6 years ago
 

That fee-for-marketing in travel definition in full

NB: This is a guest article by Mark Mattson, a former university professor who writes agile software solutions for the travel industry through TravelTools.

Interesting comments and feedback following the article last week about fee-for-marketing services in the travel, tourism and hospitality industry.

As a quick follow-up, I thought it would be useful to set out a point-by-point definition of the fee-for-marketing concept and various approaches to it.

  • From the perspective of DMO funding/finance, fee-for-marketing falls into the realm of private sources.
  • Private funding sources have traditionally included co-op advertising, visitor center revenues, and print and digital advertising. As technology and technology access grows the list of companies and entities competing for these funds also grows and diversifies at all destinations.
  • From the perspective of the destination marketer’s core business model, fee-for-marketing is an alternative “to” or partial substitute “for” membership-based services and dues.
  • From the perspective of economics and market volatility, fee-for-marketing is a hedge against declines in other funding sources such as public funding from hotel occupancy tax revenues, state/province (non-tax) funding and state/province (non-tax) funding.
  • From the perspective of cash flow, fee-for-marketing services represents any number of programs or efforts that generate fees by monetizing DMO marketing assets.
  • From the perspective of inclusion, fee-for-marketing solutions embrace smaller businesses and thereby increase DMO relevance and support at its base.
  • From the perspective of DMO value proposition, fee-for-marketing answers questions from members that ask: “What have you done for me lately?”
  • From the perspective of outreach and education, fee-for-marketing provides know-how and solutions to small businesses that may or may not have understandings of potential destination marketing outcomes and exposures.
  • From the perspective of capacity building, fee-for-marketing means web, mobile, and social media workshops. It also means general guidance as to how to utilize destination marketer know-how and technologies to sell or move related products and inventory.
  • From a programmatic perspective, fee-for-marketing is any or all manifestations or initiatives that translate marketing into for-fee advertising or sales. In the most general sense, these programs monetize DMO assets through applications that include, but are not limited to, print advertising, co-op advertising, web marketing and sales. They also include mobile marketing and sales, digital signage, QR-code initiatives, and electronic kiosks.
  • From the perspective of flexibility, fee-for-marketing means offering local businesses a chance to pick and choose their affect on a pay-to-play basis. This could easily translate into programs where a flower shop could seek exposure during a Spring Flower Show.
  • From the perspective of DMO sustainability, fee-for-marketing is a tangible demonstration of concern for what local businesses see as valuable to their operations. Of course, this demonstration is monetized through initiatives that translate marketing into for-fee advertising or sales. Nevertheless, fee-for-marketing is thought to be a more direct response to local markets that takes into account the nuanced strategies of each local business.

From the perspective of technology, fee-for-marketing means any and all techniques utilized to affect the above.

NB: This is a guest article by Mark Mattson, a former university professor who writes agile software solutions for the travel industry through TravelTools.

NB2: Signpost image via Shutterstock.

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Viewpoints

About the Writer :: Viewpoints

A founding principle of tnooz was a diversity of viewpoints from across the spectrum. Viewpoints are articles by guest contributors from around the travel and hospitality industries. The views expressed are the views and opinions of the author and do not reflect or represent the views of his employer, tnooz, its writers, or partners.

 

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