myrtle beach 2012 economic impact study · 2 objectives: • determine the conversion rate for...

Prepared by

Myrtle Beach 2012 Economic Impact Study

–May 2013–

Myrtle Beach Area 2012 Economic Impact Study

2

Objectives:

• Determine the conversion rate for those exposed to Myrtle Beach marketing efforts

• How effective have our marketing efforts been in turning potential visitors into actual visitors, and how does the online channel contribute?

• Determine the revenue our conversion efforts generated

• Who spent what and where - what was the average spend per vacationing group, where did they spend it, and how much overall revenue was generated?

• Revisit our Net Promoter Score

• Does the Myrtle Beach experience continue to generate word-of-mouth recommendations?

• Assess the use and usefulness of the Internet in general and VisitMyrtleBeach.com in particular

• Examine party composition, visitor types, trip duration and activity participation

Methodology

3

Who we talked to:

• The Myrtle Beach Area Chamber of Commerce provided us with a random list of VisitMyrtleBeach.com visitors and E-newsletter recipients. Additional sample was sourced from Equation’s Myrtle Beach Panel.

• Respondents were surveyed between March 27 – April 17, 2013.

n-size

Email - Website Guide Order 827

E-newsletter 1,846

Website survey 682

Panelists 41

Total completes: 3,396

Margin of Error ±1.7%

• Travelers continue to utilize the Internet in their consideration of Myrtle Beach as a possible destination

• Of those that consider/inquire, more than half convert with a high return per marketing dollar

• First timers are considering MB in 2013 at higher rates than before • Once here, people are spending more than in previous years • For those that visit, they are hooked (Net Promoter is extremely high)

In a nutshell …

4

Key Finding

The Internet remains the most utilized information source for trip planning, with 71% using it in vacation planning

Among those who use the Internet in planning, VisitMyrtleBeach.com is a vital resource: it is used by 82%

54% of converts begin planning their visit 1 to 4 months in advance, and 34% begin planning 4+ months in advance. Advance trip planning coincides with VisitMyrtleBeach.com usage.

Summary of Key Findings

5

Key Finding

Our Net Promoter Score of 85 demonstrates considerable word-of-mouth equity for the Myrtle Beach area

The vast majority of Myrtle Beach visitors highly recommend us. What are we doing to leverage this outstanding word-of-mouth?


6

Key Finding

Marketing efforts continue to successfully generate and convert a tremendous amount of leads

The conversion rate is an estimated 51% among website visitors, resulting in an estimated 2,658,214 travel parties in 2012. Among Converts, 54% were Repeat Converts, and 38% were New Converts—visiting the Myrtle Beach area for the first time ever in 2012. The remaining 8% of 2012 visitors are Lapsed Converts (last visited 6+ years ago).


7

Key Finding

We continue to see very high and encouraging returns on our marketing spend

On average, guests spent $2,770 per group over the length of their Myrtle Beach stay – that’s an estimated $337 dollars of revenue per marketing dollar spent from converted site visitors alone.


8

9

Myrtle Beach Visitation

2012 Leisure Travelers

10

Took a Vacation in 2012

84%

16%

Yes No

Q2. Did you take a vacation in 2012?

Base: Total Inquirers (n=3396)

84% of Inquirers took a leisure trip in 2012. Among those who did not, 82% are planning a trip to Myrtle Beach in 2013.

82% of non-travelers are already planning

or definitely considering a trip to Myrtle Beach in 2013

Vacation Destinations

11

66%

15%

7%

6%

6%

5%

3%

3%

3%

3%

3%

6%

Myrtle Beach, SC

Florida

Tennessee

South Carolina (excluding Myrtle Beach area)

North Carolina

Virginia

Georgia

Las Vegas, NV

New Jersey

New York

Pennsylvania

Other

Q7. Where did you vacation in 2012? [Unaided] Q8. Please indicate when, if ever, you vacationed overnight in each of the following destinations?

Destinations Visited in 2012

Base: Took a vacation in 2012 (n=2932)

Among inquirers/site visitors, 66% of those who took a vacation in 2012 went to Myrtle Beach.

Note: Destinations with less than 3% visitation not shown.

