This document summarizes information about destination marketing organizations (DMOs) and trends in the industry:
1) It provides statistics on DMOs, such as over 600 member organizations in 16 countries with $2.5 billion in annual budgets. The average US DMO has 13 staff and is mostly independent and non-profit.
2) It discusses trends in consumer behavior like increased online activity and an expectation of integrated experiences across channels. This is transforming DMO roles to focus more on value than relevancy.
3) A case study is presented on a regional DMO that fulfills economic development, marketing, and chamber of commerce functions for a valley in Colorado.
4) New resources are summarized
2. ADVANCE THE
DMO PROFESSIONAL
ADVOCATE FOR THE
DMO INDUSTRY
PROTECT & LEVERAGE
ASSOCIATION
RESOURCES
Professional Development
Career Development
Peer-to-Peer Networking
• At Home
• In the Meetings Market
• In the Consumer Market
DMO Members
Allied Members & Sponsors
Leadership & Governance
Professional Management
DMOs
2
1
3
DMAI’S ROLE
3. 600
DMO Member
Organizations
Within 16 Countries
$2.5B+
Annual Budgets
Sources:
1.DMO Marketing Activities Study, DMAI
2.2013 DMO Organizational & Financial Profile Study, DMAI
4. 79% receive hotel tax
dollar investment
U.S. DMOs at
a glance
Average Staff = 13
46% of DMOs are
membership based;
average of 100 members
Sources:
1. 2013 North American DMO Organizational & Financial Profile Study, DMAI
74% are independent, not-for
profits
Of that 63% are 501(c)(6)s
14.6% are government agencies
4.6% are Chamber of Commerce
4.0% are authorities
38
%
22
%
19
%
18
%
9%
23
%
16
%
Market &
Sell To
Visitors
Inform &
Advise Visitors
Develop
Destination Deliver
Visitor
Services
5. DMO
Investment
Description
2013 DMO
Organizational &
Financial Profile
Study
What we learned
2013 average DMO budget
increased 3% breaking $3M
1 in 7 destinations increase
investment through TID /
MDA / Voluntary marketing
fee
38% of DMO’s have
partnership programs
218 participating DMOs’ revenue and
expenses, funding sources, visitor
taxes break downs, allocations,
financial policies, visitor center
information and online marketing
efforts
Source:
1.2013 DMO Organizational & Financial Profile Study, DMAI
6. Group Sales
Impact
Description
2013 DMO Group
Sales
Channel Impact
Study
What we learned
Collectively drove 39 million
group room nights for future
events, growing by 4.9% from
last year
Over 280 U.S. destinations
rely on DMO sales and
marketing efforts to attract
events to their respective
communities.
Quantifies the impact of DMO group
sales channel from 2009 to 2012
based on booked room nights for
future events, occurred event room,
and the number of events that
occurred and were booked
Sources:
1.DMO Marketing Activities Study, DMAI
2.2013 DMO Organizational & Financial Profile Study, DMAI
7. 1 in 5
Group hotel room
nights in the U.S.
influenced by DMOs
Growth of 4.9% from last year
39M
room nights
(booked)
Source:
1.. 2013 DMAI DMO Group Sales Channel Impact Study, DMAI
9. CONSUMER BEHAVIOR
The growth and ease in the consumer’s ability to access products and
services via the Internet (and complementary technologies) has made
side-stepping established businesses more common, disrupting traditional
distribution channels and entrenched ways of doing business
Individuals have become more active online creators (77% compared to
10% seven years ago), ranging from consumer-curated content (e.g.,
Pinterest, Instagram) to individually-created products and or services for
sale. This increased activity suggests that businesses who expect the
consumer to passively accept their static offerings will become increasingly
irrelevant to that very consumer.
Organizations who do not offer an integrated consumer experience across
all channels and platforms -- mobile strategy, in-store strategy, advertising
strategy, to name a few -- will be side-stepped in favor of one that is
responsive to the consumer’s needs and available when the consumer is
looking for them
9
10. EVOLVING DMO ROLES
There is growing demand for DMO attention as DMOs gain visibility and
become more relevant, creating more demand on the DMO budget
DMOs are experiencing increased competition in their meeting planner
and consumer channels – and even with local stakeholders. The industry
needs to evolve its positioning and language from one of ‘relevancy’ to that
of ‘value’
The DMO industry must explore more ways to work together to position
themselves collectively more efficiently than they can individually to
ultimately inspire more travel
Based on the DMAI Strategic Planning Survey of more than 100 DMO
CEOs, the majority of official DMOs believe their value proposition to be
“economic development through tourism.”
11. VAIL VALLEY GETTING IT DONE
REGIONAL COMMUNITY DEVELOPMENT
ORGAINIZATION
800 MEMBERS – 21 IN LAST QUARTER
DEDICATED TO ECONOMIC VITALITY OF VAIL
VALLEY
ENSURE LOCAL BUSINESS SUCCESS
Partnering with local businesses
Collaborating with key stakeholders
EFFORTS AND BENEFITS:
3 DISTICNT ROLES
Chamber of Commerce,
Destination Marketing Organization
Economic Development
The Partnership strives to sustain and enhance the Vail Valley
as a tourism destination and as a place to do business by
contributing
to the identity and economic well-being of the community.
