Destination Development and

Institutionalization Strategies

In the OIC Member Countries

Furthermore, tour operators also play an important role in determining destination pricing especially in

the case of destinations that are dependent on mass tour operators. Economic conditions and competition

also influence destination pricing. The combination of these factors makes pricing a challenging area for

DMOs. While DMOs cannot completely control the pricing of the various tourism service providers, they

can provide guidelines for minimum and maximum pricing, through regulation or coordination with

tourism providers, to ensure competitiveness and protect both tourists and service providers. Destination

managers can also provide training to stakeholders on pricing strategies and the importance of price

structure standardization.

Providing distribution support to tourism industry players has been a key marketing activity for DMO as

distribution significantly impacts pricing since it constitutes 30% of the price of tourism products and

services. The choice of distribution channel can also impact the destination image. In some markets, large

travel agencies and tour operators dominate distribution. In such instances, DMOs can support their

distribution activities by providing them with the necessary information and promotional materials to

help themdo their jobmore effectively. As the internet has become increasingly important for distribution,

with the rise of electronic intermediaries and the availability of information for consumers enabling them

to create their individual itineraries, DMOs have taken advantage of electronic platforms and developed

their own websites for both distribution and promotion purposes. Electronic platforms have also allowed

destination managers to be less dependent on traditional distribution channels as well as to develop

specialized products for niche markets.

Operational Activities

DMOs’ operational activities, including management of visitor experience, stakeholders’ coordination, and

industry support, have proven to be quite instrumental in ensuring destination competitiveness. Positive

visitor experience is critical to ensure sustained competitiveness of the destination. DMOs are typically

involved in servicing tourists through visitor information centers.

To ensure tourists have a positive

tourism experience, destinations managers, as mentioned in the earlier chapter, need to both shape the

“physical” and “emotional tourist milieu” by taking a “holistic” approach to the development of tourist

attractions areas by expanding the tourism chain of services beyond the attraction areas. Destination

managers can construct a “storyline” for the destination using its natural and cultural resources to provide

“immersive” experiences for tourists through the use of technology to create “interactive narratives” for

attraction sites where tourists can be “active participants”, and encouraging interaction between local

communities and tourists to build emotional connections and enrich the tourist experience.

Furthermore, monitoring of tourist satisfaction through regular research activities, which is discussed

later under strategic activities, is essential to ensure DMO strategies meeting their objectives in this area.

The task of stakeholders’ engagement and coordination is instrumental in ensuring destination

competitiveness. DMOs need to cultivate relationships with stakeholders, understand their needs and

coordinate with them to increase the efficiency of usage of resources.

The fact that the diverse actors

with different viewpoints regarding destination development and possibly conflicting interests are

involved in the destination product, highlights the importance of the coordination role of DMOs.

Buhalis, D. (2000). Marketing the competitive destination of the future.

Tourism Management

, 21(1), 97-116. doi:10.1016/s0261-

5177(99)00095-3

Ibid.

Presenza, A. (2005). The Performance of a Tourism Destination. Who Manages the Destination? Who Plays the Audit Role?

XIV

International Leisure and Tourism Symposium ESADE.

Lekić, R., Trezner, Ž., and Mance, N. (2014).

DMC as a creator of memorable experiences in tourist destination

Presenza, A. (2005). The Performance of a Tourism Destination. Who Manages the Destination? Who Plays the Audit Role?

XIV

International Leisure and Tourism Symposium ESADE.