Strategic Decision-Making in Digital Transformation: Tourism Lethbridge

All figures in Canadian dollars unless otherwise noted.

Dominika Wojcik, Senior Director of Communications at Tourism Lethbridge, Lethbridge, Alberta, Canada, faced a strategic crossroads in January 2023 as she needed to decide whether Tourism Lethbridge should continue using the third-party mobile application to attract visitors to Lethbridge or invest in developing its own custom proprietary software? Each option had implications, from financial stability, risk, investment and technological independence to local stakeholder engagement. Wojcik knew her recommendation would define how Tourism Lethbridge engaged visitors digitally, promoted local businesses, and remained competitive year-round. She had reviewed the pros and cons yet was unsure which option was the best choice to support Tourism Lethbridge in achieving its mission to increase tourism in Lethbridge and help cultivate a prosperous tourism sector.

As the Senior Director of Communications, Wojcik had observed Tourism Lethbridge’s success in attracting visitors using the third-party mobile app—an engaging, gamified solution highlighting local attractions and incentivizing merchant participation. However, Wojcik explained, “Initial enthusiasm gave way to serious issues such as rising subscription fees, limited customization, inadequate control over user analytics, and growing dissatisfaction among local businesses.”

Background and Industry Context

Existing Digital Efforts in Tourism Organizations

Across Canada and globally, destination management organizations (DMOs) had increasingly turned to digital tourism applications to improve visitor experiences.^[1] These tools provided real-time event updates and personalized itineraries, allowing tourists to plan their trips more efficiently. Many platforms incorporated gamification features, engaging users through challenges and rewards that incentivized exploration.^[2] AI-powered recommendation systems tailored suggestions based on user preferences, enhancing the relevance of available attractions and services. Additionally, integrated data analytics enabled DMOs to track visitor behaviours, assess engagement levels, and refine marketing strategies to attract and retain tourists more effectively.^[3]

Some DMOs had successfully launched proprietary digital solutions, allowing them to retain data control, customize features, and avoid high third-party costs.^[4] However, others relied on third-party applications, which often resulted in limited customization, high subscription fees, and data ownership challenges.

Tourism Lethbridge

Tourism Lethbridge was created in 2016 as the official Destination Management Organization for Lethbridge, Alberta, Canada and was incorporated under the Societies Act of Alberta in 2018 as a non-profit organization, funded by the City of Lethbridge, provincial and federal government grants and by partnerships with community organizations. The organization promoted tourism to Southern Alberta, highlighting Lethbridge’s cultural heritage, diverse culinary scene, and numerous outdoor activities. By positioning Lethbridge as a prime travel destination, Tourism Lethbridge aimed to enhance the city’s appeal and visitor experience through strategic initiatives and partnerships.

Tourism Lethbridge developed its vision, mission, and core value statements.^[5] Tourism Lethbridge’s vision was “To be the tourism leader in Lethbridge showcasing our unique sense of spaces, culture and people.”  The mission as a non-profit organization was “to increase visitation and Lethbridge’s tourism market share, grow Lethbridge’s economy and showcase Lethbridge and our region across the nation.”  Tourism Lethbridge’s core values focused on (i) celebrating a love of Lethbridge’s arts, culture, sports and history, (ii) developing partnerships, and (iii) cultivating a prosperous tourism sector.

Tourism Lethbridge comprised seven staff members, including a CEO, three directors for communications, brand development, and opportunity, and two support staff for digital and website content development, and one in administration.

Dominika Wojcik, Senior Director of Communications

Dominika Wojcik, Senior Director of Communications at Tourism Lethbridge, reported directly to the CEO of Lethbridge Tourism. Wojcik proclaimed, “I am deeply committed to community engagement and enhancing tourism in Lethbridge.”

Wojcik had a background in marketing from the University of Lethbridge and 10 years of previous event and project management experience at the Chamber of Commerce and the University of Lethbridge.

Global Tourism Trends

Tourism had long been a significant driver of global economic growth. In 2023 alone, the industry contributed approximately USD $9.5 trillion to the global economy, accounting for 9.2% of global GDP.^[6] This robust recovery following pandemic-related disruptions indicated a promising trajectory, with projections suggesting that global tourism could reach USD $15.5 trillion by 2033. This growth was driven by increasing international travel, rapid digital innovation, and changing consumer behaviours, with travellers increasingly expecting personalized, digitally enhanced experiences.

