HomeMy WebLinkAboutP1 - NB Conference & Visitors BureauNEWPORT BEACH
CONFERENCE & VISITORS BUREAU
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newportbeach- cvb.com
BUDGET
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July 7, ?004
2004 -5 Sales and Marketing Plan
Mission Statement
To gain and retain chentr, theirby contributing to the economic fabric of the community, thrvugh visitor seviang, sohafation of
conferences, tourgmups, and other related group business, and to engage in raritorpr motiom which generate overnight stays and
increase vi itory'spend.
To promote, sell and market Newport Beach and our hospitality partners in the group meetings, tour groups,
media and leisure markets,
• Thereby increasing room revenue
• Increase visitor spending
• and to provide more opportunities for our hospitality partners
To increase the benefit to the City of Newport Beach through increased TOT (Transient Occupancy Tax) and
VSF (Visitor Service Fees):
• Be the catalyst for growing the business and maximize revenue by the use of our partners' hotel
facilities
• Ensuring market share thereby contributing to the economic fabric of the community
Meeting Sales
Meeting sales is responsible for generating qualified leads and bookings and subsequently room nights and the
corresponding TOT and VSF for the City of Newport Beach. The Newport Beach Conference & Visitors
Bureau has a National Director of Sales, Corporate Director of Sales and a contractor representing the Bureau
in a satellite office in the all important Northern California area. These sales people are supported by shared
administrative sales support people.
• The focus of the sales team is to aggressively solicit and acquire meeting opportunities for the
bureau's hospitality partners.
• Increase the meeting awareness of Newport Beach
• Through direct calls, sales missions and trade shows, establish contact and build relationships with
potential buyer groups.
Satellite and Lead Generating Office
The Bureau established a satellite office in Northern California and uses the services of a lead generating firm,
Hinton and Grusich, in Chicago, Denver and Houston. The Bureau also uses contracting for services with the
Hyland Group - a lead generating firm in the Washington, DC area. The main purposes for these offices are
to:
• Increase the visibility of Newport Beach
• Attend all local area events and industry functions
• Generate new leads and business for Newport Beach and our hospitality partners
• By being located in the geographical areas continue to mine those contacts and impact future sales
The regional office in San Francisco for the Newport Beach Conference & Visitors Bureau connects with the
bureau on a weekly basis and sends updated lead reports. In addition, the regional office updates infomtation
electronically in the Bureau's computerized sales database through electronic mail communications. The lead
H:UenWOR DDATA"arketing"arketing plan2OO4.O5.doc
generating firm of Hinton and Grusich and The Hyland Group sends out updates of trade show opportunities
and client events in the regions they cover.
Our lead generating firms provide representation in specific areas:
• Hinton & Gmsich — Chicago, Denver and Houston
• The Hyland Group — Washington D. C.
The Bureau uses the lead generating firms to impact the Bureau's group sales efforts for Newport Beach. The
lead generating firms work closely with the Bureau and the Bureau's members to assist in closing the business.
They also help arrange site visits, schedule personal sales calls and are truly an extension of our sales office.
The lead generating firms know the clients and are very aware of the market, the group profitability and the
potential of repeat business. The lead generating firms work with the Bureau and our members to help develop
quality group business during the time periods our members detern»ne it is most needed. The lead generating
firms have worked with the Bureau in helping to organize any group functions that have been hosted in their
area. In addition, the lead generating firms have annual familiarization "FAM" trips which we helped to
organize around one of the marquee events in Newport Beach — the Toshiba Senior Classic Golf Tournament.
All the participants are well qualified, meeting specific criteria is reviewed and there is a strong likelihood for
meeting conversions. The lead generating firm also assists through e-mail marketing with a monthly electronic
newsletter Latitudes OnAme which reaches over 3,500 meeting planners. This is where the Bureau organizes
information regarding expansions /renovation plans, hot dates, and special events. Each of the lead generating
firms have reporting procedures to the Bureau - they produce an annual productivity report and on a monthly
conference call the Bureau reviews the status of the leads and bookings where all leads are categorized as either
— definite, pending or lost.
Plan of Wotk for the Meeting Sake Team
In order for the meetings sales team to meet its goals and objectives to increase the conference business
through solicitation of new accounts, direct sales, sales missions and trade shows the Bureau's Plan of Work
will include:
• Tradeshow participation —
o Affordable Meetings
o American Society of Association Executives
• Association Forum of Chicagoland
• CalSAE, California Society of Association Executives
• GWSAE, Greater Washington DC Society of Association Executives
• ICPA, Insurance Conference Planner Association
• ITME, Incentive Travel and Meetings Exposition
• Meeting Professionals International
• SGMP, Society of Government Meeting Planners
• NBTA (National Business Travel Association)
• Sales calls in the major markets both independently and combined with the trade show activities
• FAM trips and site inspections
• Develop sponsorship opportunities for partners
• Become the preferred vendor to 3�d party firms such as ConferenceDirect and Helms- Briscoe
• Continue client phone prospecting, solicitation and personal sales calls
• Building upper scale client base and resulting higher average rate from clients for 2005 and beyond
after the major hotel renovations of Hyatt Newporter and the Newport Beach Marriott are
completed.
H:Uen\WOR DDATA" arketing lmarketingplan2004- 05.dac
In addition the meetings sales team will utilize advertising, collateral materials, direct mail and an advertising
campaign to increase awareness and compliment their sales efforts in the meetings market. The sales team
realizes that salespeople don't just sell their product based on a price or rate, they have to create a vision for
their customer of what their experience will be like once they have made a commitment to purchase. Selecting
the appropriate marketing tools to nurture the sale can be imperative to dosing a deal. Whether it is a brochure,
an interactive CD, website, or virtual tour, the needs are to produce the vehicle that will enable the sales team
to be productive, to ensure that the message prospective clients are receiving is consistent and supports the end
result - which is making the sale.
• Develop a new Meeting Planner destination brochure and also make it contemporary by
formatting it in a PDF format for the web.
• Direct mail using purchased media lists and partnering with others in the hospitality community to
identify key contacts for solicitation
• Use of promotional items at trade shows and client gifts to increase awareness and help brand
Newport Beach as the premiere meeting destination
• Advertising campaign with value added -in editorial, rate protection, page preferred position, lead
generation and database access, meeting profiles, press releases, rotating banners, color add, focus
group, research study, telemarketing and exclusive trade show
• American Society of Association Executives Assoaa6on Management
• CaISAE
• Corporate Meeting & Incentues
• GWSAE (Greater Washington DC Society of Association Executives) Executive
Update
• Insurance Conference Planner
• MedlcalMeetings
• Meetings and Conventions
• Meeting News
• Meeting Professionals International Meeting Professional
• Meetings West
o SrrawssOl Meetings
Goals for Association Corporate and Catering Sales
Association: To generate 100 leads, 36 bookings and $2.4 million in revenue
Corporate Sales: To generate 104 leads, 28 bookings and $2.2 million in revenue
Catering Sales: To generate $200,000 in incremental revenue
Note: Due to the major renovations at both Hyatt and Marriott, sales activity may be affected.
