AARP Life@50+ National Member Event & Expo Surveys, … · 2019-12-17 · Greater Boston CVB...

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DMO Marketing Activities Study 1

2013 Convention Sales & Marketing Activities Study

© 2013 Destination Marketing Association International. All rights reserved. This report may not be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by an information storage and retrieval system, without permission from the publisher.

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2013 Convention Sales & Marketing Activities Study

TABLE OF CONTENTS

INTRODUCTION ....................................................................................................................................................................... 3 RESPONDENTS ........................................................................................................................................................................ 5 EXECUTIVE SUMMARY .............................................................................................................................................................. 7 DETAILED RESEARCH FINDINGS (INCLUDING BREAKDOWNS BY DESTINATION CONVENTION SPACE SIZE) ..................................................... 17 QUESTIONNAIRE ................................................................................................................................................................... 38 ABOUT DMAI AND THE DESTINATION & TRAVEL FOUNDATION ...................................................................................................... 43

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2013 Convention Sales & Marketing Activities Study 3

INTRODUCTION The meetings and conventions industry generates approximately one trillion US dollars in economic impact in North America.1 More than one billion US dollars in tax revenues is realized and almost seven million much-needed jobs are supported by the industry.

Official destination marketing organizations (DMOs) are responsible for increasing the economic benefits of tourism and meetings to their respective destinations. They do this, in close collaboration with their local industry partners, by influencing organizations to hold their meetings and conventions in their destinations and ensuring a successful experience. The DMO group sales channel is significant; in 2012, it influenced one in five of all group room night demand in the US alone, representing 38 million group room nights occurred.2

The Convention Sales & Marketing Activities Study is the most comprehensive study on destination meetings and convention (M&C) sales, marketing and services practices. This research focuses on the evolving strategies and efforts of DMO sales teams (convention centers were also invited to participate). The goal of this study is to provide DMOs with a unique and invaluable informational resource to guide their M&C sales, marketing and services programs, budgeting and planning.

In September 2013, an online survey was sent to 529 US and Canadian DMOs and 97 US and Canadian convention centers. A total of 180 organizations responded -- 136 DMOs with a M&C sales function, 30 convention centers and 14 combined DMO/convention centers.

This report is divided into two sections – an Executive Summary and Detailed Research Findings. The Executive Summary presents top-level results based on all DMO respondents and all convention center respondents. The Detailed Research Findings organize the results based on three destination size categories, as illustrated in the below table (with the number of respondents for each):

destination size (convention center exhibit space)

# of DMO respondents

# of convention center respondents

# of DMO/convention center combined*

Gateway Market (500,000 or more sq. ft) 21 4 3

Mid-size Market (100,000 to 499,999 sq. ft.) 35 14 5

Regional Market (less than 100,000 sq. ft) 73 9 4

Unidentified (included in Total column only) 7 3 2

Total 136 30 14

Note: For the data tables in this report, combined DMOs/Convention Centers respondents are included in both DMO respondent and Convention Center Respondent categories.

1 The Economic Significance of Meetings to the U.S. Economy, Convention Industry Council. Canadian Economic Impact Study, MPI Foundation Canada 2 2013 DMO Group Sales Channel Impact Study, DMAI

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2013 Convention Sales & Marketing Activities Study 4

The report covers the following key meetings and conventions topics and themes:

Sales and marketing programs, including online and digital activities

Attendance marketing support and onsite convention services offered

Revenues and expenses

Incentive fund trends and allocation policies

Performance reporting

Challenges and opportunities facing the convention sales and marketing functions

No individual responses are included in this report. The questionnaire can be found at the end of the report. Sums may not total 100% due to rounding.

The currency exchange rate used for Canadian responses: 1USD=1.04CAD (as of Oct. 23, 2013).

DMAI thanks all of the respondents for their invaluable contributions to this study. Appreciation also goes to Ruth Trojan, Nadler & Associates, for managing the project and authoring the report.

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2013 Convention Sales & Marketing Activities Study 5

RESPONDENTS

Aberdeen Area CVB

Abilene CVB

Albany County CVB

Amarillo CVC

Anaheim/Orange County VCB

Asheville CVB

Athens CVB

Atlanta CVB

Atlantic City CVA

Augusta CVB

Austin Convention Center

Austin CVB

Baltimore County Tourism and Promotion

Bay Area Houston CVB

Beaumont CVB

Bentonville CVB

Billings CVB

Bismarck-Mandan CVB

Boulder CVB

Bowling Green Area CVB

Branson CVB

Buffalo Niagara Convention Center

Chapel Hill/Orange County Visitors Bureau

Charlotte Convention Center

Charlottesville Albemarle CVB

Chicago's North Shore CVB

Choose Chicago

Colorado Convention Center

Colorado Springs CVB

Columbia (MO) CVB

Connecticut Convention & Sports Bureau

Dayton/Montgomery County CVB

Destination DC

Destination Halifax

Destination Missoula

Discover Kalamazoo

Durham CVB

Emerald Coast Convention Center

Events DC

Experience Columbus

Experience Grand Rapids

Fargo Moorhead CVB

Fayetteville Area CVB

Flagstaff CVB

Fort Worth CVB

Galena/Jo Daviess County CVB

Garrett County Chamber of Commerce

George R. Brown Convention Center

Go Wichita

Grand Junction VCB

Great Lakes Bay Regional CVB

Greater Birmingham CVB

Greater Boston CVB

Greater Columbus Convention Center

Greater Des Moines CVB

Greater Fort Lauderdale CVB

Greater Green Bay CVB

Greater Houston CVB

Greater Lansing CVB

Greater Madison CVB

Greater Miami CVB

Greater Ontario CVB

Greater Palm Springs CVB

Greater Raleigh CVB

Greater Tacoma Convention & Trade Center

Greene County, CVB

Greensboro Area CVB

Gulf Shores & Orange Beach Tourism

Hawaii Convention Center

Hershey Harrisburg RVB

Hilton Head Island VCB

Irving CVB

Irving Convention Center at Las Colinas

Jacob K. Javits Convention Center

Jefferson City CVB

Kansas City CVA

Lansing Center

Las Vegas CVA

Lee County VCB/Beaches of Fort Myers & Sanibel

Lexington Center

Longview CVB

Los Angeles Tourism & Convention Board

Manhattan CVB

Meet Hawaii

Meet Minneapolis

Meet Puerto Rico

Metro Toronto Convention Centre

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2013 Convention Sales & Marketing Activities Study 6

RESPONDENTS (cont’d.)

Midlands Auth. for Conv., Sports & Tourism

Montreal Convention Centre

Naples, Marco Island, Everglades CVB

New Orleans Convention Center

New Orleans CVB

Newport News Tourism Development Office

NYC & Company

Ocala/Marion County VCB

Ogden Eccles Conference Center

Omaha CVB

Ottawa Convention Centre

Ottawa Tourism

Overland Park CVB

PA Dutch CVB

Palm Springs Convention Center

Pasadena CVB

Plano CVB

Positively Cleveland

Providence Warwick CVB

Pulaski County Tourism Bureau

Quad Cities CVB

RBC Convention Centre Winnipeg

Reno Sparks CVA

Richmond Region Tourism

Rochester (MN) CVB

Rockford Area CVB

Roseville Visitors Association

Ruston Lincoln Parish CVB

Sacramento CVB

San Antonio CVB

San Diego Tourism Authority

San Francisco Travel Association

Santa Monica CVB

Scottsdale CVB

SeaGate Convention Centre

Sonoma County Tourism

Spokane Public Facilities District

Springfield (MO) CVB

St. Augustine, Ponte Vedra & The Beaches VCB

St. Charles Convention Center

St. Louis CVC

Staunton CVB

Tampa Convention Center

Team San Jose

Tourism Saskatoon

Travel Portland

Traverse City Tourism

Tri-Cities VCB

Utah Valley CVB

Valdosta-Lowndes Cty. Conf. & Tourism Auth.

Valley Forge CVB

Vancouver USA Regional Tourism Office

Visit Baltimore

Visit Baton Rouge

Visit Bloomington (IN)

Visit Buffalo Niagara

Visit Champaign County

Visit Charlotte

Visit Cheyenne

Visit Corvallis

VISIT DENVER

Visit Duluth

Visit Eau Claire

Visit Fairfax

Visit Indy

Visit Knoxville

Visit Lubbock

Visit Newport Beach

Visit Orlando

Visit Phoenix

Visit Salt Lake

Visit Santa Barbara

Visit Seattle

Visit Spokane

Visit Topeka, Inc.

Visit Tucson

VisitNorfolk

Washington State Convention Center

Westchester County Tourism & Film

Wilmington and Beaches CVB

Wisconsin Center District

Wisconsin Dells VCB

Woodward CVB & Conference Center

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2013 Convention Sales & Marketing Activities Study 7

Your Customer Finds You 23%

EXECUTIVE SUMMARY What’s Happening Out There and How It’s Impacting Destination Partners and Their Decisions Although DMOs and convention centers continue to focus on longstanding priorities – such as targeting specific market segments, filling need periods, branding/rebranding the destination, making adjustments heard in a crowded marketplace – it is certainly not more of the same. Regional destinations with significant new and/or expanded products (hotels, convention centers and the like) are coming online and mid-size destinations are increasingly taking on the gateway markets. Added to this mix are the game-changing opportunities in destination sales and marketing brought on by technology. The continuing shift in emphasis to a more nuanced mix of sales, services and marketing, in what was traditionally a sales-dominant industry, reflects the evolving DMO role in the group sales channel. Sales is changing; almost half of respondents acknowledge that Service is the New Sales and increasingly destinations are using offered services and support to differentiate themselves from the competition. The role of marketing remains a bit more unclear and, for now, continues to take a secondary role with only one out of four respondents who agree that Marketing is the New Sales. Nevertheless, M&C budgets and shifts in emphasis and focus suggest that online and digital marketing have found a permanent and growing seat at the table. Challenges abound, many not quickly or easily resolved such as aging and limited industry infrastructure and transportation access. Issues of local stakeholder education and cooperation, balancing traditional and new paradigms and quickly rebuilding after significant recessionary funding cuts are top-of-mind and receiving increased attention. In this way, the destination works to ensure it remains present and viable in the meetings and convention marketplace and that the DMO, especially, remains relevant.

