Destination Development and
Institutionalization Strategies
In the OIC Member Countries
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Visitor Metrics:
Visitor spending is an especially important metric to measure. Revenue is a more important
indicator than number of visitors, as a lower number of visitors with higher spending is more
beneficial than a large number of visitors with lower spending. Therefore, before a destination
tries to bring in more visitors, it is easier to get more money from the visitors who are already
there. 459
For Go Great Lakes Bay their main KPIs include total room nights and Room Tax and Assessment
Revenue, which is generated from a 5% hotel tax that is charged on all lodging stays and is
funneled to the DMMO.
Marketing and Communication:
Marketing promotions conversion rates, cost per conversion and return on investment are
especially important metrics to measure.
Conversion rates measure actual sales that result from a certain promotion. Cost per conversion
is calculated by dividing the cost of the marketing campaign by the number of conversions
received.
Consumer-Based Brand Equity (CBBE)
The indicators for this metric measure factors related to the consumer’s awareness and
perception of the destination. It also takes into consideration repeat visits, which indicate product
satisfaction, and which also represent a lower visitor acquisition cost.
Organizational Effectiveness:
This indicator relates to the achievement of objectives, and starts by setting SMART objectives,
that are specific, measurable, achievable, relevant, and time-oriented. At the end of the time
period for which the goals have been set, as well as at regular milestones, the achievement of the
goals should be measured against the clear objectives.
Destinations International’s Performance Reporting Handbook for DMOs lists the following
productivity related metrics: (1) Personnel productivity metrics (number of leads and number of
bookings per sales manager), (2) Cost productivity through the use of the cost productivity ratios.
For example, cost per lead is measured by dividing the travel trade sales function direct and
indirect operating costs by the number of leads.460
Stakeholder Satisfaction
DMOs should measure stakeholder satisfaction which includes visitors, the local community and
the tourism industry. This can be done through surveys.
459 Interview with Doug Lansky, destinations consultant, travel writer, and keynote speaker
460 Destination Marketing Association International (2011). Standard DMO Performance Reporting: A Handbook for DMOs. 1-42.