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09 - Visit Newport Beach, Inc. FY 2024 Destination Business Plan Supplement and Budget, and FY 2023 Performance Standards Report
Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report July 25, 2023 Agenda Item No. 9 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Tara Finnigan, Assistant City Manager - 949-644-3001, tinnigan@newportbeachca.gov PREPARED BY: Melanie Franceschini, Management Analyst mfranceschini@newportbeachca.gov PHONE: 949-644-3028 TITLE: Visit Newport Beach, Inc. FY 2024 Destination Business Plan Supplement and Budget, and FY 2023 Performance Standards Report ABSTRACT: Visit Newport Beach, Inc. (VNB), a business unit of Newport Beach & Company, provides destination marketing services to the City of Newport Beach (City) under an agreement for Tourism Promotion, Branding and Marketing Services. Under the terms of the agreement, VNB is required to submit certain records to the City Council for its review and/or approval. Newport Beach & Company has submitted the Fiscal Year (FY) 2024 Destination Business Plan Supplement and Budget for the Council's review and VNB's FY 2023 Performance Standards Report for the City Council's review and approval. RECOMMENDATIONS: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Review, receive and file the FY 2024 Newport Beach & Company Destination Business Plan Supplement; c) Receive and file the Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2023 Performance Standards Report; and d) Review and approve the Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2024 Budget. DISCUSSION- VNB, a nonprofit organization (under IRS code §501(c)(6)), is the destination marketing organization for Newport Beach. Under an agreement with the City, VNB provides marketing services to the City and community using transient occupancy tax revenues. 9-1 Visit Newport Beach, Inc. FY 2024 Destination Business Plan Supplement and Budget, and FY 2023 Performance Standards Report July 25, 2023 Page 2 The agreement was entered into on September 27, 2011. It was amended in January 2014 to extend the term to December 31, 2024, switch from an annual to biennial budget, update contact information and add public benefit funding. The City Council approved a second amendment to the agreement in August 2014 to change the reporting timeline for the Performance Standards (Attachment C), Marketing Goals and Marketing Plan from annual to biennial to correspond with the biennial reporting timeline. The VNB Board of Directors met on May 25, 2023, to approve the Destination Business Plan Supplement and Budget (Attachments A and B) for FY 2024. After the close of the fiscal year, VNB staff updated and reworked the performance standards report (Attachment C) required under its agreement with the City to better demonstrate the annual performance metrics it has adopted for its international sales and marketing campaigns. The FY 2023 Destination Business Plan Supplement and Budget was received by the City in June. The Performance Standards Report was received in July. FISCAL IMPACT: Under its Agreement with the City, VNB received 18% of all Transient Occupancy Tax collected by the City to fund destination marketing services and activities. VNB projects it will receive approximately $6,706,147 in TOT funding in FY 2024 (Attachment B). The FY 2023-24 estimate is approximately 4.7% lower than the City's estimate of $7,021,350, as included in the FY 2023-24 General Fund budget. =1ki1V/1:T910IJil=110kC NNANIATITE Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. �[0��[�I1rev The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — FY 2024 Newport Beach & Co. Destination Business Plan Supplement Attachment B — Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2024 Budget Attachment C — Visit Newport Beach, Inc. FY 2023 Performance Standards Report 9-2 NEWPORI Iq BEACH & COMPANY FY 2023-2024 SUPPLEMENT NEWPORT BEACH & COMPANY DESTINATION BUSINESS PLAN A FRAMEWORK FOR TOURISM ECONOMIC RECOVERY & ELEVATED LUXURY PRODUCTS & EXPERIENCES IMPACT OF TOURISM IN NEWPORT BEACH IF YOU TOOK THE TOURISM INDUSTRY AWAY FROM NEWPORT BEACH... TO KEEP NEWPORT BEACH GOVERNMENT SERVICES FLOWING AT THE SAME LEVELS: IT WOULD COST EVERY NEWPORT BEACH HOUSEHOLD AN ADDITIONAL $1913 9 IN TAXES PER YEAR. TO KEEP THE NEWPORT BEACH ECONOMY CHURNING AT THE SAME LEVELS: IT WOULD COST EVERY NEWPORT BEACH HOUSEHOLD AN ADDITIONAL $439922 IN ADDITIONAL LOCAL SPENDING PER YEAR /RFNAIS INTRODUCTION 02 EXECUTIVE SUMMARY 03 NEWPORT BEACH & COMPANY OVERVIEW 04 FY 2024 BUDGETS 06 FY 2024 GOALS 08 NEWPORT BEACH & COMPANY THREE-YEAR STRATEGIC PLAN AUDIENCE -BASED BUSINESS PLANS 09 AUDIENCE OVERVIEW 10 LEISURE TRAVELER BUSINESS PLAN 20 MEETING PLANNER BUSINESS PLAN 26 LOCAL COMMUNITY BUSINESS PLAN 30 CORPORATE BUSINESS PLAN GOVERNANCE 34 EXECUTIVE COMMITTEE & BOARD OF DIRECTORS 35 NEWPORT BEACH & COMPANY TEAM 9-5 VISIT NEWPORTBEACH.COM As Newport Beach & Company enters the second year of our two-year business planning cycle, we present this updated FY 2023-2024 Destination Business Plan Supplement that outlines our revised objectives, strategies, goals and budgets. Continuing to raise the bar, Newport Beach & Company challenged its team to develop bold, strategic, and creative programs to build on successes and momentum of this past fiscal year. And the successes have been smashing. Our relentless efforts in FY 2023 driving tourism, group business and developing breakthrough marketing campaigns has set record -setting tourism -occupancy tax (TOT) collections, raising average daily rates (ADR), which have now surpassed 2019 pre -pandemic levels and outpacing nearly our entire competitive set. We're continuing to see growth on the sales side, with a robust sales team offering more value than ever before and providing both a product and experience clients are looking for. With an ever-expanding portfolio into further luxury segments, along with a greatly anticipated opening this fall of Montage International's Pendry, further immersion into the uber-luxury segments has begun. On the marketing side, the team successfully created and executed nearly a dozen integrated leisure and community event campaigns which drove strong visitation and economic impact to the destination. We are proud to have regained our place back on the world's stage, debuting Newport Beach in London through a weeklong brand activation. Additionally, we executed two star-studded, brand -defining events with Variety magazine and the Newport Beach Film Festival. As an organization, our recent renovation project has transformed the office space into a true reflection of Newport Beach's identity, embracing the highly successful hybrid model and putting employee engagement and recruitment at the forefront. As we embark on the second year of our two-year business planning cycle, we will not rest on our laurels and have set new ambitious strategies and goals to raise the bar even higher. We look forward to marketing and promoting Newport Beach to attract discerning visitors that keeps local businesses thriving, create jobs, bolsters the economy and generates millions of dollars in economic impact that improves the quality of life for the community. 