger blev afholdt inden for Danmarks grænser. Således blev 90 pct. af rejserne holdt i Danmark. Sverige og Tyskland er de mest
populære udenlandske feriemål med henholdsvis 4 pct. og 3 pct. af de korte rejser. Se
tabel 18.
De fleste tager bilen
På de korte rejser var det mest anvendte transportmiddel bil, som blev brugt på 75
pct. af rejserne. På de korte rejser i Danmark valgte danskerne bilen som transportmiddel på 76 pct. af rejserne, mens 15 pct. rejste med tog. Bilen og flyet var de oftest
anvendte transportmidler på de korte udlandsrejser med henholdsvis 63 pct. og 23
pct. Se tabel 19 og figur 4.
Mange overnatter hos
familie og venner
Indkvartering hos familie og venner og ophold i eget feriehus var med 85 pct. den
mest udbredte indkvarteringsform på de korte ferierejser efterfulgt af hotelovernatninger med 7 pct. På rejserne til udlandet var det oftest hoteller, der blev brugt som
indkvarteringsform med 38 pct. af rejserne, mens det på 25 pct. af rejserne til udlandet var familie og venner, som stod for indkvarteringen. Se tabel 20 og figur 4.
2010:9 5
Figur 4.
Ferierejser med 1-3 overnatninger, indkvarteringsform og transportmiddel. 2009
80
Pct.
75
68
70
60
50
40
30
17
20
10
7
2
2
14
4
4
3
4
0
Hotel
Camping
Lejet
Eget Familie/ Andet
feriehus feriehus venner
Indkvarteringsform
Rejseudgifter på 938 kr.
pr. person pr. rejse
Fly
Bil
Bus
Tog
Andet
Transportmiddel
I 2009 brugte danskerne gennemsnitligt 938 kr. pr. person pr. rejse. På de korte rejser
i Danmark blev der i gennemsnit anvendt 779 kr. pr. rejse, mens der blev anvendt
2.387 kr. pr. rejse til udlandet. Se tabel 26.
Forretningsrejser med overnatninger
Forretningsrejsens formål
28 pct. af rejserne blev foretaget i forbindelse med rådgivning eller undervisning,
mens en fjerdedel foretog forretningsrejser med uddannelse som formål. 20 pct. af
rejserne blev brugt som led i kontraktforhandlinger. Se tabel 21.
60 pct. af
forretningsrejserne
gik til udlandet
Sverige og Tyskland var de mest besøgte destinationer på forretningsrejser til udlandet i 2009. Rejser til de to destinationer udgjorde 21 pct. af alle forretningsrejser.
Rejser i Danmark udgjorde 38 pct. af alle forretningsrejser. Se tabel 22.
Bil eller fly på
forretningsrejsen
Generelt var fly det foretrukne transportmiddel på forretningsrejser, hvilket blev anvendt på 50 pct. af alle rejserne. Det næstmest benyttede transportmiddel var bil, som
blev anvendt på 38 pct. af rejserne. Flytransport blev typisk anvendt på forretningsrejser til udlandet (75 pct.), mens bilen blev foretrukket som transportmiddel på indenlandske forretningsrejser (70 pct.). På forretningsrejser i Danmark var toget det
næstmest brugte transportmiddel med 19 pct. af rejserne. Se tabel 23 og figur 5.
Hotellet foretrækkes på
forretningsrejser
Hotel blev benyttet på 88 pct. af alle forretningsrejserne i 2009. På forretningsrejser i
Danmark blev indkvartering hos familie og venner benyttet på 8 pct. af rejserne. På
forretningsrejser til udlandet blev hotel valgt på 93 pct. af rejserne. Se tabel 24.
6 2010:9
Figur 5.
Forretningsrejser med transportmiddel. 2009
Bil
38 pct.
Fly
50 pct.
Skib
2 pct.
Varighed og rejseudgifter
på forretningsrejserne
Tog
9 pct.
Bus
1 pct.
37 pct. af forretningsrejserne havde en varighed på 1 døgn, og 27 pct. varede 2 døgn.
Den gennemsnitlige rejseudgift pr. forretningsrejse til udlandet var 8.642 kr. Tilsvarende var den gennemsnitlige udgift 2.277 kr. pr. forretningsrejse i Danmark. Se
tabel 25 og 26.
Baggrundsoplysninger
Mere information
Der findes ikke mere detaljeret information.
Seneste offentliggørelse
Ferie- og forretningsrejser 2008 udkom 14. juli 2009 i serien Serviceerhverv 2009:9
(Statistiske Efterretninger).
Næste offentliggørelse
Ferie- og forretningsrejser 2010 udkommer primo juli 2011 i serien Serviceerhverv (Statistiske Efterretninger).
Henvendelse
Else-Marie Rasmussen, tlf. 39 17 33 62, [email protected]
Kilder og metoder
Læs mere i
varedeklarationen
På www.dst.dk/varedeklarationer/979 er der yderligere information om kilder og
metoder. Pga. metodeændringer i 2008 er sammenligninger med tidligere år ikke
mulig.
Undersøgelsens metode
Ændret spørgerskema
Undersøgelsen gennemføres ved telefoninterview spredt ud over alle årets måneder
og dage (mandag-søndag). Deltagerne i undersøgelsen er et tilfældigt udsnit af danskere på 15 år eller derover. I 2008 blev spørgerskemaet, der er grundlag for interviewundersøgelsen, ændret. Ændringen skete som følge af ønsket om at reducere
antallet af spørgsmål. Den væsentligste ændring er, at der nu spørges specifikt, om
man har været i eget sommerhus eller besøgt venner og familie. Tidligere blev der
spurgt om antal lange rejser et år tilbage. Nu spørges der kun tre måneder tilbage.
