december 9, 2014 acvb board meeting
DESCRIPTION
ÂTRANSCRIPT
ATLANTA OCCUPANCY
October 2014 YTD
Occupancy
2013 2014
ACVB Tax Revenue
District
68.7% 73.0%
Hotels w/500+ rooms 66.6% 72.2%
Hotels within 1-mile
radius of GWCC
66.1% 71.0%
Metro Atlanta 64.5% 70.0%
Source: STR
OCTOBER 2014
KEY SALES ACTIVITESCurrently through July we are at 94.2% of our room night goal and 114%
of our lead goal
Demand share growth (October)+.18 (5.56%) in the top 25 markets and
+.24 (8.78%) in the top 15
Direct Sales Events
• American Bus St. Louis
• PCMA Chicago
• RCMA Birmingham
• Experient Annual Meeting Anaheim
• Travel South Shreveport
• Destination Showcase Washington
Additional Rooms 2,030
Grand Total 95,324
Note: These numbers differ slightly from the Productivity Report due changes in room blocks and distribution of booking credit.
NOVEMBER 2014
BOOKINGS
2014 YTD
Additional Rooms 127,334
Grand Total 1,366,628
MISSION
To sell and market metro Atlanta and Georgiaglobally as the premier conventions, meetings and
tourism destination in the regional, national and
international marketplace and favorably impact the
Atlanta economy through conventions and tourism.
2014 HIGHLIGHTS2013
Goal Estimated % of Goal Actual
Total room nights 1,620,000 1,650,000 102% 1,570,550
City wide room nights 1,200,000 1,250,000 104% 1,162,198
# of major citywides 20 20 100% 18
> 5000 peak nights
3 year running average
Room nights for 2,500 peak+ 925,000 930,000 101% 748,681
Leads
Total # of Leads 4,535 4,525 100% 4,402
# of city-wide leads 520 550 106% 578
Attendance goal for major 100% 108% 108% 111%
city wides
2014 HIGHLIGHTS
Continued productivity growth from Group Sales and Convention Services
effortso Group sales lead volume up 12% over goal
o Projected year end room night bookings to exceed 100% of goal
o Booked 15 new business opportunities (not in Atlanta for >5 years) representing
190,240 room nights
o Enhanced sales efforts with major third party distribution channels resulting in a
30% increase in hotel room nights and 1% market share growth
o 28 of 30 conventions have exceeded their attendance goals YTD by 8%
o Maintained TAP report pace at 109%
16 confirmed new business opportunities from hosting ASAE in August 2013
representing 230,253 room nights
2014 HIGHLIGHTS
Launched new responsive design website (Atlanta.net)
Strong growth and focusing of marketing initiatives
o Increased web traffic by 5% year over year
o Increased our social media reach by 189% year to date
Significantly enhanced the Sales presentation with video and bid book
process
Won a Platinum Adrian award for the ATLFiles Meeting Planner video
campaign
Successfully executed 4 consumer co-op campaigns integrating radio, TV,
social media, and digital for summer, Big Boo, Buckhead, and holiday,
meeting or exceeding goals
Expanded successful I Am ATL campaign to consumer markets
Developed 5 in-language marketing videos for International in partnership with
BrandUSA and Georgia
Developed a suite of attendance building videos to support customers
promoting their meetings
CONT.
2014 HIGHLIGHTS
*Continued positive momentum with visitor metrics from 2013 in City of
Atlanta:
o Occupancy up 6.7% from 2013 to 72.6%
o REVPAR up 10% from 2013
o Demand up 6.9% from 2013
*Metro market share of demand in top 25 destinations up 4% to 5.57%
from 5.38%
CONT.
