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MODULE 3
MODULE 3
B. Key Entrepreneurial Skills
B. Key Entrepreneurial Skills
Small and medium-sized businesses (SMEs) complement large corporations in fostering economic development and job possibilities in a nation. The entrepreneurial skill directly and simultaneously affects business success, influencing SME owners to increase their company performance. That demonstrates that when SME owners developed their entrepreneurial talents, their businesses also developed improved business performance (Hurriyat et al., 2016). When examining the necessary skill sets for entrepreneurs, they can be categorized into three main areas: management, technical, and entrepreneurial skills. The education and training required to acquire these skills will depend on the individual's existing human capital before starting their own business. It is widely believed that developing these skill sets empowers individuals with an entrepreneurial mindset, enabling them to unlock their potential and shape their futures, regardless of whether they become business owners or not (NESTA, 2008). These three group skills stay as below.
Entrepreneurship Skills
Entrepreneurship Skills
Inner Discipline
Ability to Take Risk
Innovative
Change-Orientated
Persistence
Technical Skills
Technical Skills
Operations Specific to Industry
Communications
Design
Research and Development
Management Skills
Management Skills
Planning
Decision-making
Motivating
Marketing
Finance
Success in digital tourism requires a strong entrepreneurial spirit. Entrepreneurs need to comprehend consumer trends, get competence in digital marketing, create networks, embrace innovation, and keep up with industry news. By utilizing technology efficiently, they may respond to shifting market dynamics, improve client experiences, and open up new opportunities in the digital age. Entrepreneurs that want to succeed in the fast-changing tourist sector must possess the necessary abilities.
The impact of digital tourism extends beyond the tourism sector and influences various other industries, transforming the way businesses operate and interact with customers. For example, digital tourism has opened up opportunities for educational institutions to offer virtual tours and interactive learning experiences. Additionally, healthcare providers can leverage digital tourism to promote medical tourism by showcasing state-of-the-art facilities and specialized medical services to international patients. For example, the Mayo Clinic offers a virtual tour of its facilities, which allows patients to learn about the clinic's services and to see the environment in which they will be treated. Moreover, digital tourism has influenced the retail industry by creating new avenues for marketing and sales. Businesses can collaborate with influencers and travel content creators to showcase their products in exotic locations, tapping into the wanderlust of consumers and increasing brand visibility.
Entrepreneurs in the digital tourism industry need to be adept at exploiting digital technology in addition to the more conventional company planning, marketing, and finance skills. Knowing how to use social media, internet booking services, and other methods to connect with and reach out to tourists is part of this (Belias, 2019; Varotsis, 2022).
Some specific and short activities are given below to improve/gain entrepreneurial skills (CBI Ministry of Foreign Affairs, 2022).
Discover the newest developments in online travel. This includes being aware of how tourists plan their travels, reserve their lodging, and make bookings using digital technologies.
Developing knowledge of digital marketing. This includes building and administering websites, utilizing social media well, and managing online marketing efforts.
Creating a network of contacts in the online tourist sector. This includes participating in trade shows, reaching out to other business owners online, and working with other companies.
Trying out and playing with innovative digital tourism services and goods. Keeping up with the competition and learning what works and what does not will be much easier by doing.
Keeping abreast of the most recent developments in the world of digital tourism. This includes monitoring industry news, conferences, and trade periodicals.
Risk-Taking:
Risk-Taking:
Risk-taking in entrepreneurship is the process of identifying, evaluating, mitigating, and, trying out potential opportunities and strategies that may help you build or grow your business but could also lead to personal or professional loss.
A 2017 study at Harvard Business School confirmed what many suspected: A risk-taking personality is a precursor for a successful startup.
While those who naturally run headfirst toward the unknown are more likely to explore entrepreneurship, anyone can get comfortable with taking bold yet well-reasoned risks. There are some clear benefits to taking intentional risks when starting or scaling a business, including:
Getting the first-mover advantage
Learning quickly from your wins and failures
Expanding your experimental mindset
Building skills in risk identification and management
Becoming adaptable to change
One of the most important things to consider for avoiding crises and managing them is to adopt a proactive approach instead of a reactive one, according to Aldao et al. (2021).