Herudover spørges der, om man har været på rejser med mindst en overnatning,
hvorimod der tidligere blev spurgt til, om man havde været på en rejse med mindst
fire overnatninger. Samlet set medfører disse ændringer, at der er et databrud mellem statistikken for 2007 og 2008.
2010:9 7
Ca. 1.500 gennemførte
interview pr. kvt.
Hver måned udtages der ved tilfældig udtrækning fra befolkningsregistret en stikprøve på ca. 750 personer. I gennemsnit gennemføres der ca. 500 telefoninterviews
pr. måned. De resterende 250 udtrukne indgår ikke i undersøgelsen, enten fordi telefonnummeret ikke eksisterer/virker/er aktivt, eller fordi personen ikke har ønsket at
deltage i undersøgelsen.
Der spørges tre
måneder tilbage
Respondenterne bliver spurgt tre måneder tilbage om henholdsvis lange rejser (+4
overnatninger), korte rejser (1-3 overnatninger) og forretningsrejser (+1 overnatning).
Opregning
Der spørges detaljeret til de tre senest afviklede rejser. hvis en interviewperson har
haft flere end tre rejser imputeres der ud fra oplysninger om personens tre oplyste
rejser.
Rejseoplysningerne er opregnet til befolkningsniveau inden for grupperinger af de
interviewede efter bl.a. køn, alder, familietype, familieindkomst og socio-gruppe.
Statistikkens omfang
Danskere på
15 år og derover
Undersøgelsen dækker ferie- og forretningsrejser, der er foretaget af danskere på
mindst 15 år.
Ferierejser
Ferierejser defineres som rejser, der har fornøjelser eller rekreation som det primære
formål. Herunder medtages sportsrejser, rejser for at besøge familie eller venner og
kulturelle rejser, herunder sprogrejser.
Ferierejserne opdeles i korte ferierejser med 1-3 overnatninger (typisk weekendrejser) og ferierejser med mindst 4 overnatninger.
Forretningsrejser
Forretningsrejser dækker individuelle rejser og grupperejser med henblik på deltagelse i møde, kursus eller konference Kombinerede ferie- og forretningsrejser regnes
som forretningsrejser, fordi rejserne næppe ville være foretaget uden forretningsrejseelementet.
For ledsagende ægtefæller mv. på forretningsrejser regnes rejsen som en ferierejse.
Undersøgelsens formål
Opfylder EU-direktiv
Siden 1996 har Danmarks Statistik gennemført undersøgelser af danskernes ferie- og
forretningsrejser med mindst én overnatning. Undersøgelserne foretages som led i en
fælles EU-turismeundersøgelse iht. Rådets direktiv 95/57/EF. Lignende opgørelser
udarbejdes i EFTA- og øvrige EØS-lande.
Beskriver danskernes
rejsemønster
Statistikkens formål er at beskrive danskernes rejsemønster for så vidt angår forretningsrejser og ferierejser med overnatninger uden for eget hjem. Herigennem belyses
bl.a. den anvendelse af infrastruktur og overnatningstilbud, som turismen giver anledning til. Endvidere opnås informationer om turisternes aldersfordeling, rejsegruppens størrelse, rejsens organisation og turisternes samlede udgifter ved rejsen.
Definitioner og afgrænsninger
Lange ferierejser
En lang ferierejse har en varighed på fire overnatninger eller derover.
Korte ferierejser
En kort ferierejse har en varighed på en til og med tre overnatninger.
Forretningsrejser
De forretningsrejser, der er medtaget i indeværende statistik, har en varighed på en
overnatning eller derover.
8 2010:9
En voksen dansker
En voksen dansker er en person på mindst 15 år.
Rejsemåned
Rejsemåneden er den måned, hvori rejsen påbegyndes, også selv om størstedelen af
rejsen måtte ligge i den efterfølgende måned.
Transportmiddel
Som transportmiddel er opgjort det transportmiddel, som hovedsageligt er anvendt
på rejsen.
Overnatningsform
Tilsvarende er overnatningsformen den hyppigste overnatningsform, der er benyttet
på rejsen.
Destination
Ved flere opholdssteder på rejsen er hoveddestinationen valgt. I tvivlstilfælde er benyttet den mest fjerntliggende destination.
Rejsens organisation
Under rejsens organisation skelnes mellem pakkerejser, hvor som hovedregel transport og overnatning er arrangeret af et rejsebureau eller lignende, og rejser som er
selvarrangerede.
Rejseudgifter
Rejseudgifterne omfatter udgifter, der er afholdt til og på rejsen. Hvis flere personer i
en familie er rejst sammen, er der ved ferierejser indhentet oplysninger om familiens
samlede udgifter. Den interviewedes rejseudgifter er derefter fundet ved division
med antal familiemedlemmer i rejsegruppen. Ved forretningsrejser er der indsamlet
oplysninger om personens samlede rejseudgifter, herunder også udgifter, som er
betalt af firmaet. Hvis respondenten ikke har kunnet svare på deres forbrug, er udgifterne skønnet ud fra oplysninger for tilsvarende ferie- og forretningsrejser.
2010:9 9
Tabeloversigt
Artiklen indeholder følgende tabeller:
Tabel 1.
Tabel 2.
Tabel 3.
Tabel 4.
Tabel 5.
Tabel 6.
Tabel 7.
Tabel 8.
Tabel 9.
Tabel 10.
Tabel 11.
Tabel 12.
Tabel 13.
Tabel 14.
Tabel 15.
Tabel 16.
Tabel 17
Tabel 18.
Tabel 19.