Sales is Just Sales 29%

Marketing is the New Sales

24%

Services is the New Sales 47%

Convention marketing is in the sales department

27%

Convention sales is in the marketing department

8%

Convention sales & convention marketing are in different departments, but work on an equal basis

65%

You Find Your Customer 77%

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2013 Convention Sales & Marketing Activities Study 8

increase 5% or more

increase less than 5%

remain the same

decrease less than 5%

decrease 5% or more

28% 31% 37%

3% 1%

increase 5% or more

increase less than 5%

remain the same

decrease less than 5%

decrease 5% or more

16%

27%

54%

3% 0%

Destinations Invest Significant Resources in Meetings & Conventions Sales, Marketing and Services

Collectively, responding DMOs and convention centers invest more than one-third of a billion dollars (USD) to positively position their destination in the M&C marketplace. Sales and marketing activities and personnel comprise the lion’s share of this investment, at 88%.

Respondents are very optimistic on their continued ability to invest in sales and marketing strategies for the foreseeable future with more than half (59%) anticipating increases in their sales and marketing budgets and 42% citing increases in their services budget, though at a lower growth rate.

total spending* Total Respondents* DMOs Convention Centers

Sales & Marketing Activities and Personnel $272,260,000 $254,496,000 $127,959,000

Services & Housing Activities and Personnel $36,142,000 $33,443,000 $9,083,000

Total $308,402,000 $287,939,000 $137,042,000

median spending+ Total Respondents* DMOs Convention Centers

Sales & Marketing Activities and Personnel $650,000 $708,000 $533,000

Services & Housing Activities and Personnel $150,000 $140,000 $532,000

* DMO and Convention Centers columns both include DMOs that run a convention center; the two totals cannot be combined due to double counting

Anticipated Change in 2014 Fiscal Year Budget

Sales & Marketing Activities and Personnel Services & Housing Activities and Personnel

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2013 Convention Sales & Marketing Activities Study 9

Solid Investment in Convention Sales, Marketing and Services Personnel

Responding DMOs and convention centers reported a total of 1,687 meetings and conventions-dedicated personnel. Slightly more than half (55%) are sales people (full- and part-time) with an additional 24% devoted to convention services, and 18% to marketing and public relations.

DMOs have a slightly higher concentration of marketing/public relations staff compared to their convention center partners (19% vs. 12%) while centers have more than one-third of their staff devoted to services (36% compared to 22%).

DMO M&C Personnel Convention Center M&C Personnel

total number of meeting & convention employees

Total Respondents*

Total DMOs

Total Conv. Ctrs.

Full-time M&C salespeople (incl. satellite offices) 917 808 238

Part-time M&C salespeople 24 22 4

Full-time M&C services staff 401 309 148

Full-time dedicated M&C marketing/PR staff 298 274 48

Full-time dedicated M&C research staff 59 55 10

Total M&C-related employees 1,687 1,457 446

Contract M&C personnel 85 63 39

+ DMO and Convention Centers columns both include DMOs that run a convention center; the two totals cannot be

combined due to double counting

54%

1%

22%

19%

4%

Full-time M&C salespeople

Part-time M&C salespeople

M&C services staff

Dedicated M&C marketing/PR staff

Dedicated M&C research staff 50%

0% 36%

12%

2%

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2013 Convention Sales & Marketing Activities Study 10

Meetings & Conventions Marketplace Relies on Personnel to Build Key Relationships

By far, the largest investment component for DMOs and convention centers is staffing (51% for DMOs; 31% for convention centers). Destinations do participate in a wide variety of sales and marketing activities and channels, but no one activity garners more than 12% of the budget.

Advertising (trade and consumer) and attending industry trade shows/conventions/conferences are key activities for all respondents while event sponsorships and communications/public relations consume a larger portion of convention center budgets.

Relationship and Partnership Building with Local Economic Development

Working in partnership with the destination’s economic development entity is common, with three-fourths of DMOs and two-thirds of convention centers collaborating on shared economic goals.

While the majority of respondents target market segments to those aligned to the destination’s economic goals, a smaller portion are involved in joint activities such as sales missions. Many expect to pursue future partnership opportunities, including expanded marketing and communications activities.

% of total spending on M&C-related expenses, current FY

Total DMOs

Total Conv. Ctrs.

Top budget items

M&C staff (sales, services, dedicated mktg. staff, dedicated research staff, etc.)

51 31

Consumer advertising 9 10

Industry trade shows/conventions/conferences 9 12

Trade advertising 7 8

Event sponsorships 4 8

Communications/Public relations 3 9

Sales missions/Sales calls 3 6

% of respondents Total DMOs

Total Conv. Ctrs.

Works with local government’s economic development entity

74 63

Pursue market segments that align with destination's economic development goals

72 78

Conduct joint sales missions domestically 33 39

Arrange for economic development partners to meet with tradeshow exhibitors while in-market

31 48

Share international representation costs 11 9

Conduct joint sales missions internationally 10 26

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2013 Convention Sales & Marketing Activities Study 11

Traditional Sales Activities Dominate but Digital Marketing (including Social Media) Gaining Emphasis

Respondents continue to rebuild their efforts after sustaining funding cuts during the recent recession, focusing on those activities which are the key lead generators for the destination. Sales missions and sales calls are seeing a resurgence in emphasis, with one half of DMOs and almost two-thirds of centers focusing on this sales activity. Industry trade shows/conventions/conferences, the top lead generator for both DMOs and conventions, are also benefiting from newly-found attention as are third party partnerships, once considered a significant threat to DMOs.

Sales is not the only discipline experiencing a shifting focus in promoting and securing meetings and conventions. Marketing, especially digital and online, though not currently considered a key lead generator among respondents, has gained tremendous attention. Social media leads with 47% of DMOs and 37% of centers indicating increased emphasis. Email marketing and website (M&C-specific) are also gaining regard, but at lower levels.

top lead generators (weighted % of respondents)*

Total DMOs

Total Conv. Ctrs.

Industry trade shows, conventions, conferences

48 49

Sales missions/Sales calls 44 34

Third party partnerships 20 6

Site inspections/visits (organization-specific)

13 27

Website (M&C-specific) 7 11

Fam trips ** 9

Trade advertising ** 6

* weighted % of respondents who selected each activity as either their #1 or #2 top lead generator

** selected by fewer than 5% of respondents

% respondents Total DMOs

Total Conv. Ctrs.

Increased emphasis/shift in focus

Sales missions/Sales calls 51 63

Industry trade shows, conventions, conferences

49 48

Social media 47 37

Third party partnerships 46 30

M&C staff 41 37

Site inspections/visits (organization-specific)

29 37

Email marketing 28 33

Website (M&C-specific) 27 33

Event sponsorships 27 30

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2013 Convention Sales & Marketing Activities Study 12

Online and Digital Marketing Activities: A Deeper Dive

DMOs and convention centers engage in a wide variety of marketing activities with banner ads and social media postings dominating. Although DMOs are a bit more likely to include email blasts and e-newsletters to their marketing repertoire, more than half of centers also participate.

Online and digital marketing activities are not generally considered to be significant generators of leads for meetings and conventions. Convention centers, however, do regard positively a dedicated M&C website with banner ads and social media postings to a lesser degree. Nevertheless, as seen on the previous page, respondents have indicated that many of these activities will be gaining some level of increased emphasis in the very near future.

% of respondents Total DMOs

Total Conv. Ctrs.

Top marketing activities pursued

Banner ads on other websites 74 69

Social media postings 73 76

Email blasts 70 57

E-newsletters 65 57

Search marketing, key words 57 55

Dedicated M&C website 40 57

B2B networking; sharing contacts 39 34

Webcasts/Webinars 18 10

top lead generators (weighted % of respondents)*

Total DMOs

Total Conv. Ctrs.

Email blasts 28 12

Dedicated M&C website 24 48

B2B networking; sharing contacts 23 20

Search marketing, key words 21 16

Banner ads on other websites 15 20

Social media postings 14 18

E-newsletters 13 --

* weighted % of respondents who selected each activity as either their #1 or #2 top lead generator

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2013 Convention Sales & Marketing Activities Study 13

Universal Emphasis on Performance Reporting

In the ten years since DMAI formalized performance reporting for DMOs (including the meetings and conventions function), many of the recommended measures and metrics have been incorporated into goal-setting for sales personnel. The vast majority of DMOs and convention centers have sales performance goals – 99% for DMOs and 90% for convention centers.

DMOs appear somewhat divided between leads and bookings, owing to the perennial question of how much a DMO impacts the decision to book. Nevertheless, the number of booked room nights is the number one performance measure used for sales personnel for both DMOs and convention centers with the number of leads number two for DMOs.

Lead room nights and the number of bookings are used by almost half of DMOs and to a much lesser extent by centers, who are more apt to focus on product goals including revenue-related categories (rental fees, occupancy and utilization).

% of respondents Total DMOs

Total Conv. Ctrs.

Number of booked room nights 77 52

Number of leads 64 17

Number of room nights from leads 49 21

Number of bookings 48 31

Direct attendee spending 17 10

Number of attendees from leads 16 3

Number of booked attendees 15 7

Other 14 45

No goals 1 10

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2013 Convention Sales & Marketing Activities Study 14

A Wide Variety of Attendance Marketing Support and Onsite Services Offered to Planners

With services considered the new sales for many, DMOs and convention centers offer a wide array of attendance marketing support and onsite services to differentiate themselves from their competitors as well as ensure a successful convention and partnership with planners. These services and support, however, are more apt to be offered selectively than on a universal basis.

