Visit South Walton Lifestyle Segments Study

November 2016

Phillip Downs, Ph.D. Joseph St. Germain, Ph.D. Rachael Anglin Downs & St. Germain Research

Preface

• In 2014, Downs & St. Germain conducted a Potential Visitor Study for Visit South Walton. That study contained most of the same issues examined in the present report.

• In 2015, Downs & St. Germain Research conducted a Lifestyle Segmentation Study for Visit South Walton. This study identified the market segments with the greatest potential for visiting South Walton. Highlights from this study are contained in the Appendix of this report.

• The 2016 Lifestyle Segments Study focuses on market segments identified in the 2015 Lifestyle Segmentation Study while utilizing most of the same questions contained in the 2014 Potential Visitor Study.

• Results from the 2016 Lifestyle Segments Study will: – Enable VSW to tailor its advertising & marketing to achieve a higher ROI. – Compare baseline results from upscale potential visitors who were surveyed in

2014 in 21 key origin markets with results from the 2016 Lifestyle Segments Study from 22 origin markets in 2016.

2

Study Objectives

• This study examines key Lifestyle Segments (household income, house value, children vs. no children, type of neighborhood, married/unmarried, age, and education) for South Walton in 22 geographic markets that are key origin cities for South Walton.

• These key Lifestyle Segments are compared to Upscale Households that South Walton has traditionally focused on in its marketing.

• Results also determine which geographic markets to focus on and which zip codes within these markets are best for optimizing South Walton’s marketing and advertising dollars.

• The study presents evidence for how best to market to Lifestyle Segments that are predisposed to vacation in South Walton.

3

Terminology

• Prospects from the 2014 Potential Visitors Study will be referred to as “Upscale Households (HHs)” throughout the report.

• Prospective visitors from the 2016 Lifestyle Segments Study will be referred to “Lifestyle Segments”.

• Throughout the report, we distinguish between “South Walton” - the brand name, and South Walton - the destination that encompasses 16 beach communities.

• For example, awareness of the brand name “South Walton” is different than awareness of the 16 beach communities and 30-A, which comprise the destination.

• So, throughout the report we use the following terminology: – “South Walton” refers to the brand name.

– “South Walton/16 beaches” refers to the destination, i.e., the brand name plus the 16 beach communities plus 30-A.

4

Conclusions

5

Awareness of & Experience with South Walton

• This and the following slide illustrate that “Lifestyle Segments” identified in the 2015 study are more suited to SW marketing efforts than “Upscale Households” in key origin markets because awareness of, and experience with, South Walton is higher among the former group.

• Within a Southeastern US frame¹, unaided awareness of South Walton or 1 of its 16 beaches among Lifestyle Segments in 2016 was twice as high (6%) than among Upscale HHs in 2014 (3%). – Unaided awareness of “South Walton” among SE US beach destinations was 1%

• Within a Florida frame², unaided awareness of South Walton or 1 of its 16 beaches among Lifestyle Segments in 2016 was 3 times higher (15%) than among Upscale HHs in 2014 (5%). – Unaided awareness of “South Walton” among Florida beach destinations was 1%.

• Aided recall of South Walton or 1 of its 16 beaches among Lifestyle Segments in 2016 was higher (84%) than among Upscale HHs in 2014 (79%).

• Lifestyle Segments in 2016 were more likely to have vacationed in South Walton (45%) than Upscale HHs in 2014 (31%).

1When you think of beach vacation destinations in the southeast you'd like to visit, which ones come to mind? Please be specific and name beach areas and/or towns. ²Which beach vacation destinations would you like to visit in Florida?

6

Aided Recall & Experience with South Walton1

7

1Multiple responses permitted. 2Includes South Walton, 16 beach communities, and 30-A. 3Red type indicates meaningful differences from a strategic perspective. ⁴Includes only the brand name “South Walton.” ⁵Since Miramar Beach has 1% top-of-mind preference, we believe aided recall of Miramar Beach is inflated because some people think of Miramar, FL or Miramar in San Diego, aka Fightertown USA.