Tabel 20.
Tabel 21
Tabel 22.
Tabel 23.
Tabel 24.
Tabel 25.
Tabel 26.
Ferierejser i Danmark med mindst 4 overnatninger fordelt efter formål. 2009
Ferierejser i Danmark med mindst 4 overnatninger fordelt efter
måned. 2009
varighed. 2009
destination. 2009
primære transportmiddel. 2009
indkvarteringsform. 2009
rejsens organisation. 2009
rejsegruppens størrelse. 2009
Ferierejser i udlandet med mindst 4 overnatninger fordelt efter
formål. 2009
afrejsemåned. 2009
varighed. 2009
destination. 2009
primære transportmiddel. 2009
organisation. 2009
rejsegruppens størrelse. 2009
Danskernes ferierejser med 1-3 overnatninger fordelt efter formål.
2009
Danskernes ferierejser med 1-3 overnatninger fordelt efter alder.
2009
Danskernes ferierejser med 1-3 overnatninger fordelt efter primære
transportmiddel. 2009
Danskernes ferierejser med 1-3 overnatninger fordelt efter
Danskernes forretningsrejser med overnatninger fordelt efter rejsens
formål. 2009
Danskernes forretningsrejser med overnatninger fordelt efter alder.
2009
Danskernes forretningsrejser med overnatninger fordelt efter primære
Danskernes forretningsrejser med overnatninger fordelt efter
Danskernes forretningsrejser med overnatninger fordelt efter
varighed. 2009
Rejser og gennemsnitlig udgift pr. rejsetype. 2009
10 2010:9
Tabel 1.
Ferierejser i Danmark med mindst 4 overnatninger fordelt efter formål. 2009
Sommerhus
Badeferie
Storbyferie
Naturferie
Eventrejse
Besøg hos
venner og familie
Andet
2
35
4
pct.
Formål
Tabel 2.
50
2
1
6
Ferierejser i Danmark med mindst 4 overnatninger fordelt efter måned. 2009
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
32
19
100
pct.
Rejser
18
32
pct.
Måned
Januar
Februar
Marts
April
Maj
Juni
Juli
August
September
Oktober
November
December
Tabel 3.
100
100
100
100
100
3
4
2
3
7
13
28
9
5
7
3
14
1
2
2
6
6
12
37
7
4
10
1
11
2
3
1
8
6
13
27
15
3
9
3
9
2
3
3
6
10
16
24
14
6
7
2
7
2
3
2
6
7
14
30
11
4
9
2
10
Ferierejser i Danmark med mindst 4 overnatninger fordelt efter varighed. 2009
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
32
19
100
77
17
4
2
72
23
2
4
80
15
3
2
8,29
7,43
pct.
Rejser
18
32
pct.
Varighed
4-7 døgn
8-14 døgn
15-28 døgn
29 døgn og derover
84
13
3
0
85
10
3
2
overnatninger pr. rejse
Overnatninger pr. rejse
Tabel 4.
5,96
7,64
7,52
Ferierejser i Danmark med mindst 4 overnatninger fordelt efter destination. 2009
15-24 år
25-44 år
18
32
45-64 år
65 år og
derover
I alt
32
19
100
11
22
17
23
27
7
20
28
20
25
10
19
21
24
25
pct.
Rejser
pct.
Destination
Region Hovedstaden
Region Sjælland
Region Syddanmark
Region Midtjylland
Region Nordjylland
14
21
14
23
28
10
13
25
29
22
2010:9 11
Tabel 5.
Ferierejser i Danmark med mindst 4 overnatninger fordelt efter primære
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
32
19
100
1
89
0
9
2
0
1
82
5
7
5
1
2
80
3
11
3
1
pct.
Rejser
18
32
pct.
Transportmiddel
Fly
Bil
Bus
Tog
Skib
Andet
0
67
11
17
4
1
5
78
2
12
2
0
Anm.: Bil er inklusive motorcykel og autocamper.
Tabel 6.
Ferierejser i Danmark med mindst 4 overnatninger fordelt efter indkvarteringsform. 2009
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
32
19
100
3
1
7
1
1
0
20
34
32
2
6
2
6
0
1
7
13
24
38
1
3
2
9
0
1
1
18
26
39
1
pct.
Rejser
18
32
pct.
Indkvarteringsform
Hotel
Feriecenter
Camping
Vandrerhjem
Lystbåd
Højskole
Lejet feriehus
Eget feriehus
Familie/venner (inkl. lånt sommerhus)
Andet
0
2
11
1
1
0
13
25
48
1
3
4
11
0
0
0
22
19
40
1
Anm.: Overnatning i hytte og skihytte er placeret under ”Lejet sommerhus”.
Det samme gælder for lejet lejlighed, medmindre der er tale om en ferielejlighed, som er placeret under ”Feriecenter”. Lejet værelse er placeret under
”Andet.”
Tabel 7.
Ferierejser i Danmark med mindst 4 overnatninger fordelt efter rejsens organisation. 2009
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
19
100
pct.
Rejser
18
32
32
pct.
Pakkerejse eller gennem rejsebureau
Andet, herunder selvarrangeret
1
2
0
4
2
99
98
100
96
98
12 2010:9
Tabel 8.
Ferierejser i Danmark med mindst 4 overnatninger fordelt efter rejsegruppens
størrelse. 2009
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
32
19
100
pct.
Rejser
18
32
pct.
Antal personer fra husstanden
1
2
3
4
5
6 og derover
48
28
12
9
3
0
19
19
18
32
10
2
22
61
9
7
1
0
37
60
2
0
0
0
28
42
11
14
4
1
Rejser med børn
Rejser uden børn
10
90
65
35
13
87
0
100
27
73
personer fra husstanden
Gnsn. antal personer fra
husstanden i rejsegruppen
Voksne
Børn
Tabel 9.
