Winning the Hearts of Experience-Hungry Travelers

TRAVEL OREGON 2011-2013 STRATEGIC PLAN

CONTENTS

1. Executive Summary: A Quick and Substantive Look at Travel Oregon’s Strategic 1

2. Priorities 2011-13

3. By the Numbers

Travel Oregon Budget 16

Urban Sources of Business 17

National Outlook for Travel 18

4. Regional Cooperative Marketing Plan (RCMP) 19

5. Appendix – Detailed Plans by Department

Tourism Development 20

Consumer Marketing 39

International 60

1

JANUARY 5TH 2011: FACEBOOK POSTING

WOW! Stopped in Ashland on our way to SFO. Just had the best Pinot Noir EVER! We

are staying the night. We will be back in the office tomorrow afternoon…late. I wanted

to move here but Joel said we could just buy the wine instead.

THE WOW EXPERIENCE

Ten to one you are wondering about that wine label. “Which Pinot was she talking about?” It

turns out, you are not alone.

In January of 2011, for the first time, the number of messages posted on Facebook exceeded

the number of people using Google search—with more than a billion new postings every day.

Just one more indicator, things are changing fast. Not just fads and fashions; but the very fabric

of how people interact and manage their lives. The mass-market- consumer world is yielding to

a world where people value connections and experiences more than acquiring the next new

thing. The rise of the “real time” web and increasingly

sophisticated mobile devices is providing the means for

people to connect with one another in unprecedented ways.

Social and political milestones are also reshaping our value

landscape. The events of 9/11 combined with seismic

changes in our economy have shifted the values and

expectations of Americans in every social demographic.

People are thinking differently about the world and what it

means to be happy and successful. This is especially true for

an established group dubbed the “Creative Class” by

Carnegie Mellon Professor Richard Florida1. Essentially, if

your job includes developing ideas, then you are part of the

Creative Class. It has been estimated that the Creative Class

makes up more than 30% of America’s work force, and

among their highest values are travel and the experiences

associated with exploring new places.

1 This study appeared in the Journal of Personality and Social Psychology

http://www.themedguru.com/20100412/newsfeature/experiences-make-us-happier-material-things-study-86133972.html

In one study of more than 12,000

Americans, researchers from Cornell

University and University of Colorado

found that people reported greater

happiness from investing in life

experiences rather than purchasing

material goods. The study suggests

that the reason for this is that

experiences are easier to interpret

positively, contribute more to social

relationships and are a more

meaningful part of personal identity.

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These people are looking for more than the “thin value” offered by 20th century top-down

institutions. The recent cascade of Twitter-fueled revolutions in Africa and the Middle East

support Umair Haque’s assertions in his latest book that people value renewable, democratic,

equitable, peaceful and interactive/meaningful life choices. These changes

are creating a profound need to shift life’s perspective from “the

bleachers” to “the court.” People are no longer content to just watch the

game—they expect to be in the game. Consumers are increasingly hungry

for authentic adventure and exploration. The pre-packaged facades of

luxury travel are giving way to a carpe diem embrace of adventure,

exploration, and excitement. People want their travel experiences to be

unique and highly personalized. For many there is nothing better than

being the one who “discovers” a new bed and breakfast, a secret ocean

view trail, or a small winery tucked away in a lush valley.

These days the news of a “WOW-worthy” amazing (take your pick; food-wine-hotel-trail-beach-

etc.) find is immediately shared and multiplied as photos, blog posts, video clips, tweets,

reviews, and GPS coordinates are posted in real time. And these instant reviews make a big

difference. According to Nielsen: 87% of travelers said reviews impacted hotel choice, 84% said

reviews impacted method of travel, and 78% said

reviews impacted choice of dining. To top that off,

there’s new research from MIT proving that a

consumer review is over 12 times as powerful as

any ad. In addition, Phocuswright research tells us

that a prior visit along with a recommendation

from friends and family is the primary motivation

to travel to a destination2.

For people in the travel and tourism industry the

message is clear; the consumer must be at the center of everything we do and we must not

underestimate the power of individuals to wield incredible influence at every step in their travel

experience. Expectations are high and so are the stakes. For the modern consumer, travel is a

big deal. In the perfect world, authentic and adventurous travel creates new connections and

new friends, it refreshes existing relationships, and it sets the groundwork for personal

2 Destination Marketing: Understanding the Primary Role and Impact of Destination Marketers. PhoCusWright,

2009 Pull quote - Joseph Pine, TED conference, “What Consumers Want”. http://www.ted.com/talks/joseph_pine_on_what_consumers_want.html

“Increasingly what will make us happy is spending our time and our money satisfying the desire for authenticity.”

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transformation. All that from a fishing trip on the Rogue? Yes. The good news is, for travel and

tourism professionals, the perfect world feels a lot like Oregon.

THE IMPACT OF AUTHENTICITY

In our previous strategic plan, Travel

Oregon called out Oregon’s “authenticity

advantage.” In that plan the consumer

marketing approach was to inspire,

engage, and multiply; and the results

speak for themselves. Travel Oregon’s ad

campaign, recognized by the US Travel

Association as “Best Overall Campaign” in

2010, generated $8 dollars in new tax

revenue and $193 dollars in new visitor

spending for every $1 dollar invested in

domestic media advertising. As a result,

more people than ever before are

engaging with Travel Oregon’s relationship network: over 2 Million unique visitors on Travel

Oregon’s family of sites each year, 21,000 Facebook fans, and an overall consumer response

rate that has increased over 155% from 5 years ago.

The effects of our work are also felt around the

world. Despite the global recession, we’ve been able

to maintain and even grow awareness of Oregon in

both established and emerging international

markets. We’ve seen growth in overall international

visitation to Oregon, have been able to identify

promising emerging markets, and have been savvy

about maximizing our relationships with the travel

trade with first of a kind online strategies—

harnessing Twitter and Facebook in country, for

example, to drive consumers to tour operator

product featuring Oregon. Importantly, Oregon has sustained the international nonstop air

service to Canada, Amsterdam and Tokyo.

The Oregon Bounty Cuisinternship campaign generated the largest single

day spike in visitors to traveloregon.com.

In country representatives manage regular tweets, in language, to

fans in Japan, the Netherlands, Germany, UK and France.

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The impacts begin, in fact, at the ground level, where tourism development plays a critical role

in the incubation of small business and its inherent entrepreneurial spirit. One such program is

The Oregon Rural Tourism Studio,

a training initiative designed to

assist with the development of

their tourism industry in a way

that will help stimulate the local

economy, protect and enhance

local natural and cultural

resources, and foster pride

amongst participants. As a result

of the program, Travel Oregon

hopes to see an increase in high-

value, authentic experiences for

travelers across the state that will

contribute to community livability

and help strengthen our state’s position as a premiere tourism destination in North America.

Tourism planning requires relevant research, strategies, resources, timely information, and

partners. Unique tourism niches offer statewide opportunities that can be “owned” by Oregon–

such as cycling.

European Tour Operators on an Oregon research trip. Promoting shoulder season product is a key

strategy for international markets.

Community members participate in Travel Oregon’s Rural Tourism

Studio in Oakridge. At right, Oakridge’s new visitor guide.

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Oregon is home to a wide range of some of America’s most scenic riding–road and off-road–

and nurtures one of the world’s most dynamic

bicycle cultures. This did not happen by

accident. In large part, it was planned tourism

development, years in the making – and a

prime example of the core ethos permeating

Oregon’s tourism strategy: STEWARDSHIP.

Reflecting this, Travel Oregon and the state’s

tourism and hospitality industry have focused

on the identification and promotion of

enterprises which adhere to sustainable

practices.

The risk of a fragmented approach is the loss

of brand cohesion. That is why this plan places such a premium on our ability to work even

better together as an industry. So where the impact begins at the ground level—it is

successfully gaining momentum throughout the

industry and driving incredible performance in

Oregon’s overall economy. Together with

Oregon’s dozens of Destination Marketing

Organizations and tens of thousands of businesses

across the state, we’re part of a tourism industry

that generates $313 Million in state and local tax

revenue, 87,500 direct jobs, and an overall impact

of $8.1 billion dollars per year for Oregon’s

economy.

Each region is seeing growth, gaining awareness,

and contributing to the magical public

understanding of Oregon as a destination, an

experience, a brand, and a feeling. It is not about

one season or another, it is not about one festival, or sport, or destination.

It is a catalytic effect that reflects the steady integration of efforts small and large all over the

state. The leaders in our industry are saying loud and clear that the momentum we are

experiencing is strong and tangible.

Central Cascades Geotourism Project Website launched in 2010,

in partnership with Travel Oregon, Washington Tourism, National

Geographic and dozens of Oregon communities.

RideOregonRide.com – a comprehensive website for

cycling launched in 2010.

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LEVERAGING CONNECTIONS AND EXPERIENCE

For all of the high technology and real-time web implications in this plan, the work that needs

to be done is more akin to hiking a steep trail on a rainy day than launching a rocket ship. It is

about being prepared; paying attention to every step; and making sure we all know where we

are and where we are going. It is more about discipline than difficulty.

But in this world of constant distraction, focus is a luxury. It is challenging to maintain alignment

in communication, planning efforts, messaging, and marketing within a single agency—much

less an entire industry. But that sense of interdependence and connection throughout the

entire industry is what we aim to achieve.

Through efforts like Project Watershed,

Oregon’s tourism industry is working to

create rhythm and alignment in strategic

planning and shared goals. Through the

Oregon Tourism and Hospitality Consortium

we are providing an ongoing platform for

dialogue and adjustments. It is about all

industry partners recognizing that nobody

enjoys an abundance of time or money, and

recognizing the intelligence and urgency of

working together.

It is about continuing to ensure the highest

and best use of all of our resources and relationships to achieve the substantial goals defined in

this plan. The economic impacts described above represent a fraction of what is possible if we

optimize our connections and focus on ensuring a 21st century standard of quality in every

aspect of a visitor’s experience in Oregon. This is not a strategic plan designed to play defense

against a backdrop of economic woe. This is a strategic plan designed to create alignment and

invite a wide range of private and public partners to contribute and benefit from this

sustainable economic engine.

Not to push the hiking metaphor too far, but even novice hikers know—gear makes a

difference. With the right tools we can be more focused and make smarter choices for how we

apply our limited resources. We can develop more customized communication—connecting

visitors to relevant content through personalized “lenses”—alleviating the overwhelming

nature of searching for travel info online. We can spark actual conversations—to intrigue

visitors and encourage authentic WOW Oregon experiences. We can work hard to deliver

Stakeholders from across the state meet for Watershed, a long term

tourism planning initiative, fall 2010.

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quality experiences and to reward consumers—an Oregon tribe of fans—who take that extra

step and become advocates for the Oregon way. The stories from our tribe will attract others

who choose to build their own personal Oregon adventure—and join the tribe themselves. This

is the stuff of marketing in the world of the real time web.

There is no doubt that managing a brand promise as big as Oregon in the digital world, and

insuring excellence in every visitor experience, is a complicated challenge. And there are parts

of this plan that reflect that complexity. Many elements fall into the category of “business

intelligence” strategies: optimizing online analytics, developing advanced visitor profile

heuristics, etc. But the core impulse behind this plan is simple; keep our visitors, their needs,

their goals, at the center of our focus—and their experiences and stories will take us the rest of

the way.

KEEPING GOALS AND VALUES FRONT AND CENTER

One of the classic mistakes of businesses in the

digital world is to believe that the internet and

social media resources area marketer’s “field of

dreams.” Put up a cool web site and some

interactive content—and they will come—and

buy whatever you’re selling: marketing made

easy. In reality, marketing has never been more

complex; some say the discipline doesn’t even

exist anymore in its traditional sense. A

consequence of communicating in the digital

world is that people can easily peel back the

layers of any marketing pitch and find the truth of

the value proposition. It may be in consumer

reviews, or blogs, or in interviews with subject matter experts. People know that they can

“check everything out” online. Travel Oregon’s work over the past nine years has created

measurable confidence in our value proposition and brand promise and we are ready for the

scrutiny that comes with digital communications.

Digital communications are a means, not the end. Social media is merely a tool, not the key to

human development. We are not seeking lots of friends on Facebook… Our goals are much

bigger. The goals for Travel Oregon include a resolute stewardship for all of Oregon’s natural

resources the desire to add sustainable, living wage jobs—by the thousands—to Oregon’s

economy: and to provide Millions of people with best in class service and transformative

experiences that ultimately make the whole universe a better place. That is what this plan is

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about. That is what we want to accomplish. So you can see, a few clicks here and there aren’t

going to cut it. As we take advantage of modern technology trends we must be careful not to

confuse the map with the territory—the means with the ends.

It is true, the real time web is changing the way

humans and computers interact. The rise of the

App and location aware devices are all combining

to transform what is possible as the number of

“smart” devices exceeds 5 billion. Computers are

acting more and more on our behalf—not on our

command. The big question is how do these

technology shifts enable new, more authentic,

connections and experiences? It is not about

having a cool GPS unit in your coat pocket—it is

about how that peace of mind that comes from

the GPS unit creates a better, safer, more

challenging hiking experience. Oregon is rich in the

substance of experience; we simply need to make it discoverable in an increasingly crowded

digital universe.

STRENGTHENING OUTCOMES THROUGH ALIGNMENT

This plan recognizes that whatever boldness we can muster is a function of our ability to define,

connect, and become more self-aware as an industry. The impulse to make connections has

always been a part of our approach at Travel Oregon. It starts with connections between local,

regional, and statewide destination management resources. Next there are connections with

industry partners like hotels, restaurants, travel professionals, etc. Then there are connections

with key State and Federal agencies like Fish and Wildlife, Transportation, National Parks

Service, Forest Service, Bureau of Land Management, Parks and Recreation. Now a wide range

of small businesses from river guides to breweries are joining us at the planning table. We are

connecting with snow sports associations, bird watchers, foodies and guides and packers, the

list goes on and on. It is not unreasonable to ask, who isn’t a stakeholder in the success of

Oregon’s travel and tourism industry?

What is different about this plan is that these connections are a source for measurable

cooperative action. An example of this “action” approach began in mid-2010 with an initiative

named “Watershed.” The goal for Watershed is to solicit perspectives and opportunities from a

broad cross section of industry experts to clarify a shared, guiding vision for the next 20 years.

Watershed asks the question, “What could happen if we work together with a shared vision in

The new Travel Oregon Welcome Center at PDX serves

125,000 visitors a year.

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mind?” During a break in one of the initial Watershed meetings an attendee quipped, “You can

feel the silos melting.” And although it is in the early stages, Watershed is working. An early

result of this effort is a commitment from dozens of stakeholders to participate in an annual

shared strategic planning and

alignment process to create more

efficiency and impact across the

industry. The effort also confirms the

veracity of the strategic planning work we have done over the years; we are at least in the same

chapter if not on exactly the same page with one another.

