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5 Tips for DMO Managers with More Questions Than Answers

5 Tips for DMO Managers with More Questions Than Answers jhammond@desti… Tue, 05/07/2024 - 18:30

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5 min read

New DMO Managers Agree on 5 Pain Points

Your supervisor picked you for your position because you’re adaptable, committed, and creative. Still, you might wonder whether this job is for you. Managers I talked to at the PACE forum want help with five issues:

  1. The new DMO managers feel overwhelmed because they have too much to do.
  2. They need more guidance on how to keep members engaged and retain them.
  3. They worry about providing value to the community.
  4. New DMO managers are stressed about navigating their new roles.
  5. They want help with training and coaching teams.

Treat ‘em Right helps managers solve these problems and more with coaching, group training, and online courses customized for individual DMOs. Your first call with us is free, so contact us if you are interested.

Tip One: Prioritize and Delegate

You thought you joined an industry that values rest, relaxation, and recreation, but you are working long hours! We get it. You feel overwhelmed by what seems like three jobs in one. It’s time to prioritize:

  • Put your tasks in order based on 1) your deadlines and 2) which will have the most impact. Note: something due today is not necessarily more important than something due next week. Keep your goals in mind and prioritize what matters most.
  • Delegate non-essential tasks to team members, empowering them to take ownership. Effective delegation will reduce your stress and foster collaboration on your team.

If you’re not using project management software find one that works for you. Putting tasks in your computer will cut your stress because don’t have to try to remember 10 deadlines in your head. You might think you don’t have the money. One of the top project management software systems, Monday.com, has free subscriptions for one or two users. Other plans start at $20 a month.

Tip Two: Make a Membership Plan

You believe in your organization’s mission and want to help keep it strong. Retaining members is one of your top goals (and stressors). Yes, building and maintaining relationships with members is time-consuming. Realizing you cannot do everything at the same time, plan to meet who you can, and find other ways to connect with all your members regularly. That means planning.

Check out The Center for Association Leadership’s Guide to Membership Strategy to see what is working for others. The guide includes questions to ask yourself:

  • How are you engaging members and prospects who are in their 20s and 30s?
  • Is your online membership platform easy to use? Does it solve members’
    problems?
  • Are you fostering collaboration that benefits members? For example,
    DMOs offer visitor experience education to members’ employees and many
    others who interact with guests.

Tip Three: Focus on the Visitor Experience

The constant pressure to provide value can keep you up at night. Ease your pain by focusing on what matters most – the visitor experience. DMOs have become experts in visitor experience education (VXE) with help from Treat ‘em Right. We customize VXE based on the needs of your members. Examples of successful VXE programs include:

  • Visit Manhattan, Kansas offers VXE to retailers, hotels, restaurants, attractions, and business community employers.
  • Destination Niagara Falls USA engaged taxi and ride-share drivers, travel
    agencies, tour operators, and short-term rental owners in VXE. 
  • The Pennsylvania Convention Center trained its union labor contractors.

We have received dozens of positive reviews on our VXE video series. We believe in video because people retain 95% of what they learn while watching a training video, compared to 10% of what they read. However, for some learners, our hybrid live sessions are best. It’s all about the learner.

Tip Four: Connect with Others in the Industry

In a 2023 survey, 40% of recent graduates said they had no training, onboarding, or support from their managers. If you are unsure of something, ask. Your manager should be clear about expectations on things like your work hours, deadlines, and what it will take to advance in your position. Other solutions for navigating new roles include:

  • Connect with experienced managers in the industry.
  • Attend workshops, conferences, and webinars to learn from others’ successes and failures.
  • Look into Destinations International’s Young Professional Development Program and its 30 Under 30 program – a year-long networking and learning experience for emerging leaders. In an article on the DI website, a past 30 Under 30 participant says the program gave her purpose and a sense of belonging.

“Having peers who share similar struggles and passions has been transformative,” Juliet Velasquez, manager of client relationships and insights, Tourism Economics. “Through them, I've gleaned insights into leadership, skill development, and discovering my true calling. 

Sign up to get notified when DI opens the next round of applications for 30 Under 30.