Myrtle Beach Converts visited an

average of 1.7 destinations

47% of Converts made Myrtle Beach

their only trip in 2012

Vacation Destinations - Non-Converts

12

28% 10%

8% 7% 6% 5% 5% 4% 4% 4% 4% 3% 3% 3% 3% 3%

Florida

Tennessee

North Carolina

Virginia

South Carolina excluding Myrtle Beach

Georgia

Pennsylvania

California

Las Vegas, NV

Maryland

New Jersey

New York

Ohio

Texas

Wisconsin

Mexico

Q7. Where did you vacation in 2012?

Destinations Visited by Non-Converts

Base: Non-Converts; did not visit Myrtle Beach in 2012 (n=811)

Florida remains the most popular destination for people we didn’t convert after an inquiry.

Note: Destinations with less than 3% visitation not shown.

Likelihood of 2013 Myrtle Beach Visit

13

Likelihood of Visiting Myrtle Beach in 2013

27%

31%

20%

8%

9%

6%

40%

36%

35%

16%

14%

21%

7%

8%

14%

3%

3%

4%

Total

Converts

New Converts

Already made plans to visit In the process of finalizing plans to visitDefinitely would consider Probably would considerProbably would not consider Definitely would not consider

Q43. How likely are you to take a leisure vacation to the Myrtle Beach area in 2013?

Base: Inquirers who took a vacation in 2012 (n=2942)

26% of first-time Myrtle Beach visitors (New Converts) are already making 2013 plans, and 35% would ‘definitely consider’ returning.

23% in previous

year

14

Vacation Planning & Information Sources

4% 8%

24%

30% 34%

Less than 2weeks before

2-4 weeksbefore

1-2 monthsbefore

3-4 monthsbefore

More than 4months before

Vacation Planning

15

How far in advance did you plan for your trip?

Q12b. How far in advance did you begin planning your most recent trip to the Myrtle Beach area?

Base: Converts; visited Myrtle Beach in 2012 (n=2132)

54% of Converts began planning their visit 1 to 4 months in advance, and 34% began planning more than 4 months in advance.

54%

82%

49%

49%

26%

13%

11%

8%

6%

0%

9%

VisitMyrtleBeach.com

Destination sites (e.g.,Chamber of Commerce)

Search Engine Sites

Booking Engines(e.g.,Travelocity, Orbitz)

Facebook

Google Plus

Online Travel Agency Sites

Electronic Newsletters

Twitter

Other

Information Source: Internet/Online

16

Online Sources Used in Planning

Base: Converts who used the Internet for planning (n=1275)

Reach: 87%

The Internet is the most utilized information source for trip planning. VisitMyrtleBeach.com is a fantastic resource for visitors, as it is used by 82% of people who are using the Internet to plan their Myrtle Beach vacation.


71%

Used the Internet in Planning

Q13. What sources did you use in planning your vacation to the Myrtle Beach area? Q16. What type of online sources did you use in planning your vacation to the Myrtle Beach area?

Information Source: VisitMyrtleBeach.com

17

Role of VisitMyrtleBeach.com in MB Visitation

74%

9%

15%

2%

Already decided to travel to the MyrtleBeach area before I visited the site

Already decided to travel through theMyrtle Beach area on my way

elsewhere and visited this site forinformation

Was considering several traveldestinations, including the Myrtle

Beach area, and used this site to helpmake my decision

Just browsed this site for information- wasn't really thinking about traveling

Q18a. What role did VisitMyrtleBeach.com have in your decision to travel to the Myrtle Beach area? Q18b. On a scale of 1 - 5, how influential was VisitMyrtleBeach.com in your decision to vacation in the Myrtle Beach area?

Although the majority of visitors say they already decided to visit the area before going to VisitMyrtleBeach.com, 49% say the site influenced their decision – reinforcing an already strong desire to vacation here.

Base: Used VisitMyrtleBeach.com in planning (n=1048)

20%

29%

27%

8%

15%

5 - Extremely Influential

4

3

2

1 - Not at all influential

Influence of VisitMyrtleBeach.com in MB Visitation

49%


18

Advance Visitation of VisitMyrtleBeach.com

4%

8%

24%

30%

34%

5%

10%

24%

32% 30%

Less than 2 weeksbefore

2-4 weeks before 1-2 months before 3-4 months before More than 4 monthsbefore

Overall Advance Trip Planning Advance Use of VisitMyrtleBeach.com

Initial VisitMyrtleBeach.com visitation mirrors overall advance trip planning, indicating the site is an initial step in the planning process.