1,9
3,02
2,06
2,46
2,41
1,78
0,12
1,81
1,21
1,88
0,18
2,45
0,01
1,94
0,47
Ferierejse i udlandet med mindst 4 overnatninger fordelt efter formål. 2009
Sommerhus
Badeferie
Skiferie
Storbyferie
Naturferie
Kursus og
uddannelse
Venner og
familie
Eventrejse
Andet
1
17
3
7
pct.
Formål
Tabel 10.
6
26
9
17
14
Ferierejser i udlandet med mindst 4 overnatninger fordelt efter afrejsemåned. 2009
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
40
13
100
pct.
Rejser
15
32
pct.
Afrejsemåned
Januar
Februar
Marts
April
Maj
Juni
Juli
August
September
Oktober
November
December
100
100
100
100
100
4
11
3
6
4
6
26
18
8
10
1
4
4
9
7
6
7
6
25
10
8
7
4
8
5
9
7
7
9
6
15
10
9
10
5
9
5
5
4
7
12
15
11
10
8
8
8
7
5
9
6
7
8
7
19
11
8
9
4
7
2010:9 13
Tabel 11.
Ferierejser i udlandet med mindst 4 overnatninger fordelt efter varighed. 2009
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
40
13
100
65
25
8
3
57
27
13
4
61
25
9
3
9,97
9,36
pct.
Rejser
15
32
pct.
Varighed
4-7 døgn
8-14 døgn
15-28 døgn
29 døgn og derover
60
29
8
4
60
27
11
2
Overnatninger pr. rejse
Tabel 12.
9,39
9,44
9,08
Ferierejser i udlandet med mindst 4 overnatninger fordelt efter destination. 2009
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
40
13
100
19
8
10
6
8
4
6
3
4
4
6
1
2
1
2
2
1
1
0
0
12
16
6
7
8
8
8
4
4
2
7
2
0
3
0
0
2
1
3
2
0
17
16
7
10
8
7
6
5
4
3
5
4
0
1
1
1
2
1
2
1
1
14
pct.
Rejser
15
32
pct.
Destination
Spanien
Frankrig
Italien
Sverige
Tyskland
Norge
Grækenland
Storbritannien
USA
Østrig
Tyrkiet
Polen
Portugal
Tjekkiet
Egypten
Thailand
Holland
Schweiz
Bulgarien
Ungarn
Andre destinationer
12
8
9
6
9
9
4
9
2
4
4
0
0
5
0
1
2
2
1
0
13
14
8
12
11
4
6
6
4
3
5
3
0
1
1
2
1
1
2
0
1
15
14 2010:9
Tabel 13.
Ferierejser i udlandet med mindst 4 overnatninger fordelt efter primært
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
40
13
100
66
27
4
2
1
0
54
21
17
4
4
0
62
26
6
4
1
1
pct.
Rejser
15
32
pct.
Transportmiddel
Fly
Bil
Bus
Tog
Skib
Andet transportmiddel
54
21
11
11
2
1
63
31
2
3
0
1
Anm.: Se anmærkning til tabel 5.
Tabel 14.
Ferierejser i udlandet med mindst 4 overnatninger fordelt efter indkvarteringsform. 2009
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
40
13
100
57
3
4
1
0
10
7
2
14
3
61
1
4
2
0
5
6
1
19
1
50
3
5
2
1
9
4
1
20
3
pct.
Rejser
15
32
pct.
Indkvarteringsform
Hotel
Feriecenter
Camping
Vandrerhjem
Lystbåd
Lejet feriehus
Eget feriehus
Skib
Familie/venner
Andet
47
7
8
8
0
4
1
0
22
4
40
3
6
1
2
13
2
1
27
5
Tabel 15.
Ferierejser i udlandet med mindst 4 overnatninger fordelt efter organisation. 2009
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
40
13
100
36
64
39
61
29
71
pct.
Rejser
15
32
pct.
Pakkerejse eller gennem rejsebureau
Andet, herunder selvarrangeret
24
76
19
81
2010:9 15
Tabel 16.
Ferierejser i udlandet med mindst 4 overnatninger fordelt efter rejsegruppens
størrelse. 2009
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
40
13
100
pct.
Rejser
15
32
pct.
Antal personer fra husstanden
1
2
3
4
5
6 og derover
53
20
10
11
4
2
27
26
12
27
6
2
19
64
6
8
2
1
35
65
0
0
0
0
29
45
8
13
3
1
Rejser med børn
Rejser uden børn
13
87
47
53
11
89
0
100
21
79
1,65
1,65
0,00
2,21
1,85
0,36
personer fra husstanden
Gnsn. personer fra husstanden
i rejsegruppen
2,07
1,90
0,17
Voksne
Børn
Tabel 17.
2,63
1,78
0,86
2,12
1,96
0,17
Danskernes ferierejser med 1-3 overnatninger fordelt efter formål. 2009
Sommerhus
Badeferie
Storbyferie
Naturferie
Venner og
familie
Kroferie
Eventyr
Andet
68
72
27
1
0
1
1
0
4
2
2
7
pct.
Rejser i alt
Rejser i Danmark
Rejser i udlandet
Tabel 18.
24
24
29
0
0
1
3
1
27
1
1
4
Danskernes ferierejser med 1-3 overnatninger fordelt efter alder. 2009
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
33
12
100
pct.