There are many sources that emphasize the importance of having a prepared strategy document for successfully managing crises in the tourism sector. One of the most important things to consider for avoiding crises and managing them is to adopt a proactive approach instead of a reactive one, according to Aldao et al. (2021). In order to successfully manage crises in the tourism sector, the importance of having a prepared strategy document is highlighted in the meeting, which includes emergency actions, defined structures responsible for actions, and a strategy prepared in consultation with all stakeholders and in light of lessons learned from crises (OECD, 2021). Steps to provide information and assistance to tourists affected by crises are recommended, and the deployment of mobile applications to meet their needs is suggested. The Covid-19 pandemic has highlighted the importance of risk management in this area. As information, management plays an important role in crisis management, effective use of strategic communication and media to mitigate the effects of the crisis and having clear and consistent communication are emphasized.
Creativity:
Creativity:
Entrepreneurial creativity is the ability to develop new ideas and solutions to problems. It is the ability to see into the future and generate ideas, solutions and innovations before they are needed.
Entrepreneurial innovation is the ability to turn an idea into reality. It is about finding new ways to do things and making them better. Entrepreneurial innovation is about creating new products or services, improving processes or finding new markets for existing products or services.
How to be more creative:
Have a growth the mindset
Be open to new ideas
Take risks
Think outside the box
Be passionate about what you do
Be willing to experiment
Practice freestyle writing regularly
Engage in right-brain activities regularly
Surround yourself with other creative and innovative people
Decision-Making:
Decision-Making:
The decision-making process involves identifying a goal, getting the relevant and necessary information, and weighing the alternatives in order to make a decision. The concept sounds simple, yet many people overlook some of the critical stages and risks that occur when making decisions. Wherever possible, it’s important to make the best decisions under the circumstances.
There are at least four strong benefits to making good decisions:
Good decisions last longer
Good decisions weigh internal and external factors
Good decisions eliminate conflicts of interest
Good decisions actually work better overall
The tourism decision-making model studies how individuals choose to go out from their specific location to achieve specific objectives or fulfillment (Castro & Dieguez, 2022). As a result, most consumer behavior models were established to influence consumer behavior patterns. In reaching their final decisions, these models considered factors such as how consumers make their decisions, how they shop, and how they evaluate the many options available. Consumer decision-making in the tourism industry has been studied in depth in many research. Their preferences influence people’s search and identification of their holiday requirements for various tourist items, each of which has specific traits.
Case Studies:
Case Studies:
VisitScotland: The national tourism organization of Scotland launched a virtual reality app called "Scotland VR" that allows users to explore the country's landscapes and attractions in 360-degree views. The app has been successful in promoting Scottish tourism to potential visitors.
Airbnb: The company uses data analytics to make decisions about pricing, search rankings, and marketing strategies. They also use machine learning to personalize the user experience and provide recommendations to hosts and guests.
Expedia: Expedia uses data analytics to track customer behavior and preferences to provide personalized recommendations and targeted marketing campaigns. They also use artificial intelligence to develop chatbots that can assist customers with booking and customer service inquiries.
Problem-solving:
Problem-solving:
In the digital tourism process, the problem-solving process generally follows the following steps:
Problem Identification: The first step is to identify a problem encountered in the digital tourism process. Problems can range from website performance issues, errors in reservation systems, deficiencies in user experience, or customer complaints. Properly identifying the problem is a critical step for the success of the solution process.
Analysis: Analysis is conducted to gain a deeper understanding of the problem. This stage involves examining the causes, effects, and interconnected factors of the problem. Data analysis, user feedback, faulty transactions, or performance metrics are evaluated during this step.
Developing Alternative Solution Paths: Different alternative solution paths are developed for resolving the problem. This stage takes into account the technologies, software, and systems used in the digital tourism process. For example, an alternative software solution can be considered for a faulty reservation system
In entrepreneurship, problem-solving is a crucial skill as it is essential to the success of any business venture. Entrepreneurs face numerous challenges on a regular basis, ranging from financial constraints, marketing difficulties, operational issues, and competition. The ability to identify and solve these problems can be the breaking point between success and failure.