Tip Five: Find a Coach

Many DMOs do not have structured management training programs. That makes it more difficult for a new manager to learn their job. So, smart DMO executives invest in expert training, coaching, and consulting. Treat ‘em Right supports success with:

  • Skill Enhancement: Training programs improve managers’ skills, from leadership to communication. Our offerings include custom workshops and online courses tailored to the needs of each DMO needs. We start with helping teams get to know each other by taking an Insight Inventory.
  • Team Performance: Coaching helps managers motivate and guide their teams. Treat ‘em Right uses tools like the 5 Dysfunctions of a Team training to help new DMO managers become more productive and aligned with organizational goals.
  • Strategic Planning: We work with DMO managers who want a Visitor Experience Strategy that supports the goals of their organization. With the right training, coaching, and consulting you will have the confidence to lead
    with passion. Contact Phil at Treat ‘em Right or call 314-221-6037 to talk about getting the support you want.

About The Author

Phil Bruno

Founder and President, Treat ‘em Right

As the founder and President of Treat ‘em Right, Phil Bruno has served 43 years in the Tourism and Hospitality industry. Bruno works with DMOs to connect them with their Visitor Economy workers and communities through custom education programs both live and on-line. Treat ‘em Right programs have exceeded expectations in over 80 cities with 100,000 Certified Hospitality Professionals.  Since 2005 Phil has been a member of Destinations International and DMAI speaking at events and serving on the Advocacy Committee, Community Relations Task Force and Visitor Services planning committee.

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What Destination Leaders Can Do to Engage Their Workforce

What Destination Leaders Can Do to Engage Their Workforce jhammond@desti… Fri, 06/21/2024 - 13:19

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Workforce development is an issue facing just about every destination executive. Attracting, developing, retaining, and engaging a team is an incredibly fluid and complex puzzle destination executives are forced to solve every single day. 

7 min read

What does an engaged workforce feel like? It feels like a team of people ready to rally around a shared mission they are deeply inspired by. Engaged workforces are willing to go above and beyond. They lean in, proactively looking for ways to contribute meaningfully. Engaged workforces show up to work every day, ready to bring their best to take care of the communities around them.

What destination leader doesn’t want that?

Unfortunately, fully engaged workforces are not as common in the destination industry as we’d like them to be. Destination executives are often left scratching their heads at how to get their team to buy in.  

Ready to engage your workforce? Start here:

Harness the Power of Your Destination’s Purpose

The purpose of a destination organization provides leadership with an inspiring mission to rally their team around.

Destination organizations are powerful economic drivers. They have the power to bring positive change to the communities, cities, and regions they represent, and your workforce is likely to consist of team members with close, personal connections to the destination they represent. Destinations are naturally positioned to cultivate an inspiring organizational purpose, creating meaningful work for each and every one of their team members.

“During the interview process, many candidates share that finding meaningful work is just as important as their compensation package,” shares Brook Kaufman, President & CEO of Visit Rapid City. “While there are times we can’t be competitive with the private sector on wages, the fact that our work does make a difference in our community is often the tipping point for someone accepting a position with us.” 

Harnessing the power of your destination’s purpose can be an incredible motivator to engage your workforce. Unfortunately, many destination leaders struggle to capture the power of their organization’s purpose. Leaders who clearly define their organization’s purpose, connect that purpose to the day-to-day work, and consistently communicate progress made can capture the full power of this engagement opportunity. “Employees want to know how their daily tasks help reach departmental and organizational goals. We can’t get from A to B without communicating where we’re headed and where each team member fits into the overall equation.”

Key Recommendation for Leaders: Work to define your destination’s purpose. Then, connect the dots with organizational objectives, goals, and outcomes so that every team member understands how their contribution directly impacts the destination’s purpose.  

As leaders define an inspiring purpose and connect the day-to-day work to that purpose, workforce engagement grows. 

Compensate Fairly

Let’s face it: compensation in the destination industry is an uphill battle for many executive leaders.

It’s tough to compete with for-profit organizations when it comes to compensation, but destination leaders have to try to compete in this arena.

Compensation is not just about salary and cash. Yes, salary and cash tend to make up an important part of what a destination can offer a member of its team, but total compensation can go far beyond that.  

Key Recommendation for Leaders: Execute regular compensation studies to get up-to-date compensation data for every role in your organization. Then, consider how to build a holistic compensation package, which enables leaders to assemble a competitive offering to attract and retain talent. Medical benefits, vacation time, flex time, remote work opportunities, wellness stipends, and professional development stipends are examples of how destinations are blending salaries and benefits to build competitive compensation packages.

As leaders obtain accurate market data, advocate on behalf of their team to their board of directors, and build competitive compensation packages, workforce engagement grows. 

Establish Career Development Opportunities

For many in the workforce, career development and opportunities for advancement are major motivators, driving engagement. Leaders can take advantage here on multiple fronts: first by developing their team members to fit the specific skill set their destination needs, and secondly, by engaging their team members to buy in as a byproduct of their career development and advancement. 

