Today’s Discussion

Why Rethink? How was Rethink done? What did Rethink discover? How does Rethink suggest we succeed? What are Tourism Vancouver’s key actions?

2

WHY RETHINK?

change is the process by which the future invades our

lives-> Alvin Toffler

Here

DMO

Stakeholders

Here

Operators

Ok

Discuss the best opportunities to pursue.

Get issues and concerns out in the open.

The destination challenge: standing out from the crowd

desired outcome #1

Alignment on strategic direction.

desired outcome #2

Destination marketing to be even stronger.

desired outcome #3

Improved destination performance.

HOW WAS RETHINK DONE?

The Rethink Brief

Have a destination view

Engage with industry

Collaborate on strategies

Explore new ideas

Stages of Rethink

1st Destination 2nd Industry 3rd

TVan

Stakeholders

Destination Strategic Planning Session

Market Scan

LeadersGroup

Stakeholders

Destination Strategy Testing

LeadersGroup

PlanRefinement

Phase 1: Destination Strategy

High Level Strategic Views

Destination goals

Performance measures

Market approaches

Local brand perceptions

Destination vision

Priority markets

Market trends

Business opportunities

Business drivers

Adaptation strategies

Stakeholders

Corporate StrategicPlanning Session

Market Scan

LeadersGroup

Stakeholders

Organization Strategy Testing

LeadersGroup

Final 2020Rethink Plan

Phase 2: Organization Strategy

High Level Strategic Views of Tourism Vancouver’s

Structure

Operations

Marketing

DMO Business Model Assessment

Tourism Vancouver

DMO Best Practices• Organization• Structure/Resources• Marketing• Communications• Services• Performance• Management

Corporate best practices in performance measurement and

management

WHAT DID RETHINK DISCOVER?

An industry consensus on what it wants to accomplish together.

Must-visit, 365 days a year.

Vancouver.

Vancouver’s tourism industry will work together to offer

compelling reasons for travellers to visit, and will deliver

unsurpassed experiences that motivate them to return and

to become enthusiastic promoters of Vancouver.

Values

Build on Vancouver’s

energy

Deliver sustainable

benefits

Reinforce local values

Vancouver will be ranked as one of the top 10 “must visit” destinations in the world

Vancouver will achieve high levels of growth in every season of the year

Vancouver’s visitors will have such great experiences that they will become destination ambassadors

Vancouver’s tourism industry will sustain over $10 Billion per year in visitor spend

Destination Goals for 2020

Enabling policies Reinvention

Organic marketing Competitiveness

Leveraging Collaboration

Destination Strategies

HOW CAN WE CREATE THE CONDITIONS FOR SUCCESS?

A Tourism Alliance Would Help Energize Vancouver’s Tourism Network

Tourism Alliance

Primary Purpose:

a. Collaborate on marketing

b. Facilitate regional tourism planning processes

c. Form consensus on policy initiatives

d. Support product development

Vertical and Horizontal Integration

Tourism Master Plan

Events / Activity / Precincts

One message – Many voices

Tourism as Part of a Larger Community Vision

Halifax as “Canada’s Atlantic Gateway”

City of “Creativity and Culture”

“Experience Economy”

“Best Big City on Earth”

Asian Leader

Community Vision

The tourism industry will be stronger if it’s not “going it alone” and is part of something bigger.

Vancouver’s Branding

Branding

Vancouver has a sophisticated brand strategy, but, the industry is not aware of it, doesn’t understand it, and is

not supporting it.

“Every shoulder to the brand wheel”

Four Key Pillars of Destination Management

Destination Management

Marketing – focus on tourism customers

Planning – focus on stakeholder interests

Policy – focus on influencing policy makers

Product – focus on attracting investors

Case Study: Comprehensive Destination Management

An Industry Development Group – focusing on Arts & Entertainment, Attractions, Dining & Retail, Cruise, Sports and Hospitality.