Effective problem-solving in entrepreneurship can lead to numerous benefits, such as:
Innovation: Entrepreneurs who can effectively solve problems are more likely to develop innovative solutions that can set their businesses apart from competitors.
Cost savings: Problem-solving can help entrepreneurs identify and eliminate inefficiencies in their business processes, leading to cost savings.
Improved decision-making: By using problem-solving techniques, entrepreneurs can make informed and logical decisions based on data, rather than relying on guesswork.
Better customer service: Problem-solving can help entrepreneurs identify and address customer concerns and complaints, leading to improved customer satisfaction and loyalty.
Business growth: Effective problem-solving can help entrepreneurs overcome obstacles and achieve their business goals, leading to business growth and success.
Case Studies:
Case Studies:
TripAdvisor
TripAdvisor is a digital platform that provides reviews and recommendations for hotels, restaurants, and attractions. One of the problems the company faced was the proliferation of fake reviews on its platform. To solve this problem, the company developed a system that uses machine learning algorithms to detect and remove fake reviews. The system has been successful in improving the authenticity and credibility of the reviews on TripAdvisor.
BOOKING.COM
BOOKING.COM
Booking.com is a digital platform that allows users to book hotels, flights, and rental cars. One of the challenges the company faced was the high bounce rate of users who left the website without booking anything. To solve this problem, the company implemented a personalized search feature that uses machine learning algorithms to provide tailored recommendations to users based on their search history and preferences. This feature has been successful in improving user engagement and conversion rates.
Agoda
Agoda
Agoda is a platform where users can make reservations for hotels, vacation homes, hostels, and other types of accommodations. It provides a comprehensive selection of options for different budgets and preferences.
Vrbo (before HomeAway)
Vrbo (before HomeAway)
Vrbo (Vacation Rentals by Owner): It is a platform that provides a wide range of options for vacation homes and apartments. Users can find and book accommodations directly from property owners.
HomeToGo
HomeToGo
Hometogo is a search engine specifically designed for vacation homes, apartments, and other types of accommodation. Users can search for and compare different options to find the ideal place for their stay.
Hostelworld:
Hostelworld:
This platform specializes in hostel reservations, catering to travelers on a budget. It offers a wide range of hostels around the world, allowing users to book affordable accommodations for their travels.
Visit Florida
Visit Florida
Visit Florida is the official tourism marketing corporation for the state of Florida. One of the challenges the company faced was the negative impact of hurricanes on tourism in the state. To solve this problem, the company developed a digital campaign called "Sunshine Matters" that emphasized the resilience and strength of Florida's tourism industry in the face of natural disasters. The campaign was successful in attracting tourists to the state, even during hurricane season.
Financial Literacy:
Financial Literacy:
Financial literacy refers to the ability to understand and manage personal and business finances effectively. It is a crucial skill for entrepreneurs as it enables them to make informed financial decisions and manage their resources effectively.
Financial literacy is essential for entrepreneurs as it helps them to:
Make Informed Decisions
Manage Cash Flow
Secure Financing
Minimize Risk
Plan for the Future
Here are some financial literacy tips for entrepreneurs:
Start out early. You will be better off in the long term if you start learning about financial literacy sooner rather than later. You can learn about personal finance through a variety of tools, including books, websites, and online classes.
Set financial objectives. What financial goals do you have? Do you intend to put money aside for a down payment on a home? Repay your student loan debt? Early retirement? You can start creating a strategy to achieve your goals after you are aware of what you want to accomplish.
Maintain a spending log. Monitoring your expenditures is one of the finest methods to increase your financial literacy. You will be able to pinpoint regions and observe where your money is going as a result. You can keep track of your expenditures in a variety of ways, such as by using a spreadsheet or a budgeting app.
Establish a budget. You can make a budget to keep you on track if you are aware of where your money is going. Simply said, a budget is a strategy for your financial spending. Find a budgeting strategy that suits you among the numerous that are available.
