CDME SURVEY RESULTS June 2013. ANNUAL BUDGET TBID TERM LENGTHS.
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Transcript of CDME SURVEY RESULTS June 2013. ANNUAL BUDGET TBID TERM LENGTHS.
CDME SURVEY RESULTSJune 2013
ANNUAL BUDGET
City A City H City G City F City B City E City D City C $-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
$120,000 $1,386,000 $1,500,000
$2,213,000
$3,809,384 $5,000,000
$7,400,000
$18,000,000
TBID TERM LENGTHS
1 DMO:• Annual extension
with no term limit
3 DMOs:• 5 years
2 DMO:• 10 years
1 DMO:• Indefinite
1 DMO:• In place until disestablished by
ordinance provisions
TOTAL HOTELS IN TBID
City E
City F City G
City B
City H
City D
City C
0
10
20
30
40
50
60
70
80
90
100
6
31
45 47 47
8290
TOTAL ROOMS IN TBID
City E
City F
City H
City G
City A
City B
City D
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
3,000 3,4524,077 4,139 4,500
5,896
12,000
TOTAL HOTELS & ROOMS IN TBID
City A
City H
City G
City B
City D
City E
City C
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$20
0,00
0
$25
5,00
0
$80
0,00
0
$91
4,12
2
$1,
900,
000
$3,
300,
000
$3,
500,
000
Room tax revenue DMO re-ceived in the last year of the pre-
TBID
City A
City H
City G
City B
City F
City D
City E
City C
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$31
0,00
0
$32
7,00
0
$80
0,00
0
$91
8,94
0
$1,
250,
000
$2,
100,
000 $
3,30
0,00
0
$3,
500,
000
Room tax revenue DMO re-ceived for most recent full fiscal
year
ROOM TAX REVENUE
Assessment of DMO Relationship with Municipalities/Government Entities Post-TBID
Relationship is some-what better than prior to
TBID; 29%
Relationship is about the same; 14%
Relationship is much better than prior to
TBID; 57%
Assessment of Municipalities/Government Entities’ Satisfaction with TBID
Very satisfied; 86%
Neutral; 14%
FUNDING SOURCES: MUNICIPALITIES/GOVERNMENT ENTITIES
Assessment of DMO Relationship with Hoteliers Post-TBID
Relationship is some-what better than prior to
TBID; 29%
Relationship is about the same; 57%
Relationship is somewhat worse than prior to TBID; 14%
Assessment of Hoteliers’ Satisfaction with TBID
Very satisfied; 86%
Somewhat satisfied; 14%
FUNDING SOURCES: HOTELIERS
How satisfied do you believe the assessed parties are with the INVESTMENT OF TBID FUNDS?
Of the six DMOs that responded, five believed the assessed parties were very satisfied. One
DMO thought the assessed parties were somewhat satisfied. Reasons listed include:
City B: Regular feedback during
TPA Commission meetings
City D: Booked room nights
City E: TBID hotels want to
increase assessment level
from 2% to 3% this year
City F: BID board input
City G: Room night sales
City H: Regularly communicate
Results
How satisfied do you believe the assessed parties are with the OVERSIGHT OF TBID FUNDS?
Of the five DMOs that responded, all five believed the assessed parties were very
satisfied with TBID oversight/governance. Reasons listed include:
City B: The hotels and Hotel/ Motel
Association appoints members
to the TPA Commission
City D: Execution of jointly identified goals & objectives
City E: Due to hotels wanting to
increase assessment percentage
City F: BID board input
City G: Room night sales
SATISFACTION OF TBID INVESTMENT & OVERSIGHT
Fron
tlin
e tr
aini
ng
Cus
tom
er A
dvis
ory
Boa
rds
Wel
com
e C
ente
r/V
isit
or C
ente
r
Des
tina
tion
med
ia p
lace
men
t
Eve
nt m
arke
ting
(spe
cifi
c ev
ents
)
Eve
nt s
pons
orsh
ip
Staf
fing
(peo
ple
and
over
head
)
Des
tina
tion
mar
keti
ng d
evel
opm
ent
Web
sit
e de
velo
pmen
t/en
hanc
emen
ts
Soci
al m
edia
eng
agem
ent
Tra
de s
how
par
tici
pati
on 0
1
2
3
4
5
6
7
2 2 2
4 4 4 4
5 5 5
6
# of
DM
Os
OTHER EXPENDITURESThe TPA was established to increase group sales through conventions and sports. Expansion of marketing as long as it supports sales was allowed.
