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Home My WebLink About2010-10-06; Carlsbad Tourism Business Improvement District; 10-10-59; Accept Report VisitCarlsbad Ending June 30, 2010CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# 10-10-59 Accept Report from VisitCarisbad for CTBID STAFF MTG. 10-06-10 Accept Report from VisitCarisbad for GENERAL 10-06-10 Period Ending COUNSEL DEPT. Admin June 30,2010 DEPT. Services June 30,2010 RECOMMENDED ACTION: Accept report from VisitCarisbad for period ending June 30, 2010. ITEM EXPLANATION: The CTBID contracts with VisitCarlsbad to provide various tourism services. A requirement of their contract is that they submit periodic reports on their activities and performance. Attached is their report for the period ending June 30, 2010. FISCAL IMPACT: None. 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 153789(b)). EXHIBITS: 1. Report from Visit Carisbad for period ending June 30, 2010. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-277-5203, chervl.aerhardt(a)carisbadca.aov FOR CITY CLERKS USE ONL Y. BOARD ACTION: APPROVED CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER-SEE MINUTES • AMENDED • •carisbad Visit Carlsbad End of Year Report FY 2009 to 2010 Sam Ross, Executive Director Introduction Fiscal year 2009 to 2010 was the first year the Carlsbad Convention and Visitors Bureau began doing business as Visit Carlsbad and under the direction of a new executive director and a smaller but very engaged board of directors. With a budget of $722,895 Visit Carlsbad's goals, as set forth in the Program of Work, were to: prioritize and develop market intelligence on the leisure travel segment, design and develop a new website-visitcarlsbad.com, deliver interactive marketing campaigns to increase traffic to the new website, develop partnerships and co-op advertising opportunities, manage visitor publications and collateral fulfillment, earn unpaid media exposure through public relations, contract for meetings market leads and bookings, manage the visitor center and its operations. FY2010 saw major shift in marketing strategy for Visit Carlsbad and its stakeholders. In previous years the majority of adverting dollars were spent on traditional advertising such as print. Working with the interactive advertising agency Mindgruve Visit Carlsbad continued on a course built firmly on a new dynamic website and interactive marketing. This Included pay-per-click advertising, online display advertising, social media, and email marketing. Visit Carisbad achieved unpaid media exposure from both regional and national outlets by attracting and hosting travel writers through concentrated public relations efforts. Fulfillment ofthe visitor guides and lure brochure were provided by long-time industry partner Certified Folder Display but this year Visit Carisbad pared down its distribution compared to FY2009 and concentrated primarily in the drive markets serving Carlsbad. To fulfill the group meetings obligation ofthe program of work Visit Carlsbad contracted with the San Diego North Convention and Visitors Bureau to provide sales support to the DMO. SDNCVB met the established sales goals and generated an estimated $661,050 in room night revenue for Carlsbad hotels. Visit Carlsbad, with the CTBID's investment of $722,895 of which $504,595 was for the destination's marketing, accomplished the following: Updated the destination's visitor profile study to better understand Carlsbad's market Launched a new dynamic website with Carlsbad's new branding look and feel Partnered with local tourism suppliers for packages, promotions, content and coop advertising Board directed to create content on visitor suppliers rather than invest on a portal Delivered an interactive marketing campaign that drove web traffic and hotel reservations to visitcarlsbad.com Contracted with SD North CVB and empowerMINT.com for the group meetings business Achieved unpaid media exposure from hosted travel writers Managed the visitor center