In January 2022, Mastercard launched the Tourism Innovation Hub in Madrid, an initiative to develop global tourism strategies to help the sector recover in a more inclusive and sustainable way after the pandemic.
The project recently turned one year old. To mark the occasion, we spoke with Quim Martínez to find out why they chose to establish themselves in Madrid, what solutions they have developed since they launched their hub and their future plans.
M.I.A.: Mastercard launched the tourism innovation hub in Madrid a year ago. Could you briefly explain what it consists of and make a general assessment of your activity during this first year?
Quim Martínez: The hub is a global initiative of Mastercard that aims, above all, to help develop tourism in a more sustainable and inclusive way. It was born with the intention of speeding up the recovery of the sector. In part, this is already being achieved. We want to continue developing tourism in a different way than before, not just growing for the sake of it. During this first year we created the team. I joined Mastercard nine months ago to lead the project. Perhaps most importantly, we have invested in six large projects around the world so as not to start from scratch, to have something to fall back on and experiences that are relevant to us.
M.I.A.: What kind of investment have you made in those six projects? Have they been developed with any Madrid based company?
Q.M.: We have developed solutions with several tourist destinations. One was developed with Turespaña, with whom we have carried out a study to understand the behavior and preferences of European travelers visiting Spain in terms of sustainability. Above all, sustainability in price. How much are they willing to pay? How much more are they willing to pay for a product that is sustainable versus one that is not sustainable?
Likewise, we have just signed an agreement with Segittur to collaborate on issues of innovation and digitalization of smart tourist destinations. We had already collaborated with them in the past, but we formalized an agreement in Fitur.
M.I.A.: How did the idea of setting up the hub come about?
Q.M.: During the pandemic we realized that the most digital and innovative tourism companies and destinations were more resilient and, in some ways, more competitive. This gave us the idea of creating an entity that would bring together all the capabilities of Mastercard within the tourism sector. The idea is to help these destinations accelerate their digitization, and also innovate.
M.I.A.: Why did you choose Madrid?
Q.M.: It’s easy. First, because Spain is one of the leading countries in terms of the competitiveness of the tourism sector. Second, because it is a key innovation hub, especially in the tourism sector and increasingly in Madrid. And third, because there was support from the Spanish Government and the World Tourism Organization (UNWTO). Since it is in Madrid, we considered that it was important to be close to this institution.
When you travel, you realize that Spain is a benchmark in the tourism industry. Several tourism models have originated in Spain. I think that in terms of tourism innovation we are a reference, so the decision to choose Madrid was easy.
M.I.A.: Was any other city considered, be it Spanish or foreign?
Q.M.: Outside of Spain, yes. I have spoken to some country branches within the company that, in the spirit of ensuring a constructive competition, have told me that they also wanted the hub.
M.I.A.: You talked about the importance of innovation, digitalization and tourism sustainability. How does that affect Madrid? What are the levers that activate tourism innovation?
Q.M.: It all starts with sustainability. In this regard, we are working with UNWTO. We are part of a working group that is creating a methodology to define sustainability.
We always consider three areas. The first and most obvious is environmental sustainability. The second is social sustainability, and the third is economic sustainability. In Madrid I think it’s being managed quite well. The first thing is to ensure that the wealth generated by tourism is distributed more or less homogeneously. That is: that it is not concentrated in two neighborhoods or strategic points. In terms of social sustainability, it is about ensuring that everyone is part of and benefits from tourism. Finally, the environmental aspect concerns ensuring that the environmental impact of tourism and the entire value chain is kept to a minimum. In short, that it does not negatively affect citizens.
M.I.A.: What should the municipal government do to ensure the sustainability and attractiveness of tourism while ensuring the well-being of its citizens?
Q.M.: I would like to talk about what is already being done. I’m not from Madrid, which grants me the opportunity (or perhaps, disadvantage) of experiencing it as a visitor. I find something new in Madrid every day and the evolution is very positive. You get surprises like the remodeling of the center, which is a luxury. You compare it with other cities, and you see that it is being managed exceptionally well. In the end it is about making the city more attractive, but I think it is about getting the citizen to benefit from it too.
Moreover, we are doing things in other European cities that are very interesting. It’s a cliché, but it’s true: use data to measure. It is all very well to talk about sustainability, but let’s also measure CO2, air quality, for example. This is done in Madrid on a recurring basis and to a high standard. You have to look at the economic impact, how it is distributed by neighborhoods, social integration, etc. And, with this input, make decisions and design initiatives that attract tourists, so that it benefits both the city and the locals.
M.I.A.: What type of employees work in the hub?
Q.M.: Rather than having a fixed team, we configure it as needed. This is a very common model in innovation. Years ago, companies had the innovation department; now, most companies work this way. In Madrid, we have a core team composed of individuals from various countries, with the rest of the team being project-based and consisting of people from all around the world. Our team includes individuals who specialize in data and come from consulting backgrounds, as well as experts in marketing, promotion, brand, and other related fields. And then there is a third department, the technology and innovation agency, specialized in design thinking.
M.I.A.: How would you assess access to talent in Madrid?
Q.M.: In data and technology there are plenty of qualified professionals. In tourism it is more difficult: historically there has always been a lack of talent in this sector. And, after the pandemic, one of the trends that everyone is talking about and that we have seen is that a good part of the talent in the tourism sector had to look for jobs elsewhere. So, it’s not always easy to find.
M.I.A.: How would you rate Madrid’s fintech ecosystem? Does the city have the potential to be a hub in this sector?
Q.M.: If Madrid is recognized for something within the innovation sector, it is for its fintech expertise. It has always been said that important investments within Spain were made in Madrid. In the past, other cities were recognized as hubs, but this has been changing and in recent years Madrid has gained antagonism.
M.I.A.: Do you know the fintech cluster promoted by the Madrid City Council?
Q.M.: Yes, we have been part of it since its creation. Innovation at Mastercard is very important. Bear in mind that we are in a business unit that deals with payments, which are constantly evolving. Innovation is almost a must at Mastercard.
M.I.A.: In addition to the national administration, Segittur and Turespaña, are you in touch with the municipal and regional administration, with the City Council or the Community of Madrid?
Q.M.: We have done projects before with them, but not yet at the hub level. We work with tourist destinations and one of our objectives for this year is Madrid. We have spoken several times with the City Council and we have collaborated with Madrid Destino and IFEMA. For example, IFEMA participated in a working group that we have to develop more sustainable events both economically and environmentally. There are several cities involved: Gothenburg, Prague and, representing Madrid, Madrid Destino. We’re on it.
M.I.A.: What selling points do you think the administration should emphasize about Madrid to attract international companies?
Q.M.: In general terms, I think the administration is doing a great job when it comes to promoting Madrid and attracting companies. Regulation, new mobility models, promotion of talent, quality of life… Perhaps there is now an additional opportunity related to the latest trends and hybrid working models. I think Madrid should be promoted as the best city in the world for companies that want to combine work in the office with remote work. Few capitals have the best urban, beach and rural tourist destinations less than a four-hour drive away. This is a competitive advantage for companies based in Madrid because they can establish temporary and sustainable teleworking models that are very attractive for their employees, through the possibility of traveling by train or electric vehicles.
Establishing models of collaboration between Madrid and other cities in Spain to encourage this win-win model that allows attracting more companies and talent, while decongesting the city and distributing part of the wealth to the rest of the territory would be a great initiative.
