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The Problem with a Hot Market
The 8 January 2008 edition of the Zeitgeist
Z-News
Talk about being too close to the forest to notice the trees...
As I continue to spread my message that the DMO-industry needs to create an additional set of performance measures to a nyone who will listen, I had the chance to talk to the GM of a great Convention Center last month that opened these eyes a little.
To catch everybody up, I believe that most DMOs are being judged primarily against a hotel metric...Room Night production. And, while Room Nights are certainly a critically important bi-product of what we do, DMOs don’t actually “book” the rooms.
If we did, we should be measured that way. But DMO’s can only influence the sale. There are a myriad of factors that are out of our control, like availability, rate, quality...not to mention the talent (or lack thereof) of the hotels’ sales staff.
A few years ago I worked with a city that wanted to hold its DMO accountable for the city-wide occupancy rate (we ultimately changed their mind on that notion). But, just as industry professionals chortle at that thought, I wonder why they don’t see that being judged solely on Room Night “production” isn’t just as laughable.
Focusing solely on a Room Night metric hurts destinations because it takes our eye of the ball. Look at your Mission Statement. Most that I’ve seen don’t say “Book Room Nights.” Most say something like “increase visitation to the destination.”
What DMOs should be about is positioning the community as a preferred destination. To elicit intent to travel. To put buyer and seller together. To create a buzz about the community. And, yes...to encourage overnight stays.
But...I digress. The original point of this post was that, all this time, I’ve been focusing on the impact that a hot business travel market has had on DMOs. With business so good, many hotels are refusing to offer up room blocks with which DMOs bid on convention or sports business. Thus, with no product to aell, DMOs are increasingly unable to meet Room Night goals.
And then my new Convention Center friend said, “yea...tell me about it.”
Uh-huh...another casualty of a hot business travel market. And one that I was too blind to see. It’s not just DMOs that are taking heat for low production. Convention Centers must be feeling it too (as Sports Tournament facilities do, too?). The availability of hotel rooms is just as critical to their ability to meet their goals as it is for DMOs.
Hey Dave...thanks for opening these eyes.
Bill
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