and distributed 125,000 lure brochures and visitor guides Interactive Marketing Fy2010 continued the same marketing strategy for Visit Carlsbad started in FY2009. Instead of spending advertising dollars on traditional advertising such as print and large co-op programs Visit Carlsbad along with Mindgruve, an advertising agency specializing in interactive marketing, developed a new dynamic website and interactive marketing campaign that drove traffic from Carlsbad's drive markets of LA County, Riverside, Inland Empire area, Arizona, and Nevada to the site. The tactics used to drive this traffic were pay-per-click advertising, online display advertising, social media, and email marketing. www.visitcarisbad.com Dashboard Jul 1,2009-Jun 30, 2010 Comparing to: Jul 1, 2008 - Jun 30 2009 Aug 8 Sep to '0^13 'Nov 15 Site Usage 199,174vtaitt Piv-'ioin- 131,473 4<i^f,i 788,443 Pagevlews I Previcjs^ 430,735183.03%) 3.96 PaflesA/isit Previous: 3 28 !20 81%) Visitors Overview ' Feb 22 ' Mar 27 Apr 29 42.35% Bounce Rate 00:03:24 Avg. Time on Site Prfvn-«js 00 02 50 (If' "n%i 82.72% % New Visits Prpviws 85 24% {-2 95<l*i) Map Overlay 3.000 'Jul6 'AugS 'Sep 10'Oct 13 ' Nov 15'Dec 18 ' Jan 20 : Feb 23 Mar 27 Apr 29 Jun t Visitors 166,953 The first task was to develop a new website that would have the look and feel of the destination's new branding as well as be the centerpiece for the marketing campaign. In November of 2009 a temporary static "bridge website" was launched; this accomplished two things, first it helped in establishing the new branding look and feel for the destination and second it replaced a tired and underperforming website. In February 2010 the new visitcarlsbad.com website was launched followed by the launch of the interactive campaign to begin driving traffic to the new site. Visitcarlsbad.com CdnsDdd 72 Simr REPORT STAY EXPLORE DINE EVEKTS GROUPS G0» Family acatioWSpotrr TripAdvisor and its users have voted I -ill -!.,id, CA a top spot for family travel! Indulge in Top Vacation Getaways Every day, we find amazing new aeai: ;'«achside tioteis fo luxury nesotts, we re s..rf ,,, perfect Experience Unrivaled Resorts Cadsbad is hwne to Kitne of finest resorts and hot^s in Southem Califomia. Indulge yourself m fme dinmg. worid-dass spas, and {WBmier jotf cxjuses. Explore Beautiful Beaches with a perfectty misd climate and msies of spacious, sandy beacties. Cansbad offers a wonderful setting fw lows, sun worshipers and SiXlet%. Enjoy Family Fun From LEGOLAND® Calttomia to the San Di«go Zoo and SeaWofid, them arB mdless opficms far famV»s to oisate artd share itf^ong EXPLORE OUR TOWN iSCARLSBAD EVENTS CALENDAR To support the new website Mindgruve developed an advertising strategy based on pay-per-click, display advertising, and email marketing starting in and lunched the campaign at the end of February 2010; this will continue into FY2011. Once we began investing the dollars in online advertising visitor traffic, page views, and room revenue started to increase. The charts and graphs below show the impact of this strategy has had for visitcarlsbad.com. The fiscal year ended June 30*^ 2010 and the results of the new website and campaign accomplished what was set forth in the program of work. Year over year comparisons showed page views increased by 83%, unique visitor traffic increased by 48%, pages/visit increased by 21%, bounce rate decreased by 19%, and average time on site increased by 20%. Visitcarlsbad.com Web Statistics Visits Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Unique Visite Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun • FY Jul08-Jun09 m FY Jul09-Jun10 «soap«w«m ! 619 ?57 5325 . Room Nights Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Rovenue 70,000 52,500 35,000 17,500 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Room Nights Booked on the visitcarlsfoad.com Web Properties Month July 2008 * . July 2009 August 2008 [ eo i Se.960 August 2009 4 34 S54 839 September 2008 57 $6 247 September 2009 59 mm 1 ^ .