Q12b. How far in advance did you begin planning your most recent trip to the Myrtle Beach area? Q17b. How far in advance of your most recent trip to the Myrtle Beach area did you first go to the VisitMyrtleBeach.com Web site?



19

Ad Source of VisitMyrtleBeach.com

54% 44%

35% 29%

17% 10%

9% 5%

2% 2% 2% 2%

0% 0% 1%

Internet/Online AdvertisementOfficial Myrtle Beach Area Visitors Guide

TV AdvertisementSearch Engine

Email/E-newsletterArticle (in a magazine or newspaper)

Family/FriendNewspaper Advertisement

Camping AdvertisementRadio Advertisement

PostcardOther Web site

Bridal AdvertisementTradeshow Advertisement

Other

Q18. Where did you see VisitMyrtleBeach.com advertised?

Base: Learned about VisitMyrtleBeach.com through an advertisement (n=163)

Among those citing advertising as the source of their awareness of VisitMyrtleBeach.com, 66% learn about it through the Internet, followed by the Visitors Guide (44%).

Internet Reach: 66%


20

Means of Finding VisitMyrtleBeach.com

61%

18%

16%

16%

12%

10%

2%

Search Engines (e.g., Google, MSN, Yahoo)

I typed in the Web address

E-mail contained a link to VisitMyrtleBeach.com

I saw the web address in an advertisement

I have the address bookmarked in my favorites

Link found on another Web site

Other

Q17a. How did you locate the VisitMyrtleBeach.com website?


At 61%, search engines remain the dominant source of discovery of VisitMyrtleBeach.com. Beyond SEO, other online efforts (ads, email campaigns) are also successful at driving site visitation.

21

Net Promoter Score &

Interest in Visiting

71%

12% 8% 4% 2% 2% 0% 1% 0% 0% 1%

10 -Extremely

Likely

9 8 7 6 5 4 3 2 1 0 - Not atall likely

Net Promoter Score Index Explained

22

How likely is it that you would recommend Myrtle Beach as a vacation place to your family/friends?

• The Net Promoter Score (NPS) is a brand in and of itself and correlates extremely highly with satisfaction but is a more sensitive measure to high and low scores.

• ‘Recommendations’ are what every brand should aim for – we need to set that bar.

6%

83% Total Proportion of Promoters = 83% (minus) Total Proportion of Detractors = 6%

Net Promoter Score = 77


Q38. How likely is it that you would recommend each of the following areas as a vacation destination to your family/friends?

Net Promoter Score Index

23

Likelihood to Recommend Myrtle Beach

83%

88%

84%

68%

12%

9%

11%

17%

6%

3%

5%

15%

Total

Converts

New Converts

Non-Converts

Promoters (9-10) Passive (7-8) Detractors (0-6)

Q38. How likely is it that you would recommend each of the following areas as a vacation destination to your family/friends: Myrtle Beach

77

85

79

53

Net Promoter Score Index

We have an outstanding Net Promoter Score – 85% among Converts. This represents considerable word-of-mouth equity for the Myrtle Beach area.


How do we leverage NPS?

Net Promoter Score Index vs. Others

24 Q38. How likely is it that you would recommend each of the following areas as a vacation destination to your family/friends?

77%

47%

46%

42%

27%

27%

23%

7%

4%

4%

Myrtle Beach area, SC

Orlando, FL

Charleston, SC

Gatlinburg/Pigeon Forge, TN

Nags Head/Outer Banks, NC

Savannah, GA

Hilton Head, SC

Branson, MO

Ocean City, MD

Virginia Beach, VA

Base: Varies, based on those who have visited respective destinations.

Among visitors of these respective vacation destinations, the Myrtle Beach area’s Net Promoter Score is the highest.

NPS Scores

Likelihood to Recommend

25 Q38. How likely is it that you would recommend each of the following areas as a vacation destination to your family/friends?