Travel Industry
The Travel Industry encompasses Tourism Development and Incentive Sales by promoting the destination as a
safe and desirable destination. The department is supported by one sales person and a shared administrative
assistant and is responsible for.
• Marketing the destination to visitors and incentive house users for their respective clients
• Conducting FAM tours to educate key travel wholesalers, tour operators, receptive operators and
incentive houses
• Sales Missions, trade shows and client events
• Marketing strategies and advertising
• Focus on the Drive Market in California for a portion of the domestic leisure market
H:Uen \WOR DDATA "arketing"arketingplan2DD4 -M.doc
Man of Work for the Travel Industry Department
In order for the Travel Industry Department to meet its goals and objectives to increase the visitor stays,
provide information, collateral materials, sales missions, trade shows, coordinate with tour operators,
wholesalers and receptive operators the Bureau's Plan of Work will include:
• Working with the City of Newport Beach to establish City Information Kiosks at the Pier Areas
• Making Sales Calls on the LA Tour Operators
• Strive to develop a strong brand for Newport Beach
• Increase database and use other marketing methods to contact and increase the awareness of
Newport Beach
• HTML campaigns
• Purchase of databases
• Advertising campaign with value added in editorial, rate protection, page preferred position, lead
generation and database access, visitor profiles, press releases, color add, telemarketing and co-
operative advertising
• AAA Westways
• Alaska Airlines
• Arizona Highroads
• CA Tour & Travel
• Los Angeles
• Southwest Airlines
• Sunset
o Travel and Leisure
• Develop itineraries
• Create specialized itineraries for group tour markets — seniors, youths, technical tours, domestic
and international tours.
• Develop sponsorship opportunities for partners
• Look to expand the consumer marketing opportunities through the web by developing an online
vacation package booking system
• Sales Missions — Incentive Sales Mission to the key incentive houses with the interested partner
members
• Partner with Anaheim and Orange County for potential co -op opportunities
• Attending the following trade shows:
• CTM ( Califomia Travel Market)
• IT &ME (Incentive Travel & Meeting Executives)
• California Conference on Tourism
• POW WOW
Goals for the Travel Industry
Travel Industry Sales: To generate 24 qualified leads, 20 bookings and $800,000 in revenue
Communications
The Communications department consists of one Director of Communications and is supported by a shared
administrative assistant. Communications is responsible for
• Providing information to the Meeting Planner and visitor through publications, web technology
and media
In conjunction with the Membership Consultant, increase member service referrals from meeting
planners
In conjunction with the Bureau's Public Relations Agency attract and also make contract through
outreach with the national media
o Target and host key media representatives
H:Uen1WOR DDATA"arketinglmarkeb ng plan2oO4- 05.doc
o Conduct sales calls and interviews with key media in major cities
• Increase exposure of members in the visitor service
• Oversee the creation on the web of members packages and help create enhanced value to the
visitors
• Coordinate /conduct site visits and FAMS for the media
• Establish strong media relationships
Plan of Work for the Communications Department
In order for the Communications Department to meet its goals and objectives to increase and provide
information, collateral materials, web technology and working with the media the Bureau's Plan of Work will
include:
• Calling on the main consumer and meeting publications houses in New York
• Take a more aggressive marketing stance to present Newport Beach
• Produce the Visitor and Meeting Planner Guides
• Conduct the following FAMS: Jazz Festival, Taste of Newport, Holiday Boat Parade, Toshiba
• Communicate with the membership and other publics through an Electronic Newsletter
• Update the Bureau's crisis communication plan
• Production of the Rack Brochure and Map
• Produce a 5- minute video
• Update the Bureau's library of images on the web and offer them to the media
• Work in conjunction with the Bureau's Public Relations and Advertising Agency to create
advertorial supplements for the 2004 -5 Advertising Plan
• Generate the equivalent of $1.2 million of positive media coverage
• Through positive exposure for the City of Newport Beach and increased activities provide
enrichment to the lives of the local citizens.
Membership
The Bureau works with a Membership Consultant to provide membership in the hospitality industry. The
Membership Consultant works with the Bureau to
• Gain and retain new members
• Provide members with marketing support and help promote the members' products and services
to potential clients
• Promotes members to meeting planners and attendees
• Maintain membership database
Plan of Work for the Membership Demrtmens
In order for the Membership department to meet its goals and objectives to increase the membership, provide
information, collateral materials, web technology and marketing the members' services to the meeting planner
and the visitor the Bureau's Plan of Work will include:
• Conducting a survey to assess membership needs
• Assist with the production of the Visitor Guide
• Conduct quarterly Membership Orientations
• Conduct three membership seminars
• Investigate membership benefits programs and develop infinity programs for members
• Liaison with the Restaurant Association to provide dining guides and assistance at special events —
Toshiba
• Provide to the membership additional sources of business via visitor and meeting planner referrals
• Investigate the creation of membership logos that can be used on members printed materials,
advertisements and at trade shows
H: UenNOR DDATA" arketing lmarketingplan200405.doc
Finance and Administration
The Finance and Administration Department is responsible for Human Resources, Finance and Administration
and Computer Technical Services. Finance and Administration oversees the budget and makes sure that
revenues and investments are maximized while being conservative with expenditures. The department consists
of one Director of Finance and Administration with a shared administrative support and Receptionist /Visitor
Information Specialist and is responsible for:
• The development of the annual budget
• Providing accurate financial information
• In conjunction with the Executive Director, Tom Clark Accounting Firm and the Chief Financial
Officer, reviews investments, maximizes the cash flow and controls the line of credit
• Ensures passage of the annual audit
• Maintains the personnel policies and procedures as well as the operations procedures
• Reviews the employee benefit programs
• Coordinates with the Computer Consulting firm to ensure that the Bureau's hardware and
software are maintained and continually upgraded
Plan of Work for the Finance and Administration Department
In order for the Finance and Administration division to meet its goals and ensure that the Bureau is financially
sound, all operational procedures are being followed, computer equipment is up to date and functioning and
the personnel are able to function efficiently, the Bureau's Plan of Work will include:
• Ensuring that all financial information is accurate and timely and ensures that that information is
produced and interrupt monthly with accurate financial statements
• Contracts with an outside accounting firm for evaluation of financial status
• Contracts with an outside investment company to consult and invest the Bureau's reserve funds
• Contracts with an outside CPA firm for the annual audit
• Improves the budget process
• Contracts with an outside Labor Law firm to review and update the Bureau's personnel policies
and the Annual Employee Handbook
• Develops job descriptions, assist departments with job interviews and reviews and new employee
orientation and, when necessary, conducts exit interviews
• Administers the payroll and record keeping for employees' benefits programs
• Oversees mail operations
• Contracts with an outside agency to conduct computer training
• Provides training and telephone etiquette for staff
• Continually seeks to improve the Bureau through enhanced communications and technology and
sound financial policies
Visitor Information Services
The Receptionist/Visitor Information Specialist provides information to anyone requesting information on the
destination and keeps track of those requests. The Visitor Information specialist is responsible for:
• Visitor assistance
• Distributing of information and collateral materials to hospitality partners
• Keeping track of requests
• Collecting data on visitors that can be used in marketing initiatives
• Fulfilling Conference Servicing requests
H:\Jm \W OR DDATAYnarketingMa* eting plan2004405.doc
Plan of Work for the Visitor Information Services Deuartment
In order for the Information specialist to meet its goals and ensure that the Bureau is providing service to the
visitor, the Bureau's Plan of Work will include:
• Track phone and website visitor request and input information into database
• Distribute Bureau collateral materials to concierges, John Wayne Airport and member properties
• Respond in a timely manner to requests for tourist information with appropriate materials
• Provide in a timely manner collateral material(s) and/or assistance requested for
conferences /company meetings held in Newport Beach
H:UenWOR DDATAVnarketing lmarketingplan200405.doc
Plan of Work
2004 -05
July
Tradeshows: Meeting Professionals International WEC, World Education Conference - Denver, CO
IACVB Annual Conference - Boston, MA
Membership: Conduct survey to assess membership needs
Events: Bureau Annual Dinner
August
Tradeshows American Society of Association Executives - Minneapolis, MN
IACVB Destinations Showcase - Chicago, IL
National Business Travel Association - Orlando, FL
Communications/PR Jazz Festival FAM/Radio Promotion
Events: Bureau Sales meets with Hotel Sales
September
Tradeshows: Affordable Meetings - Washington, D. C.
