Orlando Orange County Convention & Visitors Burea Report

With special emphasis on overnight visitation • Position Orlando as the premier worldwide meeting, convention and tradeshow destination in order to increase the economic impact and maxim

Orlando Tourism & Meetings Update

Gary C Sain

President & CEO

Orlando/Orange County Convention & Visitors Bureau, Inc.

Orlando/Orange County CVB Cost

Saving Initiatives 2009

•Salary freeze for fiscal year 2009

•Executive incentives program suspended

•One week mandatory furlough for all exempt employees, three

•15 open positions have not been filled for a savings of more

•Employee events suspended

•Reduced attendance at industry conferences and trade shows

•Suspended three percent voluntary contribution to 401(K) fund

•Emphasis on more cooperative partnerships to extend

•Negotiated reduced fees paid to agencies

•Decreased activity in tertiary markets (i.e Spain & Italy)

•Delayed online travel trade training for Mexico and Brazil

•Delayed hiring public relations firm in Brazil until last half of

2010

•Delayed hiring public relations firm in Mexico – 2010

Strategic Plan 2008-2010

• Increase awareness and intent to visit the Orlando area (Branding) With special emphasis on overnight visitation

• Position Orlando as the premier worldwide meeting,

convention and tradeshow destination in order to

increase the economic impact and maximize the full

potential of the destination

• Position Orlando as the premier worldwide leisure

destination in order to increase the economic impact and maximize the full potential of the destination

• Create a destination branding and marketing

organization that is best in class, with primary focus on high quality staff team members, cost effective resources and a strong engaged membership, in addition to a

strong board to achieve the mission

Forecast

• Total: 48.9 million visitors

• Leisure Travel Business

• 35.3 million domestic visitors

• 3 million international

• Business Visitors

• 3.5 million overnight Conventions/Meetings visitors

• 6.5 million other business visitors

• $30.1 billion in total Visitor Spending

• Domestic – 93% visitor share, 77% of visitor

Occupancy Rate Average Daily Rate

Source: Smith Travel Research

*Las Vegas does not report to STR, data was provided by LVCVA, September 2009

2009 Key Lodging Markets October 2009 year to date versus prior year

US Travel Association, TravelHorizons – May 2009 Source: IHS Global Insight, September 2009

• Orlando outperformed national travel trends in 2008, but is

forecasted to drop more sharply than overall travel in 2009

Slight decline for 2010

National and Orlando Forecasts

Mtg n/a n/a n/a n/a -4.5% -7.7% -15.2% -4.5%

Domestic Leisure Travel Outlook

• Travel Intention: 53% of U.S adults expect to travel

for leisure purposes between now and April 2010

• Future Orlando Visitation: 24% of October 2009

respondents plan to visit Orlando in the next two years,

up 6 percentage points from October 2008 (18%) Since

this research began in March 2007, future visitation to

Orlando in the next two years has ranged from 17% to

26% (peaked in July 2009)

• Reasons Not Visiting Orlando: The most common

reasons for October 2009 respondents that have never

been to Orlando and/or have no plans to visit Orlando in

the next two years are that it is too expensive (35%) and

economic conditions (29%)

Source: Travel Horizons

Source: Summer 2009 Outlook, U.S Travel Association

International Travel Outlook

• Slight increase in 2010 (primarily Canada/Latin

America)

• Many leisure visitors are keeping their primary

holidays and giving up shorter weekends

• South America visitation may deliver strongest

increases Brazil accounts for a third of all U.S visits

from South America Canada will become our

number one international market in visitor volume

by year-end

• More Accessible – New direct service from

Lufthansa, TAM, AerLingus, AeroMexico, JetBlue,

Mexicana, Martinair and TACA Airlines

• Orlando and the United States are still seen as a

good value due to the exchange rate

Meetings & Conventions

2009 Meetings & Conventions

Major Accomplishments

• Orlando Meetings Mean Business

• 1,000 Operation Connect calls

• Meetings & Conventions sales team has booked 1.3 million future attendees in a down economy

• Maintained number one position in medical market

• UCF telemarketing partnership

• 25th Anniversary meetings and conventions package

• Orlando & Washington, D.C Business Journal/25th Anniversary insert

• NPE Show/Plastics

• Participated in 47 tradeshows/sales missions

• MPI (Meetings Professionals International)

• Destination Meeting Services has produced more leads and referrals combined YTD in 2009 than in 2008

Current Issues Affecting M & C

• Competing destination incentives

• AIG effect (vacation/resort atmosphere)

• Government meetings (vacation/resort

atmosphere)

13 Source: U.S Travel Association

Released: September 2009

The Return On Investment

of U.S Business Travel

Business Travel ROI

Business Travel Hiatus Leads To…

The average business in the U.S would forfeit 17% of its profits in the first year of eliminating business travel It would take more than three years for profits to recover.