Rejser i alt
24
32
Rejser i Danmark
93
89
89
91
90
Rejser til udlandet
Heraf til:
Sverige
Tyskland
Norge
Storbritannien
7
11
11
9
10
3
2
0
1
5
3
0
1
5
3
1
1
5
3
1
0
4
3
1
1
pct.
Overnatninger
Rejser i alt
…
…
…
…
1,65
Rejser i Danmark
Rejser i udlandet
…
…
…
…
…
…
…
…
1,59
2,11
16 2010:9
Tabel 19.
Danskernes ferierejser med 1-3 overnatninger fordelt efter primært transportmiddel. 2009
Transportmiddel
Fly
Bil
Bus
Tog
Skib
Andet
pct.
Rejser i alt
Rejser i Danmark
Rejser i udlandet
3
75
4
14
1
3
1
23
76
63
4
4
15
5
1
5
3
1
Anm.: Se bemærkning til tabel 5.
Tabel 20.
Danskernes ferierejser med 1-3 overnatninger fordelt efter indkvarteringsform. 2009
Indkvarteringsform
Hotel
Feriecenter
Campingplads
Lejet
feriehus
Eget
feriehus
Vandrehjem
Familie og
venner
Andet
pct.
Rejser i alt
Rejser i Danmark
Rejser til udlandet
7
1
2
2
17
1
68
2
4
38
0
2
2
2
2
3
16
21
1
3
73
25
2
6
Tabel 21.
Danskernes forretningsrejser med overnatninger fordelt efter rejsens formål. 2009
Formålet med rejsen
I alt
Rådgivning eller
undervisning
Kontraktforhandlinger
Uddannelse mv.
EU-rejser
Andet
pct.
Rejser i alt
100
28
20
25
0
27
Rejser i udlandet
100
27
23
22
0
28
Rejser i Danmark
100
30
14
31
0
26
2010:9 17
Tabel 22.
Danskernes forretningsrejser med overnatninger fordelt efter alder. 2009
15-24 år
25-44 år
45-64 år
65 år og
derover
I alt
49
2
100
andel
Rejser i alt
3
47
rejser
pct.
Rejser i Danmark
49
38
38
55
38
Rejser til udlandet
Sverige
Tyskland
Norge
Storbritannien
Polen
Indien
Holland
Spanien
USA
Kina
Andre lande
51
0
18
11
0
0
0
0
0
0
0
22
62
12
9
5
4
0
6
4
3
3
1
15
62
11
9
5
6
6
0
1
1
1
3
19
45
0
7
0
7
0
0
3
0
0
3
25
62
11
10
5
5
3
3
2
2
2
2
17
Overnatninger
Rejser i alt
2,04
2,95
3,07
3,30
2,99
Rejser i Danmark
Rejser i udlandet
1,25
2,79
1,47
3,85
2,09
3,67
1,51
5,45
1,75
3,76
Tabel 23.
Danskernes forretningsrejser med overnatninger fordelt efter primært
Transportmiddel
Fly
Bil
Bus
Tog
Skib
Andet
pct.
Rejser i alt
50
38
1
9
2
0
Rejser i Danmark
Rejser i udlandet
9
75
70
18
1
1
19
3
1
3
0
0
Tabel 24.
Danskernes forretningsrejser med overnatninger fordelt efter indkvarteringsform. 2009
Indkvarteringsform
Hotel
Konferencecenter
Familie og venner
Andet
Rejser i alt
88
4
4
4
Rejser i Danmark
Rejser i udlandet
80
93
9
0
8
2
3
5
pct.
18 2010:9
Tabel 25.
Danskernes forretningsrejser med overnatninger fordelt efter varighed. 2009
Antal overnatninger
3
4-7
8 og
derover
27
13
16
7
24
28
8
16
9
21
0
11
45-64 år
65 år og
derover
I alt
1
2
Rejser i alt
37
Rejser i Danmark
Rejser i udlandet
59
24
pct.
Tabel 26.
Rejser og gennemsnitlig udgift pr. rejsetype. 2009
15-24 år
25-44 år
pct.
Rejser
Rejser i Danmark
Rejser i udlandet
3
4
3
47
46
47
49
48
49
2
3
1
100
100
100
Korte rejser i alt
Rejser i Danmark
Rejser i udlandet
24
24
17
32
31
35
33
32
38
12
12
10
100
100
100
Lange rejser i alt
Rejser i Danmark
Rejser i udlandet
16
18
15
32
32
32
36
32
40
16
19
13
100
100
100
kr./rejse
Udgifter
Rejser i Danmark
Rejser i udlandet
…
282
705
6 235
2 513
8 508
6 281
2 142
8 787
7 054
3 662
11 150
6 195
2 277
8 642
Korte rejser i alt
Rejser i Danmark
Rejser i udlandet
…
721
159
980
784
2 582
986
850
2 056
1 001
686
4 252
938
779
2 387
Lange rejser i alt
Rejser i Danmark
Rejser i udlandet
…
206
705
5 671
2 455
8 118
5 259
2 239
7 115
4 503
2 060
7 071
5 188
2 244
7 416
SERVICEERHVERV 2010:9
Statistiske Efterretninger
ISSN, 1601-0965
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Innovation, concept development and project management F2011
Individual essay on innovation
Teacher: Nalini Kotamraju
Camil Manuel Hesse, 21.11.75, [email protected]
Word count: 3391
Table of contents
Keywords
page 2
Introduction
page 2
Thesis statement
page 3
Asking the right questions when innovating
page 3
Three focal areas for the business model
page 6
“Design-driven innovation”: an innovation typology
page 8
Conclusion
page 10
References
page 11
1
Keywords
Innovation, design, “Design-driven innovation”, marketing, innovation typology,
radical, incremental, business model
Introduction
“It is not surprising that, having created a successful company by making a superior
product, management continues to be oriented toward the product rather than the
people who consume it” (Levitt 1960:107).