DMOs are slightly more likely to provide attendance marketing support though the incidence is high for both (DMOs: 86%; centers: 70%). For DMOs, the top two services are attending the prior year’s event to promote the destination and offering public relations support (number two for centers as well). For convention centers, adding event info to the center’s website ranks number one and using social media to encourage potential attendees ties for second. On average, DMOs spend $69,000 on support and convention centers slightly less, $65,000. One-third of DMOs and one-quarter of centers expect this amount to increase next year with negligible concerns that the amount will decline.

In terms of onsite services, a welcome desk or some form of hospitality is more likely to be offered to all events, though still at a very low incidence (DMOs: 32%; convention centers: 43%). Meet and greet services and social media postings to attendees are also offered to all events by slightly fewer than one-third of respondents.

% of respondents Total DMOs

Total Conv. Ctrs.

Offers attendance marketing support 86 70

Attend prior year's event to promote locale 92 75

Public relations support 89 80

Liaison with city, state/province or regional affiliated groups, gov't. agencies

88 65

Event info. to DMO and/or center website(s) 83 95

Social responsibility projects connections 82 60

Social media messages to potential attendees 76 80

Assistance securing event speakers/keynoters 67 45

Cash payments/rebates/mktg support fees 66 40

Small logoed promotional items 66 45

Entertainment, sports, cultural discounts 64 50

Local/Regional attendance building efforts (e.g., emails, data mining)

61 50

Travel and/or lodging incentives, discounts 44 25

Event ads paid by the DMO or center 30 25

Marketing to international attendees 19 35

Total DMOs

Total Conv. Ctrs.

Average spent on attendance marketing support – current fiscal year

$69,000 $65,000*

Anticipated change for next year (% of respondents)

Increase 35 24

Decrease 3 --

Remain the same 63 77

* small sample, results directional only

% of respondents who offer onsite service to all events/to select events

Total DMOs

Total Conv. Ctrs.

Welcome desk/Hospitality 32/62 43/37

Meet & greet services 31/59 23/57

Registration support 29/55 18/30

Attendee social media messages during event 29/49 30/33

Mobile app/Microsite for delegates 18/41 23/23

Local signage/banners (airport, downtown, etc.) 11/79 7/60

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2013 Convention Sales & Marketing Activities Study 15

Hotel Metrics Still Dominate When DMO and Convention Center Success is Measured

Hotel metrics continue to be the yardstick by which DMO success is measured, with more than eight out of ten destinations focusing on hotel room nights booked by the DMO and almost seven out of ten on hotel occupancy levels (destination level). Measures that most closely align with a typical DMO’s mission -- to produce economic benefits for the destination, such as direct spending and visitor-related tax revenues -- are used, though at a lower level, 60% and 50%, respectively. Jobs supported by DMO bookings as a measurement category is employed by one-fourth of destinations.

As would be expected, the center’s operation profit/loss is the number one metric used to measure success (83%). Given that convention centers contribute to a destination’s economic well-being, however, it is not surprising to see centers being held accountable in a similar manner to DMOs. Event spending at the center is used by 70% of destinations while tax revenues are utilized by 41%. Jobs supported by the center’s events appears as a metric used by one-third.

% of respondents Total DMOs

DMO success in the M&C marketplace

Total number of hotel rooms booked by DMO 82

Hotel occupancy levels (destination level) 68

Direct spending generated by DMO bookings 60

Increased # of DMO bookings for new events 54

Visitor-related tax revenues generated by DMO bookings

50

Total M&C spending in the destination (whether or not booked by DMO)

38

Jobs supported by DMO bookings 25

Increased M&C market share for destination 22

DMO operational profit/loss 22

Convention center operational profit/loss+ 13

We do not formally measure 5

% of respondents Total

Conv. Ctrs.

Convention center success in the M&C marketplace

Center operational profit/loss 83

Ttl # of visitors generated by events at the center 70

Total event spending at the center (i.e., attendees, exhibitors, organizers)

70

Ttl # of hotel rooms booked by events at the center 67

Visitor-related tax revenues generated by events at the center

41

Jobs supported by events at the center 30

Public Relations – press coverage 30

Hotel occup. levels generated by events at the center 26

DMO operational profit/loss 11

We do not formally measure 4

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2013 Convention Sales & Marketing Activities Study 16

Incentive Funds: An Important Competitive Tool

(Note: Data tables have been adjusted to reflect destination-level results.)

Slightly more than one half of destinations have available a fund to offer discounts and incentives to attract conventions, tradeshows and other qualified groups that utilize local hotels. The median is $100,000, with an optimistic outlook for future growth anticipated by most (one out of three respondents.)

Sources for incentive funds are somewhat varied with more than half deriving from DMO budgets. Hotel taxes segregated specifically for incentive fund use is less common, used by slightly more than one-fourth of destinations. Two-thirds of DMOs typically determine the allocation of these funds, with an additional 22% of destinations having given this responsibility to a consortium/independent committee.

Incentive fund allocation criteria are governed by economic considerations and/or the destination calendar (seasonality, long-term commitment to the destination). Hotel room nights produced dominate in consideration, either in combination with some additional economic benefit (62% of respondents) or alone (46%).

The Return on Investment (ROI) for incentive funds relative to direct spending (for the 56% of destinations that measure) is $104 to $1.

Total*

Destination has an incentive fund 53%

Median size – current fiscal year $100,000

Average (mean) size – current fiscal year $831,000

Total incentive fund – current fiscal year $44,853,000

(% of respondents)

Anticipated change in incentive fund next year

Increase 31

Decrease 5

Remain the same 65

Sources of incentive fund

DMO budget 52

Hotel tax segregated for incentives 27

Municipal (or other) government general fund and/or tax revenues

16

Convention center operating income/reserves 11

Special fund allocated by hotel community 11

% of respondents Total*

Who determines allocation of incentive fund

DMO/CVB 62

Consortium/Independent committee 22

Convention center 2

Allocation Criteria

Select events with a certain combination of past economic impact and total hotel room nights

62

When the event meets/Seasonality of the event 52

Events that sign long-term agreement to anchor to destination/add destination to a set rotation pattern

50

All events with a certain level of past total htl rm nights 46

All events with a certain level of past economic impact 29

All events with a certain level of past attendance 21

Only events that ask for discounts and/or incentives 8

*Note: Data tables have been adjusted to reflect destination-level results.

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2013 Convention Sales & Marketing Activities Study 17

DETAILED RESEARCH FINDINGS

DMO Role in Meetings & Conventions Marketplace

DMOs play a key role in securing meetings and conventions for their destination with almost three-fourths pursuing single or multiple property events. Mid-size market DMOs are more involved in a varied fashion, rising to eight out of ten while regional market DMOs less so. As for having primary sales responsibility for the Convention Center, gateway and mid-size DMOs are a bit more likely to be involved at this level than regional DMOs, at 71% versus 55%.

% of respondents* Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Primary sales responsibility for Center's conventions+ 70 71 71 55

Pursue single property meetings & conventions 74 76 89 66

Pursue multi-property meeting & conventions (no conv. center) 72 71 83 67

Other 13 19 6 14

* excludes DMOs that run a convention center + only those respondents with a convention center

Booking Window the DMO Controls at the Convention Center

For those DMOs that do have some level of booking control at the destination’s convention center, the typical window is either anytime or 18+ months out.

% of respondents* Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Anytime 30 40 18 30

12 months+ 12 10 12 12

13 months+ 3 5 3 3

18 months+ 26 20 36 26

24 months+ 10 15 9 10

Other** 20 10 21 20

* includes only those destinations that have a convention center; excludes DMOs that run a convention center ** do not control convention center books (14 responses)

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2013 Convention Sales & Marketing Activities Study 18

Top Priorities for the Meetings & Convention Sales and Marketing Function Gateway Markets are focused on increased penetration throughout the meetings and conventions market, feeling competitive pressure from mid-size markets and the challenges of a saturated marketplace. Specific attention is being paid to:

Targeting specific market segments (nine mentions): incentive, association, international/South America, medical, corporate, commercial/trade

Shifting the emphasis (nine DMO mentions, four convention center mentions): larger share of citywides, expand repeat business, increase lead closure/bookings, prioritizing sales activities

Branding/Marketing the destination, the product and the DMO (seven DMO mentions, two convention center mentions): expanded/ renovated convention center, new hotels, more digital efforts, explore new ways to connect with clients, clarifying/executing the DMO message

Maximizing the destination’s calendar: (seven DMO mentions, three convention center mentions): filling need periods, pursuing business with higher percentage of overnight stays

Mid-size markets are looking to expand their presence in the marketplace as their M&C product grows, setting their sights on an even greater share of the national arena:

Grow international/national business/citywides (14 DMO mentions, six convention center mentions)

Focus on the calendar (nine DMO mentions, three convention center mentions): need periods, short-term business

Target market segments (eight DMO mentions, three convention center mentions): association, regional, corporate, SMERF

Raise awareness of product changes/expansions/enhancements (eight DMO mentions, two convention center mentions)

Regional DMOs are very diverse and yet targeted in their priorities in the coming year, as a result of their location, draw in the marketplace, smaller sales and marketing budget and product:

Specific market segments (30 DMO mentions, six conv. center mentions): association, corporate, state/regional, military, religious, SMERF

Increased planner awareness of destination product/work with community for greater outreach (17 DMO mentions)

Involvement with product development (13 DMO mentions): new/renovated convention center, new casino, new/renovated convention hotel

The destination calendar (eight DMO mentions, three convention center mentions): need periods, weekends, weekdays, summer

Take advantage of proximity to large markets (four DMO mentions): expanded transportation access, increased sales calls to feeder markets, soliciting overflow

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2013 Convention Sales & Marketing Activities Study 19

Top Challenges for the Meetings & Convention Sales and Marketing Function

DMOs and their convention center partners are facing a wide and somewhat daunting variety of challenges, many of which they can only indirectly manage, at best.