KEY OUTCOMES AND PERFORMANCE METRICS FOR THE 2011-13 STRATEGIC PLAN

Travel Oregon has developed this plan, continuing to use an “outcomes-based” approach

where the inclusion and priority of a specific strategy or tactic is determined by the results it

will generate. Examples include economic return on investment, community strategic

development, industry infrastructure, capacity building, and industry workforce metrics. As you

examine Travel Oregon’s list of targeted outcomes below, you’ll see the potential synergies

statewide, and note that each of these statements is ultimately prescriptive and measurable.

1. Grow strategic partnerships to align & leverage resources to achieve core goals

Travel Oregon takes full advantage of all business relationships to capitalize on

efficiencies

Travel Oregon generates revenue opportunities that bring in additional dollars that

leverage the 1% lodging tax revenue

Key Partner Examples:

Public land management agencies

Economic development/business development

Private sector (consumer goods and services, tourism businesses)

Foundations

Destination Marketing Organizations

Educational institutions

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Grow Strategic Partnerships to Align & Leverage Resources to Achieve Core Goals

Key Metrics Results 2009-11 Goal 2011-13

Domestic Consumer Marketing

The Orb: Data partners 13 data partners:

10 active DMOs, 3

statewide trade

organizations

Double

participating DMOs;

explore other

possible trade

associations

The Orb: Training/Support 10 DMO training

sessions

Double training

sessions

The Orb: Distribution partners (sites other

than TO)

2 Increase to 10

Advertising/Partner Opportunities: Ad

Network - Increase Ad Revenue by 16%

(from '10)

$654,780 (based on

CY 2010 contract

period)

$760,547 (avg. per

year)

Key Metrics Results 2009-11 Goal 2011-13

Tourism Development

Governor’s Conference Number of Delegates

862

1,000

Percentage of Program Cost Supported by Delegate Fees (event meets budget expectations)

60% 50%

Key Metrics Results 2009-11 Goal 2011-13

International & Domestic Travel Trade

Increase Oregon Tour Operator Product

awareness through strategic retail

partnership 1 event 2 events

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2. Continue to Implement Global Brand Campaign to Maximize Consumer Impact and

Overnight Trip Generation

Consumers are inundated with messages; consistent, cooperative branding creates

greater impact and retention of our message

Continue to implement evocative, resonant brand work that communicates

Oregon’s core values and experiences, and that motivates people to visit

Help partners effectively adapt voice and/or style of Travel Oregon brand campaign

that can be used in various markets for tourism businesses/destinations

Continue to Implement Global Brand Campaign to Maximize Consumer Impact and Trip Generation

Key Metrics Results 2009-11 Goal 2011-13

Domestic Consumer Marketing

Advertising: Increase ROI in Expenditures

5% (every $1 invested in advertising

generates visitor spending)

$193 in visitor

spending (based on

'08 Longwoods Ad

Accountability

study)

$203 in visitor

spending (to be

based on '10

Longwoods Ad

Accountability

study, est. final

report May 2014)

Advertising: Reduce Cost to Generate Trip

5%

$1.14 (based on '08

Longwoods Ad

Accountability

study)

$1.08 (to be based

on '10 Longwoods

Ad Accountability

study; est. final

report May 2014)

Advertising: Maintain Average

Cost/Inquiry**

$0.64 (based on FY

'09-'10)

$0.64

Advertising: Increase Total Inquiries* 9% 2.29 Million (per

year, based on FY

'09-'10)

2.50 Million (avg.

per year)

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TravelOregon.com: Overall Reach for Digital

Platforms (Visitation)

2.2 Million (avg. per

year)

Increase by 10% to

2.42 Million (avg.

per year)

TravelOregon.com: Time on Site 6.72 minutes Maintain

TravelOregon.com: Overall Engagement 11.24% Increase to 15%

National Media Relations: Print Circulation 529 Million

(2 years)

600 Million

(2 years)

National Media Relations: Online

Circulation (Millions)

638 (FY10-11 online

coverage only, not

tracked in '09)

1,700 (2 years)

National Media Relations: # of Print Stories 357 360

National Media Relations: # of Online

Stories

170 (FY10-11 online

coverage only)

550 (2 years)

Key Metrics Results 2009-11 Goal 2011-13

International & Domestic Travel Trade

International Website Visits

- TravelOregon.de

- TravelOregon.jp

- TravelOregon.cn

- TravelOregon.kr

- TravelOregon.fr

24,380 Visits

18,201 Visits

New

New

New

25,000 Visits

24,000 Visits

20,000 Visits

20,000 Visits

15,000 Visits

VisaVue® FY 10 Benchmark Goal 6% Increase

Track VisaVue® top key and emerging markets statistics

1,424,000 1,509,440 per year

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Tour Operator Product Listings FY 09-10 Benchmark

Goal 6% Increase

- United Kingdom 902 950

- Germany 1334 1350

- France 17 20

- Netherlands 106 Maintain

- Scandinavia New 10

- Japan 30 Maintain

- Canada 63 70

- Australia New 5

Domestic Travel Trade 287 300

Media Relations: Print Circulation ** FY 09-10 Benchmark

Goal per year

- United Kingdom 66,384,687 66,500,000

- Germany 6,888,229 6,900,000

- France 828,761 900,000

- Netherlands 4,787,215 4,800,000

- Scandinavia New 200,000

- Japan 103,202,114 100,000,000

- Canada 310,961 330,000

- Domestic Travel Trade 359,456 400,000

* Avg. inquiries per year (Response Rates) currently includes BRCs, phone inquiries, TravelOregon.com,

Blog, GoSeeOregon.com, RideOregonRide.com, Food + Drink site, Kids Site (TO investigating inclusion of

other key TO branded "outposts" like Facebook, YouTube) ** Online International circulation will begin being tracked July 1, 2011.

3. Deliver the Brand Promise of Oregon to our Industry and Consumers of Personalized,

Best in Class Service

Consumer:

Travel Oregon is the number one trusted resource for trip planning to Oregon

globally

Oregon information and inspiration is available to the world

Oregon has a seamless visitor information network—both online and face to face

Grow deeper understanding of our customers so we can better serve their needs.

Provide customized information

Oregon is a playground where visitors can easily connect with transportation

(reservations, activities, etc.) throughout the entire experience

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Industry:

Travel Oregon is a global leader and source of inspiration for tourism marketing

innovation, use of technology, and small business incubation

Businesses and communities are able to make effective decisions about their

development because they have adequate research

Oregon’s Tourism Industry has robust access to Travel Oregon resources, tools and

training

Deliver the Brand Promise of Oregon to our Industry and Consumers of Personalized, Best in Class Service

Key Metrics Results 2009-11 Goal 2011-13

Tourism Development

Visitor Information Network: Cost per Visitor

<$2.00/visitor <$1.80/visitor

Industry Website: Unique Visitors to Site 30,000 50,000

4. Oregonians, Business Leaders and Elected Officials See Tourism as a Vital Strategy for

Economic Development and Preserving Oregon’s Quality of Life

Create jobs and earnings in the tourism and hospitality cluster, delivering on both

quantity and quality of jobs

Generate visitor spending and tax revenue

Facilitate transformation/revitalization of urban and rural areas

Oregonians, Business Leaders and Elected Officials See Tourism as a Vital Strategy for Economic Development and Preserving Oregon’s Quality of Life

Key Metrics Results 2009-11 Goal 2011-13

Tourism Development

Rural Tourism Studio: Engaged Participants 175 200

Consortium: Regional Town Halls Delivered 6 8

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5. Oregon Preserves and Enhances its Natural and Cultural Resources Through Tourism

Oregon is a leader in the sustainable travel experience

Tourism improves the quality of life for visitors to/within Oregon, and maintains the

Oregon ethos

Identify and develop visitor experience niches/products that align with Oregon’s

core values and generate positive economic impact across the state (e.g., “Oregon is

the number one cycling tourism destination in North America” and “Oregon is the

number one local, organic, sustainably managed culinary travel experience in North

America”)

Visitors are able to travel and practice their environmental values easily. Tourism

businesses operate with the triple bottom line in mind (people, planet, profit)

Oregon Preserves and Enhances its Natural and Cultural Resources Through Tourism

Key Metrics Results 2009-11 Goal 2011-13

Tourism Development

Sustainability Initiatives: Business Challenge Participants

N/A 250

Number of hoteliers participating in the Travel Philanthropy Program

N/A 70

Number of eating establishments participating in the Travel Philanthropy program

N/A 25

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BY THE NUMBERS

Total Travel Oregon Budget 2011 – 2013 $23,696,773

Tourism Development $3,913,000

Domestic Consumer Marketing $10,782,157

International Marketing/Sales & Domestic Travel Trade $3,317,453

Regional Cooperative Marketing Program $2,776,758

Administration Budget $2,907,405

URBAN SOURCES OF BUSINESS

Regions

Urban Sources of Business The Coast

Willamette Valley

Southern Oregon

Central Oregon

Eastern Oregon

Greater Portland

Mt. Hood/ The Gorge Oregon

Portland 54% 40% 14% 38% 38% 19% 32% 40%

Seattle 6% 6% 10% 14% 7% 25% 13% 13%

Eugene 9% 21% 5% 10% 6% 4% 9%

Medford 6% 17% 5% 5% 5%

Bend 3% 5% 5% 5% 5% 4%

LA 5% 4% 5% 7% 3%

SF 13% 5% 5% 8% 4% 3%

Spokane 3% 4% 4% 3%

Boise 13% 4% 2%

Sacramento 8% 2%

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NATIONAL OUTLOOK FOR TRAVEL

Travel Forecast Summary

*1982-84 = 100

**Excludes international visitors’ spending on traveling to the U.S. on U.S. flag carriers, and other misc. transportation

***One person on one trip 50 miles or more, one way, away from home or including one or more nights away from home.

Sources: US Travel Association’s Travel Forecast Model; BLS, Department of Labor; OTTI, BEA, Department of Commerce

Year 2006 2007 2008 2009 2010 2011 2012 2013

Measurement

Real GDP ($ Billions) 12,976.3 13,228.9 13,228.9 12,880.6 13,214.4 13,538.3 14,011.0 14,547.1

Unemployment Rate (%) 4.6 4.6 5.8 9.3 9.7 9.2 8.0 6.9

Consumer Price Index * (CPI) 201.6 207.3 215.2 214.5 217.9 221.1 226.1 232.7

Travel Price Index * (TPI) 233.5 244.0 257.7 241.5 251.6 259.2 267.6 275.5

Total Travel Expenditures in U.S. ($ Billions) 695.7 738.0 772.5 704.4 755.6 794.9 834.7 878.8

U.S. Residents 610.0 641.3 662.4 610.2 654.0 683.1 713.2 749.8

International Visitors ** 85.7 96.7 110.1 94.2 101.7 111.8 121.6 129.0

Total International Visitors to the U.S. (Millions) 51.0 56.0 57.9 54.9 59.3 61.5 64.4 66.9

Overseas Arrivals to the U.S. (Millions) 21.7 23.9 25.3 23.8 25.8 27.1 28.5 29.8

Total Domestic Person-Trips *** (Millions) 2,000.5 2,004.5 1,964.9 1,898.8 1,957.2 1,992.5 2032.4 2080.7

Business 508.7 494.3 461.1 431.1 449.0 460.8 469.0 476.5

Leisure 1,491.8 1,510.2 1,503.8 1,467.6 1,508.2 1,531.7 1,563.4 1,604.1

Percent Change from Prior Year

Real GDP (%) 2.7 1.9 0.0 -2.6 2.6 2.5 3.5 3.8

Consumer Price Index (CPI %) 3.2 2.9 3.8 -0.3 1.6 1.4 2.3 2.9

Travel Price Index (TPI %) 4.9 4.5 5.6 -6.3 4.2 3.0 3.3 2.9

Total Travel Expenditures in U.S. (%) 6.4 6.1 4.7 -8.8 7.3 5.2 5.0 5.3

U.S. Residents 6.6 5.1 3.3 -7.9 7.2 4.5 4.4 5.1

International Visitors 4.9 12.9 13.8 -14.4 7.9 10.0 8.7 6.1

Total International Visitors to the U.S. (%) 3.6 9.8 3.5 -5.3 8.0 3.7 4.7 3.8

Overseas Arrivals to the U.S. (%) -0.1 10.3 6.1 -6.3 8.6 5.2 4.9 4.7

Total Domestic Person-Trips * (%) 0.4 0.2 -2.0 -3.4 3.1 1.8 2.0 2.4

Business -0.2 -2.8 -6.7 -6.5 4.2 2.6 1.8 1.6

Leisure 0.6 1.2 -0.4 -2.4 2.8 1.6 2.1 2.6

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REGIONAL COOPERATIVE MARKETING PROGRAM (RCMP)

Under the 1% statewide lodging tax legislation, the Oregon Tourism Commission may appropriate as much as 15% of the revenue to Oregon’s seven tourism regions for cooperative regional and multi-regional marketing efforts. The Travel Oregon team continues to dedicate significant time and resources to running an effective and efficient RCMP program. We convene in-person planning summits and supplemental conference calls as needed with the seven Regional Destination Marketing Organizations (RDMOs) to cover project updates and brainstorm joint initiatives. The regions submit a six month progress report and a final annual report in February and August, respectively. The timeline for the RCMP is as follows: Summer/Fall – Brainstorming/Planning Summit with RDMOs and Travel Oregon team. Travel Oregon team shares key initiatives and the group develops statewide program ideas. Early Winter – Travel Oregon team presents at ODMO (Oregon Destination Marketing Organizations) winter conference on strategic direction and partnering opportunities. Winter to Spring – RDMOs convene marketing committees and build plans. RDMOs present plans to each other and to Travel Oregon team in April. Spring – Plans are negotiated with regions and finalized, pending commission approval. Early Summer – Plans presented at Oregon Tourism Commission meeting for approval. These plans are posted on the Travel Oregon website at: http://industry.traveloregon.com/Departments/Domestic-Consumer-Marketing/Regional-Cooperative-Marketing-Program.aspx

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APPENDIX

This section provides plans by department in more detail. If you have additional questions

regarding our plans and opportunities for partnering with Travel Oregon, please contact us at

info@traveloregon.com or 503.378.8850.

TRAVEL OREGON COMMISSIONERS

Nine commissioners oversee the activities of the Oregon Tourism Commission (at the time of this plan we are awaiting the appointment of one commissioner). The Governor appoints all Commission members with five representing Oregon’s lodging industry, three representing the tourism industry at-large and one representing the public-at-large:

Tom Luersen, Chair

Chris Erickson, Vice-Chair

Alana Audette

Jackie Edmunds-Manz

Hank Hickox

Jeffrey Kohnstamm

Win McCormack

Karen Utz

Kari Westlund

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TOURISM DEVELOPMENT

The Tourism Development Department embraces its mission to “assist Oregon communities and organizations to develop, enhance and implement sustainable tourism plans and products.” During the next biennium our efforts will be focused on the following:

Tourism Research – Travel Oregon will continue to conduct actionable research on industry health and Travel Oregon’s performance, as well as the overall contribution to Oregon’s economy by both Travel Oregon and the industry.

