Transforming Tourism: An Outlook on Destination Marketing
Nick Hall and Mark Lapidus discussed the current shape of digital tourism marketing on the Brand USA Talks Travel podcast.
Nick Hall and Mark Lapidus discussed the current shape of digital tourism marketing on the Brand USA Talks Travel podcast.
The tourism industry is constantly evolving. Staying ahead of the curve requires adaptability, innovation and a deep understanding of current trends. As a thought leadership platform, the Digital Tourism Think Tank (DTTT) is dedicated to guiding destinations through the digital transformation process and sharing international best practices. DTTT Founder and CEO, Nick Hall, discussed the current shape of digital tourism marketing with Mark Lapidus, Vice President, Product and Technology at Brand USA, on the Brand USA Talks Travel podcast.
In his interview, Nick emphasised the inherent cultural differences in destination marketing, comparing the strengths of European and US approaches. While Europe excels in creating highly impactful brands that provide long-term brand vision, US destinations are more commercially-oriented which ensures a strong return on investment and the formation of effective partnerships between the private and public sectors.
Nick also spoke about the rise of generative AI and how it presents exciting opportunities for marketers, from crafting stunning visuals to automating content creation. However, rapid advancements come with challenges. Finding relevant examples of the implementation of generative AI can be surprisingly scarce, highlighting the need for cautious exploration. DTTT's upcoming AI Strategy and Leadership programme tackles these concerns head-on, equipping marketers with the essential principles and awareness of potential pitfalls, like the crucial question of data provenance in AI-generated content. Ultimately, navigating the complexities of AI requires both embracing its potential and approaching it with informed caution.
Two standout examples of leveraging AI technology in destination promotion are:
These examples show the importance of experimentation and playing with new ideas to create truly engaging content for travellers. This entails having open minds and retaining in-house creative control within DMOs, who should display confidence in developing novel ideas and working with partners that can bring them to life.
A recent study of nearly 300 destinations worldwide conducted by the DTTT and Sojern reveals a significant shift in marketing strategies. Destinations are no longer solely focused on top-of-funnel brand building, but 80% are actively engaging in full-funnel marketing through co-op campaigns. Despite the buzz around new media formats like gaming, audio and connected TV, DMO marketing budgets are still dominated by social, search and programmatic advertising. However, with 60-80% of spending going towards paid media, optimising content distribution through the right is crucial, with content creation needing to support the selected media mix.
The study also highlights the evolving skillset of DMOs. While traditional skills like email marketing and content management remain crucial, alongside the increased importance of data analysis. Design, user experience and loyalty management are skills that are underdeveloped in destination management, yet act as key differentiators. Investing in these areas, particularly in light of the shift towards first-party data ownership, will help destinations create a competitive edge beyond mere promotion.
When asked about challenges, DMOs overwhelmingly cited engagement and optimising return on investment as the most pressing issues, while budgetary constraints weren’t a major concern. Instead, the study identifies the challenge of effectively allocating existing budgets across numerous channels, formats and audience groups. Finding ways to streamline this workload effectively is key.
With Google making a bold stance in abandoning third-party cookies combined with tight data privacy rules in Europe and the US, the future of destination marketing demands building strong, loyal audiences through compelling content. Forget passive recipients of promotional messages; cultivate a community that actively seeks engagement with your voice and stories.
Investing in premium content is key to creating a gateway of loyal advocates. It attracts high-value visitors who spend more, return frequently and engage deeper – even during off-seasons. These are the travellers who crave local narratives and hidden gems and only through captivating content can you unlock those layers. By embracing creativity and partnering with content creators to leverage their reach, DMOs amplify their unique voices and can share local stories.
Nick and Mark discussed the fact that US DMOs recognise the strong affinity British travellers have for the US, but one of the opportunities which US destinations could build on more is travellers’ desire to go off the beaten track and discover the diversity of the US. It's really important to understand affinity and different behavioural aspects, which can help identify the right travellers and pinpoint them in a more targeted manner by segmenting based on interests instead of demographics.
As an example, Destination Canada's partnership with TED was a brilliant piece of tourism marketing. By focusing on fascinating, non-traditional topics like the country's extreme climate, indigenous communities and cultural tapestry, the DMO effectively captured the imagination of a wide audience and challenged common perceptions of Canada. This approach is not only refreshing, but also highly effective in reaching new demographics and sparking genuine interest in visiting the country. It's a reminder that tourism marketing can be both informative and inspiring and that sometimes the most unexpected stories can be the most captivating.
The assumption of cultural similarity between the US and the UK due to shared language overlooks a wealth of subtle differences. These distinct quirks and nuances, from linguistics to cultural norms, present a treasure trove of playful marketing opportunities. Instead of shying away from the disparities, embracing them can allow brands to build on the strengths of both nations, crafting unique and engaging experiences for consumers on both sides of the Atlantic. The ‘Sounds of the USA’ campaign, connecting musical genres with specific destinations, exemplifies how tapping into shared cultural passions and delving beyond surface-level similarities can forge powerful connections with audiences.
