The Rethink Brief Have a destination view Engage with industry Collaborate on strategies Explore new ideas
Stages of Rethink 1st 2nd 3rdDestination Industry TVan
Phase 1: Destination Strategy StakeholdersLocal brand perceptions High Level Strategic Views Stakeholders Destination vision Destination goals Destination Strategy Testing Performance measures Priority markets Market approaches Market trendsBusiness opportunities Leaders Leaders Business drivers Group Group Adaptation strategies Destination Strategic Plan Planning Session Refinement Market Scan
Phase 2: Organization Strategy Tourism Vancouver Stakeholders DMO Business Model Assessment High Level Strategic Views of Stakeholders Tourism Vancouver’s Organization Strategy DMO Best Practices Structure Testing• Organization Operations• Structure/Resources• Marketing Marketing• Communications• Services• Performance• Management Leaders Leaders Group Group Market Scan Corporate best practices in Corporate Strategic Final 2020 performance measurement and Planning Session Rethink Plan management
work together to offerVancouver’s tourism industry willcompelling reasons for travellers to visit, and will deliverunsurpassed experiences that motivate them to return andto become enthusiastic promoters of Vancouver.
Values Build on Vancouver’s energy Deliversustainable benefits Reinforce local values
Destination Goals for 2020 Vancouver will be ranked as one of the top 10 “must visit” destinations in the world Vancouver will achieve high levels of growth in every season of the year Vancouver’s visitors will have such great experiences that they will become destination ambassadors Vancouver’s tourism industry will sustain over $10 Billion per year in visitor spend
Tourism Alliance A Tourism Alliance Would Help Energize Vancouver’s Tourism Network Primary Purpose: a. Collaborate on marketing Vertical and Horizontal Integration b. Facilitate regional tourism planning processes Tourism Master Plan c. Form consensus on policy initiatives One message – Many voices d. Support product development Events / Activity / Precincts
Community Vision Tourism as Part of a Larger Community Vision Halifax as “Canada’s Atlantic Gateway” City of “Creativity and Culture” “Experience Economy” “Best Big City on Earth” Asian Leader The tourism industry will be stronger if it’s not “going it alone” and is part of something bigger.
Branding Vancouver’s Branding Vancouver has a sophisticated brand strategy, but, the industry is not aware of it, doesn’t understand it, and is not supporting it. “Every shoulder to the brand wheel”
Destination Management Four Key Pillars of Destination Management Marketing – focus on tourism customers Planning – focus on stakeholder interests Policy – focus on influencing policy makers Product – focus on attracting investors
Destination Management Case Study: Comprehensive Destination Management STB is essentially a National Tourism Organization (NTO.) In addition to brand management and convention and leisure market development, STB also has: Marketing An Industry Development Group – focusing on Arts & Entertainment, Attractions, Dining & Retail, Cruise, Sports and Hospitality. Product A Sector Planning and Development Group – focusing on Research, Planning, Visitor Information and Capability & Innovation. Planning A Destination Experience Group - focusing on Land & Asset Management, Precinct Development and Tourism Concept Development. Policy As a city based tourism organization STB has the unique advantage of NTO sized resources and arguably one of the most supportive and committed governments in the world.
Destination Management Vancouver’s Vision Necessitates Comprehensive Destination Management Currently, destination management is ad hoc • DMOs fulfill some roles, but, not comprehensively. • Cities fulfill others, but, with limited consultation with the industry. Should CVBs become
Governance Defining the Future of DMO Governance Structures will Likely Involve Significant Strategic Reinvention Tourism industry “ownership” of Tourism Vancouver makes it an exclusive club Disenfranchisement Tourism Industry or Community Organization? Tourism Vancouver would benefit from a broader constituent base and a broader source of knowledge and innovation. DMO Governance - Tactical or Strategic? Limited seats at the table Tourism Vancouver needs a broader leadership framework Thought Leadership Deeper Tourism Sector Involvement
Governance Is the Destination Fully Engaging its Brain Trust? Traditional Bureau Roles Destination Management Sales Policy Political, corporate, unions, community Industry Leaders Branding Performance Business Members Customers Partnerships Other DMOs, sector leaders Planning / Research Universities Product Developers, Investors, Arts & Cultural Vision Exciting Entertainment Must Visit Imagineering Attractive Architecture, Design Year Round Events Development Welcoming Hospitality Training Values Building Energy Urban Dynamics / Human Resources / Labor / Corporate Supporting Local Values Urban Planners. Government and Community Leaders Sustainable Economic Benefits Economists Sustainable Cultural Benefits Cultural Tourism and Arts Advocates Sustainable Environmental Benefits Environmentalists Appreciative and Supportive Community Community Advocates
Accountability 360 Degree Accountability Should Extend Throughout Vancouver’s Tourism Industry Industry accountability should include issues like: a. Brand support b.Participation in quality and research initiatives c. Industry unity and collaboration d.Government and Community support e. Achievement of goals identified in plans for which the DMO cannot exercise control.