Key Recommendation for Leaders: Build your workforce by providing both internal support and external resources to foster cohesive career development. Internal support structures include mentorship programs, job shadowing, and clear career tracks. External support structures can look like stipends for class and conference attendance.

As leaders are able to provide opportunities for their team members to develop and grow their careers, workforce engagement grows. 

Provide Clarity, Then Flexibility

Work-life balance means a hundred different things to a hundred different people but here’s what most of your team really wants: autonomy to manage their work and their personal priorities. “Some employees value flexibility. Others value PTO or an organization that invests in their professional development. Delivering on what’s important to individual team members is a very effective way to keep people with you for the long term,” added Kaufman.

Your workforce has priorities and goals outside of the professional work they do. That’s a good thing! And for leaders who can build destination organizations where team members can achieve both their professional and personal goals at the same time, your workforce will be more likely to engage and stick around for the long haul. 

Key Recommendation for Leaders: Provide clarity to each and every one of your team members about WHAT needs to get done, then give them the opportunity and autonomy to get it done HOW they need to. Define the key outcomes that must be driven for each role in your organization, work to build clarity around WHAT must happen. Then, worry less about HOW the outcome is reached. 

As leaders provide clarity and flexibility so team members can achieve their personal goals without sacrificing the productivity of the destination, workforce engagement grows.

Show your Care

Empathetic leaders build more engaged workforces.

Leading with empathy should not prevent leaders from making difficult decisions, being steadfast in their beliefs, and driving the organization's needs forward. Leading with empathy connects leaders to their workforces, showing their care for the people around them and the impact that their decisions have on them.

Unfortunately, it’s more likely than not that you have worked for a leader who you felt did not care about you. It’s demotivating, it causes team members to lean out, and it results in folks looking to depart your destination. 

Key Recommendation for Leaders: Find how you show your care for your team. It could be through consistent and meaningful 1:1 time. It could also look like taking the time to eat lunch with team members at all levels of the destination. Maybe displaying your care comes in your communication around difficult topics and decisions. Discover what works best for you, but be sure to find a way to make it known that your team members matter to you.

As leaders are able to show their care, workforce engagement grows. 

Ask for Feedback Regularly

Engaged team members feel like their voice matters and their thoughts, ideas, and concerns impact the trajectory of the destination they work for.

Leaders should regularly request feedback from all levels and departments in their destination organization. When feedback is requested, it’s vital that leaders acknowledge it, share what was learned, and ultimately drive change from it. 

Key Recommendation for Leaders: Identify a variety of mediums and a variety of subject areas to request feedback on throughout the course of a year. Focus groups, surveys, and 1:1 meetings offer mediums to ask for feedback. Business operations, organizational culture, and personnel performance offer subject areas to get feedback on.

Identifying opportunities to build feedback from your workforce into recurring organizational operations will not only provide leaders with an important data point to direct the path forward for the destination, but it will also build engagement throughout your workforce.  

Get Intentional to Drive Workforce Engagement

Chalking up a lack of workforce engagement to generational differences is lazy.

Doing so also removes leadership’s responsibility to make an active difference in how their team decides to lean in and engage or lean out and disengage.

Frankly, your workforce's engagement reflects your organization’s health and development. Simply put, team members will choose to engage if they think it’s worth it.

“Is driving engagement within your team hard work? Absolutely,” shared Kaufman. “But your organization will never reach its full potential without putting energy and resources into keeping employees satisfied.” 

Leaders have the opportunity to actively drive initiatives forward to engage their workforces. Those who do so intentionally and effectively have the opportunity to lead impactful teams that drive their organizations and the destinations they lead forward in incredibly meaningful ways. 

About The Author

Chad Kearns

Vice President & Lead Practitioner
Fired Up! Culture

Chad Kearns is a Vice President & Lead Practitioner at Fired Up! Culture. Chad partners with destination executives across North America to successfully work through powerful change management processes to create healthy, high-performance organizations. Areas of expertise include culture change, organizational values development, performance management philosophy and practice, operational efficiencies and enhancement programs, executive coaching, leadership development and succession planning. 

