Monitoring the evolution of the destination’s activities through a system of key performance metrics which are to indicate the need for reorienting efforts or strategy in case the results do not meet the strategic goals. There should be many KPI sections:
- Indicators tracking the outcomes of the open innovation system, like mission-driven initiatives, business model innovation discussions, as well as marketing ones like written stories, shared contents and other social media metrics.
- Indicators tracking the expansion of the business model, like number of innovation system members (considering various member categories), partners by category, overall tourism arrivals, overall revenue, revenue per geographical market, revenue per market segment, average revenue per tourist, average length of stay, merchandising sales, occupancy rates, satisfaction rates, etc.
- Indicators to characterize the evolution of tourist demand, identifying the behavior patterns for every market segment, like average expenditure, average length of stay, type of accommodation, activities carried out, type/size of group, trip organization, marketing channels, etc. These are also to gain a better understanding of tourists’ needs, concerns, motivations and aspirations.
- Other indicators tracking the evolution of the business model such as the kinds of integration formulas to which most partners adhere (indicating the confidence inspired by the model), profitability of the business units, number of direct and indirect employments created, training courses attended and successfully completed by employees and partners’ employees, etc.
- Indicators tracking the accomplishment of social and environmental goals, further explained in the section 2.12.
Further, it is necessary to explain the performance standards the model should comply with, the key metrics to monitor them, and the key competences needed to comply with such standards.
This section should explain in detail the operational system of all critical activities nurturing and sustaining the competitive advantages of the destination model, as well as the platform management system, stating the performance standards and the metrics to monitor the model’s evolution.
Do you miss any key activity to ensure its proper functioning? Would you add any other type of KPI?