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MRTF Recommendations Regarding ARES Contract

MRTF Recommendations Regarding ARES Contract. May 16, 2011. Background To Select A Booking Engine . Online media buys increased in 2009 Media Plan Williamsburg Hotel Motel Association destination booking engine supported WADMC efforts since 2004

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MRTF Recommendations Regarding ARES Contract

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  1. MRTF Recommendations Regarding ARES Contract May 16, 2011

  2. Background To Select A Booking Engine • Online media buys increased in 2009 Media Plan • Williamsburg Hotel Motel Association destination booking engine supported WADMC efforts since 2004 • Internet access important to travelers for research, planning and booking • Technology applications continuously changing, expensive to keep current • WHMA booking engine and self-managed software model no longer competitive, limited call center hours

  3. MRTF Booking Engine Research Work Group • Formed March 2009 – included WACTA, WHMA, BG, JYF and York County • Researched 15 websites and 8 booking engines • Members of WHMA Board and WHMA Reservations/Promotions Committee were asked to provide input • Formal review by all MRTF partners • Work Group developed extensive list of Booking Engine Opportunities • August 2009 presented recommendation to MRTF to pursue a unified approach with WHMA

  4. Proposed Roles for Partner (WHMA) • Encourage package promotions and seasonal offerings • Train local lodging providers on how to get the most out of the booking engine • Local call center support is possible • Manage inquiry fulfillment • Partner would not receive direct revenue from ARES or the booking engine

  5. Evaluation of RFP Responses • Received 3 qualified responses by deadline • Reviewed and scored independently, then tallied and discussed by entire MRTF, including WHMA representatives • Top vendor exceeded requirements for functionality and specific features desired • MRTF voted to seek further references on and negotiations with top vendor

  6. Booking Engine RFPWork Group • MRTF and WHMA each appointed 3 members • Incorporated Booking Engine Opportunities in RFP • Objectives – Offer potential visitors a means to book major travel components and/or packages and provide a competitive booking engine alternative to support destination marketing efforts. • Good faith effort to explore managing partner relationship with WHMA • RFP reviewed by JYF contract administrator and JCC attorney • WADMC approved release of RFP

  7. Follow-up From April 18, 2011 WADMC Meeting • WADMC received letter from ARES requesting guidance regarding a potential conflict of interest in allowing another entity to use reservation services provided to WADMC • MRTF was asked to evaluate and recommend • In addition, MRTF was asked to have the Booking Engine Committee analyze WHMA’s suggestion to merge the WADMC booking engine operations with the WHMA local call center.

  8. Timeline For Evaluation • April 11: Letter sent from ARES to WADMC asking for approval to work with WHMA • April 13: Robin Carson shares letter with MRTF group • April 18: Jim Kennedy shares letter at WADMC. WADMC asks MRTF to gather more information and report back at next WADMC meeting. MRTF establishes a sub-committee (Julie O’Neil (Chair), Robin Carson, Jody Puckett, Kristi Olsen, Sally McConnell, Susan Bak). • April 20: MRTF Sub-committee meets to review information and determines that we need something in writing from WHMA defining their purpose for wanting to work with ARES. • April 21: Phone message and email sent by Julie O’Neil to WHMA on initial items needed for MRTF to move forward. • April 22: Phone call with Priscilla, Billy and Julie O’Neil to verbally discuss needs, next steps, etc. WHMA Board approval has to happen before any documents can be sent which will take place on April 26. • April 26: Electronic proposal, call center budget, reservation summary sent to Julie O’Neil by WHMA. Then sent on to entire MRTF sub-committee to review prior to next meeting • April 27: MRTF sub-committee meets (1:30 p.m.) to review documents sent by WHMA . We now realize that we need to report back with 2 recommendations. 1. Response to letter from ARES and 2. The proposal from WHMA to handle our calls locally and give up their website. This will require more information gathering with WHMA and ARES. Julie shares update/next steps at 3:00 meeting with full MRTF team. • April 28: Conference call with Priscilla, Billy and Julie to discuss questions that came out of April 27 meeting and asked for revised documents to address our questions/comments. Also on this day an email was sent to ARES requesting similar items so that we can do a side by side comparison. • May 2: Received revised documents from WHMA. • May 3: Documents received from ARES. • May 4: MRTF sub-committee meets to put all the information together. • May 5-12: Final gathering of information • May 13: MRTF sub-committee meets with WHMA (11 a.m.) to all them to share their proposal with us verbally and iron out any questions or concerns prior to submitting recommendation next week. Sub-committee meets (12 p.m.) to go over analysis and finalize documents for entire MRTF group. • May 14: Recommendations sent to entire MRTF group via email • May 16: MRTF meeting (3 p.m.) to review any final questions. WADMC recommendations (4:30 p.m.)

  9. ARES Letter to WADMC • Key Factors: • Recognized through ARES letter the need to strengthen contract to close the door to potential conflicts • Only 12 WHMA properties are not already contracted with ARES • WADMC’s commissions ($45k in 2010) are reinvested in the campaign and no individual interest group benefits

  10. Key Factors Continued: Unnecessary disadvantage to WADMC to split commissions gained by existing ARES contracts MRTF recommends that WADMC does not sign letter of agreement with ARES allowing any additional organization to utilize the destination infrastructure as a separate entity. MRTF proposes amending the existing ARES contract to reflect above statement.

  11. Merging WADMC Booking Operations With WHMA Call Center

  12. WHMA Proposal

  13. WHMA Proposal *Cost for 2012 could be as much at $210,000 to operate WHMA call center for full year

  14. Evaluation of WHMA Proposal ARES based on 10 months versus WHMA 12 months

  15. MRTF Recommendation: • Proposal is not financially feasible • Would need to issue RFP if another call center is desired • Current ARES contract is in effect until December 31, 2011 • Happy with present call center MRTF does not support the recommended WHMA proposal

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