In contrast to early predictions that 2025 would be a great year for spending on vacations and travel, recent economic uncertainty The following are some examples of how to get started: faltering consumer confidence The hospitality and tourism industries are now bracing themselves for a slowdown.
Destination Marketing Organizations will feel the pressure of these expectations. DMOs are often forced to compete for limited budgets with municipal services. They must now work harder to attract the discerning traveler.
The good news is that digital marketing strategies provide DMOs with dynamic and flexible opportunities to build buzz around peak travel season, while delivering measurable ROI. DMOs have to answer to a lot of stakeholders. It can be difficult for them to please everyone. Many of those who are the most vocal about marketing decisions—whether a board of directors, city department, advertising committee, or otherwise—aren’t always well-versed in modern digital marketing.
Here are some suggestions for DMOs to help them navigate the coming correction of the tourism market while keeping their budgets and reputations intact.
Do not try to reach out to every traveler.
DMOs are often hyper-segmented and hyper-targeted because they represent so many different businesses: families, business travelers and foodies, as well as luxury-seekers and nature-lovers. These demographics often overlap and DMOs waste a lot money on creating different marketing materials. Creative assets You can run separate campaigns to target each.
Do define your business goals.
Rather than focusing on whom you wish to target, you should first determine your business goals and the way you will assess performance in relation to these KPIs. Determine what you need to do to get more people in bed, increase bookings or attract visitors from a certain market. Before you begin segmenting your audience, take a moment to identify the overall business goal. This will help you gain a clearer understanding of what tactics and media placements are needed.
Do not focus on returning or known travelers.
You may be tempted to focus on the “sure thing”, by focusing too much attention on ads that target travelers who already have expressed an interest or markets where they are aware of a high number of known prospects. It’s easy to feel like you are winning because this increases campaign success rates and delivers high KPIs, since the travelers have already shown interest. These travelers are likely to have already made a decision and were on the verge booking. Does that place really offer the best value for money?
Don’t forget to keep the funnel stocked with new leads.
Even if the digital plan is being reduced, it should still have a strategy in place to identify new visitors. This top-of funnel nurturing can build the buzz and excitement needed to get a booking. CTV, video online and social media tactics are ideal for generating awareness and allowing people to discover your destination. If you are promoting a summer destination, it might be worth investing in YouTube Shorts or TikTok during March and April. Then, as May and Junie roll around, allocate more budget to paid search and display.
Partnerships and co-ops are important.
Cost-sharing offers a way to increase your digital budget while providing mutual benefit for all stakeholders. A DMO could, for example, equally share the cost of an $3,000/month advertising campaign with a third-party partner and a hotelier. The DMO can more than double its budget while the hotel gets ads at half price. Everyone wins when tourists book.
Do set aside a contingency fund.
In any market, new events or unexpected opportunities may arise throughout the year that you’ll want to support—maybe it’s a new music festival or a local restaurant wins national accolades. You can invest in these events by putting some money into a contingency account, and you won’t have to compromise on planned campaigns. The money is already in place, so you can launch the campaign the day or week before the event instead of having to negotiate which campaign will lend the money.
You can’t assume that all marketing decision-makers will understand digital marketing.
DMOs often have a hard time convincing their board or committee to invest in digital marketing, particularly top-of funnel tactics like TikTok or other paid social media ads. They don’t see the value and think it is trite or trendy. Most people don’t use these platforms in their daily lives. They may think that performance is equal to bookings and not realize how top-of funnel nurturing can drive conversions without direct attribution.
Use data to tell your story.
To demonstrate the goals and expectations of digital campaigns, DMOs must be able tell a story based on data. It’s now much cheaper to work with attribution companies in this space, and it is easier to get first-party arrivals information from large hospitality partners that cover a large portion of the U.S. travel population. This combined with historic data from trusted sources, such as Smith Travel Research, will help you to monitor trends, and then adjust your strategy if they start to change. When you explain the digital journey of the traveler in a manner that decision makers can understand, they can see how booking performance is influenced by the overall strategy.
Don’t go it alone
The data can be difficult for you to align to create a compelling story, and to inform a strategic plan. This is especially true when they come from multiple sources. A digital ad agency with extensive hospitality and travel experience can help you to aggregate these insights and tell an engaging story to your stakeholders. They can also help you invest wisely. Media services partners with extensive experience can provide a cohesive strategy that simplifies media purchasing compared to working with multiple partners. Partner can consolidate the performance data and tie it to the stated goals.
DMOs must be flexible and agile to adapt to the changing behavior of travelers in an uncertain market. Digital allows you to adjust quickly, test niche markets, and run A/B tests without sacrificing your overall strategy or budget.
Even in a tight economy, it’s important to look ahead. Don’t just worry about navigating the uncertainty. Instead, build a solid foundation for future expansion. Travel will come back, but the question is not whether it will be popular. Instead, you need to ensure that your brand is at the forefront of people’s minds when this happens.
Elizabeth Brooks
Vice President, Client Services at brkthru_
brkthru_