Gateway markets are facing increased competition through expanded and enhanced product development:

The double whammy of lack of destination appeal/misperceptions and competitive new product and availability (13 DMO mentions, two convention center mentions)

Issues with the destination convention center (seven DMO mentions, five convention center mentions): limited exhibit and meeting space, delayed expansion/renovation, construction

Internal DMO challenges (four DMO mentions): rebuilding after recessionary funding cuts, motivating staff/teaching ‘new paradigms,’ how to remain relevant

Increased client demands (three convention center mentions): discounting, no room block requirements, free rent Mid-size markets appear to be facing significant product limitations and are buffeted by competitive and market forces:

Aging and limited destination product (23 DMO mentions, seven convention center mentions): aging convention center, hotels and other facilities; limited meeting space; lack of convention center hotel, national branded hotel, limited airlift

Local and internal challenges (nine DMO mentions, three convention center mentions): balancing convention center’s needs with hotels’ needs, managing RevPAR guided pricing, attracting/keeping new talent, how to communicate with clients in new ways while maintaining traditional channels

Market conditions (six DMO mentions, seven convention center mentions): shorter lead times, delegates booking outside the block/clients not willing to commit to large room blocks, market/economic uncertainty

Competitive practices (six DMO mentions, six convention center mentions) and the DMO’s inability to keep up due to limited funding (six mentions): price battles, new destination entries in the market, ‘doing more with less’

Regional markets are wrestling with the growing pains that come when entering/growing their presence in the marketplace:

Insufficient product (67 DMO mentions, seven convention center mentions): aging/lack of hotel inventory/no national branded hotel/no convention center hotel, insufficient airlift, lack of space, lack of meeting space, transportation issues (no mass transit/insufficient parking/far from airport/limited taxis), no convention center

Internal limitations (25 DMO mentions, eight convention center mentions): lack of funding, lack of local cooperation/education/ understanding on how to position destination in marketplace, lack of destination awareness, limited staffing, how to overcome perception of ‘DMO as just the middleman’

Competition (15 DMO mentions): offered discounts, better options, better flexibility with dates/rates

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2013 Convention Sales & Marketing Activities Study 20

Paradigm Shifts in M&C Sales and Marketing

While more than three-fourths of respondents are cognizant of the proactive nature of customer acquisition, it is interesting to see this percentage rise among mid-size (DMOs: 82%; centers: 93%) while dipping among gateway and regional markets. Perhaps the former’s increasing desire to expand their presence in the national arena, previously mentioned, plays a role in this.

Consensus on the changing role of services and marketing, however, is not as clear cut among respondents. While services is gaining significant recognition in its role in securing business for a destination (acknowledged by 44% of DMOs and 59% of centers who agree that Services is the New Sales), it is the regional DMOs, as opposed to the gateway DMOs, who are embracing this shifting paradigm. Convention centers, across the board, are more inclined to accept the increasing role of services in the sales process.

% of respondents who agree Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Your Customer Finds You 23 25 18 25 24 38 7 36

You Find Your Customer 77 75 82 75 76 63 93 64

Marketing is the New Sales 25 16 30 24 16 -- 14 30

Service is the New Sales 44 26 36 53 59 71 57 60

Sales is Just sales 32 58 33 23 25 29 29 10

Relationship between Sales and Marketing Functions

For the majority of respondents, the M&C sales and marketing functions remain separate, at 61% for DMOs and 55% for convention centers. A smaller portion (DMOs: 21%; centers: 35%) house their marketing function in the sales department, though this percentage increases among regional markets where limited staff requires greater multitasking.

% of respondents Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

The convention marketing function is within the sales department

21 11 17 28 35 25 39 37

The convention sales function is within the marketing department

9 11 -- 14 7 25 -- --

The convention sales and the convention marketing functions are in different departments, but work on an equal basis

61 79 69 50 55 50 62 50

Other 8 -- 14 8 3 -- -- 13

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2013 Convention Sales & Marketing Activities Study 21

Meeting & Convention Sales and Marketing Budgets

The median DMO convention sales and marketing budget is $708,000 while that for convention centers is $533,000. This amount increases almost five times when gateway DMOs are considered while dropping by more than half for regional DMOs. The total amount spent by all respondents on convention sales and marketing activities and personnel is $272,260,000 (see * note below).

DMO budgets soared 8% compared to the prior year with regional market DMOs taking the lead at +10%. Convention centers also realized very healthy budget increases for the year, up an average 5%.

Both DMOs and convention centers are very optimistic for future budget growth with six out of ten expecting increases. More than one-fourth of DMOs and one-fifth of convention centers anticipate increases of five percent or more (though only in the mid-size and regional markets for convention centers).

meeting & convention budget - current fiscal year

Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Median spent on sales and marketing activities, personnel

$708,000 $3,200,000 $1,575,000 $344,000 $533,000 ** $2,000,000 $299,000***

Average (mean) spent on sales and marketing activities, personnel

$1,625,000+ $3,894,000+ $2,091,856 $718,000 $1,498,000+ ** $2,260,000 $522,000***

Change over prior year +8% +7% +9% +10% +5% ** +3% +4%

Est. percent change next year ++ (% of respondents)

Increase 5% or more 28 33 28 26 20 -- 29 20

Increase less than 5% 31 33 31 31 40 67 36 30

Remain the same 37 28 36 49 30 17 29 50

Decrease less than 5% 3 6 3 2 8 17 7 --

Decrease 5% or more 1 -- -- 2 -- -- -- --

Total spent on sales and marketing activities and personnel*

$254,496,000 $154,302,000 $58,572,000 $41,621,000 $127,959,000 $94,400,000*** $29,386,000 $4,173,000***

*NOTE: DMO and Convention Centers columns both include DMOs that run a convention center; the two totals cannot be combined due to double counting. Total Respondent spending on Convention Sales and Marketing Activities and Personnel is $272,260,000.

** insufficient sample

*** small sample size, results directional only

+ excludes Las Vegas

++ reasons for convention center increases of 5% or more: additional staff (two mentions), special one-time funding increase (one mention)

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2013 Convention Sales & Marketing Activities Study 22

Meeting & Convention Services Budgets

Meeting and convention services budgets also fared well, with DMOs experiencing a 7% growth and convention centers, up 4%. The average DMO invests almost $140,000 on servicing events that come into their destination; convention centers spend quite a bit more, at $532,000. Gateway destinations, with larger budgets and larger events, typically invest seven times more than the average ($950,000) and more than 15 times that of regional DMOs.

With servicing as the ‘new sales,’ destinations are expecting healthy increases in services activities budgets for the coming year. DMOs are a bit more bullish, with 16% anticipating a five percent or better increase compared to only 5% of convention centers (though regional centers are bucking the trend, at 17%).

Underscoring the importance of these activities, respondents collectively are spending more than $36 million on meeting and convention services.

meeting & convention budget - current fiscal year

Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Median spent on services & housing activities, personnel

$140,000 $950,000 $350,000 $60,000 $532,000* ** ** **

Average (mean) spent on services & housing activities, personnel

$408,000 $1,039,000 $459,000 $166,000 $433,000* ** ** **

Change over prior year +7% +9% +6% +4% +4% ** ** **

Est. percent change next year (% of respondents)

Increase 5% or more 16 29 14 12 5 -- -- 17

Increase less than 5% 27 35 28 23 40 75 30 33

Remain the same 54 29 55 63 55 25 70 50

Decrease less than 5% 3 6 3 2 -- 0 -- --

Decrease 5% or more 0 0 0 0 -- 0 -- --

Total spent on services, personnel+ $33,443,000 $15,581,000 $10,556,000 $7,306,000 $9,083,000 ** ** **

*small sample size, results directional only

** insufficient sample

+ NOTE: DMO and Convention Centers columns both include DMOs that run a convention center; the two totals cannot be combined due to double counting. Total Respondent spending on Convention Services and Personnel is $36,142,000.

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2013 Convention Sales & Marketing Activities Study 23

Meeting & Convention Personnel

Given that relationship building remains key in the meetings and conventions marketplace, sales personnel continue to comprise half the number of M&C-related staff for both DMOs and convention centers. Services comprise the second largest share of employee focus, especially among convention centers, in response to the growing importance of that function in positioning the destination.

Both gateway and mid-size DMO markets are allocating notable marketing/PR staff resources to this market as digital marketing, including social media, takes hold. Regional DMOs are lagging behind their convention center partners in staffing the meeting and convention function, no doubt due to the DMO’s need to focus on a wide variety of market segments with limited funding and staffing.

In total, respondents have 1,687 staff involved in their destination’s M&C sales and marketing activities.

average number of meeting & convention employees

Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Full-time M&C salespeople (incl. satellite offices) 6.7 14.0 9.4 3.1 6.4 8.7 7.1 4.1

Part-time M&C salespeople 0.4 0.3 0.1 0.4 0.2 0.2 0.1 0.2

Full-time M&C services staff 3.1 5.5 3.9 1.3 4.9 7.1 3.9 4.6

Full-time dedicated M&C marketing/PR staff 3.1 4.5 4.8 1.5 1.8 4.0 1.3 1.0

Full-time dedicated M&C research staff 0.6 1.5 0.7 0.3 0.4 0.6 0.5 0.2

TOTAL M&C-related employees* 13.7 25.4 18.9 6.4 12.7 20.5 12.9 10.0

Contract M&C personnel 0.6 0.9 0.5 0.5 1.3 2.8 1.4 0.4

*part-time staff counted as ½ full-time staff in Total M&C-related employees

total number of meeting & convention employees

Total Respondents+

Total DMOs

Total Conv. Ctrs.

