Industry Confidential

INDUSTRY CONFIDENTIAL

Check in every issue for the unfiltered thoughts of our guest writers and contributors as they discuss the hottest topics in sports tourism.

In this issue, our guest writer discusses the subject of approaching tourism with a buyer or seller mentality.

If you are in the Sports Tourism industry, there is one question you should be asking yourself: are you a buyer or a seller?

Please take a quick journey with me; today, we are stepping away from previous definitions of our roles in the industry. Grab a snack, this’ll be fun.

OK, What do I mean by the question above, and why is it so important?

First, let’s look at how we’re currently classified. Typically, DMOs (destinations) hire salespeople to bring events (Rights Holders) to fill hotels. These efforts are based on the marketing and sales plans that leadership developed at the beginning of each budget year to sell the rights holders they have marketed to in previous years. Conversely, rights holders create an RFP and attend trade shows to attract destination interest.

What if, instead, each side were to focus on the idea of themselves as a buyer or a seller?

That is this, destinations and event organizers would benefit more if the destinations became a better, more sophisticated “Buyer” of goods and services. In other words, being better educated about your needs and then going out to buy what you need. That’s what you do when you go to the grocery store, Right? Well, I don’t, but most people do.

This approach could allow you to maximize your cash and minimize loss due to lost time and effort. If you are a steward of being a good buyer, it also will allow you to buy something off the list occasionally. Better yet, be able to take advantage of sales and BOGO’s. If you want to change a few things, ask or negotiate the best product/price for your destination. This business isn’t a one-size-fits-all.

How does this work for the event organizers? The opportunities are indeed endless; now they can design a product that can work on different levels to fit the needs of the buying destination. No longer waiting endlessly at trade shows for the right fish to come by, they can go to the biggest pond if they have the right product. The more moderate buyers can focus their energy and time on products that will fit their budgets. The event organizers, the “sellers” can now provide “fully loaded” versions of their product and/or more basic versions of their product (a more “Boutique” version). These variances are designed to meet the destination’s needs and financial range.

Matching up their top shelf products to the right markets produces the best results and highest prices. The secondary product still has value but may not have power windows or leather seats. AND THAT’S OK… That stripped-down model allows the buyer and seller to come together to add options and create the right fit for the buyer’s needs.

Three things can come from this type of analysis and thinking on both sides:

1. Save time.

2. Save money.

3. Increase customer experiences on both sides of the table.

Now, there are certainly going to be exceptions to this theory. Some destinations are great at “punching up” meaning they can play outside of their perceived weight class. Good on them if that’s the case. I’m not talking about you so just keep your hat on. Then there are some destinations that create several of their own events, taking the approach of ownership is never a bad thing if you have the talent to do it. Again, don’t get bent out of shape. Then there are the Tier One destinations; if you are wondering if you are one, you’re not.

I’m talking to the other 95% of the destinations, trying to find the way to the best events. So, where do you start? Create a shopping list, or start creating your “product catalog.” When we become a better, more educated “buyer and “seller” and add a different purpose or dimension to our search for the right event or destination, our success will grow exponentially.

Begin thinking more about qualified quality as opposed to overwhelming quantity. You will begin to find a better mix of events that will resonate with your stakeholders and community. And yes, if you do it right, there will be room nights too. Something I may address in my next rant. So, now that I have given ulcers to DMO executives and maybe upset a few event organizations, there is a way to do this that makes it work for everyone. All you must do is ask.