Industry Strategy & Communication – Travel Oregon will continue to pursue its efforts to strategically communicate the socio-economic value of the state’s tourism industry. This communication platform will be delivered through a “best in class” interactive industry interface.

Product & Business Development - Travel Oregon will continue to focus on emerging sustainable tourism development opportunities.

Destination-Based Development – Travel Oregon will continue to strengthen and deepen our commitment to assist communities working toward their full tourism potential.

Visitor Relations – Improve Travel Oregon’s and partners’ consumer experience deliverables to “best in class” by deepening the reach of the program and broadening a statewide commitment to on-site visitor information delivery.

Industry Research Background: Travel Oregon recognizes that research can be the key to successful marketing and development – but not all tourism constituents can afford to build their own research platform. Therefore, Travel Oregon dedicates resources to produce and purchase proactive research products. These materials help the tourism industry make informed decisions regarding product development, marketing programs, trending and performance at the local, state, national and international levels, and provide performance measures for the agency and the industry. This commitment to a consistent research platform allows for educated and efficient use of resources. Description: Conduct actionable research that provides Travel Oregon and industry partners tools to make strategic marketing, development and communication decisions. The industry platform for the upcoming biennium will include the following:

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Annual Industry Economic Impact Research (Dean Runyan & Associates)

Advertising Impact Evaluation Research (Longwoods International)

Visitor Profile Research (Longwoods International)

International Spending Research (VisaVue®)

Lodging Industry Health Research (Smith Travel Research)

National Trending Research (US Travel Association) Key Measurements: Provide timely research results to Travel Oregon and Oregon’s tourism industry that are utilized to advance industry interests. Tourism & Hospitality Consortium Background: Prior to the passage of the Oregon Tourism Investment Plan in 2003, the state’s tourism marketing efforts were inadequately funded or ranked 47th in the country out of 50 states. As a result, Oregon was losing market share to its tourism competitors. In 2003, tourism industry leaders crafted a plan that resulted in strong administrative and “executive” legislative support. This new funding structure allowed Travel Oregon and its tourism marketing partners to make long-term plans to bolster the state’s tourism industry. The success of that legislative victory led to the formation of the Tourism & Hospitality Industry Consortium (Consortium). Its mission focused on the broader strategic outcomes for both the industry and the state. The goal was a productive dialogue with policymakers, economic development professionals, and business and industry leaders throughout Oregon. The Consortium organized and built a strategic plan with four imperatives:

Create a clearinghouse for industry positions/messages

Create a leadership vehicle for industry action

Create a common communication platform for conveying industry value

Share the experience values of Oregon Description: Travel Oregon will continue to build on the Consortium successes experienced over the last six years. We will work to adapt the organization’s structure to encourage a broader and deeper industry positioning platform. This will include the possibility of partnering with industry organizations to help broaden the communication audiences for strategic industry messages. Specifically, Travel Oregon will address the following during the 2011-13 biennium:

Convene and Participate in quarterly Tourism & Hospitality Consortium Steering Committee meetings

Convene annual Consortium Industry Summit

Convene four regional town hall meetings per year

Act on the findings of Project Watershed

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Produce, deliver and maintain industry communication toolkit and platform

Advocate industry value to state’s economic development infrastructure

Advocate industry value to state’s policy-maker infrastructure Key Measurements

Consortium Results 2009-2011 Goal 2011-2013

Number of Town Halls delivered 6 8

Produce Robust and Interactive Industry Messaging Toolkit on Updated TravelOregon.com/Industry

N/A In place by fiscal 2012-13

Convene Annual Consortium Summits

2 summits – 150 total participants

2 summits – 200 total participants

Industry Communications Background: Since the formation of Travel Oregon, the organization has understood it operates in service to the state’s tourism industry. We also appreciate that real industry success will only occur when all partners are aligned and leveraged in their efforts. This dynamic depends on clear communication that leads to trust which leads to strong partnerships. It’s a new era of collaboration. We’re all working toward the same purpose: get visitors to Oregon. As the go-to resource, Travel Oregon forges alliances that inform our collective work and ultimately serve to create jobs and build our economy. Travel Oregon must demonstrate its value to the industry by establishing a superior and reliable industry information resource. Description: To advance and support the work of the industry, Travel Oregon will develop a communications strategy and tools to help partners statewide share our collective intelligence and communicate with one voice. We will:

Build out our industry website content with a wealth of exceptional tools and stories that share our industry’s value and impact

Deploy our knowledge in communication tools partners can utilize to share the tourism industry story

Provide businesses and media with the latest industry information

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Support tourism development projects such as the Sustainable Business Initiative and Traveler’s Philanthropy with business-to-business communications

Anticipating industry needs, Travel Oregon will develop a state-of-the-art interactive interface that engages partners as THE trusted foundation for industry communication. To achieve a top-notch platform, the existing website needs new focus. Working with the industry, we will develop a user-friendly, intuitive “destination platform” that drives the Travel Oregon message and delivers in a timely manner:

Information resources (news, key research, industry contacts, earned media, key industry messages, Consortium/Watershed updates-opportunities, etc.)

Interactive project tools (brand elements, images, FAQs/guides, case studies, etc.)

Social media and intra-industry messaging (blogs, problem-solving asks, etc.)

Partnership opportunities (with Travel Oregon and industry-wide) Key Measurements

Industry Communication Platform Results 2009-2011 Goal 2011-2013

Launch of Upgraded Industry Site

N/A 1/1/2012

Unique Visitors to Site

30,000 50,000

Oregon Governor’s Conference on Tourism Background: For over 25 years, Travel Oregon has organized and convened the annual Oregon Governor’s Conference on Tourism. The purpose of this annual gathering is to provide opportunities for Oregon tourism industry professionals to learn about new travel trends, acquire new skills and interact with colleagues from throughout the state. Travel Oregon works closely with a broad range of industry, agency and economic development partners to produce a high value, comprehensive, and interactive program that is a “can’t miss” experience. It is also the intent of Travel Oregon to move the conference each year to different regions in the state to encourage a broad range of Oregon experiences for delegates that attend year after year. The conference has seen growth over the last decade and currently enjoys annual attendance of over 400 delegates. The conference is predominantly supported by registration fees, sponsorships and exhibitor attendance. Description: Travel Oregon will continue to produce a “best in class” conference experience for attendees by sharing timely information and opportunities that can be “taken home” and put to use. We will work with our partners to ensure that we also showcase the areas where the conference is held as well as recognize the partnerships necessary to produce the event.

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The objectives for the upcoming biennium are:

Provide the highest level of educational, inspirational and networking opportunities for Oregon’s tourism industry members

Encourage agencies, communities and organizations to participate in the event

Look for opportunities for deeper leveraging relationships with sponsors, exhibitors and delegates

Make the conference less reliant on delegate fees

Create and utilize feedback tools to measure success and to inform future conferences

Key Measurements

Governor’s Conference Results 2009-2011 Goal 2011-2013

Number of Delegates 862 1,000

Percentage of Program Cost Supported by Delegate Fees (event meets budget expectations)

60% 50%

Cycling Tourism Program: Making Oregon a Premiere Cycling Destination Background: Cycling Tourism is on the Rise Oregon is home to exceptional leadership and visionary pioneers who have pushed the cycling frontier. Our state initiated many of the nation’s “firsts,” including the Oregon Bicycle Bill in 1971, Cycle Oregon, Oregon Bicycle Tourism Partnership, Oregon Scenic Bikeways Program, an International Mountain Bicycling Association Ride Center designation, BikePortland.org and RideOregonRide.com. As a result, Travel Oregon (with partners3) has identified cycling tourism - road and off-road - as an important economic development strategy for Oregon. Per the Adventure Cycling Association (2010), bicycle travel continues to grow as part of North American and global travel markets, based on empirical research and anecdotal evidence from tour operators and promoters throughout the country. Bicycle travel is an increasingly visible part of the global adventure travel market, which generates $89 billion annually.4 While Oregon has not conducted a thorough study of cycling

3 A sample set of partners includes Cycle Oregon, Oregon Parks & Recreation Department, Lane County, Clackamas

County, Wallowa County and Washington County. 4 Adventure Tourism Market Report by the Adventure Travel Trade Association, August 2010

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tourism, Longwoods International has extrapolated a few points from a general visitor study conducted 20095:

1.3 Million tourists6 bicycled while visiting Oregon

Those 1.3 Million tourists spent $223 Million primarily on lodging, meals, and retail

Overnight visitors that cycled spent eight times more than day travelers ($199 Million vs. $24 Million)

Description: To advance Oregon as a premiere destination, Travel Oregon will lead in the following ways:

1. Convene & Partner We will convene and contribute to the Oregon Bicycle Tourism Partnership’s key objectives, and also invest in new partnerships to bolster additional cycling tourism infrastructure.

2. Amplify Connectivity with Cycling Visitors We will upgrade RideOregonRide.com with new features:

o lists of guided tours o a calendar integrated with ORBike.com o a catalog of itineraries, including suggestions for how to enjoy the new

Oregon Scenic Bikeways The creation of a ‘Bike Ambassador’ program will be pursued, whereby one designated cycling ‘expert’ per tourism region would serve as an Oregon trip planning resource. Working with local tour operators, multi-day packages will be created for inbound tour operators (domestic and international) interested in bringing medium/large size cycling tours to Oregon; we have not been able to accommodate these to date.

3. Leverage the Oregon Scenic Bikeways Program As a founding partner, Travel Oregon supports the development of this program by offering assistance to proponent groups. This includes:

o assistance with marketing plans o marketing the designated Bikeways o serving on the committee that shapes the program o offering community-based workshops to support small business

development & visitor amenities along Bikeway routes

5 Oregon 2009 Cyclist Visitor Analysis, Longwoods International, August 2010

6 A tourist is defined as someone traveling more than 50 miles from their residence or staying overnight. Tourists,

in this case, are inclusive of in-state and out-of-state travelers.

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Key Measurements

Cycling Tourism Program Results 2009-2011 Goal 2011-2013

Active members in the Oregon Bicycle Tourism Partnership

+60%7 (increased from 25 to 40)

+30% (increase from 40 to 52)

Number of new strategic partnerships to advance cycling tourism formed

38 5

Number of visitors to RideOregonRide.com 205,423* +35%

Total miles designated as Scenic Bikeways 929 16749 (+80%)

Number of community-based Scenic Bikeway workshops that have been held

N/A 15

* Visits occurring between September 2009 (website launch) to March 29, 2011.

Sustainable Tourism Development Background: While being green is only one facet to sustainable travel, it is clear from the recent TravelHorizons study conducted by the U.S. Travel Association in 2010 that cross-tabulates green travel behavior with the desire to travel to Oregon that the environmentally conscious consumer has a higher propensity to travel to Oregon than to other destinations in the U.S.10 With Portland and Oregon’s international reputation for its leadership in sustainable development, green building, innovative land use practices, and bike-friendly communities, this provides Travel Oregon with an incredible opportunity to:

Align the Oregon experience with the Oregon reputation

Add value through increased visitation from this travel segment

Protect and enhance the natural and cultural assets from which the Oregon tourism industry stems

7 Active participation in the OBTP went from about 25 to 40 within the last biennium. Active participation means

participating regularly in meetings and between meetings. 8 Alta Planning + Design, Bricker Consulting, Oregon Parks & Recreation Department

9 Aiming for an additional 445 in 2011 and 300 in 2012.

10 Travel Oregon/Green Traveler Analysis conducted by the U.S. Travel Association with data collected for the 2009

Wave III travelhorizons™ survey.

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Travelers who consider themselves to be environmentally conscious.

While relatively few travelers are willing to pay extra for green travel, significantly more travelers (15%) considering travel to Oregon are willing to pay extra when compared to those who aren’t considering travel to Oregon (5%). And of those Oregon travelers willing to pay more for green travel, about 25% would be willing to pay a premium of up to 9%.

Maximum additional percentage one would pay for a hotel stay, airline flight or other travel purchase to patronize an environmentally

responsible travel company.

Description: Stewardship of our natural and cultural resources is a way of life for Oregonians. To ensure that the visitor experiences our stewardship ethic while traveling in Oregon, we will lead several initiatives to support sustainable practices in the industry and facilitate easier connections between the visitor and those places that have embraced this ethic. By doing so, we will positively impact our industry’s environmental footprint and contribute to the preservation of

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Oregon’s natural and cultural assets. We will lead five key initiatives under the banner of “Travel Oregon Forever” and they are:

1. Travel Oregon Sustainable Business Challenge A voluntary reporting program created to measure the commitment of tourism organizations operating sustainable businesses. Participating organizations receive rewards through Travel Oregon and partners resulting in increased market access.

2. Oregon Travel Philanthropy Fund This pioneering statewide program supports sustainable tourism development by engaging travelers and travel businesses to channel visitor donations into area projects that will enhance the places they have visited.

3. Sustainable Travel Education & Assistance Travel Oregon will launch an online Sustainability Center, provide statewide educational workshops, and continue stewardship efforts through the Rural Tourism Studio program. 4. Partnering for sustainable transportation options To ensure Oregon is a top travel destination, we will assist in connecting the visitor industry with the development of alternative forms of transportation. These include:

o Electric vehicle charging station network o High-speed rail in the Willamette Valley/Oregon o See ‘Cycling Tourism’ appendix.

5. Sustainable Travel Portal Information gathered through the Sustainable Business Challenge will be brought together with other existing sustainable travel assets such as geotourism data, sustainable transportation options, how to enjoy Oregon’s conservation areas and public lands, and tips on how to travel in a sustainable manner together into one Sustainable Travel Portal for Oregon.

Key Measurements

Sustainable tourism initiatives Results 2009-2011 Goal 2011-2013

Number of businesses/organizations participating in the sustainable business challenge

N/A 250

Number of hoteliers participating in the Travel Philanthropy Program

N/A 70

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Number of eating establishments participating in the Travel Philanthropy program

N/A 25

Amount that the seven Travel Philanthropy projects receive as a result of participating in the program

N/A $70,000

Number of people who benefit directly from educational workshops specific to sustainable travel

N/A 54011

Travel Oregon’s Sustainable Operations Background: Travel Oregon has embarked on a process to identify its impact and understand how it can affect sustainable development both through its internal operations as well as its external programs that influence the industry. To date, Travel Oregon has worked with a graduate student consultant team at the University of Oregon to identify its carbon footprint and has involved all staff in sustainability training by the U.S. Natural Step Network. Through these efforts, Travel Oregon has begun to identify where it can have the most significant impact to reduce the industry’s carbon footprint and improve our impact on the environment and communities across Oregon.

Under the leadership of the Travel Oregon Green Team, the organization has adopted a number of environmentally-friendly initiatives at its headquarters in Salem. As a result, the organization received Marion County’s EarthWISE sustainable business certification and has been recognized as one of Oregon’s top 100 green companies to work for by the Oregon Business Magazine12. Description: In the upcoming biennium, Travel Oregon will utilize information gathered over the past two years to develop an organization-wide sustainability plan that will inform internal operations as well as

external programming to encourage sustainable practices in the broader industry.

