A strategic destination plan is considered one of the top 13 DMO best practice initiatives for successful performance. All business plans generally follow a similar flow with key elements, regardless of industry; however, tourism business plans often take into account unique elements like advocacy plans and product development plans. If you’ve been tasked with this project, these tips will help you outline necessary components of a basic tourism business plan.
Within a DMO business plan, the first introductory section generally reviews the overall concept of the destination marketing organization, business units and the markets the destination serves. In addition to an executive summary, this section of the business plan includes an overview of the DMO and their mission statement, vision statement and brand promise. It is appropriate to add destination and/or DMO accolades from industry partners and national media. A strategic plan diagram is helpful as well for city leadership, outlining the DMO’s core focus areas, major goals and priority initiatives by business unit. This chart may also include the core values and culture of the organization and wrap up with a list of strategic outcomes desired after a given time period.
The organization chart helps educate city leadership on the division units within the DMO (for Virginia Beach CVB that would be domestic leisure, meetings, conventions and sports marketing, international, convention center, resort management and special events, administration and product development). For DMOs that have participated in the Destination Marketing Association International DestinationNext workshop, providing the outcomes of that research would be important for stakeholders to understand. Finally, this section should also include an overview of the destination brand platform. Any research used to develop the brand- to include overnight visitor profiles, perception studies and personas- may be included in this section.
The second section of the business plan addresses financial features and requirements for financial stability and growth. For destination marketing organizations, an expenditures breakdown by business unit as well as a budget by fund (assuming the DMO has several sources of funding) would be important to add. Another section that might be of interest to a City Manager or Chairperson of the Board would be a DMO industry comparison of administrative expenses, program expenses and personnel costs. The Destination Marketing Association International Organizational & Financial Profile Study would allow the DMO to pull data from DMOs with similar budget sizes. The business position section includes relevant information about the DMO, its legal form of operation, when it was formed and any key personnel.
The marketing section of the business plan should communicate a detailed proposal showing an integrated marketing effort to meet desired goals. The DMO can address efforts taken in the previous year, efforts that will continue and any collaborations that will take place in the future. An overview of feeder markets and competitive set data can be included in this section. Utilizing Smith Travel Research data, the DMO can include hotel occupancy rate data, available hotel room data and average daily rate data.
Forecasting data can include international, national and local market economic indicators and major travel trends. The US Travel Association and US Department of Commerce make available data that might be use to the DMO with a heavy emphasis on international visitation, like inbound markets, forecasted arrivals by market and historic spending. Consider utilizing research data from the state tourism office as well for insights and projections that may impact the locality. Another great source of research and forecast data is the local airport, which at minimum will provide a history of annual arrival numbers. Assuming the DMO is collecting overnight visitor profile data, this can also be included. Any effort to include this breadth of research in a DMO business plan showcases the DMO as a subject matter expert on not only the affairs of the local community, but on the industry globally – which in turn increases the credibility of the DMO with stakeholders.
A SWOT analysis will generally communicate to stakeholders the DMO’s efforts to identify what destination strengths should be highlighted within marketing campaigns, what opportunities require monitoring, working within weaknesses of the destination and how the DMO is preparing for threats like competition, weather, political environments and more. SWOT analysis can be done for each business unit, as goals, product and audiences differ considerable. Actual marketing plans by business unit should outline major strategies and tactics tied to specific objectives.
Here is a sample of a tourism business plan outline. I’ll be sharing more tips about writing other tourism plans- like marketing plans and tourism master plans- in future posts. Good luck!
Table of Contents
Introduction
Executive Summary
Virginia Beach CVB Overview
Mission, Vision, Brand Promise
Accolades
Two-Year Strategic Plan Diagram
CVB Organization Chart
DestinationNext Futures Study & Findings
Destination Brand Overview
CVB Financial Position
Budget Overview
TAP, TIP and General Fund
DMO Industry Comparison
Budgets by Business Unit
CVB Business Position
History of the CVB
Key Personnel
Advisory Boards
Marketing Plans
CVB Marketing Goals
Forecasts & Research
Competitive Analysis
SWOT Analysis by Business Unit
Marketing Plans by Business Unit
Marketing Calendar
Tourism Advocacy
Resident Research Findings
Advocacy Communications Plan
Advocacy Budget
Development Plans
Organizational Development
Product Development
Market Development
Resources
Staff List
Industry Terms
References
Tiffany M. Russell, APR, CDME 