4P(PC___ Gary C. Sherwin, APR, CDME President & CEO Newport Beach & Company Debbie Snavely Chairperson Newport Beach & Company FY 2023-2024 BUSINESS PLAN NEWPORT BEACH & COMPANY NEWPORT BOARD OF BEACH DIRECTORS FOUNDATION FINANCIAL/ COMMUNITY ADMINISTRATIVE PRESIDENT/ LEADERSHIP k TEAM CEO DEVELOPMEN BRAND MARKETING TEAM 03 DINE VIDEO NB AP HRT NBA HEWPORT _ NBEACH ENBEACH EWPORTCELEBRATE NEWPORT LIFESTYLE BEACH VIDEO TV PRODUCTION VISIT NEWPORT BEACH INC. (TBID) GROUP SALES & MARKETING FY 2024 VISIT .O. GROUP Revenue $4,730,373 Operating Expenses $2,946,865 Advertising $646,500 Community Relations $80,000 Digital Marketing/Website $174,600 PR/Communications $40,000 International Marketing Initiatives $77,000 Trade Shows $523,400 Sales Group Enhancement Credit $380,000 Hosted Industry Events $64,000 Industry Partnerships/Sponsorships $171,700 Site Inspections $35,200 Client Events $356,500 Conference Services $2,000 Database/Prospecting $150,000 Special Promotions/Marketing Collateral $16,250 Customized Destination Support $530,000 0% ■ ADVERTISING ■ COMMUNITY RELATIONS ■ DIGITAL MARKETING/WEBSITE ■ PR/COMMUNICATIONS ■ INTERNATIONAL MARKETING INITIATIVES ■ TRADE SHOWS ■ SALES GROUP ENHANCEMENT CREDIT ■ HOSTED INDUSTRY EVENTS ■ INDUSTRY PARTNERSHIPS/SPONSORSHIPS 1% ■ SITE INSPECTIONS ■ CLIENT EVENTS ■ CONFERENCE SERVICES ■ DATABASE/PROSPECTING ■ SPECIAL PROMOTIONS/MARKETING COLLATERAL CUSTOMIZED DESTINATION SUPPORT FY 2023-2024 BUSINESS PLAN • ; VISIT NEWPORT BEACH, INC. (TOT) LEISURE FY 2024* NEWPORTVISIT LEISURE BUDGET ALLOCATION Revenue $6,836,147 Operating Expenses $109,670 Advertising $2,965,200 Community Relations $199,000 Event Marketing $275,500 Collateral $132,000 International Marketing $497,225 Digital Marketing $670,000 PR/Communications $935,000 Fees and Contributions to Newport Beach & Company $2,830,529 ■ ADVERTISING ■ COMMUNITY RELATIONS ■ EVENT MARKETING COLLATERAL ■ DIGITAL MARKETING ■ PR/COMMUNICATIONS NEWPORT BEACH & COMPANY FY 2024* BUDGET ALLOCATION NEWPORT $3,097,715 Operating Expenses $2,746,765 Advertising $194,450 Community Relations $87,500 Collateral $18,750 Website $250 PR/Communications $50,000 ■ COMMUNITY RELATIONS ■ EVENT MARKETING ■ COLLATERAL ■ WEBSITE/DIGITAL ■ HOSTED INDUSTRY EVENTS DULY 1, 2023 - JUNE 30, 2024 9-9 VISITN EWPORTBEACH.COM VISIT NEWPORT BEACH, INC. TOURISM -OCCUPANCY TAX (TOT) GOALS GOALSFY .- .. AS . . TOPLINE GOALS & KEY PERFORMANCE INDICATORS FOR LEISURE TRAVEL TO NEWPORT BEACH TOURISM -OCCUPANCY TAX (TOT) REVENUE TO THE CITY OF NEWPORT BEACH $33,889,024 $23,654,682* $35,245,122 MARKETING CAMPAIGN ROOM NIGHTS 140,000 250,800 150,000 MARKETING CAMPAIGN ECONOMIC IMPACT $40,000,000 $63,500,000 $46,000,000 DIGITAL MARKETING, CONTENT MARKETING & SOCIAL MEDIA(OWNED & PAID MEDIA CHANNELS) VNB WEB VISITS 1,480,000 1,104,520 1,628,000 REFERRALS TO PARTNER VISITS 9,500 35,483 10,925 SOCIAL MEDIA FOLLOWERS 250,000 266,184 270,000 CONSUMER DATABASE/NEWSLETTERS SENT - 26,720/19 35,000/24 PARTNER DATABASE/NEWSLETTERS SENT - 494/60 600/60 ADVERTISING (PAID MEDIA CHANNELS) TOTAL AD IMPRESSIONS 145,000,000 145,012,772 175,000,000 ONLINE AD CLICKS TO SITE 125,000 620,115 430,000 MEDIA RELATIONS MEDIA PLACEMENTS (DOMESTIC + INTERNATIONAL) 1,100 1,081 1,200 KEY CONSUMER MEDIA PLACEMENTS 300 551 325 KEY TRADE MEDIA PLACEMENTS (13213) 85 429 100 *REVENUES AS OF 3-31-23. FY 2023-2024 BUSINESS PLAN 9-10 NEWPORT BEACH & COMPANY BUSINESS -UNIT GOALS CELEBRATE NEWPORT BEACH: BRAND -DEFINING EVENT MARKETING UK HONOURS/VARIETY 10 ACTORS TO WATCH 5,500,000 404,442,422 5,500,000 IMPRESSIONS NBFF/VARIETY10TO WATCH IMPRESSIONS 6,000,000 1,640,146,366 6,000,000 CHRISTMAS BOAT PARADE AD IMPRESSIONS 5,400,000 6,620,899 5,400,000 HOAG CLASSIC AD IMPRESSIONS 6,000,000 8,179,484 6,000,000 VIDEO NEWPORT BEACH: NEWPORT BEACH TV + DESTINATION LIFESTYLE VIDEO PROGRAMMING NEW EPISODES CREATED 80 118 85 TV PRODUCTION HOURS 1,800 1,800 1,800 9-11 VISITN EWPORTBEACH.COM IGNITE GLOBAL PASSION FOR NEWPORT BEACH Newport Beach & Company is a creative and focused community marketing agency singularly committed to telling the city's integrated brand story. It strengthens its partners, drives new revenue and enhances Newport Beach's overall vibrancy through powerful storytelling that unites neighborhoods, businesses and individual voices to bring the destination to life. 1 DESTINATION BRAND LEADERSHIP & ASSISTANCE TO KEY STAKEHOLDERS IN CREATING INDIVIDUALLY BRANDED PRODUCTS AND EXPERIENCES. EXPAND DESTINATION PRODUCT 2 MARKETING TO MORE LUXURY AUDIENCES AND ASSIST NON -LUXURY PRODUCTS ON HOW TO CAPITALIZE ON THESE OPPORTUNITIES. 3 CONTINUE TO PROVIDE INNOVATIVE LEISURE AND GROUP MARKETING PROGRAMMING FOR PANDEMIC RECOVERY BY ASSISTING HOSPITALITY BUSINESSES NOT YET RECOVERED IN BOTH BUSINESS AND STAFFING. Respect • Wellness • Integrity Employee Engagement • Learning Knowledge • Adaptability Innovation • Customer and Stakeholder -centric INNOVATIVE, ENTREPRENEURIAL STEWARDS OF THE NEWPORT BEACH BRAND Newport Beach & Company is a progressive, dynamic and innovative marketing organization that brings a results -oriented mindset and forward -looking attitude to the community it serves. Embracing a learning -centered environment, where ideas can develop and be best used for the benefit of its partners, Newport Beach & Company's team is a passionate steward for the brand. It is resourceful in creating meaningful marketing programs and services, setting the standard for outstanding destination leadership. BE BOLD. BE SMART. GO BEYOND. Newport Beach & Company aspires to be the national model for outstanding integrated community marketing and brand leadership. As an entrepreneurial leadership organization, it is creative, innovative and professional in building destination awareness both locally and nationally. It strives to do for its partners and stakeholders what they cannot do individually, driving business and economic growth to benefit the entire community it serves. WE WANT TO BE ESSENTIAL TO THE NEWPORT BEACH BUSINESS COMMUNITY. WE DON'T WANT TO BE NICE TO HAVE, BUT ESSENTIAL TO THE SUCCESSFUL OPERATION OF THEIR BUSINESSES. WE STRIVE TO DO FOR OUR STAKEHOLDERS WHAT THEY CANNOT DO FOR THEMSELVES. WE WANT TO PUNCH ABOVE OUR WEIGHT (THINK BIG!) AS A SMALLER DESTINATION