• Adverse effects on corporate performance

• Negative impact on profits

15

Profits with and without a

2-year suspension of business

travel

Source: Oxford Economics

Source: U.S Travel Association

Benefits of Business Travel

Conversion rate: Prospects to

Converting Prospective Clients

Roadmap 2010

• Partnering with the Orange County Convention Center on an

integrated citywide sales force pilot program 

• Vertical markets sales force structure with an emphasis on

corporate and SMERF meetings, including adding a new director of corporate accounts

• Developing an industry white paper on the future direction of

meetings

• Increased focus on key targeted accounts (citywides)/industry

involvement

• Increase focus on the corporate market

• Educational series for meeting planners

• Continue Operation Connect

New M&C Website

Government Market Initiatives

Corporate Market Initiatives

• C-Suite Program

• Target CEO, CFO, COO and CMO

• Fortune Magazine Wrap

• Online

• Personal Calls to Fortune 500 Companies

• Mayor Crotty Letter

• CVB Task Force Meeting

Medical Meetings Initiatives

• Medical Advisory Board

Increasing Face-to-Face Presence

2009 Major Bookings for Future Years

International Air Conditioning, Heating, Refrigerating

National Business Aviation Association Annual National Convention 2012 31,000

American Kennel Club Eukanuba National Championship 2011, 2012, 2013, 2014 and 2015 25,000 North American Association of Food Equipment

American Society of Health System Pharmacists Mid Year Clinical Meeting 2013 18,800 International Sanitary Supply Association ISSA/INTERCLEAN North America 2018 17,000 National Training and Simulation Association Interservice/Industry Training 2013 and 2014 16,500 American Academy of Family Physicians AAFP Scientific Assembly 2011 16,000 Produce Marketing Association Fresh Summit International Convention & Exposition 2016 15,500 American Chemical Society Semi Annual Spring National Meeting & Exposition 2019 15,000 Florida United Numismatists Incorporated Annual Convention 2012 and 2013 15,000

Leisure Marketing

Leisure Market Accomplishments

• Web site traffic up year to date 42 percent

• Generated 1.3 billion impressions from advertising

• Generated $40 million in advertising value from public

relations activity

• Created and launched “Orlando Makes Me Smile” Campaign

• Bundles of Free Smile card - 38,668 downloads year to date

• Developed strategic alliances and co-operative campaigns

with partners to extend marketing programs (Virgin

Holidays, iTravel2000.com & Travelocity)

• Dwight Howard advertisement

• Expanded our online travel agent training program

• Developed new online social networking pages to better

interact with consumers

• 67 Days of Smiles campaign

• Brazil consumer campaign

Impressions and Advertising Values through third quarter 2009

Bundles of Free Smiles

African American/Hispanic

Market Advertising

Fall Messaging

Free For Fall Deals

Fall Online Advertising

Girlfriends Search

67 Days of Smiles

Fall International Program

Orlando Makes Me Smile Globally

Brazil Print/Online

• Tour operators reported an increase of 30-100 percent in bookings

• Shared a broad offering and length of stay

United Kingdom Advertorial

Virgin Holidays AwardBronze Award – Best

Destination Partnership

Number One Golf Destination in

America

North American Golf

Destination of the Year

2010

Union Station Takeover

Newspaper Advertorial

Publicity and Promotions

Community Initiatives

Third Sino - U.S Tourism Directors

Summit

Education Initiatives

Jump at the Sun Job Shadowship Day

World Cup 2018/2022

NBA All-Star Game 2012

Advertising ROI

2007-2008 Domestic Return on

Investment (ROI)

D.K Shifflet & Associates, Ltd

Objective: Measurement of the campaign ROI based on

• Men and women 18 years or older with an annual household income of $35,000

or greater who had taken or planned to take a leisure trip in the past/next 12

months

Methodology

• Four initial campaign contact waves covered the Spring 2007 (TV & Print), Fall

2007 (TV & Print, & Drive Market), Spring 2008 (TV & Print), and Fall 2008 (Print

& Drive Market) to determine influence of advertising on intent to visit Orlando

has been completed

• Three re-contact waves fielded during the two year campaign to determined

how many of the ad aware respondents had visited Orlando

Source: ROI Research – D.K Shifflet & Associates, Ltd.

Key Measures 2007/2008

TYPE OF CAMPAIGN National TV Thru Spring 08 & Print Full 2 Years

Intended Incremental Conversion Rate 10.0%

Visited Orlando Since Seeing Ads 34.9%

2007-2008 Domestic Return on

Investment (ROI)