4. The DMO of the future


Published on

The role of the DMO in the future

Published in: Business, Travel
1 Like
  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

4. The DMO of the future

  1. 1. The DMO of the future<br />Team Exercise 4<br />Davide Antonelli, Mirko Chianesi, Andrea Scacchioli, Stefania Sossi, Simone Marco Vaglica<br />
  2. 2. Whatis a tourismdestination?<br />“A destinationis a space (city, region, major hotel), whichischosenby the guestas the goal ofhistravel. The destinationincludesallfacilitiesnecessaryforaccommodation, catering and entertainment/occupation”1.<br />“A destinationis a pattern ofattractions, relatedtourismfacilities and services, which the tourist or a groupchoosesfor a visitation and which service provider markets”2.<br />Bieger, T., Management von Destinatione und Tourismorganisationem. 2. ed. 1997, Munchen: Oldenburg<br />WTO, SustainableTourismDevelopment. Guide forLocalPlaners. 1993, Madrid<br />
  3. 3. <ul><li>…isdefinedbyguests;
  4. 4. …offers a multioptionalproduct in ordertomeetdifferentcustomerneeds;
  5. 5. …is a set ofproduct/experiences, influenced in a critical way by the roleofcompanies’ attitudes and theirwillingnessto cooperate;
  6. 6. …isanentitywhosecomponentparts are interdependentwhereby a change in onehasramificationsforallof the others;
  7. 7. …differsfromeachotherbysize, geographical position, culture, attractions and services.</li></ul>SO, A TOURISM DESTINATION…<br />C.P. Schucan - The roleofan Information concept in relation toDestinatio Management<br />
  8. 8. THE importancetohave A DMO<br /><ul><li>A DMO plays a key role in addressing the many and sometimesconflictingissuesthatarisebetweencontemporarytourismactors;
  9. 9. A DMO manages:
  10. 10. the processofdefinition, promotion and commercialisationof the tourismproduct;
  11. 11. Incomingtourists’ flows in a sustainable and sufficient way tomeet the economicneedsof the localsuppliers;
  12. 12. A DMO actsas a catalyst and a facilitatorfor the realizationoftourismdevelopments;
  13. 13. A DMO isresponsible fo management and marketing oftourism at national/regional/locallevel; (WTO) </li></li></ul><li>THE 5 primaryfunctionsof A DMO3<br /><ul><li>An “economicdrivers” generatingnewncome, employment and taxescontributingto a more diversifiedlocal economy;
  14. 14. A “community marketer” communicating the most appropriate destinationimage, attractions and facilitiestoselected visitor markets;
  15. 15. An “industrycoordinator” providing a clear focus and encouraginglessindustryfragmentation so asto share in the growingbenefitsoftourism;
  16. 16. A “quasi-publicrepresentative” addinglegitimacyfor the industry and protectiontoindivdual and groupvisitors;
  17. 17. A “builder of community pride” byenhancingqualityof life and actingas the chief “flagcarrier” forresidents and visitorsalike.</li></ul>3. Morrison, Bruen and Anderson - 1998<br />
  18. 18. DMO TRADITIONAL STRUCTURE<br />Membership: <br /><ul><li>22% Hospitality;
  19. 19. 18% Attractions, Culture , Institutions;
  20. 20. 18% events’services/suppliers;
  21. 21. 17% Restaurants;
  22. 22. 11% Retail network;
  23. 23. 14% Others;</li></ul>Operations:<br /><ul><li>13-15 full-time and 3-5 part-time employees (on average);
  24. 24. Onemain office and severalout-of-town/satellite offices;</li></ul>Source: DMAI<br />
  25. 25. DMO TRADITIONAL STRUCTURE<br />Funding/Finances:<br /><ul><li>Public funds (State/Province/City);
  26. 26. Taxrevenues (Hotel occupancy, Restaurants, CarRental, etc…)
  27. 27. Private funds (membershipfees);
  28. 28. Financial policies (Investments and reservespolicies);</li></ul>Major Expenses and costs:<br /><ul><li>48% Sales & Marketing; Communication, </li></ul> promotion and advertisement;<br /><ul><li>39% Personnel;
  29. 29. 13% Administrativeexpenses.</li></ul>Source: DMAI<br />
  30. 30. Internet & Social media<br />THREATS OR OPPORTUNITIES?<br />
  31. 31. INTERNET GROWTH TREND<br />Source: Internet System Consortium<br />