COMPETING AGAINST MUCH BIGGER DESTINATIONS ENTREPRENEURIAL MINDSET/BUSINESS ESSENTIALISM GOVERNANCE SYSTEM BRAND CENTERED FUNDING TRANSPARENCY STRUCTURE FY 2023-2024 BUSINESS PLAN 9-12 LEISURE TRAVELER Leisure travelers are visitors who stay in Newport Beach that enhance the local economy through direct visitors spending at businesses and through transient -occupancy tax (TOT) accommodations. MEETING PLANNER Meeting Planners manage the planning and operations for conferences, meetings and events in Newport Beach's tourism business improvement district (TBID) hotels and hospitality industry businesses. AUDIENCE OVERVIEW LOCAL COMMUNITY Members and leaders of the Newport Beach community from a network of organizations including City of Newport Beach; hospitality and tourism businesses including hotel, retail, restaurant, attractions and recreation; business improvement districts (BIDs), merchant associations; event organizers; destination marketing organizations; relevant associations; local residents and government officials. CORPORATE Newport Beach & Company and Visit Newport Beach staff, executive team, executive committee and board of directors comprised of the destination's hospitality leadership. 9-13 VISIT NEWPORTBEACH.COM OBJECTIVE 1 -LEISURE TRAVELER GENERATE INCREMENTAL LEISURE TRAVEL AND SPEND IN A HIGHLY COMPETITIVE CALIFORNIA MARKETPLACE, IMPLEMENT SEASONAL, FULL -FUNNEL, MULTI -CHANNEL MARKETING CAMPAIGNS TARGETING QUALIFIED LEISURE TRAVELERS TO GENERATE AT LEAST $40M IN ECONOMIC IMPACT TO NEWPORT BEACH VIA HOTEL, SHORT-TERM RENTALS, RETAIL, RESTAURANTS AND OTHER VISITOR -SUPPORTED BUSINESSES. STRATEGY 1: Develop bold, creative, break -through multi -media campaigns that generates visitation to Newport Beach. TACTICS: • Through our bold and creative approach, the marketing team will continue to think outside the box and take risks to create memorable campaigns that standout from the competition. In other words, when others zig, we zag! • With a laser focus on our target audience, our campaigns will speak to the desires and emotions of our consumer to spark awareness and conversion. • Through intelligence platforms, data and analytics, the team will tailor messaging and targeting to resonate with our target audience. • The marketing team will explore partnerships with brands, national events, influencers and partners to integrate, align and build additional buzz and cache around Newport Beach. • Leverage storytelling to create a narrative that inspires our audience and creates connections between them and Newport Beach. STRATEGY 2: With every campaign, implement a full -funnel marketing plan to create a comprehensive approach that will cover the entire customer journey from awareness to conversion and return travel to drive business goals. TACTICS: • Create strategies that reach potential travelers at every stage of the journey with compelling creative and tailored messaging. Here is our full -funnel approach: -14 FY 2023-2024 BUSINESS PLAN 9 Top of the Funnel (Brand Awareness): Focus on generating awareness with broad -sweeping advertising via broadcast, radio, out -of -home, programmatic, paid newsletters as well as PR and paid social. Middle of the Funnel (Build Relationships): Focus on nurturing potential travelers through best -in -class organic social media, marketing and retargeting advertising. Bottom of the Funnel (Travel Conversion): All efforts will drive clicks to landing pages for consumers to book vacations. • After addressing each stage, business intelligence will track and measure results to ensure optimization and success. STRATEGY 3: With Los Angeles as Newport Beach's #1 market, convert remaining day-trippers to overnight guests. TACTICS: • With every marketing campaign, continue to create landing pages that feature hotel stays, things to do and itinerary inspiration to entice travelers. • Continue to invest and target Orange County and Los Angeles markets year-round with targeted messaging about proximity and unique experiences. • Place accommodations front -and -center in all content and campaigns to maximize visibility. • Continue to invest in the quality and quantity of signature marquee events in Newport Beach to bring tourism to Newport Beach throughout the year and need periods. • Continue to leverage intelligence platforms to monitor and track overnight stays while making adjustments to strategies and tactics as needed. STRATEGY 4: With the luxury renaissance happening in Newport Beach, focus on capturing uber luxury clientele. TACTICS: • Hire a Luxury Marketing Manager who will focus on building relationships with luxury tour operators, travel agents; and high -end meeting planners. • Adjust creative to include slightly older, higher demographic personalities to attract the uber luxury clientele. • Work with new luxury hotels and retail partners and align messaging and co-op on advertising buys to tell the Newport Beach story. 9-15 VISITNEWPORTBEACH.COM II`�i OBJECTIVE 2 - LEISURE TRAVELER SPARK A PASSION FOR N EWPORT BEACH SPARK PASSION FOR NEWPORT BEACH THROUGH THE POWER OF AUTHENTICITY, CONNECTION, PERSONALIZATION, VALUE AND ENGAGEMENT TO DEEPEN THE RELATIONSHIP WITH VISITORS TO CREATE AMBASSSADORS FOR ENHANCED TRAVEL YEAR -OVER -YEAR. STRATEGYI: Promote Newport Beach through authentic and creative marketing tactics and maximize across all channels. TACTICS: • Create innovative marketing campaigns to keep the brand fresh and forward -thinking. • Showcase Newport Beach and its new luxury hotel, resort and retail partners. • Utilize revised demographic profile and elevated personas in all advertising plans to reach ultra -high net worth travelers. • Secure stories with top -tier media through smart PR pitching and building relationships. • Understand awareness pain points and address within creative with visuals and language. • Create clear differentiation from competing destinations to generate interest that will motivate action. • Employ imaginative marketing tactics to increase reach and frequency of paid ads. • Integrate and leverage new luxury destination assets in communications and collateral. STRATEGY 2: Engage with our audience on owned and paid platforms to create a community of Newport Beach ambassadors. Build and maintain brand trust and loyalty through social media engagement while educating visitors on destination offerings. TACTICS: • Deploy aspirational and compelling content, with the goal of every follower finding something to like, share, and save. • Invest in paid advertising to maximize reach. • Continue to invest in video as the primary vehicle to showcase Newport Beach content pillars (Wellness, Hotels/Resorts, Dining, Experiences, Destination, Retail). FY 2023-2024 BUSINESS PLAN 9-16 • Plan and execute highly targeted influencer partnerships to coincide with paid media campaigns to generate increased earned media exposure and boost brand awareness. • Collaborate with key partners in the destination on giveaways to grow awareness and build follower growth. • Leverage Newport Beach & Company owned digital assets to extend customer engagement. • Create a two-way conversation on social media platforms to strengthen customer engagement and connection with Newport Beach. • Communicate brand values to create a personalized connection via regularly scheduled content and messaging. • Provide value to our audience with entertainment, education and giveaways to keep followers engaged. • Re -imagine Newport Beach website to create a user-friendly informative and inspiring experience. • Utilize emerging technologies to create personalization for targeted visitors. • Reward followers with giveaways. • Advance SEO rankings with consistent and steady posts. STRATEGY 3: Align with brands, events and opportunities to propel Newport Beach into the cultural zeitgeist. TACTICS: • Continue integrations with national cultural, sports, film and fashion events and opportunities to dovetail on cache to enhance brand currency. • Continue to build on Newport Beach's storied Hollywood history with partnerships with the Oscars, BAFTA's, Emmy's and exciting TV and film opportunities. • Enhance Newport Beach signature events with exciting partnerships, sponsorships and advertising opportunities. • Build advertising relationships to create bespoke opportunities for Newport Beach and partners. 9-17 VISITNEWPORTBEACH.COM OOBJECTIVE 3 -LEISURE TRAVELER RETURN TO INTERNATIONAL TOURISM MARKETING IN 2023, VISIT NEWPORT BEACH OFFICIALLY RETURNED TO THE WORLD'S STAGE WITH ITS RE-ENTRY TO THE UK AND CANADA. HIGH -NET -WORTH INTERNATIONAL TRAVELERS STAY IN -MARKET LONGER WHICH GENERATES INCREASED SPEND TO BENEFIT ALL CORNERS OF THE DESTINATION. VISIT NEWPORT BEACH WILL CONTINUE TO RE -INTRODUCE NEWPORT BEACH TO STRATEGIC MARKETS TO GENERATE INTERNATIONAL TOURISM. STRATEGY 1: In 2023, "London Week" debuted — a week-long in -market activation packed with media events and top -tier media appointments which earned record -breaking media coverage that reached millions of Brits. In 2024, we will capitalize on our momentum and successes from 2023 by strengthening connections and partnerships, while also expanding programs to reclaim the destination's foothold that was lost during the COVID-19 pandemic. TACTICS: • Challenge international agencies to "raise the bar" on London Week to create even more memorable media events and experiences. • Continue to secure A -List honorees at UK Honours event. • Explore introducing a consumer activation or component into London Week. • In partnership with the Newport Beach Film Festival, explore sponsorship opportunities. STRATEGY 2: Re -build relationships with top -tier media, influencers, pertinent and relevant organizations to spark long -haul visitation from the UK and Canada to Newport Beach. TACTICS: • Execute international PR plan to engage top -tier travel and lifestyle media. • Craft relevant and timely pitches to capture travel interest during booking windows. • Host international media FAMs, bringing in top -tier editors to experience Newport Beach first-hand. FY 2023-2024 BUSINESS PLAN OBJECTIVE 4 - LEISURE TRAVELER LEVERAGE AND INVEST IN EMERGING TECHNOLOGY LEVERAGE DIGITAL MARKETING TO REACH CUSTOMER THROUGH ENGAGEMENT TO INCREASE VISITATION TO NEWPORT BEACH BY PROVIDING PERSONALIZED INFORMATION FOR TARGETED CUSTOMERS BASED ON THEIR SPECIFIC ACTIVITIES AND SEARCHES. STRATEGY 1: Artificial Intelligence (AI) is rapidly changing industries and is becoming part of our daily lives. Becoming an early adopter and harnessing the power of Al will be crucial in navigating this watershed moment in history. TACTICS: • Receive training on how to use Al in the workplace and to achieve business goal. • Deploy Al technologies to improve operations, increase efficiencies and drive growth. • Utilize Al to improve marketing efforts, enhance the visitor experience through personalization, data insights and optimization to better serve visitors. STRATEGY 2: In fiscal year `24, Visit Newport Beach will launch and debut a brand new, best -in -class website to inspire, inform and engage potential visitors. Leveraging the latest in technology, the site will be user -focused, fast, optimized, and beautiful with high -quality and compelling content. TACTICS: • Develop a user -centered design and easy -navigation to create an intuitive experience for inspiring travel and as a resource for those in -market. • With the increase in mobile usage, the website will be developed with a mobile -forward approach to ensure accessibility and functionality across all devices. • Focus on website speed to create a seamless site experience. • Feature high -quality storytelling within copy, content, visuals and videos. • Integrate personalized recommendations using Al. • Ensure website accessibility to ensure usability a wide range of users. • Implement SEO strategies to drive traffic to site. 9-19 VISITN EWPORTBEACH.COM NEW STRATEGIC PLAN BOLD AND BREAKTHROUGH CAMPAIGNS EARLY ADOPTERS IN EMERGING TECHNOLOGIES DEPLOY EXPERIENTIAL, IMMERSIVE AND MEMORABLE MARKETING CULTIVATE BRAND PARTNERSHIPS PRIORITIZE VALUES, SOCIAL RESPONSIBILITY AND SUSTAI NABI LITY INVEST IN DATA AND INTELLIGENCE FY 2023-2024 BUSINESS PLAN 9-20 \ Mato N `, I 9-21 VISITNEWPORTBEACH.COM FY 2023-2024 LEISURE TRAVELER INITIATIVE CALENDAR SUMMER BREAK SUMMER PEAK SEASON SUMMER LEISURE CAMPAIGN PENDRY NEWPORT ACH HOTEL OPENING FALL2023 EXECUTIVE COMMITTEE MEETING FY2023 FALL SHOULDER SEASON FALL LEISURE CAMPAIGN WEBSITE LAUNCH BOARD MEETING EXECUTIVE COMMITTEE MEETING NEWPORT BEAC FESTIVAL EXECUTIVE COMMITTEE MEETING ANNUAL DINNER WINTER BREAK WINTER OFF SEASON HOLIDAY LEISURE CAMPAIGN BOARD MEETING NEWPORT BEACH CHRISTMAS BOAT PARADE HOLIDAY PARTNI AND STAFF EVEP Y 2023-2024 LEISURE TRAVELER INITIATIVE CALENDAR WINTER OFF SEASON WINTER LEISURE CAMPAIGN RESTAURANT WEEK I LONDON WEEK BOARD MEETING EXECUTIVE COMMITTEE MEETING EXECUTIVE COMMITTEE MEETING FY2024 SPRING BREAK SUMMER BREAK SPRING SHOULDER SEASON SUMMER PEAK SEASON SPRING LEISURE CAMPAIGN SUMMER LEISURE CAMPAIGN HOAG CLASSIC BOAT WEEK ASPEN FOO WINE CLASSIC NEWPORT BEACH JAZZ FESTIVAL i H GALLERY FA SHIONN ISLAND OPENS SPRING 2024 BOARD MEETING no BOARD MEETING EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE COMMITTEE COMMITTEE COMMITTEE COMMITTEE MEETING MEETING MEETING MEETING NATIONAL TRAVEL & TOURISM WEEK IlahvaW_1 19 OBJECTIVE 1 -MEETING PLANNER GROW GROUP AVERAGE RATE IN PURSUIT OF ELEVATED PROGRAMS WITH THE SIZABLE REINVESTMENT AND