IT &ME (Incentive Travel and Meeting Executives) - Chicago, IL
Communications/PR Electronic Newsletter (quarterly)
Membership: New Member Orientation
FAMS: Taste of Newport Beach - Media FAM
SCCMPI Educational Retreat Weekend in Newport Beach
October
Events: San Francisco and Bay Area Client Event
WACVB Annual Meeting -La Jolla, CA
Tag Days - Anaheim
Sales Calls: Washington, DC, Northern Virginia and Maryland and Client Event
November
Tradeshows: Insurance Conference Planners Association - Wailea, Maui
Hinton & Grusich Rendezvous Tradeshow St. Louis and Chicago
Membership: Bureau Membership Educational Seminar (3 seminars a year)
FC70ff-"T
Tradeshows: CaISAE (California Society of Association Executives Seasonal Spectacular) -
Sacramento
Helms Briscoe Annual Conference - TBD
Association Forum of Chicagoland - Chicago, IL
P:UCOMNMPIan of Work 2OO4.05.doc
Sales Calls: LA Tour Operators Holiday visitation
FAMS: Media Holiday Boat Parade FAM
Events: Holiday Open House
Bureau Staff and Executive Committee Holiday Dinner
Holiday Boat Parade
Southern California Visitor Industry Outlook Conference
2005
January
Tradeshows: Meeting Professionals International PEC (Professional Education Conference) - San
Diego
PCMA (Professional Conference Management Assn.) - Honolulu, HI
Events: AOCVCB Receptive Operators Luncheon
Collateral: Visitor Guide Production
February
Tradeshows: SGMP (Society of Government Meeting Professionals) - Sacramento, CA
NCCMPI (Northern California Chapter of Meeting Professionals International) - Santa
Clara, CA
Membership: Bureau Membership Educational Seminar (3 seminars a year)
Events: Incentive Sales Mission
American Society of Association Executives Chief Elected Official & Chief Paid Staff
Symposium
Mayor's Dinner
March
Tradeshows: MPISCC (Meeting Professionals International Southern California Chapter) - Los
Angeles
Hinton and Grusich TSAE (Texas Society of Association Executives) - Austin, TX
FAM: Toshiba FAM - National Meeting Planner Fam
Communications: Media Trip w /State of California
Events: Toshiba Senior Classic Golf Tournament
California Conference on Tourism - Los Angeles
Sacramento Client Event
Nominating Committee Meeting
Police Appreciation Breakfast
April
Tradeshows: CTM (California Travel Market) - Anaheim, CA
Successful Meetings /CA Market Place - TBD
FAMS: Newport Beach to Ensenada Yacht Race Media FAM
Newport Beach Film Festival FAM
RUCOMNOSTIan of Work 2004-05.doc
Communications: Electronic Newsletter (quarterly)
Events:
Newport Beach to Ensenada Yacht Race
Newport Beach Film Festival
AOCVB Receptive Operators golf tournament
WACVB (Western Association of Convention and Visitor Bureaus) spring educational
program
May
Tradeshows
Pow Wow - New York, NY
ConferenceDirect - Houston, TX
Membership:
Bureau Membership Educational Seminar (3 seminars a year)
Communications/PR
Rack Brochure and map reprints
Events:
Fire and Marine Appreciation Beach Party
June
Tradeshows:
Hinton & Grusich Annual "Top Hat" Meeting Professional Expo - Denver, CO.
GWSAE (Greater Washington Society of Association Executives) "Springtime in the
Park" - Washington, D. C.
HSMAI (Hotel Sales & Marketing Association International) Affordable Meetings -
Long Beach
Events: Los Angeles Client Event/Reception and Mini -trade show.
On Going
• Annually General Managers Meeting
• Annually Inns Meeting
• Annually Membership Survey Report
• Annually Visitor Guide Produced
• Annually Bureau Dinner
• Annually Bureau and Hotel Sale Staff Meetings
• Monthly Executive Committee
• Month -end report distributed to membership
• Monthly Marketing Committee meeting
• Monthly Economic Development Committee Executive Committee/Board Meeting
• Monthly Orange County Tourism Council meeting
• Monthly Financials prepared
• Monthly Membership Report prepared
• Monthly Bacon's Media Clippings and Tempo IV Broadcasting report
• Monthly advertising statistics logged
• Quarterly Full Board Meeting
• Quarterly Electronic Newsletter
• Quarterly New Members Orientations
• Tri Yearly Membership Seminars
• Bi- monthly Newport Beach Film Festival meeting
• Weekly staff and sales meeting
• Daily fulfillment of visitor and meeting inquiries
• Daily telemarketing calls
• Daily statistical information logged on telephone calls /walk -ins
• Staff outings
P:UCOMNOS1PIan of Work 2004-05.doo
732004
Newport Beach Market Analysis
The Newport Beach Conference & Visitors Bureau is one of many cities in competition for national, group and
local tourism business. The Bureau is a member of the Anaheim /OC Visitor & Convention Bureau as well as
the Orange County Tourism Council, which is a cooperative of other destinations that collaborate to generate
business.
Newport Beach has 2,394 guest rooms in hotels of over 100 rooms and half of these hotels have a national
chain affiliate. In addition, Newport Beach has 241 guest rooms in the small inns category as well as seasonal
rental units, timeshare properties and campgrounds. Of the timeshare category, Marriott's Newport Coast Villa
provides 700 guest rooms for the visitor. There are 535 seasonal rental units in Newport Beach mostly
concentrated around the resort area of Balboa Island and Balboa Peninsula areas.
The major howl properties in Newport Beach are:
• Balboa Bay Club 132 guest rooms with 17,000 square feet of meeting space. This property just opened
in the spring of 2003 and is a luxury property located right on the bay. Their projected target marketing
mix is 20% group and 80% transient. This hotel is targeting the small incentive programs, high end board
meetings and social events.