11 Estimating at least 14 community-based workshops with an average of 30 people per workshop and 4 conference

sessions with an average of 40 people per session. 12 Travel Oregon received this recognition from the Oregon Business Magazine in March 2011.

Sustainable Tourism: a level of tourism activity that can be maintained over the long term because it results in a net benefit for the socio-cultural, economic, and natural environments of the area in which it takes place.

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The Travel Oregon Green Team will lead the development of the plan in coordination with the Executive Team and the Oregon Tourism Commission. In order to develop the plan, Travel Oregon staff will continue to work with and learn from organizations such as the U.S. Natural Step Network and the University of Oregon’s Sustainability Leadership program. Key Measurements

Sustainable Operations Results 2009-2011 Goal 2011-2013

Recognition for sustainability practices EarthWISE Sustainable Business Certification; Oregon Business Top 100 Green Businesses in Oregon Ranking

Obtain certification or recognition from two additional organizations

Organizational sustainability plan N/A Complete

Product Development Center Background: In the past, Travel Oregon has budgeted for development of individual niche markets; our approach has varied for each. For the upcoming cycle, Travel Oregon will combine all niches for one strategic fund to assist with the development of tourism product as the need or opportunity arises. We believe this fund will be utilized as “match” against partner dollars to augment our reach and impact. Description: Travel Oregon foresees the following opportunities in product development:

Tribal tourism business development: o The continual group work that produces the Tribal Guide also helped craft

emerging programs like the Rez Kitchen Tour. We’ll continue to work with the Oregon Tribal Tourism Working Group to explore new cultural development opportunities.

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Agri-tourism business development: o Many small farmers are looking for ways to supplement their farm business o There is a desire to keep Oregon visitors connected with Oregon products when

visiting the state - and after returning home o Farm Stay operations are being organized on FarmStaysUS.com; these assets

could be integrated into the Oregon Bounty campaign o Existing agri-tourism activities can also be integrated into the Oregon Bounty

campaign

Assistance with assembling content for the TravelOregon.com content lenses: o Facilitate conversations with existing niche groups or new niche groups in order

to properly assemble their content for TravelOregon.com’s new lenses o Provide tools and coaching to these niche groups so they can continue to build

content and showcase product through these lenses over time o Work with our digital interactive team to evolve the content lenses o Niches may include but would not be limited to: wildlife watching, paddle-sports,

wind-sports, and trail recreation Key Measurement

Product Development Center Results 2009-2011 Goal 2011-2013

Number of new content lenses created / niche markets convened and coached

N/A 4

Number of agri-tourism businesses (from Farm Stands to Farm Stays) integrated into the Oregon Bounty campaign

N/A 50

Matching Grants Program Background: The mission of Travel Oregon, is to "encourage economic growth and to enhance the quality of life in Oregon through a strengthened economic impact of tourism throughout the state." As such, Travel Oregon established a program to make grant awards to eligible applicants for tourism projects that contribute to the development and improvement of local economies and communities by means of the enhancement, expansion and promotion of the visitor industry. Travel Oregon’s Matching Grants Program has historically provided “seed” money to Oregon’s tourism industry for tourism development and planning projects. Given the state of Oregon’s economy, each year this competitive program receives on average funding requests three times the amount of resources available. Over the past few years we have streamlined the process to include pre-screening, online application and connecting applicants to their local destination marketing organization. This has improved the content of the proposals and ensured that successful grants are already leveraging the marketing programs in their local areas.

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Description: Travel Oregon will continue to deliver the Matching Grants Program during the next two years. Working with an experienced and diversified grant committee, we will work with those organizations that are eligible to receive the funds to make sure the process is clear and the results from the grants are meaningful. The program will continue to leverage the grant funding with other Travel Oregon and industry partner programs seeking to get the best overall return for the investment. As designed, the program requires a 50% match from the qualifying applicants. This match is important to ensure the strong partnership necessary to create strong tourism products. Those entities eligible for grant qualification are:

Cities & Counties

Port districts

Federally recognized Tribes Key Measurements: Continue to invest in qualifying projects that meet the program ROI guidelines Rural Tourism Studio Background: The percentage of direct travel-generated earnings per capita as a share of total earnings is more than double in rural counties as compared with the five most urbanized counties13. These same rural counties are experiencing a higher unemployment rate as of December 201014 than the rest of Oregon. In addition, vast amounts of Oregon’s natural and cultural tourism “product” resides within and around rural areas. Therefore, it is vitally important that Travel Oregon continues to make strategic investments in the development of community-based capacity for developing tourism and harnessing the economic potential at the local level. Since piloting the RTS program in two communities in 2009, Travel Oregon has received applications from six regions and inquiries from over 15 communities/regions interested in hosting the program to enhance their capacity and develop their tourism product. Travel Oregon has also been approached by the U.S. Forest Service which expressed interest in collaborating through the Rural Tourism Studio to advance their goals of sustainable recreation planning and management in communities surrounded by National Forestlands. It is clear from both the opportunity and the demand that this is a critical program for advancing Oregon’s tourism economy.

13 Five most urbanized counties in Oregon include Multnomah, Washington, Clackamas, Marion and

Lane. Source: Oregon Travel Impacts 1991-2009, Dean Runyan Associates 14

Oregon Employment Department

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Description: Travel Oregon will continue to deliver the Rural Tourism Studio in at least two communities/regions in Oregon per year. Communities that demonstrate a significant need for assistance and potential for accelerated development through the program will be selected. The RTS will assist rural community and business leaders with the development of their tourism industry in a way that will:

Help stimulate the local economy

Protect and enhance local natural and cultural resources

Foster pride amongst participants In the 2011-2013 biennium, we will develop strategic partnerships to augment the program budget and impact, expand program offerings, diversify and lengthen follow up services to communities that have graduated from the program, and consider outsourcing program production. We will consider forging strategic partnerships with groups such as:

U.S. Forest Service

Business Oregon

Oregon’s Main Street Program

The Ford Family Foundation We will consider adding modules such as:

International travel market

Sustainable business practices

Main Street development

Small town branding Additional follow up assistance may include providing:

Consulting to assist with developing a formalized strategic plan for tourism

Coaching to help with establishing a new organization or committee

One-day follow up workshops or training

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Key Measurements

Rural Tourism Studio Results 2009-2011 Goal 2011-2013

Number of RTS programs delivered 415 4

Number of participants engaged Wallowa (63), Oakridge (41), John Day River Territory (37), McKenzie River Valley (37, to date); total (178, to date)

200

Number of partner organizations engaged in design and delivery

1616 19

Integrating & Bolstering National Geographic Geotourism Efforts Background: Geotourism is defined as:

Tourism that sustains or enhances the geographical character of a place - its environment, culture, aesthetics, heritage, and the well-being of its residents.

In 2007, Travel Oregon joined a broad partnership17 to impact sustainable tourism development in rural communities across the “Central Cascades” – a bi-state region from Mt. Rainier National Park in Washington to Crater Lake National Park in Oregon. After two years of planning, fundraising and working with Central Cascades communities to identify special places they wanted to share with visitors, the project’s Stewardship Council produced a printed MapGuide and website. Released in January 2010, these travel tools contain a unique dataset of over 1,200 off-the-beaten path places recommended by the people who live there. A copy of the printed MapGuide was distributed in the April 2010 issue of National Geographic Traveler magazine.

15 Wallowa County, Oakridge area, John Day River Territory, McKenzie River Valley

16 Rural Development Initiatives, Great Destination Strategies, Alta Planning + Design, International Mountain

Biking Association, Oregon Parks & Recreation Department, U.S. Forest Service, Bricker Consulting, Sustainable Travel International, Innovative Leadership USA, Write to Know Consulting, Northeast Oregon Economic Development District, Mid-Columbia Economic Development District, Lane County Small Business Development Center, Mercy Corps Northwest, Eastern Oregon Visitors Association, Travel Lane County 17

Travel Oregon was part of a core advisory committee consisting of Washington State Tourism, Rural Development Initiatives, Sustainable Northwest, U.S. Forest Service, U.S. Bureau of Land Management, and Sustainable Travel International.

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In January 2011, National Geographic convened all of the project leads from the western states’ geotourism projects18 to discuss lessons learned and next steps. Description: In 2011-2013, Travel Oregon will work in partnership to:

Support the efforts of a National Geotourism Stewardship Council and the development of a National Online Geotourism Atlas that would contain the Central Cascades geotourism data

Assess the value and interest in re-convening a bi-state or statewide Stewardship Council

Implement a set of program measurements to determine the success of the first phase of the project

Assess the value of expanding the community-based sustainable tourism identification process to the rest of the state

Assess the interest in reproducing the MapGuide into a format with enhanced National Geographic branding and in a mapping format that facilitates navigation of the region, to be sold and distributed by National Geographic

With Travel Oregon’s Consumer Marketing Team, we will: 1) Determine how to integrate geotourism data into a new sustainable travel portal site for

Oregon 2) Explore ways to bolster our marketing efforts to continue to get the MapGuide distributed. Key Measurements

Geotourism Results 2009-2011 Goal 2011-2013

Number of unique visitors to the www.TheCentralCascades.com (or a future geotourism lens on TravelOregon.com)

27,27319 +200-300%

Number of Central Cascades Geotourism MapGuides distributed

12,20020 10,000

Number of businesses/locations on the MapGuide or website indicating increased visitation due to the project

N/A 80

18 Travel Oregon joined representatives from other geotourism projects in the Western United States including the

California Redwood Coast, Sierra Nevada, Crown of the Continent, Greater Yellowstone and Four Corners Region. 19

Google Analytics as of March 17, 2010 20

As of March 15, 2011

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Oregon Q CARE Program Background: The Oregon Q CARE Program is a statewide customer service training certification created to support the development of the tourism and hospitality industry through enhanced guest experiences. The program provides statewide standardized customer service, emphasizing the importance of quality visitor care in the tourism industry, and equips Oregon employees with tools and resources needed to better serve our visitors. Initially launched in 2003, the Oregon Q-CARE Program was implemented in all seven Oregon tourism regions and trained over 10,000 people through 2007. Beginning in 2007, the program transitioned to a free, behavior-based online training curriculum. Since the implementation of the online offering another 5,000 people have been trained. Description: Travel Oregon will continue to deliver the Oregon Q-CARE program for the next two years. Great customer service is vital to the success of any business, tourism-based or not. Every personal or interactive contact with consumers is an important opportunity to make those consumers believers in Oregon. The objectives for the program in the coming biennium are:

Establish Oregon Q-CARE as a vital training tool in private and public sector organizations

Establish strategic delivery partnership with industry training partners

Develop sponsorships, scholarships and funding sources to support the training

Review curriculum and tourism content and investigate producing additional online modules

Schedule annual regional in-person trainings to help promote the value of customer service

Leverage Oregon Q CARE training through all Travel Oregon programs Key Measurements

Oregon Q CARE Results 2009-2011 Goal 2011-2013

Number of Q-CARE Certificates 3,000 6,000

Regional Trainings Delivered N/A 6

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Visitor Information Network Background: Oregon is primarily a drive travel market with over 85%21 of its traffic arriving by automobile. Research shows that a majority of those visitors view Welcome Centers/Rest Areas as important destinations in their travels22. One of the primary reasons they look for these centers is to find restrooms. However, it is also important to note that finding “brochures and maps” and “staff” are also high on travelers’ minds. Even in this day of rapidly expanding interactive travel information, travelers continue to seek tourism collateral and in-person travel advice. Travel Oregon is responsible for the management of the State Welcome Centers. Currently, we operate nine centers located at the borders of Washington, Idaho and California. The majority of the centers are operated seasonally; only the center at Portland International Airport is open all year. The nine centers are listed below:

Ashland (Siskiyou)

Astoria

Brookings (Crissey Field)

Klamath Falls (Midland)

Lakeview

Ontario

Oregon City

Portland International Airport (PDX)

Umatilla Description: Travel Oregon will continue to direct the State Welcome Centers. It is important to understand that the State Welcome Centers are simply one piece of the state’s overall visitor information environment. This environment contains regional and local destination centers as well as private sector locations that also function as visitor information outlets. The mission of all components of this environment is to deliver first class customer service and information to Oregon visitors. The desired outcome is to enhance the visitors’ experience while they are in Oregon in hopes of creating return customers. In the next biennium, we seek to help create a stronger, more efficient overall visitor information environment. The objectives to achieve this goal are the following:

Assess Welcome Center/Visitor Information Center system realities and opportunities

Support development of new Siskiyou Welcome Center

21 Longwoods International, Visitor Profile

22 US Travel Association, Travel Horizons

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Upgrade strategic Welcome Center locations with Brand Oregon assets

Introduce qualified web-based surveys throughout the system to collect actionable data

Conduct continued topical and industry trainings for staff

Improve brochure program opportunities for industry members

Deliver first-class visitor experience in the most efficient manner possible

Measure visitor experience through secret-shoppers & satisfaction surveys Key Measurements

Visitor Information Network Results 2009-2011 Goal 2011-2013

Total Welcome Center Visitation 400,179 525,000

Average System Cost/Visitor $2.00 $1.80

Brochure Program Occupancy

N/A 80%

Visitor Information Network Facilitated Conversation

N/A

Occurs by 10/1/11

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DOMESTIC CONSUMER MARKETING

Over the last five years Travel Oregon has seen significant growth in consumer contact/engagement to our marketing programs with responses having more than doubled since 2006 (an increase of 109%). With over 2.1 Million unique visitors to traveloregon.com each year, 21,000 Facebook fans, and 193,327 subscribers to our segmented e-newsletters, we now have more potential travelers than ever before in Travel Oregon’s relationship network. Over the next biennium Consumer Marketing programs in Advertising, PR, Promotions and Digital Marketing will continue to build awareness for Oregon with a focus on deeper relationship building and conversion of our fans, and greater efficiency with our program implementation and resources. An in depth analysis of the visitor purchase cycle—from inspiration, to on the ground, to post trip—will yield innovative and compelling ways to break through message clutter and surprise and delight each consumer we come in contact with. Our marketing efforts will position Travel Oregon as a trusted source for inspiration and trip planning visitors will rely on and recommend to others. Advertising Background: Media Landscape: The media environment is changing rapidly and is more fragmented than ever with consumers

continuing to exert increased control over the media delivered to them

It’s important to efficiently target niche audiences because of premiums charged for these limited-reach impressions. (Note: there are still efficiencies to be gained by purchasing through more traditional, broad reach media.)