Full-time M&C salespeople (incl. satellite offices) 917 808 238

Part-time M&C salespeople 24 22 4

Full-time M&C services staff 401 309 148

Full-time dedicated M&C marketing/PR staff 298 274 48

Full-time dedicated M&C research staff 59 55 10

Total M&C-related employees* 1,687 1,457 446

Contract M&C personnel 85 63 39

*part-time staff counted as ½ full-time staff in Total M&C-related employees

+ NOTE: DMO and Convention Centers columns both include DMOs that run a convention center; the two totals cannot be combined due to double counting.

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2013 Convention Sales & Marketing Activities Study 24

Budget Allocation for Meeting & Convention Activities

Although destinations participate in a wide variety of sales and marketing activities, soliciting and securing meetings and conventions remains a labor-intensive activity, characterized by one-on-one relationship building. DMO and convention center budget allocations reflect this paradigm, with one-half of DMO budgets (51%) and one-third of center budgets (31%) allocated to staff.

Attending industry trade shows/conventions/conferences, and consumer and trade advertising are the most common second tier of activities for DMOs, ranging anywhere from 7%-9% of budget, and slightly higher for convention centers (8% to 12%). Regional DMOs invest more in advertising (more than one fifth of their budget combined) and less on staff compared to larger DMOs.

% of total spending on M&C-related expenses in current fiscal year

Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway+

Conv. Ctr. Mid-size+

Conv. Ctr. Regional

M&C staff (sales, services, dedicated mktg. staff, dedicated research staff, etc.)

51 50 60 44 31 ** 43 54

Consumer advertising (e.g., in-flight magazines) 9 9 7 11 10 10 14 14

Industry trade shows, conventions, conferences 9 11 5 8 12 13 10 4

Trade advertising 7 6 5 11 8 8 5 8

Event sponsorships 4 4 6 2 8 11 7 3

Communications/Public Relations 3 3 2 4 9 11 3 3

Sales missions/Sales calls 3 3 2 2 6 7 4 2

Collateral material [M&C-specific] 2 2 1 3 2 2 2 3

Social media 2 2 * 2 * * * 1

Fam trips 2 2 1 1 5 3 4 2

Site inspections/visits (organization-specific) 2 * 1 * 5 6 3 1

Website (M&C-specific) 2 1 1 3 * * * 1

Third party partnerships 1 1 1 * * * 1 *

Research 1 1 1 1 * * * *

Outside sales representatives (non-employees) * * 1 1 * -- * --

Direct mail * * 1 * * * * *

Destination video [M&C-specific] * * * 1 * * * 3

Email marketing * * * * * * * *

Other 2 1 1 2 -- -- -- --

* less than 1% ** insufficient sample + small sample size, results directional only

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2013 Convention Sales & Marketing Activities Study 25

Meeting & Convention Sales and Marketing Activities: Lead Generating Importance

Acknowledging the importance of face-to-face interactions, industry trade shows/conventions/conferences and sales missions/sales calls remain the most valued generators of M&C leads for destinations. The value of third-party partnerships continues to grow among DMOs (with 20% citing them as a top lead originator; more so for gateway and mid-size DMOs). Site inspections are rated third most important among convention centers and less so among DMOs (except for mid-size DMOs who rate them higher).

Regional destinations, with fewer staff resources available, are slightly more willing to assign lead-generating value to marketing activities, including the website (especially by regional conventions centers) and trade advertising. Event sponsorships also generate favorable regard.

top lead generators (weighted % of respondents)*

Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Industry trade shows, conventions, conferences 48 50 56 43 49 50 59 32

Sales missions/Sales calls 44 56 35 43 34 44 37 20

Third party partnerships 20 28 28 13 6 -- 9 7

Site inspections/visits (organization-specific) 13 9 23 10 27 29 29 20

Website (M&C-specific) 7 -- -- 11 11 -- -- 38

Trade advertising ** ** -- 7 6 7 -- 13

Event sponsorships ** -- -- 5 ** -- -- 13

Fam trips ** 6 ** ** 9 -- 17 6

Email marketing ** -- ** ** ** 7 -- --

Communications/Public Relations ** -- -- ** -- -- -- --

Consumer advertising (e.g., in-flight magazines) ** -- ** -- -- -- -- --

Direct mail ** -- -- ** -- -- -- --

Collateral material [M&C-specific] (planner guides, venue guides, etc.)

** -- -- ** -- -- -- --

Social media ** -- -- ** -- -- -- --

Destination video [M&C-specific] -- -- -- -- -- -- -- --

Research -- -- -- -- -- -- -- --

Other+ ** -- -- ** ** 7 -- --

* weighted % of respondents who selected each activity as either their #1 or #2 top lead generator ** selected by fewer than 5% of respondents

+ DMO: networking (two mentions); MINT (one mention) Convention center: word of mouth (two mentions); repeat groups (one mention)

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2013 Convention Sales & Marketing Activities Study 26

Meeting & Convention Sales and Marketing Activities: Increased Emphasis/Shift in Focus

Lead-generating value, as well as changes in the marketplace, continues to drive how respondents are increasing their emphasis and/or changing the focus of their sales and marketing activities. One half of DMOs are focusing more on high lead producing activities such as sales missions/sales calls and industry events as many respondents continue to rebuild after recessionary funding cuts. Social media and third party partnerships are also gaining ground, cited by almost half of DMOs and more than one-third of convention centers. Staffing, the largest expense, also saw some form of shift in focus or increase in emphasis for 41% of DMOs and 37% of centers, with gateway DMOs leading at 64%.

Site inspections saw increased emphasis among gateway and mid-size markets. Regional markets, however, are keeping pace with their larger peers with less staff-intensive activities including email marketing, the website and event sponsorship.

% respondents Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Sales missions/Sales calls 51 76 47 44 63 71 58 63

Industry trade shows, conventions, conferences 49 47 40 54 48 43 50 50

Social media 47 59 27 56 37 57 17 50

Third party partnerships 46 65 57 34 30 57 33 --

M&C staff (sales, services, dedicated mktg. staff, dedicated research staff, etc.)

41 64 37 36 37 43 50 13

Site inspections/visits (organization-specific) 29 47 40 16 37 57 42 13

Email marketing 28 29 20 32 33 57 17 38

Website (M&C-specific) 27 29 20 30 33 14 42 38

Event sponsorships 27 29 23 28 30 14 42 25

Fam trips 23 29 30 16 26 14 42 13

Trade advertising 21 24 23 18 26 9 33 13

Destination video [M&C-specific] 20 29 23 14 11 -- 25 --

Communications/Public Relations 19 29 17 16 7 -- 8 13

Research 17 24 13 16 19 14 33 --

Consumer advertising (e.g., in-flight magazines) 11 18 7 12 11 -- 8 25

Collateral material [M&C-specific] 9 12 3 12 15 -- 25 13

Direct mail 7 -- 10 8 11 -- 17 13

Outside sales representatives (nonemployees) 4 -- 3 6 -- -- -- --

Other* 3 6 -- 4 7 14 -- 13

* technology upgrade (two mentions), new customer service program, local education/networking activities (one mention each)

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2013 Convention Sales & Marketing Activities Study 27

Online and Digital Marketing Activities: Participation and Lead-Generating Importance

Destinations have a significant presence in the online and digital marketing arena. Banner ads and social media are the two most common, used by more than two-thirds of DMOs and convention centers. Larger destinations, in general, have a higher usage rate for most activities as a result of larger staff and funding resources. Specifically, email blasts figure for a majority of gateway and mid-size DMOs as well as gateway convention centers. Dedicated M&C websites also rank high except for regional DMOs.

Currently, there appears to be no clear consensus as to top lead generators. A dedicated M&C website is the only exception, rated as most valuable by almost one-half of convention centers (and higher among regional ones). Regional destinations seem to be more willing to assign greater value to online activities than their larger counterparts in the areas of search marketing/key words and social media postings.

% of respondents Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Banner ads on other websites 74 84 75 69 69 75 54 88

Social media postings 73 79 71 71 76 88 62 88

Email blasts 70 90 71 61 57 88 46 50

E-newsletters 65 84 64 57 57 75 62 38

Search marketing, key words 57 53 54 61 55 50 46 75

Dedicated M&C website 40 79 54 16 57 75 46 63

B2B networking; sharing contacts 39 42 29 43 34 25 39 38

Webcasts/Webinars 18 32 21 10 10 13 15 --

Other* 5 5 11 2 7 -- 8 13

* DMO: geotargeting (two mentions); twisitor center, networking (one mention each). Convention center: geotargeting (one mention)

top lead generators (weighted % of respondents)*

Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Email blasts 28 48 26 23 12 25 5 13

Dedicated M&C website 24 41 34 13 48 42 46 63

B2B networking; sharing contacts 23 22 14 29 20 17 36 --

Search marketing, key words 21 ** 16 30 16 17 5 32

Banner ads on other websites 15 6 24 12 20 42 18 7

Social media postings 14 16 ** 18 18 9 9 38

E-newsletters 13 5 12 13 -- -- 23 --

Webcasts/Webinars ** -- ** ** -- -- -- --

Other+ 5 ** ** ** -- 5 -- **

* weighted % of respondents who selected each activity as either their #1 or #2 top lead generator ** selected by fewer than 5% of respondents

+ DMO: none are big lead producers (five mentions), unknown at this time/still evaluating (two mentions). Convention center: unknown (one mention)

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2013 Convention Sales & Marketing Activities Study 28

Performance Reporting for Sales Personnel

The vast majority of respondents use performance goal categories for their sales personnel – 99% for DMOs and 90% for convention centers.

Booked room nights and the number of leads remain the number one and two performance categories for DMO sales staff (though lead counts are more important for regional DMOs compared to larger DMOs). Room nights from leads are more commonly used by mid-size and regional DMOs. Regional DMOs tend to use more performance goal categories for their sales staff – 3.3 – compared to gateway DMOs (2.4) and mid-size DMOs (2.9).