Likelihood to Recommend (Top-3-Box)

90%

77%

76%

74%

66%

66%

65%

57%

54%

53%

50%

Myrtle Beach area, SC

Orlando, FL

Charleston, SC

Gatlinburg/Pigeon Forge, TN

Nags Head/Outer Banks, NC

Savannah, GA

Hilton Head, SC

Branson, MO

Virginia Beach, VA

Ocean City, MD

Daytona, FL

Base: Varies, based on those who have visited respective destinations.

Myrtle Beach ranks first in likelihood to recommend among competitive destinations.

26

Myrtle Beach Website Traffic, Inquiries & Conversion Rates

Website Conversion Calculation

27

* Source: VisitMyrtleBeach.com website survey.

The conversion figures are calculated using industry standard factors established to reconcile stated intention and actual behavior. These factors are then applied to the intent-to-visit responses, providing more realistic and conservative results:

Stated Intent* Factor

Resulting Intent

I have already made plans to visit the Myrtle Beach area 50% × 80% = 40%

I am in the process of finalizing plans to visit the Myrtle Beach area 19% × 50% = 9%

I would definitely/probably consider visiting the Myrtle Beach area [NET] 30% × 5% = 2%

I would definitely not/probably not consider visiting the Myrtle Beach area [NET] 1%

51% Conversion

Rate

Website Conversion Rate & Return

28

2012 Visitor Conversion & Marketing Return*

1. Adjusted Website Visits: Weighted down to 60% to adjust for repeat web site traffic, such as those viewing from multiple devices and/or locations over time.

2. Percentage of web site visitors who stated they have already made arrangements or are planning to visit Myrtle Beach. Factored for accuracy to 40% of "made reservations", 9% of "planning to visit Myrtle Beach", and 2% of "considering Myrtle Beach”.

3. Visitor Expenditures: Projection of average trip expenditure of what visitors spent during their stay on lodging, dining, shopping, entertainment, and transportation and the conversion rate of visitors to annual web site traffic.

The website conversion rate of 51% is based those who have planned, or are likely to plan, a trip to Myrtle Beach.

Website Visits 8,686,973 Adjusted Website Visits1 5,212,184

Conversion Rate2 51% Converts 2,658,214

Spend Per Trip $2,770 Visitor Expenditures3 $7,362,661,931

Total Marketing/Media Expenditure $22,297,708 Revenue Per Marketing Dollar Spent $337

* Figures based on VisitMyrtleBeach.com site traffic metrics and 2012 website survey results.

Travel parties

increased by 23%

Increased by 4%

Myrtle Beach Visitor Spending Patterns

29

Average Expenditure

per Party Accommodations $673

Restaurants/ Groceries $571

Golf $66

Entertainment/ Attractions $424

Shopping $506

Daily transportation (excluding rental car) $133

Rental car $82

Miscellaneous $315

Total Expenditure: $2,770

Q33b. Still thinking about your most recent leisure trip to the Myrtle Beach area, approximately how much did you spend on each of the following items per day?


Trip Expenditures

The average party spent $2,770 in total – accommodations were the largest single chunk at $673 for the total stay ($125/night on average).

Median Party Size: 4 people Avg. Length of Stay: 5.9 nights

Website Conversion Rate & Return by Visitor Type

30

2012 Marketing Return by Visitor Type*

The impact of marketing can be categorized into different degrees by looking at visitor type. Repeat Converts are loyal to Myrtle Beach and thus marketing efforts largely serve to maintain and reinforce that loyalty. In the absence of destination loyalty, Lapsed and New Converts are more directly impacted by marketing. Distinguishing between these groups provides some insight to the amount of visitation we influence and the amount we actually create.

Repeat Converts (visited 1-5 years

ago)

Lapsed Converts (visited 6+ years

ago)

New Converts (never visited

before) Proportion of Converts 54% 8% 38%

Travel Parties 1,435,435 212,657 1,010,121 Visitor Expenditures $3,975,837,443 $589,012,954 $2,797,811,534

Revenue Per Marketing Dollar Spent $178 $26 $125

* Figures based on VisitMyrtleBeach.com site traffic metrics and 2012 website survey results.

By the numbers …

31

Three key indicators provide demonstrate very strong performance…

Conversion rate among site visitors, with 38% being completely New Converts. 51%

$337

85

Revenue generated per dollar spent. $2,770 spent per party over the length of their stay.