Save money for the future. It's critical to get a head start on retirement planning. This will enable you to achieve your financial objectives and have a safety net in case of unforeseen costs. There are numerous ways to set money aside for the future, including starting a savings account, buying a house or investing in stocks/bonds.
Revenue Management: Digital tourism businesses should have a deep understanding of revenue management concepts such as pricing strategies, demand forecasting, and inventory management. These skills can help them optimize their revenue and profitability by ensuring they are selling the right product at the right price to the right customer.
Financial Planning: Digital tourism businesses must have a solid financial plan in place that outlines their revenue and cost projections, cash flow management, and financing needs.
Budgeting: A strong budgeting process is critical for digital tourism businesses to ensure that they can allocate resources effectively and efficiently.
Financial Reporting: Digital tourism businesses should have a robust financial reporting system in place that provides accurate and timely financial information. This includes monthly and quarterly financial statements, cash flow statements, and other relevant financial reports that help management make informed decisions.
Risk Management: Digital tourism businesses must have a risk management plan in place that identifies and mitigates potential risks to the business. This includes risks related to financial performance, cybersecurity, regulatory compliance, and other areas that may impact the business's operations.
Payment Processing: Digital tourism businesses must have a secure and reliable payment processing system in place that can process transactions quickly and efficiently.
Analytics: Digital tourism businesses should leverage data analytics to gain insights into their financial performance and identify areas for improvement. This includes analyzing sales data, customer behavior, and other relevant data to inform decision-making and improve financial performance.
Investment and Financing: Digital tourism businesses can understand the various investment and financing options available to them and determine which options are best suited to their needs.
Case Studies:
Case Studies:
Financial literacy (FL) impact directly on digital entrepreneurship (DE) (Xiao et.al, 2022). If you want to unlock more strengths of your digital entrepreneurship, you need to improve your financial literacy. Here are some case studies to guide you:
Case Study 1: TripAdvisor hosts a financial literacy webinar for its employees. In 2019, TripAdvisor hosted a financial literacy webinar for its employees. The webinar covered topics such as budgeting, saving for retirement, and managing debt. The webinar was well-received by employees, and many of them said that they learned valuable financial information.
Case Study 2: TripAdvisor offers financial literacy resources to its users.
TripAdvisor also offers financial literacy resources to its users. These resources include articles, videos, and calculators that can help users learn about personal finance. TripAdvisor's financial literacy resources are available in multiple languages, and they are designed to be accessible to people of all financial backgrounds.
Case Study 3: TripAdvisor partners with financial institutions to offer financial products and services to its users.
TripAdvisor partners with financial institutions to offer financial products and services to its users. These products and services include credit cards, loans, and insurance. TripAdvisor's partnerships with financial institutions allow its users to access financial products and services that are tailored to their needs.
Here, only gave an example for Tripadvisor. The strategies of organizations serving the digital tourism industry, such as Booking.com, Hostelworld.com, and Hostelmanagement.com, can be examined.
Teamwork:
Teamwork:
Teamwork skills are essential, particularly in the digital tourism industry. Working towards a common goal often requires the collective effort of multiple individuals, making teamwork a crucial aspect of organizational and personal success. In today's rapidly advancing era, where science and technology continue to evolve, working in synergy is more significant than ever. Recognizing that no one is perfect, teamwork allows individuals to leverage their strengths and support one another, fostering a harmonious and productive work environment. Moreover, teamwork skills provide a conducive setting for personal growth, skill development, and valuable work experience for all team members (Duc, 2023). In order for teamwork to be more efficient and effective, it is necessary to consider some important points. There are many benefits to teamwork in digital tourism. For example, teamwork can help entrepreneurs:
Share knowledge and expertise: Teamwork allows businesses to pool their knowledge and expertise, which can lead to better decision-making and innovation.
Improve efficiency: Teamwork can help businesses to streamline their operations and improve efficiency.
Build relationships: Teamwork can help businesses build relationships with key stakeholders, leading to new opportunities.
Solve problems more effectively: Teamwork can help businesses solve problems more effectively by bringing different perspectives.
If you are an entrepreneur in digital tourism, it is important to develop your teamwork skills. There are many ways to do this, such as:
Volunteer your time in a community organization: This is a great way to learn how to work with others and build relationships.
