The Great Reassessment
Destination Marketers hit the “Pause Button” in 2020 and our communities have been rocked by “The Great Resignation” in 2021. As we approach 2022, are DMOs on the verge of “The Great Reassessment?”
Last week on our blog (you can subscribe here), we shared that we had a fascinating conversation with a resort GM that reported that this has been his biggest year in history. And, they broke records without international travel…previously a pretty significant part of their business. He also said that his customer base was primarily drive consumers with very limited domestic air business.
While this dynamic may shift in the coming years (all trends do)…it begs a more fundamental question that we’ve had for decades. Why do so many American DMOs pursue the international market when it is the hardest and most expensive market out there? Do we really believe we have maximized the leisure consumer market within a 3-hour drive; that there is no one left that doesn’t have a complete appreciation of our destination so that we have to target international travelers?
Don’t get me wrong. I’m a big fan of the Mark Twain quote that “travel is fatal to prejudice, bigotry and narrow-mindedness.” And, we need that more than ever in our world. But, if we can fill our destinations with domestic travelers at a significantly lower cost, our ROI soars.
And, over the weekend, Australia’s Tourism Minister assured attendees at an aviation conference that his country doesn’t “need” the revenue for which they used to depend on from Chinese travelers. Dan Tehan says that pent up demand from other countries will cover the loss of their previous number one feeder market.
Next week, we’ll be posting a new episode of the DMOU podcast in which we’ll hear from 17 DMOpros, recorded at Destinations International’s Advocacy Summit, on what they’ll do new for 2022 (subscribe here with the green button in the upper right corner to be the first to hear when new episodes post). And, I think reconsidering traditional markets will be just as important in the next year.
Our other thoughts for your consideration over the holidays, during which we hope you have a chance to exhale and plan your next steps for the New Year:
Diversity, Equity & Inclusion: It was two years ago that an industry trade publication predicted that the hospitality industry would give up on its efforts to achieve a higher level of Diversity. Months later, the killing of George Floyd made that prediction mute, as DEI became a constant in our conversations as Destination Marketers. But, where are we today?
Count me as one who believes solid work was being done behind the scenes in 2021 with Tourism Diversity Matters (and we’ll be re-connecting with TDM Executive Director Greg DeShields next year on DMOU) and that, now that budgets are coming back, DMOs will be able to focus more intently on things that will make their organizations and destinations great, rather than just survive.
DMOs as Community Marketing Managers: This will be a work in progress…but, we think the evolution of Economic Development, Downtown and other Community Development Organizations contracting with their DMOs to provide brand-enhancing marketing oversight is beginning to gain momentum. And, it only makes sense. It reaffirms the relevance of DMOs to community leaders who have yet to realize that telling the stories of our destination (all the stories for all the audiences) is what DMOs do better than any other agency.
If you are curious as to how something like this might work, check out our position paper on the future of Community Development. And then, let your mind consider the possibilities.
More Uneducated and Unsophisticated Assaults on DMOs: Government leaders are increasingly calling for the dismantling of Regional DMOs plays, claiming their community needs their own identity. Others are putting their contract for Destination Marketing services out to bid (as if there are several qualified DMOs waiting in the wings in their town, breathlessly waiting for such an opportunity). While some Regional divorces have merit, assigning a DMO contract to an ad agency rarely does.
2022 will be the year that DMO CEOs need to get deadly serious about preparing their Boards for their most important role…Advocacy for the Organization. If a Board Member feels uneasy or unwilling to publicly represent and defend the DMO, they need to find their volunteer home on a Committee or a Task Force (and not the Board). As we made clear in Destination Leadership, the best Boards are those that have copious influence in their community…and are ready to wield it. As Destinations International’s Jack Johnson said at this year’s Advocacy Summit, “time’s up.”
The “Great Reassessment” is upon us. Are you ready to rock?