How Destination Marketing Organizations Can Better Defend Their Budgets
January 17, 2018 10:37am
Don’t wait for budget kick-back to happen. Here’s how to be better prepared with data and arguments so you can retain valuable destination marketing budget
By Carolyn Childs
It’s brutal reality. Many destination marketing organisations (DMOs) are now tasked with doing more with a lot less money. Marketing money is tight most places. US States are facing dramatic budget cuts. (Brand USA may even be scrapped.) Visit Britain has suffered years of cuts. There are many examples around the world.
So what can DMOs do to better manage the process?
Having worked closely with DMOs over the years, MyTravelResearch.com believes it’s time for destination marketers to quietly review their budget defence assumptions and techniques. It’s not just about this year or next year. It’s a long-term strategic issue.
Having looked across the range of successful strategies and talked to a variety of DMOs from national tourism organisations to local government areas, councils and towns, MyTravelResearch.com believes there are three indispensible elements to defending your marketing budget.
We call it the “ACE” strategy.
A is for Allies. Gather Them Around You
The most successful DMOs we have seen have a network of people to support them that is both deep (within the visitor economy) and broad (across other sectors).
You need to ask yourself, “Whose views are CFO and public auditors going to respect and trust?” “Who is too important to ignore?” To use a case study from Australia, it was the political clout of the farming sector that helped the tourism industry mitigate the impact of the backpacker tax in 2016-17.
Furthermore, don’t underestimate the importance of the public in this. Call upon as many allies as possible – the public, different sectors, chambers of commerce, NGOs. Build a network of allies with skin in the game.
The Big C: Collaborate With Your Allies
Once you have your network built, speak with one voice. As tourism is a sector with competing destinations and many players – theme parks, attractions, restaurants, nature reserves -- there is a temptation for everyone to put their own spin on the story and try to lead it.
Don’t let that happen. Identify who should lead the message and keep it consistent across stakeholders. Policymakers have told us that it is the industry’s inability to do so that makes it financially vulnerable relative to other sectors of the economy.
E is for Evidence. Master It
Finally, you need to support your allies and your case with firm evidence. What would be the effects of a budget cut? Which of your allies has evidence that might help? How robust is their data? Can you verify it?
But beyond allies and evidence, we’ve found that you need to understand the mindset and concerns of financial controllers if you want to persuade them.
Belief in the value of destination marketing varies a lot amongst legislators and budget controllers. Marketers often have a limited idea about those doubts and concerns. Understanding and speaking to those concerns is vital. Just as with customers, we need to see the process from decision maker’s point of view.
Budget kick-back could happen tomorrow. Plan for it.
It’s not a guaranteed approach, but we have found the three pillars of “ACE” to be most effective when securing or defending a budget. Indeed, an ACE strategy might even help you increase it.
Tags: carolyn childs,
destination marketing organization
Carolyn has spent more than 25 years’ helping businesses achieve their goals by using research and other evidence to guide strategy and planning – mainly in the aviation, travel and tourism fields. She has worked in more than 35 countries on every inhabited continent and brings a detailed understanding of customers and how to connect with them. As well as running her own businesses, she has worked for organisations such as the International Air Transport Association, TNS (the world’s largest custom research company) and the Travel Research Centre. Her clients include blue chip names across the industry including Aer Rianta, Tourism Australia, TurEspana (Spanish national tourism organisation), Air New Zealand, Qantas and Emirates.
Her passion is making a difference and she does this by making research accessible and business focused. With Bronwyn White, she co-created Domesticate™ (now owned by TNS) – one of the industry’s most respected sources of strategic direction for the Australian domestic tourism market.
She set up MyTravelResearch.com with Bronwyn in 2011 to help fulfill this passion by making the tools, approaches and insights accessible to everyone.
Carolyn is a regular speaker at conferences. She is currently President of the Asia Pacific Chapter of the Travel and Tourism Research Association, is a Certified Member of the Market Research Society and has sat on the UNWTO Panel of Tourism Experts.
Contact: Carolyn Childs
+61 (0) 416 213962
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