DESTINATION: ALERT Bitcoin and Bedtax

Ok, we all lived through OTAs shortchanging CVBs on bedtax.  Many forward thinking CVBs and State DMOs sued these entities and won back tax.  Some destinations ignored the OTA trend and a few of the (unnamed to protect the bully) OTAs even tried to convince the city government that the OTA should, not only not pay the bedtax, but keep it for their own marketing efforts and put the destination marketing organization out of business.  If you were around in '03, '04, you probably remember how petrified we all were of this massive trend.  The web was still a new vehicle to DMOs and something few invested in fully.  Fast forward a few years, and the DMO website is still just a fancy brochure, while the OTAs capture the real data and economy of the traveler.  

We had an opportunity to shape our travel economy and we failed.  A threat is just a problem in hiding.

The internet economy booms on, the shift for traveler attention to social media, which most DMOs still lag in (yep, I'm talking to you), because we don't see it as an affecting our businesses one share at a time.  As this connection economy speeds forward and is arguably the biggest shift since the Industrial Revolution, we think we've seen and lived through the biggest threats to the traditional DMO.

We couldn't be more wrong.  

Many upcoming trends and threats are unidentifiable or we just don't think we can affect change, so we ignore it until it becomes a problem. In walks in cryptocurrency.  Bitcoin and the like is growing  faster than a weed in spring, and it's imperative that you consider the impact on a local and global scale.

As I type this, more than 400,000 hotels worldwide accept cryptocurrency to pay for hotel rooms.  

Expedia has accepted Bitcoin for some time.  

Since this type of currency is not bank regulated, it is also not tax regulated.  Do you know what portion of your growing traveler demographics will soon, if  not now, will be using cryptocurrency and if you are going to be able to count and collect bedtax?

You've mastered SEO, dabbled in Social media and chosen the firm to market your destination online.  What have you done to defend your revenue?  Believed to be the last booming economy, tourism is taking a tectonic shift again.  Bitcoin is only one trend in more than a dozen that could close your doors or propel you to a leadership position.

Commission a feasibility study with an internet economy veteran (*waves enthusiastically*), dig into the next trends, including SmartCities, that ensure your legacy in the  NEW Travel Economy.

23 of my 27 documented prognostications in the travel+tech space have come to pass.  I'm really good at shining a light on the issues and creating opportunity out of threat.  Please don't make me say "I told you so" a few years from now.

peace, love and bedtax,

Jenn