2016 Lifestyle Segments

Aided Recall 2014 Upscale Households

Aided Recall 2016 Lifestyle

Segments

Vacationed in SW 2014 Upscale Households

Vacationed in SW 2016 Lifestyle

Segments South Walton/16 beaches2 79% 84%³ 31% 45%³

Sandestin 48% 55% 11% 12%

Miramar Beach⁵ 40% 44% 6% 5%

South Walton⁴ 35% 43% 4% 7%

Seaside 34% 40% 4% 4%

Santa Rosa Beach 32% 38% 3% 5%

Rosemary Beach 18% 25% 1% 3%

Seagrove 20% 23% 1% 1%

Seascape 22% 22% <1% 1%

WaterColor 13% 22% 1% 2%

Grayton Beach 17% 21% 1% 2%

30-A 11% 17% 1% 1%

Blue Mountain 13% 17% 1% 2%

Seacrest 17% 17% <1% 1%

Water Sound 9% 15% <1% <1%

Alys Beach 9% 13% <1% <1%

Gulf Place 12% 13% 1% 1%

Inlet Beach 11% 12% <1% <1%

Dune Allen 8% 10% <1% <1%

Obstacles to Visiting South Walton

• 1 in 6 Lifestyle Segments vs. 1 in 4 Upscale HHs claims to not visit SW because they do not know enough about it

• Lifestyle Segments are less likely to have negative reasons¹ (20% have negative reasons) for not visiting SW than Upscale HHs (33% have negative reasons)

• Lifestyle Segments (19%) were slightly more likely than Upscale HHS (15%) to know that SW is located between Destin & Panama City Beach

• Lifestyle Segments gave South Walton a rating of 7.9 as a vacation destination (compared to 7.6 for Upscale HHs).

¹Prefer other places, had a bad previous experience with SW, SW is too difficult to get to, or too expensive, or does not have my loyalty hotel, or does not have enough to do.

8

Promoting South Walton to Lifestyle Segments • 72% of Lifestyle Segments have a high level of interest for trying new beach

destinations.

• Lifestyle Segments who have a high level of interest for trying new beach destinations would do the following to plan a trip – Search on Google, Bing, etc. – Talk to friends – Go to Expedia, TripAdvisor, Travelocity, etc. – Go to the destination website

• Highest rated SW attributes among Lifestyle Segments – Pleasant place to unwind – Sugar-white sand & turquoise blue waters – Good place for a family vacation

• Lifestyle Segments are more likely to compare SW to Myrtle Beach, Kiawah Island & Amelia Island, while Upscale HHs in 2014 were more likely to compare SW to Destin, Panama City Beach, and Gulf Shores/Orange Beach.

• Lifestyle Segments are more likely than Upscale HHs to fly to SW.

• Lifestyle Segments’ perceptions are that families & wealthier people vacation in SW.

9

Market Penetration vs. Potential Demand

Low Penetration/High Population

St. Louis Jacksonville Cincinnati Chicago Austin Washington DC Dallas Baltimore Oklahoma City Columbus, OH Indianapolis Houston Kansas City Charlotte

High Penetration/High Population

Atlanta

Low Penetration/Low Population

Louisville

Baton Rouge Little Rock

High Penetration/Low Population

Birmingham Huntsville Knoxville Montgomery Nashville New Orleans Jackson Memphis Panama City Tallahassee Dothan Chattanooga Pensacola/Mobile

Market Penetration

Population

Low penetration is <30% of people in households with > $100,000 income Low population is <250,000 people with incomes > $100,000

Upscale

10

2016 Market Penetration & Market Potential

Market¹

% of Visitors to Walton County

in Oct ‘15- Aug ‘16

# of Visitors to Walton County

in Oct ‘15- Aug ‘16

% of Visitors to Walton County in

in Oct ‘15- Aug ’16

$100,000+

# of Visitors to Walton County

in in Oct ‘15- Aug ‘16

$100,000+

Estimated # Times

Visited in in Oct ‘15- Aug ‘16

# of Unique Visitors to Walton County in Oct ‘15-

Aug ‘16 $100,000+

Median # Times Visited

in Lifetime Population

% of population with HHI

$100,000+

Population with HHI

$100,000+

Market Penetration

Rate # of Potential New Visitors Market

Birmingham 6.2% 222,229 4.3% 154,126 1 154,126 15 1,145,647 20.0% 229,129 67.3% 75,003 Birmingham

Knoxville 2.0% 71,687 1.4% 50,181 1 50,181 9 861,424 9.8% 84,420 59.4% 34,239 Knoxville

Nashville 6.7% 240,151 4.8% 172,048 1 172,048 10 1,830,345 16.5% 302,007 57.0% 129,959 Nashville

Jackson 2.0% 71,687 1.5% 53,765 1 53,765 9 576,382 17.5% 100,867 53.3% 47,102 Jackson

