Repositioning an Underperforming Destination
When a serious condition becomes critical, itÂ’s time to act
Turning around a destination to once again attract profitable customers often requires a reevaluation of its competitive positioning. A recent issue of the online newsletter, The Wanderlust Report presented a method for addressing positioning problems of underperforming and distressed destinations.
“A serious condition has become critical,” says Mark Shipley, President and Chief Strategic Officer of Wanderlust. “The symptoms are telling: lack of clear direction, an air of ambivalence, disengaged staff, complacency toward the customer, eroding consumer satisfaction. The results are undeniable: fewer visitors, shorter stays, tighter margins, lower profits.” A once thriving and highly desirable destination, resort or attraction is in decline – or worse – it’s teetering on the edge.
There are many reasons why underperforming and distressed destinations get that way. The needs of the market shift. New competitors emerge. Unchecked mismanagement, invisible in good times, can take its toll when a recession rears its ugly head. An old marketing plan that once delivered ROI no longer reaches the right audience, at the right times, with the right message.
Symptoms of an underperforming brand:
• Revenue growth lower than the competitive set
• Attendance in a sustained gradual decline
• Advertising and marketing fail to generate ROI
• Discrepancies between customer expectations and experiences
• Repeat customers stop repeating
“As things continue to get worse, budgets are slashed,” Shipley continues. “Staff is released. Everyone left is asked to do more with less, which can take the financial pressure off in the short term. But if something isn’t done to reverse the trend...” he trails off ominously.
Read more of Repositioning an Underperforming Destination in the Wanderlust Report, Volume 2, Number 3.
About Wanderlust
Wanderlust provides marketing and branding expertise to destinations, resorts and tourism attractions. We uncover what drives people to choose where they go and build integrated marketing programs to attract them — using the internet, social networks, direct marketing and mass media.
Contact: Mark Shipley
Phone: 518-272-2500
Email: [email protected]