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Registration Now Open for Destinations International Fall 2024 Conferences: Advocacy Summit, Social Inclusion Summit and Business Operations Summit

Registration Now Open for Destinations International Fall 2024 Conferences: Advocacy Summit, Social Inclusion Summit and Business Operations Summit dbreisch@desti… Wed, 07/10/2024 - 18:22

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3 min read

Registration Now Open for Destinations International Fall 2024 Conferences: Advocacy Summit, Social Inclusion Summit and Business Operations Summit

Premier events offer essential knowledge and skills to help destination organizations lead with innovation and inclusivity

Media Contact: 
Tim Smith 
tsmith@destinationsinternational.org
1.425.577.4499

Washington, D.C., USA (July 10, 2024) – Destinations International (DI), the world’s leading resource for destination organizations, convention and visitors bureaus (CVBs), and tourism boards, has opened registration for its three remaining major events in 2024: the Advocacy Summit, which will take place in Rio Grande, Puerto Rico, from October 22-24; and the Social Inclusion Summit and Business Operations Summit, which both will take place in Spokane, Washington, October 28-30.  

Destinations International continues to provide training and development specially designed to help destination organizations anticipate transformation and thrive in a continually evolving environment. Each summit will look at current challenges and opportunities and offer the opportunity to explore, learn, and network among industry peers. Attendees will benefit from comprehensive sessions that address the most pressing issues facing the sector today, from enhancing stakeholder engagement and impactful advocacy, to advancing social inclusion, to embracing advancements in technology and innovation in business operations.

“Destinations International is committed to providing our members with the essential information they need to help their organizations and communities thrive,” said Don Welsh, president and CEO of Destinations International. “Our outstanding fall summits focus on the most pressing and timely issues facing destination organizations today and offer an unprecedented opportunity to learn from experts and network with peers. I’m confident that attendees will leave each summit with new insights and actionable strategies to take back to their organizations.”

Summit overviews:

2024 Advocacy Summit (Rio Grande, Puerto Rico – October 22-24, 2024) 
Under the theme “Advocate as Catalyst,” the summit will help destination organizations better serve as essential community assets promoting the local community as an attractive travel destination while also enhancing its public image as a dynamic place live and work. Through interactive discussions, case studies and practical exercises, attendees will develop skills, identify tools and gain knowledge to support powerful advocacy. This year, the event offers three immersive workshops to explore the rich Taíno heritage of Puerto Rico; survey the intersection of ecotourism and conservation against the unique backdrop of El Yunque National Forest, the only tropical rainforest in the U.S. National Forest System; and learn about the development of eco-cultural tourism attractions at Carabali Rainforest Adventure Park. 
(Click here for more information and to register)

2024 Social Inclusion Summit (Spokane, Washington – October 28-30, 2024)
The summit offers a series of impactful sessions and immersive experiences designed to engage community partnerships and create a welcoming environment where people of all abilities and backgrounds feel welcome, valued and understood. Through a lens of accountability, attendees will learn actionable strategies to deepen community relationships and enhance workplace culture, ultimately creating welcoming experiences for visitors. Sessions include: Fostering Community Connections for Impact; Advocacy Strategies for Engaging Local Government; and Establishing Accountability in Social Inclusion. This summit is for leaders of all abilities and backgrounds who specialize in, or have an interest in, community engagement, human resources, culture development, marketing, and inclusion and belonging.
(Click here for more information and to register)

2024 Business Operations Summit (Spokane, Washington – October 28-30, 2024)
The Business Operations Summit is a cross-functional gathering of destination organization professionals in finance, human resources, operations and technology. This year’s summit will leverage the latest advancements in finance, digital platforms and talent management, offering valuable knowledge and practical solutions to help destination organization leaders navigate the complexities of modern business operations. Join us to explore how finance, technology, and HR can drive innovation and excellence in your organization.
(Click here for more information and to register)

Please check destinationsinternational.org for latest updates on these and all Destinations International events and information.


###


About Destinations International 
Destinations International is the world’s largest and most trusted resource for destination organizations, convention and visitors bureaus (CVBs) and tourism boards. With more than 7,500 members and partners from over 750 destinations, the association represents a powerful forward-thinking and collaborative community around the world. For more information, visit www.destinationsinternational.org.  
 

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Cultivating Our Future: Student Shadow Program Fuels Industry Interest

Cultivating Our Future: Student Shadow Program Fuels Industry Interest jhammond@desti… Tue, 07/30/2024 - 18:28

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Despite the workforce development obstacles we face, the tourism industry offers countless professional opportunities for future generations. Destination organizations can work with local community partners to create meaningful engagement with underrepresented youth, increase industry awareness, and foster inclusion.  

This article highlights the experiences of three high school students with the NAACP Hillsborough County Chapter who shadowed industry professionals at Destinations International’s 2024 Annual Convention in Tampa. It serves as inspiration for destinations to embrace similar initiatives to drive workforce development and diversification.  

