5 ways DMOs use destination data to optimize strategy & performance

There is a rising myriad of ways DMOs use destination data to optimize strategy and performance. Destination data encompasses information such as visitor demographics, demand patterns, economic impacts and supply trends– all the while driving collaborative partnerships and sustainable success. 

Today we will explain five ways the DMOs of today enhance their analytical capabilities using Destination Insight in order to stay relevant in an increasingly competitive climate. Alongside, we include real-life success stories to elucidate how destination data is being utilized to magnify and reinforce a destination’s full potential.

Measure & map rental supply

In understanding the distribution and type of inventory that is bringing the visitors in, visibility over supply is key. Chiefly DMOs like you are eager to understand and communicate a clear picture of the provision and capacity of alternative accommodation in their markets. 

Supply mapping assists DMOs in identifying and preventing potential problems  with oversupply, lack of infrastructure and other issues before they actively impact the destination and its residents. As a result, ensuring social sustainability. Furthermore, trends in inventory types, professionalization and unlicensed operations can be easily identified.

Data solutions today have the potential to tell a DMO deduplicated property counts and capacities, visualise distribution, and track performance.

“Being able to tell the inventory story to partners around the state is very helpful. . . It has helped paint a more holistic picture of lodging in Utah.” 

Utah Office of Tourism

Monitor occupancy, ADR, & revenue

Demand is vulnerable to fluctuations stemming from influences like music events, sports tourism, competition, or seasonality – as well as trends subject to marketing. By all means the relationship between supply and demand is one of co-dependence, and market intelligence is typically used to gain real-time numbers allowing managers to act at the first possible opportunity. In gaining this visibility, DMOs are given a strategic map to guide decision-making.

“Short term rentals hold a slightly different part of the market to hotels so it’s useful for us to have that more complete picture. We have found correlations in wider seasonal travel patterns and the visitor profile/occupancy/ADR of short term rentals.” 

Insight Manager, London & Partners

Performance tracking brings many benefits, including tracking market health, projecting impacts, validating campaigns, optimizing demand and more.

“Occupancy, ADR and pacing are useful for the general health of the industry. Future look helps us plan for busier times…”

Insight Manager, London & Partners

Track & analyse traveller origin

In the aftermath of the COVID-19 pandemic, the industry has innovated accordingly. The need for a holistic commercial strategy over the outdated “silo mentality” is driving the interweaving of goals with other departments like sales, revenue, and product. 

Lately metrics like visitor origin are being used to define and thereafter measure DMO visitor metrics and campaign impact. The renewed excitement around origin data has correlated with the resurgence of international travel, and brought a plethora of insights DMOs can apply to other business departments. Think domesticity, seasonality and top visiting nationalities for your own and similar destinations.

“…Visitor profiling/visitor origins and experience has become more relevant to our business needs recently.”

Compare with other destinations

Speaking of similar destinations; DMOs today are contrasting their performance against markets  with similar characteristics, to determine and address strengths and weaknesses. From benchmarking against a neighbor or ‘demand competitor’, destinations can also set clear goals knowing where they stand in the context of the industry. 

If a DMO finds similar markets are profiting 20% more than themselves in Summer YoY, they may examine their shortcomings. It is the method of highlighting strategic differences from your competitors and identifying strategies for improvement – whether you are ahead or behind.

“The evolution of the number of properties, occupancy, average prices. But without a doubt, being able to see this data on the competition as a benchmarking tool is also very useful. . . Lighthouse sources allow for a practically complete visualisation of marketing, which for me is the key.”

Visit Benidorm

DMOs use destination data to analyze past & project future performance

To reiterate, DMOs depend on past and future performance data for a myriad of uses. Past performance is used to:

• Track prices to calculate economic impact

• Determine emerging destinations or sub-markets through metrics such as RevPAR

• Optimize future marketing campaign and events performance

• Understand and get comfortable with demand trends and pacing

While future performance is used to: 

• Facilitate the integration of data-based support in business decision-making for future strategies

• Plan managerial, marketing, sales, and other departments goals and objectives correspondingly

• Have a birds-eye-view over the projected spending and experiences of visitors 

• Gain forewarning for periods of high guest compression

“We use Lighthouse data in our monthly reports to partners, the forward looking trends and pacing allow us to see when there might be higher concentrations of tourists visiting London and it helps our partners plan around events.”

Insight Manager, London & Partners

Leverage data for your destination

All in all, destinations are using data as a foundational strategic roadmap. After all, the real-life use cases of Lighthouse customers, who are realizing the potential of data everyday, demonstrate the varied circumstances in which this insight can be applied and the ways DMOs use destination data. Start exploring Destination Insight today for stark clarity over your destination, goals, and business strategies.

“The Lighthouse team is incredibly responsive and eager to make the product work for users. We have appreciated the quick turn around and communication as we have worked with the team for the last couple of years.”