* YOY through 09/30/2014
2015 GOALS
Increase room night bookings and maximize 1% Convention Marketing Fundo Room nights:
•1,225,000 room night goal for trade show sales
•420,000 room night goal for in-house sales
o 3-year average of major citywide conventions booked/events (5,000 peak nights and
above) to continue at 20
o 925,000 room nights booked for 2,500 peak and above
o Leads to increase by 3% over year-end actual
Achieve 100 percent attendance goal for major citywide conventions
Increase visibility of Atlanta as one of the top U.S. meeting and travel
destinations
Maintain atlanta.net as the premier hospitality online marketing platform
Continue to position ACVB as an industry expert nationally and as the singular
voice of hospitality in Atlanta
New or significant ramp up in focus
Maximize opportunity with hosting TSNN (Trade Show News Network) Awards in
Atlanta 50 of top US trade shows are recognized for their significant growth in exhibit space and
attendance
High visibility to the top 250 trade shows in the US
Promote a Future Vision of Atlanta during our Update presentations throughout the
year Continue DC and Chicago Updates
New Updates in Northeast and West Coast markets
Conduct market updates to major hotel brand national sales offices
Identify opportunities within the emerging “Independent Show Organizer” (for-profit)
market
Full integration of Online bid books
Further integration of GWCC and ACVB CRM systems for real-time data and revenue
optimization
Revamp sales programs to maximize exposure
Optimize enhanced ASAE partnership directed at key decision makers
Further optimization of in-house sales efforts and small meetings
Investigate opportunities with Delta on HUB city partnership focusing on the meetings
and convention market
Launch new, scalable, and compelling minisites to reach all non city-wide groups
Increase room night bookings and maximize
1% Convention Marketing Fund
Continue or enhance focus from prior year
Host four meeting planner FAM tours, totaling 100 participants
Attend one major prospect’s event per quarter
Quarterly regional sales calls by each manager
Identify 25 trade shows not considering Atlanta and attend their convention
Continue efforts in the medical, manufacturing, construction, financial, energy
and education industries to support the sales team’s emerging industries
strategy
Host 25 FAM trips for international tour operators, totaling perspective clients
Participate in 70 industry events and trade shows to highlight Atlanta as a
premier meeting and convention destination
Further enhance our partnership with the major third party partners and
monitor production quarterly
Continue to optimize Atlanta’s destination advertising campaign targeted to
meeting planners to achieve maximum reach and impact
Increase room night bookings and maximize 1%
Convention Marketing Fund
New or significant ramp up in focus Work with convention planners to maximize destination marketing opportunities and utilization of attendance
building enhanced services offerings Coordinate with PR on Media FAMs for top city-wide groups
Coordinate hosted events/exhibitor FAMs for top city-wide groups
Launch new attendance building video with customization for top city-wide groups
Redesign international websites to provide international attendees relevant destination content
Continue coordination of attendance building enhanced services: website, e-newsletters, integrated destination
content with housing company, customized collateral/content, videos and etc.
Implement supplier road show (UP NEXT) to highlight Atlanta’s offerings for events and services
Continue or enhance focus from prior year Ensure ACVB efforts are aligned with clients’ goals for major groups
Continue targeting attendees with destination content through social media channels
Continue exploration of most effective manner to facilitate increased international meeting attendance
Develop integrated branding mini-sites, providing online attendance-building marketing for all full service city-
wide groups
Attend 11 customer events to promote Atlanta for their 2016 convention
Achieve 100% attendance goal for major citywide
conventions
New or significant ramp up in focus
Provide Sales with enhanced collateral and tools
o Print pieces and trade show booths
Maximize regional partnerships/alliances focusing on international visitation
Expand leisure marketing of the I Am ATL destination awareness campaign, and
evolve the meeting planner campaign
Launch a social media influencer FAM/Conference
Redesign layout and upgrade content of AtlantaNow visitor magazine with JV
partner
Continue or enhance focus from prior year
Enhance the media buying strategy to more effectively span digital and social
channels to reach the target audiences
Extend partnership approach with EventSphere to other Housing companies to
influence attendance of midsize groups
Continue integration of brand messaging across all communication channels
Integrate storytelling approach to evolve brand creative and messaging for richer
destination experiences
Leverage new and emerging product, existing assets, industry research and current
news to drive continuous editorial destination coverage.
