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2004 IACVB/PDI

CVB Research 101: Acquiring and Using Research

Kelly RepassDirector of Research

Presentation TitlePresentation Title

Research Department’s Main Responsibilities

•Track, analyze and disseminate information related to visitation, market conditions, competitive environment, consumer trends, etc. (from global to local perspective)

•Lay foundation for strategic and annual marketing plans and program development

•Evaluate sales & marketing programs

•Support CVB departments

•Assist CVB members & community partners

External AccountabilityVisitor Industry Statistics


External Constituents

•CVB members/hospitality industry

•Board of Directors

•Community partners

•Political community

•Media


Industry Performance Measurements •Visitor volume & travel characteristics

–Quarterly domestic updates from D.K. Shifflet–Annual overseas updates from Tourism Industries

•Analysis of various sectors

Metro Orlando Visitors

0

10

20

30

40

50

1997 1998 1999 2000 2001 2002

(mill

ion

s)

FL residents Non-FL residents International

Sources: D.K. Shifflet & Associates, Office of Travel & Tourism Industries

37.2 38.742.6 43.5 40.8 43.0

Metro Orlando Visitors

Characteristic FL Resident Non-FL Resident

Purpose of trip Getaway weekend (33%)Special event (17%)VFR (16%)

Vacation (66%)VFR (16%)

Avg. party size 2.9 3.3

Top activities Theme parks (64%)Shopping (38%)General entertain. (35%)

Theme parks (80%)Gen. entertain. (51%) Shopping (49%)

Avg. nights 2.2 5.7

Avg. spending $550 $3,013

Overseas Visitors vs. U.S. Market Share

2.78 2.87 2.863.01

2.47

1.8711.4%

11.4% 11.7% 11.6% 11.3%9.8%

0.00

1.00

2.00

3.00

4.00

1997 1998 1999 2000 2001 2002

(mill

ion

s)

0.0%

5.0%

10.0%

15.0%

20.0%

(ma

rke

t s

ha

re)

Overseas Visitors U.S. Market Share

Source: U.S. Department of Commerce, Office of Travel and Tourism Industries



–Annual visitor profile reports

•Economic impact–visitor spending, jobs, fiscal impact on city and county governments, tax savings for residents


Impact of Tourism

• $21.8 billion in visitor spending • Metro Orlando’s largest employer

–27% of all jobs (16% direct, 11% indirect jobs)

• $5.2 billion annual earned wages

• Tax savings of $456 for Orange County households



–Annual visitor profile reports

•Economic impact–visitor spending, jobs, fiscal impact on city and county governments, tax savings for residents

•Market conditions–Lodging activity: occupancy, adr, supply and demand–Airport activity: passenger counts, schedules, airfare–Port Canaveral activity: passengers, new product

Metro Orlando Monthly Occupancy

2000-2003 YTD

56%

65% 71% 69%

59%69% 72%

64%

48%

63%60%

57%

20%

40%

60%

80%

100%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2000 2001 2002 2003

Source: Smith Travel Research

Metro Orlando Room-Night Demand

% Change Current Month vs. Year Ago

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Jan

Mar

May

Jul

SepNov

Jan

Mar

May

Jul

SepNov

Jan

Mar

May

Jul

SepNov

2001: -8.4% 2002: 2.0% 2003: --%

Source: Smith Travel Research

Orlando International AirportPassenger Traffic

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000


2000 2001 2002 2003

Source: GOAA

6%

-8%

-6%

Port Canaveral Cruise Passengers

200,000

250,000

300,000

350,000

400,000

450,000


2000 2001 2002 2003

Source: Canaveral Port Authority

32%

13%

-8%


Strategic Planning Efforts •Destination forecast – quarterly updates•Image/perception study•Meeting planner study•Membership surveys•Consumer database analysis•Monitor global trends – competition, industry shifts, consumer behavior, economic & business conditions


Communicating Research Information •Standard Research Reports

–Annual Research Report - Compilation of annual data

–Annual visitor profiles•Domestic Leisure, Convention/Group Meeting, Overseas

–Annual Occupancy Report–Orlando Market Summary–State of the market ppt presentation

–Monthly research newsletter


Communicating Research Information •Research section of CVB business site

–Most current information available

–Member’s only section – member benefit

•Miscellaneous–Press releases/press conferences

– Industry talking points

– CVB committee updates

– Topical member seminars

Internal AccountabilityDepartment Metrics


Department Metrics Convention Sales Staff Activity

•Bids•Tradeshows attended•Sales calls•Outside sales trips•Clients/potential clients visited•Telemarketing efforts•Inquiries (phone, fax, e-mail)


Department Metrics Convention Sales Productivity

•Leads: number and associated room-nights•Bookings (city-wide & in-house meetings)

•definite & tentative groups, attendance, room-nights and estimated economic value to community

•Cancellations –reason, number of groups, attendance, room-nights and associated spending

•Lost Opportunities: same info•Value/ROI of bookings


Department Metrics Destination Meeting Services

•Meeting planner satisfaction survey results

–Ratings of convention assistants on attitude, skill, efficiency, knowledge and appearance

•Number of hours worked by assistants•Service leads issued•Member referrals


Department Metrics Membership

•Members (#): current, new, reinstates, cancellations • Dues ($):

–current, new, reinstates, upgrades, downgrades, cancellations

•Reason for cancellations•Advertising sales ($)


