Is your tourism strategy maximizing PROFIT?

Summary

In this video, Doug Lansky challenges traditional metrics of tourism success, arguing that visitor numbers alone are not sufficient indicators of a destination's health. He suggests that focusing on revenue, profit retention within the local economy, visitor satisfaction, and sustainability offers a more nuanced view of success. By reconsidering key performance indicators (KPIs), mayors and stakeholders can better align their goals with the long-term benefits for their communities, rather than simply chasing visitor volume. Ultimately, Lansky advocates for a tourism model that prioritizes both economic viability and local well-being.

Takeaways

• 😀 Visitor numbers shouldn't be the sole metric of tourism success.
• 😀 It's important to evaluate the overall annual performance rather than month-to-month comparisons.
• 😀 Revenue growth is often more crucial than merely increasing visitor numbers.
• 😀 Profit is a key goal, but where that profit goes matters—keeping it local is preferable.
• 😀 Sustainability in tourism may require accepting lower profit margins.
• 😀 Visitor satisfaction is essential and can also reduce marketing costs.
• 😀 Balancing tourism with local happiness can lead to better long-term outcomes.
• 😀 Rethinking key performance indicators (KPIs) can help align tourism strategies with community needs.
• 😀 Successful tourism models should consider both economic and social impacts.
• 😀 Engaging stakeholders in meaningful ways is critical for a thriving tourism economy.

Q & A

What is the main argument presented by Doug Lansky in the transcript?

Doug Lansky argues that the traditional metrics for measuring tourism success, particularly visitor numbers, are outdated and not necessarily indicative of a destination's health. He suggests focusing on revenue, profit, and visitor satisfaction instead.

Why does Lansky suggest that visitor numbers might not be the best metric for success?

Lansky points out that an increase in visitor numbers does not always correlate with increased revenue or local benefits, and emphasizes the importance of looking at broader metrics such as overall revenue and profit margins.

What key performance indicators (KPIs) does Lansky suggest destinations should reconsider?

Lansky encourages destinations to consider KPIs that reflect revenue, profit, sustainability, visitor satisfaction, and local community happiness, rather than solely focusing on the number of visitors.

How does Lansky illustrate the relationship between visitor numbers and revenue?

He presents a hypothetical scenario where a mayor must choose between a 10% increase in visitors with no revenue growth, or a 10% increase in revenue with stable visitor numbers, illustrating the preference for revenue generation.

What does Lansky say about sustainability in relation to tourism profitability?

Lansky asks whether a destination would be willing to accept lower profits in exchange for being the most sustainable destination, suggesting that long-term sustainability may outweigh short-term profit gains.

What is the significance of visitor satisfaction according to the transcript?

Visitor satisfaction is highlighted as a crucial aspect of tourism success, with Lansky proposing that destinations should prioritize it, even if it means sacrificing some profits.

How does Lansky propose that local community happiness should factor into tourism metrics?

He questions whether destinations would be willing to earn less profit if it meant local residents were happy with tourism levels and did not feel overcrowded, suggesting that local sentiment should influence tourism strategies.

What does Lansky mean by saying tourism needs a better business model?

Lansky argues that the tourism industry should shift its focus from merely increasing visitor numbers to developing a business model that prioritizes revenue, sustainability, and community satisfaction.

What impact has COVID-19 had on tourism metrics, according to Lansky?

Lansky notes that many destinations are comparing current visitor numbers to pre-COVID levels, but this may not accurately reflect the current tourism landscape, urging a reevaluation of how success is measured.

What call to action does Lansky include at the end of the transcript?

Lansky encourages viewers to subscribe to his channel for further insights on travel news and tourism trends, indicating that ongoing education in this area is essential.