A Sector Planning and Development Group – focusing on Research, Planning, Visitor Information and Capability & Innovation.

A Destination Experience Group - focusing on Land & Asset Management, Precinct Development and Tourism Concept Development.

As a city based tourism organization STB has the unique advantage of NTO sized resources and arguably one of the most supportive and committed governments in the world.

Destination Management

STB is essentially a National Tourism Organization (NTO.) In addition to brand management and convention and leisure market development, STB also has: Marketing

Policy

Product

Planning

Vancouver’s Vision Necessitates Comprehensive Destination Management

Destination Management

Currently, destination management is ad hoc• DMOs fulfill some roles, but, not comprehensively.

• Cities fulfill others, but, with limited consultation with the industry.

Should CVBs become

DMMOs?

Defining the Future of DMO Governance Structures will Likely Involve Significant Strategic Reinvention

Governance

Tourism industry “ownership” of Tourism Vancouver makes it an exclusive club

Tourism Vancouver would benefit from a broader constituent base and a broader source of knowledge and innovation.

Tourism Vancouver needs a broader leadership framework

Disenfranchisement

Thought Leadership

Limited seats at the table

DMO Governance - Tactical or Strategic?

Tourism Industry or Community Organization?

Deeper Tourism Sector Involvement

Is the Destination Fully Engaging its Brain Trust?Governance

VisionExciting Entertainment

Attractive Architecture, Design

Welcoming Hospitality Training

ValuesBuilding Energy Urban Dynamics / Human Resources / Labor / Corporate

Supporting Local Values Urban Planners. Government and Community Leaders

Sustainable Economic Benefits Economists

Sustainable Cultural Benefits Cultural Tourism and Arts Advocates

Sustainable Environmental Benefits Environmentalists

Appreciative and Supportive Community Community Advocates

Must Visit Imagineering

Year Round Events Development

Traditional Bureau RolesSales

Branding

Customers

Industry Leaders

Members

Destination ManagementPolicy Political, corporate, unions, community

Performance Business

Partnerships Other DMOs, sector leaders

Planning / Research Universities

Product Developers, Investors, Arts & Cultural

360 Degree Accountability Should Extend Throughout Vancouver’s Tourism Industry

Accountability

Industry accountability should include issues like:

a. Brand support

b.Participation in quality and research initiatives

c. Industry unity and collaboration

d.Government and Community support

e. Achievement of goals identified in plans for which the DMO

cannot exercise control.

Efficient Sales Person Design

21Mouth Ears

Communications

Communications

TVan is using sophisticated CRM capabilities for “market customers” but not for “internal

customers.”

Members

Tourism Vancouver

Key Conflicts Surrounding Traditional Membership Models

Generation Change and Technology May Render Traditional Member Models Obsolete.• Controlled “official” content is not the future

Member Imperatives May Conflict with the Prime Directive of Customer Service• Member only referrals will ultimately lead to a loss of credibility, which

leads to loss of audience, which makes membership less valuable Strategic positioning could be encumbered by member

imperatives The DMO Value Proposition May Need To Change

• Old paradigm – building “market” and driving business to members• New paradigm – only building “market,” members responsible for

their own outcomes

Membership Program

Case Studies: Flat and Organic Operational Environments

“Don’t be evil” - Google employees are mostly accountable to themselves.

The 70 – 20 – 10 rule: 70% current assignments, 20% related projects, 10% whatever

Dynamics: Small teams that organize quickly and move on. Few managers, who don’t over manage.

Goal Setting: Employees set their own goals and measurements quarterly.

Cross-Functional: No formal channels.

Internal Structure

Flat – Need to react quickly to changes in market dynamics.

Verticals are Agile – Production teams led by product managers can make decisions.

Few Levels of Management – Employees are equal and report to department heads who report to CEO.

“Organic, flexible and low pressure.”

Faster and More Economical - No middle-management, communication flows more freely and quicker decisions.

Autonomy – Complete job tasks without seeking approval from a supervisor.