Convention centers are more focused on booked rooms nights (52%) and the number of bookings (31%; climbing to 43% for gateway centers). As a physical product that is sold, centers also utilize revenue and revenue-related categories, such as rental fees, F&B, utilization and occupancy.

Slightly more than one third of DMOs (35%) and convention centers (39%) back out lost business and/or cancellations from their convention sales personnel’s goal achievement. This usually happens if the cancellation/loss occurs in the same year as the booking. This practice is most common among gateway markets and less so among regional ones.

% of respondents Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Number of booked room nights 77 78 83 73 52 43 54 56

Number of leads 64 50 52 75 17 14 8 33

Number of room nights from leads 49 28 62 48 21 14 15 33

Number of bookings 48 44 35 56 31 43 31 22

Direct attendee spending 17 6 10 25 10 -- 23 --

Number of attendees from leads 16 6 14 21 3 -- -- 11

Number of booked attendees 15 17 14 15 7 -- 8 11

Other* 14 11 17 14 45 57 31 56

No goals 1 -- -- 2 10 -- 15 11

* DMO: prospecting calls/e-mails, site inspections, sales trips, appointments with existing clients, need times leads by size: citywide vs. self contained vs. attendance for leads (one mention each)

Convention Center: building revenue (four mentions), rental fees (three mentions), activity measurements, e.g., sales calls, client visits, trade shows attended, prospecting calls (two mentions), center occupancy, events produced, client engagement, F&B minimum spend, vendor partner commissions (one mention each)

Back-out lost business/cancellations from conv. sales personnel’s goal achievement*

35 44 41 28 39 57 39 25

* Additional comments: Netted out if cancelled/lost in same year as booked (11 mentions), 25% reduction if lost/cancelled in different year than booked (one mention)

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2013 Convention Sales & Marketing Activities Study 29

Onsite Convention Services Offered to Events

A wide variety of onsite convention services are offered to booked events by DMOs and convention centers, though more likely on a select basis than universally. Welcome desks/Hospitality are the most common, offered by 94% of DMOs and 80% of convention centers followed closely by meet & greet services (90% DMOs; 80% centers).

To a great extent, regional markets are keeping pace with their larger brethren in offered onsite services as they embrace the concept of service is the new sales. Gateway convention centers are somewhat more willing to offer services unilaterally than their DMO partners while the opposite is true for many regional markets, due perhaps to the cost prohibitive nature of offering many of these services to all events serviced by gateway DMOs.

Online and social media have become part of the convention services landscape, with 78% of DMOs and 63% of conventions centers offering social media messages to attendees during the event at some level (more so for gateway markets than others) and, to a lesser extent, a mobile app or microsite for delegates (59% for DMOs; 46% for centers).

% of respondents who offer to all events/to select events

Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Welcome desk/Hospitality 32/62 22/78 31/62 36/54 43/37 50/38 38/38 44/33

Meet & greet services 31/59 6/83 31/62 40/50 23/57 13/63 38/46 11/67

Registration support 29/55 18/65 28/66 33/44 18/30 25/13 23/31 --/44

Social media messages to attendees during event 29/49 44/50 17/52 32/48 30/33 50/38 31/31 11/33

Local signage/banners (airport, downtown, etc.) 11/79 6/83 14/86 11/72 7/60 --/75 8/54 11/56

Mobile app/Microsite for delegates 18/41 27/53 20/52 13/31 23/23 38/25 23/15 11/33

Other* 4/2 6/-- --/3 6/2 3/-- 12/-- -- --

* DMO: certain services are free, others are available for a fee; welcome letters, discount entertainment card (two mentions); custom hotel maps, client mtgs with various gov’t. agencies, VIP programs, online registration, welcome reception, trolley for delegate transport (one mention each)

Convention center: DMO supplies the majority of these services (two mentions)

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2013 Convention Sales & Marketing Activities Study 30

Attendance Marketing Support Offered

The vast majority of DMOs and gateway/mid-size convention centers offer attendance marketing support to their incoming events. DMOs slightly exceed their convention center partners in the average amount spent -- $69,000 vs. $64,900 with gateway markets leading, due, in part, to funding availability. Respondents currently report spending a total of $4,569,000 on attendance marketing support.

Anticipated future funding for attendance marketing support is excellent with one third of DMOs and one-fourth of convention centers anticipating an increase. Only three percent of DMOs and no centers foresee a decrease.

% of respondents Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Offers attendance marketing support 86 85 97 79 70 100 62 44

AVERAGE spent on attendance marketing support – current fiscal year

$69,000 $225,000 $76,000 $28,000 $65,000* $155,000* $70,000* 11,000*

Anticipated change for next year (% of respondents)

Increase 35 36 44 28 24 20 25 25

Decrease 3 7 -- 3 -- -- -- --

Remain the same 63 57 56 69 77 80 75 75

* small sample size, directional only

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2013 Convention Sales & Marketing Activities Study 31

Attendance Marketing Support Offered (cont’d.)

DMOs and convention centers offer a wide array of attendance marketing support activities, though not every activity is necessarily available to every booked event. Almost all DMOs and three of out four convention centers may travel to an event’s prior year location to promote their destination. The vast majority of respondents also act as the event’s local agent in working with government agencies and affiliated groups, assisting in securing speakers, as well as extending the reach of the organizer’s public relations function.

Online support activities, such as adding the event to the DMO and/or center website(s) and posting social media messages to potential attendees, are also common, offered by more than three-fourths of respondents.

% of respondents Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Attendance Marketing Support Offered

Attending prior year's event to promote destination 92 100 100 83 75 75 75 75

Public relations support 89 88 89 90 80 75 88 75

Liaison with city, state or regional affiliated groups, gov't. agencies

88 100 93 80 65 75 38 100

Adding event information to the DMO and/or center website(s)

83 100 82 78 95 88 100 100

Social responsibility project connections 82 88 86 78 60 63 63 50

Social media messages to potential attendees: Twitter, Facebook, blogs, etc.

76 88 68 78 80 100 50 100

Assistance securing event speakers, keynoters 67 75 68 63 45 63 25 50

Cash payments/rebates/mktg support fees 66 50 68 70 40 13 50 75

Small logoed promotional items 66 63 68 65 45 38 38 75

Entertainment, sports, cultural event/facility discounts

64 81 54 65 50 50 50 50

Local/Regional attendance building efforts (e.g., emails, data mining)

61 63 57 63 50 50 38 75

Travel and/or lodging incentives, discounts 44 38 39 50 25 25 13 50

Event ads paid by the DMO or center 30 44 25 28 25 25 25 25

Marketing to international attendees 19 50 21 5 35 63 25 --

Other* 6 6 -- 10 10 13 -- 25

* DMO: virtual postcards, door prizes, welcome bags (one mention each) Convention center: Micro sites, customized online support (one mention each)

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2013 Convention Sales & Marketing Activities Study 32

How DMO Success in the Meetings and Conventions Marketplace is Measured

Hotel metrics remain paramount among destination stakeholders when measuring DMO success in the meetings and conventions marketplace – with total number of booked hotel rooms and destination-level hotel occupancy receiving the top two rankings. Direct spending generated by DMO bookings follows closely, cited by almost two-thirds of respondents.

Although economic impact measures, such as visitor-related taxes generated by the DMO’s bookings, are considered by half of the destinations, total jobs supported has not yet gained popularity, cited by only 25% of DMOs and 27% of centers. It should be noted, however, that gateway markets are more inclined to look at jobs as a success measure (41% of DMOs and 60% of convention centers).

While one would expect convention center operations be a success measure only for those destinations where the DMOs and convention centers are one entity, this expectation does appear to exist in mid-size markets where the two entities are separate, and even more so in the minds of the centers. Perhaps this is a by-product of this market tier’s desire to have a greater presence in the national arena with larger events, often requiring the convention center. Incidentally, this position is also widely held by a large number of convention centers in regional markets.

% of respondents Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

DMO success in the M&C marketplace (what the DMO says they are measured by) (what the center says their DMO is measured by)

Total number of hotel rooms booked by DMO 82 77 93 78 85 80 85 88

Hotel occupancy levels (destination level) 68 71 69 66 69 60 54 100

Direct spending generated by DMO bookings 60 53 62 62 65 60 62 75

Increased # of DMO bookings for new events 54 59 62 48 54 80 46 50

Visitor-related tax revenues generated by DMO bookings

50 59 52 46 50 80 54 25

Total M&C spending in the destination (whether or not booked by DMO)

38 24 48 36 42 40 39 50

Jobs supported by DMO bookings 25 41 28 18 27 60 8 38

Increased M&C market share for destination 22 29 28 16 8 -- 8 13

DMO operational profit/loss 22 18 24 22 27 20 31 25

Convention center operational profit/loss+ 13 7 31 4 44 -- 50 60

Other* 2 -- 3 2 - -- -- --

We do not formally measure 5 6 -- 8 4 -- 8 --

+ DMO respondents exclude those who also run a convention center. Convention Center respondents exclude those who are also a DMO

*DMO: ROI of DMO funding to room revenue, hotel tax collections, total room nights utilized (one mention each)

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2013 Convention Sales & Marketing Activities Study 33

How Convention Center Success in the Meetings and Conventions Marketplace is Measured

While there is some consistency among DMO and convention respondents on how the destination measures the DMO success, this is less so when convention center success is considered, especially in regional markets. Aside from the center’s operational profit/loss, the number of visitors and hotels rooms generated by center events, and event spending are key measurements from the convention center’s point of view, cited by two-thirds or more of center respondents. Of these three top metrics, hotel rooms booked exhibits the smallest gap between the two respondent groups (67% of centers and 52% of DMOs), while total visitors generated the largest (70% of centers and 35% of DMOs).

