Margot Bigg

As travelers’ desires change and concerns about the impacts of tourism grow, the role of destination marketing organizations is also evolving. Today, DMOs have more to think about than just marketing.

Optimizing a fragmented and traditionally offline model is obviously going to take time. However, we expect key players in the tours and activities space to increasingly try new strategies not only to increase scale, access to distribution, and consumer reach, but also to enhance in-destination experiences for travelers and locals alike.

Emerging markets are taking over outbound travel. Economic growth is increasing living standards across the world and outbound travel is growing along. International Travel Expenditure is now shifting from a handful of countries who have historically made up most of the outbound travel to emerging markets.

For today's hospitality brands, loyalty programs are as much about repeat customers as they are about controlling distribution costs. Often times that means strategy at the property level, rather then at the brand level.

This report looks deep into the current state of destination marketing, with a particular focus on current and developing content marketing, digital advertising and data analytics strategies. Skift Research Annual Subscribers also gain access to our 2017 Digital Destinations Survey full results. We collected over 300 responses from destination marketing organizations worldwide to assess budget, spend on marketing, reported return on investment on advertising platforms, and other metrics. The data sheet is a downloadable Excel file a full breakout of results from this 35 question survey (Annual Subscribers only).

The tours and activities segment is a two-sided race, with the big online aggregators clamoring to bring both suppliers and travelers into the digital age. The category has a relatively short booking window compared to accommodations and flights, leaving little room to use the latest in digital marketing and retargeting tech. Average booking values are also significantly lower than other categories. Yet, despite the challenges, the opportunities remain significant; the category is very much the next (if not final) frontier in online travel.

Travel search and booking looks completely different today than it did just years ago. But the value-add that agents can bring to the travel experience will be difficult to obviate completely, either through disintermediation or automation. The intersection between high-tech and high-touch is now a key battle ground for travel brands the world over. Those with the customer care infrastructure to deliver could stand to gain, if they can get their digital house in order.