Pensacola-Mobile 6.5% 232,982 2.8% 100,361 1.5 66,908 7 875,306 15.2% 133,047 50.3% 66,139 Pensacola-Mobile

Dothan 0.9% 32,259 0.4% 14,337 1.5 9,558 21 148,171 13.6% 20,151 47.4% 10,593 Dothan

Chattanooga 1.5% 53,765 1.1% 39,428 1 39,428 10 547,776 16.7% 91,479 43.1% 52,051 Chattanooga

Tallahassee 1.6% 57,349 1.1% 39,428 1.5 26,285 9 375,751 17.5% 65,756 40.0% 39,471 Tallahassee

Huntsville 1.3% 46,596 1.1% 39,428 1 39,428 14 441,086 22.5% 99,244 39.7% 59,817 Huntsville

Montgomery 1.8% 64,518 0.9% 32,259 1.3 24,815 19 374,536 16.9% 63,297 39.2% 38,482 Montgomery

New Orleans 3.8% 136,205 2.6% 93,193 1 93,193 8 1,262,888 19.6% 247,526 37.6% 154,333 New Orleans

Memphis 3.7% 132,620 2.4% 86,024 1 86,024 8 1,344,130 18.5% 248,664 34.6% 162,640 Memphis

Panama City-Destin 2.2% 78,855 0.8% 28,675 1.5 19,116 22 352,252 17.4% 61,292 31.2% 42,175 Panama City-Destin

Atlanta 16.0% 573,494 11.4% 408,614 1 408,614 7 5,710,795 24.4% 1,393,434 29.3% 984,820 Atlanta

Louisville 2.6% 93,193 1.8% 64,518 1 64,518 4 1,278,410 17.7% 226,279 28.5% 161,761 Louisville

Baton Rouge 1.7% 60,934 1.3% 46,596 1 46,596 4 830,480 27.7% 230,043 20.3% 183,447 Baton Rouge

Little Rock 1% 35,843 0.8% 28,675 1 28,675 7 732,600 21.3% 156,044 18.4% 127,369 Little Rock

St Louis 3.3% 118,283 2.0% 71,687 1 71,687 4 2,811,588 21.8% 612,926 11.7% 541,239 St Louis

Cincinnati 2.3% 82,440 1.5% 53,765 1 53,765 7 2,149,449 22.3% 479,327 11.2% 425,562 Cincinnati

Austin 1.2% 43,012 1.0% 35,843 1 35,843 4 2,000,860 16.4% 328,141 10.9% 292,298 Austin

Dallas-Ft Worth 6.7% 240,151 5.4% 193,554 1 193,554 4 7,102,796 26.0% 1,846,727 10.5% 1,653,173 Dallas-Ft Worth

Oklahoma City 0.9% 32,259 0.7% 25,090 1 25,090 4 1,358,452 18.0% 244,521 10.3% 219,431 Oklahoma City

Indianapolis 1.0% 35,843 0.7% 25,090 1 25,090 3 1,988,817 13.9% 276,446 9.1% 251,355 Indianapolis

Kansas City 1% 35,843 0.8% 28,675 1 28,675 4 2,159,159 16.3% 351,943 8.1% 323,268 Kansas City

Houston 3.8% 136,205 3.1% 111,114 1 111,114 3 6,490,180 26.4% 1,713,408 6.5% 1,602,293 Houston

Columbus 0.7% 25,090 0.5% 17,922 1 17,922 3 2,021,632 15.4% 311,331 5.8% 293,410 Columbus

Jacksonville 0.5% 17,922 0.3% 10,753 1 10,753 1 1,573,606 20.4% 321,016 3.3% 310,263 Jacksonville

Chicago 1.8% 64,518 1.4% 50,181 1 50,181 6 9,554,598 27.4% 2,617,960 1.9% 2,567,779 Chicago

Charlotte 0.5% 17,922 0.2% 7,169 1 7,169 2 2,426,363 23.10% 560,490 1.3% 553,321 Charlotte

Washington DC-Baltimore 0.7% 25,090 0.5% 17,922 1 17,922 4 9,625,744 26.5% 2,550,822 0.7% 2,532,900 Washington DC-Baltimore

Market Penetration is the number of unique individuals in households with income greater than $100,000 divided by the number of individuals living in households with incomes greater than $100,000. Number of Potential New Visitors is the number of individuals living in households with income greater than $100,000 who have not been to South Walton.