Communications Efficient Sales Person Design 1 Mouth 2 Ears
Communications TVan is using sophisticated CRM capabilities for “market customers” but not for “internal customers.” Members Tourism Vancouver
Membership Program Key Conflicts Surrounding Traditional Membership Models Generation Change and Technology May Render Traditional Member Models Obsolete. • Controlled “official” content is not the future Member Imperatives May Conflict with the Prime Directive of Customer Service • Member only referrals will ultimately lead to a loss of credibility, which leads to loss of audience, which makes membership less valuable Strategic positioning could be encumbered by member imperatives The DMO Value Proposition May Need To Change • Old paradigm – building “market” and driving business to members • New paradigm – only building “market,” members responsible for their own outcomes
Internal Structure Case Studies: Flat and Organic Operational Environments “Don’t be evil” - Google employees are mostly accountable to themselves. The 70 – 20 – 10 rule: 70% current assignments, 20% related projects, 10% whatever Dynamics: Small teams that organize quickly and move on. Few managers, who don’t over manage. Goal Setting: Employees set their own goals and measurements quarterly. Cross-Functional: No formal channels. Flat – Need to react quickly to changes in market dynamics. Verticals are Agile – Production teams led by product managers can make decisions. Few Levels of Management – Employees are equal and report to department heads who report to CEO. “Organic, flexible and low pressure.” Faster and More Economical - No middle-management, communication flows more freely and quicker decisions. Autonomy – Complete job tasks without seeking approval from a supervisor.
Internal Structure Tourism Vancouver Could Consider an Even Flatter Approach To its Organizational Structure Cross functional project teams - enhancing communications and interaction. More agile - better equipped to respond quickly to changes in market dynamics. Focus on innovation - reassigning middle management roles could increase empowerment and achieve a more organic market approach. Greater outputs - Increased autonomy with individual productivity expectations. Addressing new market realities - restructuring human resource deployment Substance, not form - Tourism Vancouver could use this opportunity to redesign around destination goals, rather than traditional functions.
Resource Needs We Identified a Need for a Major Increase in Tourism Vancouver’s Funding Competitiveness in conventions & tourism Events development Activation of underserved markets • Cruise / incentive / corporate / exhibitions • GLBT / cultural / health & lifestyle / culinary Market rationalization – e.g. visitor services Question: If a DMO needs $20 million in new funding, which approach is more likely to succeed: A. Ask government and industry for $20 million B. Spin off networks that are asking government and industry for smaller amounts that may add up to $20 million
Case Study: The Network Model Profile EU Government 3% National Government: 7% Budget: USD $43 M* Funding Provincial Government: 24% Total Staff: 100 Sources Local Government: 7% Leisure Marketing – 22 Private Participation: 10% Convention Sales – 20 Networks: 49% Population: 1,180,000 WoCo as a “Business Foundation” WoCo operates 15 networks which are task/project related entities. Private associations, each having their own board. About half of the funding is coming from the private sector. WoCo serves as the management company for each network. Examples of Networks: Conventions (the bureau) Food Cruise Leisure Brand Ambassadors Fashion CPN Connected (route development) Culture Bicycling Promotion (green transport)
Why the Network Model May be the Future Tourism Alliance – It’s a network component Community Vision – Broader community involvement Marketing – More vertical and horizontal integration Branding – Networked brand extension Destination Management – Even a DMMO can’t do it alone Governance – More seats at “the table” mean broader engagement Accountability – Networked accountability in manageable terms Resource Needs – Not just the DMO asking for support Communications – Networked and organic Membership Models – More resources through more buy-in More Organic More Sustainable
WHAT ARE TOURISM VANCOUVER’S KEY ACTIONS IN RESPONSE?
Lead Roles in Relation to Structure Tourism AllianceTourism Vancouver Policy Consensus Advocacy GroupsSales & Marketing Marketing Lobbying CollaborationCustomer Service Policy Development Planning Management Research Services Product Development Possible TVan Networks Strategy Programs Resource Development
Destination Marketing PartnersSales MembersBranding StakeholdersServicing Community Destination Management Partners Policy Political, corporate, unions, community Performance Business Partnerships Other DMOs, sector leaders Planning / Research Universities Product Developers, investors, arts & cultural 53