This article adds to the ongoing debate on the performance of corporate-based versus community-based destination management models. New forms of integrated, centrally managed destinations challenge the business models of traditional, historically grown destinations driven by decentralized ownership. This article analyzes the contribution of corporate governance theories to the explanation of destination governance structures and evolution. The research uses six selected dimensions of corporate governance, and the operationalization through concrete items, to analyze and assess twelve destinations in the Swiss Alps. Various destination governance forms and mechanisms reveal the context for conditions for success.
Purpose Hotel managers are being challenged by the increasing multitude of distribution and sales channels. Online travel agencies (OTAs) in particular generate a great deal of uncertainty: Which are the best ones? Which ones offer the best conditions? How many channels are optimal for my hotel? How can I evaluate costs versus benefits? These and other questions concerning the optimal online distribution channel strategy have produced different reactions in practice. The aim of this paper is to challenge the need for an over-optimization of channel strategy by proposing that the consumer, at the end, deals with a network of information presented on one networked environment, including the Web. Hence, the network effect of the numerous online platforms is what drives consumer choice and, finally, bookings. Design/methodology/approach A series of multiple regressions with representative samples of hotels in Switzerland from the years 2009, 2010, 2011 and 2012 was performed to estimate the importance of the number of platforms against other independent variables. Additionally, further multiple regressions with samples from the years 2011 and 2012 using the most important platforms (first-tier channels) shows again that the number of platforms is more important. Findings The analyses show that the estimated number of online bookings by the respondents in the hotels is a result of the number of channels, not the type of channel. This is particularly true for non-categorized establishments and one- and two-star hotels. The analyses do not confirm the billboard effect, according to which particular platforms (first-tier channels) increase the probability of bookings. Thus, the survival strategy is to maximize share of shelf and to build on interdependencies and network effects. Research limitations/implications The study looks only at online bookings. Additional research into the connection between online and offline channels, particularly from the viewpoint of the consumer, will provide further insights. The study looks at the booking volume per channel, not the monetary sales volume or the profit. A study that quantifies not only the volume of bookings but also the total profit or the contribution to profit per channel could quantify the benefits of the multi-channel strategy. Originality/value The multiple online channel strategy seems to be the more effective approach to maximizing bookings online, regardless of the platforms chosen. Results of the study challenge the current opinion among practitioners that the multitude of distribution channels forces them to choose among single online channels and, therefore, drives the search for criteria to assess these channels or even to disregard them. The consistent results across 2009-2012 show that even in the turbulent phase of the advent of OTAs in the travel industry, hotels can adopt a winning strategy. Finally, the results suggest that the intermediation of online distribution of hotel beds has approached the condition of perfect competition, causing the OTA business model to be cannibalized.
Purpose – Starting from the tenet that destination management deserves a systemic approach the authors first explain the meaning of systemic leadership and then discuss its relevance for tourist destinations. The aim of this paper is twofold. First, it develops a concept of destination leadership based on a systemic perspective and therefore prevents a common misunderstanding, namely that destination leadership may simply generate from organizational leadership. Second, the concept builds on extant literature on destination governance and in so doing it stretches the vector of this research stream (governance) into a supplemental field (leadership). Design/methodology/approach – Based on recent empirical research in the field of systemic research in destinations, the concept of destination leadership is elaborated in a wider context of destination management. Findings – As a result, a set of dimensions and mechanisms which drive the systemic development of destinations can be distilled. A framework for further research is proposed and tested with the help of an empirical study with a set of influential actors from four destinations in Switzerland, Austria, and Italy. Originality/value – The results reveal that influence as a proxy for systemic leadership is supported by trust and effective communication. Other leadership dimensions derived from traditional leadership literature such as mutual understanding, accessibility (non-significant) or likeability (negatively affecting influence) prove to be irrelevant to systemic leadership. The implications underline the need to differentiate between leadership in inter-organizational arrangements and leadership in destinations, understood as communities and complex social systems.
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