Myrtle Beach Net Promoter Score which is exceptionally high – worth leveraging.

32

Respondent Profile

Respondent Profile

33

Total Converts New Converts

Age

18 to 24 1% 1% 1%

25 to 34 9% 9% 9%

35 to 44 22% 22% 23%

45 to 54 30% 31% 31%

55 to 64 26% 25% 25%

65+ 12% 12% 10%

Mean (years) 50.4 50.0 49.6

Gender

Male 30% 30% 25%

Female 70% 70% 75%

Respondent Profile

34


Marital Status

Married/Partnered 78% 82% 83%

Single 11% 8% 8%

Separated/Divorced/Widowed 12% 10% 9%

Annual Household Income

Less than $45,000 28% 23% 23%

$45,000 - $74,999 35% 35% 36%

$75,000 - $99,999 17% 18% 18%

$100,000 or more 20% 23% 23%

Mean ($000s) 67.4 71.2 70.8

Ethnicity

White 86% 90% 87%

Black 11% 8% 10%

Other 3% 2% 2%

Respondent Profile

35


Employment Status

Employed full-time 61% 63% 63%

Employed part-time 13% 12% 14%

Other 26% 25% 23%

Education

HS graduate or less 23% 22% 21%

Some college/technical/trade school

31% 30% 28%

Associate degree 13% 13% 14%

Bachelor degree 21% 23% 24%

Post-graduate study/degree 11% 12% 13%

Other 1% 1% 1%

36

Appendix I: Accommodations Patterns

Accommodations Patterns

37

Accommodation Type

51%

30%

13%

5%

4%

3%

1%

2%

Hotel/motel

Condo/cottage

Timeshare

Rented house

With friends and family

Campground

My second home

Other

Q21. What type of accommodations did you stay/lodge at on your most recent trip to the Myrtle Beach area?

Most Converts stay in paid accommodations, with hotel/motel accommodations being the most common, followed by condo/cottage.


38

Advance Booking of Accommodations

Q22. And how far in advance did you actually make reservations for accommodations?


Base: Stayed in paid accommodations (n=2080)

3% 1%

2% 2% 2%

10%

26% 26% 28%

2 daysbefore or

less

3-4 daysbefore

5-7 daysbefore

8-10 daysbefore

11-13 daysbefore

2-4 weeksbefore

1-2 monthsbefore

3-4 monthsbefore

More than 4monthsbefore

52% of Converts make lodging reservations 1 to 4 months prior to arrival, and nearly 30% of Converts reserve 4+ months in advance.

52%


39

19%

81%

Yes No

Q23a. Did you use VisitMyrtleBeach.com to locate and secure your accommodations?

Use of VisitMyrtleBeach.com to locate and secure accommodations

19% use VisitMyrtleBeach.com to locate and secure accommodations. Among those who use it, 76% ultimately book at a property they find through the site.

76% of this group ultimately booked reservations at a

property found through VisitMyrtleBeach.com



40

Reservations Channel

33%

29%

8%

2%

1%

10%

Telephone (called accommodation directly)

Accommodation Web site (e.g., hotel property)

Booking engine (e.g., Travelocity, Orbitz)

Upon arrival

Travel agent

Other

Q24. How did you book your accommodation reservations?


Among those who stay in paid accommodations on their trip, 33% make reservations via the telephone, and 29% use the lodging’s website.

41

Length of Trip (Paid and Unpaid Accommodations)

1%

5%

11%

14% 13% 15%

28%

4%

1% 2%

7%

1 night 2 nights 3 nights 4 nights 5 nights 6 nights 7 nights 8 nights 9 nights 10 nights More than10 nights

Q30a. How many total nights did you spend in the Myrtle Beach area?



28% of Converts say they stay in the Myrtle Beach area 7 nights, regardless of whether they pay for their accommodations.

Average length of stay:

5.9 nights

42

Length of Trip (Paid Accommodations)

1%

6%

11%

14% 13% 15%

27%

3% 1% 2%

6%

1 night 2 nights 3 nights 4 nights 5 nights 6 nights 7 nights 8 nights 9 nights 10 nights More than10 nights

Q30b. How many nights did you spend in the Myrtle Beach area that required paid accommodations?