^,™„™,.._„ J October 2008 45 i $S.57S October 2009 81 $6,216 [ November 2008 _ ^ ! 39 $9.0«i November 2009 33 December 2008 _ ^ ! 39 S4,430 December 2009 21 $1,^9 j January 2009 40 $4,910 Jariuary 2010 41 $sm \ February 2(X)9 t08 $12,925 February 2010 5S n.m 1 f-~ Mart* 2009 ' 2T? $^.141 March 2010 121 $15,177 April 20C® j • $33,744 A(^2010 225 m,m May 2009 1 342 T m $37,430 June 2009 446 $67,058 m Total 1,?54 $237,768 Total z,m $292,401 i -carisbad I mni^pmAm i S3«.?*MS2S \ mm.n7.im \ mMmmim.mmm.t^nm ^ Gristed Print Advertising & Special Promotions During FY2010 Visit Carlsbad anchored smaller co-op advertising programs with its hotel stakeholder in magazines and visitor guides but not to the extent that was done in FY2009. This helped in introducing the destination's new branding to the traveling public as well as generates traffic to the new website by way of special deals and offers. It also allowed hotel properties the ability to advertise in publications they couldn't have afforded by themselves. These publications include Sunset magazine. Budget Travel online deals alerts, the Unofficial Base Guide for Camp Pendleton, the San Diego Visitor Planning Guide, and the California Visitors Guide. Visit Carlsbad also advertised the destination in 0 Magazine in summer 2009 and fall 2009 for a girlfriends weekend getaway promotion that also included an online component. Because ofthe popularity ofthe magazine and website the advertising resulted in 5,521 leads coming to Visit Carlsbad requesting visitor guides. Another tool used to generate traffic to the website, develop opportunities and partnerships, and continue on-going communications with fans on Visit Carlsbad's Facebook page was email marketing to promote special offers and events. Mindgruve sent out six email communication blasts to our opt-in database (currently at 20,455 opt-in subscribers) throughout the year promoting upcoming events, hotel specials, and sweepstakes. One such event was the LPGA Kia Classic golf tournament held at the La Costa Resort & Spa in March 2010. The sweepstake was for a two night stay at a Carlsbad hotel and tickets to the tournament including the final match. The result was 882 entries with 577 signing up for the Visit Carlsbad newsletter. Visit Carlsbad's Facebook Page boriwdk Vtsit Carlsbad Walt inife Visitor l«fo Phmns Unk% bcach«s, C«ristWd offer* s «oniJ«irf«i M^'"q for lea ^ ROO 227 S722 5 00 5 00 Dm 10 00 an 4 00 pm 9:00 - 4 00 am 1 fTi*ndi \J(k* This C<»«t»» AO nmaaraptnr iFngAO^'»V^Vf^.*x!li com _ ^ • " Carhbad.. warm am) sunny mmt » ' Sj9n->4>ies«e iTyouaft ' OigikO OMOCM aM M ttww Va9 photography % Visit Carlsbad The wvather has been wonderful in Carisbad. wNcH r.».iy.tf d«a!» to htip you pUn your trio «rt> <f«vdopmt!»t antl tarn Voor mA » tpMOKtllMMa. Association {tvA*'s Thursoays Dn Thp t mj) today. Public Relations Public Relations efforts resulted in regional and national unpaid media coverage with articles appearing in Arizona Republic, Orange County Register, San Francisco Chronicle, Wall Street Journal newspapers and their associated travel websites. Magazine stories appeared in Women's World, AAA Westways, and OC Family. A number of travel journalist's websites and online magazines i.e. SIRKTVand Go World Travel also posted Carlsbad updates and stories. Public Relations hosted six travel writers, targeted a number of journalists with personalized one-on-one telephone calls and emails. Visit Carlsbad also participates in the ongoing California Travel and Tourism Commission's Media Outreach and attended a CTTC hosted media event in the Bay Area in the fall of 2009. Ongoing community communications include participation in various local events such as ArtSplash, and monthly tourism related articles appearing the Carlsbad Business Journal. THE ORANGE COUNTY IVtAJrlSllL Travel Writers Visited in FY2010 Goworldtravel.com -Janna Grabber Wall Street Journal online Travel Sections - Reporter Jennifer Levitz lnsidereel.wordpress.com (online blog) - Tim Wassberg