Bill Geist's Zeitgeist

It's About Control

The City Council of Duluth MN recently voted to redirect funding from its Destination Marketing Organization to an ad agency 150 miles away. For those of us that know how this game is played...that's beyond lunacy.

Across the bay, in Superior WI, the Mayor is advancing a notion that there should be a "Commission" that decides how Room Tax funds are deployed. Make no mistake, the City Council has had this responsibility for years. But this concept will put the decision in the hands of residents that are appointed to the Commission by the Mayor. Thus, the Mayor takes control of where the money goes, as his minions will do his bidding.

A telling quote from a story from Wisconsin NPR: "I think that's a very real desire to have some say in what these marketing campaigns look like and how much we spend on them," said Paine. "That's a power we don't have now." 

Power. Control. I get it. Cities collect the tax and they have a fiduciary responsibility to ensure it is invested wisely.

But, can someone tell me why a Mayor thinks he knows how Destination Marketing works? That he has spent time doing the work that we all do to build campaigns based on data? And that his minions have a clue as they decide how Room Taxes should be invested?

As the authors of "Race for Relevance" so clearly state, "these are part-time amateurs." Well meaning, well intentioned...but, they don't do this work for a living. But because they are elected, believe they know how this all works.

DMOs do. So why are these politicians so hell bent on wresting that talent away from the people that know it best?

I know, I know...because they can. Not because it's right.

The Yin and Yang of Travel

Destination Marketing Organizations pursue the visitor economy in a number of different markets. But for our hotel partners, they often view our responsibility in two distinct segments of the week...weekdays and weekends.

Weekdays are filled with corporate business and meetings & conventions. Weekends are when sports tournaments and family group activities fill rooms. And as we have all seen, the pent up demand in leisure travel, after a year and a half of being cooped up, is also filling weekends in this nation's hotels.

But, make no mistake. The most lucrative portion of the week for hotels is often weekdays. Depending on the destination, hotels can often make more on corporate and convention travel than weekend travel...and that's why this new study from the American Hotel & Lodging Association is so troubling. 67% of business travelers now say they will take fewer and shorter trips. Over 50% say they plan to cancel upcoming trips with no plan to reschedule. And, 66% say they will only travel to places they can drive to, unconvinced that air travel is safer. When it comes to Meetings and Conventions, 71% say they will attend fewer events. We were so hopeful for recovery...and that hope is now waning.

The Delta variant, and the remaining Americans that refuse to be vaccinated, is to blame for this. Political posturing is to blame for this. Bad actors on Social Media are to blame for this.

I understand why so many are resistant to getting vaccinated for political reasons or a fairly unwarranted fear of complications. I do.

But, if you knew there was a less than .01% chance of dying when you could rescue someone trapped in a burning building, would you spring to action? I believe you wouldn't hesitate.

There's a less than .01% chance of dying from the VAX, and, by getting a free shot in the arm, you can help save America's travel economy...and millions of jobs of good people who are looking to you for help. Begging for your help.

What's it gonna be?

The Challenge

Don't challenge us. That's the message from political leaders in Penticton BC.

There's a lot of weeds to traverse here...but, at the end of the day, hoteliers have apparently indicated they will not support an increase in the Room Tax if the increased revenues are not directed to the DMO.

The Mayor responded thus: "When I hear a threat that if we don't go along with what they want that there will be a chance that the accommodations will not go for that three per cent ... that puts the hair up on my back and I'm going to say no, darn it, you're not going to have your way just because."

Just because?

Sigh.

On Capping Municipal Investment in Destination Marketing

It doesn't appear likely to happen in an Alabama town...but a City Council member there recently suggested capping his City's investment in destination marketing. Such a suggestion has been floated before and Council has been sophisticated enough to dismiss the notion out of hand.

But, it keeps coming up. This time, the quote from the Council floor was, ""Tourism does a wonderful job, but I feel like there needs to be a cap there. There needs to be a place where we stop them from getting so much. I feel like $900,000 is a lot of money."

Yeah...did you just snort Diet Pepsi through your nose, too?

But, here's the thing. The cost of everything keeps going up. Capping income to a DMO (or any enterprise) means they'll be able to do less and less every year. And, as the competition only gets fiercer.

So, to the Councilman, I ask...whatever you're making now in your day job? Mind if we cap your income for the rest of your life? 

Just sayin...

New on DMOU: Steve Moore

The latest episode of the DMOU Podcast just dropped...and we were honored to have former Visit Phoenix CEO Steve Moore grace the microphone for a free-flowing conversation focusing on his 46 years in the DMO sector and his view on the future of destination development. From politics to leadership (and a fun Bonus Round question), this is an episode you won't want to miss.

Is America's Brand Recovering?

Earlier today, I was on a Zoom call with an industry peer in Israel. We've been following each other online for over a decade...but had never taken the time to actually talk. This morning we did...and, my Mom taught me better than to start a first conversation with a question about politics. But, given this weekend's ouster of the Israeli Prime Minister, I couldn't help but ask "what's next?"

He described a legislative body with the slimmest of margins and offered a hope that his country, which has gone through four elections in two years, would begin to get back to governing by, as the newspaper Maariv suggested, "the yearning for sanity. The wish of many Israelis to live in quiet, without incitement, without hatred."

It struck me how much that sounded like America...and how much calmer life has been in America since Donald Trump left office. And that most people I know (surely not all), aren't wound as tightly since the inauguration of President Biden. It's as if the government is being led by someone who knows how this all works, instead of someone who was more interesting in Tweeting insults than leading a nation.