Studies indicate that TV and online media continue to dominate consumer media consumption. Per eMarketer, the average time spent per day per channel is:

o Online - 4:30 hours o TV & Video - 3:17 hours o Music & Radio - 1:26 hours o Mobile phone - 1:18 hours

Other media trends: o Mobile: "It is estimated that by 2014 half of Americans’ web browsing will be

done on mobile devices."23 o Online video usage is up 45% over the prior year24 o Social media: travelers are spending more time on social media venues even

while traveling25

23 http://mashable.com/2010/08/19/mobile-advertising-trends/

24 http://blog.nielsen.com/nielsenwire/online_mobile/january-2011-online-video-usage-up-45/

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o People over 65 are adopting Facebook faster than any other age group; 6.5 Million of members 65+ joined in May 2010 alone. Less surprising is that the fastest growing age group on Twitter is 35-49 year olds. Add to this the fastest growing group on Match.com is over 50.

o Over all, 47 percent of 50-64 year olds are using social media; an 88 percent growth from 200926

Advertising Objectives:

Motivate overnight travel to Oregon

Communicate the state’s travel product in a way that elevates it within a crowded category

Continue to grow and strengthen awareness for travel to or within Oregon

Stimulate interest and response for additional information about travel in Oregon (generate leads)

Engage consumers through Travel Oregon’s family of sites, as well as other Travel Oregon branded “outposts”

Targeting:

Our target has evolved to include an International component to our advertising communications

o Adults 25-64 o Spend $1,000+ on vacation travel (per year) o Geotarget

Primary: No. CA, OR, WA, ID

Key business driver markets27

Secondary: So. CA, NY

International: Vancouver BC

Within our demographic target, we’ll look to incorporate psychographic/behavioral segmentation as a way to provide a tighter focus in identifying potential travelers to Oregon—a mix of more adventurous, more curious, and more experience-driven people for whom travel has become a lifestyle.

25 eMarketer How Travelers Use Social Media

26 http://www.adrants.com/2011/02/old-farts-take-over-social-media.php

27 ‘09 Longwoods Visitor Profile Study

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Advertising Program Description: We continue to tie our advertising communications to our focused two pillar strategy that:

Provides a culinary focus during the Fall and positions Oregon as a premier foodie destination. Oregon Bounty anchors this portion of the campaign.

Features Oregon’s outdoor recreation stories during the spring/summer when Oregon can deliver a wide array of outdoor adventure product.

We see the opportunity to weave other priority messages like Arts & Culture, Sustainability, and Scenic Byways to these pillars. And, all of Oregon’s other events, activities, and travel product will continue to be promoted through the agency’s other channels (TravelOregon.com, visitor guide, e-newsletters, PR, etc.). Advantages to this strategy:

Oregon stands out with focused advertising messages

Highlights the state’s greatest assets…within season

Leverages the success of Oregon Bounty by combining promotion with fall brand advertising

Partners can build co-ops around seasonal focus, when consumers are more likely to plan seasonal travel

It is important to note that we are now able to gain traction with a more focused message and more efficient digital channels because of our success establishing the Oregon brand. And we must continue to reinforce that brand’s recognition. As such, the core brand message will remain the heartbeat of our effort for the coming years—and we will look for ways to not simply “send” the brand message—but also create ways for people to interact, engage and share our brand. This “engagement” shift is a critical step in creating a sincere dialogue with consumers to further communicate our value proposition, to build relationships, a strong fan base, and trust.

Regions

Urban Sources of Business The Coast

Willamette Valley

Southern Oregon

Central Oregon

Eastern Oregon

Greater Portland

Mt. Hood/ The Gorge Oregon

Portland 54% 40% 14% 38% 38% 19% 32% 40%

Seattle 6% 6% 10% 14% 7% 25% 13% 13%

Eugene 9% 21% 5% 10% 6% 4% 9%

Medford 6% 17% 5% 5% 5%

Bend 3% 5% 5% 5% 5% 4%

LA 5% 4% 5% 7% 3%

SF 13% 5% 5% 8% 4% 3%

Spokane 3% 4% 4% 3%

Boise 13% 4% 2%

Sacramento 8% 2%

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During the last biennium we refreshed the brand creative and shifted from a print-focused campaign to one that included a heavy mix of online media:

The Market: Travelers taking shorter, closer-to home vacations; planning cycle compression, more online travel planning, social media usage, and a decline in print.

Research: Longwoods Ad Accountability study indicated that being more specific, while maintaining brand positioning/voice, will have positive impact on image & trip generation. Surprise and inspire travelers with actual things they can see and do in a place they think they may already know.

Industry: We felt our Book of Oregon creative had started to show signs of wear as it had been running for five years and we found other advertisers copying our creative.

Creative: Oregon is a refuge for idealism. It’s a place for dreamers. It’s a place with a unique voice, a sense of humor, and a drive to do things differently. It’s a place of authenticity, of intimacy, of stories. While we continue to evolve our advertising messaging, this concept embodied as the Oregon Dreamer continues to be the backbone of our creative body of work. During the Spring 2011 season, we introduced high impact television advertising spots as the foundation creative to our brand campaign:

It allows us to leverage the sight, sound, motion environment of this medium.

The two minute video vignettes that produced for the two pillar campaigns did a great job of rich storytelling. TV allows us to get more eyes on this powerful creative

We’re able to repurpose/reuse our growing library of excellent HD footage, which provides a significant increase in video production value/efficiencies.

We will continue to produce banner ads that complement the TV spots and leverage the retail-nature of the medium to drive consumers to our website.

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Media: Strategic Media Roles:

Different media types are better suited to fulfill different roles in consumers’ travel-making decisions. We will continue to leverage each medium relative to its strength. See the following chart for reference.

We’ve evolved the media plan to include a 50/50 mix of TV and online advertising. Through the

next biennium we will continue to explore this media mix.

Our TV buying strategy gives us the deliveries necessary to provide a strong base layer of exposure within key business driver markets as well as a modest national TV campaign, which allows us to focus our media spend on one high-impact creative format for the campaign

o Local broadcast network TV is used to build a solid foundation of consumer awareness in key markets

o And, the Google TV ad buying platform is an efficient/cost effective tool to supplement the buy with a national layer of “enthusiast” cable networks (e.g., Golf Channel, Discovery, HGTV, Travel Channel)

Online banners, search and dedicated email blasts provide additional reach to help keep Oregon top-of-mind

As the media landscape evolves, we’ll continue to test mediums that show the ability to deliver consumers when they are receptive to a travel message.

SearchTV

INSPIRE – Make an Oregon experience top of mind. INVESTIGATE – Make compelling information about

Oregon travel experiences easily findable.

SHARE – Give visitors motivation to share their

experiences with friends, family, and online communities.

VISIT – While they’re visiting, enhance their experience

in helpful and surprising ways.

Ask Oregon

Social Media PR: Campaigns & Promotions

PR: Media/Blogger Relations

Mobile

TO Social Media

TravelOregon.com

Banner Ads Digital Magazine/Enews

Printed Visitor Guide

Call Center

Paid Media TO Channels

Note: location of channels are representative of some of the primary rolls they fulfill (chart is not comprehensive)

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Note: while our advertising strategy has shifted, we are aware of the role for print advertising and its value to our and our partners’ marketing efforts and we’ll continue to look at print co-op advertising opportunities. Key Measurements

Advertising Results 2009-2011 Goal 2011-2013

Maintain Average Cost/Inquiry* $0.64 (based on FY

'09-'10)**

$0.64

Advertising: Increase Total Inquiries* 9% 2.29 Million (per

year, based on FY

'09-'10)

2.50 Million (avg.

per year)

Reduce Cost to Generate Trip 5% $1.14 (based on '08

Longwoods Ad

Accountability

study)

$1.08 (to be based

on '12 Longwoods

Ad Accountability

study, est. final

report May 2014)

Increase ROI in Expenditures 5% $193 (based on '08

Longwoods Ad

Accountability

study)

$203 (to be based

on '12 Longwoods

Ad Accountability

study, est. final

report May 2014)

Reduce Cost Per Click 5% (online

advertising)

$2.90 $2.76

*Avg. inquiries per year (Response Rates) currently includes BRC's, phone inquiries, TravelOregon.com, Blog, GoSeeOregon.com, RideOregonRide.com, Food + Drink site, Kids Site (TO investigating inclusion of other key TO branded "outpost" like Facebook, YouTube) ** FY 2010/2011 data not complete

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Advertising/Partnering Opportunities Background: Travel Oregon develops partner marketing programs that:

Expose partner messages to an engaged, targeted audience that is more likely to travel to Oregon and purchase local tourism-related products/services

Allow local partners to take advantage of our negotiated advertising pricing to promote their tourism products at discounted rates (usually below the listed media rate)

Help increase Oregon’s total travel industry advertising share of voice within marketing channels that Travel Oregon uses

In the past, we offered more traditional print-based, templated co-op inserts that ran within our print-based brand campaign. As our advertising campaigns have evolved to reflect a changing media landscape (more fragmented with consumers exerting more control over the media they consume) so too have our partner opportunities:

We encourage partners to purchase ad space with the expanding Travel Oregon Ad Network

We now also provide an online advertising option (based on our media buys)

We’ve developed a new, innovative social media marketing program Description: Travel Oregon Ad Network: The majority our advertising efforts drive consumers to our family of sites where they can learn about the unique travel experiences that Oregon has to offer. Partners have the opportunity to promote their travel product to the engaged consumers who visit or request Oregon-related content/information from Travel Oregon. We’ve seen results from Travel Oregon’s online ad network that, on average, are almost 10 times better than the industry standard (0.88% click thru vs. 0.09%). Advertising opportunities are available in the following:

TravelOregon.com

Travel Oregon E-Newsletters

Travel Oregon Interactive Magazine

Travel Oregon Annual Visitor Guide Banner Ad Co-ops: Travel Oregon is able to offer a limited number of industry partners the opportunity to purchase banner ad space based on our campaign media buy. Partners can buy online ad space at our reduced rate through our ad agency, which allows partner creative to be rotated along with Travel Oregon’s banner ads. Facebook Co-ops: We have worked with Sparkloft Media to develop a new, innovative co-op marketing program that allows us to increase the Oregon presence on Facebook. The promotion provides a direct link between Travel Oregon’s Facebook marketing and a limited

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number of our partners’ Facebook pages to increase the number of fans/leads of all the participants. Key elements include:

Hyper targeted ad buys on Facebook to key demographics

Ads link to custom tabs created for each participant’s Facebook page with key messaging themes based on Travel Oregon’s two pillar campaigns

A Facebook contest with giveaway packages provided by our partners Print Coops: While Travel Oregon’s media mix more heavily utilizes broadcast and on-line channels, we are aware of the solid role for print advertising and it’s value to our partners’ marketing efforts. Because of this, we have continued to support print-based special advertising inserts that help promote participating partners’ marketing efforts while also our enhancing our marketing programs Key Measurements

Advertising/Partner Opportunities

Results 2010*

Goal 2011-13**

Advertising/Partner Opportunities: Ad

Network - Increase Ad Revenue by 16%

(from '10)

$654,780 (based on

CY 2010 contract

period)

$760,547 (avg. per

year)

*Contract and revenue measurement set up on calendar year **Average revenue per year

Industry Brand Development & Support Description: The Travel Oregon brand strategy team works with destination marketing organizations and tourism businesses to help develop brand campaigns that leverage the overall state brand work in the areas of strategy, creative messaging and media planning. This may be as comprehensive as an entire brand overhaul, as we have done with the Oregon Coast or Eastern Oregon, or working with a Travel Oregon Matching Grant recipient. Scenic Byways Marketing Background: 2009 Grant Period: Travel Oregon was awarded a $313,000 National Scenic Byways grant to build a Scenic Byways Roadtrip microsite, companion iPhone app, and an integrated marketing campaign to inspire consumers to use mapping to show both Byway-related services (gas stations etc.) and general Travel Oregon data (lodging, dining, etc.) that are close to the user’s location. We received approval to push the grant period, to be completed in the second half of 2011.

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2010 Grant Period: Travel Oregon applied for a National Scenic Byways grant in 2010 to promote the scenic byways microsite and iPhone app that will be created by the 2009 grant. We are waiting for direction from FHWA regarding the acceptance of our 2010 application. 2011 Grant Period: Moving forward, FHWA has recommended a collaborative approach to grant writing between Travel Oregon and local tourism entities to emphasize partnerships and large scale projects. This approach provides the greatest strategic value for the program. Description: Over this biennium, we’ll execute the 2009 grant, which includes the following elements:

Build the online Scenic Byway trip planning guide

Build a companion mobile application

Launch an integrated marketing campaign supporting both the online trip planner and the mobile app

Key Measurements: We will develop measureable outcomes for each grant as it is approved by the FHWA as part of the overall marketing plan for this project. Consumer Trade Shows Background: Direct engagement with consumers is becoming increasingly important. As travelers seek authentic experiences, it’s crucial to gain their trust as they hunt for information and guidance. Participation in key market trade shows is a way to build relationships with potential travelers by interacting with them and answering their questions face-to-face. Description:

Travel Oregon will work with our partners to develop a unified Oregon presence at trade shows in which a critical mass of Oregon partners who choose to participate

We will survey our partners each year to determine which shows garner the most interest

Based on partner interest, we will establish which trade show/markets are the most lucrative for Oregon as a whole and agree on the show(s) in which we will participate

Travel Oregon will: negotiate fees to have booths together; facilitate communication among participating partners; provide lead cards to be filled out at shows; and supply coordinating backdrops when schedule allows

Key Measurements: The goal is to attend two to three trade shows in key markets. By engaging consumers directly, we will gain a deeper understanding of their needs. We will measure success at trade shows by:

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Leads generated

Estimated exposure of the Oregon brand by measuring overall attendance at trade show Consumer Promotions/Sponsorships Background: The consumer promotions and sponsorships that Travel Oregon pursues and supports have taken many forms and vary in their tactical objectives. The common strategy for this program area, whether it’s forming strategic partnerships or the creation and execution of our own promotional campaigns, is to leverage existing resources to achieve our core goals. Description: Tactics within this program area may take the form of hosted or sponsored events; retail oriented promotions with Oregon manufactured and agricultural products; broadcast productions; cooperative promotions with businesses that have complimentary goals and similar brand values and grant writing and execution to name a few. This program area represents untapped revenue and exposure that could be taken advantage of this biennium with additional resources to better leverage existing programs and strategic partnerships while pursuing targeted new ones. Key Measurements: Varied depending on the program and partner:

Increase earned and paid media exposure (e.g. $25,000 from Best Western)

Secure added value for campaigns (e.g. tickets from Alaska Airlines)

Secure additional targeted grants (ODA, other) TravelOregon.com Background: The goal of our interactive marketing program is to engage in a conversation with consumers and provide inspiration, information and tools for their Oregon vacation. TravelOregon.com is the anchor of our digital ecosystem and engages with consumers through multiple spokes—social influence marketing, e-mail marketing, display/search advertising, niche sites and third party outposts. At the end of the day, our digital efforts strive to inspire travelers to visit Oregon and share their experiences with friends and family.

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Travel Oregon’s digital ecosystem

While online travel research, planning, bookings and reviews have become industry mainstays over the last decade, the rapid adoption of social media has precipitously increased the ability of consumers to connect, “take charge” and get what they need—information, support, ideas, products and bargaining power—from like-minded individuals. In addition, with mobile penetration in the U.S. at nearly 80% and rising sophistication of devices, has yielded a mature mobile market open to receiving highly relevant information, deals and offers to travelers during the travel and in destination.

