HomeMy WebLinkAbout2018-04-18; Carlsbad Tourism Business Improvement District; ; AB-18-163 Tourism Marketing Services ProposalCARLSBAD TOURISM
BUSINESS IMPROVEMENT DISTRICT
AGENDA BILL
AB# 04-18-163 CTBID STAFF
MTG. 4-18-18 Tourism Marketing Services GENERAL
Proposal COUNSEL
RECOMMENDED ACTION:
Review Visit Carlsbad proposal and direct staff accordingly.
ITEM EXPLANATION:
(~ .
Since the inception of the Carlsbad Tourism Business Improvement District (CTBID), the CTBID
Board has contracted with Carlsbad Convention and Visitors Bureau 501 C-6 corporation (dba
Visit Carlsbad) to provide tourism marketing services for Carlsbad. The scope of those services
have included operation of the visitor center, web site development and administration, print and
internet advertising, public relations and various other tourism marketing activities identified in the
contract for that fiscal year.
The Visit Carlsbad Board has developed the 2018-19 proposed budget and program of work
presented at Exhibit 1. The CTBID Board should receive the report and discuss the proposal.
Following the discussion, if the CTIBD Board would like to contract with Visit Carlsbad to provide
these services for 2018-19, the CTBID Board should direct staff to bring back the contract for
adoption at the next Board meeting
FISCAL IMPACT:
For the fiscal year 2018-19, projected revenues for the CTBID are estimated at $1,300,000. The
total payment for these proposed services for the twelve-month period is $1,487,000. The CTBID
has a fund balance of $647,000.
ENVIRONMENTAL IMPACT:
This action does not qualify as a project under the California Environment Quality Act ("CEQA")
and will not have a physical adverse effect on the environment. (CEQA Regulation 15378(b).
EXHIBITS:
1. Proposed budget and program of work for tourism promotion services from Visit Carlsbad for
the period July 1, 2018 through June 30, 2019.
A. Visit Carlsbad Group Incentive Program
B. Visit Carlsbad planned tradeshows for 2018-19
DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2468, cheryl.gerhardt@carlsbadca.us
EXHIBIT 1
WS1~ b d
DMO%
Actual To DMO$ Chng cars a FY18 Proposed Chng btwn Budget Date btwn
FY18 Budget DMO FY19 FY18 and FY18 and
Budget FY19 FY19
INCOME
Public Sources
CTBID Revenues 1,077,535 830,078 1,088,000
Tradeshow Co-op Revenue 10,500 15,200
Adv. Commission 59
Reserve Fund 399,000
TOTAL INCOME $1,088,035 $845,337 $1,487,000 37%
EXPENSE
LABOR
Salaries
Officers 97,026 72,770 99,940 2,914 3%
Direct Labor
Public Relations 2,486, 2,486 (2,486} -100%
Visitor Services Mgr 37,477: 27,556 38,601 1,124 3%
Visitor Services Coard. 10,409 9,686 10,720 311 3%
Volunteer -Paid 1,132 1,302 2,000 868 77%
Group Sales Manager 60,000 60,000 100% (1)
Director of Group Sales 82,320, 63,563 84,790 2,470, 3%
Director of Marketing 70,000' 50,079 82,400 12,400 18%
Direct Labor -Total $203,823 $154,671 $278,511 74,688 37%
Benefits 37,675 33,435 65,000 27,325 73%
Sales Bonus 10,000 15,000 5,000 50%
Reorganization Expense . 25,000 25,000 (25,000} -100%
Works Comp 2,000, 2,882 4,000 2,000 100%
Payroll Taxes 21,600 19,482 30,000 8,400 39%
Total Labor $397,124 $308,239 $492,451 $95,327 24%
PROMOTIONAL PROGRAMS
Advertising & Production 10,000 7,298 (10,000)' -100%
Spring Ad Campaign 156,000 156,000 100% (2)
Research 6,000 6,000 9,000 3,000· 50% (3)
Outside Svcs-Digital Mktg 250,000, 153,845 250,000 _, 0% i
Outside Svcs-Dest. Brand Refresh 150,000 150,000: 100% (4)
Outside Svcs-Public Relations 110,000, 101,144 110,000 : 0% -'
Outside Svcs-Website Maint. 9,000' 14,719 (9,000) -100%
PR Integrated Campaigns 50,453
Total Outside Services $369,000 $320,161 $510,000 $141,000 38%
Public Relations Events 15,000 3,444 15,000 0%
Travel & Entertainment 8,000 5,507 6,300 (1,700} -21%
Dues & Subscription 1,000 8,011 9,000 8,000 800%
~{ls bad
Collateral Prod. & Fulfillment
Total Promotional Programs
GROUP DIRECT SERVICES
Technology
Memberships/Dues
Group Incentive
Sponsorship/Partnership
Marketing/ Advertising
Planner FAMs/Sites
Travel & Entertainment
Tradeshows
Group Direct Services -Total
GENERAL ADMINISTRATIVE
Bank Charges
Equipt. Rental & Maint.