While the tourism sector is perceived to be lagging behind other industries in terms of its development, it is a very innovative industry with a wealth of knowledge that can be shared among a diverse range of complementary industry players. Bringing destinations together at an international level enables fruitful discussions and the exchange of opinions to help Destination Marketing Organisations (DMOs) benefit from a global perspective and get inspiration directly from other destinations. The DTTT's flagship events are more than just conferences; they're immersive experiences designed to spark creativity and ignite change:
The DTTT also actively produces podcasts to help share the latest trends and emerging technologies that facilitate innovation across the various segments of the tourism industry:
The tourism industry is constantly evolving. Staying ahead of the curve requires adaptability, innovation and a deep understanding of current trends. As a thought leadership platform, the Digital Tourism Think Tank (DTTT) is dedicated to guiding destinations through the digital transformation process and sharing international best practices. DTTT Founder and CEO, Nick Hall, discussed the current shape of digital tourism marketing with Mark Lapidus, Vice President, Product and Technology at Brand USA, on the Brand USA Talks Travel podcast.
In his interview, Nick emphasised the inherent cultural differences in destination marketing, comparing the strengths of European and US approaches. While Europe excels in creating highly impactful brands that provide long-term brand vision, US destinations are more commercially-oriented which ensures a strong return on investment and the formation of effective partnerships between the private and public sectors.
Nick also spoke about the rise of generative AI and how it presents exciting opportunities for marketers, from crafting stunning visuals to automating content creation. However, rapid advancements come with challenges. Finding relevant examples of the implementation of generative AI can be surprisingly scarce, highlighting the need for cautious exploration. DTTT's upcoming AI Strategy and Leadership programme tackles these concerns head-on, equipping marketers with the essential principles and awareness of potential pitfalls, like the crucial question of data provenance in AI-generated content. Ultimately, navigating the complexities of AI requires both embracing its potential and approaching it with informed caution.
Two standout examples of leveraging AI technology in destination promotion are:
These examples show the importance of experimentation and playing with new ideas to create truly engaging content for travellers. This entails having open minds and retaining in-house creative control within DMOs, who should display confidence in developing novel ideas and working with partners that can bring them to life.
A recent study of nearly 300 destinations worldwide conducted by the DTTT and Sojern reveals a significant shift in marketing strategies. Destinations are no longer solely focused on top-of-funnel brand building, but 80% are actively engaging in full-funnel marketing through co-op campaigns. Despite the buzz around new media formats like gaming, audio and connected TV, DMO marketing budgets are still dominated by social, search and programmatic advertising. However, with 60-80% of spending going towards paid media, optimising content distribution through the right is crucial, with content creation needing to support the selected media mix.
The study also highlights the evolving skillset of DMOs. While traditional skills like email marketing and content management remain crucial, alongside the increased importance of data analysis. Design, user experience and loyalty management are skills that are underdeveloped in destination management, yet act as key differentiators. Investing in these areas, particularly in light of the shift towards first-party data ownership, will help destinations create a competitive edge beyond mere promotion.
When asked about challenges, DMOs overwhelmingly cited engagement and optimising return on investment as the most pressing issues, while budgetary constraints weren’t a major concern. Instead, the study identifies the challenge of effectively allocating existing budgets across numerous channels, formats and audience groups. Finding ways to streamline this workload effectively is key.
With Google making a bold stance in abandoning third-party cookies combined with tight data privacy rules in Europe and the US, the future of destination marketing demands building strong, loyal audiences through compelling content. Forget passive recipients of promotional messages; cultivate a community that actively seeks engagement with your voice and stories.
Investing in premium content is key to creating a gateway of loyal advocates. It attracts high-value visitors who spend more, return frequently and engage deeper – even during off-seasons. These are the travellers who crave local narratives and hidden gems and only through captivating content can you unlock those layers. By embracing creativity and partnering with content creators to leverage their reach, DMOs amplify their unique voices and can share local stories.
Nick and Mark discussed the fact that US DMOs recognise the strong affinity British travellers have for the US, but one of the opportunities which US destinations could build on more is travellers’ desire to go off the beaten track and discover the diversity of the US. It's really important to understand affinity and different behavioural aspects, which can help identify the right travellers and pinpoint them in a more targeted manner by segmenting based on interests instead of demographics.
As an example, Destination Canada's partnership with TED was a brilliant piece of tourism marketing. By focusing on fascinating, non-traditional topics like the country's extreme climate, indigenous communities and cultural tapestry, the DMO effectively captured the imagination of a wide audience and challenged common perceptions of Canada. This approach is not only refreshing, but also highly effective in reaching new demographics and sparking genuine interest in visiting the country. It's a reminder that tourism marketing can be both informative and inspiring and that sometimes the most unexpected stories can be the most captivating.
The assumption of cultural similarity between the US and the UK due to shared language overlooks a wealth of subtle differences. These distinct quirks and nuances, from linguistics to cultural norms, present a treasure trove of playful marketing opportunities. Instead of shying away from the disparities, embracing them can allow brands to build on the strengths of both nations, crafting unique and engaging experiences for consumers on both sides of the Atlantic. The ‘Sounds of the USA’ campaign, connecting musical genres with specific destinations, exemplifies how tapping into shared cultural passions and delving beyond surface-level similarities can forge powerful connections with audiences.
While the tourism sector is perceived to be lagging behind other industries in terms of its development, it is a very innovative industry with a wealth of knowledge that can be shared among a diverse range of complementary industry players. Bringing destinations together at an international level enables fruitful discussions and the exchange of opinions to help Destination Marketing Organisations (DMOs) benefit from a global perspective and get inspiration directly from other destinations. The DTTT's flagship events are more than just conferences; they're immersive experiences designed to spark creativity and ignite change:
The DTTT also actively produces podcasts to help share the latest trends and emerging technologies that facilitate innovation across the various segments of the tourism industry:
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