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Best Zip Codes for South Walton

Based on Visitor Tracking Studies, 2015 Lifestyle Segmentation Study, Market Penetration Analysis, & Airlift Data

• Primary Markets – Atlanta (30075, 30004, 30022, 30327, 30024, 30062, 30319, 30305, 30306, 30338, 30342, 30040,

30041, 30097, 30005, 30068, 30067, 30030) – Houston (77401, 77094, 77005, 77024, 77441) – Dallas (75225, 75205, 76034, 76225, 76092, 76205, 76022, 76093, 76230, 76019) – Nashville (37027, 37064, 37215, 37205, 37069, 37067) – New Orleans (70115, 70433, 70471, 70124) – St. Louis (63131, 63124, 63005, 63038, 63141) – Chicago (60005, 60604, 60606, 60043, 60093, 60022, 60029, 60045, 60147, 60602)

• Secondary Markets – Birmingham (35242, 35213, 35209, 35226, 35243, 35244, 35216, 35223) – Knoxville (37027, 37069, 37350, 37007) – Chattanooga (37343, 37363, 37407) – Memphis (38139, 38138, 38117, 38017) – Baton Rouge (70810, 70808, 70809, 70817) – Baltimore (21035, 20776, 21042, 21032, 21111, 21131) – Washington DC (22066, 22039, 20854, 20862, 20124, 20896, 22182, 20818, 20833) – Cincinnati (45040, 45249, 45243, 45384) – Austin (78746, 78619, 78620, 78669, 78734, 78733)

12

Findings

13

Top-of-mind preferences for Southeast U.S. beach destinations1

14

Destination2 %

Unaided Destination %

Unaided Destination %

Unaided Destination %

Unaided

Florida 30% Tampa 2% Chincoteague, VA 1% Naples 1%

Destin 23% St. Petersburg 2% Cape Coral 1% Nags Head 1%

Miami 15% South Padre Island 2% Caladesi Island 1% Miramar Beach 1%

South Carolina 13% Seaside 2% Amelia Island 1% Palm Coast 1%

Myrtle Beach 10% Rosemary Beach 2% Barrier Islands 1% Palm Beach 1%

Pensacola 9% Hawaii 2% Bradenton 1% Orlando 1%

Alabama 9% Charleston 2% Cape Hatteras 1% Ono Island (AL) 1%

North Carolina 8% Gulf Coast 2% Dauphin Island 1% Ocean City 1%

Gulf Shores 8% Mississippi 2% Delray Beach 1% Oak Island (NC) 1%

Hilton Head 7% Marco Island 2% Fripp Island 1% New Smryna Beach 1%

Georgia 7% Navarre Beach 2% Ft. Walton 1% Wilmington 1%

Orange Beach 6% Siesta Key 2% Galveston 1% West Ship Island (MS) 1%

Texas 6% Santa Rose Beach 2% Gulf Port 1% Treasure Island 1%

South Walton/16 beaches 6% Sanibel Island 2% Galveston 1% Sugar Beach 1%

Panama City Beach 5% Captiva Island 1% Gulf Port 1% St. Simons Island 1%

Virginia Beach 5% Biloxi 1% Isle of Palms 1% St. George Island 1%

Florida Keys 4% Bay St. Louis 1% Jekyll Island 1% South Walton 1%

Outer Banks 4% Fort Myers 1% Jacksonville Beach 1% Seacrest 1%

Ft. Lauderdale 4% Folly Beach (SC) 1% Kissimmee 1% Sarasota 1%

Savannah 3% Fair Hope (AL) 1% Kiawah Island 1% Port Aransas (TX) 1%

Louisiana 3% Crystal Coast 1% Longboat Key 1% Perdido Key 1%

Daytona Beach 3% Corpus Christi 1% Mexico Beach 1% Sea Island 1%

Clearwater 2% Cocoa Beach 1% Merritt Island 1% Sea Brook Island (SC) 1%

Tybee Island 2% Coast Guard Beach 1% Melbourne 1% Sandestin 1%

¹Which beach destinations would you like to visit in the Southeastern US? ²Participants were permitted to list up to 5 destinations.

