INTEGRATED BUSINESS STRATEGY OF THE ORGANIZATION FOR THE DESTINATION MANAGEMENT ORGANISATIONS (DMO)

Abstract

Destination Management Organizations play a leading role in managing the network of destinations and establishing and maintaining cooperation between stakeholders. It has been proven that destination management organizations (DMOs) need to perform both managerial and marketing functions. The criteria of their productivity are organizational efficiency and effectiveness. The article solves the problem of measuring productivity (effective use of organizational resources by the management) of DMO and optimization of the main processes in order to ensure the creation of added value in the entire value chain in tourism. Strategic management tools were used in combination with Lean Six Sigma method tools. This made it possible to build a value-oriented model of DMO process optimization, which will provide support for decision-making regarding the structure of the tourism chain, coordinate the movement of goods and the provision of services, as well as the exchange of information between organization members and stakeholders. According to the authors, this can be achieved through the integration of activities: promotion and marketing, understanding consumer requirements, access to technology and the implementation of innovative practices, training and professional development, quality consulting for clients, and the implementation of a modern management concept – lean management in DMO will contribute to increasing the number tourists and growth of added value at all. The presented methodology for building the strategic boundaries of DMO development, using Lean Six Sigma methods, will contribute to the optimal development of tourist destinations, presenting a complete current picture of processes and interdependencies between them within the framework of one management organization. This can be the basis for the development of an interactive decision support structure that is used to optimize activities and operations in DMO.