In his article from 1960 Theodore Levitt advises companies to focus more on and
understand their customer’s needs. It is the quote above that reflects my curiosity on
the designer’s influence and role of adding value to products and fully understanding
customer trends and needs. There are some crucial questions that get unleashed,
once you lift the lid of the innovation jar. Questions such as who is the customer and
what does she need? How can we create value for that customer? Does the value
emerge out of the product or does the value lie in the way it is purchased? It seems
that arguments, which follow op on these questions, add new dimensions to the
idea - makes the idea complete. I believe that a really good idea or a strong concept
must be embedded in an innovative business structure that not only oversees all the
assets of the product, but also increases all likelihood of succeeding and fosters longterm customer relations. So when my group from this course set out to give birth to
a new “News-concept”, we discovered early that the underlying business principles
were the real corner stones of the product.
Roberto Vergati calls it “Design-driven innovation” (Verganti, 2009) and is not merely
a method of adding innovation to a design product. To me it is more of an attitude
towards product development, by asking uneasy questions and revealing solutions
out of the ordinary. It seeks the completeness of all the aspects of a product; it’s
longevity and sustainability (Verganti, 2009). With “Sub City News” we did just that.
“Sub City News” is a web-based news service that is, like a magazine, issued every
month and covers the local news in a range of cities across Europe. Local units in
these travel destinations have established networks to bloggers and photographers
2
who provide the rest of the world with interesting and nuanced sub- and cultural
news.
The purpose of this essay is to illuminate the innovativeness of “Sub City News” and
the relation of the value proposition and role of the customer. In the first part I will
look at theory, which proposes that by asking the right questions, the answers will
challenge the conventions of the markets. In the second part I will capture the key
parts of the business model of “Sub City News” and argue that the business structure
that surrounds the product indeed is the catalyst for the innovation of the project,
rather than the product itself. Finally I would like to reflect on the depth and
saturation of innovativeness of this News-project and try to identify its typology.
The course readings I have chosen for my arguments are concerned with finding true
product value and call out for the use of creative visions and organisational structure.
The writings include Theodore Levitt’s (1960) “Marketing Myopia”, Roberto Vergati’s
(2009) “Design-Driven Innovation: Changing the Rules of Competition by Radically
Innovating What Things Mean” and Ed Catmull’s (2008) “How Pixar Fosters
Collective Creativity”. I also use Garcia & Calantone’s (2002) “A critical look at
technological innovation typology and innovativeness terminology: a literature
review” in order to discuss the innovation typology of “Sub City News”.
Thesis statement
What are the innovation characteristics of “Sub City News” and what innovation
typology can be applied to the concept?
Asking the right questions when innovating
Whenever a new product surfaces, it can only successfully exist, if there is a buyer on
the other side. So the goal is to establish the right reason for the product to exist. By
asking “What business are you really in?” Theodore Levitt criticises major industries
failing to recognise the customer needs that should precede a products value
proposition. In every industry, for every product and for every group of customers,
we (as manufacturers, designers, etc.) need to ask a series of questions, which shall
3
help to reveal the needs and existences of these products (Levitt, 1960). Who are we
producing for? What are our customers’ needs? What value does our product have
and what purpose does it serve? Successfully answering these questions will lay the
foundation for future iterations and turns in the concept development. Levitt accuses
growth industries of not legitimising the values of their products and thereby asking
the wrong questions. The unchallenged focus on the products, rather than the
customers, shortens the innovation cycle and freezes opportunities of growth.
“In truth, there is no such thing as growth industry, I believe. There are only
companies organised and operated to create and capitalize on growth opportunities.
Industries that assume themselves to be riding some automatic growth escalator
invariably descend into stagnation” (Levitt 1960:101).
Described companies have over the years acquired a set of beliefs, which according
to Levitt must be challenged and reorganised every now and then. These beliefs
include notions of growth assurance by an expanding and affluent population, no
competitive substitute to the industries leading products, declining unit costs or too
much faith in mass production. But how do these companies answer these
questions? Substantial money is used for user surveys, market analyses or industry
prognostics, but unfortunately on the base of existing challenges and current sets of
expectations. Marketing, so Levitt empowers a company to shift the focus from the
product to the customer. “The seller takes cues from the buyer in such a way that
the product becomes a consequence of the marketing effort, not vice versa” (Levitt
1960:104). Even though it seems that today marketing no longer is absent in all of
industry, it still fails to analyse the customer’s needs and apply them to the product
values. So the key points of Levitt’s effort stand: today we call the solution “Designdriven innovation” (Verganti, 2009). Where as marketing in these days tries to create
needs for the customer and persuade her into buying the product, “Design-driven
innovation” implies the process of understanding the customer and encourages the
creation of products on the base of that knowledge.
Roberto Verganti talks about the role of design in research and development
departments of technological companies - “kingdoms of engineers and scientists.”
4
“High-tech companies may acknowledge that design is eventually useful for
designing a proper user interface, thus making a technology more accessible, and for
wrapping the technology core in a nice box, but nothing more” (Verganti, 2009:78).
He argues that the implications for products, which do not uncover their meanings,
are profound in order to compete along products that emerge companies, where
“design-driven innovation” is part of a daily routine. It is in the hands of the designer
to imply meaning to the value of a product. In this context he mentions products like
the Nintendo Wii, Apple’s iPod, Diesel jeans or the Swatch, who all interpreted the
meaning of the products core in a new and genuine way. For products with
renewed meaning or changed metaphor Verganti explains that they escape the laws
of imitation and obsolescence. “(…) even tough competitors may imitate and
surpass the innovations’ functions, they cannot replicate their meanings” (Verganti,
2009:106). There are several reasons for incumbents not to ask the right questions.