Top-of-mind preferences for Florida beach destinations1

15

Destination2 %

Unaided Destination %

Unaided Destination %

Unaided Destination %

Unaided

Miami 33% Seaside 3% Crystal Beach 1% Marathon 1%

Destin 29% St. Petersburg 3% Delray Beach 1% Melbourne 1%

Florida Keys 19% Disney 2% Dog Island 1% Miramar Beach 1%

South Walton/16 beaches 15% Marco Island 2% Doral 1% Navarre 1%

Panama City Beach 10% Palm Beach 2% Epcot 1% New Smyrna Beach 1%

Ft. Lauderdale 9% Siesta Key 3% Fernandina Beach 1% Okaloosa Island 1%

Pensacola 9% Venice Beach 2% Florida 1% Ormond Beach 1%

Tampa 8% West Palm Beach 2% Grayton Beach 1% Palm Coast 1%

Daytona Beach 7% 30A 1% Gulf Coast 1% Perdido Key 1%

Clearwater 6% Alys Beach 1% Hollywood 1% Port Saint Joe 1%

Naples 5% Amelia Island 1% Homestead 1% Sandestin 1%

Orlando 5% Apalachicola 1% Indian Shores 1% Santa Rosa Beach 1%

Sanibel Island 5% Aventura (Miami) 1% Jekyll Island 1% Seagrove 1%

St. Augustine 4% Bahamas 1% Kennedy Space Center 1% South Walton 1%

Cocoa Beach 3% Boca Raton 1% Key Biscayne 1% Stewart 1%

Ft. Myers 3% Bradenton 1% Laguna Beach (PCB) 1% Sugar Beach (PCB) 1%

Ft. Walton 3% Cape Coral 1% Lido Key 1% Treasure Island 1%

Jacksonville 3% Captiva Island 1% Long Beach (PCB) 1% Sugar Beach (PCB) 1%

Rosemary Beach 3% Caladesi Island 1% Longboat Key 1% Vero Beach 1%

Sarasota 3% Coral Gables 1% Lover's Key 1% Watercolor 1% 1Which beach vacation destinations would you like to visit in Florida? 2Participants were permitted to list up to 5 destinations.

Aided recall of South Walton and competitors1

16

1Multiple responses permitted. 2Includes South Walton, 16 beach communities, and 30-A. 3Includes only the brand name “South Walton.” 4 Since Miramar Beach has almost no top-of-mind preference, we believe that aided recall of Miramar Beach is inflated because some people think of Miramar, FL or Miramar in San Diego, AKA Fightertown USA.

Beach destination %

Aided Destination %

Aided

Miami 93% Seaside 40%

Key West 86% Santa Rosa Beach 38%

Panama City 84% Kiawah Island 31%

South Walton/16 beaches2 84% Rosemary Beach 25%

Myrtle Beach 83% Seagrove 23%

Hilton Head Island 76% Seascape 22%

Pensacola Beach 75% Water Color 22%

Destin/Emerald Coast 73% Grayton Beach 21%

Gulf Shores/Orange Beach 66% 30-A 17%

Naples/Marco Island 63% Blue Mountain 17%

Sanibel Island/Ft. Myers 60% Seacrest 17%

Sandestin 55% Water Sound 15%

Amelia Island 50% Alys Beach 13%

Outer Banks 49% Gulf Place 13%

Miramar Beach4 44% Inlet Beach 12%

South Walton3 43% Dune Allen 10%

Golden Isles (Sea Island, Jekyll Island & St. Simons Island) 42%

Beach destinations where Lifestyle Segments have vacationed1

17

1Multiple responses permitted. 2Includes South Walton, 16 beach communities, and 30-A. 3Includes only the brand name “South Walton.”

Destination % Vacationed Destination %

Vacationed

Miami 47% Miramar Beach 5%

South Walton/16 beaches2 45% Seaside 4%

Destin/Emerald Coast 33% Rosemary Beach 3%

Panama City 33% Blue Mountain 2%

Myrtle Beach 28% Grayton Beach 2%

Pensacola Beach 25% WaterColor 2%

Gulf Shores/Orange Beach 21% Kiawah Island 3%

Key West 27% 30-A 1%

Hilton Head Island 23% Gulf Place 1%

Sandestin 12% Seagrove 1%

Sanibel Island/Ft. Myers 10% Alys Beach <1%

Naples/Marco Island 10% Dune Allen <1%

South Walton3 7% Inlet Beach <1%

Outer Banks 7% Seacrest <1%

Amelia Island 7% Seascape <1%

Golden Isles (Sea Island, Jekyll Island & St. Simons Island) 6% WaterSound <1%

Santa Rosa Beach 5%

•45% of Lifestyle Segments have vacationed in South Walton/1 of its 16 beach communities. •1 in 6 knows nothing about South Walton. •Reasons for not vacationing in South Walton/1 of its 16 beach communities2:

Reasons for not vacationing in South Walton/ 16 beaches

18

1Lifestyle Segments who had not heard of South Walton or one of the 16 beach communities were not asked this question. 2Multiple responses permitted.

