ViveChachapoyas.Com: Encouragement of Sustainable and Responsible Consumption of Community Rural Tourism Through Digital Transformation

Abstract

(a) Situation faced: The Community Rural Tourism (CRT) in Chachapoyas, Peru, will not entirely take advantage until developing a viable business model, supported by the information technologies (IT) as facilitators to introduce local operators and the communities. Thus, this particular industry faces a digital transformation challenge.

(b) Action taken: ViveChachapoyas.com focuses on developing a B2C-B2B model with social marketing strategies based on Community Rural Tourism (CRT) in Chachapoyas, Peru, and serve as an example for similar situations in the world. The CRT is an activity with high potential to promote sustainable and responsible consumption of the Andean communities around Kuelap and Gocta (Amazon rainforest).

The CRT has three typologies: agritourism, ecotourism, and experiential tourism. In the latter, the tourist and the community establish an anthropological bond. Both (Community-Tourist) revalue the used resources, reinvigorating the area’s cultural identity. Besides, it allows creating new jobs and sustainable trade opportunities among its stakeholders: communities, operators, and complimentary services (accommodation, restaurants, fairs, festivals, travelers, archaeological sites, among others).

(c) Results achieved: Through an integration model, the community suppliers will be able to keep local and foreign tourists up to date with valuable information and will customize travel packages that promote archaeological, natural, and population riches on the tourist route. Consequently, the case discusses strengthening relationships of trust between stakeholders, providing a digital alternative to reduce unnecessary transaction costs for intermediary agents, who have encouraged only commercial visits to Kuelap or Gocta.

(d) Lesson learned: There is a lack of knowledge in the proper use of terms related to CRT. Therefore, it is a priority to standardize the language using the correct definitions. The academic contribution of the ViveChachapoyas.com project is to be a study case that integrates relevant information on CRT in the region while offering niche market research about the tourism sector in Peru. The practical contribution is to lay the foundations for a digital transformation project implementation, adding efforts to achieve the goal of tourism activity.

Appendices

Appendix

Appendix 1. Sustainable Development Goals

• 1. No Poverty

• 2. Zero Hunger

• 3. Good Health and Well-being

• 4. Quality Education

• 5. Gender Equality

• 6. Clean Water and Sanitation

• 7. Affordable and Clean Energy

• 8. Decent Work and Economic Growth

• 9. Industry, Innovation, and Infrastructure

• 10. Reduced Inequality

• 11. Sustainable Cities and Communities

• 12. Responsible Consumption and Production

• 13. Climate Action

• 14. Life Below Water

• 15. Life on Land

• 16. Peace and Justice Strong Institutions

• 17. Partnerships to Achieve the Goal

Appendix 2. 2017 World Travel and Tourism Competitiveness Ranking

Peru’s strengths refer to natural and cultural resources, ranking 4th and 24th globally, respectively. Also mentioned is a good position in international openness (12), average in the infrastructure of tourist services (45); while, outside the leading ranking were human resources and the labor market (62), as well as prioritization of travel and tourism (69). Regarding the weaknesses detected, there is infrastructure for air transport (73), environmental sustainability (73), business environment (83), health and hygiene (91), security and protection (108), land and port infrastructure (109), and price competitiveness (127).

Source WEF (2017).

Appendix 3. Latin American Countries in the Travel and Tourism Competitiveness Index 2017, with the presence of CRT enterprises

Shaded countries make up the Latin American Catalog of CRT.

Source WEF (2017), Alba Sud (2015).

Appendix 4. eTourism intermediaries framework

Source Buhalis and Licata (2002)

Appendix 5. Progress in information technology and tourism management: New trends

Source Navío-Marco et al. (2018)

Appendix 6. Interaction between factors and measurement variables

Source Own elaboration.