ELEVATION OF OUR HOTEL PORTFOLIO, WE HAVE THE OPPORTUNITY TO PURSUE AND CONVERT HIGHER END PROGRAMS THAT WILL SUCCESSFULLY INCREASE OUR AVERAGE RATE BY $110 (A 53% INCREASE OVER FY 20 AVERAGE RATE). STRATEGY 1: Generate content, sales support materials and targeted promotions. TACTICS: • Prioritize storytelling and destination positioning with unique itineraries (activities, dining, etc.) via website content, blogs and email communications. • Create and promote third -party planner promotions, engendering loyalty and providing extended value to the planner. • Active SEO strategies with informative, impactful content to meet planners at each stage of their planning journey and inspire conversion. • Email communications to deliver curated content that aligns with tradeshow participation, seasonal offers and unique destination offerings. • Produce compelling, short -form video assets featuring inspirational property and destination highlights. STRATEGY 2: Reinforce and expand in -person and virtual tradeshow and industry partner engagement to expand awareness and build relationships. TACTICS: • Pursue signature targeted tradeshows and in -market industry events while engaging in luxury -focused shows with immersive booth presence and iSales app content. • Invest in strategic event sponsorships and speaking opportunities to establish a strong continuity of industry support and expand brand presence. • Maximize tradeshow advertising opportunities across multiple tactics to engage pre -event, onsite and post -event. FY 2023-2024 BUSINESS PLAN 9-24 • Leverage paid and owned PR and media opportunities to deliver dynamic and timely destination and team developments to boost planner awareness. • Engage planners with social posts featuring in -person show activities, event sponsorships and destination partner engagements. STRATEGY 3: Deliver highly desirable lead engagement and TBID partner collaboration. TACTICS: • Execute elevated familiarization tours (FAMs) with curated, branded experiences and high -touch service from destination professionals and partners. • Continue highly successful gift programs that delivers a high -impact brand presentation with personalized messaging to encourage site visits. • Pursue viable leads via funnel outreach, incorporating tactics aimed to pull leads through the funnel. • Create targeted email campaigns, templates and curated support materials for one-to-one lead communications. • Support TBID partners via assets, collateral and sales efforts for continued collaboration. 1AAMN60N STRATEGYI: OBJECTIVE 2 - MEETING PLANNER ESTABLISH AND REINFORCE VISIT N EWPORT BEACH AS AN ESSENTIAL BUSINESS PARTNER REINFORCE THE VALUE OF ENGAGING THE VISIT NEWPORT BEACH SALES TEAM THROUGH COMPELLING INITIATIVES THAT PROVIDE PROOF POINTS OF PARTNERSHIP. Position Visit Newport Beach as an invaluable resource throughout all stages of the planning journey. TACTICS: • Approach new wave of meeting planners with education, thought leadership and partnership. 9-25 VISITN EWPORTBEACH.COM • Promote differentiation with competing DMOs via accredited and experienced team members, elevated service, etc. • Create innovative solutions to address program pain points via destination partnerships and extended value propositions. • Promote seasonal and signature offers across planner types and sponsorships that extend an event's bottom line. STRATEGY 2: Expand awareness among destination partners and engaged leads. TACTICS: • Redefine digital presence through website redesign, including enhanced user experience, engaging optimized content and inspiring video and photography assets. • Launch targeted email communications to key market segments that follow a lead's unique planning journey. • Translate destination and team values using visual storytelling, templated messaging and blog content. • Demonstrate partnership case studies via social channels and email communications. • Sustain ongoing engagement with destination partners with lead assists, FAMs, collateral and curated support. • Continue ongoing communications with TBID partners regarding marketing, event and partnership opportunities. OBJECTIVE 3 - MEETING PLANNER d0� UNDERSTAND AND ELEVATE PLANNERS �•*•� THROUGH DATA INTELLIGENCE LEVERAGE QUALITATIVE AND QUANTITATIVE DATA GAINED THROUGH DIGITAL ENGAGEMENT TO DELIVER EFFECTIVE MARKETING AND MEET PLANNERS WHERE THEY ARE IN BOTH LOCATION AND PLANNING JOURNEYS. STRATEGYI: Incorporate data from industry partnerships, studies and platforms to enhance sales strategies. TACTICS: • Obtain information on group meetings from the live database provided by membership software program Knowland (lead assessment). Apply filters for comp set hotels as determined in each search — meeting dates, size, location of accounts, vertical markets, etc. FY 2023-2024 BUSINESS PLAN 9-26 Use software to identify the most relevant customers and make decisions on advertising, deployment, trade shows and events. • Use the Cvent Planner Navigator to qualify leads and planners by viewing the whole picture of what planners are sourcing on the Cvent Sourcing Network including market segment, need dates, and event sizes. • Prospect with Linkedln Navigator to gain broad and detailed perspectives on corporate, association and third -party accounts and event sizes. • Keeping database current and pinpoint accurate/relevant contacts • Creating pipeline/prospecting • Live alerts, company trends, etc. • Reaching key decision makers • Reaching key decision makers • Real time and relevant alerts for targeted accounts • Closely follow industry studies on trends and planner insights from sources like Northstar, PCMA, MPI and Destination Analysts, as well as others, to obtain the research needed on the macro scale to bump against destination- or regional -specific perspective. STRATEGY 2: Translate learnings from digital marketing platforms to deliver effective messaging and experiences. TACTICS: • Leverage Act -On email analytics for lead journey mapping, market segmentation, etc. program Knowland (lead assessment). • Optimize website via SEO and digital campaign tracking using strategic UTM tagging, etc. • Continue to enhance and expand all metrics and analytics to better understand the destination's key customers and implement appropriate digital marketing strategies that address consumer searches. NEW STRATEGIC PLAN DEVELOP LOCAL KNOWLEDGE NETWORKS FOR KEY STRATEGIC MARKETS 2 CREATE A PREFERRED PARTNER PROGRAM 9-27 VISIT NEWPORTBEACH.COM TRADESHOWS sm.. CONFERENCE DIRECT ANNUAL PARTNER MEETING im. ANNUAL NEWSNET STRATEGIC PARTNER PROFILE CBI PHARMA FORUM SEASONALCALSAE FICP FALL SYMPOSIUM FICP 2022 ANNUAL CONFERENCE i CONFERENCEDIRECT FORUM NATIONALPRESTIGE DESTINATION SHOWCASE �C.ISAE ELEVATE MEETING