1

16%

10%

3%

2%

2%

2%

2%

1%

1%

<1%

5%

7%

Don't know much about it

Prefer another place

Friends/family has never gone there

Too difficult to get to/too far

Money - Cannot afford/too expensive

Not enough to do in South Walton

Did not take any vacations

My hotel is not there (Hyatt, Ritz Carlton, Sheraton, etc.)

Air service is limited

Bad previous experience

Don't know

Other

There are comparatively few obstacles to vacationing in SW from Lifestyle Segments’ perspectives:

• 20% of Lifestyle Segments offered a negative reason (prefer another place, too difficult to get to, too expensive, etc.) for not vacationing in SW.

• In 2014, 33% of Upscale HHs offered a negative reason for not vacationing in SW.

[VALUE]1

15%

8%

6%

1%

5%

Friends/family

Been to South Walton

Internet search/website

Advertisement

Business/conference

Other

Awareness of “South Walton” Brand

19

157% of Lifestyle Segments who are not aware of the term “South Walton” were not asked this question. 2Multiple responses permitted.

•57% of Lifestyle Segments are not aware of the term “South Walton”. •43% of Lifestyle Segments are aware of the term “South Walton” for the following reasons2:

43% of Lifestyle Segments are aware of “South Walton” compared to 35% of Upscale HHs in 2014. 22% became aware of South Walton via friends.

57%

48%

43%

37%

34%

29%

27%

26%

19%

19%

15%

14%

12%

6%

6%

6%

Search on Google, Bing, etc.

Talk to friends

TripAdvisor, Travelocity, etc.

Destination website

Hotel website, e.g., Hyatt.com

Social media

Trip panning app

Airbnb, Expedia, trivago, Priceline, etc.

Airline website, e.g., Delta.com

Travel guides

Travel magazines

Travel agent

Destination Travel Guide

Travel sections of newspapers

Books about the destination

Other

Where Lifestyle Segments search for new beach destinations

20

•72% of Lifestyle Segments have a high level of interest for trying new beach destinations.

•Lifestyle Segments who have a high level of interest for trying new beach destinations would do the following to plan a trip to a new beach destination1:

1Only asked of 72% of Lifestyle Segments who had a interest level of 7 or higher (on a 1 to 10 scale) for trying new vacation destinations. Multiple responses permitted.

Nearly 6 in 10 Lifestyle Segments will search on Google for a new beach destination.

Searched for or noticed information about South Walton on the following:

21

1 Lifestyle Segments who had not heard of South Walton or one of the 16 beach communities were not asked this question. 2Multiple responses permitted.

1

13%

13%

13%

10%

10%

7%

6%

5%

40%

8%

VisitSouthWalton.com

Advertising for South Walton

Tweet, Instagram, or Snapchat

South Walton's Facebook page

Travel Guide for SW

1 of 16 beaches’ websites

SoWal.com

30A.com

None of the above

Other

Compared to Upscale HHs in 2014, Lifestyle Segments are less likely to actively seek information about South Walton by going to VSW.com, or noticing advertising by VSW, or going to a website for 1 of the 16 beaches. Information is more likely to reach Lifestyle Segments (in comparison to Upscale HHs) via tweets, Instagram and Snapchat.

Importance of attributes for new beach destinations1

22

1Rated on a scale of 1 to 10 where 1 is not at all important 10 is very important.

8.5

8.4

8.3

8.3

8.2

8.0

7.4

7.2

6.7

6.5

6.5

6.3

6.2

6.0

6.0

5.7

5.6

Pleasant place to unwind

Scenic beauty

Value for your travel dollar

Customer service

Sugar-white sand and turquoise blue waters

Range & quality of accommodations

Good place for family vacation

Place that's different and unique

Upscale dining options

Having a variety of communities in terms of architecture, scenery, and feel

An upscale destination

Returning to familiar people, places, and traditions

Cultural events & festivals

Off beach activities such as golf, tennis, paddleboarding, etc.

Shopping boutiques & galleries

Live music scene & nightlife

Knowing other people visiting will be similar to you and your family

Compared to Upscale HHs in 2014, Scenic Beauty and Customer Service are more important to Lifestyle Segments.