Take a teamwork course: Many teamwork courses are available online and in person.
Join a networking group: Networking groups can provide you with opportunities to meet other entrepreneurs and learn from their experiences.
Developing your teamwork skills can give your digital tourism business a competitive edge. Here are some additional points about teamwork as a key entrepreneurial skill in digital tourism:
Teamwork is essential for managing complex projects: Digital tourism businesses often need to manage complex projects, such as developing a new website or launching a new marketing campaign. Teamwork can help businesses break down these projects into smaller, more manageable tasks and coordinate different team members' efforts.
Teamwork is essential for responding to change: The digital tourism industry is constantly changing, so businesses must adapt quickly. Teamwork can help businesses to be more agile and to respond to change more effectively.
Teamwork is essential for creating a positive work culture: A positive work culture is essential for attracting and retaining top talent. Teamwork can help businesses create a culture of collaboration and cooperation, leading to a more productive and enjoyable work environment.
Technology usage skills
Technology usage skills
Digital Platforms and Websites for Tourism
Digital tourism is using technology to support travel experiences before, during, and after they take place. This could be a system of recommendations that aided someone in planning a vacation to discover suitable lodging (Ardissono et al. 2003). In digital tourism, as in other sectors, there are many legal regulations to be followed. These are technology-based regulations to support the functioning of this system. Such applications are always valuable for every sector where technology is used. Some of these are as follows:
The General Data Protection Regulation (GDPR): The GDPR is a European Union regulation that sets rules for collecting and using personal data. Businesses operating in the European Union or targeting European citizens must comply with the GDPR.
The AI Act: The AI Act is a proposed European Union regulation that would govern the development and use of artificial intelligence (AI). The AI Act would set rules for the ethical use of AI, and it would require businesses to comply with these rules.
Virtual reality (VR): VR is a technology that allows users to experience a simulated environment. VR can be used to create virtual tours of tourist destinations or to provide users with a new way to experience cultural events.
Augmented reality (AR): AR is a technology that superimposes a computer-generated image on a user's real world view. AR can be used to provide users with additional information about tourist destinations or to help them navigate their way around a city.
Blockchain: Blockchain is a technology that allows for secure and transparent transactions. Blockchain can be used to track the provenance of tourism products and services or to provide users with a secure way to book travel arrangements.
If we consider the framework in which theory becomes practice, digital platforms and websites can provide access to information about travel destinations, reservations and other travel services. Here are some examples of this subject:
TripAdvisor: TripAdvisor is a travel website that allows users to share reviews, photos, and tips about hotels, restaurants, and attractions. TripAdvisor also offers a variety of practical tools and resources, such as flight booking, car rental, and vacation package booking. [Reference: https://www.tripadvisor.com/]
Booking.com: Booking.com is a hotel booking website that allows users to compare prices and book hotels in over 220 countries. Booking.com also offers a variety of practical tools and resources, such as travel guides, maps, and currency converters. [Reference: https://www.booking.com/]
Google Maps: Google Maps is a mapping service that allows users to find directions, view street views, and get real-time traffic information. Google Maps also offers a variety of practical tools and resources, such as restaurant reservations, hotel bookings, and attraction tickets. [Reference: https://www.google.com/maps/]
KAYAK: KAYAK is a travel search engine that allows users to compare prices for flights, hotels, and car rentals. KAYAK also offers a variety of practical tools and resources, such as travel guides, maps, and currency converters. [Reference: https://www.kayak.com/]
Skyscanner: Skyscanner is a flight search engine allowing users to compare flights' prices from over 1,200 airlines. Skyscanner also offers a variety of practical tools and resources, such as travel guides, maps, and currency converters. [Reference: https://www.skyscanner.net/]
These are just a few examples of digital platforms and websites about tourism that can be used as practical tools and resources. Additionally, Mobile apps can be used to provide customer support and help travellers connect with local services.
Google Trips:
Google Trips:
Google Trips is a travel app that helps users plan their trips, book flights, and hotels, and find local attractions. The app also offers a variety of customer support features, such as 24/7 chat support and a help center with FAQs.
