The PMT's initial performance reporting recommendations were presented to the association Board of Directors and adopted on 13 July 2004. These recommendations included standard definitions, as well as activity and productivity measurements in travel trade sales, and marketing and communications. Additional performance measures and productivity metrics for convention sales and standard CVB Return on Investment (ROI) formulas were also adopted.
In February 2005, the PMT has fine tuned the ROI formulas with input from CVB chief financial officers and chief operating officers. Enhancements include realigning the ROI formula so that event spending is associated with the CVB budget for the year when the event was booked, rather than the year when the event takes place in the host destination.
Destination Marketing Association International has compiled a, providing a comprehensive guide that CVBs can utilize to evaluate, calculate and report their performance. This handbook was revised in February 2005 to incorporate ROI formula enhancements.
Development of standards
These recommendations have been a collaborative effort. During 2003 and the first quarter of 2004, surveys on existing industry practices were sent to association members. The results were presented to over 20 industry leaders from the U.S. and Canada, who met in Washington, D.C. in April 2004 and began the development of this newest set of performance reporting.
Participants at that PMT Summit included 10 CVBs, representing a wide range of markets, and several consultants from firms including D.K. Shifflet, Longwoods International, Nadler & Associates, Performance Management, Inc., Smith Travel Research, and Strategic Advisory Group. The group’s recommendations were open to the public for comment in early June 2004 on our web site.
Industry support gained
Destination Marketing Association International continues to make an ongoing effort to update and include respected CVB industry consultants on performance reporting initiatives. The expertise and support that these respected professionals offer is invaluable, and the association encourages these consultants to recommend and use the established industry performance measures under the association banner.
Previously approved performance reporting
In October 2003, the Board of Directors approved recommendations on standard convention sales definitions (see handbook). In addition, we have adopted other PMT recommended standards including the CVB Uniform System of Accounts (Completed November 2002 and revised February 2005) and Convention Market Definitions (Completed October 2002).
Time to put these measures to use!
With the adoption of these industry standards, a CVB will have recognized benchmarks to utilize for assessing internal performance, as well as a means to accurately compare performance to other CVBs. It is the association's intent that this handbook on performance reporting will aid the decision-making process for resource allocation, sales and marketing campaign development, as well as staff training and development.
Please take some time to become familiar with these new industry guidelines and begin implementing them into your CVB operations.
*The Performance Measurement Team (PMT) was formed in 2001 at the directive of the Board of Directors and Foundation Board of Trustees. Accordingly, the PMT was formed with a cross section of senior level CVB executives and industry consultants. The mission of the PMT is "to standardize bureau reporting practices by establishing definitions, guidelines, and metrics in order to provide meaningful comparative data."
CVB Uniform System of Accounts - Completed November 2002 and revised February 2005 