Continue with refreshed summer, Halloween, and holiday co-op campaigns
Curate weekend getaway experience packages for target audience
Increase visibility of Atlanta as one of the top U.S.
meeting and travel destinations
New or significant ramp up in focus Design and execute for mobile – to reflect significant behavioral shift online from
desktops to mobile devices Significantly expand use of video and strong visuals to drive traffic Train Sales and Convention Service to leverage the new online resources and
increase relevancy and visibility of AtlantaMeetings.com
Continue or enhance focus from prior year Optimize new responsive design website with curated mobile content Continue positioning atlanta.net assets (web, mobile web, social) as the definitive
source for information on what to see and do in Atlanta Ongoing refinement of successful search engine optimization (SEO) strategy to drive
qualified traffic to the key content categories Ongoing refinement eCRM (includes social) program to maximize user engagement
while growing user base Optimize ad model to leverage growth of mobile and provide additional revenue
opportunities
Maintain atlanta.net as the premier hospitality online
marketing platform
New or significant ramp up in focus
Implementation of recommendations for revamping entire membership
strategy and structure
In-depth review of company-wide CRM software and benchmark against
other industry options. Implement changes/updates where required
Continue or enhance focus from prior year
Continue focus on cabinet alignment against industry priorities and
initiatives
Engage public and private sector by serving on boards, speaking
engagements and utilizing Atlanta executives in ACVB sales efforts
Maintain relationships with city and state administrations
Maintain leadership positions on hospitality industry boards
Highlight industry expertise through guest columns and editorials
Position ACVB as an industry expert nationally and as
the singular voice of hospitality in Atlanta
• Total revenue flat• Public sector revenue up 3.5% over 2014
forecasted year-end (2014 up 8% over 2013)• Payroll and related expenses, for ACVB only, up 5%
• 2.5% performance based merit increase pool, • Annual increase in employee benefits of
6%(renewals on group insurance plans)• Operating expenses, direct promotional expenses
and expenses for capital assets are relatively flat
2015 Financial Plan Points
2015 Budget 2014 Forecast
Total revenue 29,490,968$ 29,424,419$
Total expense 29,229,266 29,021,169
Excess(deficiency) 261,702$ 403,250$
2015 Summary Budget
2015 Budget 2014 Forecast
Georgia World Congress Center-Atlanta 12,032,000$ 11,590,400$
Georgia World Congress Center-Fulton Co 27,000 35,285
Atlanta Convention Marketing Fund - 80% 6,111,492 5,887,187
Atlanta Convention Marketing Fund - 20% 1,527,873 1,471,797
City of East Point 625,000
Total Public Sector Revenue 19,698,365$ 19,609,669$
Total Public Sector
Revenue
Contributed services 3,700,000 3,345,000
Co-op cash support 1,320,000 1,300,500
Grants/sponsorships 15,000 11,750
Internet revenue 1,716,603 1,720,000
Membership dues 1,375,000 1,475,000
Membership services 20,000 19,000
Other revenue 221,000 385,000
Publication ad revenue 1,325,000 1,390,000
Total private sector revenue 9,792,603$ 9,814,750$
Total Private Sector
Revenue
2015 Budget 2014 Forecast
Direct promotional expense 11,827,042$ 12,350,982$
Expense against capital assets 1,575,000 1,541,500
Other operating expense 973,510 910,000
Payroll and related expense 8,742,222 8,331,500
Transfer to ACMF reserve 6,111,492 5,887,187
Total expense 29,229,266$ 29,021,169$
Total Expense
2015 Revenue 2015 Expense
Atlanta Convention & Visitors Bureau, Inc. 24,923,365$ 24,747,277$
ACVB Enterprises, LTD 3,041,603 2,981,989
ACVB Foundation, Inc. 1,526,000 1,500,000
29,490,968$ 29,229,266$
Total Budget by Corporate
Entity
China Economic Overview
2010 2011 2012 2013
Population (m) 1,341 1,347 1,354 1,361
Nominal GDP (US$ bn) 6,040 7,298 8,447 9,250
Real GDP growth (%) 10.4 9.3 7.7 7.7
GDP per head (US$ at PPP) 4,361 5,414 5,432 6,796
Household Consumption
Expenditure (%) 8.2 10.3 9.4 8.0
China Outbound Travel
120
100
80
60
40
20
0
11497.3
8270.2
57.38
47.545.8440.95
34.523128.85
16.620.22
8.43 9.2310.4712.137.14 7.59 8.18
2012:
2013:
2014 (est.):
2020 (est.):
83 million - 6% of China’s population
97 million - world’s #1 source market
114 million outbound spending $140 billion
200 million outbound
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Destinations of Chinese Travelers
Only 10% of Chinese outbound travelers flying long-haulOnly 1.5% of Chinese outbound travelers visiting the U.S.
