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Brand USA

Ingredients of Successful Public Private Partnerships Promoting Major Tourist Destinations

March 4, 2015Berlin

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Brand USA: The Destination Marketing Organization for the USA

● Public-Private Partnership:– Created by the Travel Promotion Act

– Signed into law in 2010

● Mission:– Increase international visitation to the USA in order to fuel the U.S.

economy and enhance the image of the United States worldwide

– Communicate U.S. entry/exit policies and procedures to worldwide travelers

● Partnerships:– 475 U.S. destinations, global tour operators, retailers

– Consumer marketing, trade outreach, co-op marketing

– Promote the entirety of the USA (all 50 states, the District of Columbia, and the 5 U.S. territories)

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The United States’ share of international arrivals dropped 37% (from 17% in 2000 to 12.4% in 2010)

Between 2000 and 2010, global travel grew by more than 60 million annually (yet international visitation to the USA was flat)

Source: U.S. Travel Association

37%

60Million

78 million lost visitors$606 billion lost spending

$37 billion lost tax revenue467,000 lost jobs

The cost of the United States’ loss of global market share?

The Lost Decade

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Travel Powers the Economy

#1 Services Export • 70 million international visitors (spending $181 billion)• 8.6 percent of total U.S. exports

(the highest since 2001 when it was 8.9 percent)• Supports 1.8 million jobs (directly and indirectly)• Goal: 100 million visitors and $250 billion by 2021

2.8% of GDP• $2 trillion in travel and tourism total sales• $855.4 billion direct plus $1.1 trillion through other industries• $129 billion in federal, state, and local tax revenue• International travel and tourism spending growing nearly three

times faster than overall GDP growth

14.6 Million Jobs Supported by Travel (1 in 8)• 7.7 million direct plus 6.9 million in other industries• Top 10 employer in 48 states and DC

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Industry Defining MomentsMarch 2010 January 2012

May 2014

National Travel and Tourism Strategy Signing the Travel Promotion Act into Law

Presidential Memorandum on Travel and Tourism

December 2014Reauthorization of Federal Funding for Brand USA

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Leadership Roles in the U.S. Travel Industry

Department of CommerceTravel and Tourism Advisory Board

Advise and provide policy recommendations to the

Secretary of Commerce on issues affecting the U.S. travel industry

ADVISE

ADVOCATE● As the leading voice of the U.S.

travel industry, increase travel to and within the U.S.

● Advocate for and advance pro-travel policies and remove travel barriers

● Provide authoritative research and networking opportunities

● Communicate the positive widespread impact of travel to policy makers and the media

● Leverage the collective strength of everyone who benefits from travel to grow their business beyond what they can do individually

PROMOTE● Lead the nation’s global

marketing effort to increase inbound travel to the U.S.

● Enhance awareness and the image of the USA as a diverse, exciting, and premier travel destination

● Create programs and platforms that add and create value for partners and support the National Travel and Tourism Strategy

● Work with the Federal agencies to develop programs to communicate U.S. entry and security processes and create a welcoming experience for international tourists

Brand USA Travel & Tourism Industry

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Reclaiming Lost Market Share

2010: Launch of Brand USA

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A Powerful Force in U.S. Economic Growth

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8 Principles for Successful Public-Private Partnerships

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FY14 Highlights

● Partnerships and Funding: Strong and Growing– 475 partners through 2014 (up from 89 in 2012 and 339 in 2013)– Maximizing the match—brought FY14 to a strong close with $130 million in contributions

and a 94% partner program retention rate

● Consumer Campaign: Expanding– Consumer campaign in 10 markets—expanding to 14 in FY15– Digital and social footprint in 11 languages