Digital transformation became central to this evolution, reshaping how tourists planned, navigated, and experienced destinations. Mobile apps, artificial intelligence, data analytics, and gamification transformed the tourism experience. Personalized recommendations, real-time updates, and digital interaction became standard expectations rather than novel innovations. DMOs worldwide increasingly adopted sophisticated digital tools to stay competitive and relevant, significantly enhancing visitor satisfaction and driving sustained economic growth.

Canadian and Lethbridge Tourism Market

Canada’s tourism industry mirrored global trends, playing an essential role in national economic health. In 2023, the industry contributed $43.6 billion to Canada’s GDP, generating $105 billion in total revenues, with domestic tourism comprising $82 billion of this amount.^[7] Moreover, the tourism sector sustained one in ten Canadian jobs, and continued expanding, projecting annual international arrivals to reach 23.5 million by 2025, with China anticipated to emerge as Canada’s largest overseas tourism market by 2030.

Despite consistent national growth, the Canadian tourism industry faced persistent challenges, such as seasonal fluctuations, limited funding, and uneven adoption of digital technologies at the local level. Small and mid-sized cities, in particular, struggled to consistently attract visitors year-round due to constrained resources and insufficient technological infrastructure.^[8]

The Lethbridge Tourism Context

Lethbridge, a mid-sized city in southern Alberta, served as a gateway to multiple renowned attractions that drew significant tourist traffic, including the Rocky Mountains, the Badlands, and various Indigenous cultural sites. The importance of tourism to Lethbridge’s economy was underscored by the impressive visitor spending data, which amounted to approximately $57.8 million in 2022. This level of economic contribution aligned with broader trends seen across various locations emphasized the role of tourism in augmenting local economies. Research indicated that the economic impact of tourism could be quantified effectively through models that considered visitor numbers, spending averages, and multiplier effects, reinforcing the relevance of visitor spending as a critical economic driver.^[9]

High-profile events also contributed significantly to Lethbridge’s tourism economy. For instance, the Tim Hortons Brier curling championship alone generated an impressive $10.8 million by attracting over 204,000 visitors to the city. The presence of such sporting events demonstrated a pattern identified in tourism studies where large-scale events served not only to boost immediate economic activity but also enhanced the visibility of the host city, potentially driving future tourism. Participating in and hosting these events could create lasting visitor interest, leading to repeat tourism and comprehensive community engagement.^[10]

Yet, Tourism Lethbridge faced challenges common to smaller DMOs: seasonal fluctuations led to revenue instability and limited budgets constrained ambitious projects. Wojcik explained, “Tourism Lethbridge has historically lagged behind others in adopting advanced digital technologies, and as a result, although local events drove significant visitor numbers, the city struggled to maintain consistent year-round tourism engagement.”

The Digital Dilemma

Recognizing these challenges, Tourism Lethbridge implemented an off-the-shelf, third-party mobile app solution in 2022. This app aimed to improve visitor engagement through gamification, incentives, and merchant partnerships. “While initially successful,” Wojcik commented, “the platform quickly showed limitations in flexibility, control, and escalating subscription costs.” Wojcik added, “Local businesses struggled with usability, felt disconnected from decision-making, and grew skeptical about the vendor’s interests.” Limited access to visitor analytics further hindered Tourism Lethbridge’s strategic planning and marketing effectiveness.

By early 2023, these shortcomings forced Tourism Lethbridge to reconsider the long-term viability of the third-party solution. Wojcik observed, “We wondered if we should persist with a familiar yet flawed software solution, or undertake the risky but potentially rewarding path of developing proprietary software?” The future of Tourism Lethbridge’s digital transformation hung in the balance.

The Digital Strategy of Tourism Lethbridge

Recognizing that digital engagement was increasingly crucial in the tourism industry, the organization adopted a third-party mobile app that allowed visitors to discover local businesses, explore attractions, and participate in gamified experiences, such as earning points at participating merchant locations. At first, this approach appeared ideal, aligning neatly with industry trends and fulfilling Tourism Lethbridge’s goal of encouraging visitor exploration through interactive, digitally driven experiences.

However, significant limitations became apparent as the organization expanded the app’s use. Wojcik explained, “Subscription costs rapidly increased, and every new customization or additional feature resulted in higher expenses, creating sustainability challenges.” Merchants and local stakeholders expressed dissatisfaction with the platform’s usability and were uneasy with providing their data to an external provider. Wojcik explained, “We had a really hard time getting buy-in from our merchants… They didn’t feel comfortable giving their information to a third-party app when they didn’t fully understand what it was. The backend management system was complicated, and merchant communication issues arose frequently. Emails from the third-party provider were often flagged as spam, and data ownership was limited, preventing Tourism Lethbridge from accessing comprehensive analytics required for effective strategic planning.”

