Data-Driven Strategies for Destination Management

The role of DMOs has evolved beyond traditional marketing and communication. Today, they must adopt a more strategic approach to understanding changing trends and rapidly identify emerging challenges. This shift towards data-driven decision-making requires a deep understanding of destination strengths, weaknesses, opportunities and potential threats to make informed choices that align with long-term goals. In this episode of Leading Tourism's Transition, Omar van Beek from Toerisme Veluwe Arnhem Nijmegen , explores leveraging strategic innovation and capitalising on granular insights to predict and influence visitor movements and how this improves visitor experiences and locals' quality of life.

Cultivating a Data-Driven Culture

The effective use of data for destination management requires more than just collecting and analysing information. It necessitates a cultural shift, facilitated by a strong commitment from senior management. The implementation of data-driven management can only be implemented through the efficient allocation of resources and investment in prioritising data initiatives.

In the case of Tourisme Veluwe Arnhem Nijmegen, the top-down approach has facilitated the integration of data into various departments, enabling a more holistic and data-driven approach to decision-making. The shift from an experimental phase of data optimisation to a more strategic focus on applying data insights has empowered the DMO to break down silos between teams and initiate a more collaborative management approach.

From Manual Input to Data-Driven Insights

During the COVID-19 pandemic, when lockdowns confined people to their homes, many sought solace in nature. As a result, natural parks and forests experienced a surge in visitors. While this influx was a testament to the enduring appeal of the outdoors, it also presented a challenge in managing and protecting these precious spaces. With limited data on visitor numbers and behaviour, people were forced to rely on intuition. To address this, Tourisme Veluwe Arnhem Nijmegen developed Drukteradar , a groundbreaking tool that provides real-time insights into crowd density in natural areas.

Successful innovation is an iterative process that requires continuous improvement, building upon a minimum viable product and constantly refining it. The first iteration of Drukteradar relied on manual input, with park rangers providing subjective assessments of crowd density via phone calls. This information was then categorised using a threshold system and displayed on a map using a colour-coded scheme to guide visitors towards less congested areas. However, defining optimal thresholds for visitor numbers remains a complex challenge and is partially open to subjectivity.

Recognising the time-consuming data collection process and the growing frustrations of park rangers in implementing this manual approach, Tourisme Veluwe Arnhem Nijmegen sought a more automated solution. Partnering with a data provider that obtains anonymised GPS data from phone apps enabled the creation of geofences around specific locations, allowing for the accurate real-time tracking of visitor numbers.

Focusing on user experience and designing an intuitive interface enabled quick and easy identification of crowding hotspots; overcoming the barriers posed by some data dashboards which prioritise technical sophistication over interpretability. Through this clear focus on visitors as the end user, Drukteradar has become a valuable asset for travellers seeking to explore the region with ease. This data-driven approach empowers visitors to make informed decisions and ultimately optimises the visitor experience by enabling travellers to tailor their trip based on their tolerance to crowding levels.

Sharing and Repurposing Data for Diverse Needs

The realisation that the data analysed by Tourisme Veluwe Arnhem Nijmegen held more potential than initially anticipated resulted in the development of the Visitor Data Monitor , a business-to-business tool that provides enhanced insights into visitor movements. This broader application stemmed from a recognition that the data held value for other organisations, predominantly local municipalities and provincial organisations, as well as some companies and nature preservation organisations. These stakeholders, grappling with their own set of challenges, found potential solutions within the existing data set. Consequently, the data collection was expanded to encompass over 300 locations, including natural areas, tourist attractions and city centres.

Recognising the need for ongoing system maintenance, Tourisme Veluwe Arnhem Nijmegen has adopted a licensing model for the Visitor Data Monitor, providing wider industry access to the visualised data and insights in exchange for a small fee that is used for spurring further development of the platform. These planned enhancements to the Visitor Data Monitor are defined in Tourisme Veluwe Arnhem Nijmegen's data strategy, with this vision prioritising monitoring of the following key areas:

• Visitor Insights: Analysing visitor behaviour, preferences and demographics to understand their needs and expectations, extending the current tool to also include overnight stays.
• Local Resident Sentiment: Gauging the attitudes and perceptions of local residents towards tourism, identifying potential areas of conflict and opportunities for collaboration.
• Accommodation Inventory: Creating a comprehensive database of accommodation options, including hotels, campsites and other lodging types, to eliminate fragmentation within this sector.
• Event Impact Analysis: Assessing the impact of events on visitor numbers, economic activity and local communities.
• Natural Resource Monitoring: Tracking the impact of tourism on natural resources, including biodiversity and travellers' carbon footprints.