● Programs and Platforms: Increasing and Delivering Value– Research significantly expanded to include market profiles, competitive set analysis,

predictive, and performance tracking– 100 new co-op platforms with more than 200 opportunities (and growing)—with 85%

directly targeting the consumer– Global PR has more than doubled in reach

● Trade Outreach: Reaching Influential Travel Trade– International representation in 20 markets—expanding to 25 in FY15– USA pavilions at 24 international shows in FY14—increasing to 30 or more in FY15– Doubling the total number of events, sales missions, road shows,

and MegaFams in FY15– Expanding online training platform to 5 additional markets in FY15

Objectives & Goals

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FY 15 Objectives

#1: Increase international visitation, spend and market share for the USA

#2: Maximize the return on investment of Brand USA’s marketing initiatives

#3: Support the objectives of the National Travel & Tourism Strategy(100 million visitors in one year to the USA by 2021)

#4: Deliver the high value programs and platforms to the industry that generatethe highest level of industry support

#5: Build and maintain engagement, trust, and advocacy for Brand USA.

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Goals● Generate incremental visitation of 1.3 million and incremental

spend of $4 billion (results to be reported in March 2016)

● Support the United States’ increase in global market share from 13.2% to 13.4%

● Achieve a Return on Marketing Investment of at least 20:1

● Raise $47 million in cash and $70 million in in-kind

● Maintain a 94% partner program retention rate

● Maintain 100% compliance with policies and procedures

● Keep administrative costs to 10% or lower

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Strategies

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FY15 Strategies● Build and Distribute Dynamic Content

– Engage and inspire travelers through storytelling that emphasizes experience and provides a call to action/booking opportunities

– Great Outdoors and Urban Excitement (with a focus on culinary)– Culinary, Retail, Ski/Golf, Cruising, Road Trips, Attractions, Hotels

● Expand Market Presence– Right Markets, Right Time

● Build and Leverage Industry Collaboration– Harness the collective force of our partners to drive demand

● Create Value– Create strong calls to action and booking opportunities through co-op

marketing, trade outreach, and public relations

● Market the Welcome– Work with our federal agency and destination partners to communicate ease of

entry and enhance the welcoming experience

● Drive Results– Make market-driven decisions and track results based on sound research

and analytics in order to increase incremental visitation, spend, and global market share

– Operate efficiently and effectively

Build Dynamic Content: Engage and Inspire Travelers through Storytelling

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Great Outdoors

● The United States of Great Outdoors Content Hub and Social Platform- Fall 2014

● Giant Screen Film Launch September 2015

● Film premiere events for consumer and trade summer/fall 2015

● Multi-channel consumer and trade advertising throughout 2015

● Media spin-offs –TV series with Travel Channel summer/fall 2015

2015-16 Campaign

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Urban Excitement

• Culinary Guide Phase 2 with in-country promotions

• United States of…. Content Hub + Social platform

• Multi-Channel Marketing Campaign in Canada, UK and Japan

• International Food Network 30 chefs, 30 days vignettes air globally in July 2015

• Travel Channel Jeni & Olli American Adventures expanded episodes

• Expo Milano 2015 May1-Oct 31 25 to 30 million global travelers

Great American Food Stories

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Discover America with Peter Greenberg● Produced and hosted by Peter Greenberg, multi-

Emmy Award-winning producer and the Travel Editor for CBS News

● Modeled after Peter’s Royal Tour series for public television

– King of Jordan– President of Mexico– Prime Minister of New Zealand– Prime Minister of Israel

● In Discover America, Peter will be guided by America’s own set of royalty

– Global stars of film, television, music and sports, who will give Peter the “royal tour” of their favorite places, journeys and experiences within the states where they were born, raised or live

● Distribution via Brand USA’s international media partners and other platforms

● Initial season comprised of five 30-minute episodes, each devoted to a single state.