7 min read

For so many of us in the tourism industry, the question “how did you get started” is often followed by a smile, a laugh, and a realization that it happened unintentionally. While some may have formally studied hospitality, most industry professionals find themselves in destination organizations through traditional channels like hotels or convention centers. Despite where we began or where our paths have led us, we share a deep passion for our work. Last week at Destinations International’s 2024 Annual Convention in Tampa, it was hard not to hear the words “I love this industry!” passing from person to person, like the catchy chorus to a chart-topping summer hit.

Yet, we realize talent attraction and retention are two enormous challenges our industry faces. A recent study on emerging leaders published by FiredUp! Culture and SearchWide Global found that 48% of 358 30 Under 30 honorees no longer work for a destination organization. Of those still employed by destination organizations, 27% indicate they will not be working for their organizations in three years’ time. Meanwhile, Destinations International’s 2023 Social Inclusion Study on Destination Organizations found that while 73% of over 450 employees want to see more diversity in their organizations, the reality is from it.  

It’s no surprise then, that eight sessions at Destinations International’s 2024 Annual Convention addressed challenges and insights surrounding workforce development and diversification. These conversations served as a springboard to educate and inspire the nearly 2,000 industry leaders in attendance. From talent development to upward mobility, to pay equity and beyond, opportunities are abundant. And while much of this work will be long-term, creative solutions may be closer to home – and easier to implement - than we think. 

Community Partnerships Build Career Paths

Destinations International’s Social Inclusion framework encourages destinations to engage with their communities. By fostering trust and working together to eliminate barriers to inclusion, destination organizations and their stakeholders can create thriving and welcoming environments that lead to economic growth. Through this lens, talent attraction and retention can be addressed by engaging with our communities. When destinations establish a trusted presence, they can highlight the importance of this industry and create career pathways for residents of all backgrounds and abilities.  

The 2024 Annual Convention served as a tangible and inspiring opportunity for Visit Tampa Bay (VTB) and the NAACP Hillsborough County Chapter. Through an existing strong relationship, VTB’s Chief Operating Officer, JoLynn Lokey and Hillsborough County Chapter President, Yvette Lewis connected with DI’s Sophia Hyder Hock to explore arrangements during the July event. Lewis welcomed the idea of bringing three high school students onsite, providing them with the opportunity to gain exposure to the industry.  

She appointed three rising seniors, Malachi Brown, Kaejah Evans, and Taleah Scott, to attend the Annual Convention. Each student was given a curated schedule based on their interests to shadow industry leaders, attend educational sessions, and expand their professional network. In two jam-packed days, Malachi, Kaejah, and Taleah explored the breadth of our industry, through marketing and creative lenses, event management, and technology. Their experiences were overwhelmingly positive: the students realized that tourism offers promising, professional career paths and above all is a welcoming, inclusive sector.  

In Their Own Words

Malachi Brown, Middleton High School 

"To start I just wanted to say thank you for even thinking about exposing high school students to this industry, it was not on my radar at all but now I can seriously see a future in this space. My first thought about the travel and tourism industry was a whole bunch of timeshares and hotel managers. Being at Destinations International showed me that there is an entire ecosystem of business that is behind the scenes. Whatever internship, schooling, or even career I will pursue can be translated to the travel and tourism industry, from sales, marketing, data analytics, and more can all be done here and that has truly inspired me. The main highlights were interacting with so many people that were genuinely interested in making sure I was welcomed and comfortable. Connecting with all these amazing professionals not only expanded my network but expanded my horizons by learning and listening to everyone’s insights. Special shout out to the team at Soliman Productions and Paradise Advertising & Marketing for letting a brother tag along for a couple of days.”  - Malachi Brown

Kaejah Evans, Blake High School 

"Destinations International’s Annual Convention was one of the best experiences I could’ve been a part of. I’m truly grateful to have been a part of the convention and met such amazing people from such diverse backgrounds. Before attending the convention, I had a very small amount of information and interest in the world of travel and tourism. After meeting so many people that are a part of this company showed me an even bigger and more in-depth understanding of how great working in this level of hospitality can benefit someone. I’ve learned about some programs and have been introduced to several internships that I’d enjoy taking part in once I graduate.” - Kaejah Evans