OC Register.com/travel - Gary Warner OC Family - Kristen Schott LA Family-Jill Weinlein Group Meetings With an investment of $60,000 Visit Carlsbad contracted the San Diego North Convention and Visitors Bureau to provide group meeting sales for Carlsbad's conference and meeting hotels. The goal for SDNCVB was to provide 1,250 new room nights and 500 repeat room nights to Carlsbad. FYIO first quarter SDNCVB signed two accounts leading to 405 room nights being booked and $57,105 in estimated room revenue. In the second quarter SDNCVB signed two accounts and booked 883 room nights with an estimated $227,200 in room revenue. For the third quarter ending March 2010 SDNCVB signed six new accounts for 1,675 room nights booked and an estimated $187,730 in room revenue. By the end of Q3 year to date totals were 10 new accounts, 2,963 rooms booked, and $472,035 in estimated room revenue. Fourth quarter ended with one account and 727 room nights booked for estimated room revenue of $189,020. For the fiscal year ending June 30, 2010 SDNCVB booked a total of 3,128 new room nights, 562 repeat room nights for estimated total room revenue of $661,055. That is 250% over the new room night goal of 1,250 rooms and 112% over the repeat room night goal of 500 rooms. End of Year Report Summary Contracted Definite Accounts Booked Between July 1,2009 -June 30,2010 IstQtr 2ndQtr 3rdQtr 4th Qtr Total YTD Percentage of Goal Completed Total Accounts: 2 2 6 1 11 Total Room Nights: 405 883 1,675 727 3,690 Total Room Revenue (estimated): S57,105 S227,200 SI 87,730 S189,020 S661,055 Total On Property Revenue (estimated): S15,989 SI 12,980 S47,768 S94,510 S27U47 Total Property Revenue (estimated): S73,094 S340,180 S235,498 S283,530 S932,302 Contracted Goal U50 New Business Contracted Goal 500 Repeat Business Amount of Funding from BID (to date): 405 SI 5,000 883 SI 5,000 1,113 562 S15,000 727 S15,000 3,128 562 S60,000 250% 112% NOKTH SA\ Dirco \o?iTH CoNvf\TioN 6 VISITORS BUREAU Fulfillment ^ Distribution ofthe Visit Carlsbad lure brochure (75,000) and visitor guide (75,000) was much more concentrated compared to FY2009. This is due to a lower fulfillment budget as well as a strategy that focused primarily on digital advertising and Carlsbad's drive markets. The lure brochure was distributed to 1,036 sites throughout Southern California while the visitor guide reached travelers by way of five California Welcome Centers, San Diego visitor centers including ConVis' IVIC, San Diego International Airport, and the McClellan Palomar Airport. Fulfillment services were once again provided by Certified Folder Display. Lure Brochure Distribution Areas Visitor Guide Distribution Areas California Welcome Centers • San Francisco • Barstow • San Bernardino • Yucca Valley • Oceanside San Diego Visitor Center at Mission Bay SD International Visitor Center SD International Airport McClellan Palomar Airport California Welcome Centers 01 $ QTWUME Visit Information Center As part of its ongoing obligation and program of work Visit Carlsbad once again managed the day-to-day operations of the visitor center to provide information services to visitors and locals. For the second year in a row there was a decline in the total number of visitors coming into the center. 9,317 people visited the center in FY2010, a decline of -10.5% YOY%CHG compared to FY2009. This is substantially better than the year-over-year change between FY2008 and FY2009 which saw a decline of -41%. Visit Center Stats VIC stats - Q1 & 02 VIC Stats - Q3 & Q4 FY2010 Total VIC Stat US Visitors 3,923 US Visitors 5,394 US Visitors 9,317 Foreign 835 Foreign 1,223 Foreign 2,058 Total Visitors 4,758 Total Visitors 6617 Total Visitors 11,375 Email Received 776 Email Received 145 Email Received 921 Phone In 704 Phone In 765 Phone In 1,469 Letters 172 Letters 88 Letters 260 Lodging Referrals 344 Lodging Referrals 316 Lodging Referrals 660 Visitor Guides Sent 8,456 Visitor Guides Sent 2,115 Visitor Guides Sent 10,571 Activity Referrals 577 Activity