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Home My WebLink About2015-02-17; City Council; 21859; 2015 Carlsbad Industry Tourism Study by Strategic Advisory GroupTOURISM INDUSTRY STUDY FINAL REPORT Prepared for the City of Carlsbad February 17, 2015 Prepared by Strategic Advisory Group 1 Presentation Overview •Overview of objectives and process •Research conducted •Recommendations •Implementation Timeline •Next Steps •Questions 2 Overall Objective •Conduct a collaborative, research based study •Review current practices •Develop recommendations •Focus on measurement and producing results •Create Implementation plan 3 Broad Based Participation •Over 75 stakeholders engaged in process •Active steering committee •Input from current key vendors •Input from regional users •Consistent Communication –Monthly updates Carlsbad City Council Steve Sarkozy, City of Carlsbad Kathy Dodson, City of Carlsbad Christina Vincent, City of Carlsbad Christie Marcella, City of Carlsbad Kevin Pointer, City of Carlsbad Cheryl Gerhardt, City of Carlsbad Tim Stripe, Grand Pacific Resorts Renato Alesiani, Wave Crest Motels and Resorts Randal Chapin, Carlsbad Inn Beach Resort Tom McMahon, Carlsbad Village Theater Ryan Ross, North County Transit District Nancy Nayudu, Pelican Cove Inn Joli Hatch, Carlsbad Inn Beach Resort Peter Kock, LEGOLAND California Valerie Barnes, LEGOLAND California Randy Chapin, Grand Pacific Resorts Joe Anderson, Grand Pacific Resorts Ted Owen, Carlsbad Chamber of Commerce Hector Becerra, Carlsbad by the Sea Bill Canepa, Wave Crest Resorts Celine Cendras, Henry Schein Ortho Organizers Michael Collins, Zimmer Dental Josh Cantor, California Watersports Terri Howard Mannes, Carlsbad Premium Outlets Steve Gibson, Urban Place Consulting Ashley Westman, Urban Place Consulting Stephen Morisseau, GIA Jim Caraccio, Logic PD Tim Sinnott, Legend 3D Jason Mclaughlin, Park Hyatt Aviara Renier Milan, Beach Terrace Inn Sam Ross, Visit Carlsbad Gary Glaser, The Crossings Regie Brown, Hilton Peder Norby, City of Carlsbad Kim Akers, West Inn & Suites Denise Chapman, Omni La Costa Vikram Sood, Hilton Oceanfront Julie Zahner, Sheraton Carlsbad Cheryl Landin, LEGOLAND California Peter Ronchetti, LEGOLAND California Thank You 4 RESEARCH PROCESS 10-month inclusive process 5 Research Process Overview •SAG conducted extensive stakeholder inclusive research •4 focus groups •2 industry and regional stakeholder surveys •Monthly email communication outreach and updates •Weekly internal check ins with the City and CTBID designees •Individual stakeholder one on one phone calls •SAG reviewed past research reports •SAG also completed extensive benchmarking research •Demonstrated level of underfunding •Compared Carlsbad to 9 other destinations •Recommended ongoing research plan 6 7 SAG Research Past Research Competititive Destinations Stakeholder Focus Groups Stakeholder Survey Regional Stakeholder Survey Nielson Lifestyle Analysis Online Data /Resonate MINT Search -Group Market Research Process Overview RECOMMENDATIONS All recommendations are supported by research and stakeholder feedback. 8 Recommendation Overview Improve The Carlsbad Experience Finalize a Funding Strategy Create a Unified Approach to Governance Create and Implement a new Group Sales and Marketing Effort Refocus Target Markets for Leisure travel Institute a New Approach to Measurement and Reporting Develop a Highly Targeted Approach for Leisure Sales and Marketing Reallocate Marketing Resources –Group vs. Leisure Transient Re-Focus a Majority of the Tourism Resources on Impacting the Shoulder Season 9 Shoulder Season Focus •SAG recommends that the majority of the tourism marketing resources focus on the shoulder season •Currently a high percentage of all marketing efforts and spending are focused on the summer •Hotel occupancy is over 80% during the summer •Carlsbad would benefit greatly from an increase in occupancy in the shoulder season (September-March) 10 89%84% 65%63%60% 52%58%65% 75%81% 72% 84% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun FY 2013-2014 Occupancy by Month Need Period Group Sales Allocation •SAG recommends that the tourism marketing expenditures be split 50-50 between leisure and group sales efforts •Currently 90% of the marketing resources are dedicated to leisure efforts •Carlsbad will benefit if a group sales effort is developed and funded 11 2% Leisure -Interactive Marketing (Includes PR) 83% Group Direct Sales (Ear marked)10% 3%1%1% Sales & Marketing Expeditures (current FY15) Research Leisure - Interactive Marketing (Includes PR)Group Direct Sales (Ear marked)Travel & EntDues & Subscriptions Collateral Production & Fullfillment 2% Leisure -Interactive Marketing (Includes PR)45% Group Direct Sales (Includes Salary)50% 1%1%1% SAG Proposed Sales & Marketing Expenditures Research Leisure - Interactive Marketing (Includes PR) Group Direct Sales (Includes Salary)Travel & Ent Dues & Subscriptions Collateral Production & Fullfillment Target Markets –New Focus •SAG recommends refocusing the marketing efforts to attract new and different visitors •Carlsbad is focused on families with children and has reached capacity for this segment in the summer •Nielsen Lifestyle segmentation analysis shows there is growth potential for the following markets during shoulder season •Suburban older couples without children and a median household income of $110,000 “Upper Crust” •Urban households with older children with a median household income of $88,000 “Money & Brains” •Urban couples over 55 without children in the house; with a median household income of $58,000 “The Cosmopolitans” •This will support the shoulder season growth 12 Direct Marketing –Targeted Approach •Move to a direct marketing approach rather than broad awareness campaigns •Utilize Nielsen segmentation research, market directly to specific segments •Drive broad based awareness will require significantly more marketing funds •Direct marketing allows campaigns to be tracked effectively •Create specific Carlsbad experiences to market and sell •Direct Marketing will focus on driving shoulder season visitation •Recommend multiple mechanisms for tracking/measuring success •Institute a more targeted public relations approach 13 Measurement & Reporting •Developed potential first year annual goals •“Trackable” incremental visitors due to sales and marketing efforts •Focus is on conversion as an indicator of success. •Room nights –Economic Impact •Specifically tied to tourism activities •Online tools with hotel engagement is critical 14 0 500 1000 1500 2000 2500 3000 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Room Nights Booked Through Visit Carlsbad Booking Engine Room nights booked Booking engine can be an indicator of progress Group Sales and Marketing •New Group Sales effort •Components outlined with initial budget and goals •New position recommended •Initial goals developed •Emphasis on uncovering new clients and getting them to visit Carlsbad and ultimately bring their meeting •Task force participated in development •Commitment to stay engaged •Raise awareness of Carlsbad as a group destination 15 Governance •Creation of a singular unified Governing Body •Collective accountability •Consolidate budgeting and goal setting process •Development of active committee structure •Support new group sales initiative •Oversee refocused leisure sales and marketing efforts 16 17 Carlsbad City Council SR City Attorney City Staff CTBID/Visit Carlsbad Board Visit Carlsbad Executive Director Staff Outside Vendors Committees Financial Oversight Committee Industry Reporting & Communication Committee Leisure Sales & Marketing Committee Group Sales & Marketing Committee Event Program Governance Funding Options •Funding recommendations for growth •Increase or reallocate TOT •Expand current TBID to include related industries •Increase current TBID fee structure •New funding plan will support increasing frequency •Stakeholder feedback •No interest without involvement and new direction 18 $174 $230 $370 $429 $678 $696 $1,131 $1,169 $1,304 $1,388 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Carlsbad Coronado Oceanside Monterey Del Mar SantaMonica SantaBarbara LagunaBeach HuntingtonBeach NewportBeach Budget & Total Rooms Ratio The Carlsbad Experience •Identified opportunities to enhance current experience •Carlsbad Lagoon •Unified new experience •Beach Camping •Improve overall aesthetics •Transportation •Connect Carlsbad experiences •Conference/Event Center •A potential new demand generator •Carlsbad Village •Opportunity to collaborate and leverage resources 19 Conclusion •Stakeholders are engaged and interested in new direction •Recommendations designed to re-focus efforts •Create clear accountability •New measurement approach -focus on conversion •New success indicators •Room nights generated •Economic Impact •Research based target markets •Opportunity to create Carlsbad experiences and market directly to identified segments •Impact shoulder season visitation •Requires leadership •Elected Official support •Unified Board