Facility Repair & Maint.
General Liability Ins.
Office Supplies
Postage
Taxes
Telephone
Professional Services
Volunteer Program
Miscellaneous
Utilities
Computer Expense
Total G&A
TOTAL EXPENSE
OVER/(UNDER)
NOTES:
(1) Hiring of a group sales manager
(2) Winter/Spring advertising campaign
(3) STR rescarh and visitor profile
FY18
Budget
5,000
$414,000
9,000
2,000
50,000
36,000
10,000
50,000
5,000
101,000
$263,000
1,000
3,000
200
1,000
1,000
100
100
7,500
11,800'
1,300
2,000
2,400
2,000
$33,400
$1,107,524
$1,107,524
$19,489
(4) Refresh of the Visit Carlsbad brand identity
(5) Tradeshows and meetings
OMO%
Actual To OMO$ Chng
Date Proposed Chng btwn btwn
FY18 Budget DMO FY19 FY18 and FY18 and
Budget FY19 FY19
1,505 2,500 (2,500) -50%,
$351,926 $707,800 $293,800 71%
13,268 7,000 (2,000) -22%
445 1,000 (1,000) -50%
18,000 50,000 0%
11,223 35,000 (1,000) -3%
22,042 26,100 16,100, 161%
50,000 0%
7,714 10,000 5,ooo: 100%
98,260 72,000 (29,000). -29% (5)
$170,952 $251,100 (11,900), -5%
201 989 (11), -1.1%
2,637 3,200 200; 6.7%
1,229 200 0.0%
869 1,100 100 10.0%
1,762 2,700 1,700 170.0%
124 150 50 50.0%
99 110 10: 10.0%
711 10)000 2,500 33.3%
6,635 7,000 (4,800) -40.7%
1,581 1,800 500 38;5%
2,000 0.0%
1,445 2,400 0.0%
1,812 4,000 2,000 100.0%
$19,104 $35,649 2,249 6.7%
$850,221 $1,487,000 $379,476 34%
$4,884 $0
FY2019 --PROGRAM of WORK for LEISURE MARKET! NG and GROUP SALES -PROPOSED VISIT CARLSBAD Timing VC CTBID Strate~y and Ta~---_ _ _ _ 01 02 03 0~ __ B_ud_g_et Budget _ _ _ _ _ Co111m_ei_nts Prioritize and develop market intelligence on the leisure travel segment STR subscription to include key competitive markets ,J Ad effectiveness study to show ROI of ad campaign Manage digital marketing agency Program of Work ,J ,J PPC, navtive, programmatic, display, email, paid social Lead Generation for Meetings Market and Events v ,J Group leads/Site visits/FAMs/marketing/tradeshows Manage Public Relations Program of Work v v Including PR events/programs, media FAMs, active pitching PR Integrated Campaigns ,J 3 Integrated PR campaigns: Kidifornia 2.0, Colors of Carlsbd 2.0 and Camp Carlsbad Manage visitor publications and fulfillment ,J v Visitor center maps Earn unpaid media exposure through public relations ,J ,J Hosting of writers and hotel reimbusement costs Develop two advertising campaigns -Spring '19 v v Travel & Entertainment v ,J Partnerships & subscriptions with regional/national tourism orgs. ,J v Association memberships TOTAL MARKETING/SALES PROGRAM OF WORK v v v v v v v v ,J v v v ,J v ,J v v v v v 9,000 250,000 251,100 110,000 0 2,500 15,000 156,000 6,300 9,000 $808,900 9,000 STR Report, SDTA 250,000 Elevated 172,000 Group Direct and Events 110,000 Wagstaff Worldwide 0 Wagstaff Worldwide 2,500 4,000 0 6,000 8,500 $562,000 Elevated/In-house DMO FY19 Budget DRAFT v2.0 4/16/2018
v&ir..l b d cars a
Visit Carlsbad Group Incentive Program
EXHIBIT A
Visit Carlsbad is here to help connect you with the right hotel and ensure your successful meeting. Our team
can assist you throughout the planning process and will off-set your transportation w ith La Costa Limo or credit
your hotel master account in the following amounts:
$1,000 for 50-100 actualized room nights
$2,000 for 101-200 actualized room nights
$3,000 for 201-300 actualized room nights
-$4,000 for 301+ actualized room nights
$2,000 bonus additional to the amounts listed above will be given to events that actualize 750+ room nights.
