100 Years of Advancing Destinations

2013 DMO Group Sales Channel Impact Study


Here at DMAI, we have long believed in the significant role Official Destination Marketing Organizations (DMOs) play in the group meetings business.
 
We know that approximately 300 cities and destinations across the United States rely upon DMO sales and marketing efforts to attract events to their destination.

Prior to this landmark study, much of what was known about the true power of DMOs as a collective channel in the meetings market was anecdotal at best.

2013 DMO Group Sales Channel Impact StudyThe report, commissioned by Destination Marketing Association International, powered by a grant from the Destination & Travel Foundation and conducted by Tourism Economics, quantifies the impact of DMO efforts as a sales and marketing channel.
 
The analysis, based on a massive collection of data from more than 100 DMOs representing three-quarters of the total market, determined that DMOs influence 1 in 5 group rooms that occur in the U.S. annually.

  • In 2012, DMOs collectively influenced 39 million room nights for future events, growing by 4.9% from the previous year, representing 20.1% of all group room demand
  • 38.3 million group room nights actually occurred in 2012 as a result of DMO sales and marketing efforts

The report quantifies the impact of the DMO sales and marketing channel from 2009 through 2012 based on booked room nights for future events, occurred event room, and the number of events that occurred and were booked. The analysis is based on a massive collection of data from 116 DMOs representing over 40% of DMOs with sales professionals dedicated to promoting their destinations, and over 70% of the total rooms booked and occurred. An econometric model was developed to project this sample to the remaining markets.
 
Encouragingly, DMO group room bookings continue to exceed the levels of group room demand from prior DMO sales efforts in each year of the analysis. This indicates that the group room nights trajectory for future years, due to DMO sales and marketing efforts, will increase in the coming years.