These cumulative issues prompted Tourism Lethbridge to reconsider the sustainability of relying on external digital platforms. Tourism Lethbridge needed a flexible, cost-efficient, and secure solution that provided them with control over their data (see Exhibit 1 – A Timeline of Events).

The Decision-Making Process

The decision confronting Tourism Lethbridge required careful consideration of multiple criteria, as switching systems was a major project for the organization. Wojcik acknowledged the complexities involved in the software selection decision confronting Tourism Lethbridge: “Initially, when we found the app, we thought it was fantastic. It did everything we wanted it to do. But once we got into it, we learned the hard way that there were so many parts that we could not control. And the more we wanted to control, the more it was going to cost us.”

Wojcik and her team evaluated two options: (i) continuing with the third-party app or (ii) investing in proprietary software. They conducted a detailed analysis comparing the pros and cons and strategic benefits of each solution. Cost efficiency was a critical concern; the existing third-party app had become increasingly costly due to a subscription-based fee structure with premium charges for each additional feature. Wojcik noted, “We quickly realized there were risks … it was going to cost a lot of money!”

The proprietary software option, although requiring a significant upfront investment, promised to substantially reduce long-term operational expenses. It would eliminate recurring subscription fees and allow ongoing customization without additional incremental costs. Wojcik explained: “It might be better for us to have full control…and be able to develop it in a way that we can say, ‘Oh, this is a great idea,’ versus having to wait for them [the third-party software firm] to think of that idea.”

Though the proprietary software development option required more upfront investment, developing a proprietary app in-house aligned with Tourism Lethbridge’s core values of community engagement and local collaboration as the firm could engage local resources to assist in the process. Wojcik recognized an opportunity to “leverage local expertise by partnering with the University of Lethbridge, tapping into student talent and reinforcing community ties.” She emphasized the community-driven aspect, stating, “Giving students an experience, giving them opportunities so they can hopefully stay in Lethbridge and fall in love with Lethbridge…that just wins for everybody.”

Wojcik explained that while the “third-party app offered immediate convenience and support, it lacked the longer-term sustainability, customization, and stakeholder buy-in opportunities that the customized proprietary platform could potentially provide, which was important to the organization’s digital transformation objectives.”

Proprietary Software Considerations

Tourism Lethbridge determined that developing a proprietary digital platform would require a structured approach based upon three key areas: collaborating with local institutions to engage needed resources, adopting agile development methodologies to develop in a user-focused and incremental manner, and implementing a targeted marketing strategy to promote the systems’ use.

Collaboration with the locally based University of Lethbridge was identified indicating the University could play a crucial role in securing resources and expertise and reducing development costs using leveraged funding while providing valuable learning opportunities for students. Engaging university faculty and students would allow for innovation-driven development, ensuring that the platform aligned with both industry best practices and local tourism needs.

To mitigate risks and enhance resource efficiency, Tourism Lethbridge determined that adopting an agile development approach was key. This methodology would enable the small development team to release an initial version of the application, gather real-time feedback, and refine the platform through continuous iterations over time. This feedback loop would allow Tourism Lethbridge to respond to user preferences and emerging industry trends and involve local partners in the process.

Tourism Lethbridge aimed to partner with regional stakeholders to ensure widespread promotion, allocating funds specifically for digital outreach. “With the current third-party app, most of the money went into development, and marketing got lost in translation,” Wojcik noted. “We want to work with a regional partner who can put significant funding toward promoting the app, conduct ad campaigns, motivate social media engagement and influencer collaborations to generate visibility.” Additionally, community partnerships would ensure that local businesses actively participated in promoting the app, helping to drive organic adoption and long-term engagement. This multi-faceted approach would help build a scalable and sustainable digital platform to meet the needs of visitors while strengthening local partnerships.

Going Forward

The decision whether to develop proprietary software or continue to invest and enhance the existing third-party software solution for Tourism Lethbridge was not solely based upon technology but was also about how to create a long-term strategic asset that supported economic growth in the region. Wojcik knew her recommendation would define how Tourism Lethbridge engaged visitors digitally, promoted local businesses, and remained competitive year-round. Which option was the best overall choice to meet Tourism Lethbridge’s needs to achieve its mission to increase tourism in Lethbridge and help cultivate a prosperous tourism sector?