Similar to DMO measured success, convention centers are seeing economic impact indicators used when their success is considered by the destination, again at lower levels compared to other measures except among gateway markets: 41% cited visitor-related tax revenues generated and 30% jobs supported by center events.

% of respondents Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Convention Center Success in the M&C Marketplace

(what the DMO says the center is measured by) (what the center says they are measured by)

Center operational profit/loss 39 40 60 26 83 75 89 80

Total event spending at the center (i.e., attendees, exhibitors, organizers)

42 53 60 26 70 71 75 63

Ttl # of visitors generated by events at the convention center

35 40 44 31 70 86 58 75

Ttl # of hotel rooms booked by events at the convention center

52 67 80 33 67 71 58 75

Visitor-related tax revenues generated by events at the convention center

28 33 36 23 41 57 33 38

Public Relations – press coverage 20 -- 28 23 30 43 25 25

Jobs supported by events at the convention center

12 20 20 5 30 71 8 25

Hotel occup. levels generated by events at the convention center

29 33 40 21 26 43 8 38

DMO operational profit/loss 9 13 8 5 11 14 17 --

Other* 10 7 4 13 -- -- -- --

We do not formally measure 26 20 8 39 4 -- -- 13

* space utilization, rotation frequency

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2013 Convention Sales & Marketing Activities Study 34

Working with Local Economic Development

Working with the destination’s local economic development entity is fairly typical, practiced by three-fourths of DMOs and two-thirds of convention centers. Partnership activities are varied and extensive with aligning and pursuing market segments in conjunction with the destination’s economic goals the most common, practiced by 72% of DMOs and 78% of convention centers.

Gateway markets are most likely to conduct joint sales missions (50% DMOs; 40% convention centers) and arrange meetings between economic development partners and visiting tradeshow exhibitors (50% DMOs; 80% convention centers). Regional convention centers appear to be leading their DMO partners in joining forces with their economic development entities in most activities, perhaps due in part to DMO staff and funding resource limitations.

% of respondents Total DMOs

DMO Gateway

DMO Mid-size

DMO Regional

Total Conv. Ctrs.

Conv Ctr. Gateway

Conv. Ctr. Mid-size

Conv. Ctr. Regional

Works with local government’s economic development entity

74 78 72 75 63 63 65 54

Pursue market segments that align with destination's economic development goals

72 72 79 69 78 60 92 80

Conduct joint sales missions domestically

33 50 25 31 39 40 33 60

Arrange for economic development partners to meet with tradeshow exhibitors while in-market

31 50 43 17 48 80 33 40

Share international representation costs

11 7 2 5 9 20 8 --

Conduct joint sales missions internationally

10 33 7 2 26 40 25 20

Other* 35 22 25 46 17 20 8 20

* DMOs: Internal meetings (seven mentions), increased future activities, marketing, sales and communications exchange and support (three mentions), provide collateral, share research data (two mentions), invite to each other’s events (one mention)

Convention centers: Internal sales meetings/marketing meetings (four mentions), joint marketing committee (one mention)

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2013 Convention Sales & Marketing Activities Study 35

How DMOs Will Differentiate Themselves in 2014

2014 will see increased collaboration with industry partners and third party planners as DMOs strive to differentiate themselves in a marketplace where disintermediation is being fed by market forces and technological advances. Gateway DMOs

An increased emphasis on third party planner partnerships through incentives and attending their tradeshows and events (five mentions)

Strengthening unique position as the destination experts offering comprehensive attendance promotion and services packages

Enhanced education for planners and local industry with extra outreach beyond hotels, e.g., attractions, venues Mid-size DMOs

Increased engagement with hotel partners and expanded local partnerships (eight mentions). Specific initiatives include more resource allocation, stronger communications and education efforts

Expanded involvement with third party planners (five mentions)

Internal enhancements (six mentions) including increased investment in technology/website, modernizing marketing efforts, new opportunity-identifying research and implementing DMAI’s Economic Impact Calculator

Regional DMOs

More local collaboration especially for client contact/relationship building (ten mentions)

Building third party planner relationships (six mentions)

Increased emphasis on technology/social media (four mentions)

Increased local education on what a DMO provides in the M&C marketplace (three mentions)

Expanded promotion of DMO services (three mentions)

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2013 Convention Sales & Marketing Activities Study 36

Incentive Funds: Budget and Sources

Note: For this section on incentive funds, data tables have been adjusted to reflect destination-level results.

Slightly more than one half of destinations have available a fund for discounts and incentives to attract conventions, tradeshows and other qualified groups that utilize local hotels. The median amount is $100,000 with gateway markets soaring to $2,000,000 and regional markets dropping to $50,000. Respondents are very optimistic about the future outlook for incentive funds, with almost one-third (31%) anticipating an increase and only 5% foreseeing a decrease.

Incentive fund sources vary with the DMO budget the most common (52% overall) and the number one source for gateway and regional markets. Segregated hotel tax revenues are most common for mid-size markets, at 46%.

% of respondents Total Gateway Mid-size Regional

Destination has an incentive fund 53 63 53 48

Median size – current fiscal year $100,000 $2,000,000 $213,000 $50,000

Average (mean) size – current fiscal year $831,000 $3,279,000 $510,000 $95,000

Total incentive fund – current fiscal year $44,853,000 $32,789,000 $9,686,000 $2,378,000

(% of respondents)

Anticipated change in incentive fund next year

Increase 31 33 35 25

Decrease 5 -- 4 8

Remain the same 65 67 61 67

Source of incentive fund

DMO budget 52 50 38 67

Hotel tax segregated for incentives 27 17 46 17

Municipal (or other) government general fund and/or tax revenues

16 42 8 13

Convention center operating income or reserves 13 8 25 --

Special fund allocated by the hotel community 11 8 17 8

Other* 13 -- 21 13

* Other municipality fund, special fund from conv. ctr./arena authority, lodging association bid fund that DMO can request monies based on past room nights and economic impact, grants from gaming commission, one-time hotel tax fund, state matching fund, DMO TID fund and city gov’t split cost (one mention each)

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2013 Convention Sales & Marketing Activities Study 37

Incentive Funds: Allocation Criteria and ROI

For almost two out of three destinations, DMOs determine the allocation of the incentive fund; this rises to more than 83% for regional destinations. Mid-size destinations are more likely than their gateway and regional counterparts to have a consortium/independent committee fulfilling this role, at 38% compared to 15% and 9%, respectively.

Allocation criteria are varied with the most common requiring some level of economic contribution to the destination (economic impact, hotel rooms nights) and/or long-term commitment to the destination or filling a need period (all at 50% or greater).

Of those destinations with an incentive fund, slightly more than half of destinations (56%) examine the Return on Investment* (ROI) of these funds, which amounted to $104 to $1.

*ROI: (total estimated direct spending of events) divided by (incentive fund money allocated to those events)

% of respondents Total Gateway Mid-size Regional

Who Determines Allocation of Fund

DMO/CVB 62 62 42 83

Consortium/Independent committee 22 15 38 9

Convention center 2 -- 4 --

Other* 15 23 17 9

* gov’t. (two mentions); final signoff by conv. center authority Chair/CEO & conv. center CEO, DMO/select board members, combination of DMO/ conv. ctr./ BofD delegates, citywides, DMO/commissioners, DOS who oversees DMO & ctr. sales staff, Exec. Dir. application process (one each)

Allocation Criteria

Select events with a certain combination of past economic impact and total hotel room nights

62 77 71 46

When the event meets/Seasonality of the event 52 54 63 42

Events that sign long-term agreement to anchor to destination/add destination to a set rotation pattern

50 77 46 29

All events with a certain level of past total htl rm nights 46 58 34 50

All events with a certain level of past economic impact 29 31 29 29

All events with a certain level of past attendance 21 31` 25 13

Only events that ask for discounts and/or incentives 8 -- 4 13

Other* 19 15 21 21

* new business (two mentions), if event can be located outside of state, serves greater good, conv. ctr. space, tax ROI, minimum room nights, off season, to secure event, citywide (one mention each)

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Appendix: Questionnaire

Thank you for taking the time to complete DMAI’s Convention Sales & Marketing Practices Study questionnaire! The study will provide valuable insight into how DMOs and convention/conference centers plan, allocate and execute their meetings and conventions sales & marketing programs. If you need to leave this questionnaire before completing it: You can return at any time by completing the page you are on by clicking 'next' and then closing that browser window. You can return by clicking on the link that was emailed to you. You MUST complete the page you are on for that page's responses to be saved. 1. Contact Information 2. Which of the following best describes your destination?

( ) Gateway Market (500,000+ sq. ft. of convention center exhibit space) ( ) Mid-size Market (100,000 to 499,999 sq. ft of convention center exhibit space) ( ) Regional Market (less than 100,000 sq. ft. of convention center exhibit space)

3. Is your organization a: ( ) Convention/Conference Center/Venue ( ) Destination Marketing Organization (DMO)/CVB

( ) DMO/Convention Center combined ( ) Other: ______________________

4. [DMO respondents only] Does your organization (check all that apply):

( ) Have primary sales responsibility for your Center's conventions ( ) Pursue single property meetings & conventions ( ) Pursue multi-property meeting & conventions (no conv. center) ( ) We do not have a meetings & conventions sales function ( ) Other: ______________________________________________________________

5. [DMO respondents only] What is the window of dates your DMO controls at your convention center? ( ) Anytime ( ) 12 months +

( ) 13 months + ( ) 18 months +

( ) 24 months + ( ) Other : _________

6. What are the top two priorities for your organization's meetings & conventions (M&C) sales & marketing function

for the next few years? 7. What are the top two challenges your organization's M&C function faces in the next few years? 8. Does your organization's M&C function work with your local government's economic development entity? ( ) Yes ( ) No 9. If yes, how do you work together? (Check all that apply.)

