Today’s Discussion
Why Rethink? How was Rethink done? What did Rethink discover? How does Rethink suggest we succeed? What are Tourism Vancouver’s key actions?
2
WHY RETHINK?
change is the process by which the future invades our
lives-> Alvin Toffler
Here
DMO
Stakeholders
Here
Operators
Ok
Discuss the best opportunities to pursue.
Get issues and concerns out in the open.
The destination challenge: standing out from the crowd
desired outcome #1
Alignment on strategic direction.
desired outcome #2
Destination marketing to be even stronger.
desired outcome #3
Improved destination performance.
HOW WAS RETHINK DONE?
The Rethink Brief
Have a destination view
Engage with industry
Collaborate on strategies
Explore new ideas
Stages of Rethink
1st Destination 2nd Industry 3rd
TVan
Stakeholders
Destination Strategic Planning Session
Market Scan
LeadersGroup
Stakeholders
Destination Strategy Testing
LeadersGroup
PlanRefinement
Phase 1: Destination Strategy
High Level Strategic Views
Destination goals
Performance measures
Market approaches
Local brand perceptions
Destination vision
Priority markets
Market trends
Business opportunities
Business drivers
Adaptation strategies
Stakeholders
Corporate StrategicPlanning Session
Market Scan
LeadersGroup
Stakeholders
Organization Strategy Testing
LeadersGroup
Final 2020Rethink Plan
Phase 2: Organization Strategy
High Level Strategic Views of Tourism Vancouver’s
Structure
Operations
Marketing
DMO Business Model Assessment
Tourism Vancouver
DMO Best Practices• Organization• Structure/Resources• Marketing• Communications• Services• Performance• Management
Corporate best practices in performance measurement and
management
WHAT DID RETHINK DISCOVER?
An industry consensus on what it wants to accomplish together.
Must-visit, 365 days a year.
Vancouver.
Vancouver’s tourism industry will work together to offer
compelling reasons for travellers to visit, and will deliver
unsurpassed experiences that motivate them to return and
to become enthusiastic promoters of Vancouver.
Values
Build on Vancouver’s
energy
Deliver sustainable
benefits
Reinforce local values
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
Destination Goals for 2020
Enabling policies Reinvention
Organic marketing Competitiveness
Leveraging Collaboration
Destination Strategies
HOW CAN WE CREATE THE CONDITIONS FOR SUCCESS?
A Tourism Alliance Would Help Energize Vancouver’s Tourism Network
Tourism Alliance
Primary Purpose:
a. Collaborate on marketing
b. Facilitate regional tourism planning processes
c. Form consensus on policy initiatives
d. Support product development
Vertical and Horizontal Integration
Tourism Master Plan
Events / Activity / Precincts
One message – Many voices
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
Community Vision
The tourism industry will be stronger if it’s not “going it alone” and is part of something bigger.
Vancouver’s Branding
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”
Four Key Pillars of Destination Management
Destination Management
Marketing – focus on tourism customers
Planning – focus on stakeholder interests
Policy – focus on influencing policy makers
Product – focus on attracting investors
Case Study: Comprehensive Destination Management
An Industry Development Group – focusing on Arts & Entertainment, Attractions, Dining & Retail, Cruise, Sports and Hospitality.
A Sector Planning and Development Group – focusing on Research, Planning, Visitor Information and Capability & Innovation.
A Destination Experience Group - focusing on Land & Asset Management, Precinct Development and Tourism Concept Development.
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
STB is essentially a National Tourism Organization (NTO.) In addition to brand management and convention and leisure market development, STB also has: Marketing
Policy
Product
Planning
Vancouver’s Vision Necessitates Comprehensive Destination Management
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
DMMOs?
Defining the Future of DMO Governance Structures will Likely Involve Significant Strategic Reinvention
Governance
Tourism industry “ownership” of Tourism Vancouver makes it an exclusive club
Tourism Vancouver would benefit from a broader constituent base and a broader source of knowledge and innovation.
Tourism Vancouver needs a broader leadership framework
Disenfranchisement
Thought Leadership
Limited seats at the table
DMO Governance - Tactical or Strategic?
Tourism Industry or Community Organization?
Deeper Tourism Sector Involvement
Is the Destination Fully Engaging its Brain Trust?Governance
VisionExciting Entertainment
Attractive Architecture, Design
Welcoming Hospitality Training
ValuesBuilding 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
Must Visit Imagineering
Year Round Events Development
Traditional Bureau RolesSales
Branding
Customers
Industry Leaders
Members
Destination ManagementPolicy Political, corporate, unions, community
Performance Business
Partnerships Other DMOs, sector leaders
Planning / Research Universities
Product Developers, Investors, Arts & Cultural
360 Degree Accountability Should Extend Throughout Vancouver’s Tourism Industry
Accountability
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.
Efficient Sales Person Design
21Mouth Ears
Communications
Communications
TVan is using sophisticated CRM capabilities for “market customers” but not for “internal
customers.”
Members
Tourism Vancouver
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
Membership Program
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.
Internal Structure
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.
Tourism Vancouver Could Consider an Even Flatter Approach To its Organizational Structure
Internal 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.
We Identified a Need for a Major Increase in Tourism Vancouver’s Funding
Resource Needs
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
ProfileProfile
Funding SourcesFunding Sources
EU Government 3% National Government: 7% Provincial Government: 24% Local Government: 7 % Private Participation: 10% Networks: 49%
EU Government 3% National Government: 7% Provincial Government: 24% Local Government: 7 % Private Participation: 10% Networks: 49%
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) Cruise Brand Fashion Culture
Budget: USD $43 M* Total Staff: 100
Leisure Marketing – 22 Convention Sales – 20
Population: 1,180,000
Food Leisure Ambassadors CPN Connected (route development) 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-inMore Organic More Sustainable
WHAT ARE TOURISM VANCOUVER’S KEY
ACTIONS IN RESPONSE?
1. WORLD CITY VISION
future roadmap 2. TOURISM MASTER PLAN
co-creation
3. METRO VANCOUVER TOURISM ALLIANCE
strategic fit
Lead Roles in Relation to Structure
Tourism Vancouver
Tourism Alliance
Possible TVan Networks
Management Services
Strategy
Marketing Collaboration
Policy Consensus
Resource Development
Sales & Marketing
Planning
Product Development
Advocacy Groups
Lobbying
Policy Development
Research
Customer Service
Programs
4.BROADER MANDATE
DMO
4.BROADER MANDATE
DMMO
53
Destination Marketing Partners
Sales Members
Branding Stakeholders
Servicing Community
Destination Management Partners
Policy Political, corporate, unions, community
Performance Business
Partnerships Other DMOs, sector leaders
Planning / Research Universities
Product Developers, investors, arts & cultural
5. NETWORKS/MODULES
dmo
Networks/Modules
Advisory Councils
ConventionsVancouver
DestinationVancouver
Explore Vancouver
Sports/Events
OpportunityMarketingStakeholders
/MembersModule/Network
6. COALITION
HotelAssociation
TVan
Coalition
Coalition Responsibility
Approve plans
Approve budgets
Monitor results
7.YEAR-ROUND ACTIVITY
We will build business together…
… through organizing ourselves…
… by jointly developing a roadmap of where we want to go…
… and measuring the success of what we do.
Rethink Vancouver
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