• Pour Seasons 293 guest rooms includes 83 suites with 35,000 square feet of meeting space off site
meeting space at Pelican Hills and also the Palm Garden Ballroom. Recently completed an extensive
renovation program that refreshed the rooms, restaurants, meeting space and pool area. Will do an
enhancement of the spa area. Their projected mix is 60% group and 40% transient
• Hyatt Newporter 403 guest rooms, 11 suites and 4 villas over 26 acres with 20,000 square feet of
meeting space and extensive outdoor meeting space with an estimated group /transient mix 40/60. The
hotel has started an $8 million renovation and re- positioning of the hotel to Hyatt Regency status. Major
components of the renovations are guest room renovation, meeting space as well as a new restaurant.
• Newport Beach Marriott 570 guest rooms and 8 suites with 28,000 square feet of meeting space with an
estimated group /transient mix 40160. They just began a $63 million renovation to include guest rooms,
spa, new entrance, new lobby, meeting space, a new themed restaurant and lounge. When the renovation
in two years is completed they will have 523 guest rooms and 14 Executive suites.
• Newport Beach Marriott Suites 250 suites with limited meeting facilities for smaller groups of up to 150.
Positioned more as a business property during the week and weekends for families.
• Radisson Newport Beach 335 guest rooms including 4 suites with 15,000 square feet of meeting space
and an estimated group /transient mix of 40/60. Located near John Wayne Airport and in the process of
converting their tennis courts to a semi- outdoor venue for meetings and receptions.
• Sutton Place 435 guest rooms including 28 suites with 20,000 square feet of meeting space estimated to
be doing more group 60% to transient 40% business. Located close to John Wayne Airport and recently
completed a "soft goods" renovation.
Advantages of Newport Beach Presently Newport Beach is affordable and centrally based with easy access
though John Wayne /Orange County airport. Newport Beach is also within close proximity to Southern
Califomia attractions. Newport Beach has a spectacular beach, world class shopping, dining, family -safe
environment, excellent year -round climate and a range of accommodations.
Disadvantages Budget constraints compared to major competitors. Continuing perception that Newport
Beach is not affordable for groups and lacks budget hotels. Hotels too spread out (small room inventory in any
one area) and guest rooms in need of upgrades. Although airfares have improved, airfares less expensive from
some key markets to competitive cities. Lack of public transportation.
Competitive Set Hotel Properties
• Hyatt Huntington Beach Resort and Spa 519 guest rooms with over 52,000 square feet of meeting
space with an estimated group /transient mix of 60/40. Just opened in January 2004 and considered a
resort on a beach front location. Competes with Newport Beach in the larger sized conventions and for
groups that have over grown the meeting space in Newport Beach. Very competitive in the social market
too.
H:Uen1W0R00ATAOnarketlngWarket Analysis - Hotels04-05.doc
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Wm2004
• Hyatt Regency Irvine 536 guestrooms with 30,000 square feet of meeting space, estimated
group /transient mix 35/65. Recently completed a $14 million renovation of the guest and meeting rooms.
• Marriott Laguna Cliffs 347 guest rooms including 18 suites and 18,000 square feet of meeting space with
an estimated group /transient mix of 60/40.
• Montage Laguna Beach 262 guest rooms including 51 one - bedroom suites and 37 cliff -side
bungalows. Just opened in 2003 and done in a California Craftsman style - luxury property with ocean
views. Extremely competitive and offering pre - opening rates to incentive group bookings.
• Ritz Carlton Laguna Niguel 500 guest rooms in a luxury oceanfront resort setting situated atop a 150 -
foot bluff overlooking the Pacific. An estimated group /transient mix of 45/55. The Ritz has 30,000
square feet of meeting space and aggressive in the group and incentive markets.
• St. Regis Monarch Beach 400 guest rooms done in a Tuscan style; buildings over 20 acres with ocean
views. An estimated group /transient mix of 60/40. Very aggressive in positioning the hotel in the group
market and willing to make room rate concessions in order to secure the business.
• Westin South Coast Plaza 393 guest rooms and connected to 275 shops and restaurants of South Coast
Plaza. 35,000 square feet of meeting space, including outdoor venues.
2003 saw the arrival of the 264 room Montage in Laguna Beach, the 132 room Balboa Bay Club & Resort, and
the 519 room Hyatt Huntington Beach Resort. The additional supply in 2003 resulted in 792 daily rooms
added to the market.
Competitive Set — Bureaus and Competing Cities
• Anaheim Newport Beach both competes with and compliments Anaheim. Several of the hotel products
in Anaheim compete for west coast meetings. The City's room tax is 15 %. Anaheim and the Garden
Grove area have increased the room inventory by 1,300 guest rooms and "overflow" guest rooms coming
to Newport Beach from City wide conventions have dwindled with the increased room inventory in
Anaheim /Garden Grove.
• Costa Mesa has of room tax of 8% and gets additional funding from South Coast Plaza and even though
this is a surrounding community, it is not viewed as competitive as Laguna Beach and Huntington Beach.
• Garden Grove has a room tax of 10% and has had a large addition of room inventory of 1,300 guest
rooms along with Anaheim which makes it competitive for overflow rooms to Anaheim conventions and
the price point of these hotels has seriously dwindled the "overflow" to Newport Beach.
• Huntington Beach has a room tax of 10% and with the addition of the Hyatt Huntington Beach has
become one of Newport Beach's top competitors.
• Irvine has a 9% room tax and serves more of the commercial business market
• Laguna Beach has a room tax of 10% and the new Montage Hotel is the top competitor in the luxury
market.
• Los Angeles has a room tax of 14 %. The Bureau and Convention Center are currently offering major
discounts or space free of charge to lure business to the Center.
• Monterey has a room tax of 10.5% and they have a municipally owed Conference Center that competes
with Newport Beach in the small 350 person to medium sized 1,000 groups.
• Palm Springs has 12.8% TOT and they have a larger sized Convention Center that competes with
Newport Beach in the medium 1,000 person to the larger groups 2,000+ person market
• San Diego has a room tax of 10.5% with a large Convention Center and a vast inventory of hotel rooms.
With the doubling of the Convention Center they are cutting deals with meeting planners for the
Convention Center. They compete with Newport Beach in the small coastal meetings of 100 - 500 to the
medium sized meetings of 375 — 1,000 persons.
• San Francisco has a room tax of 14 9/6. The city is known as "everyone's favorite city." They have a very
compact housing package for conferences and a large inventory of guest rooms. With the softening of the
Silicon Valley and Technology trade, they are offering bargain rates to groups.
As a generalization those cities in our competitive set have an average TOT (Transient Occupancy Tax) in the
10% range. Those with TOT above 10% have Convention Centers and a portion of the TOT is dedicated to
retiring the bond debt on those Centers.
H:Uen \WORDDATA"arketingWarket Analysis - Hotels0405.doc
2 oft
7/7!2004
Trade Shows
The Bureau, through trade shows, sales blitzes, client events, lead generating firms and incentive sales missions is
dedicated to pursuing meetings business for Newport Beach. In addition to over 26 trade shows the Bureau and
the hospitality partners participate in on a yearly basis, there are "FAM" familiarization trips to Newport Beach of
key meeting decision makers, sales blitzes of major markets (some done in conjunction with trade shows), client
events, Incentive Sales Missions, Receptions for key travel agents and relationship marketing events i.e., sports
events to help solidify current business or to enhance future clients and ultimate usage of Newport Beach through
these events.