Taleah Scott, Sumner High School 

"I truly enjoyed my time interacting with people who are passionate about their careers. The main highlight of my time at Destination International's Convention was attending the breakout sessions of my interest. Not only did it make me feel in control of the steps I'm taking toward my future, but it also exposed me to different aspects of the travel and tourism industry. I originally had no connection to the field, so I wasn't sure what to expect. To my surprise, the travel and tourism industry makes great efforts to follow sustainable practices and be mindful of the communities they're affecting. They also created a space to discuss products that improve accessibility for some users. This made me feel more connected to the experience because it showcased purpose in the work being done here. Another highlight was getting to see people in their element. The travel and tourism industry has so many wonderful facets and the people exude a passion for their positions I haven't seen in most places of work. This experience taught me you can work hard and enjoy life. Not a single person I encountered seemed unhappy to be there. This inspired me to take charge and work hard now so I can set myself up for my future. I plan to get more acquainted with networking (as was suggested by one of the amazing women I was shadowing) so I can pursue a career in cybersecurity. I also now have an interest in taking part in internships to improve my academic and experiential arsenal.” - Taleah Scott

A Promising Path Forward

The experiences of Malachi, Kaejah, and Taleah underscore a crucial truth: our industry shines when we invest in the next generation and pursue a sense of belonging. By engaging local students and providing them with hands-on industry exposure, we can inspire and cultivate future tourism professionals. In turn, we can make strides in overcoming talent attraction and retention obstacles.

The 2024 DI Annual Convention shadow experience is just the beginning for Visit Tampa Bay and the NAACP Hillsborough County Chapter. Together, these organizations will continue to collaborate and provide students with education and mentorship. Their partnership reinforces the importance of building strong relationships between destination organizations and their communities.  

This shadowing initiative sets a powerful example for other destination organizations to follow. We encourage all industry leaders to consider how they can implement similar programs in their own communities. Start by reaching out to local schools, organizations, or industry partners to explore collaborative opportunities. Share your successes and learn from others. Together, we can break down barriers, enhance educational opportunities, and mentor young talent. Together, we can build a resilient, innovative, and inclusive industry that thrives on the collective strength of its people.

As we reflect on the success of this first shadow program, let us be reminded of the words that echoed throughout the 2024 DI Annual Convention: “I love this industry.” It is through our passion and commitment to inclusion that we will shape a bright future for the tourism industry and the communities we serve. 

About the Author

Ava Wells

Social Inclusion Manager
Destinations International

Ava Wells is the Social Inclusion Manager at Destinations International, working under the guidance of Chief Inclusion Officer, Sophia Hyder Hock. In this role, Ava spearheads the development and implementation of strategies that further the organization’s social inclusion goals. She expertly manages programs and fosters stakeholder engagement to enhance DI’s impact in this vital area.

With a rich background spanning over a decade in member and partner engagement, Ava possesses deep expertise in harnessing insights and building robust relationships to drive strategic transformations. Her experience includes seven years in the tech sector, where she focused on advancing workplace inclusion, equity, diversity, and enhancing employee engagement initiatives.

Ava’s professional journey began in the travel and tourism industry, where she spent three enriching years at the Nashville Convention & Visitors Corporation. She is excited about her return to this dynamic field, particularly driven by her passion for regenerative tourism, cultural vitality, and generating positive community impact.

A champion of collaboration and innovation, Ava values curiosity and the power of connection. Originally from Boston, she has embraced life in Montreal since 2018 with her Canadian spouse. In her leisure time, Ava enjoys cooking, running, and reading. She speaks French and maintains an active and travel-filled lifestyle. 

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This Wednesday! Tuition: Which Model Works Best for You?

What do you charge for your teaching? If you want to take a fresh look at your tuition model, join us on Wednesday for an online discussion about this most important subject.




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PBOC is expected to set the USD/CNY reference rate at 7.1944 – Reuters estimate

People's Bank of China USD/CNY reference rate is due around 0115 GMT.

The People's Bank of China (PBOC), China's central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a "band," around a central reference rate, or "midpoint." It's currently at +/- 2%.

How the process works:

  • Daily midpoint setting: Each morning, the PBOC sets a midpoint for the yuan against a basket of currencies, primarily the US dollar. The central bank takes into account factors such as market supply and demand, economic indicators, and international currency market fluctuations. The midpoint serves as a reference point for that day's trading.
  • The trading band: The PBOC allows the yuan to move within a specified range around the midpoint. The trading band is set at +/- 2%, meaning the yuan could appreciate or depreciate by a maximum of 2% from the midpoint during a single trading day. This range is subject to change by the PBOC based on economic conditions and policy objectives.
  • Intervention: If the yuan's value approaches the limit of the trading band or experiences excessive volatility, the PBOC may intervene in the foreign exchange market by buying or selling the yuan to stabilize its value. This helps maintain a controlled and gradual adjustment of the currency's value.