All TBID revenues go to fund group sales
Sales and marketing
Festivals and Events Grant Program
PROGRAMS FUNDED BY TBID FUNDS
NEW PROGRAMS IMPLEMENTED FROM TBID FUNDSDMO NEW PROGRAMSCity B Expansion of sales efforts, new shows, more staff, and marketing support for
sales were added
City D All of our sales and marketing programs were enhanced significantly
City E We have been able to greatly increase our group sales efforts by adding people and programs. As a result group sales bookings have doubled since the TBID was formed.
City F Sports-Events department
City G Increased advertising and sales programs
RESTRICTIONS ON TBID FUNDSDMO RESTRICTIONSCity B Capital expenses, general overhead, and facilities are not allowed.
City D The funds must generate more room nights at some point.
City E Funds are spent on group sales but that can be changed by the TBID board.
City F Cannot fund salaries
City G Cannot be used for bricks and mortar, only sales and marketing
PRE-TBID2% 3%
3%5%
5%
5%
12%
15%
50%
POST-TBID1% 1%1%1%
3%3%
5%
10%
25%
50%
DEPLOYMENT OF MARKETING DOLLARS:City B
Destination marketing
development
Destination media placement
Trade show participation Event Marketing Event sponsorship Frontline Training
Customer advisory boards
Website development/Enhancements
Social media engagement Staffing Welcome center/
Visitor center Other
PRE-TBID POST-TBID
DEPLOYMENT OF MARKETING DOLLARS:City D
Destination marketing
development
Destination media placement
Trade show participation Event Marketing Event sponsorship Frontline Training
Customer advisory boards
Website development/Enhancements
Social media engagement Staffing Welcome center/
Visitor center Other
1% 1% 2% 2%5%
9%
10%
22%
48%
1% 1%2%2%4%
7%
13%
20%
50%
PRE-TBID POST-TBID
DEPLOYMENT OF MARKETING DOLLARS:City F
Destination marketing
development
Destination media placement
Trade show participation Event Marketing Event sponsorship Frontline Training
Customer advisory boards
Website development/Enhancements
Social media engagement Staffing Welcome center/
Visitor center Other
3%10%
10%
10%
10%
57%
2%10%
10%
28%
50%
PRE-TBID POST-TBID
DEPLOYMENT OF MARKETING DOLLARS:City G
Destination marketing
development
Destination media placement
Trade show participation Event Marketing Event sponsorship Frontline Training
Customer advisory boards
Website development/Enhancements
Social media engagement Staffing Welcome center/
Visitor center Other
5%5%
5%
5%
10%
15%
20%
35%
5%5%
20%
20%25%
25%
PRE AND POST-TBID EFFECTS ON ROOM TAX
Before the TBID launch
• Seven of eight DMOs responded that there was a room tax contract in place.
• Four DMOs had five-year contracts; one had a three-year contract; one had a one-year contract.
After the TBID launch
• All eight DMOs had room tax contracts in place.
• The term length stayed the same for all DMOs.
• The term length of the new room tax contract for one DMO was set for five years.
TBID APPROVAL MECHANISMDMO Approval MechanismCity A State enabling legislation; then City Council Resolution
City B The legislation was passed by state requiring that a petition be created to the local County Commission to pass local ordinance, then to create the TPA Commission appointed by the County Commissioners of hoteliers to determine the allocation of the funds.
City C City council approval based on support by the hotel community
City D Majority vote of hotels that reside in the district
City E Six hotel properties plus a special event venue (that has RVs and cottage rentals) approved the formation of the TBID. In accordance with state law, it was approved by the City after public hearings.
City F State Legislature created non-contiguous district. City established Resolution of Intent. Public hearing - 1st and 2nd readings. Posted 20 days - went into effect.