  32. 32. Online travelagencies<br /><ul><li>Exponential increase of information sources and travel choices available 24/24 and 7/7.
  33. 33. On line travel agencies are real travel agencies which run their business only on the web. Some of these OTAs are now becoming true giants of the travel intermediation (i.e. Travelocity, Expedia, Booking.com).
  34. 34. Furthermore, airlines are cooperating to develop new portals for online selling (i.e. Opodo, Orbitz) which, thanks to the technical possibilities offered by the GDS, want to increase their market shares, competing against travel agents on costs’ structure.
  35. 35. Consumers are now able to create their own sefl-made trip basing their choice on price, location, room types, travel dates, etc…</li></li></ul><li>SOCIAL MEDIA<br /><ul><li>Therelationship between tourism,the Internet and Social Media will continue to grow.
  36. 36. Social Media (i.e. Trip Advisor, Facebook, Twitter) have changed the way to interact, business and people have become a lot more “open”, having now the possibility to share information and opinions.
  37. 37. Consumers engagement have created an opportunity for enterprises to constantly monitor what people think and feel about almost everything.</li></li></ul><li>MOBILE<br /><ul><li>More than 50% of business travelers will use mobile to search or book their hotels. Mobile technology has the potential to enhance consumer experience due to the accessibility.: m-tourism is becoming more relevant day by day.
  38. 38. Mobile technologies have the potential to revolutionize the tourist experience, through their specific applications and also by sharing information through social media platforms and websites</li></li></ul><li>THE DMO OF THE FUTURE<br />Things are changing so rapidlythatitisalmostimpossibletopredictwhatisgoingtohappenwithin ten years, notonlyfor the DMOsbutevenfornormal life. the DMO will be the dominant, most influential and most respected force behind the world’s largest industry, even with very differently from now.<br />DMOs will have Virtual Offices:<br />Thanks to the rapid growth of the net and its mobility ad capacity to carry data, it would be useless to continue to have a physic office, so empolyees will be able to work together being on<br />line from everywhere. <br />So DMOs could save money from real estate and less personnel employable<br />
  39. 39. THE DMO OF THE FUTURE<br />DMOs will have Virtual Spaces in which customers would be able to interact with the product and “taste” or “simulate their trip experience in advance (Web 2.0)<br />DMOs will have a Social media strategy:<br />With their presence  on Social Media they will reach obviously the enormous number of members, they will have useful real-time feedbacks and the possibility to benefit from e-word-of-mouth and other indirect mean of advertisement and communication.<br />
  40. 40. THE DMO OF THE FUTURE<br />DMOs will be Mobile:<br />They would develop new apps for mobile device softwares (i.e. Apple, Android) in order to give an “interactive destination service” to their customers. These apps would provide real-time updated information about history, museums, emergency, attractions, hospitality, restaurant daily menus to the customer, directly from the palm of his hand.<br />DMOs will continue to receive Public and private funds: Their core work is not so easily replicable, so public government won’t to loose these powerful allies. Furthermore partnerships between DMOs and new tourism actors (OTAs, Social Media, etc) will continue to growth.<br />
  41. 41. CONCLUSION<br />The increased Tourism’ complexity described in the slide before, means that DMOs would have to be taken more seriously and professionally. DMOs would become an elite of people.<br />Their unique skills, experiences and professional attributes with the higher flexibility and technological power will create a very different but more powerful and evolved structure able to lead its destination through this always changing and challenging future .<br />