Aspirational Long-haul Destinations for Chinese
2013 2014 63%
58% France
50% 54%
53% 50%
United States of America
Australia
42% 44%
42% 43%
37% 38%
35% 37%
32% 36%
Canada
New Zealand
Italy
United Kingdom
Germany
24% 24%
20% 22%
Brazil
Greece
Question: What country(ies) will you likely visit during your next holiday to a destination outside ofAsia? Select all that apply.Base: China intercontinental travelers (2013 N=1,475, 2014 N=1002) Source: Brand USA Custom Study
Chinese Visitors to the U.S.
Key Message: China has soared up the
rankings to #5 in terms of overseas
visitor number and spending in the
in 2013, and is projected to rise to
become our top overseas source
U.S.
market within 6 years.
2003
2012
2013
2014
2017
2018
Under 200,000
1.4 million
1.8 million (+22.6%) #5
#4
#3
#2
overseas
overseas
overseas
overseas
market
market
market
market
est.
est.
est.
2.18
3.66
4.31
million
million
million
(+21%)
(+18% )
(+18%)
Sources: U.S. Department of Commerce, ITA, National Travel and Tourism Office
Chinese Expenditure in the U.S.
Spend Per Person Per Trip: $6,000 spend per
person per trip to the U.S. makes Chinese the highest spending visitor group per person per trip to the U.S.
Travel Spend: China’s middle and upper classes
spend 19% of their annual salaries on overseas travel– dramatically more than any other source country
Luxury Spend: 75% of Chinese tourists purchase
more than 3 luxury items per trip
Global Force: Chinese tourists make up 25% of
global spending on luxury goods
China Airlift to the U.S.
China’s Gateway Cities to the U.S
Beijing
Shanghai
Guangzhou
Chengdu (June)
Wuhan (December)
Hangzhou(April 2015)
U.S. Visa Updates
under 5 days
4-5 days France &Australia:
Close to 90% of non-immigrant applications from
Chinese nationals are approved
New on-line system allows Chinese applicants to: Schedule visa interview appointments
Pay visa processing fees
Check on status of issued visas on-line rather
than person
in
Next Goal:
the U.S.?
5-year multiple-entry visas for Chinese to
Key China Trends
● Rapidly Evolving Profile of Chinese Travelers Leisure travel soaring: 63% share and rising
Package tours still key (70% share) and will dominate
for the next decade Rapid shift from multi-destination to multi-experience
Accelerating shift from package tours to air-tel/FIT –
30% and rising thanks to visa flexibility and rapidly
growing sophistication of Chinese travellers
$1,100 spent per day when traveling
(excluding accommodation)
Implications Beyond-the-Gateway Potential: the Chinese travel
trade are hungry for new itineraries and new tour
products
FIT/Luxury Booming: FIT/luxury travel products are
rapidly becoming established and will see the greatest
growthover the coming decade
MICE Market: China is a huge MICE market, esp. for
mid- size and large-size incentive groups to the U.S.
