cdme survey results june 2013

CDME SURVEY RESULTSJune 2013

ANNUAL BUDGET

City A City H City G City F City B City E City D City C $-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

$120,000 $1,386,000 $1,500,000

$2,213,000

$3,809,384 $5,000,000

$7,400,000

$18,000,000

TBID TERM LENGTHS

1 DMO:• Annual extension

with no term limit

3 DMOs:• 5 years

2 DMO:• 10 years

1 DMO:• Indefinite

1 DMO:• In place until disestablished by

ordinance provisions

TOTAL HOTELS IN TBID

City E

City F City G

City B

City H

City D

City C

010

2030

4050

6070

8090

100

6

31

45 47 47

8290

TOTAL ROOMS IN TBID

City E

City F

City H

City G

City A

City B

City D

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

3,000 3,4524,077 4,139 4,500

5,896

12,000

TOTAL HOTELS & ROOMS IN TBID

City A

City H

City G

City B

City D

City E

City C

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$20

0,00

0

$25

5,00

0

$80

0,00

0

$91

4,12

2

$1,

900,

000

$3,

300,

000

$3,

500,

000

Room tax revenue DMO re-ceived in the last year of the pre-

TBID

City A

City H

City G

City B

City F

City D

City E

City C

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$31

0,00

0

$32

7,00

0

$80

0,00

0

$91

8,94

0

$1,

250,

000

$2,

100,

000 $

3,30

0,00

0

$3,

500,

000

Room tax revenue DMO re-ceived for most recent full fiscal

year

ROOM TAX REVENUE

Assessment of DMO Relationship with Municipalities/Government Entities Post-TBID

Relationship is some-what better than prior to

TBID; 29%

Relationship is about the same; 14%

Relationship is much better than prior to

TBID; 57%

Assessment of Municipalities/Government Entities’ Satisfaction with TBID

Very satisfied; 86%

Neutral; 14%

FUNDING SOURCES: MUNICIPALITIES/GOVERNMENT ENTITIES

Assessment of DMO Relationship with Hoteliers Post-TBID

Relationship is some-what better than prior to

TBID; 29%

Relationship is about the same; 57%

Relationship is somewhat worse than prior to TBID; 14%

Assessment of Hoteliers’ Satisfaction with TBID

Very satisfied; 86%

Somewhat satisfied; 14%

FUNDING SOURCES: HOTELIERS

How satisfied do you believe the assessed parties are with the INVESTMENT OF TBID FUNDS?

Of the six DMOs that responded, five believed the assessed parties were very satisfied. One

DMO thought the assessed parties were somewhat satisfied. Reasons listed include:

City B: Regular feedback during

TPA Commission meetings

City D: Booked room nights

City E: TBID hotels want to

increase assessment level

from 2% to 3% this year

City F: BID board input

City G: Room night sales

City H: Regularly communicate

Results

How satisfied do you believe the assessed parties are with the OVERSIGHT OF TBID FUNDS?

Of the five DMOs that responded, all five believed the assessed parties were very

satisfied with TBID oversight/governance. Reasons listed include:

City B: The hotels and Hotel/ Motel

Association appoints members

to the TPA Commission

City D: Execution of jointly identified goals & objectives

City E: Due to hotels wanting to

increase assessment percentage

City F: BID board input

City G: Room night sales

SATISFACTION OF TBID INVESTMENT & OVERSIGHT

Fron

tline

trai

ning

Cus

tom

er A

dvis

ory

Boa

rds

Wel

com

e C

ente

r/Vis

itor C

ente

r

Des

tinat

ion

med

ia p

lace

men

t

Even

t mar

ketin

g (s

peci

fic e

vent

s)

Even

t spo

nsor

ship

Staf

fing

(peo

ple

and

over

head

)