The trade shows are a very cost efficient way of bringing suppliers and buyers together so that the planners can
start their site selection process. Consistently going to these trade shows reinforces the desirability of Newport
Beach as a premiere meeting destination. Some of the leads from the prior years trade shows become strong
tentative in following trade shows and the booking process from lead to tentative to a definite booking can be as
short as six weeks to as long as ten years.
Some of the highlights that are noted by the decision makers that attend the trade show that the Bureau considers
high priority are -
• CaISAE (California Society of Association Executives) has over 1,100 decision makers in the California
Association Market at the trade show. CalSAE is the fourth largest allied association and it is where
Newport Beach connects with the California Association executive. This show consistently produces leads
and RFPs (Requests for Proposals) for further information on Newport Beach for meetings.
• Association Fonrrn of Chicagoland - Holiday Showcase is a very powerful marketing venue for associations
and corporations in the Chicago and mid -west area. More than 1,500 qualified executives attended in 2003.
As with other industry marquee events, the CIC held their leadership gala around the trade show dates.
The Bureau spoke with meeting planners that had strong potential for Newport Beach. For the exhibit
luncheon key meeting planners were hand picked to join the table and this increased the relationship
building with these key clients.
• NCCMPI (Northern California Chapter of Meeting Professionals International) has over 1,000 members
and over 4,000 corporate, association and independent planners invited to attend the trade show. This is a
tremendous opportunity to showcase Newport Beach.
• GWSAE (Greater Washington DC Society of Association Executives) had 2,150 qualified buyers at the
May 2003 trade show. The total economic impact of Washington area associations has surpassed $13.6
billion annually. Associations book an average of 42 million room nights annually and spending on
association meetings and expositions account for $56 billion annually. GWSAE's Springtime in the Park
trade show has one of the highest exhibit traffic densities of 3.7 attendees per 100 sq ft'. In addition
GWSAE offers value added to their exhibitors by way of being an on -line exhibitor which gives exposure
before the show and helps direct buyers to our location. During and after the trade show the on -line
exhibit hall is operational to continue matching buyers to the products they are requiring.
• Affordable Meetings does Mid -West, Western and National (Washington, DC) shows. WEST - There were
900 attendees from 22 states looking to preview an array of potential sites, facilities and destinations. It had
a 3:1 Planner /Exhibitor ratio. MID-WEST —The Bureau's reach with the mid -west planners was
extended by the assistance of the Bureau's lead generating firm of Hinton & Grusich. A number of
industry events where centered around the trade show such as the Chicago Chapter of Meeting
Professionals International and their reception networking opportunity the day prior to the trade show.
NATIONAL — There were 2,000 planners in attendance with planners that requested information for
meetings for 2004 — 2010. Fourteen groups had good potential and there was some interest from groups
doing meetings in Anaheim for post- convention sites in Newport Beach. The Bureau tries to extend its
reach by having a key client reception for Newport Beach's top clients to continue relationship building
and check on the next set of available dates that these groups might consider Newport Beach.
Exhibit traffic density has an industry average of 2.1 — Source Exhibit Survey research.
1 of 2
H:Uen1WORDDATAVnarketing \Trade shows - city budget 20D4-05.doc
WM2004
• American Society of Association Executives had over 2,000 executives registered for the convention. Out
of those there is usually a high representation of Western Regional associations that Newport Beach
targeted with a pre -show mail out inviting them to the booth to discuss their future meeting plans.
• Meeting Professionals International - over 4,000 people attended the trade show and a high percentage was
from the Western Region. The Meeting Professionals International planner members have a collective
buying power of 10.9 billion annually and facilitate an average of 78 meetings per year. In addition to
generating sales leads and meeting new potential clients, the Newport Beach Conference & Visitors Bureau
and its partners expanded their relationships with existing customers.
• IT &ME (Incentive Travel & Meeting Executives) is a combination Incentive Travel and Merchandise
show and has over 40,000 people attending over a three day period. The incentive travel market showed
strong interest three years after 9/ 11.
• Meeting Professionals International Southern California Chapter had over 700 people in attendance. One
of the largest local trade shows providing education, technology and networking opportunities.
• Hinton and Grusich Top Hat Colorado Meeting Professionals International Expo - in conjunction with
our lead generating fiun Hinton and Grusich, participated in a regional feeder market show. Frontier
Airlines commenced direct flights between John Wayne Airport and Denver Airport.
• Insurance Conference Planners Association had a record 200 financial services and insurance meeting
planners. Insurance and Financial corporate meetings are extremely lucrative.
• Sucre4mlMeekngs Magazine California Marketplace. This is a value added from Smre4ml Meetings Magazine
and the magazine pre-qualifies the planners that have business for California and they have a hosted buyer
program. Since it is very highly qualified, the results of this show are high.
• California Travel Market is an appointment show for buyers that sell California product. There are several
travel companies that do vacation packages with Southwest, Delta and Continental Airlines. In addition,
these companies are looking for itineraries for youth, series bookings, vacation and the mature markets.
• The Regional Show format of Hinton & Grusich is one that we recommend participating in again next year
and also in general as H&G is so well -known and respected and we are encouraging them to proceed with
discussions about doing this type of concept in other secondary cities.
• NBTA (National Business Travel Association) - to exploit the recent but building trend among both
corporate and association accounts to consolidate their individual business travel with their meeting
business all under the direction of one department /planner. This will coordinate with our constant efforts
to best serve our member hotels for the provision of leads of the best quality in terms of size, pattern, and
spending profile.
In addition, the Bureau does a number of Client Events, Sales Missions, Media Calls, Trade shows with 31d Parties.
Some highlights of these events are
• Sacramento Key Client Reception the reception for top Association Executives.
• Incentive Sales Mission - Presentations to major incentive houses
The Bureau and its partners participate in receptions for clients in the Washington, DC, Northern Virginia and
Maryland area, an Incentive Sales mission to the key incentive houses in the mid -west and San Francisco and Los
Angeles meeting planner Fams and receptions.
The Bureau does in excess of 26 trade shows and 8 client, FAM, sales missions a year and sees over 60,000
potential clients at these events and generates in excess of 1,300 leads 2based on these numbers the bureau
estimates that the trade show potential revenue for Newport Beach could result in $13 million in room revenue.
2 The bureau based on this approximation of leads generated from trade shows makes a conservative
assumption that 25% of these lead inquiries have the potential to turn into definite bookings for a potential of $
13 million room revenue. Based on 100 room night groups for an average of 3.1 nights at a rate of $ 131.12
based on IACVB industry averages.