INDUSTRY COUNCIL FICP EDUCATIONAL FORUM 7HELMSBRISCOE ANNUAL MEETING NORTHSTAR INCENTIVE LIVE DESTINATION CALIFORNIA DESTINATION CONNECT MARKETPLACE INCENTIVE LIVE FY 2023-2024 BUSINESS PLAN 9-28 FY 2023 MEETING PLANNER INITIATIVE CALENDAR DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE 25 OBJECTIVE 1 - LOCAL COMMUNITY O DISTRIBUTE DATA -DRIVEN REPORTS LEVERAGING ITS BUSINESS INTELLIGENCE PLATFORM AND OTHER DATA REPORTS TO AGGREGATE A COMPREHENSIVE WEEKLY DASHBOARD SHOWING THE ECONOMIC HEALTH OF NEWPORT BEACH. STRATEGY Newport Beach & Company has amassed cutting -edge intelligence and data reporting pertinent to business and civic entities in the destination. Assemble vital information from economic health to visitor profiles and disseminate to partners on a weekly and ad hoc basis. The goal is to be a trusted resource for partners, taking the lead on business intelligence to assist local partners with important decisions and their own marketing plans. TACTICS: • Deploy a robust weekly insights email brimming with economic information and data points to illustrate the economic health of the destination. • Through Zartico and Tourism Economic's economic impact software systems, provide City Council and City of Newport Beach staff with data visualization on visitor flow, volume, and other valuable insights. • Conduct Newport Beach Economic Impact Study & Visitor Profile to measure true visitor volume, economic impact, visitor spending and visitor demographic profile information to local civic leaders and partners. • Continue to be the lead resource for data and intelligence in the destination. • Create custom intelligence reports for partners on request. • Continue to define visitor profile and key audiences for local partners to roll -out within their marketing plans. • Refine partner database to ensure all pertinent community members and stakeholders are receiving necessary correspondence. FY 2023-2024 BUSINESS PLAN 9-30 \I/ ••• ' OBJECTIVE 2 - LOCAL COMMUNITY CREATIVE COMMUNITY CONSULTANTS T STRATEGY Serve as marketing, branding and sales consultants to local businesses, hotels, restaurants, and civic organizations. TACTICS: • Build on Newport Beach & Company's role as community consultant for various ad hoc marketing and sales needs for local businesses, civic organizations, neighborhood associations, restaurant association, and City of Newport Beach. • Position organization as the community "go -to" for various needs, e.g., marketing plans, communication strategy, branding, marketing, crisis communications, brainstorming, etc. • Maximize opportunities for partner wins for Newport Beach & Company and its partners. • Create a more tailored and enhanced partnership model as needed. • Advise hotel sales and marketing leaders on property -specific sales and marketing plans. • Provide graphic design, art direction and video -production services to local businesses and partners. • Provide economic resources and marketing toolkits for partners and community. 9-31 VISITN EWPORTBEACH.COM 00 OBJECTIVE 3 - LOCAL COMMUNITY on REIMAGINED BUSINESS UNITS •• •• REIMAGINE NEWPORT BEACH & COMPANY AND ITS BUSINESS UNITS FOR THE FUTURE. an an EVOLVE AND EXPAND THE ENTREPRENEURIAL, COMMUNITY -MARKETING ORGANIZATION MODEL AT NEWPORT BEACH & COMPANY THROUGH ITS UNIQUE BUSINESS UNIT STRUCTURE ENCOMPASSING COMMUNITY -WIDE MARKETING, BRANDING, PUBLIC RELATIONS, DIGITAL MARKETING, SOCIAL MEDIA, AND SPONSORSHIP ACQUISITION THROUGH ONE SINGLE, INNOVATIVE COMPANY WITH SIX DISTINCT BUSINESS UNITS. STRATEGY Re-engage and re-evaluate all Newport Beach & Company business units: Visit Newport Beach, Inc. TOT and TBID Business Units, Dine Newport Beach, Celebrate Newport Beach, Enterprise Newport Beach, and Video Newport Beach. TACTICS: • Evaluate and evolve Newport Beach & Company model with innovative and entrepreneurial business models that are self-sustaining and provide sustaining methods, staffing and seek additional revenue streams. • Rebuild internal staff and extended team with top freelancers and contractors. • Imagine new ways to provide an "umbrella" organization for the culinary community. • Assemble neighborhood advisory taskforce, address needs and implement cutting -edge marketing and branding campaigns to drive awareness and visitation to all corners of the destination. • Consult with marketing and communications services for marquee brand -defining community events. FY 2023-2024 BUSINESS PLAN 9-32 NEW STRATEGIC PLAN BE THE LEAD RESOURCE FOR DESTINATION DATA & INTELLIGENCE. ACT AS THE CREATIVE AGENCY AND GO -TO MARKETING PARTNER FOR HOSPITALITY -RELATED BUSINESSES AND EVENTS. BE THE AUTHORITY AND OFFICIAL RESOURCE FOR INFORMATION. CONTINUE WITH AN ENTREPRENEURIAL MINDSET AND BUSINESS MODEL. 9-33 VISITN EWPORTBEACH.COM 30 1 CORPORATE BUSINESS OBJECTIVES OBJECTIVE 1 -CORPORATE ELEVATE OUR CORPORATE COMMUNICATIONS DEVELOP A COMMUNICATIONS AND OUTREACH STRATEGY TO PARTNERS, COMMUNITY, CIVIC LEADERS, INTERNAL STAFF, BOARD MEMBERS TO INCREASE AWARENESS, EDUCATION, BUILD BRAND REPUTATION AND ENHANCE ENGAGEMENT OF ALL NEWPORT BEACH & COMPANY ENDEAVORS AND SUCCESSES. STRATEGY The team will develop a comprehensive corporate communications strategy that will target the right audience, develop effective communications to distribute on 13213 channels with a strong cadence to ensure we continually stay in front of our stakeholders. TACTICS: • Enhance corporate communications via partner newsletters, Linkedln and staff emails with steady cadence and fresh designs. • Explore new 13213 storytelling tactics and vehicles including trendy short -form video, infographics, animations and more to offer entertaining and easily digestible information. • Continue to distribute business intelligence and weekly insights with economic dashboard to provide up-to-date vital research and data. • Create a schedule for one-on-one strategy and networking sessions with partners and key community leaders. • Continue to update and scrub partner email database to ensure our news is reaching the right audience. • Hire a Strategic Partnership Manager and develop partnership program. FY 2023-2024 BUSINESS PLAN 9-34 CORPORATE BUSINESS OBJECTIVES OBJECTIVE 2 - CORPORATE ADAPT AND LEVERAGE THE ARTIFICIAL INTELLIGENCE (AI) REVOLUTION TO T IMPROVE OPERATIONS Al DEVELOPMENT HAS EXPLODED IN THE PAST YEAR WITH 1,000+ NEW PLATFORMS AND TOOLS DEBUTING IN 2023 ALONE. WITH Al EXPECTED TO REVOLUTIONIZE OUR DAY-TO-DAY LIVES AND BUSINESS OPERATIONS, NEWPORT BEACH & COMPANY IS COMMITTED TO EXPLORING THE POTENTIAL BENEFITS OF THIS TECHNOLOGY AND ADOPT INTO OUR WORKPLACE. STRATEGY 31 Newport Beach & Company recognizes the potential of Al Technology to rapidly change the workplace. To effectively adopt Al in our