Des

tinat

ion

mar

ketin

g de

velo

pmen

t

Web

site

dev

elop

men

t/enh

ance

men

ts

Soci

al m

edia

eng

agem

ent

Trad

e sh

ow p

artic

ipat

ion

0

1

2

3

4

5

6

7

2 2 2

4 4 4 4

5 5 5

6

# of

DM

Os

OTHER EXPENDITURESThe TPA was established to increase group sales through conventions and sports. Expansion of marketing as long as it supports sales was allowed.All TBID revenues go to fund group salesSales and marketingFestivals and Events Grant Program

PROGRAMS FUNDED BY TBID FUNDS

NEW PROGRAMS IMPLEMENTED FROM TBID FUNDSDMO NEW PROGRAMSCity B Expansion of sales efforts, new shows, more staff, and marketing support for

sales were addedCity D All of our sales and marketing programs were enhanced significantly

City E We have been able to greatly increase our group sales efforts by adding people and programs. As a result group sales bookings have doubled since the TBID was formed.

City F Sports-Events department

City G Increased advertising and sales programs

RESTRICTIONS ON TBID FUNDSDMO RESTRICTIONSCity B Capital expenses, general overhead, and facilities are not allowed.City D The funds must generate more room nights at some point.City E Funds are spent on group sales but that can be changed by the TBID board.City F Cannot fund salariesCity G Cannot be used for bricks and mortar, only sales and marketing

PRE-TBID2% 3% 3%

5%

5%

5%

12%

15%

50%

POST-TBID1% 1%1%1%

3%3%

5%

10%

25%

50%

DEPLOYMENT OF MARKETING DOLLARS:City B

Destination marketing

development

Destination media placement

Trade show participation Event Marketing Event sponsorship Frontline Training

Customer advisory boards

Website development/Enhancements

Social media engagement Staffing Welcome center/

Visitor center Other

PRE-TBID POST-TBID

DEPLOYMENT OF MARKETING DOLLARS:City D


development







1% 1% 2% 2%5%

9%

10%

22%

48%

1% 1%2%2%4%

7%

13%

20%

50%

PRE-TBID POST-TBID

DEPLOYMENT OF MARKETING DOLLARS:City F


development







3%10%

10%

10%

10%

57%

2%10%

10%

28%

50%

PRE-TBID POST-TBID

DEPLOYMENT OF MARKETING DOLLARS:City G


development







5%5%

5%

5%

10%

15%

20%

35%

5%5%

20%

20%25%

25%

PRE AND POST-TBID EFFECTS ON ROOM TAX

Before the TBID launch

• Seven of eight DMOs responded that there was a room tax contract in place.

• Four DMOs had five-year contracts; one had a three-year contract; one had a one-year contract.

After the TBID launch

• All eight DMOs had room tax contracts in place.

• The term length stayed the same for all DMOs.

• The term length of the new room tax contract for one DMO was set for five years.

TBID APPROVAL MECHANISMDMO Approval MechanismCity A State enabling legislation; then City Council Resolution

City B The legislation was passed by state requiring that a petition be created to the local County Commission to pass local ordinance, then to create the TPA Commission appointed by the County Commissioners of hoteliers to determine the allocation of the funds.

City C City council approval based on support by the hotel community

City D Majority vote of hotels that reside in the district

City E Six hotel properties plus a special event venue (that has RVs and cottage rentals) approved the formation of the TBID. In accordance with state law, it was approved by the City after public hearings.

City F State Legislature created non-contiguous district. City established Resolution of Intent. Public hearing - 1st and 2nd readings. Posted 20 days - went into effect.

City G First, we sought buy-in from hotels. Once that was accomplished we did the paper work necessary and took it to City Council for approval.

