2004 IACVB/PDI CVB Research 101: Acquiring and Using Research

1. 2004 IACVB/PDI CVB Research 101: Acquiring and Using Research Kelly Repass Director of Research

2. Research Department’s Main Responsibilities Presentation Title • 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

3. External AccountabilityVisitor Industry Statistics

4. External Constituents Presentation Title • CVB members/hospitality industry • Board of Directors • Community partners • Political community • Media

5. Industry Performance Measurements Presentation Title • Visitor volume & travel characteristics • Quarterly domestic updates from D.K. Shifflet • Annual overseas updates from Tourism Industries • Analysis of various sectors

6. Metro Orlando Visitors 42.6 43.5 43.0 40.8 38.7 37.2 Sources: D.K. Shifflet & Associates, Office of Travel & Tourism Industries

7. Metro Orlando Visitors

8. Overseas Visitors vs. U.S. Market Share Source: U.S. Department of Commerce, Office of Travel and Tourism Industries

9. Industry Performance Measurements Presentation Title • Visitor volume & travel characteristics • Annual visitor profile reports • Economic impact • visitor spending, jobs, fiscal impact on city and county governments, tax savings for residents

10. Impact of Tourism Presentation Title • $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

11. Industry Performance Measurements Presentation Title • Visitor volume & travel characteristics • 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

12. Metro Orlando Monthly Occupancy2000-2003 YTD Source: Smith Travel Research

13. Metro Orlando Room-Night Demand% Change Current Month vs. Year Ago 2001: -8.4% 2002: 2.0% 2003: --% Source: Smith Travel Research

14. Orlando International AirportPassenger Traffic 6% -8% -6% Source: GOAA

15. Port Canaveral Cruise Passengers 13% -8% 32% Source: Canaveral Port Authority

16. Strategic Planning Efforts Presentation Title • 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

17. Communicating Research Information Presentation Title • 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

18. Communicating Research Information Presentation Title • 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

19. Internal AccountabilityDepartment Metrics

20. Department MetricsConvention Sales Staff Activity Presentation Title • Bids • Tradeshows attended • Sales calls • Outside sales trips • Clients/potential clients visited • Telemarketing efforts • Inquiries (phone, fax, e-mail)

21. Department MetricsConvention Sales Productivity Presentation Title • 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

22. Department MetricsDestination Meeting Services Presentation Title • 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

23. Department MetricsMembership Presentation Title • Members (#): current, new, reinstates, cancellations • Dues ($): • current, new, reinstates, upgrades, downgrades, cancellations • Reason for cancellations • Advertising sales ($)

24. Department MetricsPublic Relations Presentation Title • Publicity exposure • Clips • Circulation • Advertising equivalency

25. Department MetricsConsumer Marketing Presentation Title • 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

26. Consumer Marketing Marketing Campaign Measurement Presentation Title • 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

27. Consumer MarketingVisitor Information Kit Presentation Title • 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

28. Department MetricsInteractive Marketing Presentation Title • Consumer Web Site Activity • Unique user sessions, page views, avg. session length • Topical surveys on site

29. Department MetricsPromotions Presentation Title • Number of Promotions • Media Value • Geographic Markets • Circulation • Number of Impressions

30. Department MetricsVisitor Services Presentation Title • # walk-ins at visitor center • $ in-market ticket sales • $ merchandise sales • $ out of market ticket sales • # phone calls received • # e-mails processed • # housing calls

31. Industry Accountability and Standardization is Critical to Our Collective Success

32. CVB ACCOUNTABILITYIACVB Performance Measurement Initiative

33. Performance Measurement InitiativeThe 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)

34. Performance Measurement InitiativeImportance 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

35. Performance Measurement InitiativeMission To standardize CVB reporting practices by establishing definitions, guidelines, and metrics to provide meaningful comparative data

36. Performance Measurement InitiativeInterested Parties • CVB Management & Staff • Destination Stakeholders • Government/Funding Entities • Consultants & Auditors • Media

37. Performance Measurement InitiativeKey Projects • Uniform system of accounts(completed) • Convention market definitions(completed) • Convention & leisure sales productivity measurements • Return on investment

38. Performance Measurement InitiativeSales 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

39. Performance Measurement InitiativeSales 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

40. Performance Measurement InitiativeConvention Sales Productivity Measures • 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

41. Lead Bid Tentative Booking - hotel event Booking - citywide/conv. center event Lost Opportunity Cancelled Business Performance Measurement InitiativeRecommended Convention Sales Definitions

42. 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 Performance Measurement InitiativeRecommended Convention Sales Activity Measures

43. 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 Performance Measurement InitiativeRecommended Convention Sales Productivity Measures

44. 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 Performance Measurement InitiativeConvention Sales Measures - Next Steps

45. 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 Performance Measurement InitiativeLeisureSales Productivity Measures

46. 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 Performance Measurement InitiativeROI