organization, we will collaborate with an Al instructor to identify relevant technologies and use cases that align with our marketing, sales, digital, intelligence, administration and operations functions. Based on assessment, we will develop and implement a plan for staff training and adoption, ensuring our team is equipped with the knowledge and skills necessary to integrate Al into our daily operations to keep our competitive edge and improve efficiencies. TACTICS: • Facilitate an Al education session for staff. • Look at ways team members can automate tasks such as identify potential leads and personalize outreach in sales; analyze customer data and content creation in marketing; automate financial reports in accounting and more. • Explore ways Al can be used as an assistant with tasks such as communications, scheduling, messaging, automating workflows and more. • As Al takes on mundane tasks, roles at the organization may evolve to prompt engineer and collaborate with Al. • Develop a plan for adoption with staff training. • Assess potential ethical harms, dangers or social implications Al can bring. 9-35 VISITNEWPORTBEACH.COM 32 1 CORPORATE BUSINESS OBJECTIVES OBJECTIVE 3 - CORPORATE HIRING AND INSPIRING: CONTINUE TO • BUILD A STRONG WORKPLACE CULTURE STRATEGY Newport Beach & Company is dedicated to being a top employer by regularly evaluating and enhancing workplace culture and benefits to ensure employee satisfaction and retention. TACTICS: • Create a strong onboarding program that sets new employees up for success. • Leadership to continually review and reinvest in company culture and employees to retain and attract top talent. • Continue to assess company morale to ensure a healthy workplace. • Continue wellness benefits and stay and play benefits. • Continue annual retreats to brainstorm ways to continually improve. • Continue the employee value -proposition report showing each employee's total compensation (including base salary, benefits, payroll taxes and other hidden compensation), so employees know their total monetary value to the company. • Prepare the report for each employee and deliver that report following their annual performance reviews. • Continue annual holiday lunch. • Infuse the company's core values into everything we do. • Continue to look for enhancements, features and new tools to maximize return on investment. • Encourage external, job -related educational opportunities for all employees. FY 2023-2024 BUSINESS PLAN 9-36 CORPORATE BUSINESS OBJECTIVES I 33 NEW STRATEGIC PLAN FURTHER ENHANCED CORPORATE COMMUNICATIONS EXPLORE EMERGING TECHNOLOGIES EMPLOYEE DEVELOPMENT AND ENGAGEMENT RECRUITMENT AND RETENTION OF TOP TALENT CONTINUED REVIEW OF OFFICE SET-UP 9-3 7 VISITN EWPORTBEACH.COM EXECUTIVE COMMITTEE CHAIRPERSON DEBBIE SNAVELY VEA Newport Beach, A Marriott Resort & Spa VICE CHAIRPERSON GERARD WIDDER The Resort at Pelican Hill MEMBER AT LARGE JON LEWIS Former Chief of Police JASON AL -IMAM City of Newport Beach DAVID BEEK Island Marine Fuel ANDRE BROSE Lido House Hotel LINDA M. BEIMFOHR City Cruises CANDACE BISCONTE Eventis Destination Services HOMER BLUDAU Former City Manager ANTONELLA CASTRO Newport Beach Foundation TREASURER CANDACE BISCONTE Eventis Destination Services MEMBER AT LARGE HOMER BLUDAU Former City Manager CHARLES CHO Newport Beach Marriott Bayview AMY DEIFT City Cruises MARINA DUTTON Balboa Bay Resort RUSH HILL NRM Real Estate Advisors DAVID HOFFMAN Pendry Hotel WASIM KAZI Hyatt Regency John Wayne Airport, Newport Beach MARKUS KOHN Renaissance Newport Beach SECRETARY LINDA M. BEIMFOHR City Cruises MEMBER AT LARGE SHARON WOOD City of Newport Beach Appointee JON LEWIS Former Chief of Police MARIO MAROVIC Lounge Group Consulting TONY PETROS LSA Associates HENRY PYLE Chartwell Real Estate Development/Balboa Fun Zone Company, LLC. PHIL RAVENNA Newport Dunes Resort and Marina CHARLENE REYNOLDS John Wayne Airport, Orange County STEVE ROSANSKY Newport Beach Chamber of Commerce GREGG SCHWENK Newport Beach Film Festival DEBBIE SNAVELY VEA Newport Beach, A Marriott Resort & Spa TANYA THOMAS Fashion Island GERARD WIDDER The Resort at Pelican Hill SHARON WOOD City of Newport Beach Appointee OPEN Hyatt Regency Newport Beach FY 2023-2024 BUSINESS PLAN 9-38 GARY C. SHERWIN, APR, CDME PRESIDENT & CEO EXECUTIVE TEAM IIL MICHELLE DONAHUE, CDME SENIOR VICE PRESIDENT OF SALES ASHLEY JOHNSON, CDME SENIOR VICE PRESIDENT & CHIEF MARKETING OFFICER ADMINISTRATION KAYCEE ROBISON ELIZABETH GARCIA EXECUTIVE ASSISTANT ADMINISTRATIVE ASSISTANT TO THE CEO LILY PEARSON VP OF FINANCE LAURO GARCIA SENIOR ACCOUNTANT 9-39 VISITNEWPORTBEACH.COM ERIN ROSE SENIOR DIRECTOR OF COMMUNICATIONS BRIANNA GRIMALDI DIRECTOR OF DIGITAL MARKETING MEGAN JOHNS COMMUNICATIONS MANAGER z v H-9 JACKIE INFANTE CREATIVE DIRECTOR DANIELA BALDWIN-VEGA SOCIAL MEDIA MANAGER HUNTER HOWELL MARKETING COORDINATOR . ,p AMANDA KLIEM, CDME, HMCC, CITP DIRECTOR OF SALES MICHELLE DEVINE, CMM, HMCC NATIONAL ACCOUNT DIRECTOR ENRIQUE PAOLO JENNIFER BRANNON NATIONAL ACCOUNT DIRECTOR NATIONAL ACCOUNT DIRECTOR RACHEL BIRD DESTINATION SERVICES MANAGER `v JANE LOENHORST GROUP MARKETING & COMMUNICATIONS DIRECTOR AW ROBERTA EMMONS SALES COORDINATOR 9-41 FY 2023-2024 SUPPLEMENT NEWPORT BEACH & COMPANY DESTINATION BUSINESS PLAN �EWPph.T r� VISIT NEWPORI' o� a THE °:: NEWPORl' & COMPANY 0 forever summer •� ' a. •'iTv...:TR•..� .. CALIFORNIA ©2023 NEWPORT BEACH & COMPANY NEWPORT BEACH & COMPANY '1600 NEWPORT CENTER DRIVE 'STE. 120 NEWPORT BEACH, CA 92660 VISITNEWPORTBEACH.COM ' 949.719.6100. 800.94.COAST ATTACHMENT B lV1 M h N L VIA PORT BE CIA 0 CALIFORNIA Operating Revenue Revenue 41000 - TOT/TBID Income 41031 - Advertising Income Total Revenue Other Income 46001 - Interest Income Total Other Income Total Operating Revenue Expenses General and Administrative Expenses Operating Expenses 64100 - Office Supplies 64125 - Computer Software (non-deprec) 64130 - Voice and Data - Office 64140 - Postage 64145 - Shipping Charges 64150 - Bank Fees 64160 - Membership Dues 64170 - Team Meetings 64300 - Depreciation Expense Total Operating Expenses Insurance 63100 - General Liability Insurance 63300 - Board of Directors Insurance Total Insurance Professional Fees 64203 - Recruiting Fees 64207 - Online Content 64201 -Audit Fees 64202 - Tax Preparation Fees 64204 - Legal Fees Total Professional Fees Travel Expenses 65100 - Airfare 65200 - Accommodations 65300 - Meals 65400 - Transportation Costs 65405 - Mileage ($0.655/mile 2023) 65500 - Other Travel Costs Total Travel Expenses Total General and Administrative Visit Newport Beach Inc. Leisure Marketing (TOT) FY23 to FY24 Budget Comparison FY2023 Budget July 1, 2022 to June 30, 2023 5,793,750.00 5.793.750.00 2,500.00 2,500.00 5,796,250.00 300.00 9,000.00 120.00 