Lifestyle Segments: Rating South Walton1

23

1 Lifestyle Segments who had not heard of South Walton or one of the 16 beach communities were not asked this question. 2All ratings are based on a scale of 1 to 10 where 1 is poor and 10 is excellent.

•Lifestyle Segments gave South Walton a rating of 7.9 as a vacation destination.

•Lifestyle Segments’ ratings of South Walton on vacation attributes are shown below2:

8.3

8.1

8.1

7.9

7.6

7.6

7.6

7.2

7.0

6.9

6.9

6.8

6.7

6.6

6.5

6.5

6.4

Pleasant place to unwind

Sugar-white sand and turquoise blue waters

Good place for family vacation

Scenic beauty

Range & quality of accommodations

Value for your travel dollar

Customer service

Place that's different and unique

Upscale dining options

Off beach activities such as golf, tennis, paddleboarding, etc.

Shopping boutiques & galleries

Having a variety of communities in terms of architecture, scenery, and feel

Knowing other people visiting will be similar to you and your family

Returning to familiar people, places, and traditions

Cultural events & festivals

An upscale destination

Live music scene & nightlife

Gap Analysis

1“Pleasant place to unwind” is more important to Lifestyle Segments than visitors rate South Walton on this dimension.

24

Vacation Attribute Importance to visitors Rating of South Walton Gap

Pleasant place to unwind 8.5 8.3 -0.21

Scenic beauty 8.4 7.9 -0.5

Customer service 8.3 7.6 -0.7

Value for your travel dollar 8.3 7.6 -0.7

Sugar-white sand and turquoise blue waters 8.2 8.1 -0.1

Range & quality of accommodations 8.0 7.6 -0.4

Good place for family vacation 7.4 8.1 +0.7

Place that's different and unique 7.2 7.2 +0.0

Upscale dining options 6.7 7.0 +0.3

An upscale destination 6.5 6.5 +0.0

Having a variety of communities in terms of architecture, scenery, and feel 6.5 6.8 +0.3

Returning to familiar people, places, and traditions 6.3 6.6 +0.3

Cultural events & festivals 6.2 6.5 +0.3

Off beach activities such as golf, tennis, paddle boarding, etc. 6.0 6.9 +0.9

Shopping boutiques & galleries 6.0 6.9 +0.9

Live music scene & nightlife 5.7 6.4 +0.7

Knowing other people visiting will be similar to you and your family 5.6 6.7 +1.1

The importance of vacation attributes to Lifestyle Segments line up more closely with their ratings of SW than was true for Upscale HHs in 2014, who had larger negative gaps.

In which state is “South Walton” located?

25

“South Walton” refers only to the brand name and not to the 16 beach communities.

31%

1%

1%

67%

Florida

Texas

Alabama

No idea

Lifestyle Segments are no more aware of South Walton’s location that Upscale HHs were in 2014.

Awareness of specific geographic location of South Walton

26

“South Walton” refers only to the brand name and not to the 16 beach communities.

19%

2%

1%

1%

1%

0%

Between Destin and Panama CityFL

Between Jacksonville and DaytonaBeach

Between Sarasota and Naples FL

Between Miami and Ft. LauderdaleFL

In the Florida Keys

Between Tampa and Sarasota

Don’t know 74%

Lifestyle Segments (19%) were slightly more likely than Upscale HHS (15%) to know that SW is located between Destin & Panama City Beach.

Lifestyle Segments think South Walton is similar to the following competitors1:

27

1Lifestyle Segments who had not heard of South Walton or one of the 16 beach communities were not asked this question. 2Multiple responses permitted.

63%

52%

49%

49%

45%

43%

40%

28%

27%

26%

18%

8%

6%

5%

23%

3%

Myrtle Beach

Kiawah Island

Amelia Island

Key West

Outer Banks

Golden Isles

Destin/Emerald Coast

Hilton Head Island

Panama City Beach

Gulf Shores/Orange Beach

Pensacola Beach

Miami

Naples/Marco Island

Sanibel Island/Ft. Myers

Don't know

Nothing like it

Lifestyle Segments are more likely to compare SW to Myrtle Beach, Kiawah Island & Amelia Island, while Upscale HHs in 2014 were more likely to compare SW to Destin, Panama City Beach, and Gulf Shores/Orange Beach.

Intent to vacation in South Walton

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•31% of Lifestyle Segments said they planned to vacation in South Walton in the next year.

