Understanding DMOs: How Tour Operators Can Build Real Destination Partnerships

Mitch Bach talks with Jenn Barbee, co-founder of Destination Innovate, about the real inner workings of DMOs, those three letters that every tour operator has an opinion about but few actually understand. Jenn has spent 30 years inside destination marketing, from a shoestring US Department of Commerce team trying to promote America on a $50,000 budget to her current work closing the gap between DMOs and the small businesses they are supposed to serve. The conversation covers how DMOs get funded, why they sit on valuable visitor data, and what tour operators can actually do to get beyond the dead-end website listing.

It goes further than the typical "how to work with your tourism board" advice. Jenn and Mitch get into the identity crisis hitting tour operators and DMOs at the same time: both are losing ground to OTA platforms, both need direct guest relationships, and neither is building enough local partnerships to fight back. They talk short-term rental hosts as untapped referral channels, guerrilla marketing tactics that cost almost nothing, and the hard truth about inbound tourism to the US heading into World Cup and the 250th anniversary.

Key Takeaways

1. Your DMO has expensive visitor data that could sharpen your product, pricing, and ads, but they will not hand it over unless you ask. 06:14 – 07:19 DMOs invest in data about visitor appetite, competing markets, and traveler clusters by neighborhood and interest type. That information rarely trickles down to small tour businesses because DMOs feel pressure to contextualize it or fear judgment on their numbers. Frame your ask around strengthening the destination's tourism product, not just helping your business, and you stand a real chance of getting access to insights you could never afford on your own.
2. The single best first move with your DMO is to find the community manager and introduce yourself with specific visitor language, not a sales pitch. 11:48 – 12:58 Audit your tour product against what the destination website is promoting in terms of itineraries or themes, then reach out where you see a match or a gap. Lead with collaboration. Once you have that baseline, you can inch toward higher-value asks like data sharing or co-promotion, but only after you have earned the relationship through showing up and being useful.
3. Survey your customers about whether they booked the experience before the hotel, then bring that data to the DMO. 56:29 – 56:39 If you can show a DMO that your tour attracted bed nights, you are speaking their only real language: occupancy and bed tax justification. Most tour operators never collect this data, and most DMOs have never seen it from a small business. It positions you as a strategic asset rather than another name on a listings page.
4. DMOs are shifting from marketing organizations to stewardship organizations, and that tension is something you can use. 08:50 – 09:59 Many DMOs now describe themselves as "destination management" or "stewardship" organizations, moving toward what is right for their communities. Their boards and bed tax collectors still want heads-in-beds KPIs. If your tour disperses visitors into underserved neighborhoods, supports local businesses, or tells a more honest destination story, you become the kind of partner that helps a DMO justify its new direction to the people holding the purse strings.
5. Getting listed on the DMO website is a win. Stop underestimating it. 13:10 – 13:45 Many operators treat a listing as table stakes, but some DMOs do not even offer that without a paid membership. If you are listed, follow up by tagging the DMO constantly on social media and feeding them content they can reshare within their brand guidelines. The social media managers have more flexibility than the executive staff and will amplify content that feels fresh or on-brand.
6. If your local DMO is stuck promoting only the marquee attractions, skip them and go to the state level. 17:38 – 18:32 A DMO locked into bread-and-butter promotion is usually in protection mode, worried about occupancy numbers. State tourism offices have embraced experience-driven programming and are more open to working with operators who tell a broader story. For most small tour businesses, the state governor's conference on tourism is where accessible DMO relationships start.
7. Short-term rental hosts are closer to the guest than any DMO, and tour operators should be building direct relationships with them now. 24:31 – 26:00 Short-term rentals nationally overtook hotels in occupancy as of September 2025. Those hosts talk directly to guests about what to do in town. A recommendation from a local Airbnb host is warmer than any OTA listing and costs zero commission. Finding them is manual (social media DMs, local searches), but the payoff is a direct referral channel with no middleman.
8. Stop chasing first-time visitors. Loyal, repeat visitors spend more, stay longer, and sustain the businesses that matter. 32:49 – 33:32 DMOs and operators both fixate on acquiring new customers while ignoring the people who already love the destination. Repeat visitors become patrons of smaller, niche experiences and local businesses. For multi-day operators especially, a returning guest who books a deeper or different tour is more profitable than constantly feeding the top of the funnel.
9. Identity beats branding. Know who you are and say no to the rest. 38:44 – 41:27 Jenn draws a hard line between brand (what you market) and identity (who you actually are and who you serve). When you lead with identity, you market less because the right people find you. That means turning down some customers and product ideas, which is terrifying for newer operators, but it prevents the bland, generic positioning that makes you invisible on platforms like Viator and GetYourGuide.
10. The "book direct" movement matters for tour operators just as much as it does for short-term rentals and hotels. 42:58 – 44:28 Hotels lost roughly 80% of their distribution to OTAs. Tours and activities sit around 40% OTA-controlled, which means there is still time to build direct channels. DMOs missed the OTA boat the first time and are caught in a relevancy crisis. That creates a shared interest: both of you need to reclaim the guest relationship before the platforms own it entirely.
11. Guerrilla, person-to-person marketing is the only thing worth betting on in this environment. 34:16 – 35:03 Replace coffee sleeves at a local shop for a week with a message like "next time mama's in town, try this." That costs almost nothing and puts your name in front of a local audience in a real, physical moment. Operators burning money on flashy ad campaigns and agencies are losing to the ones doing the manual work of building one relationship at a time.
12. Bring tour operators, short-term rental hosts, and local businesses into the same room. The collaboration that comes out of it is worth more than any campaign. 30:35 – 32:17 A 12-person Tourpreneur meetup in Dallas turned competitors into collaborators planning joint tours before they left the room. Those rooms should include short-term rental hosts, restaurants, coffee shops. Nobody is organizing these cross-sector local gatherings yet. That is the opportunity.
13. Rethink the "travel presentation at the library" model. Gather local people around something that is not your tour. 53:23 – 54:46 Jenn pitches a revival of the house-party model for travel: 10 to 15 people, food, conversation, then introduce the experience. For multi-day operators, this replaces the stale slide deck. Book clubs are surging. House gatherings are surging. The sale happens because you built trust in a personal setting, not because you ran a Facebook ad.
14. Quirky, unpolished video cuts through. But virality does not equal business success. 36:32 – 37:38 Behind-the-scenes, day-in-the-life content is what is actually getting traction on social right now. The less templated and less AI-generated it feels, the better it performs. Use that attention as a hook, then shift to collaborative content and real relationship-building that converts. A weird 30-second clip of your tour prep is worth more than a polished banner ad.
15. The inbound tourism situation in the US is worse than most operators realize, and pretending otherwise is a losing strategy. 48:28 – 50:43 Canadian airlines are pulling US routes for summer 2026. Sixteen countries now have travel advisories against the US. The World Cup and the 250th anniversary are approaching with a damaged international reputation. Operators who depend on inbound international visitors need to pivot hard toward domestic and loyal-visitor strategies now, and the ones who acknowledge reality in their messaging will build more trust than the ones still running sunset stock photos.