225.00 1,050.00 65,000.00 3,000.00 4,800.00 83,495.00 1,400.00 2,200.00 3,600.00 2,000.00 37,500.00 6,500.00 1,500.00 47,500.00 5,000.00 2,500.00 2,000.00 1,000.00 500.00 500.00 11,500.00 146,095.00 FY2024 Proposed Budget July 1, 2023 to June 30, 2024 6,706,147.00 100,000.00 6,806,147.00 30,000.00 30,000.00 6,836,147.00 300.00 9,500.00 120.00 200.00 500.00 2,000.00 61,250.00 3,000.00 4,000.00 80,870.00 2,100.00 2,200.00 4,300.00 3,000.00 7,500.00 2,000.00 3,000.00 15,500.00 3,200.00 1,800.00 2,000.00 1,000.00 500.00 500.00 9,000.00 109,670.00 Variance ($) 912,397.00 100, 000.00 1.012.397.00 27, 500.00 27,500.00 1,039,897.00 500.00 200.00 275.00 950.00 (3,750.00) r800.00l (2,625.00) 700.00 700.00 1,000.00 (37, 500.00) 1,000.00 500.00 3,000.00 (32, 000.00) (1,800.00) (700.00) (2,500.00) (33, 925.00) 9-43 LVA M h N L VIA PORT BE CIA 0 CALIFORNIA Advertising Expenses 66101 - Advertising - Purchased 66102 - Advertising - Local Events 66104 - Advertising Tracking Media 66121 - Promotional Gift Cards 66123 - Promotional Client Gifts 66202 - Ad /Creative Production 66203 - Creative Design/Development 66205 - Photography/Video Shoots/Production 67101 - Research Total Advertising Expenses Marketing Expenses Community Relations 66212 - Community Sponsorships 67105 - Awards 67107 - Promotional Items 67109 - Hospitality Training Total Community Relations Event Marketing 67103 - Community Partner Events 67102 - Christmas Boat Parade Total Event Marketing Marketing Collateral 67301 - Inspiration Guide 67309 - Business Plan 67311 - Collateral Production Expenses 67312 - Collateral Distribution Visit Newport Beach Inc. Leisure Marketing (TOT) Total Marketing Collateral Digital Marketing 67501 - Social Media 67502 - Website Maintenance 67503--SEO/SEM 67504 - Content Creators/Influencers 67506 - Mobile Application 67508 - Website Redesign Expenses 67511 - Digital Lifestyle Channel Production 66211 - CRM Maintenance & Platform Subscriptions Total Digital Marketing Communications/Public Relations 67601 - PRAgency/Tracking/Copywriting 67602 - Media FAM Tours 67605 - Media Opportunities 67607 - Media Relations 67608 - Media Missions Total Communications/Public Relations Total Marketing Expenses FY23 to FY24 Budget Comparison FY2023 FY2024 Budget Proposed Budget July 1, 2022 to July 1, 2023 to June 30, 2023 June 30, 2024 Variance ($) 1,860,000.00 2,280,000.00 420,000.00 8,000.00 (8,000.00) 50,000.00 - (50,000.00) 2,000.00 5,500.00 3,500.00 1,500.00 - (1,500.00) 156,000.00 300,000.00 144,000.00 85,000.00 - (85,000.00) 195,000.00 250,000.00 55,000.00 149,700.00 129,700.00 (20,000.00) 2,507,200.00 2,965,200.00 458,000.00 150,000.00 150,000.00 - 5,000.00 12,000.00 7,000.00 7,000.00 25,000.00 18,000.00 12,000.00 12,000.00 - 174,000.00 199,000.00 25,000.00 105,000.00 100,000.00 (5,000.00) 175,000.00 175,500.00 500.00 280,000.00 275,500.00 (4,500.00) - 125,000.00 125,000.00 12,500.00 - pZ500.00) 5,000.00 3,500.00 (1,500.00) 10,000.00 3,500.00 (6,500.00) 27,500.00 132,000.00 104,500.00 90,000.00 66,000.00 (24,000.00) 53,820.00 69,540.00 15,720.00 194,000.00 72,000.00 (122,000.00) 10,000.00 225,000.00 215,000.00 25,000.00 - (25,000.00) 75,000.00 21,190.00 (53,810.00) 28,000.00 - (28,000.00) 30,000.00 43,495.00 13,495.00 505,820.00 497,225.00 (8,595.00) 17,600.00 135,000.00 117,400.00 40,500.00 40,000.00 (500,00) 175,000.00 450,000.00 275,000.00 25,000.00 20,000.00 (5,000.00) 10,000.00 25,000.00 15,000.00 268,100.00 670,000.00 401,900.00 1,255,420.00 1,773,725.00 518,305.00 VISIT L.1, Visit Newport Beach Inc. Leisure Marketing (TOT) FY23 to FY24 Budget Comparison BEACH H CALIFORNIA FY2023 FY2024 Budget Proposed Budget July 1, 2022 to July 1, 2023 to June 30, 2023 June 30, 2024 Variance ($) International Marketing Initiatives 67401 - International Brand Activations 250,000.00 340,000.00 90,000.00 67402 - International FAM Tours 30,000.00 20,000.00 (10,000.00) 67403 - International Promotions 100,000.00 - (100,000.00) 67404 - International Trade Shows - 100,000.00 100,000.00 67405 - International Airfare 30,000.00 66,000.00 36,000.00 67406 - International Accommodations 19,200.00 20,500.00 1,300.00 67407 - International Meals 5,000.00 1,000.00 (4,000.00) 67408 - International Transportation Costs 5,600.00 2,500.00 (3,100.00) 67409 - International Other Travel Costs 4,000.00 3,000.00 (1,000.00) 67410 - International Business Meals/Entertainment 4,000.00 4,000.00 67411 - International Promotional Items 6,000.00 3,000.00 (3,000.00) 67412 - International Brand Events 225,000.00 375,000.00 150,000.00 67413 - International Sales Missions 35,000.00 - (35,000.00) Total International Marketing Initiatives 713,800.00 935,000.00 221,200.00 NB&Company Fees 68001 - NB&Co Fees 2,784,905.36 2,830,528.56 45,623.20 Total NB&Company Fees 2,784,905.36 2,830,528.56 45,623.20 Total Expenses 7,407,420.36 8,614,123.56 1,209,203.20 Utilization of Carryover Cash (not reserve funds) 1,611,170.36 * 1,777,976.56 169,306.20 Net Income * Carryover funds not utilized in FY23 due to greater than anticipated revenue 9-45 VISIT NEWPORT BEACH, INC. TOURISM -OCCUPANCY TAX (TOT) GOALS FY .- .. .- .. TOPLINE GOALS & KEY PERFORMANCE INDICATORS FOR LEISURE TRAVEL TO NEWPORT BEACH TOURISM -OCCUPANCY TAX (TOT) REVENUE TO THE CITY OF NEWPORT BEACH $33,889,024 $32,602,699* $35,245,122 MARKETING CAMPAIGN ROOM NIGHTS 140,000 250,800*- 150,000 MARKETING CAMPAIGN ECONOMIC IMPACT $40,000,000 $63,500,000** $46,000,000 DIGITAL MARKETING, CONTENT MARKETING & SOCIAL MEDIA(OWNED & PAID MEDIA CHANNELS) VNB WEB VISITS 1,480,000 1,288,175 1,628,000 REFERRALS TO PARTNER VISITS 9,500 82,563 10,925 SOCIAL MEDIA FOLLOWERS 250,000 274,235 270,000 CONSUMER DATABASE/NEWSLETTERS SENT - 26,817/24 35,000/24 PARTNER DATABASE/NEWSLETTERS SENT - 503/71 600/60 ADVERTISING (PAID MEDIA CHANNELS) TOTAL AD IMPRESSIONS 145,000,000 210,508,920 175,000,000 ONLINE AD CLICKS TO SITE 125,000 1,293,443 430,000 MEDIA RELATIONS MEDIA PLACEMENTS (DOMESTIC + INTERNATIONAL) 1,100 1,192 1,200 KEY CONSUMER MEDIA PLACEMENTS 300 656 325 KEY TRADE MEDIA PLACEMENTS (13213) 85 434 100 *REVENUES AS OF 5-31-23. **METRICS THROUGH 4-30-23. CAMPAIGNS STILL UNDERWAY WITH FULL RESULTS TO BE DELIVERED ON 7-31-23. FY 2023-2024 BUSINESS PLAN NEWPORT BEACH & COMPANY BUSINESS -UNIT GOALS CELEBRATE NEWPORT BEACH: BRAND -DEFINING EVENT MARKETING UK HONOURS/VARIETY 10 ACTORS TO WATCH IMPRESSIONS 5,500,000 404,442,422 5,500,000 NBFF/VARIETY10TO WATCH IMPRESSIONS 6,000,000 1,640,146,366 6,000,000 CHRISTMAS BOAT PARADE AD IMPRESSIONS 5,400,000 6,620,899 5,400,000 HOAG CLASSIC AD IMPRESSIONS 6,000,000 8,179,484 6,000,000 VIDEO NEWPORT BEACH: NEWPORT BEACH TV + DESTINATION LIFESTYLE VIDEO PROGRAMMING NEW EPISODES CREATED 80 118 85 TV PRODUCTION HOURS 1,800 1,800 1,800 VISITN EWPORTBEACH.COM 9-4 7