Earlier:

This article was written by Eamonn Sheridan at www.forexlive.com.




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PBOC sets USD/ CNY central rate at 7.1927 (vs. estimate at 7.1944)

The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.

  • USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
  • CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
  • A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.

Previous close was 7.2150

The rate today at 7.1927 is weakest since September 12 of 2023.

PBOC injects 125bn yuan via 7-day RR, sets rate at 1.5%

  • 18bn yuan mature today
  • net injection is 107bn yuan

*-*-

/*/*

This article was written by Eamonn Sheridan at www.forexlive.com.




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ECB Interest Rate Forecast: Deutsche Bank's 7 reasons for projecting a lower terminal rate

Deutsche Bank has revised its forecast for the European Central Bank’s (ECB) terminal rate, lowering its central-case projection from 2.25% to 1.50%. The bank now anticipates the ECB’s policy rate will dip slightly below the neutral rate by the end of 2025, rather than returning to neutral by mid-year as previously expected.

This shift in outlook is driven by several factors, including the potential for new tariffs from a Trump administration, which would likely impact trade, along with weaker macroeconomic performance in Europe and the increasing risk of inflation falling below target.

According to Deutsche Bank, the uncertainty surrounding these dynamics is considerable, especially given the unclear timing and effects of U.S. tariffs and potential European responses. Reflecting this uncertainty, the bank has outlined a broad target range of 1.00% to 1.75% for the ECB’s terminal rate.

Deutsche Bank notes that the terminal rate’s trajectory and ultimate level will depend on key influences such as:

  1. European fiscal policy,
  2. the economic health of Germany,
  3. developments in China,
  4. and fluctuations in oil prices.

The bank further suggests that the global economy may be entering a new phase, with Europe potentially experiencing increasingly divergent economic conditions compared to the U.S.

This article was written by Eamonn Sheridan at www.forexlive.com.




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PBOC is expected to set the USD/CNY reference rate at 7.2305 – Reuters estimate

People's Bank of China USD/CNY reference rate is due around 0115 GMT.

The People's Bank of China (PBOC), China's central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a "band," around a central reference rate, or "midpoint." It's currently at +/- 2%.

How the process works:

  • Daily midpoint setting: Each morning, the PBOC sets a midpoint for the yuan against a basket of currencies, primarily the US dollar. The central bank takes into account factors such as market supply and demand, economic indicators, and international currency market fluctuations. The midpoint serves as a reference point for that day's trading.
  • The trading band: The PBOC allows the yuan to move within a specified range around the midpoint. The trading band is set at +/- 2%, meaning the yuan could appreciate or depreciate by a maximum of 2% from the midpoint during a single trading day. This range is subject to change by the PBOC based on economic conditions and policy objectives.
  • Intervention: If the yuan's value approaches the limit of the trading band or experiences excessive volatility, the PBOC may intervene in the foreign exchange market by buying or selling the yuan to stabilize its value. This helps maintain a controlled and gradual adjustment of the currency's value.

Earlier re China:

This article was written by Eamonn Sheridan at www.forexlive.com.




est

PBOC sets USD/ CNY mid-point today at 7.1991 (vs. estimate at 7.2305)

The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.

  • USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
  • CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
  • A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.

Previous reference rate was 7.2355.

The setting at 7.1991, about 300-odd points lower than the modelled estimate is indicative of the PBoC pushing back against yuan weakness. AUD/USD has popped a little on the setting of a stronger than expected yuan.

PBOC injects 233bn yuan via 7-day RR, sets rate at 1.5%

  • 17bn yuan mature today
  • net injection is 216bn yuan

/*/*

This article was written by Eamonn Sheridan at www.forexlive.com.




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Crude oil is down $-2.20 or -3.12% at $68.20. Lowest level since October 30

The price of crude oil is trading down $-2.20 or -3.12% at $68.20. That's the lowest level since October 30.

The price reached a peak on Thursday at $72.84. That the price briefly above its 38.2% retracement of the move down from the July high at $72.59. However on Friday, the price fell below its 100-hour moving average near $71.50 and in trading today, fell and stayed below its 200-hour moving average at $70.52. It would take a move back above the 200-hour moving average to hurt the bearish bias.