City H State enabling legislation

TOT RATE FOR THE COMMUNITY

7% (City A) 3.3% (City B) 12.5% to 2% TID fee (City C)

12% (City D) 10% (City E) 1.5% tourism, 1% BBB (City F)

1% (City G)

TBID ASSESSMENT RATE & FORMULAS2% per room night (hotels 50+ rooms); same exclusions as

TLT, e.g. stays over 30 days, govt. (City A)

2% on gross room sales (passed through to the

visitor) (City E)

% of room rate of occupied rooms

(City D)

$2/room sold/per night, only hotels with 40+ rooms

(City G)

$2 for hotels with 60 and more rooms; $1

for those with 59 and less (City C)

$2/per room for all lodging facilities with 40 rooms or

more (City B)

$2 per room per night (City F)

MEASURING TBID SUCCESS

City B•Confirmed room nights booked, conversions from website based upon market survey and the incremental travel generated, visitor spending and attendees tracked are used as metrics

•Room night generation is the #1 priority

•Annual reports, supported by quarterly reports with hoteliers are shared.

•Shared annually

City C

• Convention Center Contract Goals

• ROI• Economic

Impact• Room Nights

City D•TBID effectiveness measured by convention sales, tourism room nights and economic impact

•Success determined by growing booked room nights on annual basis

•Everything tracked is shared with hotels

•Shared monthly

City E•TBID measured by room night bookings, leads, site inspections, client events and hotel engagement

•Success determined by more bookings and site inspections

•TBID hotels provided report on individual sales performance and areas where hotels participated; shares leads, bookings, site inspections and sales calls

•Shared monthly

City F•Measures are amounts collected through sales, BBB and BID taxes

•Taxes also determine criteria for success

•BID and BBB taxes shared with assessed properties

•Shared monthly

City G•Effectiveness measured by room nights

•Criteria of success is room night sales

•All measures shared with assessed properties except for individual property numbers

•Shared monthly

TBID GOVERNANCEOf the seven DMOs that responded to the

question, only the TBID Board governs TBID funds for five

DMOs. For one DMO, the TBID

funds are governed by the TBID and

DMO boards, for one DMO the TBID

board is a subset of the DMO board.

City C: Hoteliers who are also DMO Board members make up the

TBID Board

City D: The County Commissioners appoint hoteliers to serve on the TPA Commission. The

TPA commission is comprised of hotels recommended by the

Hotel/Motel Association.

City E: All assessed properties form the

TBID board.

City F: 7 hotel owners or general managers

City G: hotels based on # rooms category + 1 city

council man + 2 CVB Exec Committee members + 1 general business + CVB

Exec Director

City H: 5 – 7 hotel owners or designees with

representation across size of hotels

•“We have two TPA's within City B County and we'd prefer to have one.”

City B -- SCORE: 9

•“We changed the original TBID from a static rate to a % of room rate which is more fair and preferable to all parties.”

City D – SCORE: 10

•“The TBID revolutionized our sales operation and we have been able to generate significant results which is why the TBID hotels want to renew the program early and increase the assessment. To my knowledge, we are the only DMO that segregates their TBID into only group sales, which allows us to define a clear ROI for those assessed properties. If you engage hotels early in the process and demonstrate how the TBID can deliver very specific returns that are beneficial to them, hotels will support this as long as you continue to communicate with them and show how you are progressing. I strongly encourage every DMO to pursue a TBID as long as they follow a process that includes the hotels and that the effort doesn't appear to look like a money grab.”

City E – SCORE: 10

•“A few increased guidelines would have been in place. We would probably have increased the rate by at least a dollar.”

City F – SCORE: 9

•“We changed the original TBID from a static rate to a % of room rate which is more fair and preferable to all parties.”

City G – SCORE: 10

•“It’s relatively new. Still more growth to determine how to best take advantage of this.”

City C – SCORE: 8

•“Each year we conduct a stakeholder report card. Our rating is continually around 80%.”

City H – SCORE: 8

OVERALL RATING OF THE TBID FUNDING MECHANISM

cdme survey results june 2013

Documents

marketing programs

marketing support

expansion of marketing

group sales efforts

tbid board

tbid revenues

sales programsrestrictions

city efunds