– Kentucky– Alabama– South Dakota– Texas– Arizona

Market Presence

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● Australia● Brazil● Canada● Chile● China● France● Germany

● India● Japan● South Korea● Mexico● New Zealand● Taiwan● UK

Consumer Marketing Plan – Expanding to 14 markets that generate 81% of inbound travel to the USA

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International Representation Expanding to 25 Markets

2424

● Australia● Brazil● Canada● Chile● China● France● Germany

● India● Japan● South Korea● Mexico● Taiwan● UK

● Austria● Hong Kong● Ireland● Italy● New Zealand● Russia● Switzerland● UAE

● Argentina● Belgium● Belize● Costa Rica● El Salvador● Guatemala● Honduras● Netherlands

● Nicaragua● Singapore● Spain● Sweden

Marketing Initiatives in 33 markets – combination of consumer campaign, co-op, or trade reaching more than 90% of inbound travel to the USA

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Key Markets: China

Novice Traveler

Packed, multi-city itineraries

Guided group tour

Midscale/budget hotel

Sightseeing/shopping focus

Experienced Traveler

FIT (independent)

Escape urban intensity

Experiential

Business/leisure mix

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Key Travel Markets: Europe

Steady

UK

Germany

Recovery

France

Italy

Spain

Sustained Strength

Sweden

Norway

Denmark

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Key Travel Markets: Neighbors

Canada

Defend US market share

Prime for “off the beaten path”

Coop centric

Mexico

Dynamic growth pattern

Dual approach –New/Experienced

Travelers

Industry Collaboration and Value Creation

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Three Paths to Value

Brand USA OriginalsBrand USA Originals

Affinity ProgramsAffinity Programs

Market SpecificMarket Specific

● Deliver compelling content and valuable activation● Leverage scale for efficiency● Foster partnership and collaboration● Create unique opportunities

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Launched largest multi-destination familiarization trip program in the USA in May 2013

• 93 Agents, 7 Itineraries

• First of its kind for the USA (multi-itinerary/simultaneous familiarization trip)

• Airline Partners: British Airways, Lufthansa, American Airlines, United Airlines, Qantas, Hawaiian Airlines

• Serves to inspire and engage agents—and keep the USA Top of Mind

• State/Regional DMOs facilitate itineraries and access to attractions and experiences

• Provides exposure for partners within the MegaFam advertising campaign and related promotions

MegaFams

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Brand USA Industry Roundtables

● Provide Feedback, Insight and Strategic Direction

● Bi- Annual Meetings- January and at IPW

● 15 Members Each, based on Established Criteria

● Diverse Representation across Industry SegmentsCMO Roundtable

Partner Programs Roundtable

Market Development Roundtable

Market the Welcome

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Market the Welcome

● Arrival Hall Package for Airports, Embassies, and Destinations– Out of Home Elements– Marketing and Entry Process

Materials– Video Components distributed via:

• International arrival halls

• Partner websites and airport websites

• Embassy websites; ESTA website; other Federal websites abroad

• Consular areas of embassies

• In-flight video

• DiscoverAmerica.com and TheBrandUSA.com

Drive Results

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A Powerful Force in U.S. Economic Growth

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Research & Analytics: Ongoing Activities

• Annual ROI study• Campaign results, website/social reporting

Performance Metrics

• Using projections and trend analysis to support budget allocation

Market and Media Prioritization

• Primary consumer studies in 12 markets• Analysis of acquired data and intelligence (TDM from Tourism Economics,

Comscore, MIDT, etc.)

Market Intelligence

• Post wave campaigns• Ongoing creative testing

Ad and Creative Testing

• Partner surveys and roundtable meetings

Partner Satisfaction and Intelligence

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CONTRIBUTE

Support the exponential

power of our global campaign

with a cash or in-kind

contribution

CO-OP

Leverage co-marketing

campaigns with

Brand USA

CONNECT

Connect with our

international representation network—the largest in the

industry

COLLABORATE

Collaborate with us on research initiatives or create

customized programs

Partnerships = Success

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Thank You!

Travel Industry Information@BrandUSA on Twitter

TheBrandUSA.com

Consumer Information@DiscoverAmerica on Twitter

Facebook.com/DiscoverAmericaDiscoverAmerica.com