Department Metrics Public Relations

•Publicity exposure–Clips–Circulation–Advertising equivalency


Department Metrics Consumer Marketing

•Consumer inquiry analysis–Response levels by advertising mechanism–Geographic region

•Consumer web site sales–Hotel sales, packages, room-nights

•FL resident travel club–Enrolled members, room-nights booked, gross sales, page views to Club home page


Consumer Marketing Marketing Campaign Measurement

•2003 Domestic Summer Campaign–Program Elements

•Television & newspaper – 16 markets•Partners – attractions, hotels, Visit Florida, regional partners

–Advertising effectiveness study •Aided & unaided ad recall•Influence of ad on desire & intent to visit Orlando•Action taken – went to web site, called phone number, contacted advertising partners, booked advertised travel package, etc. •Incremental visitation and related economic impact•Campaign ROI


Consumer Marketing Visitor Information Kit

•Pre & post surveys among consumers who request kit

–Influence of collateral information on decision to visit–Incremental conversion rate– How much consumers learned about the breadth of offerings–Satisfaction with information –How consumers use CVB’s consumer web site–Influence of information on activity choices–Which collateral pieces consumers bring on trip as a resource–Advanced trip planning & booking cycles–Travel arrangements made prior to receiving kit – to see what trip elements we/our members can influence)–Past and planned Orlando visitation


Department Metrics Interactive Marketing

•Consumer Web Site Activity–Unique user sessions, page views, avg. session length

•Topical surveys on site


Department Metrics Promotions

•Number of Promotions•Media Value•Geographic Markets•Circulation•Number of Impressions


Department Metrics Visitor Services

• # walk-ins at visitor center• $ in-market ticket sales • $ merchandise sales

• $ out of market ticket sales • # phone calls received • # e-mails processed

• # housing calls

Industry Accountability and Standardization is Critical to Our

Collective Success

CVB ACCOUNTABILITY

IACVB Performance Measurement

Initiative

Performance Measurement

Initiative The Challenge

•CVBs receive the lion’s share of their funding (82%) from public sources

•Unique position = external performance audits by local community stakeholders

•Lack of uniform approach/industry standards to productivity reporting (apples to oranges)

Performance Measurement Initiative Importance of Standard Definitions & Measurements

• Uniform approach for internal/external audits

• Quantitative management tools to identify organizational strengths, weaknesses, and opportunities

• Recognized benchmarks to measure success over time

• Competitive Analysis - How bureau compares to others

• Serve as a basis for ROI calculations

Performance Measurement InitiativeMission

To standardize CVB reporting practices by establishing definitions, guidelines, and metrics to provide meaningful comparative data

• CVB Management & Staff

• Destination Stakeholders

• Government/Funding Entities

• Consultants & Auditors

• Media

Performance Measurement Initiative

Interested Parties


Key Projects

• Uniform system of accounts (completed)

• Convention market definitions (completed)

• Convention & leisure sales productivity measurements

• Return on investment


Sales Productivity Measures• Goal: establish standard definitions and measurements for

tracking and reporting CVB performance (convention & leisure)

• Process: 2 surveys developed in conjunction with New York University and Smith Travel Research and sent to membership

– Definitions used by CVBs

– Activity & productivity measures

– Visitor characteristics

– Methods used to track specific variables


Sales Productivity Measures• Survey Results:

– Good News: CVBs at all levels measure their sales activity and productivity to some degree

– Bad News: CVBs use inconsistent definitions; Activity and productivity metrics measure different things

• Process:– Initial draft recommendations debated at

joint PMT/Convention Sales Shirtsleeves meeting during 2003 Annual Convention

– Revised draft circulated to PMT, IACVB membership & general public for comment Sept. 2003

– Approved by Board of Directors in Oct. 2003


Convention Sales Productivity Measures


Recommended Convention Sales Definitions

• Lead

• Bid

• Tentative

• Booking - hotel event

• Booking - citywide/conv. center event

• Lost Opportunity

• Cancelled Business


Recommended Convention Sales Activity Measures

• Bids

• Tradeshows attended

• Outside sales trips

• Clients/Potential clients visited

• Client site inspections

• Fam tours

• Fam tour participants (planners only)

• Telephone call reports

• Direct mail campaigns

• Telemarketing campaigns


Recommended Convention Sales Productivity Measures

• Leads– room nights

• Bookings– room nights– attendance– attendee spending

• Lost Opportunities– room nights– reason for loss– attendees– attendee spending

• Cancellations– room nights– reason for loss– attendees – attendee spending

• # leads per tradeshow attended


Convention Sales Measures - Next Steps

• Standards promulgated to membership and key industry partners through communication and education efforts

• Standards to be submitted to APEX for inclusion

• PMT will continue to review and recommend supplemental convention sales productivity metrics and special issues


Leisure Sales Productivity Measures • Areas

– Travel Trade activity & productivity measures• Survey sent to members in January• Seeking input from tourism & marketing

committees during conference

– Marketing & Communications activity & productivity measures

• Survey to be sent to members later this month

• Recommendations slated for July 2004


ROI• Goal: Utilize standard business ROI formula

that will quantify a CVB’s financial impact on its local community for convention & leisure travel

• Update: – Incorporate convention and leisure sales

productivity measures

– Extensive review by membership and industry partners w/expertise in CVB ROI

– Results should be completed October 2004

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Documents

clients potential clients visited

market ticket sales

visitor volume

market conditions

economic impact

convention

fiscal impact

page views