XE Currency:
XE Currency:
XE Currency is a currency converter app that allows users to see real-time exchange rates for over 150 currencies. The app also offers a variety of customer support features, such as a help center with FAQs and a live chat feature.
Rome2Rio:
Rome2Rio:
Rome2Rio is a travel planning app that helps users find the best way to get from one place to another. The app offers a variety of transportation options, including flights, trains, buses, and ferries. Rome2Rio also offers a variety of customer support features, such as a help center with FAQs and a live chat feature.
Travefy:
Travefy is a travel planning and itinerary management platform that helps individuals and groups organize and streamline their travel arrangements. It offers a range of features, including itinerary creation, collaboration tools, expense tracking, and real-time updates. Travefy allows users to build detailed travel itineraries, add flights,a accommodations, activities, and other trip details, and easily share them with fellow travelers. The platform aims to simplify the travel planning process and enhance the overall travel experience by providing a centralized hub for managing and organizing trip details.
Digital tourism offers a range of opportunities and benefits for businesses in the travel industry. Here is a summary of its key aspects: Digital tourism is the use of digital technologies to plan, book, and experience travel. It can be used in a variety of ways, including:
Mobile apps: Mobile apps play a crucial role in providing customer support and connecting travelers with local services, enhancing their overall travel experience. UBER (https://www.uber.com/) can be a good example.
Data and analytics: By leveraging data and analytics, businesses can gain insights into customer behavior and trends, enabling them to offer personalized experiences tailored to individual preferences. We can accept Google Analytics ( https://analytics.google.com/) as an example.
Social media: Social media platforms offer a powerful tool for building relationships with customers, fostering brand loyalty, and engaging with the target audience.
Cultural sector: Digital tourism can be utilized to promote and sell cultural attractions, such as heritage sites, museums, and exhibits. It also aids in directing tourism to specific areas or destinations, benefiting the cultural sector as a whole. The Louvre Museum (https://www.louvre.fr/en/homepage) is a platform where you can find out some experiences.
Commerce support: Digital tourism supports businesses serving the tourism industry, including travel agencies, tourist boards, and other related enterprises, by providing platforms and tools to enhance their offerings and operations. In this section, Expedia (https://www.expedia.com/) can be accepted as a commerce support page.
Impact on various sectors: Digital tourism has the potential to impact sectors beyond travel, such as education, healthcare, retail, and finance. It offers avenues for exploring the integration of technology and digital experiences in these sectors.
Social media for startups: For small companies, especially startups with limited resources, platforms like TikTok and Instagram reels provide organic opportunities to grow their audience and attract potential clients through engaging content. Authors who write on segmenting the tourism sector (Zeng & Gerritsen, 2014) acknowledge the growing number of travelers using contemporary digital media. Therefore, digital tourism entrepreneurs need to implement strategies to improve themselves in this field. The best Travel Influencer on TikTok and Instagram in 2023 was Lauren Bullen (@gypsea_lust) (Nadia, 2023). Another example, @themagger, provides valuable content for this field. In addition to tourism entrepreneurs, all other entrepreneurs can achieve better interaction with customers by actively using social media communication tools.
UGC Video Production:
UGC Video Production:
User-Generated Content (UGC) refers to videos, images, or other media content that is created and shared by individuals rather than by professional creators. When it comes to Instagram and TikTok, UGC (User-Generated Content) videos and reels come to mind first. UGC video production and reels present powerful opportunities for small companies. UGC video production and reels have become increasingly popular in the digital age, revolutionizing the way content is created and consumed (Romero-Rodriguez & Castillo-Abdul, 2023). Here's a brief explanation of each:
Videos: TikTok is a prime example of a platform where UGC video production thrives. Users on TikTok create short-form videos, showcasing their creativity, talents, and everyday moments, often using music, filters, and effects to enhance their content.
Reels: Reels are a specific type of short-form video format found on various social media platforms. They are designed to allow users to create engaging and entertaining videos that are usually around 15 to 60 seconds in length. Reels often include music, visual effects, and text overlays to captivate the audience.
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