The notions of meaning, not driving competition in the industry, and design, being
solemnly interesting for markets for luxury products, are according to Verganti some
of the most common reasons. Some companies might even be scared to ask
questions along these lines. Others simply haven’t got the skills to implement these
ideas or know where to start. The Danish Hi-fi and TV manufacturer Bang & Olufsen
has, after being a leading player on the market for many years, missed out on the
creation of new meanings of its products and adapting to changing customer needs.
The future of their products reveals different sets of values, which have already
emerged. This process requires risk taking and will award those, who take on the
challenges of radical innovation.
I see close connections between Levitt’s asking questions and Verganti’s search for
meaning to ensure products sustainability and competitiveness in the future. To
Levitt the key argument is to shift the focus from the product to the customer,
where as Verganti’s quest for meaning, implies a process of turning the inside out.
To do so, they both call out for creative powers. Call it marketing or design – over
the course of half a century, these are merely minor differences, but the key role of
shifting focus and navigating to new territory remains. This unforeseen newness acts
as the perpetrator for the saturated and conservative market and often has “gamechanging” consequences for these companies. New meanings like that often leave a
5
trail of believing customers, celebrating a new age of consuming the old in a new
and fashionable style. As for “Sub City News”, the group has tried to cluster around
some of these ideas and challenge existing concepts of accessing news and people’s
behaviours for seeking information about travelling. I will get to those in the next
section.
By reflecting on the words of Levitt and Verganti the meaning or value of a product
should derive from the progression of the customer needs. The use of creative
forces, which fully understand the complexity of this process, is of crucial importance
to the whole company. Further, the continuous focus on the superior product and
the ignorance towards market shifts can cause stagnation or rapid decline. In the
next section I will outline the roles of the creation process of the concept and the
business model in the light of “Design-driven innovation”.
Three focal areas for the business model
For the concept development of “Sub City News”, we had to embark on finding a
common layer of interest for all the five group members, who in fact each have their
own background and speciality. We also needed to figure out how to get a hold on
that “News business”, not only from a creative point of view, but also from an
understanding the logistics and the market mechanisms perspective. The News
industry, like so many others, has its own conventions and predefined settings, on
how distribution, advertising and moneymaking effectively are conducted by the
major game-players. Despite the industries astonishing size, renewal occurs with only
moderate speed in the pace of the evolving technology that carries the media. It is in
this minefield we (the group) set out to find a gap, a pocket or loophole that would
grant us access to this universe of giants. We needed to learn about, who is
producing News at which costs and how do we pay for it. We quickly understood
that every cent the concept tries to earn, advertisements would distract from the
main purpose, which obviously is communicating News. An early state of an idea
about local news, while travelling seemed intriguingly interesting, yet containing
enough options for the team to hold on to that subject.
6
As the project development evolved, we started to concentrate on a few particular
focal areas. The most distinct one describes sets of independent teams spread across
Europe (potentially the whole globe), which are handling their own local branch,
while serving a greater purpose - “Sub City News”. This structure supports
decentralised units having the freedom of organising and producing their own
content, contributing to a pool of wisdom and practise throughout the whole
organisation. Ed Catmull describes the learning and creating environments at Pixar
Studios, where interdisciplinary teams openly foster and develop ideas for their
feature animation movies (Catmull, 2008). The goal is to nurture trust and loyalty
within these groups by allowing honest feedback in discussion sessions. The result is
a vibrant community of talented workers unleashing their creativity. So from an
innovation point of view the project aims to create a fertile ground for the individuals
of the whole company, to take part in the creation process and establish a sense of
belonging. Similarly to Pixar Studios, it is the management’s goal and responsibility
to find individuals who will work effectively together. Hopefully these efforts will
result in a steady push and evolvement of “Sub City News”, to guarantee and prevail
a leading role on all the aspects of producing local news for travellers.
Another focal area is the magazine like web publishing with monthly issues. In the
work process of the group, we used the term “un-breaking” the News (as opposed
to “Braking News”) as a metaphor to make News last longer. By removing the daily
pressure of publishing fresh content, we unburden the content producers and
provide an atmosphere less goal-, but process oriented. This leaves room for deeper
and more thorough engagement into the covered subjects and allows the staff and
the connected creative forces to share ideas and find a culture of mutual respect and
interests. Without comparing the production of web content and a computer
animation feature film, I would like to refer once more to the practises at Pixar
Studios. Catmull describes a peer culture, where the leading directors of projects
when looking for advice, submit unfinished work to their colleagues in order to
receive their unvarnished expertise and everyone is encouraged to comment
(Catmull, 2008). He continues that their learning process included the learning of a
crucial dynamic: “(…) it’s up to the director of the movie (…) to decide what to do
with the advice; there are no mandatory notes, and the brain trust has no authority”
(Catmull, 2008:6). “Sub City News” has no internal structure planning “brain trust”
7
sessions, but aims at a working platform that provides the space and time where
peer culture and interdisciplinary meetings are more likely to occur.
The third focal area is the customer subscription. Initially we wanted to, like many
other web services, operate at no costs for the user. We realised that the vast
amount of advertisement would disturb and even threaten the writers’ and
producers’ integrity and authenticity. To avoid this, we decided to move on with
both a “free”, current version and a subscription-based version. The “free” version is
available to all, only covering the current month with no access to past issues. Since
it is for free, the customer must accept concessions regarding advertisements, which
are distributed according to a manual that favours local and relevant advertisers,
such as cultural institutions or travel related organisations. The subscription-based
version is commercial free, thus rewarding the customer with the full and
undisturbed version of the product. We developed the belief of frequent customers
seeking high quality content and by that support the independent work, which is
provided by the local creative forces.