And, a Pew Research study about international opinion confirms just that. Today, 62% of those in 16 developed countries have a favorable view of the U.S. That's up from 34% last year. 75% believe Biden will "do the right thing" regarding world affairs. That number was 17% last year.

I know that Americans remain deeply divided...but it's fascinating how the rest of the world views us compared to just last year.

The Folly of Fair

I support the notion of a level playing field in virtually everything. I say "virtually" only to cover my butt in case there is a situation I have yet to experience where it wouldn't make sense. But, I'm hard pressed to imagine such a situation.

Unfortunately "fair" is increasingly seeping into community conversations regarding contracts for Destination Marketing. Visit Duluth is in the midst of an RFP process with their City...and news out of Juneau AK indicates that its DMO will be facing a similar gauntlet.

Don't get me wrong...Cities have every right and responsibility to demand accountability for the revenues they invest in any endeavor. Unfortunately, those that go down this path haven't considered that their DMO is a classic example of a "Sole Source Provider." There are simply no other entities that provide the breadth of services that a local DMO does and can. Saying that we must be "fair" and let competitors state their case is flimsy, at best.

If it's an ad agency, they might have cooler creative...but they don't have a running relationship with a database of thousands of meetings and event planners across the country. If it's a Chamber of Commerce, they might have good relations with the region's business community...but they won't represent those cool businesses that make a destination magnetic if those businesses aren't members. And handing DMO responsibilities to a Convention Center that may have a database but no expertise in brand and social media? There are more examples of where it doesn't work than where it does.

It's called a Sole Source Provider for a reason.

And, let's not even go to engaging a vendor from out of town. This past year has shown how vital boots on the ground are. Would a vendor from Wichita have worked 70 hours a week to help save businesses in Duluth during the pandemic? Doubtful.

Again...I get that this might seem like a lot of money for Cities to invest (it's really not when one understands the true impact of Destination Marketing in Economic Development and Quality of Place) without a competitive process. But, when DMOs are the only entities with the experience, database and dedication to successfully (and singularly) market a community...these are RFPs that should have a pre-determined outcome.

Unless it's political...or about price. But, consider this...would a City contract with a road construction company that doesn't have graders and pavers just because of price?

Then why consider such a move with your DMO...if it isn't price or politics?

There They Go Again

In 2018, community activists in Sedona came uncomfortably close to shutting down funding for Destination Marketing. The Sedona Chamber of Commerce & Tourism Bureau responded by developing a sensational Sustainable Tourism Plan and resident anger subsided, with most being satisfied that their concerns had been addressed. We featured then-Chamber CEO Jennifer Wesselhoff on an episode of the DMOU podcast that you can hear here.

The anger and frustration is back...and the Sedona City Council spent 4 and a half hours last week going over every single line item in the Chamber's proposed budget, with the intent to strip anything that smelled like marketing from the budget. The ultimate goal: to hit the pause button on all consumer marketing for a year to see if visitation slows.

Seems like a mighty big risk for a City that depends on visitor spending to make up 80% of their sales tax receipts.

How We Got Here

One more Frank Luntz reference before we go...

In 2012, Terri and I spent parts of two days with the man as he was preparing to lead a televised focus group after one of the Republican Presidential Debates that ultimately produced Mitt Romney as the GOP's standard bearer. As we drove to the convention hall, he unexpectedly invited us back stage after the debate. And, as we slid through security like butter, a Fox producer informed Frank that he would be getting two segments in the post-debate coverage, instead of the standard one. He turned and asked, "who's getting bumped," as the top running candidates typically got the three slots after Franks' analysis.

"Rick Perry," she said. "Hannity has decided he doesn't have what it takes." At that moment, we saw the power the Fox star had in deciding the future of the election. Days later, Perry dropped out.

I tell the story to provide background on just how plugged in Frank Luntz has been over the past quarter century...and how the Trump presidency shook him to his core. A friend turned me on to an hour-long conversation with Frank, recorded days before his stroke in early 2020. 

Many of us that follow politics have our opinions on how we've gotten to this dysfunctional place in our nation's history. I've blamed the media. Others have blamed Obama's refusal to collaborate with the other side and simply run the table (which Frank believes played a part).

Not to be a spoiler..but he ultimately believes it was the nomination of Sarah Palin as John McCain's running-mate in 2008.

There...now you hafta listen. Because it makes a ton of sense.

Sadly.

The Politics of the Mask

Just back from a week-long road trip where the misplaced belief that we are out of the COVID woods was on full display. And, as other observers have noted, the further South one goes, the fewer masks one sees.

On a Nashville Saturday night, the streets were as clogged as I've ever seen them (see photo)...almost impossible to make one's way to the next block without stepping into the street, as there were lines to get into every bar by 9pm. And, not a mask to be seen. Those gas stations along the way that still had "Masks Required" signs on their doors were filled with those that refused.

Masked, I walked onto the deck of the hotel pool during our stay in Florida and was accosted by a fellow guest who called me a "pansy" for buying into the false narrative that COVID was more dangerous than the flu. I said that the hotel GM was a friend, and she had asked for masks in the lobby...so, I was more than happy to comply. He just snorted an expletive.

And, so...after a week in a land with no masks, I found myself back on home turf this weekend. I strolled into a local outdoor garden store to score a few plants to complete this year's herb garden. And, I was getting stares...which I immediately recognized as scorn.

Yeah...I wasn't wearing a mask. And, almost everyone else was.

Where I live is one of the most-vaccinated counties in the country...and we're still wearing masks, voluntarily. For each other. 

Why is this so hard?