and active stakeholders •Focused staff effort •Visit Carlsbad and City of Carlsbad 20 Implementation -Timeline 21 Implementation Timeline by Month City of Carlsbad Tourism Industry Study Recommendation Action Timeline Task Description FebruaryMarchAprilMayJuneJuly (FY 15-16)AugustSeptemberOctoberNovemberDecemberJanuary (CY)FebruaryMarchAprilMayJuneJuly (FY 16-17)AugustSeptemberOctoberNovemberDecemberJanuary (CY)FebruaryMarchAprilMayJuneJuly (FY 17-18)Final Recommendations/Transition/Communication SAG Presents Recommendations and City Council Direction Approval Strategic Implementation Session - City, CTBID and Visit Carlsbad ---- Develop Implementation Task/Committees ---- Implement Monthly Stakeholder Communications ---- Send First Outreach to Stakeholders ---- Research Plan Research Plan for 2016-2017 -------- Finalize Approach Meeting Planner Survey -------- Visitor Profile Survey -------------------------------- Benchmarking Study ---------------------------------------- Target Audience Study ---------------------------- Research Plan Ready for Implementation ---------------------------------------------------- Resource Allocation Confirm Leisure Direction: Target Markets for Shoulder Season ------------ Confirm/Finalize Revised Budget for Leisure Marketing ------------ Confirm Leisure Marketing Vendors for 2015-2016 FY ------------ Leisure Sales & Marketing Finalize Leisure Goals for 2015-2016 FY ------------ Develop Direct Marketing Campaigns for Selected Shoulder Season Targets -------------------- Create Specific Packages and Experiences for Selected Segments ------------------------ Group Sales Plan Confirm/Approve Group Sales Plan ------------ Form the Group Sales Oversight Committee ---------------- Approve Vertical Markets ---------------- Finalize Group Sales Goals ---------------- Finalize Job Description for Business Development Manager ---------------- Obtain and Implement a Sales & Marketing Software Platform ------------------------ Hire Business Development Manager ---------------- Complete Feasibility Study for Conference Center ---------------------------------------------------------------------------------------------------- Governance Finalize Legal Process to Unify Governance -------- Nominate and Finalize New Board Members -------- Revise and Finalize Board Mission -------- Develop Four Committees: Finance, Communication, Leisure Sales & Marketing and Group Sales & Marketing ------------ Measurement Finalize and Approve New Metrics for Leisure and Group Sales ------------ Funding Increase TOT rate to 12%---------------------------------------- Approve 10% Allocation of TOT to Fund Tourism Marketing ------------------------------------------------ Develop Additional Partners for Tourism Assessment -------------------------------------------------------- Create and Approve Percentage Assessment for Partners -------------------------------------------------------- Increase or Modify CTBID Fees -------------------------------------------------------------------------------------------------------- Tourism Product Development Begin Planning Transportation System with Carlsbad Village as Potential Partner -------------------------------- Transportation Contractor in Place -------------------------------------------------------- Transportation System Operational -------------------------------------------------------------------- Complete Negotiations with Lagoon Property Owners for Rights to Expand the Tourism Product ------------------------------------------------------------ NRG, YMCA, California Watersports ------------------------------------------------------------ Negotiate New Terms and Conditions of the California Watersports Vendor Agreement ------------------------------------------------ Complete Feasibility Study for the Lagoon Capital Project ------------------------------------------------ Initiate Discussion with the State Department of Recreation and Parks for Beach Camping Improvements ------------------------------------ Beach Camping Improvements Plan Approved -------------------------------------------- Beach Camping Improvements Implementation -------------------------------------------------------------------- Next Steps •Implementation plan -short to long term timelines •Update Council on progress •Work with CTBID •Management recommendations •Marketing recommendations •Council direction to work with CTBID •Increase revenues/funding recommendations •Council direction to bring back any of the “Carlsbad Experience” amenities 22