Nearly 93 Million U.S. adults used the Internet to plan travel in 201028

In terms of trip planning, 42.9% used user-generated content, 26.2% used social media and 28% used a mobile device to plan their trip29

Travelers who have used destinations sites such as TravelOregon.com are more inclined to rank them as “the most useful type of travel” site for researching a vacation destination; moreover, these travelers use destination sites at similar rates both before and after making a travel purchase (hotel, air, car etc.) suggesting consumers’ reliance during both the inspiration/research and the itinerary planning stage30

28 Travelers’ Use of the Internet. U.S. TraveL, 2010

29 State of the American Traveler Report. Destination Analysts, 2010

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Description: The objective of TravelOregon.com is to be the trusted resource for Oregon travel inspiration and trip information. In order to meet shifting traveler needs and technology changes, we have started a ground up overhaul of the TravelOregon.com site to create a “best in class” destination platform that brings the Oregon experience to life in surprising and delightful ways:

Communicate with consumers during every step of their vacation planning process--from dreaming about where they’d like to go, to trip planning and procurement, to how they’re greeted and assisted when they’re here

Facilitate the gathering of personal and relevant Oregon experiences to create successful trips that are highly anticipated and fondly remembered

Serve up content personalized to each visitor and allow the visitor to engage with us from any device and along every point of their trip planning stage —consideration to research and while they are “on the ground” to after they’ve returned home

Not only tell the Oregon story but also allow the visitor to share their stories with us in relevant and meaningful ways

Key Measurements

TravelOregon.com Results 2009-11 Goal 2011-13

Overall Reach for digital platforms (Visitation)

2.2 Million Increase by 10% to 2.42 Million

Time on Site 6.72 minutes

Maintain

Overall engagement 11.24%

Increase to 15%

Ask Oregon Background: The “Ask Oregon” program is a strategy to deliver visitor information to travelers by connecting them to passionate Oregonians using multiple touch points including TravelOregon.com, Facebook, Twitter, our call center, Trip Advisor, & Visitor Centers. The program was created to humanize the online trip planning experience to provide visitors with exceptional customer service as they embark on their Oregon vacation experience.

The adage of your “existing customer is your best customer” is true; and, we know that with social media, customers can easily share their travel experiences with Millions

Recent studies by Forrester show that travelers are increasingly frustrated by the “clinical and intimidating” experience afforded by online trip planning sites. For the first

30 Destination Marketing – Understanding the Role & Impact of Destination Marketers. PhoCusWright, 2009

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three months of 2010, 28% of leisure travelers in the U.S. who booked their trips online said they'd be interested in going to a good traditional travel agent. That's up from 23% in 2008. In addition, the number of leisure travelers who enjoyed using the Web to plan and book their vacations dropped to 46% last year, down from 53% in 2007.

Description: Through “Ask Oregon,” potential visitors to the state will be able to get answers to travel related questions from “subject matter-experts” living in Oregon—the Oregon Experts (OEs). These passionate Oregonians will be able to connect to visitors through social media tools such as Twitter, the Travel Oregon blog, Facebook etc. Oregon Experts will be recruited from partners such as:

Travel Oregon staff/volunteers

Staff of relevant contractors (Co-Operations, GoSeeTell etc.)

Welcome Center staff

Regional DMO staff

Bloggers and residents who have deep knowledge about relevant themes

Key Measurements

Ask Oregon Results 2009-11 Goal 2011-13

Number of experts recruited New Create Baseline year 1; increase by 10% year 2

Number of questions answered New Create Baseline year 1; increase by 10% year 2

Increase of Travel Oregon brand awareness in social channels

New Create Baseline year 1; increase by 10% year 2

Travel Oregon’s Tourism Data Platform - The Orb Background: The concept for the “orb” has been nurtured for a number of years at Travel Oregon as it became clear there was a need for a robust data sharing and distribution platform for tourism in Oregon. Maintaining the latest information about Oregon’s myriad tourism assets was becoming a monumental and inefficient task because Travel Oregon staff and partners were spending many hours manually updating the same content in many different places.

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The platform was launched in January 2009 and our data partners include DMOs and statewide trade associations such as Oregon Restaurant & Lodging Association (ORLA), Oregon Wine Board (OWB), Oregon Brewers Guild (OBG) and the Oregon Outdoor Guide Association (OOGA). This web based platform is a rich collection of Oregon’s tourism assets that are assembled collectively and distributed across multiple publishing platforms (web, mobile, etc.). Data sets that will be available by Summer of 2011 include attractions, events, deals, places to stay, restaurants, farmers’ markets, outdoor trails, rivers, and photo. Each record will contain not only demographic information but also geo-location information so that content will be accessible through mapping and itinerary planning tools. Description: With development concluded, the focus for 2011-2013, will include:

Continuing to integrate new data tourism data partners

Ongoing training, support and integration for DMOs who use the platform for storing and syndicating data

Distribution and white label programs for third parties who wish to use the platform Key Measurements

TravelOregon.com Results 2009-11 Goal 2011-13

Data partners 13 data partners (10 active DMO’s, 3 statewide trade organizations)

Double participating DMOs; explore other possible trade associations

Training/Support 10 DMO training sessions

Double training sessions

Distribution partners (sites other than TO) 2 Increase to 10

Travel Oregon Social Channels Background: Social media has forever changed the notion of travel. A journey can be planned, followed, and commented upon in real time. The community with whom we share our travels has expanded from immediate friends and family to a wider circle of LinkedIn contacts, Twitter followers, Facebook friends and YouTube viewers. Harnessing the power of conversations about Oregon and using the network of peers has been a constant thread in our interactive efforts since late 2006 with the launch of our blog and GoSeeOregon.com. Over the past two years, we have created outposts for communities on Facebook, Twitter, YouTube, Flickr, & TripAdvisor.

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Description: Travel Oregon’s social media outposts serve as the “connective tissue” for our digital ecosystem that empowers travelers and passionate Oregonians. Our 2011-2013 efforts in the social space will include:

Engagement and support: o Interacting and connecting with potential travelers and Oregon fans on multiple

platforms o Actively helping travelers plan their trips via “Ask Oregon” platform

Storytelling: o Content distribution platform for Oregon stories o Soliciting fan stories

Boosting: o Amplifying the voices of Oregon advocates by giving them platforms and/or

deputizing them as “Ask Oregon” ambassadors o Using real traveler stories as content

Key Measurements: Social media is constantly shifting, so our general philosophy in evaluating effectiveness is based on these key attributes:

Does it increase “Brand Awareness”?

Does it increase the desire for “information fulfillment”, either on the Internet, or through our printed literature?

The channels we plan to measure and benchmark are outlined below. Due to the pace of change in the industry, it is conceivable that where we engage travelers and how we engage them might change rapidly. As such, what we measure could very well change within a matter of months.

Social Media Measurement Results 2009-11 Goal 2011-13

Facebook Fans/Likes: 20,878 Engagement: 0.34% average

41,756 Maintain

Twitter Followers: 8363 RTs/Clicks – TBD

20,000 TBD

YouTube 3223 views/month

6,446

Foursquare Followers: 180 Tips Viewed (TBD)

1,000 (TBD)

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National Media Relations Background: The national media relations program is focused on building and fostering key relationships with influential journalists that ultimately result in media coverage. Our annual audit of travel writers and editors reinforced that they are interested in hearing from Travel Oregon about new attractions and “under-the-radar” stories relating to larger trends; they also appreciate our method of periodically suggesting a number of new and offbeat story angles via “Oregon Oddities” and “What’s New.” As media outlets cut budgets, they are relying heavily on freelancers. So we will shift our outreach emphasis from working with editors and staff writers to building relationships with and hosting highly qualified freelancers who may represent multiple outlets. Description: Generate media coverage that inspires experience-hungry travelers to visit Oregon. Serving as a media resource, we proactively pitch stories to targeted, receptive travel, food and outdoor writers to keep Oregon top of mind. We also respond to opportunistic inquiries. Integrating predefined topics provided by regional destination marketing organizations (RDMOs) to Travel Oregon’s content plan, we write and distribute quarterly media e-newsletters to our broad database of contacts, casting a wide net of potential coverage. To build relationships with highly qualified freelancers, we’ll develop pitches that meet their outlet’s interests and host writers for travel experiences as publication guidelines allow. In FY 11-12 we’ll return to do a New York City media tour/event to re-establish our media relationships and make new contacts. We’ll meet with national travel writers, bring Oregon’s culinary and adventure scene to life, discuss editorial needs and pitch story angles. Key Measurements

National Media Relations: Influenced Coverage

FY10-11 FY11-12

Goal FY12-13

Goal

Print Circulation (Millions) 287 300 300

Online Circulation (Millions) 638 800 900

# Print Stories 178 180 180

# Online Stories 170 250 300

Qualitative Analysis: Word Cloud Trending Most important in guiding our National Media Relations program is understanding and then influencing what people say and believe about Oregon. Beginning in 2011, the PR team will pull monthly “word cloud” trend reports from our clip service. The reports indicate which keywords

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trend toward highest usage among coverage of Oregon. When these trending keywords match our messaging, we can consider our outreach to have been effective. When they don’t match, we’ll learn what topics are top of mind for Oregon writers and visitors and modify our messages accordingly. For example, words such as “wine,” “chef,” “beer,” “mushrooms,” etc. would indicate successful adoption of our messaging by media and consumers around the Oregon Bounty campaign period. Word Cloud Analysis will be reported quarterly and at year end, in three categories:

Traditional Media (print and online editions)

Blogs

Social media Goal: Primary topics relate to our messaging. Content Publishing Background: Last biennium we transformed the way we publish visitor information. Learning that the majority of people plan their trips online, and with social media and mobile devices coming into common usage, we made wholesale changes in how we delivered travel information to stay connected with consumers in these new environments. We took our print magazine online, and not just as a .pdf flipbook. We made it interactive to accommodate the unique behavior travel planners exhibit when viewing information online. We’re publishing shorter stories with more frequency, and telling them in a variety of media (video, audio, and slideshows) to suit readers’ preferences. And it’s working: on average, website visitors to our magazine spend 11 minutes per visit. That’s unprecedented for TravelOregon.com, and it ranks high for web pages in general. Our readers want content that is customized to their interests, so we created two new e-newsletters, one for culinary travel and another for outdoor recreation, emphasizing our two-pillar approach and providing the content these consumers want. It’s building loyalty. While our readership is smaller for the niche content, click-through rates—for our content and our advertisers—is significantly higher. Consider:

Average click rates for our niche e-newsletters are 15%—nearly three times that of our general e-newsletter

Average read rates are 46% for the outdoors edition; 44% for culinary edition—more than double the read rate for the general e-newsletter

Partner Advertising continues to perform above average; even small space text/photo ads at the bottom of each edition received a nearly 3% click rate

The “content plan” we launched in 2010 allows us to receive recommendations from partners, consolidate compatible topics, match across our marketing programs, and share an integrated, multi-dimensional message efficiently across platforms.

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The content plan allows us to be responsive to regional partner needs. Understanding their priorities and challenges, we can support them in areas they just don’t have the bandwidth to communicate. We help cut through the clutter, and with our Travel Oregon Ad Network, we offer partners a highly customizable—and affordable—means for marketing their destinations. Description:

Create a “Content ORB” online tool for DMOs to submit story ideas for our myriad content vehicles. This tool would feed our editorial meetings and be infinitely searchable by region, attraction, topic, etc. It tracks use of the idea, for both staff and the DMO, and advises how that story has been employed.

Conduct our annual RDMO tour with PR and editorial staff. Gather content ideas for the year, review local plans for marketing and media outreach, and offer localized advice on PR and content development. The tour invites RDMOs to prioritize regional topics and align them with Travel Oregon’s initiatives for maximum collective impact. With guidance from us in the form of sample questions and format, they set the local meeting agendas to meet their partners’ needs. Together they pitch story ideas for inclusion in Travel Oregon’s myriad content vehicles.

Create a Content Plan for 2011 and 2012 that aligns Travel Oregon marketing communications and incorporates regional suggestions and strategic focus gleaned from the Content ORB and RDMO tour.

We’ll continue publishing our annual Official Visitors Guide, used extensively in visitor centers and across the state to inform travelers on the ground. As online planning increases, our print guide inquiries are decreasing (see Fulfillment program section), but we know the print format continues to be of value to advertisers: Visitors Guide ad sales increased in 2010 despite introduction of online options. So we will work to bridge the widening gap between print and digital readers for our advertising partners. We’ll expand our print distribution network to maintain circulation, while we look for new tools that integrate the mobile trip planning experience with the print guide (such as QR codes, which when photographed by a mobile user, launches a browser directly to online detail).

Our Travel Oregon Magazine content will continue to transform with the design of our new website. The new site allows us to move this beloved content from the “back shed” of TravelOregon.com to the front foyer, where we can inspire every single web visitor with this rich content, and not just our self-selecting subscribers.

E-Newsletters: E-mail continues to be our marketing workhorse. According to e-marketer, 87% of internet users checked personal email daily in 2010, a number that has changed little since 2007. In 2011-13, we’ll continue to publish our general travel e-newsletter along with niche e-newsletters. As TravelOregon.com evolves over the next biennium and our CRM platform is launched, we’ll also start integrating triggered e-newsletters designed to give consumers control over when and how often they receive communications from us.

Grant’s Getaways: The Grant’s Getaways broadcast and web franchise with KGW/NWCN continues to be a success in terms of both outdoor content generation and

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viewer impressions. The program was renewed for a third season in 2010 during which time we reached more than 6 Million viewers (both online and broadcast). Grant’s Getaways is produced in association with state agency partners Oregon Department of Fish & Wildlife, Oregon State Parks, and Oregon State Marine Board and has showcased outdoor recreation opportunities through more than 100 episodes in all seven regions of Oregon.

Travel Oregon supports ODOT with production of the two year state map. Key Measurements

Content Plan Measurables Results 2009-11 Goal 2011-13

Travel Oregon Magazine 3,949 subscribers Grow to 10,000

Travel Oregon Magazine Time on site: 10.3 minutes

Maintain

Travel Oregon E-newsletter Subscribers 130,000 subscribers Grow to 162,500

Travel Oregon E-newsletter click rate 4.21% Grow to 5%

Culinary E-newsletter 18,468 Grow to 75,000

Outdoor E-newsletter 9,944 Grow to 50,000

Food + Outdoor E-newsletter click rate 15% Maintain

Broadcast partnership KGW & NWCN Maintain

Content/Financial partners Oregon Department of Fish & Wildlife, Oregon State Parks, and Oregon State Marine Board

Maintain

Overall impressions (web + online) 6 Million

Grow to 6.5 Million

Fulfillment Background: Travel Oregon’s fulfillment program provides visitor information to Oregon travelers in a timely and professional manner. Consumer behavior over the past two years has changed; overall we’ve seen a 14% decline in publication requests from the website, 1-800 number, and reader response cards for print publications offered by us. This decrease is expected considering consumers’ preferential shift toward digital content, but it’s a trend we’re monitoring closely so we can adjust our strategy when needed.