On the downside, the price is approaching a swing low going back to October 18 at $68.13. Move below that level and traders will start to look toward a rising trendline near $68.10. The low price from October 29 comes near $66.69.

Meanwhile, gasoline prices in the US are down -11.36% on the year at $3.19 (average price for all grades of gasoline). Prior to Covid, the price was around $2.78. The low at the depth of Covid reached $1.87. The current level is near the lows from the end of 2023 and start of 2024 near $3.17.

Retail Gasoline prices for all grades of gasoline

Last week, the preliminary Michigan consumer sentiment index rose to 73.0. With gas prices continuing to move lower and the Trump victory, what will that do to sentiment? The high for the Biden administration reached 86.5 with the low at 50.2 in June 2022. That corresponded with the high in gasoline prices.

This article was written by Greg Michalowski at www.forexlive.com.




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USDCAD moves lower after testing ceiling area between 1.3945 and 1.3958

The USDCAD has backed backs off from ceiling area again. That area comes between 1.3945 and 1.3958.

The subsequent move to the downside has the pair heading toward 200 and 100-hour MA support targets at 1.39054 and 1.3898 respectively (green and blue lines on the chart below). A move below that level would target the rising 100 bar moving average on the 4-hour chart at 1.38784. Last week the price fell below that moving average line on two separate occasions only to fail and bounce back to the upside.

If the price were to get above the ceiling area, the 2022 high price comes in at 1.3977. Get above that and the price is trading at the highest level since 2020.

USDCAD Summary

The USDCAD is trending upward, approaching a key swing area between 1.3945-1.39581.

Key Levels:

Resistance

  • 1.3945 to 1.3958. Swing highs over the last 7 trading days (from swing highs from Oct 31, Nov 1, 6, and 7.

  • 1.3977 (2022 high)

Support

  • 1.3905 - 200-hour MA)

  • 1.3898 Rising 100-hour MA

Outlook:

  • Break above 1.3977 targets highest level since 2020.

  • Move below 1.3905 and rising 100-hour MA favors sellers.

  • Otherwise, buyers maintain control, pushing for new highs.

This article was written by Greg Michalowski at www.forexlive.com.




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GBPUSD Technical Analysis – The US Dollar restarted its run

Fundamental Overview

The puzzling weakness in the US Dollar following Trump’s victory looks more and more like it was just a “sell the fact” reaction. The greenback is now back in the driving seat, and we might also be seeing some pre-positioning into a potentially hot US CPI report tomorrow.

At the latest Fed’s decision, Fed Chair Powell said that they expect bumps on inflation and that one or two bad data months on inflation won’t change the process. This keeps the 25 bps cut in December in place even if we get higher inflation readings.

The market though is forward-looking, and the rise in Treasury yields showed that the market sees risks to the inflation outlook. Moreover, the red sweep could increase those fears if the progress on inflation stalls, or worse, reverses.

On the GBP side, this morning we got the UK labour market report and although the data was mostly mixed, it leant more on the dovish side. Overall though, it didn’t change anything for the market or the BoE.

GBPUSD Technical Analysis – Daily Timeframe

On the daily chart, we can see that GBPUSD broke through the support zone around the 1.2840 level and extended the drop as more sellers piled in. The natural target should be the swing low at 1.2665 level. That’s where we can expect the buyers to step in with a defined risk below the level to position for a rally back into the 1.28 handle.

GBPUSD Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see more clearly the break of the support which was defining the range between the 1.2840 support and the 1.3040 resistance. If the price retests the support now turned resistance, we can expect the sellers to step in with a defined risk above the level to position for a drop into the 1.2665 level next. The buyers, on the other hand, will want to see the price breaking higher to position for a rally back into the 1.3040 resistance.

GBPUSD Technical Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we have a minor downward trendline defining the current bearish momentum. The sellers will likely keep on leaning on it to position for new lows, while the buyers will look for a break higher to pile in for a rally into new highs. The red lines define the average daily range for today.

Upcoming Catalysts

This week is a bit empty on the data front with the most important releases scheduled for the latter part of the week. Tomorrow, we have the US CPI report. On Thursday, we get the latest US Jobless Claims figures. On Friday, we conclude the week with the US Retail Sales data.

This article was written by Giuseppe Dellamotta at www.forexlive.com.




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US 10 year yield looks to close at the highest level since July 1

The high yield close for the 10-year note last week reached 4.433%. The current yield is currently at 4.4315%, up 12.3 basis points. A close above would be the highest close going back to July 1, 2024 when the close came in at 4.465%.

This article was written by Greg Michalowski at www.forexlive.com.