Terms & Conditions
For new meetings with RFPs directly sourced through or qua lified* by Visit Carlsbad
Meeting to be held any month of the year.
This is valid for meetings happening prior to December 31, 2021.
For multi-year bookings, incentive will be paid for each year provided they are contracted at the same
time.
The amount is based on actualized room nights.
Cash incentives are to be paid to transportation company or the contracted hotel within 15 days of the
final meeting date. Payments will be made directly to the vendor only.
Incentives will be offered if budgeted funds are available and program is subject to change.
Does not apply to already contracted meetings.
Leads will be distributed to all eligible Carlsbad hotel properties based on lead parameters.
Visit Carlsbad reserves the right to end this incentive program at any time without prior notice.
The Visit Carlsbad Board of Directors agrees that Tamara McGiboney, Director of Sales, has expertise in Carlsbad as a
destination, as well as expertise in other popular destinations, and that her ability to leverage this expertise during
the sales process, can often make a difference between a Carlsbad property being awarded a contract over a
competing destination. Therefore, a qualified RFP not directly sourced through Visit Carlsbad is one in which:
1} The decision is between one or more eligible Carlsbad properties and any other non-Carlsbad destination;
2} The expertise by Visit Carlsbad cou ld he lp result in the decision being awarded to a Carlsbad destination
versus a non-Carlsbad destination;
3) Via Board-approved email format and before a contract is signed with any perspective Carlsbad property or
properties, Visit Carlsbad confirms participation in RFP process with proposed Carlsbad property or
properties.
EXHIBIT B
Planned tradeshows for 2018-19
CTBID DMO
EVENT DATE EVENT LOCATION Proposed Proposed
AUG 7-9 Luxury Meeting Summit Chicago, Mnpls, Indy $3,750 $3,750
AUG 23-25 Connect Marketplace Salt Lake City $0 $5,500
AUG 26-28 Smart Meetings East Natl Palm Beach $6,250 $6,250
OCT 15-18 IMEX America Las Vegas $0 $3,000
NOV 4-7 Elite Mtg Alliance Miami $0 $8,500
NOV14 All Things Meetings Oakland $1,000 $1,000
DEC 9-12 SITE SoCal Holiday Event Coronado $1,500 $1,500
DEC 13-16 Amex Interaction San Diego $1,000 $1,000
FEB 3-5 IPEC San Antonio $6,500 $6,500
TBD Connect SW Reno $0 $0
TBD Smart Meetings NorCal TBD $0 $4,000
MAR 3-6 ConferenceDirect APM Atlanta $7,500 $7,500
TBD MIC Tradeshow Denver $1,000 $1,000
TBD Smart Meetings NW Seattle $0 $0
MAY Destination California Monterey $5,500 $5,500
TBD Smart Meetings/Womens Summit TBD $0 $4,000
APR HelmsBriscoe ABC TBD $6,500 $6,500
MAY Smart Meetings West Natl TBD $6,500 $6,500
$47,000 $72,000
NOTE:
1. The tradeshow schedule is dynamic and may change durl~urs;; th;~ ~
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