Appendix 7. Market Research Matrix

Appendix 8. Location of Chachapoyas (Peru)

Appendix 9. Tripadvisor ranking of attractions in Chachapoyas

• 1. Kuelap Fortress

• 2. Gocta Falls

• 3. Karajia Sarcophagi

• 4. Quiocta Cavern

• 5. Sonche Canyon

• 6. Yumbilla Falls

• 7. Revash: Mausoleum of the Chachapoyas

• 8. Luya Urco viewpoint

• 9. Historic Center of Chachapoyas

• 10. Huancas Community

• 11. Pitaya Petroglyphs

• 12. Huiquilla Private Conservation Area

• 13. Yanayacu Water Well

• 14. Pomacochas Lagoon

• 15. Gilberto Tenorio Cruz Museum Collection

• 16. Church of the Good Death

• 17. Chachapoyas Main Square

• 18. Chachapoyas Cathedral

• 19. Chachapoyas Model Market

Appendix 10. Historic Center of Chachapoyas (Peru)

Appendix 11. Kuelap Fortress, Chachapoyas (Peru)

Appendix 12. Gocta Falls, Chachapoyas (Peru)

Teaching Note

ViveChachapoyas.Com

Synopsis

The Community Rural Tourism (CRT) in Chachapoyas, Peru, will not entirely take advantage until developing a viable business model, supported by the information technologies (IT) as facilitators to introduce local operators and the communities. Thus, this particular industry faces a digital transformation challenge.

ViveChachapoyas.com focuses on developing a B2C-B2B model with social marketing strategies based on Community Rural Tourism (CRT) in Chachapoyas, Peru. The CRT has three typologies: agritourism, ecotourism, and experiential tourism. In the latter, Community and Tourist revalue the used resources, reinvigorating the area’s cultural identity. Besides, it allows creating new jobs and sustainable trade opportunities among its stakeholders: communities, operators, and services (accommodation, restaurants, fairs, festivals, travelers, archaeological sites, among others).

Through an integration model, the community suppliers will keep local and foreign tourists up to date with valuable information and customize travel packages that promote archaeological, natural, and population riches on the tourist route. Consequently, the case discusses strengthening relationships of trust between stakeholders, providing a digital alternative to reduce unnecessary transaction costs for intermediary agents, who have encouraged only commercial visits to Kuelap or Gocta.

Regarding the data sources, the case prepared a Marketing Research Matrix to conduct interviews with elite informants and a survey to tourists, respectively (Exhibit TN-1). The interview guideline had 16 questions. Complementarily, the survey consisted of 50 closed questions: 18 socio-economic oriented and 32 Likert-scaled. Data collection was during a month between Lima and Chachapoyas.

Teaching objectives

General Objective

• Analyze the ViveChachapoyas.com CRT platform’s business model feasibility for contributing to the sustainable development of the communities

Specific Objectives

• Identify the traveler’s global trend, the national macro-environment that influences Tourism in Peru, and entry barriers and competitors within the CRT to elaborate the Integrated Business Plan to ViveChachapoyas.com.

• Propose a Marketing Plan & Mix to guide the contents, touchpoints, and actions in the Customer Journey.

• Support if the ViveChachapoyas digital project aligns with the objectives of the National Tourism Strategic Plan—PENTUR 2025, contributing to the increase of domestic tourism for 2021 (which goal is to reach 10%).

• Define the most appropriate Digital Transformation Plan based on the proposal of new industrial value chains, company, and value network to ensure robust stakeholder management.

Research methods: Active learning

Assignment questions

• 1. What are the differences between CRT and Conventional Tourism seeing by tourists?

• 2. What are the reasons tourists would choose the CRT?

• 3. What digital transformation conditions require ViveChachapoyas.com?

• 4. What role should Tourist Stakeholders play to promote development around Chachapoyas?

• 5. Why could the digital platform as part of the business model for ViveChachapoyas.com be sustainable?

Additional materials or suggested core readings

An, W., & Alarcón, S. (2020). How Can Rural Tourism Be Sustainable? A Systematic Review. Sustainability, 12(18), 7758. https://doi.org/10.3390/su12187758

Buhalis, D. and Law, R. (2008) Progress in information technology and tourism management: 20 years on and 10 years after the Internet—The state of eTourism research. Tourism Management 29, 609-623. https://doi.org/10.1016/j.tourman.2008.01.005

Buhalis, D. and Licata, M. (2002) The future eTourism intermediaries. Tourism Management 23, 207-220. https://doi.org/10.1016/S0261-5177(01)00085-1

Kannan, P.K., and Li, HA (2016) Digital Marketing: A framework, review and research agenda, International Journal of Research in Marketing, 34(1), 22-45. http://dx.doi.org/10.1016/j.ijresmar.2016.11.006

Navío-Marco, J., Ruiz-Gómez, L. M., & Sevilla-Sevilla, C. (2018). Progress in information technology and tourism management: 30 years on and 20 years after the internet-Revisiting Buhalis & Law’s landmark study about eTourism. Tourism Management, 69, 460-470. https://doi.org/10.1016/j.tourman.2018.06.002

Ministry of Foreign Trade and Tourism (2016). National Strategic Plan of Tourism of Peru - PENTUR 2025. https://www.gob.pe/institucion/mincetur/informes-publicaciones/22123-plan-estrategico-nacional-de-turismo-del-peru-pentur

Teaching Plan and Timing: Activity-based exercise.