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Description: Travel Oregon will continue to fulfill consumer requests for printed collateral. While consumer requests have declined, we still need a printed guide for visitors, whether they are just starting the trip planning process or are already here. The current Travel Oregon Online Leads (TOOL) system will be updated to be even more effective at delivering leads to partners. We will make upgrades to the system to allow tourism related businesses around the state to reach consumers who have already indicated an interest in Oregon destinations. The goal is to produce a highly utilized program that in turn serves as a valuable resource for industry partners. The Travel Oregon Regional Pack (TORP) allows RDMOs and statewide industry partners to distribute their printed visitor guides through Travel Oregon’s distribution channels. Key Measurements

Fulfillment Results 2009-2010 Goal 2011-13

Consumer Inquiries 135,635 Maintain volume

TOOL Users 10-20 Increase by 50%

TOOL Leads Distributed 1,872,480

Increase by 40%

Overall Inquiry Orders

0

2000

4000

6000

8000

10000

12000

14000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010

2009

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In year one, we will implement upgrades to TOOL. In year two, we will assess the number of TOOL users and survey users to determine the effectiveness of the program. TORP success will be measured by continued participation in the program by RDMOs. Consumer Relationship Management (CRM) Background: Over the last five years Travel Oregon has grown consumer response to our marketing initiatives by 155%. Additionally, more consumers then ever before have asked to receive information from Travel Oregon on a regular basis. Whether it’s our 2 Million unique visitors, 155,000 e-news subscribers, 21,000 Facebook fans, or 8,000 Twitter followers, these consumers represent an opportunity currently not tapped to its potential. Over the next biennium we expect to see more modest growth in overall consumer response along with an increase in consumer engagement. A robust CRM program will enable us to better leverage and convert these consumer segments that represent very low hanging fruit. Description: Over the next biennium we will develop a CRM program that will increase our understanding of these consumer segments. What type of content do they prefer and in what format? What is their propensity to travel to Oregon? What is their likelihood of sharing their travel experiences? What demographic and psychographic differences do we see between these customer segments? This deeper understanding will enable us to:

Optimize content delivery

Track conversion by segments

Prioritize agency resources

Surprise & delight consumers through customer service

Improve advertising targeting

Develop new opportunities for fans to tell their Oregon travel stories

Identify new opportunities to engage with consumers from inspiration to post trip Key Measurements: The first step in the development of a CRM program will be to centralize and analyze our existing consumer segments. This deeper understanding will drive decisions around how to best deliver the brand promise to consumers with personalized, best in class service. Potential metrics include conversion/trip generation, propensity to travel, consumer engagement and content pass along. Year one of this program will be devoted to analyzing consumer segments with recommendations from this analysis to be implemented in year two.

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INTERNATIONAL MARKETING AND SALES/DOMESTIC TRAVEL TRADE

ALL MARKETS The U.S. Department of Commerce projected a 9% growth in international travel to the United States in 2010, followed by six-to-nine percent annual increases through 2015. International arrivals will reach almost 83 Million, an increase of 51% from 2009 to 2015. Travel Oregon is tracking and projecting similar percentage increases based on the Oregon VisaVue® extrapolated data. Travel Oregon targets the key markets of Canada, Japan, United Kingdom, Germany, France and the Netherlands, working with the travel trade and media to develop tour operator product and promote these products through special promotions to consumers, including social media and online campaigns. The emerging markets of Scandinavia, Australia and China have all demonstrated consistent growth. China had a 60% increase in 2010 over 2009 and targeting niche tour operators and media promoting Oregon as a tax free shopping destination will be a key strategy for this market. New product in the Australia and Scandinavia markets is being developed, with a focus on winter and shoulder season. The Domestic Travel Trade market is stable, with opportunities to grow product in the niche markets of intergenerational and special event group travel. Travel Oregon's key strategies for the International and Domestic Travel Trade markets are attending Trade shows, Sales Missions and hosting both tour operators and media on research tours from all key and emerging markets. We will continue to leverage our innovative social media strategies, working with tour operators to help promote Oregon product with limited investment that provides maximum exposure. Examples of these efforts include, Oregon Tabs on tour operator Facebook pages with videos that promote all regions of the state, hosting influencer blogger research tours to promote authentic Oregon experiences and co-ops with regional partners to develop new itineraries, working with tour operators that specialize in west coast product. Pow Wow

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Background: Travel Oregon attends POW WOW, the travel industry's premier international marketplace and the largest generator of Visit USA travel. At International POW WOW, buyers and sellers are able to conduct business that would otherwise be generated only through an exhaustive number of around-the-world trips. Description: In three days of intensive pre-scheduled business appointments, suppliers meet with buyers and media from more than 70 countries and conduct business negotiations that result in the generation of over $3.5 billion in future Visit USA travel. Travel Oregon sponsors four booths with ten partners from around the state; appointments are held with over 200 tour operators and media. Key Measurement: More than 250 leads will be generated from this show and distributed through the RDMOs and will result in significant ROI opportunities for the Oregon Tourism Industry statewide.

VisaVue®

Background: In June of 2009, VisaVue® announced they were launching a comprehensive program that would help state tourism offices track business and leisure international travel using extrapolated figures along with Visa cardholder information. VisaVue® provided annual data for 2007, 2008, and in 2009 started providing data quarterly. The last quarter of 2010 will be reported in March and will allow Travel Oregon to compare 2009 and 2010 data quarter by quarter. Previously to 2009, Travel Oregon was only able to make assumptions based on national tourism numbers provided by the Office of Travel Tourism Industries. Description: VisaVue® tracks actual cardholder spending by state and by country and by spending category. Because the information cannot be reported in its raw form, data is extrapolated with other visitor statistics. Key Measurement: Travel Oregon will continue to measure the top 13 international markets for trends and market strategies. The goal is to increase key markets on average by 5% annually.

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Program Name Results

2007

Results

2008

Results

2009

Results

2010

Goals 2011-2013

Canada 1,132,000 1,060,000 1,084,000 1,159,000 Increase by 5% per year

Japan 57,000 52,000 48,000 49,000 Maintain

UK 48,000 41,000 35,000 38,000 Increase by 2% per year

Germany 40,000 36,000 31,000 32,000 Increase by 3% per year

Australia 35,000 32,000 32,000 36,000 Increase by 9% per year

Korea 25,000 22,000 18,000 24,000 Increase by 3% per year

Scandinavia 25,000 25,000 23,000 24,000 Increase by 5% per year

Mexico 14,000 13,000 10,000 12,000 N/A

France 12,000 13,000 12,000 12,000 Increase by 3% per year

Taiwan 10,000 9,000 7,000 9,000 N/A

China 10,000 11,000 13,000 19,000 Increase by 10% per year

Benelux 8,000 8,000 7,000 7,000 Increase by 3% per year

Italy 8,000 8,000 7,000 6,000 N/A

Total 1,424,000 1,329,000 1,324,000 1,424,000 Average 6% increase

Total All 1,584,000 1,487,000 1,477,000 1,641,000

(Travel Oregon estimates are based on and extrapolated from aggregate card usage data provided by VisaVue® Travel. They incorporate data from other independent research sources. Spending amounts and patterns are based on face-to-face Visa card transactions in Oregon. Transactions utilizing cash, pre-paid, phone, internet and other credit/debit cards are not included. Conversion factors are used to extrapolate arrivals, but spending per visitor is in its raw form (only Visa card purchases). Amounts on the sheet are rounded, with associated rounding errors. All calculations are done on un-rounded data.)

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International Travel Guides

Background: The international department has provided international travel guides in earlier years for just Germany and Japan. The newest international travel guide will reflect the refreshed Travel Oregon brand elements and leverage content from the domestic visitor guide. Translated guides will be offered in German, French, and Japanese. Description: Translated travel guides will provide information on all seven regions with content on accommodations, restaurants, wineries, and attractions. Itinerary suggestions for each region by theme will also be included. 10,000 English guides distributed in the UK, Benelux, Canada, and US. 5,000 Japanese guides, 5,000 German guides, and 5,000 French guides distributed in country. Key Measurements: Distribution is tracked through international contractor’s offices. International Seminars Background: The international department has offered international seminars across the state. In the past, the seminars were offered as part of the Western States Tourism Policy Council grant funding. After the grant funding ended in 2006, the international department continued offering two regional seminars per year. For 2011, the department will offer two regional seminars. Description: International seminars provide direct interaction with tourism partners explaining the international and domestic travel trade programs and ways to participate. The seminars provide insight on how to have product listed in tour operator catalogs, negotiating contracts and participating in research trips to host travel trade and media. Key Measurements: Hosting two regional seminars per year.

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EUROPE PR/Media Program Background: In country representatives target travel trade and consumer media to promote Oregon editorial by inviting them on press research trips, distributing new releases and meeting with them at key trade shows. Description: Leverage media relationships to continue getting coverage from journalists who have visited Oregon and also increase web articles. Oregon's resources will be split between National and Regional media as well as niche publications with smaller distribution. Key Measurements: The media impressions will increase by 3% year over year.

Program Name Results 2009-2010 Goals 2011-2013

Media Clippings: the

United Kingdom

$66,384,687 Increase by 3%

Media Clippings:

Germany

$6,888,229 Increase by 3%

Media Clippings: France $828,761 Increase by 3%

Media Clippings: The

Netherlands

$4,787,285 Increase by 3%

Media Clippings:

Scandinavia

New Increase by 3%

Trade Shows, Sales Mission and Research Tours Background: Travel Oregon will attend Travel Trade Shows, sales missions and host research trips in and from key markets of Germany, UK, France, Netherlands and Scandinavia. All of these activities offer Travel Oregon and their partners opportunities to meet with tour operators and travel

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agencies. Hosting qualified travel industry professionals generates tour products and maximizes opportunities to promote Oregon’s key attributes.

Description:

Travel Trade shows for 2011-2013 are as follows.

ITB

WTM World Travel Mart

Go West Summit

NAJ North American Journey

Visit USA Shows

Sales Missions in alternating years

Key Measurements: Travel Oregon distributes qualified leads to regional partners.

Program Name Results 2009-2011 Goals 2011-2013

Trade Shows: WTM 2010 67 Leads 75 Leads

Trade Shows: ITB 211 Leads 250 Leads

Trade Shows: Go West

2010 and 2011

70 Leads 100 Leads

Trade Shows: NAJ 2010

and 2011

76 Leads 80 Leads

Sales Missions 2 Missions 2 Missions

Research Trips 45 Research Trips 45 Research Trips

Social Media

Background: Currently, 85 Million consumers in Travel Oregon’s key international target markets are using Facebook as their social networking platform. In the past biennium, Oregon launched this promotion and was the first state DMO to do so. Oregon has seven “Oregon tabs” on European tour operator Facebook accounts.

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Description: Travel Oregon will create Facebook accounts in all key European markets: Germany, the United Kingdom, Scandinavia, Holland, and France. With strategic and targeted advertising and special sweepstakes in each market, Travel Oregon will continue to grow Twitter presence in the Europe markets to increase awareness and media stories about Oregon as a leisure destination. Tour Operator Social Media Partnerships will continue to be developed through the promotion of Oregon Tabs and mini-sites on Tour Operator Facebook Profile pages. Key Measurements: A benchmark has been established for the in country Twitter accounts. The goal is to increase followers by 10% annually. “Oregon tabs” on tour operator Facebook accounts will be increased to 20. Adventure videos from around the state are featured on the tabs with links to hotels and attractions on the tour operator’s websites. Five additional videos will be created from regions around the state. Oregon will go from 0 to 1000 likes in the next two years on in country Facebook pages.

Program Name Results 2009-2011 Goals 2011-2013

Facebook Accounts in

Germany

New 1000 Likes

Facebook Accounts in the

United Kingdom

New 1000 Likes

Facebook Accounts in

Scandinavia

New 500 Likes

Facebook Accounts in The

Netherlands

New 500 Likes

Facebook Accounts in

France

New 500 Likes

Twitter Friends: Germany,

Netherlands, UK, France

614 Increase friends by 5%

Followers: Germany,

Netherlands, UK, France

686 1000

Oregon Tabs on Facebook 7 Oregon Tabs 20 Oregon Tabs

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Tour Operator Special Promotions Background: Travel Oregon has promoted Oregon through special promotions with key tour operators. Currently there is opportunity to grow shoulder season product, with an emphasis on winter. We’ll continue to promote the Delta non-stop Amsterdam to Portland flight with a focus on quick and easy access to an affordable, diverse, new destination. Description: Ski Packages with Targeted European Tour Operators: The ski packages for Oregon will not only include skiing or snowboarding but also such winter activities as snow shoeing, dog sledding, snowmobiling, wine tasting, and tax free shopping. The targeted tour operators are Jan Doets (The Netherlands), Explorer Fernreisen (Germany), STA (the United Kingdom) and Go West (Sweden). The targeted receptive tour operator to contract with Mt Bachelor and Mt Hood is America 4 You.

Key Measurement: Increase Ski Product to three new itineraries in all markets.

Program Name Results 2009-2011 Goals 2011-2013

Winter/shoulder season product: Germany

New Increase by 3 products

Winter/shoulder season product: the United Kingdom

New Increase by 3 products

Winter/shoulder season: France

New Increase by 3 products

Winter/shoulder season: The Netherlands

New Increase by 3 products

Winter/shoulder season: Scandinavia

New Increase by 3 products

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Scandinavia

Background: Scandinavia is a new emerging market for Travel Oregon. VisaVue® as well as media interest and looking at California and Washington that have Scandinavia as their number one market, led us to add Scandinavia to our European target markets. Description: Travel Oregon will add Oregon packages & itineraries and create demand with media. Also, Travel Oregon will provide online training program for travel agents using the Oregon “Experts” model. We’ll also focus on special promotions to travel trade to learn about Oregon with competitions and co-ops with KLM and newsletter distribution. Key Measurements: The “Experts” program will train approximately 600 agents. The educational programs, trade shows, consumer shows, and research tours will develop fly drive and FIT (free independent traveler) product in 20 tour operator catalogues in the next two years.

Program Name Results 2009-2011 Goals 2011-2013

Scandinavia: online training programs

New 600 participants

Scandinavia: product in tour operator catalogs

New 20 products

Brand Affinity Partner Campaigns Background: Brand Affinity marketing campaigns offer opportunities for sustained campaigns to target demographics providing online, in store and direct mail opportunities. The return is typically 25:1. Description:

Brand Kiss: this is a destination and brand marketing specialist that will put Travel Oregon in front of new audiences by leveraging partnerships with trusted household name consumer brands in the UK.

Columbia Sportswear: Present Oregon as a travel destination through an Oregon company that is recognized world wide for outdoor enthusiasts. Host events in Frankfurt and London. Invite high end consumers and media partnering with tour operators who will invite their top clients and media.