( ) Conduct joint sales missions domestically ( ) Conduct joint sales missions internationally ( ) Pursue market segments that align with the destination's economic development goals ( ) Arrange for economic development partners to meet with tradeshow exhibitors while in-market ( ) Share international representation costs ( ) Other: ______________________________________________________________

10. Which statement do you believe to be most true? ( ) Your customer finds you ( ) You find your customer

11. Which statement do you believe to be most true? ( ) Sales is sales ( ) Marketing is the new sales ( ) Service is the new sales

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M&C sales & marketing activities and personnel

M&C services & housing activities and personnel

12. What is your organization's current budget for: ________________ ________________

13. By what percentage did this budget change over last year for:

________________ ________________

14. How do you expect this budget to change next year? Please explain any expected increase or decrease of 5% or more:

( ) increase 5% or more ( ) increase less than 5% ( ) remain the same ( ) decrease less than 5% ( ) decrease 5% or more

( ) increase 5% or more ( ) increase less than 5% ( ) remain the same ( ) decrease less than 5% ( ) decrease 5% or more

15. How many employees in your organization are:

( ) Full-time M&C salespeople (incl. satellite offices) ( ) Part-time M&C salespeople ( ) Full-time M&C services staff

( ) Full-time dedicated M&C marketing/PR staff ( ) Full-time dedicated M&C research staff

16. How many contract M&C personnel does your organization have? _________ For Questions 17, 18 & 19:

( ) M&C staff (sales, services, dedicated marketing staff, dedicated research staff, etc.) ( ) Outside sales representatives (nonemployees) ( ) Trade advertising ( ) Consumer advertising (e.g., in-flight magazines) ( ) Collateral material [M&C-specific] (planner guides, venue guides, etc.) ( ) Destination video [M&C-specific] ( ) Direct mail ( ) Email marketing ( ) Social media ( ) Website (M&C-specific) ( ) Event sponsorships ( ) Fam trips ( ) Industry trade shows, conventions, conferences ( ) Sales missions/Sales calls ( ) Site inspections/visits (organization-specific) ( ) Third party partnerships ( ) Communications/Public Relations ( ) Research ( ) Other

17. Please estimate how much your organization is spending on the following meetings and conventions sales,

marketing and related activities this current fiscal year: 18. Please chose the top two sales/marketing activities or channels that currently produce the highest quality M&C

leads for your destination: 19. Which of the following sales & marketing activities and channels saw an increased emphasis/shift in focus this year

over last year? (Please check all that apply.)

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For Questions 20 & 21:

( ) Banner ads on other websites ( ) B2B networking; sharing contacts ( ) Dedicated M&C website ( ) Email blasts ( ) E-newsletters

( ) Search marketing, key words ( ) Social media postings (Facebook, Twitter, Pinterest,

blogs, etc.) ( ) Webcasts/Webinars ( ) Other: ________________________________

20. Which of the following online and digital marketing activities are you doing to reach planners? (Please check all

that apply.) 21. Please chose the top two online and digital marketing activities that currently produce the highest quality M&C

leads to your destination: 22. Which statement best explains the relationship between your organization's convention sales and convention

marketing functions? ( ) The convention marketing function is within the sales department ( ) The convention sales function is within the marketing department ( ) The convention sales and the convention marketing functions are in different departments, but work on an

equal basis

23. What performance goal categories do you use for your convention sales personnel? (Please check all that apply.) ( ) Number of leads ( ) Number of room nights from leads ( ) Number of attendees from leads ( ) Number of bookings ( ) Number of booked room nights

( ) Number of booked attendees ( ) Direct attendee spending ( ) Other: _______________________________ ( ) No goals

Explain if there are additional conditions/circumstances associated with your organization's goal categories:

24. Do you net out/back out lost business/cancellations from the convention sales personnel's goal achievement? ( ) Yes. Please explain: _____________________________ ( ) No

25. Does your organization provide planners with attendance marketing support? ( ) Yes ( ) No 26. What type of attendance marketing support do you offer? (Please check all that apply.)

( ) Adding event information to the DMO and/or center website(s) ( ) Assistance securing event speakers, keynoters ( ) Attending prior year's event to promote destination ( ) Cash payments/rebates/marketing support fees ( ) Connections for social responsibility projects ( ) Local/Regional attendance building efforts (e.g., emails, data mining) ( ) Entertainment, sports, cultural event/facility discounts ( ) Event advertisements paid by the DMO or center ( ) Liaison with city, state or regional affiliated groups, gov't. agencies ( ) Marketing to international attendees ( ) Small logoed promotional items ( ) Public relations support ( ) Social media messages to potential attendees (Twitter, Facebook, blogs, etc.) ( ) Travel and/or lodging incentives, discounts ( ) Other: ______________________________________________________________

27. What will your organization spend on attendance marketing support this year? __________

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28. Next year, do you expect this amount to: ( ) Increase ( ) Remain the same ( ) Decrease 29. What onsite convention services does your organization offer?

(Please check all that apply.) Offered to

All Events Offered to

Select Events Not

Offered

Registration support ( ) ( ) ( ) Meet & greet services ( ) ( ) ( ) Welcome desk/Hospitality ( ) ( ) ( ) Local signage/banners (airport, downtown, etc.) ( ) ( ) ( ) Mobile app/Microsite for delegates ( ) ( ) ( ) Social media messages to attendees during event (Twitter, Facebook, etc.)

( ) ( ) ( )

Other: __________________________________________ ( ) ( ) ( )

30. For your destination, what performance metrics are used to measure DMO success in the M&C marketplace? (Please check all that apply.)

( ) Total M&C spending in the destination (whether or not booked by the DMO) ( ) Hotel occupancy levels (destination level) ( ) Total number of hotel rooms booked by the DMO ( ) Direct spending generated by DMO bookings ( ) Visitor-related tax revenues generated by DMO bookings ( ) Jobs supported by DMO bookings ( ) Increased number of bookings for DMO new events ( ) Increased M&C market share for the destination ( ) DMO operational profit/loss ( ) Convention center operational profit/loss ( ) Other: ______________________________________________________________ ( ) We do not formally measure

31. For your destination, what performance metrics are used to measure the convention/conference center success in the M&C marketplace? (Please check all that apply.)

( ) Center operational profit/loss

( ) Total event spending at the center (i.e., attendees, exhibitors, organizers) ( ) Total number of visitors generated by events at the convention center ( ) Total number of hotel rooms booked by events at the convention center ( ) Visitor-related tax revenues generated by events at the convention center ( ) Public relations – press coverage

( ) Jobs supported by events at the convention center ( ) Hotel occupancy levels generated by events at the convention center ( ) DMO operational profit/loss

( ) Other: ________________________________________________________

( ) We do not formally measure

32. What is your organization doing differently/plan to do differently in 2014 to differentiate the DMO role with hotels

and third party partners? 33. Is there a separate fund to cover discounts and incentives for qualified conventions, tradeshows, or other group

meetings that utilize local hotels? ( ) Yes ( ) No

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Incentive Funds: Please answer the questions below on your destination's incentive fund. Remember, your responses are strictly confidential and will ONLY be reported in aggregate. 34. What is the current size of the incentive fund? __________ 35. Who determines how the incentive fund is allocated?

( ) Convention center ( ) DMO/CVB

( ) Consortium/Independent committee ( ) Other: _____________________

36. What criteria are used to allocate these funds? (Please check all that apply.)

( ) All events with a certain level of past economic impact ( ) All events with a certain level of past total hotel room nights ( ) All events with a certain level of past attendance ( ) Select events with a certain combination of past economic impact and total hotel room nights ( ) Events that sign long-term agreements to anchor to the destination or add the destination to a set rotation

pattern ( ) When the event meets/Seasonality of the event ( ) Only events that ask for discounts and/or incentives ( ) Other: ______________________________________________________________

37. What is the source of these funds? (Please check all that apply.) ( ) Convention center operating income or reserves ( ) DMO budget ( ) Hotel tax segregated for incentives ( ) Municipal (or other) government general fund and/or tax revenues ( ) Special fund allocated by the hotel community ( ) Other: ______________________________________________________________

38. Last year, how much money was allocated from the incentive fund (estimate if necessary) and what is the estimated direct spending of those events that received the monies?

( ) $ allocated from fund: __________ ( ) Est. direct spending of events receiving $: __________

39. What will likely happen to the incentive fund next year? ( ) Increase ( ) Decrease ( ) Remain the same 40. Additional comments/What additional topics you would like to see covered in future studies:

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2013 Convention Sales & Marketing Activities Study 43

ABOUT DESTINATION MARKETING ASSOCIATION INTERNATIONAL As the global trade association for official destination marketing organizations (DMOs), Destination Marketing Association International (DMAI) protects and advances the success of destination marketing worldwide.

DMAI’s influential membership includes nearly 600 official DMOs with more than 4,000 staff members in 16 countries that command more than $2 billion in annual budgets. Membership is open to all official DMOs recognized by their respective governments from the smallest town to the largest country, including convention and visitor bureaus, regional tourism boards, state and provincial tourism offices, as well as national tourism boards. DMAI connects nearly 150 private sector businesses and partners with DMOs.

DMAI provides members with innovative professional development, events, certification programs, research, resources and networking opportunities to successfully market their destinations and manage their organizations.

ABOUT THE DESTINATION & TRAVEL FOUNDATION

The Destination & Travel Foundation is a complementary organization to DMAI. Tackling the most pressing issues of the day and the vexing problems ahead, the Destination & Travel Foundation engages industry leaders and experts in various fields to determine innovative and creative strategies. The ultimate goal is to prepare the industry to deal with the rapidly changing business environment. The mission of the Foundation is to enhance the destination marketing and travel professions through research, education, visioning and development of resources and partnerships for those efforts.

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Destination Marketing Association International

Destination & Travel Foundation

2025 M Street, NW, Suite 500

Washington, DC 20036 USA

www.destinationmarketing.org

1.202.296.7888