SAC Research

In Iceland an internet-based reservations-database for tourist-based farmers has been developed as part of the wider UD project.  An increasingly large proportion of marketing and sales in the agri-tourism sector is being conducted directly to consumers using the internet rather than through traditional channels (such as contracts with travel agents).  It was therefore becoming increasingly important for the marketing of the service to be ever-present, being at the right place, at the right time - for the customer.

With increased competition in the selling of tourism services in Iceland it is was essential for the farm-based tourism operators to offer economical, accessible and safe sales methods to their potential customers.  As micro enterprises, tourist-based farmers need, more than most, a co-ordinated business system (a sales system) where customers can tailor their purchases specific to their individual needs. In order to capitalise on their unique selling point it is essential that a co-ordinated, collaborative approach be taken to the marketing and selling the “Icelandic Farm Holidays” (a co-operative) brand.

Icelandic Farm Holidays currently sell the services provided by tourist-based farmers, dealing with travel agents and taking care of other marketing ventures. The RuBIES research in Iceland however identified (through their survey of farmers) that tourism customers are increasingly utilising the internet to plan and purchase their holiday experience. However, the marketing position of individual tourist-based farmers has been weak due to the cost of promotional material, marketing, internet connection, etc.

It became clear during the research phase that tourist-based farmers lacked an inexpensive and co-ordinated reservations system.  During consultations with the group it was established that a reservations database for tourist-based farmers which co-ordinated information about accommodation availability was needed in order to adapt to this new market environment and reap higher returns through direct sales.  The expected advantages of such a database that were identified during consultations included:

• a clear, accurate representation of all accommodation offered by tourist-based farmers
• a fast, secure and nearly automatic sales processes
• reduced marketing/sales costs per reservation

The tool uses the internet as the interface for both tourist-based farmers and their clients, with the reservations database being at the core.  The system is reliant on the tourist-based farmer using the system to manage all their bookings as it collects information of unsold accommodation (and other services provided) in real time.  This means that customers using the system have the current accommodation availability displayed to them continually and do not have to experience time delays in the booking process as availability is checked.  The RuBIES project has developed this internet-based interface, and reservations database, which enables tourist-based farmers to up-load their information into the system, and check accommodation availability should customers come through other routes (e.g. at door sales). A diagrammatical representation of the tool can be seen in figure 3.  The tool was designed so that the only mode of communication required between the customer (tourist) and the supplier (farmer) is the internet.
It is anticipated that once fully functional the tool will decrease the marketing costs, create a collaborative marketing brand and shorten the work process for tourist-based farmers.  The system works by collecting information about unsold (stock) accommodation and other services provided by tourist-based farmers in real time in order to improve the possibilities of customers to buy services directly from tourist-based farmers in rural areas. The tool should create a modern business environment on the Internet.

Alongside this pilot tool, a foundation has been laid for the same kind of system for the customer interface. However, that part of the system was excluded from this project.  When this pilot project is officially activated, a parallel system will also be ready that gives customers online access to the sales system.  Information in the database comes from the tourist-based farmers as they add it to the system.  Icelandic Farm Holidays (FB, owned by tourist farmers) is an organisation that has been selling services provided by tourist-based farmers, dealing with travel wholesalers, and taking care of other marketing ventures.  This co-operative group will run the database and deliver the collected information from the tourist-based farmer to the Internet. Tourist-based farmers will use the Internet to register their information into the system with tools provided by this project.

Half of the test group for this ambitious tool felt they had enough opportunity to get the required information although there were some concerns that the user instructions were not quite adequate and that the system lacked user-friendliness. However, it was appreciated that the tool was a big step in the right direction.  Although the SMEs generally felt there was an adequate opportunity to interact with the system, there were some concerns raised about having to do repetitive tasks and that improved editing facilities would vastly improve the system.  The users also felt that it was the appropriate channel for hosting this tool and commented that it was a great progress being able to book and receive information online in real time, instead of through E-mail or telephone. There were comments concerning the interface, specifically having to “scroll” down the web-page to access certain options and this has been taken into consideration and will be adapted in the next iteration of the tool.  There is an appreciation that it is necessary to continue the system’s development and connect it to local information systems of tourist-based farmers. As this project involved the development of an entirely new technological solution (the database, interfaces, booking system, etc) and because the association of Tourist-Based Farmers, the main collaborators in the project, did not make the agreed deadline it meant the final delivery of this pilot tool was considerably delayed (compared to the proposed schedule).  Thus the end-users felt that more time was needed to fully familiarise themselves with the tool and assess it.

Icelandic Farm Holidays (FB) has already invested considerably in the development of this system and other systems necessary to complete the whole “entire” central sales and booking system, both for tourist-based farmers and their customers.  FB is determined to follow through with this project and establish a central sales and booking system for tourist-based farmers. It is therefore clear that this RuBIES tool will be a useful tool for Icelandic farm tourism operators.

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