2or2
H:Uen1WORDDATA"arketinglTrade shows - city budget 2004-05.doo
NBCVB Tradeshow Sales Mission Schedule 2004 -2005
NBCVB BBC FS Dunes HN NBM RAD SP FI /DMC
TRADESKOWS/ SALES MISSIONS
Meeting World -New York, NY
July 9 -11, 2004
x
1 Booth 3 exhibitors/Approximate cost $1,033
MPI -WEC- Denver, CO
July 25 -27, 2004
x
x
2 Booths 6 Exhibitors/Approximate cost $1,362
TS—AE-Minneapolis, MN
August 14 -17, 2004
x
1 Booth 3 Exhibitors/Approximate cost $1,932
San Francisco Bay Area Client Event
August 25, 2004 NCCMPI Luncheon /Mini Tradeshow
x
x
x
x
x
Whirlaround
Approximate cost $300/5 Exibitors
National Business Travel Association - Orlando, FL
August -04
x
1 Booth 3 Exhibitors/Approximate cost $1,238
Sacramento Client Event
x
x
Approximate cost $600
Affordable Meetings- Washington, DC
September 8 -9, 2004
x
1 Booths 3 Exhibitors/Approximate cost $1,935
SCCMPI Educational Weekend
x
x
x
September 17 -19, 2004
IfME- Chicago, IL
September 28 -30, 2004
x
x
Coast. Conn.
Based on 3 artici ants/A roximate cost $2,433
Washington DC area /Nyland Bureaufest Client Event
October 20, 2004
x
x
Reception Approximate cost $1,000
CaISAE-Sacramento, CA
December -04
x
x
2 Booths 4 Exhibitors/Approximate cost $1,067
Meetings & Incentive Trade Market -Las Vegas, NV
December 12 -14, 2004
x
1 Booth 2 Exhibitors /A roximate cost $1,248
Association Forum of Chicagoland- Chicago, IL
December 14, 2004
x
1 Booth 2 Exhibitors/Approximate cost $3,700
MPI -PEC -San Diego, CA
January 23 -25, 2005
x
x
2 Booths 6 Exhibitors/Approximate cost $1,220
SGM P- Sacramento, CA
February 2005
x
x
1 Booth 2 Exhibitors/Approximate cost $850
NCCMPI -Santa Clara, CA
February 2005
x
1 Booth 4 Exhibitors/Approximate cost $700
We Love New York Day -New York, NY
February-05
x
1 Booth 2 exhibitors/Approximate cost $1,725
MPI Southern CA Chapter, Annual Conference & Trade
Show -ins Angeles, CA
March 2005
x
x
1 Booth 3 Exhibitors/Approximate cost $500
Incentive Sales Mission
BD
x
Ap roximate cost $850
ConferenceDirect Annual Partner Meeting - Houston,
TX
May -05
x
1 Booth 2 Exhibitors/Approximate cost $1,387
Pow Wow -New York
May 3 -7, 2005
x
x
1 Booth 3 Exhibitors/Approximate cost $2,317
Hinton & Grusich /Annual "Top Hat' Meeting Professionals
Expo
June 2005
x
1 Booth 3 Exhibitors/Approximate cost $1,135
7/8/2004
NBCVB Tradeshow Sales Mission Schedule 2004 -2005
NBCVB BBC FS Dunes HN NBM RAD SP FI /DMC
GWSAE- Washington, DC
Kellen Association Management Annual Meeting - Atlanta, GA
July 2004 -.:: .. . >..
,.•,, , _.,
IACVB Destinations Showcase-Chicago, n
. -
August 26::2004: .. ..
::eii >c..` •: o`G"; r
June 2005
x
ICPA- Wailea, Maui
Novernber 14- 18:'2004. r ,:,��:,:.. _.,,.. „.
•mc.:,,vr� ,- .•>'. -s?'
National Coalition of Black Meeting Prot Is -Hone ulu, HI (�C�� +y�'
; z.VtjIMt�i 1' .
`.
17- 2 November 4-i;;”
M:w. :. n dQ
Rn Hton & Grusich ous Client Chicago
Everrb and Road Show -St Laos &
2 Booths 4 Exhibitors/Approximate cost $2,233
Helms Briscoe 2004 Annual Business Conference ,.�,-
§Z•'}`. T�..
December 2004', , .a:. -__ j; _ _
... r 8. -.`''`
MPI Leadership Reception
-.'�'
January 2005:
HSMAI Affordable Meetings West -Long Beach, G
,
.y
January 2005
California Conference on Tourism -Los Angeles, CA .a:,..
March 28-30, 2005 .. .. . . .. { �:'
.. .. «-: b ..,_i•: .
Hinton & Grusich /Texas Society of Association Executives- Austin, TX
-
...
June 2005
x
California Travel Market - Northern California
,
February 2005
x
Successful Meetings,Califomia Marketplace, G ,
April -05 - - -
1 Booth 3 Exhibitors/Approximate cost $2,100
Hinton & Grusich /Annual Summertime Show- Chicago, IL
June -05 x
1 Booth 3 exhibitors/Approximate cost $2,400
Los Angeles Client Event
x
Approximate cost $600
MPI- WEC- Dallas, TX
July -05
x
2 Booths 6 Exhibitors/Approximate cost $1,362
ASA E- Nashville, TN
August -05
x
1 Booth 3 Exhibitors/Approximate cost $1,932
Affordable Meetings- Washington, DC
September -05
x
x
1 Booths 3 Exhibitors/Approximate cost $1,935
ITM E- Chicago, IL
September 27 -29, 2005
z
Based on 3 participants/Approximate cost $2,500
BUREAU ONLY -
Kellen Association Management Annual Meeting - Atlanta, GA
July 2004 -.:: .. . >..
,.•,, , _.,
IACVB Destinations Showcase-Chicago, n
. -
August 26::2004: .. ..
::eii >c..` •: o`G"; r
Tag Days - Anaheim, G
October 840;2004
ICPA- Wailea, Maui
Novernber 14- 18:'2004. r ,:,��:,:.. _.,,.. „.
•mc.:,,vr� ,- .•>'. -s?'
National Coalition of Black Meeting Prot Is -Hone ulu, HI (�C�� +y�'
; z.VtjIMt�i 1' .
`.
17- 2 November 4-i;;”
M:w. :. n dQ
Rn Hton & Grusich ous Client Chicago
Everrb and Road Show -St Laos &
Novemb4 2004r =•�,;::p•..iv.
Helms Briscoe 2004 Annual Business Conference ,.�,-
§Z•'}`. T�..
December 2004', , .a:. -__ j; _ _
... r 8. -.`''`
MPI Leadership Reception
-.'�'
January 2005:
PCMA - Honolulu, HI .,.•
-,
,
.y
January 2005
California Conference on Tourism -Los Angeles, CA .a:,..
March 28-30, 2005 .. .. . . .. { �:'
.. .. «-: b ..,_i•: .
Hinton & Grusich /Texas Society of Association Executives- Austin, TX
-
...
March-05: - '- -
California Travel Market - Northern California
,
February 2005
Successful Meetings,Califomia Marketplace, G ,
April -05 - - -
Your signature below acknowledges your commitment in the indicated tradeshows you have marked.
Sign
Hotel
Date
7/8/2004
Draft 7/712004
Advertising
The Bureau places over $358,000 (20% of the total budget) in promoting the City of Newport Beach by
advertising in the conference and meetings, consumer and tourist markets. In addition the Bureau goes to New
York calling on the major publication houses" pitching" stories on Newport Beach trying to get editorial and
advertorial in the publications. An initiative to the sales personnel is to call on travel editors in the cities where
they are participating in tradeshows.
