DMOs (Destination Management Organisation), DMCs (Destination Management Company) and CVBs (Convention & Visitor Bureau) are organisations that market specific destinations. They provide accommodation services, in their specific destinations, to travellers and guests around the world. DMOs, DMCs and CVBs represent their destination and the businesses that rely on they steady income stream from tourism and visitors. Destinations need to compete with other destinations across the globe for leisure und business travellers.
Key advantages of DMOs, DMCs and CVBs
The challenge of DMOs, DMCs and CVBs
DMOs, DMCs and CVBs have direct access and close relations to the accommodation suppliers, but lack the technology to aggregate those and market their inventory. Consumers prefer to book directly with the accommodations or with local suppliers. DMOs, DMCs and CVBs are local suppliers and have the local knowledge and expertise that consumers expect their preferred distributor to have. This does not just include tourist information on site, but also dedicated information online.
Missed opportunities in marketing
DMOs, DMCs and CVBs, especially when government owned or backed, often miss out on opportunities when it comes ot marketing and customer acquisition. This is in some cases due to a lack of resources and technical infrastructure, but often also the challenge to adapt the proper operational model. Along comes the famous belief that larger, privately owned companies would have deeper pockets and hence there would be an inability to compete. However larger private companies in the travel sector often focus on a very broad set of destinations. Compared on a destination level, the marketing budgets of DMOs, DMCs and CVBs are often highly competitive.
Purchasing power and sourcing advantages
DMOs, DMCs and CVBs were established to increase the number of visitors to a destination to also increase the revenues of local businesses which in turn generates higher tax income for the destination. This tasks gives them a high purchasing power and sourcing advantages with local hoteliers or vacation rental providers. Due to the local relationships with the accommodation providers, DMOs, DMCs and CVBs also have a high trust among the local business community. They can leverage this trust to work on building tailor-made offerings for their visitors.