Tourism Vancouver Could Consider an Even Flatter Approach To its Organizational Structure

Internal Structure

Cross functional project teams - enhancing communications and interaction.

More agile - better equipped to respond quickly to changes in market dynamics.

Focus on innovation - reassigning middle management roles could increase empowerment and achieve a more organic market approach.

Greater outputs - Increased autonomy with individual productivity expectations.

Addressing new market realities - restructuring human resource deployment

Substance, not form - Tourism Vancouver could use this opportunity to redesign around destination goals, rather than traditional functions.

We Identified a Need for a Major Increase in Tourism Vancouver’s Funding

Resource Needs

Competitiveness in conventions & tourism Events development Activation of underserved markets

• Cruise / incentive / corporate / exhibitions• GLBT / cultural / health & lifestyle / culinary

Market rationalization – e.g. visitor services

Question: If a DMO needs $20 million in new funding, which approach is more likely to succeed:

A. Ask government and industry for $20 million

B. Spin off networks that are asking government and industry for smaller amounts that may add up to $20 million

Case Study: The Network Model

ProfileProfile

Funding SourcesFunding Sources

EU Government 3% National Government: 7% Provincial Government: 24% Local Government: 7 % Private Participation: 10% Networks: 49%

EU Government 3% National Government: 7% Provincial Government: 24% Local Government: 7 % Private Participation: 10% Networks: 49%

WoCo as a “Business Foundation”

WoCo operates 15 networks which are task/project related entities. Private associations, each having their own board. About half of the funding is coming from the private sector. WoCo serves as the management company for each network.

Examples of Networks: Conventions (the bureau) Cruise Brand Fashion Culture

Budget: USD $43 M* Total Staff: 100

Leisure Marketing – 22 Convention Sales – 20

Population: 1,180,000

Food Leisure Ambassadors CPN Connected (route development) Bicycling Promotion (green transport)

Why the Network Model May be the Future

Tourism Alliance – It’s a network component

Community Vision – Broader community involvement

Marketing – More vertical and horizontal integration

Branding – Networked brand extension

Destination Management – Even a DMMO can’t do it alone

Governance – More seats at “the table” mean broader engagement

Accountability – Networked accountability in manageable terms

Resource Needs – Not just the DMO asking for support

Communications – Networked and organic

Membership Models – More resources through more buy-inMore Organic More Sustainable

WHAT ARE TOURISM VANCOUVER’S KEY

ACTIONS IN RESPONSE?

1. WORLD CITY VISION

future roadmap 2. TOURISM MASTER PLAN

co-creation

3. METRO VANCOUVER TOURISM ALLIANCE

strategic fit

Lead Roles in Relation to Structure

Tourism Vancouver

Tourism Alliance

Possible TVan Networks

Management Services

Strategy

Marketing Collaboration

Policy Consensus

Resource Development

Sales & Marketing

Planning

Product Development

Advocacy Groups

Lobbying

Policy Development

Research

Customer Service

Programs

4.BROADER MANDATE

DMO

4.BROADER MANDATE

DMMO

53

Destination Marketing Partners

Sales Members

Branding Stakeholders

Servicing Community

Destination Management Partners

Policy Political, corporate, unions, community

Performance Business

Partnerships Other DMOs, sector leaders

Planning / Research Universities

Product Developers, investors, arts & cultural

5. NETWORKS/MODULES

dmo

Networks/Modules

Advisory Councils

ConventionsVancouver

DestinationVancouver

Explore Vancouver

Sports/Events

OpportunityMarketingStakeholders

/MembersModule/Network

6. COALITION

HotelAssociation

TVan

Coalition

Coalition Responsibility

Approve plans

Approve budgets

Monitor results

7.YEAR-ROUND ACTIVITY

We will build business together…

… through organizing ourselves…

… by jointly developing a roadmap of where we want to go…

… and measuring the success of what we do.

Rethink Vancouver