Duration of Next Trip: 2014
1%
%
3 nights orless
Total Likely Visit U.S. in Next Trip
10%
8%4-‐6 nights
57%
55%7-‐13 nights
29%14-‐20 nights 33%
4%
4%21+ nights
Question: How long will this holiday likely be?Base: China intercontinental travelers (N=1,002), China travelers who will likely visit the U.S. in theirnext intercontinental trip (n=539) Source: Brand USA Custom Study
Months Likely to Travel
2%January 3%
4%February 5%
3% Total
Likely Visit U.S. in Next Trip
March 2%
4%April 5%
17%May 18%
15%June 17%
20%July 22%
21%August 23%
17%September 19%
29%October 29%
4%November 4%
3%December 3%
Question: In what month(s) will you likely take this holiday? Select all that apply.Base: China intercontinental travelers (N=1,002), China travelers who will likely visit the U.S. in their next intercontinental trip (n=539)Source: Brand USA Custom Study
Booking Window for Pre-packaged Holiday/Guided Tour Packages - 2014
1 day or less/did not reserve inadvance
2 to 6 days
1%2%
Total
Likely Visit U.S. in Next Trip11%
10%
27%28%1 to 2 weeks
23%25%
27%
3 to 4 weeks
1 to 2 months 23%
8%8%3 to 5 months
2%3%
0%1%
6 to 12 months
More than 1 year
Question: How far in advance of your departure date did/will you book the travel products for this holiday? Select one option from the drop-down box.Base: China intercontinental travelers who booked /will likely book pre-packaged holiday or guidedtour package (N=360), China travelers who will likely visit the U.S. in their next intercontinental trip(n=194)Source: Brand USA Custom Study
D
Chinese Destinaiton Selection Drivers
estination Selection
“Affordability”
“Dining”
“Safety”
Criteria
61%
58%
57%
Destination Selection Tools
1. Travel Agencies: travel agencies remain the dominantdestination selection tool with most Chinese travelersstill using local bricks-and-mortar travel agents and travel agency or airline websites in making a final destination selection
2. Online channels: including destination websites,travel portals, social networking channels, and blogsare soaring in importance as a destination selection channel
Word of Mouth: ”bragging rights” are extremely important in the China market -- being able to boast to friends and family about having visited a given destination and purchased given luxury goods –increasingly on-line word of mouth is becoming key via blogs and video sharing sites
3.
China Market Recap: Alignment of Key Factors Size: massive market size of 1.3 billion
Potential: only 7% of this population now traveling overseas – versus
25% for Korea
Growth: number of outbound travelers to double in next 6 years to
200 million
U.S. Market Share: only 1.5% of outbound Chinese travelers are now
traveling to the U.S.
Desire to Visit: rapid growth in aspiration to visit the U.S.
Disposable Income: Chinese incomes growing at 10-20% per year
Willingness to Spend: 19% of disposable incomes spent on
travel
RMB appreciation: making travel to the U.S. increasingly
affordable
U.S. Visa Barrier: now manageable for Chinese travel trade
Booming Airlift: new gateways and airlift to the U.S. rapidly developing
Hungry Travel Trade: want new U.S. packages beyond the gateways
Hungry Media: on-line and off-line media hungry to feature the U.S.
Spend: per visitor per day already leads all overseas markets
Arrivals: #1 overseas market for the U.S. within 6 years
2015 Election of Officers• Nancy Oswald Chair, Advisory Board Ruth’s Chris
• Niles Harris Vice Chair Sheraton Atlanta– Chair, Diversity Committee
• Ken Bernhardt Secretary Consultant/GSU– Chair, Atlanta Convention Marketing Fund Committee
• Ben Shanley Treasurer The Coca-Cola Company
• Erica Qualls Vice Chair- Atlanta Marriott Marquis
Compensation Committee
• Stan Wilson Vice Chair-Finance & HR Elarbee, Thompson, Sapp & Wilson
Staff Officers
• William Pate President & Chief Executive Officer
• Mark Vaughan Executive Vice President & Chief Sales Officer
• Gregory Pierce Executive Vice President & Chief Administrative Officer/CFO
• Andrew Wilson Executive Vice President & Chief Marketing Officer
2015 Election of Executive
Committee Members• Ed Baker Atlanta Business Chronicle
• Stephanie Barrell Bank of America
• Chris Coan Gas South
• Debby Cannon GSU
• Thomas Dortch, Jr. TWD, Inc.
• Jo Ann Herold Interface
• Sharon Goldmacher Communications 21
• Brad Koeneman Hilton Atlanta
• Raymond King Zoo Atlanta
• George McKerrow Ted’s Montana Grill
• Pete Moraitakis United Distributors
• Frank Poe GWCCA
• Jeff Portman AmericasMart
• Kris Reinhard Fifth Group– Chair, Membership Committee
2015 Election of Executive
Committee Members-cont.
• Derek Schiller Atlanta Braves
• Alexis Scott Atlanta Daily World
• Armand Vari Jacoby Development
• Peter McMahon Hyatt Regency Atlanta
• Ron Tarson Westin Peachtree Plaza