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      Destination Marketing

In these times of economic uncertainty, input provided by marketing research is playing an increasingly important role in the strategic planning efforts of destination marketing organizations (DMOs).  With a broad range of project experience, the professionals at Pioneer have been assisting clients in the destination marketing leisure travel industry for nearly 25 years. 

As our experience in the industry has grown, many of our assignments have focused on providing information in condensed formats so that strategic planners can concentrate on actually making decisions rather than just trying to understand/organize the data upon which those decisions are based.  

Because we have worked with a wide variety of clients representing all segments of the industry, Pioneer’s research team has developed an in-depth knowledge of the issues facing destination marketers.  The following list details many of the issues our clients in destination marketing are facing – some every day.  Of course, current economic conditions directly affect the priority in which these problems are addressed.  

• Defining Success.  For some destinations, the traditional measures used to define economic success may need re-examining.  Often, the challenge is to position the overall success and continued growth of an entire area against downturns in business among historically strong categories.  Showing that a destination is “doing well” cannot be over-emphasized.  Also, it is critical to promote community consensus on accurate and timely measures of economic success: number of visitors, visitor spending, inquiry conversion rates, economic impact, ROI, employment in key segments, tourism/sales taxes, etc.
  
  

• Coping with a Turbulent Economy.  Recent national and international economic events have drastically affected every part of the Travel and Tourism Industry.  Different segments have been affected in different ways, so it is important to understand how each segment is reacting to current economic uncertainties.  Will potential visitors reduce international travel?  Will they visit destinations closer to home in the US?  Will travelers continue to drive more and fly less?  Will people be able to afford to travel at all?  How significant is current trend in reducing business reward travel?  While there are a number of source for identifying national/ regional  trends, how the changing economy affects individual communities generally requires specialized research which is specific to that destination.
  
  

• Clash of Business Philosophies.  In many mature destinations, there seems to be a clash between “old school” and “new school” business philosophies.  Decisions on developing strategies for what is best for the long-term growth of all involved must be crafted without alienating traditionally important business segments.  The answers rarely lie in one camp or another.  Adjustments, even compromises, need to be made to ensure the continued growth of the destination as a whole.  In addition, communications must be developed to foster adjustments in the expectations of the community made necessary by the expansion/turnover of a destination’s inventory of activities for visitors.
  
  

• Positioning Strategies.  Destinations need to manage the image they want to present to the traveling public.  This includes being open to develop new approaches which can successfully entice new visitor segments.  Pioneer has worked with a number of destinations to determine which options are best: keep doing what they are doing but do it bigger and better; attract visitors from additional, non-traditional markets; enticing entirely different visitor segments, e.g., families instead of couples or Gen-Xers instead of seniors; and/or creating specialized niche markets.
  
  

• Cannibalization of Traditional Visitor Base.  New strategies must not jeopardize a destination’s current visitor base.  There is no reason to “mess with success” among traditional strengths.  Thus, all promotional/marketing efforts must be implemented without significantly damaging a destination’s primary source of visitors – the core market.
  
  

• Shifting Seasons. Similarly, marketing plans and strategies must ensure that promoting growth of visitation during one season may well reduce business during other seasons – resulting in no net benefits to the community as a whole.  At the same time, changes in media allocation may help by adding needed weight in traditionally off-seasons.  These shifts could make everyone’s primary advertising more efficient by reducing the clutter caused by the tremendous weights used during heavy ad campaign season – typically in the Spring.
  
  

• The Internet. Increasingly, potential visitors are using web-based resources to make key travel decisions.  It is important to understand what percentage of visitors are using the Internet and for what purposes, e.g., are they selecting a destination to visit, or are they searching for what to do after they arrive?  A DMO’s webmaster must insure that its website is not only current, but also reflects an image that is consistent with the destination’s overall promotional, advertising, and marketing strategies.

The key to a successful website is fully understanding the visitor’s experience and utilizing content strategies which highlight a destination’s strengths and maximize appeals to visit.  Moreover, information about a destination appearing on other websites (both within and outside of the destination) must be monitored/ managed to insure the accuracy, timeliness, and appropriateness of the content.

• Reasons for visit versus activities while in town.  To fully understand the motivations of their visitors, DMO decision-makers must separate why people come to a destination from what they do after they arrive.  The difference may be subtle, but it is extremely important.  DMOs are traditionally charged with getting travelers to the city limits while individual properties are generally responsible for getting visitors to their unique places of business. Again, the key is developing/ testing an appropriate mix of appeals in a destination’s marketing communications.

