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HomeMy WebLinkAbout2008-10-14; Carlsbad Tourism Business Improvement District; 10-08-36; Report from Reint Reinders & AsociatesCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# MTG. DEPT. 10-08-36 10-14-08 Admin Services Report from Reint Reinders & Associates CTBID STAFF GENERAL COUNSEL RECOMMENDED ACTION: 1. Receive report from Reint Reinders & Associates and provide direction to staff and Reint Reinders & Associates. ITEM EXPLANATION: The CTBID Board contracted with Reint Reinders & Associates (RR&A) to develop marketing strategies and programs that will strengthen the tourism activities within Carlsbad. This study was conducted during the months of April 2008 through July 2008. RR&A recommendations were presented to the CTBID Board at its August 26th meeting. At the August 26, 2008 CTBID Board meeting, the CTBID board extended the RR&A contract an additional three months. They requested that RR&A return to the Board on October 14th and present recommendations on the best strategy for deploying available CTBID funds for marketing the destination of Carlsbad. The Board's desire was to have RR&A develop a recommended strategy and budget for the remainder of the 2008-2009 fiscal year and for the 2009-2010 fiscal year with an eye towards spending all or essentially all of the CTBID revenues for enhanced marketing or branding efforts in order to increase occupancy from its current levels. The Board members' preference is marketing to reach the Frequent Individual Traveler (FIT) market. RR&A has outlined its recommended strategy for 2008-2009 at Exhibit 1. Recommendations for 2009-2010 will be provided at a later date. The CTBID Board should receive the report from RR&A and discuss the recommendations. Following the discussion, if the Board agrees with this plan, or if they choose to modify it, they should direct Reint Reinders & Associates to present a detailed work plan that would recommend appropriation of funds for the Board's consideration at the next meeting. If the Board does not agree, the Board should direct staff accordingly. The Board should also direct General Counsel to draft the necessary documents and agreements to hire Reint Reinders & Associates to implement the plan for Board approval at the next meeting. FISCAL IMPACT: The CTBID's 2008-09 Budget has a $220,000 contingency fund and a $390,000 available fund balance for a total of $610,000 in available funds. The estimated revenue for 2009-10 from the $1 per room night CTBID assessment is $900,000. ENVIRONMENTAL IMPACT: This action does not approve any projects that will have a physical adverse affect on the environment so it falls within the general rule under CEQA that this is not a project (CEQA Regulation 15738). EXHIBITS: 1. RR&A Report DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409, cgerh(o)ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. BOARD ACTION: APPROVED d CONTINUED TO DATE SPECIFIC D DENIED D CONTINUED TO DATE UNKNOWN D CONTINUED D RETURNED TO STAFF D WITHDRAWN D OTHER - SEE MINUTES D AMENDED D Exhibit 1 Xeintfieinders, CffA Jteintfieinders & Associates 12380 fiue Cbeaumont San Diego, CA 92131 Pbone: 619-^19-2831 reinttidreintremder*. com www. rzintnetnden, com Friday, October 03, 2008 RR&A Recommendations to/for CTBID Board At the August 26, 2008 CTBID Board meeting, RR&A was charged with the responsibility to return to the Board on October 14th and present recommendations on the best strategy for deploying available CTBID funds for marketing the destination of Carlsbad. RR&A has determined that currently CTBID funds have $220,000 in contingency and $390,000 in reserves. RR&A recommends that $160,000 needs to remain in reserves with an additional $100,000 for contingency. This would allow for immediate funding directed toward a marketing campaign of $350,000. Key Elements of the Plan Note: San Diego has just been named the #2 "family vacation destination" in the U.S. by Travel + Leisure Magazine. Huge opportunity exists for Carlsbad to position itself as the "preferred" or the "home" of family vacations within the S. D. destination Short term goal: spend the funds on marketing to help put leisure "heads in beds" in 2009 Long term goal: the positioning of Carlsbad as a highly desirable "family vacation" destination Target audiences: West Coast, L.A. County, O.C., Inland Empire, Las Vegas & AZ - - all prime feeder markets Media: very selected print, multiple Internet channels (OTAs - - online travel agents) and Blogs, Web 2.0, social media networks and tourism and travel writers; supplemented by a simultaneous very selected e-mail Blast campaign to penetrate the same feeder markets Budget: $350,000 Launch: 1st quarter of 2009 1. Plan to focus on driving leisure traffic, stimulate demand, convert into room nights 2. A total of $350,000 to cover all media and production costs 3. The dollars to be provided to the CCVB with RR&A to have oversight responsibilities on behalf of the CTBID Board 1 4. CCVB to form a marketing advisory committee of Carlsbad hoteliers to assist in the development of the plan 5. CCVB to engage a professional agency to produce creative, content, media selection and timeline 6. Heavy usage of Internet channels is strongly recommended 7. Work with Internet service provider to develop a micro site of a Carlsbad family package to include Legoland and many - - if not all - - Carlsbad lodging properties 8. Such a package would provide Carlsbad with "tiered" (small, limited service, middle-tier, luxury) opportunities and various price points 9. Media scheduled plan to be supplemented by a simultaneous very targeted e-mail Blast campaign to penetrate the same feeder markets RR&A will report on the plan's estimated R.O.I, at the November CTBID Board meeting. Substantial feedback RR&A would be remiss in not informing the CTBID Board that substantial feedback was received through various stakeholder interviews and meetings RR&A conducted since September 1st on strong dissatisfaction (with the CTBID Board) on lack of decision making as to how, where and when to disperse the necessary funds to support Carlsbad's marketing efforts. The overwhelming feedback was that the time is now - - considering the prospects for the lack of leisure business for the balance of the fiscal year. RR&A strongly urges the CTBID Board to release the $350,000 to support this program.