12. A Strategic Roadmap
Global Destination Marketing
for the Next Generation
FIELDED APRIL 214
OVER 250+ GLOBAL DMOs Participation
A comprehensive definition of the current
state of affairs
A view of the future, identifying emerging
social, economic and competitive trends and
Recommendations on how DMOs should
respond
Toolkit to assist DMOs in their response
Futures Study
Destination Next
13. Destination Arena - 100+ Measures
Compare DMO Performance
Meeting Sales
Booking Pace
Membership
Leisure
Interactive
Mobile
Social
Resources/Strategy
Market Conditions
Dashboards
• Up to date business
intelligence based on
automated data feeds
• Interactive to allow for
customization
Annual Reports
& Quarterly
Webinars
• Annual State of the Industry
Report
• Quarterly Webinars dealing
with specific topics and short-
term developments
Customized
Reports
• Report customized to review
individual performance relative
to peers and competitors
• Available for individual
organizations or regions
Workshops • Consulting and workshops to
assist DMO improve
performance
14. Why should you care?
STAR report for DMOS
Blueprint for Improvement, professionalism, Architects of your tourism
cathedral
Real-time and ongoing comparative tracking of current business and future
outlook
Detailed assessment of competitive position
Proactive plan available instanteously
to develop strategy before the storm
Strategic input to sales and marketing activities
Notas do Editor
Investment in DMOs continues to grow at strong, sustainable levels with the average DMO budget breaking the US$3.0 million mark in 2013, a 3% increase over 2012
A significant percentage of this growth can be attributed to an increase in public investment, which grew an average of 4% to US$2.4 million.
Increasingly, destinations are implementing new mechanisms to augment their investment in destination marketing and travel demand to reap greater returns for their communities. One out of seven destinations reported increased investment through a Tourism Improvement Districts (TID), Marketing District Assessment (MDA) or voluntary marketing fee
(DMAI 2013 DMO Organizational & Financial Profile Study)
DMOs influenced 21%, or 1-in-5, of all group room demand in 2012 (in the 283 markets where DMOs are active in group sales) This represents more than 38 million group room nights that occurred in 2012 as a result of DMO sales and marketing efforts, a 3.1% increase over 2011 results
In 2012, DMOs booked 39 million group room nights for future events, representing growth of 4.9% over 2011 bookings
DMO channel room bookings for future events exceeded the level of room nights consumed in the DMO channel. This indicates that the value of the DMO channel is on an upward trend.
DMOs influenced 21%, or 1-in-5, of all group room demand in 2012 (in the 283 markets where DMOs are active in group sales) This represents more than 38 million group room nights that occurred in 2012 as a result of DMO sales and marketing efforts, a 3.1% increase over 2011 results
In 2012, DMOs booked 39 million group room nights for future events, representing growth of 4.9% over 2011 bookings
DMO channel room bookings for future events exceeded the level of room nights consumed in the DMO channel. This indicates that the value of the DMO channel is on an upward trend.
(DMAI 2013 Groups Sales Channel Impact Study)
Beck Building Company
• Big Bear Bistro
• Boar’s Head Distributor
• Boardwalk Electric
• Boxcar Restaurant
• Caterers of Vail
• Club 20
• Conundrum Technologies
• Creative Floors
• The Cycle Effect
• Domain Pro X
• Eagle Valley Senior Life
• HyLo Labs
• Keller Williams Mountain Properties
• National Property Inspection
• Plumbing Systems, Inc. (PSI)
• Prudential
• Street Media Group
• Thrivent Financial
• Vail Lights
• Visiting Angels
Members of Vail Valley Partnership have access to a number of marketing benefits, educational programs, member savings opportunities and networking events throughout the year, as well as media discounts with local partners.
2008 FUTURES STUDY
Current State of DMO Business
Key Trends
Challenges & Opportunities
3 Scenarios
Strategic Map
Current State of the DMO World
Key Trends & Issues
Major Challenges & Opportunities
4 Scenarios
Strategy Map
DMO Prototypes
Toolkit
What kind data are we talking about? More than 100 measures.
Familiar data like Meeting Sales… But also comparisons on Booking Pace…
And Membership… A look at leisure databases…
Interactive and Mobile traffic stats… And Social Media reach…
Again, more than 100 ongoing metrics that no other report provides and no one-time survey can touch.
Amanda Kotze-Nhlapo
South African Tourism
Barbara Kirklighter
Los Angeles Tourism and Convention Board
Bonnie Carlson
Bloomington CVB
Dana Markel
Omaha CVB
Eduardo Chaillo
Mexico
Eric Bakermans
Netherlands Board of Tourism & Conventions
Greg Ortale
Greater Houston CVB
Henrik von Arnold
Stockholm Convention Bureau & Visitors Board
Ho Yoke Ping
Malaysia Convention & Exhibition Bureau
James Seymour
Durban KwaZulu-Natal Convention Bureau
Steen Jakobsen
Dubai Convention & Events Bureau
Kana Nomoto
Yokahama CVB
Karen Bolinger
Melbourne Convention Bureau
Kevin Bagger
Las Vegas Convention and Visitors Authority
Heike Mahmoud
Berlin Tourismus & Kongress GmbH
Milos Milovanovich
Serbia Convention Bureau
Paul Vallee
Tourism Vancouver
Ulrike Von ArnoldCopenhagen Convention Bureau
Tammy Blount
Monterey County CVB