The Role of Marketing in Influencing Visitor Flows

Data can strategically influence which locations should be promoted and the timings for launching campaigns. By identifying periods of peak demand and adjusting marketing strategies accordingly through temporarily de-emphasising highly popular locations and attractions, DMOs can redirect visitors to alternative areas. Such proactive actions demonstrate a commitment to balanced tourism growth and ensuring the benefits are spread equitably across destinations and do not place undue pressure on specific places.

This ability to identify patterns and overarching trends related to seasonality has prompted Tourisme Veluwe Arnhem Nijmegen to shift from solely attracting visitors to also focusing on catering for the needs of residents. This realisation stemmed from the discovery that local inhabitants constituted over 70% of visitors to many locations, prompting a reevaluation of marketing efforts.

The GPS data analysed by Tourisme Veluwe Arnhem Nijmegen is combined with insights derived from the Lifestyle Finder segmentation tool , a national demographic tourism model in the Netherlands, that identifies seven distinct personas. By integrating this model into their data analysis, Tourisme Veluwe Arnhem Nijmegen can connect visitor movements with specific demographics based on postal codes. This enables the creation of heat maps that visually represent the concentration of different personas. This granular understanding of audience demographics allows for hyper-focused marketing campaigns tailored to specific personas and their geographic distribution.

However, while marketing plays a role in influencing visitor behaviour, it is not a standalone solution. Numerous limitations of this approach also need to be recognised to stimulate the exploration of additional visitor flow management approaches, such as working collaboratively with stakeholders to implement comprehensive management strategies. This involves not only analysing data and identifying trends but also persuading stakeholders to adopt evidence-based approaches and implement necessary changes. Overcoming resistance to change and developing persuasive communication skills is therefore complementary to data-driven marketing and should be a key focus for aligning stakeholder interests and effecting broader behavioural change among visitors, local businesses and policymakers.

Navigating the Risks of Data Dependency

While data offers immense potential for improving destination management, overreliance on external data sources and licensing agreements can cause data consistency concerns - stemming from an inability to control data collection methodologies - and long-term affordability worries. Tourisme Veluwe Arnhem Nijmegen acknowledges this risk, particularly concerning their dependence on GPS data. While they have a strong relationship with their current data partner, alternative solutions are actively being explored to mitigate potential disruptions.

Crucially, a key strategy for ensuring data longevity involves building a data infrastructure that leverages publicly available datasets, such as those from national statistics agencies. By advocating for the consistent provision of essential datasets and integrating these sources into decision-making processes, destinations can establish a reliable foundation for their data-driven initiatives.

Nevertheless, a critical approach to data interpretation is essential, recognising that data is rarely 100% accurate and may contain a few exceptions or anomalies. Delving deeper into data often uncovers unexpected insights that challenge initial assumptions, requiring patience and persistence to identify the hidden challenges faced by destinations. Combining data-driven insights with common sense, contextual understanding and ongoing critical evaluation can lead to more nuanced and effective decision-making.

Key Takeaways

DMOs are increasingly using data-driven approaches to understand and influence visitor behaviour. By leveraging data analytics, they can make informed decisions about optimising resource allocation, enhancing visitor experiences and facilitating engagement from local communities to support balanced tourism growth. Tools including Drukteradar and the Visitor Data Monitor provide valuable insights on crowd density and demographics, helping to identify trends that can be used for optimising targeting and tailoring communication.

Here are the key takeaways:

• A strong commitment from senior leadership is crucial for fostering a data-driven culture and the allocation of sufficient budget and resources for acquiring necessary licenses and building data infrastructure.
• DMOs must be agile and responsive to changing circumstances. Continuous iteration and improvement are essential for maximising the impact and longevity of data-driven initiatives.
• It is essential to consider the long-term implications of data monitoring and analysis, including ongoing maintenance, quality assurance and the need for future updates.
• Real-time data insights, such as those provided by tools such as Drukteradar, enable DMOs to respond quickly to changing conditions and manage visitor flows effectively.
• Prioritising user experience is crucial for the successful adoption of digital tools. Intuitive interfaces and easy-to-understand insights are key to maximising uptake and achieving stakeholder engagement.
• Data can be leveraged for various purposes, from improving visitor experiences and local perceptions of tourism to informing strategic decision-making. By identifying multiple use cases for every dataset, DMOs can maximise the value of their investment in data management.
• Combining data from various sources provides a comprehensive understanding of visitor behaviour and destination performance, helping DMOs uncover valuable insights to make informed decisions.
• Effective communication and persuasion skills are essential for gaining buy-in from stakeholders and driving the adoption of data-driven practices. DMOs must clearly articulate the value of data and demonstrate how it can be used in order to change existing practices and drive change.
• While data provides valuable insights, it should not replace human judgment and creativity. A balanced approach that combines data-driven analysis with qualitative insights is essential for making informed decisions.