Conference and Meetings Publications
Conference and meeting publications require being persistent and deliberate in destination marketing helping to
maintain attentiveness and gain market share with the prospective planners when they start their site selection
process. Advertising in Membembip Pub /icadons — American Society of Association Executives, Ca1SAE,
GWSAE, Greater Washington DC Society of Association Executives and Meeting Professionals International
has an 82% ROI as planners are loyal to their suppliers. Many of these publications are migrating to electronic
newsletters with web banner advertising and knowledge supplements. The Meetings market is $40.8 billion
dollar industry and some highlights of this market are -
• Association conventions average expenditure per convention $202,6001
• The average association delegate spends $1,450.
• The Corporate meeting planners plans over 16 meetings a year and spends $216,000 which is
slightly higher than the association meetings
Some highlights on the decision makers that read the membership publications and why these publications are
priority.
• CalSAE, California Society of Association Executives has over 1,000 members and represents 90% of
the Association Executives in California.
• GWSAE, Greater Washington DC Society of Association Executives. A third of all associations are
headquartered in the Washington, D. C. area our capital. GWSAE, Greater Washington DC Society of
Association Executives represents national and international trade; professional and cause - related
association readership is 13,000 association decision makers in the Greater Washington area.
Executive Update highlights topics of interest in the hospitality industry from guides to resorts, spas,
and golf as well as destination profiles.
• Meeting Professionals International membership base is 19% association, 48% corporate representing
over 80% of the top Fortune 500 companies, 12% Incentive and 19% independent planners. The
collective buying power of Meeting Professionals International is over $9 billion with 201/6 having
budgets over $3 million and another 20% with budgets between $1 and $3 million. A recent survey of
the membership revealed that 72% of the planners use ideas gleaned from the Meeting Professional
magazine and read at least 50% of the issues. The monthly magazine is mailed to the membership as
well as bonus distributed at industry shows. The Meeting Professionals International member has over
90% authority or recommendation ability on meetings, destinations, facilities, transportation and
speakers.
All of these publications have a large on -line community, web sites, E- marketing and the user sessions continue
to double each year. In addition the Bureau tries to get additional value opportunities for Newport Beach by
• Database list of meeting planners and profiles
• Focus Group — either blind or announced focus group whereby Newport Beach would have access to
planners opinion of the destination, advertisements or other topics
• Free Web Site Listings for the month of the issue in which the ad runs to have a "quick connect".
• Frequency discounts, rate protection, preferred page placement on advertising
• Hot date listings for member hotels on publication web sites
• Matching advertorial
Page i of 4
H: WenWVORDDATA "arketing%AdvertWngROI foro4-058udget.doc
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• Membership list rentals a one -time mail list for direct marketing.
• Research study
• Telemarketing
• Web banners
Niche Meeting Markets Insurance and Medical and Healthcare meetings markets are a very targeted and
singled out audience in a unique segment of the meetings market.
• ICP, Insurance Conference Planneris the official publication for ICPA, Insurance Conference Planners
Association which includes planners in the insurance and financial services who plan meetings,
incentives and training programs. Some information on the subscriber of ICP
0 50% indicate that their typical meeting attendance is fewer than 100 people which are an ideal
size for Newport Beach.
o They plan an average of 15 meetings
0 1 in 3 have visited an advertiser's web site
0 1 in 4 has contacted an advertiser via e-mail, fax and /or phone
• MedicalMeekngs magazine is a niche publication. In more than 50% of the states in the US physicians
are required to pursue CME, continuing medical education units
• Physicians earn their CME by attending meetings
• The meeting's geographical location was the No. 1 factor influencing the physician to attend
In addition, some of these publications also have industry specific tradeshows
Broadband Media Meeting Magazines
• Meeu'ngs and Conventions produces targeted supplements providing current information and trends on
topics of concern. Destination features is an excellent lead - generating vehicle with editorial on specific
markets. Relationship marketing events to help solidify current business or enhance future clients
through events. Through golf or other events provide a supplier /client exchange. Annual directory
provides a comprehensive reference for planners. Industry research by providing meeting market
studies.
• Successful Meetings and Meetings and Conventions along with Meeting News are consistently chosen by
meeting planners as being very useful, that the readers read more than one issue. Meeting planners
when surveyed said that they became aware of a destination through
• Ads in the publication
• Received direct mail
• Called on by a Bureau staff
• Visited trade show booth
• Participated in a "FAM" (familiarization) trip
Visitor Centers and Visitor Information Miosks. The Bureau has a Visitor Center in its lobby and does
fulfillment to advertisements, a -m", walk -in visitors, phone calls and conference servicing. The bureau
services the visitor and the convention delegates
• Phone requests average 200 a month
• E -mail requests have been growing to over 600 a month
• Mail list requests mostly from consumer BRC, Business Reply Cards over 3,000 a year
• Walk in visitors 100 a month
• Conference servicing 18,000 a year
• 86,000 visitor guides distributed through Newport Beach's hotels, airport, restaurants, and visitor
information centers at Fashion Island.
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In addition the Bureau has a VIK, Visitor Information kiosk at the Newport Beach Pier and Balboa Pier which
lists the member - attractions, hotels and restaurants and has a direct dial phone to the Bureau for assistance. At
Fashion Island the concierge desk as well as John Wayne airport distributes the Visitor Guides.
In addition the Bureau places ads in the consumer magazines in the second quarter of the year to promote the
summer drive market and fulfillment for the program was for over 5,245 visitorslm The Bureau forecasts that
the "Summer Passport Program" which was featured in the consumer ads, the Bureau's web site and through a
client promotion to Arizona travel agents to encourage the drive market from the deserts to the beaches
generated over 16,000 room nights for Summer 2003. The occupancy increased approximately 10% monthly
from May through Julyz, 2003
• Occupancy for May 2003 was 62.4%
• June 2003 70.8%
• July 2003 81.1%
Estimating the ROI on advertising we are making these projections based upon reasonable assumptions, given
the current economic conditions and this reflects the Bureau's best judgment at the present time —
• Circulation and creating awareness to over 3.2 million prospects in the meetings market done
in fiscal budget year 2003 -4.
• Fulfillment to
0 2,400 telephone calls
0 7,200 e -mail requests
0 3,000 business reply cards from magazines
o The Bureau estimates that a minimum of 25 %3 of those inquiries convert to stays in
the Newport Beach area
• Servicing 1,200 visitors in budget year 2003 -4 which we project represent approximately
372,000 room nights 4 for $4.872 million.