The case discussion or debate that takes place in class should be oriented to address four critical aspects (each 15min):

• 1. Analyze macro- and micro-environments under which the ViveChachapoyas.com project arose.

• 2. Evaluate the evolution and concepts of e-Tourism and CRT worldwide and Peru.

• 3. Evaluate the business models’ approach based on digital marketing strategies (B2B & B2C) in the sector.

• 4. Analyze the Customer Journey and the variables that local tourist’s value to find the critical touchpoints connect with tour operators.

Analysis of assignment questions

• 1. What are the differences between CRT and Conventional Tourism seeing by tourists?

The tourist can find various information on the Internet, but they will not know unless they talk to locals are the region’s most emblematic peculiarities and attractions. These data are the critical pieces needed to boost Tourism and CRT around Chachapoyas.

Some sites currently promote Tourism and CRT in Peru, such as Y tú qué planes, Turismo Rural Comunitario, Marca Perú, Perú-Travel (which has an App). They offer packages and an operators’ directory by the department. The project’s digital platform looks to cooperate with these proposals by promoting its complementary services to raise an essential service quality for the tourist. Thus, they may choose among conventional tourism, unconventional, and CRT. Now, suppose a tourist enters a different platform. In that case, part of the strategy unified an internal tourism policy.

It is strategic to promote the Joint Venture management model with local operators to highlight the non-conventional tourist activity that Amazonas plays within the circuits of the Northern region. If an appropriate cost structure is managed, where entrepreneurs from Chachapoyas and surrounding areas perceive that they invest just enough to spread their attractions, the alliance will be consolidated.

• 2. What are the reasons tourists would choose the CRT?

When domestic tourists travel to Amazonas (Chachapoyas), 93% of their motivations are holidays and recreation. They take advantage of holidays or “long” weekends to, at least, spend a minimum of two to three nights and spend on average S/ 584 (US$ 180 approximately). The preference of 30–35% is to travel with friends or family, without children. 32.1% prefer to go with their partner. Thus, more than 50% go to this destination without the pressure or responsibility to take children.

Internet is the principal means by which tourists access information before and during their trips. They do not just look for information on accommodations, restaurants, and destinations; they value other people and their friends’ recommendations above all. These variables are part of a study by Ipsos Apoyo (2016). This study indicates that Peruvians are regular users of “smartphones,” 32 years old, single, and dependent, on average. 81% are responsible for paying their consumption, and 59% of this group are postpaid users. They can use their equipment at night (53%), in the afternoon (41%), and/or in the morning (33%).

In the market research conducted for this case, 62.5% admit that they have not gone to Chachapoyas. However, 37.5% have gone to the Kuélap Fortress among those who have visited it. Besides, 24.3% went to Gocta Falls, 11.8% to Karajía sarcophagi, 8.8% to Leymebamba, 4.4% to Huancas community, 5.9% to Revash, 5.9% to Sonche Canyon, and 6.6% to Cóndores lagoon. This last destination is one of the most courageous experiences of unconventional tourism. It is not well known and only heard of when one arrives in Chachapoyas. It is a one-day walk from the Leymebamba village, and the round trip takes three days.

Consequently, the most visited tourist attractions are those found on the Internet. However, the most remembered by those who already knew Chachapoyas is the unconventional destinations. This detail reveals the critical differential value that the tourist expects to find, to continue exploring.

• 3. What digital transformation conditions require ViveChachapoyas.com?

Chachapoyas is a destination with an excellent quality of attractive tourist resources, and the domestic traveler who knows or has heard of it keeps in mind. However, several Peruvians do not know it, basically due to their lack of information. Tourist Information Quality offered by digital platforms does not have relevant and precise data that adequately guide. Tourist. When tourists learn that they could go to other attractions while traveling, they become unsatisfied. It is not enough that the city presents an excellent predisposition to the environment or infrastructure that connects the different towns. For instance, implementing the Cable Car to Kuélap or introducing a direct air route to Chachapoyas no has an effect when Tourist Service Quality is not as expected.

