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A business model typology for destination management organizations

A business model typology for destination management organizations The need and legitimacy of destination management organizations (DMOs) are increasingly questioned. Still, the tourism literature provides little advice on how DMOs change and finance their activities for the benefit of their destination-given contextual change. This conceptual article aims to contribute to filling this gap. The authors do so by proposing a typology of business models for destination management organizations.Design/methodology/approachWith the help of typological reasoning, the authors develop a new framework of DMO business model ideal types. To this end, the authors draw on extant literature on business model typologies and identify key dimensions of DMO business models from the tourism literature.FindingsThe challenges DMOs face, as discussed in the tourism literature, relate to both ends of their business model: On the one end, the value creation side, the perceived value of the activities they traditionally pursue has been declining; on the other end, the value capture side, revenue streams are less plentiful or attached to more extensive demands. On the basis of two dimensions, configurational complexity and perceived control, the authors identify four distinct ideal types of DMO business models: the destination factory, destination service center, value orchestrator and value enabler.Originality/valueThe authors outline a “traditional” DMO business model that stands in contrast to existing DMO classifications and that relates DMO challenges to the business model concept. The typology provides an integrated description of how DMO business models may be positioned to create and capture value for the organization and the destination(s) it serves. The ideal types point to important interdependencies of specific business model design choices. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Tourism Review Emerald Publishing

A business model typology for destination management organizations

Reinhold, Stephan; Beritelli, Pietro; Grünig, Rouven
Tourism Review , Volume 74 (6): 18 – Nov 20, 2019
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References (98)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1660-5373
DOI
10.1108/tr-03-2017-0065
Publisher site
See Article on Publisher Site

Abstract

The need and legitimacy of destination management organizations (DMOs) are increasingly questioned. Still, the tourism literature provides little advice on how DMOs change and finance their activities for the benefit of their destination-given contextual change. This conceptual article aims to contribute to filling this gap. The authors do so by proposing a typology of business models for destination management organizations.Design/methodology/approachWith the help of typological reasoning, the authors develop a new framework of DMO business model ideal types. To this end, the authors draw on extant literature on business model typologies and identify key dimensions of DMO business models from the tourism literature.FindingsThe challenges DMOs face, as discussed in the tourism literature, relate to both ends of their business model: On the one end, the value creation side, the perceived value of the activities they traditionally pursue has been declining; on the other end, the value capture side, revenue streams are less plentiful or attached to more extensive demands. On the basis of two dimensions, configurational complexity and perceived control, the authors identify four distinct ideal types of DMO business models: the destination factory, destination service center, value orchestrator and value enabler.Originality/valueThe authors outline a “traditional” DMO business model that stands in contrast to existing DMO classifications and that relates DMO challenges to the business model concept. The typology provides an integrated description of how DMO business models may be positioned to create and capture value for the organization and the destination(s) it serves. The ideal types point to important interdependencies of specific business model design choices.

Journal

Tourism Review – Emerald Publishing

Published: Nov 20, 2019

Keywords: Business model; Value creation; Typology; Value capture; DMO

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