- DMOs prioritize economic impact over engagement, said Sojern.
- Customer engagement ranks third among DMO priorities.
- In North America, most prioritize hotel room nights and direct revenue.
MEASURING ECONOMIC IMPACT ranks above visitation and engagement in destination marketing organizations’ priorities, according to Sojern, a digital marketing platform. As marketing shifts to performance metrics like conversion and ROI, tighter budgets force marketers to ask a direct question: Is this driving the business forward?
Sojern’s “State of Destination Marketing 2026” report, drawing on input from more than 350 DMOs worldwide, examines how organizations adapt strategies amid economic pressure, changing performance expectations and increased use of AI in travel marketing.
“Destination marketers are under more pressure than ever to show measurable impact,” said Mark Rabe, Sojern's CEO. “This year’s report shows how DMOs are rising to that challenge—rethinking success metrics, investing more intentionally and adapting strategies as AI reshapes discovery.”
San Francisco-based Sojern is a subsidiary of RateGain, a provider of cloud-based solutions for the travel and hospitality industry.
Globally, 72 percent of DMOs cited conversion and ROI metrics as key performance measures and 72 percent cited economic impact data as a primary benchmark, the report said. Customer engagement ranked third at 41 percent.
In North America, 79 percent of DMOs prioritize hotel room nights and direct revenue over brand awareness. In Europe, 51 percent focus on long-term brand development, while 31 percent reported funding risk. In the Middle East, Asia and Africa, 88 percent cited conversion as the top metric.
Approximately 66 percent of DMOs use AI for content development, while AI use for analytics and insights rose from 28 percent to 51 percent year-over-year, the study said. Around 16 percent reported no AI use. More than half of respondents expressed concern about AI-driven search affecting destination discovery and 31 percent expect their websites to be primary sources for AI-generated responses.
The report was produced with Dynata and supported by Brand USA, U.S. Travel Association, Destinations International, Destination Canada, European Travel Commission, City DNA, Caribbean Tourism Organization and Pacific Asia Travel Association.
Despite increasing intent, personalization progress has stalled, the report found. Only 9 percent of DMOs describe their advertising as “advanced,” while those reporting basic personalization rose from 14 percent to 22 percent year-over-year.
Paid social remains the most used digital channel, with 88 percent of DMOs investing globally. Instagram and Facebook anchor social strategies, with 97 percent and 90 percent adoption respectively, while YouTube use has grown to 55 percent, reflecting its role in inspiration and consideration.
Co-op marketing remains a key lever, the report said. About 80 percent of DMOs run co-op campaigns, mainly to reach wider audiences, 70 percent, increase total investment, 64 percent and share costs, 63 percent. Complexity is a barrier, with 27 percent citing partner management as too difficult for lean teams.
A recent report by HotelData.com found that U.S. hotels ended 2025 with lower demand, declining RevPAR and a widening performance gap across chain scales and regions. Full-year profit share rose as operators managed costs and operations closely.