Referrals 478 Activity Referrals 1,055 # of Volunteers 437 #of Volunteers 429 # of Volunteers 866 Volunteer Hours 1,326 Volunteer Hours 1,371 Volunteer Hours 2,697 Top 5 States Represented Califomia - Arizona - Texas - Nevada - Illinois Top 5 States Represneted California - Arizona - Washington - Colorado - Texas Top States Represented California, Arizona, Washington State, Texas, Colorado, Nevada, Illinois BRC Leads FY 2009 - 2010 JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL AAA 1 1 0 0 0 0 1 0 0 0 0 1 4 BUDGET TRAVEL 116 57 0 0 0 0 0 0 0 0 0 0 173 CA VISITORS GUIDE 54 191 131 91 2 0 23 2 121 1 0 96 712 FRIENDS & FAMILY 11 4 2 2 2 8 8 5 3 10 6 4 65 GO CAUF. COM 41 66 59 68 49 41 164 121 94 90 144 83 1,020 GORDONS GUIDE 21 17 11 8 0 0 0 0 8 12 6 9 92 INTERNET 275 189 124 126 62 0 1 114 3 5 154 119 1,172 LEGOLAND 0 1 0 0 1 0 1 4 0 0 0 0 7 NATL GEO TRVLER 117 42 0 0 0 0 0 0 0 0 0 0 159 NO REC/MISC/V.MAIL 19 15 9 11 4 2 10 4 2 7 7 7 97 OPRAH MAGAZINE 1,599 560 1315 517 922 291 317 0 0 0 0 0 5,521 SAN DIEGO NO CVB 14 2 3 6 6 0 4 0 3 1 0 0 39 SAN DIEGO TVLGUIDE 0 0 1 0 0 0 0 0 0 0 1 0 2 SUNSET MAGAZINE 163 63 470 321 94 50 41 16 9 5 98 28 1,358 TRAVEL 50 & BEYOND 470 15 0 0 0 0 0 0 0 0 0 0 485 TRAVEL AGT MAG 0 0 0 0 0 0 0 1 2 1 2 0 6 VACATION MAGAZINE 405 20 0 0 0 0 0 0 0 0 0 0 425 VALLEY PRESS 0 0 0 0 60 0 0 0 0 0 0 0 60 WHERE TO RETIRE 0 0 0 0 0 0 0 0 0 0 0 0 0 WOMEN'S WORLD 0 6 1 1 0 0 0 0 0 0 0 0 8 LAGUNA BCH VISIT CTR 1 0 0 0 0 0 0 0 0 0 0 0 1 WONDERLAND 1 0 0 0 0 0 0 0 0 0 0 0 1 LA TIMES MAGAZINE 0 1 0 0 0 0 0 0 0 0 0 0 1 LA MAGAZINE 0 0 0 2 0 0 0 0 0 0 0 0 2 CBAD MARATHON 0 0 0 0 1 0 0 0 0 0 0 0 1 WOMAN'S DAY 0 0 0 0 0 0 0 0 0 1 0 0 1 ROAD TRIP MAG 0 0 0 0 0 0 0 0 0 1 0 0 1 WE GO PLACES MAG 0 0 0 0 0 0 0 0 0 0 1 1 2 3,308 1,250 2,126 1,153 1,202 392 570 267 245 134 419 348 11,415 Financials For FY2010 Visit Carlsbad had a budget of $722,895 with $218,300 allocated to labor expenses and $504,595 allocated to marketing and visitor center operations. Through careful fiscal management and the reduction of unnecessary office and travel expenses Visit Carlsbad finished the year with a net income of $5,824. The income is from visitor center retail sales and ticket commissions from ARES. This is reflected in the year-end profit and loss statement but not in the budget vs. actuals. Total retail sales and ticket commissions equaled $4,116. VISIT CARLSBAD! CARLSBAD'S DMO FY2010 Profits Loss July 2009 - June 2010 •carisbad Total Income 700 Public Sources 701 CTBID Revenues 722,892.00 Total 700 Public Sources $ 722,892.00 705 Private Sources 706 Retail Sales 780.72 708 Advertising Sales / Commissions 3,334.92 Total 705 Private Sources $ 4,115.64 Total Income $ 727,007.64 Gross Profit $ 727,007.64 Expenses 800 Labor Expenses 801 Salaries - Officers 79,999.92 802 Salaries - Direct Labor 102,649.44 803 Employee Benefits 18,288.20 804 Workers Comp. Insurance 2,678.92 805 Vacation Time Expense 2,340.88 806 Payroll Tax Expense (SUI, FUTA) 14,914.90 Total 800 Labor Expenses $ 220,872.26 900 Promotional Programs 901 Advertising & Production 47,093.38 902 Research 2,800.00 903 OutsideServices 903.1 Interactive Marketing 304,906.26 903.2 Group Direct Services 60,000.00 Total 903 OutsideServices $ 364,906.26 904 Travel & Entertainment 7,717.26 905 Dues & Subscriptions 9,709.75 906 Collateral Prod. & Fulfillment 27,835.63 Total 900 Promotional Programs $ 460,062.28 907 Bulk Mail 6,299.61 950 General Administration Expenses 951 Bank Service Charges 846.86 952 Equipment Rental & Replacement 5,882.73 953 Facility Repairs & Maintenance 85.58 954 General Liabilty Insurance 2,294.00 956 Office Supplies 4,700.22 957 Postage 750.00 958 Taxes - General 45.00 959 Telephone 6,020.67 960 Professional Services 7,040.00 961 Volunteer Program 1,989.01 962 Miscellaneous Expenses 1,068.83 963 Utilities 3,008.98 964 Computer Expense 217.69 Total 950 General Administration Expenses $ 33,949.57 Total Expenses Net Operating Income Net Income Cash Basis 721,183.72 5,823.92 5,823.92