Furthermore, suppose there is no Security and Trust for travelers. In that case, they will not have a good experience and may not return but are likely to speak negatively of the services received (among their acquaintances and social networks), negatively impacting the agencies’ reputation and the city itself. Therefore, it is essential to implement a digital platform capable of connecting domestic travelers with destinations and even with the same local operators to access valuable information that improves their travel experience at all times.

In order to materialize the Unique Value Proposal ViveChachapoyas.com, key resources that must be counted on are based on the improvement of IT and Digital Marketing strategies. These will be aimed to increase the quality of communication and contact availability in real-time among travelers, operators, and allied institutions that promote tourism activities in the region.

Regarding the region’s growth, it is necessary to have a telecommunications and IT provider capable of ensuring the functionality of the digital platform. Likewise, IT engineers who are part of the ViveChachapoyas team must work hand in hand with the communication specialists of strategic allies to build a functional, friendly and safe platform capable of growing over time and content. This step should not sacrifice the systems or service quality, focused on users. Blended marketing actions are integrated with 360º campaigns through Customer Journey, along with the functioning of the B2C platform and the B2B intranet (for local operators).

Regarding that, ViveChachapoyas.com will have two approaches:

B2C, which connects the tourists with the operators and communities. It takes three types of functions:

PORTAL. With relevant and accurate content, as well as personalized tour packages. It should be the first web search option on CRT. Its information quality determines the connection with the tourists.

TRANSACTION BROKER. The national tourist is helped in the financial planning of the tourist packages through advice/tips online and supported by the contact of the local operators (union members).

MARKET GENERATOR. ViveChachapoyas is an intermediary that cares about building the right digital ecosystem for national tourists and local operators to communicate and exchange unique experiences.

B2B, where ViveChachapoyas aims to be a sustainable business over time, integrates local operators into an extensive valuable database for CRT. The intranet is active for the digital platform, but it can be integrated into the traditional tourism sector in the future.

In the second year, the Club Vive! Loyalty Program is launched, in its version for local operators. They will access as long as they participate in the CRT certification workshops and events organized by ViveChachapoyas. The system of incentives and prizes is carried out under the concept of “gamification.”

• 4. What role should Tourist Stakeholders play to promote development around Chachapoyas?

The same agencies must collaborate with the Regional Government and public institutions. The public perceives that a Comprehensive Tourism Strategy is not applied, which is an alert to consider. The same dissatisfaction among the Tourism Stakeholders, who mention that financial resources are not distributed in a balanced way among authorities, institutions, and communities, is a threat. If they do not receive adequate conditions to offer a quality service, the only thing that will be achieved is that they reduce the tourist potential of Chachapoyas and alienate tourists.

Additionally, the perception of how the Tourism Stakeholders themselves must align with the rules of the Tourism sector. 65% of the travelers fully agree that operators’ formality guarantees the best competitiveness. This aspect involves the appearance of new package options and routes to explore. However, the use of Good Practices to make these experiences unique for the traveler implies that operators are trained under the same values and objectives. 70.1% of travelers state that they fully agree that good practice training is necessary to promote entrepreneurial projects.

• 5. How could the digital platform as part of the business model for ViveChachapoyas.com be sustainable?

Although tourists are currently digital, it shows that e-commerce growth in Peru will only reach 46% of users who surf the Internet by 2018.

Market research shows that tourists seek to have a strong connection with the destination they visit. At the same time, they expect the tourism sector to continue growing, expanding its offer. The digital CRT project proposes two visions that allow it to unify the B2C and B2B scenarios.

The digital platform promotes the CRT and the visit of new experiential tourist destinations, aiming at:

Perfect the systems and tools that manage the relevant information that accompanies the user in each phase of the “Customer Journey” with total efficiency (Exhibit TN-2). Personalize the customer experience and adapt the service to the demand. Encourage national tourists’ culture of planning, which allows them to save money and book services in advance. Optimize the value chains’ processes to improve after-sales support and provide more personalized experiences to the right segments.

Regarding that, the proposed Positioning strategy would be oriented to communicate the following message:

“Through the CRT digital platform in Chachapoyas, we do not tell stories. Instead, we build them with tourists in each adventure. Contact with communities and local operators is part of the lived experience since we are contacted. Guides’ knowledge takes you back to the past to learn from their ancestors; and, it connects you with the present, showing you how people maintain their customs, adapt to today’s world, and continue to honor the Apus. Dare to cross the barrier of the traditional and live your own experience. Build your own story with us.”