City G First, we sought buy-in from hotels. Once that was accomplished we did the paper work necessary and took it to City Council for approval.
City H State enabling legislation
TOT RATE FOR THE COMMUNITY
7% (City A) 3.3% (City B) 12.5% to 2% TID fee (City C)
12% (City D) 10% (City E) 1.5% tourism, 1% BBB (City F)
1% (City G)
TBID ASSESSMENT RATE & FORMULAS2% per room night (hotels 50+ rooms); same exclusions as
TLT, e.g. stays over 30 days, govt. (City A)
2% on gross room sales (passed through to the
visitor) (City E)
% of room rate of occupied rooms
(City D)
$2/room sold/per night, only hotels with 40+ rooms
(City G)
$2 for hotels with 60 and more rooms; $1
for those with 59 and less (City C)
$2/per room for all lodging facilities with 40 rooms or
more (City B)
$2 per room per night (City F)
MEASURING TBID SUCCESS
City B
•Confirmed room nights booked, conversions from website based upon market survey and the incremental travel generated, visitor spending and attendees tracked are used as metrics
•Room night generation is the #1 priority
•Annual reports, supported by quarterly reports with hoteliers are shared.
•Shared annually
City C
• Convention Center Contract Goals
• ROI• Economic
Impact• Room Nights
City D
•TBID effectiveness measured by convention sales, tourism room nights and economic impact
•Success determined by growing booked room nights on annual basis
•Everything tracked is shared with hotels
•Shared monthly
City E
•TBID measured by room night bookings, leads, site inspections, client events and hotel engagement
•Success determined by more bookings and site inspections
•TBID hotels provided report on individual sales performance and areas where hotels participated; shares leads, bookings, site inspections and sales calls
•Shared monthly
City F
•Measures are amounts collected through sales, BBB and BID taxes
•Taxes also determine criteria for success
•BID and BBB taxes shared with assessed properties
•Shared monthly
City G
•Effectiveness measured by room nights
•Criteria of success is room night sales
•All measures shared with assessed properties except for individual property numbers
•Shared monthly
TBID GOVERNANCEOf the seven DMOs that responded to the
question, only the TBID Board governs TBID funds for five
DMOs. For one DMO, the TBID
funds are governed by the TBID and
DMO boards, for one DMO the TBID
board is a subset of the DMO board.
City C: Hoteliers who are also DMO Board members make up the
TBID Board
City D: The County Commissioners appoint hoteliers to serve on the TPA Commission. The
TPA commission is comprised of hotels recommended by the
Hotel/Motel Association.
City E: All assessed properties form the
TBID board.
City F: 7 hotel owners or general managers
City G: hotels based on # rooms category + 1 city
council man + 2 CVB Exec Committee members + 1 general business + CVB
Exec Director
City H: 5 – 7 hotel owners or designees with
representation across size of hotels
•“We have two TPA's within City B County and we'd prefer to have one.”
City B -- SCORE: 9
•“We changed the original TBID from a static rate to a % of room rate which is more fair and preferable to all parties.”
City D – SCORE: 10
•“The TBID revolutionized our sales operation and we have been able to generate significant results which is why the TBID hotels want to renew the program early and increase the assessment. To my knowledge, we are the only DMO that segregates their TBID into only group sales, which allows us to define a clear ROI for those assessed properties. If you engage hotels early in the process and demonstrate how the TBID can deliver very specific returns that are beneficial to them, hotels will support this as long as you continue to communicate with them and show how you are progressing. I strongly encourage every DMO to pursue a TBID as long as they follow a process that includes the hotels and that the effort doesn't appear to look like a money grab.”
City E – SCORE: 10
•“A few increased guidelines would have been in place. We would probably have increased the rate by at least a dollar.”
City F – SCORE: 9
•“We changed the original TBID from a static rate to a % of room rate which is more fair and preferable to all parties.”
City G – SCORE: 10
•“It’s relatively new. Still more growth to determine how to best take advantage of this.”
City C – SCORE: 8
•“Each year we conduct a stakeholder report card. Our rating is continually around 80%.”
City H – SCORE: 8
OVERALL RATING OF THE TBID FUNDING MECHANISM