These focal areas define the foundation of the concept, its principles and innovative
assets. So the business model that contains all of these features not only focuses on
the product (the website), but largely on the entire structure of the organisation. All
of the mentioned aspects harbour certain flexibility: the subscription price is
adjustable, the size of every unit and the amount of destinations is scalable and
finally the timely intervals of publishing can be altered. I see this flexibility as armour
for the vulnerability of the product that like a boat at sea is swayed back and forth
by the strengths of the market forces. Its protection enforces the longevity and
sustainability of “Sub City News”. The next section asks for the level of
innovativeness of that flexibility and I will discuss the typology of innovation of “Sub
City News” in the context of Garcia & Calantone’s definition of innovation and
Verganti’s position on “Design-driven innovation”.
“Design-driven innovation”: an innovation typology
It is not so much out of curiosity, but more through my notion of associated theories
that I in this section would like to commit to the innovation typology for “Sub City
8
News”. My intent is to discuss and compare these theories and reflect on the
innovativeness of our News project. For that purpose I will revive Verganti’s position
on “Design-driven innovation” and also introduce Garcia & Calantone’s discourse on
the definition of innovation and innovation typology. The point of this discussion
should not be to prove either wrong, but serve the purpose of understanding the
group’s own process of this Endeavour. With both the News- and travel market
being established over many years, we have urged ourselves trying to be
unconventional in the approach to this assignment. As I have described it in the
second part of this essay, we have introduced innovative parts to the business model
not in the field of new technology, but of structural and organizational nature.
In order to reach a higher understanding of the concept of innovation I want to
make use of Garcia & Calantone’s definitions of the terminology of that concept: “A
discovery that moves from the lab into production, and adds economic value to the
firm would be considered an innovation. (…) is diffused to other parties beyond the
discoverers” (Garcia & Calantone, 2002:112). The term “innovativeness” describes
the measure of the degree of “newness” of an innovation. Garcia & Calantone
continue on the subject explaining the difference of “macro and micro perspective”.
“The distinction between macro and micro perspectives is important as it identifies
newness of an innovation to whom and from whose perspective” (Garcia &
Calantone, 2002:118). Macro discontinuities are recognized throughout entire
industries or markets, while micro perspective views product innovativeness as
merely new to the company or the company’s customers. The typology for
identifying innovations is divided into “radical, really new and incremental
innovations”. Radical and really new innovations cause discontinuity on both macro
and micro level, where incremental innovations are only seen from micro
perspectives (Garcia & Calantone, 2002). So according to these definitions, the
innovativeness of “Sub City News” would at most be an incremental innovation,
giving the customer a renewed experience of reading local news. Verganti argues
that “Design-driven innovation” throughout is of radical typology, declaring new
meaning and values to products and/or customer’s experience (Verganti 2009).
With our project we have tried to bridge over the gap that separates the work of the
designer, creating a product, and the management, trying to implement it into
9
production and create a business model around it. This of course goes unnoticed by
the customer, which doesn’t mean that it does not have an impact on the product. I
believe that structural adjustments and changes in comparison to competing
products standards are the base of innovative work. As designers we have tried to
view the product, the customer experience and the business structure as a whole.
Pointing to Verganti I declare the efforts made around “Sub City News” as being
design-driven, yet not radical enough to shift an entire industry or market.
Conclusion
The readings of Theodore Levitt and Roberto Verganti provide a solid base for the
understanding of how design plays a key role in a company’s success or failure. The
quality of the product derives from the thorough understanding of its value and the
progression and evolvement of customer needs. They argue that the use of creative
forces, which fully understand the complexity of this process, is of crucial importance
to the whole company. A predominant focus on superior products instead of
understanding changes in the market can cause stagnation or rapid decline.
By asking what the innovation characteristics of “Sub City News” are, I want to
highlight the conceptual features we have created. The business model contains
three focal areas, which provide the foundation of the concept and its innovative
assets. All of the mentioned aspects, which are located on a structural level of the
organisation, contain certain flexibility. Subscription price, size of the work force of
each unit, the amount of destinations and the publication intervals can be altered
and adjusted taking market shifts or different customer needs into consideration. We
as a group hope that these innovation assets can enforce the longevity and
sustainability of “Sub City News”.
To the question of what innovation typology can be applied to the concept of “Sub
City News”, the answer according to Garcia & Calantone is an incremental type of
innovation. Yet we have tried to view the product, the customer experience and the
business structure as a whole, which points towards Verganti’s design-driven
direction. Nevertheless I see the concept as not being radical enough to shift an
entire industry or market.
10
References
Catmull, E. (2008). “How Pixar Fosters Collective Creativity” Harvard Business Review,
pp. 1-11.
Garcia, R. & Calantone, R. (2002). “A critical look at technological innovation
typology and innovativeness terminology: a literature review” The Journal of Product
Innovation Management 19, pp. 110-132.
Leavitt, T. (2006 [1960]). “Marketing Myopia” Best of HBR 1960, Harvard Business
Review, pp. 97-111.
Verganti, R. (2009). “Technology Epiphanies: The Interplay Between Technology Push
and Design-Driven Innovation” and “The Value and the Challenge: Why Companies
Do or Do Not Invest in Design-Driven Innovation” Design-Driven Innovation:
Changing the Rules of Competition by Radically Innovating What Things Mean,
Harvard Business Press, pp. 59-87 and pp. 90-111.
11

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