Could the Share Economy trend be the final TKO for DMOs?

Let's face it, Destination Marketing Organizations are a resilient folk. But, my tax collecting friends...the shift has hit the fan.

The rise of the OTAs and practical death of Travel Agents was a dodged bullet for CVBs who were laggard to adopt technology marketing. Having launched my career in digital dino days; I can testify how hard it was to convince DMOs to give ANY money to Internet marketing; let alone shave the budget of inflated TV with diminishing returns. Selling websites in those days was downright hostile.

It's true, if you want to make someone mad - ask them to change. You soon grew to love us geeks when the trends shifted in our favor. But, IF those Online Travel websites had not wanted your advertising revenue more than Unicorn blood, DMOs might not be in business the way they are today. OTAs were first, aggressive and listened to the consumers. But as my OTA rants are well-documented, I'll spare you one more and get back on topic.

The sharing economy, ie: the collaborative economy is about sharing resources is definitely on the rise. Why should you care? Because it's a major shift in travel. First, let's identify some technology in this vein and see if you can spot the moral of the story before I finish the list.

1. Airbnb - You know this name already, booking homes instead of hotels - a more modern version of VRBO. You may be dealing with a rise in booking popularity and a glaring difference in your tax collection. If you are not, you will. I'd stake my boots on it.
2. Couchsurfing - the home-stay program that lets travelers sleep on local couches free of charge. The rise in authentic travel and native experience will have this one trend burning longer than you would suspect. Hint: Not only do you lose ALL bedtax collection of this visitor, unless you've been marketing savvy enough to entice the visitor to "tell you all about it", researching these visitors is darn near impossible.
3. EatWith and Feastly - Why go to a restaurant when you can dine IN a Chef's home?? That's the idea behind this trend. Again, off the grid and I don't yet know the tax implications, but I know the impact will hit restaurateurs in small and large ways.
4. Lyft, Uber and Sidecar - You probably have heard of Uber or may use it yourself, the other two are similar with differing brand experiences. Why should you care? Notice how the sharing economy allows people to do things THEIR way? Apply this thought a little more broadly, if they don't go to the DMO website or Visitor Center, you're no longer an information source.
5. Localfu and AskAStranger - Travelers use these apps (Localfu is a $5 charge) to ask travel questions and knowledgeable locals provide answers to earn points (and $$). This can really be an opportunity for DMOs to become part of that conversation. After all, you are a local travel expert! If we ignore this trend in particular, we are participating in the demise of the need for DMOs. This is the basic, most virile form of destination marketing; service the visitor!
6. ToursbyLocals, WithLocals, Adventure, AdventureLocal and Vayable - Just like it sounds, locals giving tours. Another opportunity for entry into the Sharing Economy language; aiding this trend might just win survival points.
7. VoomaGo and VoomaPass - Travel Agent meets local tour guide. Go posts experiences, and Pass charges a fee to receive all-access travel planning from a local. Another collaborative opportunity, or - you may want to offer this from the DMO.

Get involved if you can, make these trends work for you. From just the mobile revolution, you know how quickly one or all of these can become a real issue in your destination. You cannot control the sharing economy, you can't tax it and you can't eliminate it. It's time to take consumer-run technology seriously, and recognize it as a real economic threat.

For more of Jennifer's advice, contact her at: jennifer@northstarideas.com