• First-time visitation.  The first-time visitation rate is an important statistic for all destinations.  If the proportion of first-time visitors falls below a critical level, a non-replacement cycle may kick in.  For mature destinations, it becomes increasingly difficult to replace traditional visitors as they age and become less able to travel.  Our experience indicates that the lowest threshold for first-time visitors is 25%. Ideally, the first-time visitation rate should be 33% or higher.

• Ticket Purchasing Patterns are Changing. Over the years, many leisure travelers have traditionally planned their entire trip (lodging, meals, activities, attractions tickets, event admissions, and even shopping budgets) before they left home. However, more and more travelers are making some of these decisions after they arrive at a destination. Business downturns create weaker prior-reservation demand.  Thus, normally full shows, hotels, attractions, and lodging properties are no longer sold out, even during peak seasons.  The benefit to visitors is that they do not have to have to plan their entire trip in advance.  The “trick” is to channel visitors’ newfound spontaneity into significantly more “walk-up” business.

TYPICAL RESEARCH PROJECTS AND ASSIGNMENTS

1. Image and Awareness Studies:  The objective of this research is to identify how the traveling public perceives a destination.  This information is used to analyze the effectiveness of current marketing strategies/advertising programs and to develop new strategies for use in promotion and advertising programs.
   

2. Visitor Satisfaction Surveys:  The objective of this research is to understand and measure the visitor’s experience.  Usually conducted on-site, areas of inquiries typically include type of visiting party, length of trip, reasons for visit, activities while in the area, aspect of the trip liked most, suggestions for improvement, likelihood of returning or recommending, as well as selected demographic and psychographic questions. A major outcome of this research is the development of a profile of the "typical visitor."
   

3. Market Segmentation Studies:  The overall goal of these research programs is to develop marketing strategies for increasing a destination’s appeal among a wider variety of potential leisure travelers while, at the same time, maintaining its current visitor base.  There are a number of different methods for identifying and classifying visitors, including:  generational cohorts (Millenials, Gen-Xers, Baby Boomers, Matures) and type of traveling party (family, adults only <55, adults only 55+).  In addition, psychographic information is gathered to fine-tune strategic planning efforts.
   

4. Economic Analysis Studies:  It is becoming increasingly vital for destinations to demonstrate that their efforts to promote tourism are worth substantial investment of dollars.  Timely and accurate economic impact studies -- including return on investment (ROI) statistics -- may be the most critical research currently being conducted by destination marketing organizations.
   

5. Advertising Research Studies:  When budgets are available, advertising research is a key aspect in the development of a destination's overall promotional strategies and plans.  Research findings are used during nearly every phase of the process -- from conducting focus groups during initial concept testing/development through peer-to-peer telephone interviews to measure advertising exposure, tracking, and impact.
   

6. Inquiry Conversion Studies:  The results of conversion research are designed to give the marketing staff and committees specific information on the overall impact of a destination's advertising program.  Among the topics typically covered are visitation (inquiry conversion), economic impact, reactions to promotional materials, overnight stays, choice of accommodations, and selected visitor demographics.  In addition, the sources of inquiries (toll-free numbers, mail inquiries, print ads) and fluctuations in conversion rates among target markets are tracked.
   

7. Feasibility Research:  This type of project generally involves analyzing the likelihood of success for proposed meeting and convention facilities. Specific areas of investigation include descriptions of meetings held, average costs, types of meeting rooms needed, recreational facilities needed, amenities desired, facilities currently used, and the likelihood of using the proposed facility.  Study results are often used in both the design and marketing stages of new facility development.
   

8. Welcome/Visitors Center Research:  Marketing research conducted among visitors to welcome centers helps a destination evaluate the services it is providing for the traveling public -- especially for new arrivals and first-time visitors.  Topics covered during the short intercepts include impressions of the facility itself, satisfaction with the quality of information received, perceptions of the friendliness and knowledge of the staff, quality of maps and directions, and impressions of other services provided at the welcome center.
   

9. Special Events:  Many destinations conduct on-site interviewing during holiday celebrations, special events, festivals, and other special occasions.  The results of these studies help profile visitors to an event and provide a means of comparing/contrasting the needs/wants of an event’s visitors with those of visitors during other events/seasons.  Moreover, research at a special event supplies first-hand data for use in developing estimates of the event’s overall impact on the destination's economy.