The market research shows that of national travelers, 40.1% like adventure tourism; 36.5%, from conventional tourism; 13.9% from rural community tourism; and 8.8% eco-tourism. This allows building four concepts of the portfolio of tour packages that will be offered on the digital platform:

ViveAventure, for experiences related to exploration and adventure. ViveTradition, for the conventional tourism options in Chachapoyas. ViveCulture, experiential tourism. And ViveEcology for eco-tourism alternatives.

These concepts allow defining the business model of the digital platform. It is a blended solution, where the participations of the offline and online media are combined. From this, integration with the public is achieved.

From the four defined concepts (ViveAventure, ViveTradition, ViveCulture, and ViveEcology), the targets are:

Explorer Tourists are independent or not, and they like to take advantage of their free days to explore Peru. They allocate 4 to 6 days for it, they go alone or with a partner, and their main objective is leisure.

Thunder Tourists do not have much time to make long trips to the country’s interior, only 2 to 3 days. They take advantage of long weekends and take specific tour packages that allow them to maximize their stay.

4x4 Tourists are the average vacationers who explore the tourist destination they are going to, from the conventional places to the little-known ones. His goal is to live the experience to the fullest.

Considering these characteristics, the tour packages offered on the digital platform will be assembled under the four concepts explained and the three profiles of potential customers.

Therefore, it is necessary to offer the public a digital platform that unifies the experience of knowing Peru and promoting e-Commerce. The traveler must live his adventure and create his own story. Under this perspective, the content must be new, personalized, built from the customer’s experience, and with a friendly design (Exhibit TN-3 & Exhibit TN-4). The online tool accompanies tourists with accurate and relevant information, allowing them to share their adventures and history from the same platform.

Key learnings

Regarding the analysis, we identified the market opportunity for the digital platform ViveChachapoyas.com.

The academic contribution is to be a reliable secondary source that integrates relevant information on CRT in Chachapoyas by analyzing the tourist industry in Peru. Thus, it will serve future students who look for references to continue proposing entrepreneurial alternatives in the region.

The practical contribution focuses on implementing a digital transformation project through a business and a marketing plan. Besides, this combines efforts to the government objective, proposing that tourism in Peru grows for its bicentennial in 2021, considering a domestic tourism raise by 10%.

ViveChachapoyas.com looks to align itself with the CRT Strategy of PENTUR 2025. Its implementation will enhance current tourist destinations and promote new circuits. It would generate revenues to improve city infrastructure. Thus, the digital platform proposal will allow local tourist news to reach foreign tourists quickly.

Exhibit TN-1. Market Research Matrix

Prepared by the authors

Exhibit TN-2. Customer Journey

Market research shows that although Peruvians are aware of the importance of digital platforms, they are not 100% familiar with them. Therefore, it is proposed to plan a 360º blended strategy, where online and offline media are used, connecting domestic tourists in all phases of the Customer Journey:

Awareness. Through the project’s digital platform and official social networks and those of strategic private and public partners. Also, the dissemination of events promoted by institutions related to the Tourism sector will be vital to maintain the connection with tourists (via web platforms, networks, and physical material). Blogs of influencers (travelers) can also consolidate the trust and prestige of knowing Chachapoyas.

Consideration. The digital platform must provide spaces where the whole travel experience can be qualified. Tourists value recommendations and comments, so it is appropriate to open channels that allow them.

Purchase. Achieving a purchase through a digital platform becomes a challenge. Then, it is necessary to consider offering two payment methods: online for the public that already uses it and the advance payment through banking agencies. In this last case, confirmation of tourist service purchase is done by email.

Service. What is offered on the digital platform (photos, service descriptions) must be the same that the tourist sees when arriving at the destination. This ensures a positive experience and recommendations.

Loyalty. Relationships with tourists must be maintained in time to return and/or influence new visitors to know Chachapoyas. Here, blended strategies must be robust and consider the use of online resources (mailing, raffles, promotions) and offline (merchandising, brochures, coupons).

As the digital transformation project grows, it is expected to apply a scale economy. This aspect involves replicating the business model, optimizing the communication/distribution channels while expanding the scope of the sustainable results.

Exhibit TN-3. ViveChachapoyas.com—Digital Platform Proposal

Exhibit TN-4. ViveChachapoyas.com—Mobile App Proposal