Average stay in paid

accommodations: 5.4 nights


As the majority of Converts report staying in paid accommodations, 7 nights is again the most common length of their trip to the Myrtle Beach area.

43

Rooms Booked per Night

70%

16%

6% 3% 2% 3%

1 room 2 rooms 3 rooms 4 rooms 5 rooms More than 5rooms

Q31. How many rooms (or units) were booked per night for the accommodations you stayed at?



70% of visitors who stay in paid accommodations book 1 room per night.

Median number of rooms booked per

night: 1.0

44

Appendix II: Travel Patterns

Travel Patterns

45

Activities Participated in at Myrtle Beach 94%

91% 89%

79% 38%

30% 28%

18% 16% 15% 14% 14% 13%

11% 8% 7%

4% 8%

RestaurantsBeach

ShoppingMyrtle Beach Boardwalk

Miniature golfLive entertainment theaters

Amusement parksHistorical sites

Festivals/EventsState parksWater park

Surf/Pier fishingGolf

MarshwalkArts/Cultural facilities

Fishing tripGambling/Gaming

Other

Q35. Which of the following activities did your travel party participate in while in the Myrtle Beach area?


Going to restaurants, the beach, and shopping are by far the most popular activities while in the Myrtle Beach area.

36%

31%

14%

8%

6%

2%

1%

3%

Family with kids

Couple (2 adults)

Family and friends

Grandparents, children/grandchildren

Friends

Self

Organized group or club

Other

Travel Party Composition

46

Party Composition

Q28. Which of the following best describes the travel group you were with on your most recent leisure trip to the Myrtle Beach area?


Median party size is 4: 2 adults 2 children

The majority of Myrtle Beach Converts travel in groups, with 67% traveling as a family with kids or as a couple.

67%

Travel Patterns

47

Mode of Transportation

80%

13%

8%

1%

0%

1%

Personal automobile

Airplane

Rental automobile

RV

Bus

Other

Q27. How did you travel from your home to the Myrtle Beach area?


80% of Converts arrive in the area via their own car.

48

Impact of Inclement Weather

Q20a. If you were planning to visit the Myrtle Beach area for a weekend visit, how much impact would inclement weather (e.g., rain) have on your decision to keep your vacation reservation?

Impact of Weather

44%

47%

22%

22%

18%

17%

6%

6%

11%

8%

Converts

NewConverts

Extremely Influential Strongly Influential Moderately Influential Slightly Influential No Impact


Weather plays a major role in the decision to keep a vacation reservation for a weekend visit.

Interest in Visiting

49

Interest in Visiting Myrtle Beach

71%

73%

63%

67%

20%

17%

20%

24%

7%

7%

12%

7%

2%

2%

3%

2%

1%

1%

2%

Total

Converts

New Converts

Non-Converts

Extremely interested Very interested Moderately interested Slightly interested Not at all interested

Q41. How interested are you in visiting the Myrtle Beach area in the future?

The area’s high Net Promoter Score translates into significant repeat visitation – an indication that the ‘lifetime value’ of a Myrtle Beach visitor is considerable.


50

Appendix III: Information Sources

& Planning

Information Source Usefulness

51

Usefulness of Information Sources (Top-2-Box on a 0-10 Usefulness Scale)

71%

69%

68%

62%

59%

55%

54%

54%

44%

43%

43%

42%

The Official Myrtle Beach Area Visitors Guide

Friends/Family/Co-workers

Internet/Online Advertisement

Travel/Other Web site

Travel Guides/ Brochures

Travel Agent/AAA

Welcome Center on the Interstate

Other Travel Guides/Brochures

Magazine Advertisement

Newspaper Advertisements/Travel Section

TV Advertisement

Social media resources (e.g., Facebook, Twitter)

Q14. How useful were each of the following in planning your vacation to the Myrtle Beach area? (10=Extremely useful, 0=Not at all useful)

The Visitors Guide, the Internet, and Friends/Family/Co-workers are the most useful vacation planning information sources.

Base: Inquirers; visited Myrtle Beach in 2012 varies by type of source used. Note: Radio base too low to show data.

myrtle beach 2012 economic impact study · 2 objectives: • determine the conversion rate for...

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