Promotion Cards: In Germany, a new trend for Travel Companies is to use “promotion cards” to show their products in restaurants and bars at nominal costs. The costs

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include printing costs of the card and distribution as opposed to marketing dollars in an advertising campaign. The card would include Oregon images (brand) in conjunction with tour operator information.

Online Marketing Campaigns

Background: Travel Oregon will work with tour operators to promote packages on websites such as Opodo.com, Lastminute.com, and Travel Zoo. The sites will increase short term bookings to Oregon. The promotions would also include micro-site and skyscraper banners on the home page. Description: Oregon online promotions will reach thousands of users and increase consideration of Oregon as a vacation destination.

Key Measurement: Increase the number of on-line tour operator promotions by 5% increase over 2010-2011.

Program Name Results 2009-2011 Goals 2011-2013

Online tour operator promotions

3 promotions Increase number of promotions by 5%

Localization of TravelOregon.com in Europe Markets

Background: With the redevelopment of TravelOregon.com in 2011, websites in key markets of Germany and France will be localized based on the new site. Description: Promote the new sites with media outreach in all markets. Create branded web experiences tailored to international traveler needs. Work with contractors to make sure website reflects information needs for their market. This would allow consumers to research Oregon as a vacation destination in their own language. This will be especially beneficial for non-English speakers.

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Key Measurement: Use website Analytics.

Program Name Results 2009-2011 Goals 2011-2013

Germany Website analytics 24,380 Visits 25,000

France Website analytics New 15,000

ASIA

Trade Shows

Background: From Shanghai to Tokyo, international trade shows are the central gathering place for Oregon’s travel trade partners in Asia. At the largest shows, over 100,000 tour operators, hoteliers, travel agencies, airlines and consumers all gather under one roof to gain access to the latest travel information. Having a consistent presence and focused brand campaign at these events is a key pillar in keeping Oregon in front of our clients and developing relationships with our partners. Description: Travel Oregon in partnership with RDMOs, airlines and key contractors will create the most impactful level of participation at the following trade shows:

JATA Japan Association of Travel Agents

CITM China International Travel Mart

NAJ West North American Journeys

Active America JAPAN

Active America CHINA

Travel Oregon will use the above venues to promote Oregon’s key attributes such as scenic beauty, tax-free shopping, winery and brewery offerings, cycling, outdoor adventure, golf, ski, sustainability and culinary experiences.

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Key Measurements: The ultimate goal of these trade shows is increased trip generation and deeper strategic partnerships. We can measure our success in this area through the number of new tour products created and the number of qualified sales leads generated.

Program Name Results 2009-2011 Goal 2011-2013

Qualified Leads 125 per year 175 per year

Special Promotions and Sales Missions

Background: Provides opportunities to work with key suppliers and industry partners to jointly raise awareness of major events and activities in Oregon. Sales missions allow for targeted sales calls and relationship building with tour operators leading to increased awareness of Oregon and more offerings in catalogs and on-line distribution channels. Description: Travel Oregon will work with key partners to create unique in-county events and promotions to further position Oregon as a dynamic and diverse destination.

Travel Oregon in-country contractors to work with Japan, China and Korea media on coverage of major events

Oregon outdoor adventure/scenic beauty event with Japanese outdoor/fashion publication and Oregon apparel company

Korea sales mission to target key tour operators in lieu of major trade show in this market

Sales missions to key Asian tour operators in Los Angeles area to coordinate and reinforce in-country sales activities with the key decision makers in U.S. offices of major tour companies

Key Measurements: Direct sales activities and deeper relationships with clients and decision makers will lead to more Oregon travel products being produced and more consumer participation in our on-line and social media platforms.

Program Name Results 2009-2011 Goal 2011-2013

Tour Operator Product and online promotions

20 per year 35 per year

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Social Media Background: In all three of our key Asian markets (Japan, Korea and China) social media is completely transforming the way in which consumers gather and share information. Adding to this is the quick adoption of advanced smart phone and mobile technology in these markets. This powerful combination provides Travel Oregon with new “bandwidth” and “shelf space” to promote our key niche travel products to groups who have a passion for them and up until now have not had access to through traditional travel and media outlets. Description: Japan: Continue to build followers with ongoing Twitter campaign and tie in with key travel providers and influencers. Explore opportunities for tie-ins with tour operators through other social media sites. Work with media/PR contractor to coordinate these activities with media articles featuring Oregon for maximum impact.

Korea: Build on existing Oregon blog with more tie-ins to Korea social media community. Use more video from research trips to Oregon and incorporate across several social media outlets while connecting back to travel trade (airlines and tour operators with Oregon product).

China: Many western social media platforms are not allowed by the Chinese government. Oregon must carefully choose appropriate channels to engage with social media. This can include uploading videos to approved file-sharing sites and engaging bloggers to post their travel experiences in Oregon to community bulletin boards. Travel Oregon will engage with a media contractor on a project-basis for social media research trips, coordinating media activities in local language and selecting proper social media channels.

Key Measurements: Increase the number of followers to our existing social media platforms and through new avenues.

Program Name Results 2009-2011 Goal 2011-2013

Japan Twitter Followers 99 followers 300 followers

Japan Tweets 171 tweets 220 tweets

Korea Twitter Followers New 100 followers

Korea Blog Visitors 1000 visitors/month Increase to 1500/month

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Media/Travel Trade Research Trips Background: Hosting qualified media and travel industry professionals generates tour products and maximizes media impact in key international markets.

Japan has steadily been in the top three international visitors to Oregon with an estimated 50,000 visitors each year

Korea has a newly established visa waiver program status which typically doubles visitation to a country in the first five years

China is the fastest growing outbound market in the world with an expected 100 Million people having the financial ability to visit the US in the next 3 years

Description: Travel Oregon will work with in country contractors, airline partners, tour operators and media contacts to bring key journalists and decision makers to experience Oregon and generate media coverage and tour products. Some of the themes we will pursue in 2011-2013 include: Media

Korea live blogger/influencer tour to generate interest across many Korean travel blogs simultaneously

Japan outdoor recreation, hiking and cycling media to capture growing experiential based travel segment

China travel media to emphasize tax-free shopping and wineries

Travel Trade

Work with tour operators to get Oregon included in West Coast product offerings

Position Oregon as leading destination for outdoor activities, scenic nature and sustainable tourism

Focus on tax-free shopping, wine, golf and nature themes to all three key markets

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Key Measurements: Increased numbers Oregon product located in tour operator inventory and media value of articles generated from research trips.

Program Name Results 2009-2011 Goal 2011-2013

Asia Research Trips 20 per year 35 per year

Circulation $103,202,114 $105,000,000

Travel Oregon Website Localization (Japan, Korea, China) Background: The Internet has become the primary tool for travel research and marketing. While the traditional travel brochure still exists in Asia, most travel products are available on-line and most consumers turn to the Web first when looking for information on their destination of interest. Travel Oregon needs to facilitate the travel trade and consumers’ need to access information in their own language in the most efficient manner possible. Having our re-branded TravelOregon.com content localized into Japanese, Korean and Chinese will be the key step in this process. Description: The International Department will partner with Consumer Marketing during the re-development process to traveloregon.com with the goal of having sections of content designated for the three key Asian markets. We will then work with a website localization specialist to insure this content is translated to the target language effectively. When launched, a tour operator or consumer in Asia will be able to access the Travel Oregon localized website and quickly learn Oregon’s main tourism information in their native language. Key Measurements: Localized websites will lead to more tour packages and products through quick and easy access to our information by tour operators. Also, the localized sites will increase overall web traffic and drive more consumers toward our tour operator packages and other social media promotions.

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Program Name Results 2009-2011 Goal 2011-2013

Website Analytics Japan Page Views

60,148 10% increase

Website Analytics China Page Views

New 48,119

Website Analytics Korea Page Views

New 48,119

DOMESTIC TRAVEL TRADE Trade Shows, Sales Missions and Research Tours Background: Direct sales are the core of the domestic travel trade program. Participating in trade shows, sales missions and research tours allows our team to deliver the brand promise of Oregon to the trade industry and consumers. Description:

Increase the number of placements in domestic tour operator catalogs

Expand relationships with domestic niche operators to complement Travel Oregon’s culinary and recreation pillars

Increase the number of domestic sales missions

Showcase Oregon’s culinary and recreation pillars at domestic trade shows o Serve Oregon cuisine and craft brew at Oregon sponsor booth at National Tour

Association o Serve Oregon wine at Oregon’s hospitality room at Travel Alliance Partners

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Key Measurements: Direct sales will allow our team to maximize consumer impact and trip generation. Increasing sales missions and research tours will give our clients best in class service and continually keep Oregon visible with their consumers.

Program Name Results 2009-2011 Goal 2011-2013

Tour Operator Catalogs 100 Increase by 5%

Niche Operators 25 Increase by 5%

Domestic Sales Missions New One sales mission per year

Social Media Background: Social media is a fresh addition to our domestic travel trade efforts. Oregon’s top domestic tour operators are creating Facebook pages to stay in touch with their clients who are spending a greater portion of their time online visiting social networks. To ensure Travel Oregon is serving these travel needs, social media will be a vital portion of our team’s plans moving forward. Description:

Add an Oregon tab to Oregon’s top five domestic operator’s facebook pages

Share Oregon trip packages on the Travel Oregon facebook page o ex: Oregon trips offered by Tauck World Discovery

Increase the number of tour operators utilizing the OTTA facebook page

Utilize Youtube, Flickr and other social media outlets to engage domestic operators

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Key Measurements: Track followers and fans on all social media outlets.

Program Name Results for 2009-2011 Goal for 2011-2013

Domestic Tour Operator Oregon Facebook Tabs

New 5 tabs per year

OTTA Facebook Page 50 Operator Fans Increase by 250

Other Social Media Outlets New 200 page views

PR/Media Background: Travel Oregon is continually building relationships with the trade media to ensure Travel Oregon is the number one trusted resource for trip planning.

Description:

Deliver themed trip inspirations quarterly to the trade media. Populate the media resource page on OregonPackagedTravel.com. Key Measurements: To continue the momentum Travel Oregon will continue our strategic partnership with the Oregon Tour and Travel Alliance (OTTA) to leverage resources to achieve core goals.

Program Name Results 2009-2011 Goal 2011-2013

Trip Inspirations 5 per quarter Increase to 10 per quarter

OTTA Media Page New 5 releases per quarter

Circulation Numbers $193,612 Increase by 3%

Advertising and Special Promotions Background: Advertising in trade publications is a critical tool to keep Oregon visible with tour operators and to expand our reach to growing niche markets, such as group travel leaders and student travel

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planners. Travel Oregon works with OTTA to implement tour operator and media advertising and special promotion campaigns. Description:

Partner with Travel Guys Radio in Sacramento hosted by Sports Leisure Vacations

Increase online exposure with current trade publications

Courier Magazine, Destinations or Group Tour Magazine

Tour operator birthday promotion

Key Measurements: Increase the reach of the Travel Oregon brand while strengthening partnerships with existing clients.

Program Name Results 2009-2011 Goal 2011-2013

Travel Guys Radio New Spring and Fall promotions

On-line exposure New Featured in 3 online publications

Oregon’s Birthday Gift 50 operators 75 operators

CANADA Trade Shows, Sales Missions, and Research Tours Background: Western Canada has been a focus for Travel Oregon, with an emphasis on British Columbia, because of its driving proximity to Oregon and PDX international offering four daily flights from Vancouver. Sales missions have been the primary direct sales tool for this market. New direct flights to Calgary and Toronto are now being offered; this expanded air service will offer additional opportunities for growth. In addition, in Spring 2011 we are introducing TV and online advertising to this market; our trade efforts will help amplify the brand campaign.

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Description:

Hire an in-country contractor to assist with higher visibility with the trade

Air Canada agent or wholesaler FAM to encourage the development of Oregon product and promote the direct flights

Develop agent training programs for the top 10 wholesalers in Vancouver, BC

Partner with Merit Golf Vacations to promote Oregon’s adventure pillars

Increase the number of placements in tour operator catalogs

Key Measurements: Direct sales will allow our team to maximize consumer impact and trip generation. Increasing sales missions and research tours will give our clients best in class service and continually keep Oregon visible with their consumers.

Program Name Results 2009-2011 Goal 2011-2013

Tour Operator Product 63 70

Agent Training Programs New Train top 5 wholesalers

Air Canada Vacations Product

New Add Oregon golf product

Social Media Background: Social media is a fresh program for the Canadian travel trade. Oregon’s top Canadian tour operators are creating Facebook pages to stay in touch with their clients (surveys show 7 out of 10 of Canadians online are members of Facebook). To ensure Travel Oregon is serving their travel needs, social media will be a vital program in our plans. Description:

Increase the number of Canadian fans on the Travel Oregon facebook page with targeted advertising

Develop an Oregon tab on the top five Canadian Tour Operator facebook pages

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Key Measurements

Program Name Results 2009-2011 Goal 2011-2013

Oregon Facebook Tabs New 5 Facebook Tabs

Canadian Facebook Fans 50 Operator Fans Increase by 50%

PR/Media Background: Travel Oregon is continually building relationships with the trade media to ensure Travel Oregon is the number one trusted resource for trip planning with Canadian travelers having more awareness of Oregon, we will target the general consumer to maximize trip generation. Description

Hire in-country PR representation to increasing Oregon’s visibility with the media and general consumer

Work with major trade publications such as Travelweek to launch travel agent trip contests, targeting the retail markets across Canada

Develop a relationship or travel spot on the Chris Robinson Travel Show in Toronto to increase awareness of the Eastern Canadian consumer

Key Measurements

Program Name Results 2009-2011 Goal 2011-2013

Increase visibility in trade publications

New 5 publications

Travel show promotions New 2 new special promotions

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AUSTRALIA / NEW ZEALAND Trade Shows, Sales Missions, and Research Tours Background: Travel Oregon has invested in these markets due to strong VisaVue® numbers, top media inquires and qualified PowWow leads. The Australian market is also a top market for our neighboring states of Washington (specifically Seattle) and California. Other Western states such as Idaho, Montana and Wyoming are also seeing success from this market as well. Description:

Hire in-country representation to assist Oregon in becoming visible with the trade and media

Attend Visit USA Australia and New Zealand

Host key journalists on a media research tour

Host key tour operators on a trade research tour

Have Oregon placement in 5 catalogs in 2012 / 2013

Develop promotional partnerships with top 3 wholesalers.

Key Measurements: Direct sales will allow our team to maximize consumer impact and trip generation. Increasing sales missions and research tours will give our clients the best in class service and continually keep Oregon visible with their consumers.

Program Name Results 2009-2011 Goal 2011-2013

Tour Operator Catalogs New 5 Tour Operator Catalogs

Research Trips Media/Trade

New 4 Trips

Tour Operator Special Promotions

New 2 Promotions

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CANADA CONSUMER MARKETING Advertising Strategy Background: In Spring of 2011, Travel Oregon’s domestic consumer advertising campaign was launched in the Vancouver BC market. Description: Based on the results of the Spring 2011 campaign, additional campaigns and markets in Canada will be considered.