• Servicing 17,000 conventioneers in budget year 2003- 4 which we project represents
approximately 527,000 room nightss for $6.91 million
• Distribute over 86,000 visitor guides annually
Consumer and Visitor Advertising
The visitor and consumer is a high priority for the Newport Beach Conference and Visitors Bureau because of
its very positive contributions toward economic development and job creation for Newport Beach. The
Newport Beach Conference and Visitors Bureau's primary objective is to promote Newport Beach as a
premiere leisure destination that is desirable and a safe place to take a vacation. The success of the consumer
and visitor industry is extremely important to the City of Newport Beach's well being. In addition to getting
visitors to come to Newport Beach the Bureau promotes that the visitor should extend their length of stay and
The hotel industry in Newport Beach had a record winning summer 2003 and a portion of that was pent
up demand forfamily vacations and the Bureau would like to think that with the help of their partners and
the Summer Passport campaign 2003 they helped to create awareness for Newport Beach as the premiere
summer vacation destination Between May and July 2003 occupancy rose 20% and some of this rise in
occupancy. In order to get this business some of the increase in occupancy came about as a result of a
lower room rate. In May 2003 the room rate was $133.78 by July 2003 the average daily room rate had
dropped to $131.12.
2 PKF Consulting Statistics
3 The Bureau makes the assumption that of those inquires via telephone, e-mail and replies to ads that a
conservative number of 25% of those inquires convert to definite bookings
4 The Bureau makes the assumption based on IACVB data that a visitor spends 3.1 nights in a destination
at a daily rate of $131.12
5 Same as foot note # 4
Page 3 of 4
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engages in more activities in Newport Beach. All the advertisements direct the consumer to the Bur'eau's
program rich web site and the 800 phone number providing some tracking of the requests for information and
a timely response for fulfillment The Bureau campaign uses magazine publications targeted to these key
market areas — California, Arizona and Nevada. The Bureau's strategy is to place the advertising insertions in
the late Spring to provide a very high impact message and leverage the publication dollars as much as possible
to appeal to the summer vacation traveler. The Bureau does a cooperative ad with the OCTC, Orange County
Tourism Council and in certain publications this results in a 2 page four color spread and sometimes a multi-
page pull out.
In addition the Newport Beach Conference and Visitors Bureau are on the State of California's and the OCTC,
Orange County Tourism Council's web sites. These web sites have extensive travel and tourism entities and
they also serve as a "portal" to the Bureau's tourism -related members. Both of these web sites have a "call to
action" section whereby the visitor can request specific information on Newport Beach.
Some highlights about the insertions in the consumer and visitor publications
• Sunset Maga#xe May and June issues. Over 1 million Sunset subscribers have visited Southern
California in the past three years. This issue targets California, Arizona and Nevada. In addition to the
ad in Sunn4 the value added of reading service listings (business response cards) and hot links to
www.visitcalifomia.com. Additional distribution at selected Sunset sponsored events. With the June
issue of Sunset creation of "The Best of California Drives" which contains maps and driving
itineraries. An inspiration for day, weekend and weeklong drives around California. Bonus
distribution to California Welcome Centers and CVBs.
• Traarl and LA&um June issue will target the Western Region from Arizona to Minnesota. Travel and
Leisure's readership is affluent and frequent travelers with expendable incomes to travel, golf, shop
and enjoy leisure activities.
• Via Maga: i=_is the magazine for AAA and targets California, Utah and Nevada. Via offers these value
added opportunities — appearances on the web site and hypedinks to our web address. In addition the
reader uses a service reader form which generates a lead and VIA supplies the names and address via e-
mail of those requesting literature.
• An!ZPna Mghvays_targets the Arizona market and the readers have the highest average household
income in the western region of AAA.
Estimating the ROI on consumer and visitor advertising we are making these projections based upon
reasonable assumptions, given the current economic conditions and this reflects the Bureau's best judgment at
the present time.
• Circulation and crating awareness to over 11 million potential prospects in the leisure market
• Fulfillment to
0 3,000 business reply cards from magazines
o The Bureau estimates that a minimum of 25 1/66 of those inquires convect to stays in the
Newport Beach area.
6 The Bureau makes the assumption that of those inquires via telephone, e-mail and replies to ads that a
conservative number of 25% of those inquires convert to booked overnight accommodations.
Page 4 of 4
H: UenWVORDDATAOnarketingWdvertlsingROI for04- 0513udget.doc
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NEWPORT BEACH
CONFERENCE AND VISITORS BUREAU
2004 - 2005 BUDGET
7/82004
Column A
Column B
Line Item/
Chart of Accounts
Budget
03/04
Budget
04105
REVENUE
Hotel TOT /400
1,223,709
1,678,547
Membership/402
73,500
66,500
Merchandise /406
500
500
VG Profit Share /412
0
10,000
Internet Comsn/426
0
2,000
Interest Income /431
0
13,000
Dividends2000
I ol
2,000
TOTAL REVENUE
$1,297,709
$1,772j547
$331,594 $0
TOTAL (EXPENSES) $1,629,303 $7,772,547
7/82004
NEWPORT BEACH
CONFERENCE AND VISITORS BUREAU
2004 - 2005 BUDGET
7/8/2004
Column A
Column B
Line Item/
Chart of Accounts
Budget
03/04
Budget
04/05
PERSONNEL EXPENSES
Salaries/225
526,790
576,272
Private Contractor /502
41,500
21,500
PersonneVTemp. Services/505
4,000
15,160
PersonneVPa oll Taxes/230
49,482
52,314
Personnel BenefiW508
53,904
79,380
Workers Comp./51 0
9,400
9,000
TOTALPERSONNEL
$685076
$753,626
OPERATIONS
Rent/522
85,699
90,832
Le aVAccount. /526
12,100
17,350
Bank Charges/527
1,050
1,500
Comp. Consul[. /528
13,500
14,000
Re air /MaintJ530
2,000
2,000
Maint. Contracts/532
3,525
3,665
Office Supplies/534
13,420
17,416
Insurance /536
6,669
8,160
Equipment/540
10,790
11,500
Equipment Lease /542
24,000
24,000
Miscellaneous/548
01
0
Outside Services/554
4,0001
4,200
Taxes/Ucenses/556
1,1921
1,303
TOTAL OPERATIONS
$177,945
1 $195,926
7/8/2004
NEWPORT BEACH
CONFERENCE AND VISITORS BUREAU
2004 - 2005 BUDGET
VILArIrISf
Column A
Column B
Line IteM
Chart of Accounts
Budget
03/04
Budget
04/05
MARKETING
TraveVEntert. /602
11,814
15,884
Trade Shows/604
62,318
90,917
Publications/606
8,000
11,000
Visitors Guide /607
0
Printing/608
12,895
15,040
Website MaintJ609
15,000
14,000
Advertise -Mt sJ610
124,846
132,962
Advertise - Consumer /611
136,829
130,029
Advertise - Tourism /612
69,825
74,351
Fam /Site Tours /614
7,500
15,000
Sales Blit7J615
24,100
17,050
Newsletter /616
1,500
2,500
Com t. Database /618
3,000
1,000
Telemarketing/620
17,000
17,000
PostlDir. MaiV622
45,000
60,720
Media/Photo /PR/624
63,900
79,100
Community Relat/626
35,000
0
Mt . /Events/LocaV627
20,555
22,144
Prof. Memb /Subs/628
13,000
11,485
Contract Sales/Rep/629
69,000
83,000
Research/630
400
400
Educabon/Trainin 31
12,800
14,413
Gen. Marketing/632
0
0
Sec. Promotions/634
12,000
15,000
TOTAL MARKETING
$766,282
$822,995
TOTAL EXPENSES
$1,629,303
$1,772,547
VILArIrISf