The recession saw meetings industry budgets contract. Now that the recovery is underway, however, budgets are once again expanding, including those at destination marketing organizations (DMOs), according to a new study by the Destination & Travel Foundation.
Released last week at the Destination Marketing Association International (DMAI) 97th Annual Convention in New Orleans, the "Convention Sales Practices Study" surveyed DMO and convention center executives at more than 100 organizations and found that DMO convention marketing budgets have increased by 7 percent in the current fiscal year — more than twice the rate of the average convention center's budget growth — and are projected to increase by another 6 percent in 2012.
What are destinations spending their bigger budgets on? According to the study, 44 percent of the average DMO's total marketing expenditure is being spent on "people-based" marketing, such as trade shows and conferences. Half of DMO respondents said they're investing more in this type of marketing, and over 30 percent that they've increased spending on their internal sales force.
Other key findings:
• Websites and digital activities have increased by more than 5 percent; 62 percent of convention centers said they've increased the budget for their website and digital activities by more than 5 percent this fiscal year.
• A majority of respondents — 85 percent of DMOs and 67 percent of convention centers — provide event organizers with attendance marketing support or assistance.
• Thirty-seven percent of DMOs and 71 percent of convention centers maintain a separate fund as a strategic sales tool to cover discounts, concessions or incentives for events that fulfill seasonality requirements.
For more information about the "Convention Sales Practices Study," visit www.destinationmarketing.org.