•69% of Lifestyle Segments did not plan to vacation in South Walton for the following reasons2:

1Lifestyle Segments who had not heard of South Walton or one of the 16 beach communities were not asked this question. 2Multiple responses permitted.

1

22%

21%

18%

10%

9%

8%

5%

4%

3%

2%

2%

13%

14%

Never heard of it

Prefer another place

Don't know much about it

Do not plan to vacation

Money - Cannot afford/too expensive

Too difficult to get to/too far

Not enough to do in South Walton

Friends/family have never gone there

Limited air service

Bad previous experience

My hotel is not there

Don't know

Other

Lifestyle Segments were more likely to plan a vacation in SW in the coming year (31%) compared to Upscale HHs (22%).

Lifestyle Segments: Drive vs. Fly1

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• 68% of Lifestyle Segments said that if they vacationed in South Walton they would drive.

• 74% of Upscale HHs in 2014 said they would drive

• 32% of Lifestyle Segments said that if they vacationed in South Walton they would fly.

1Lifestyle Segments who had not heard of South Walton or one of the 16 beach communities were not asked questions about their intent to drive or fly to South Walton.

Why Lifestyle Segments will not fly to South Walton1

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•38% of Lifestyle Segments who would normally drive to South Walton would consider flying.

•62% of Lifestyle Segments will not fly to South Walton because2:

1 Lifestyle Segments who had not heard of South Walton or one of the 16 beach communities and who would consider flying to South Walton were not asked this question. 2Multiple responses permitted.

14%

11%

7%

5%

3%

2%

1%

1%

1%

1%

1%

It is too close to fly there

Prefer to drive

Too expensive to fly

Have too much to bring - lawn chairs, baskets, towels, etc.

Lack of nonstop/direct flights

Only small planes go to those airports - don't like small…

Hate flying

Don't know enough about it

Don't want to go to South Walton

Don't know

Other

Lifestyle Segments’ reasons for not flying to South Walton were essentially the same as Upscale HHs in 2014.

Awareness of airports that service the South Walton area1

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1 Lifestyle Segments who had not heard of South Walton or one of the 16 beach communities were not asked this question. 2Multiple responses permitted.

[VALUE]2

11%

10%

8%

7%

6%

40%

3%

Northwest Florida Beaches International Airport

Destin/Ft. Walton Beach Airport

Orlando International Airport

Jacksonville International Airport

Tampa International Airport

Think there is one, but don't know it

Do not know

Other

Lifestyle Segments’ knowledge of airports serving the South Walton area was similar to that of Upscale HHs in 2014.

Perceptions of types of people who vacation in South Walton1

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1 Lifestyle Segments who had not heard of South Walton or one of the 16 beach communities were not asked this question. 2Open-ended responses.

[VALUE]2

9%

8%

6%

6%

6%

5%

5%

5%

3%

2%

2%

1%

5%

14%

Families

Wealthier than middle class/affluent

Everybody

Young people

Beach lovers/sun worshippers

Middle class

Happy/good/friendly

Fun/adventuous

Older & retired people

People looking to relax

Couples

From the South

Snowbirds/from the north/midwest

Other

Don't know

Lifestyle Segments’ perceptions of who vacationed in South Walton did not vary significantly from that of Upscale HHs, yet the former group was more likely to perceive younger and middle aged people vacationing in South Walton.

Comments from people who say “Families” are likely to vacation in South Walton

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“People who are interested in relaxing and enjoy opportunities for fine dining and family gatherings.” “I think they are people who have families, interested in golf, etc. I would think it would be people who want a variety of things to do like golf and beach.” “Family vacationers looking for a place close to the southeast region and easy and accessible.” “People with school age children/families.” “30’s to 60’s with children.”

Comments from people who say “Wealthier than middle class” are likely to vacation in South Walton

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“People with children who have enough money to pay the steep price. People who enjoy seeing friends from home and socializing.” “Upper middle class to upper class or blue collar fisherman.” “A little more upscale group, it tends to be a little more expensive than some other places you might want to take a whole family to.” “Financially well off.”

35

Comments from people who say “Everybody” is likely to vacation in South Walton

“Families of any age, groups of friends, young couples, older couples. The type of people are so diverse, but all are laid back and looking to have a good time.” “Wide range, from families to college singles.” “Family, retirees, combination, college students.” “All kinds...families, older people.”

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Comments from people who say “Young people” are likely to vacation in South Walton

“Younger people, singles and young families.” “Young and active people.” “Young adult/Spring breakers and other families.” “Young people who have kids.” “Singles, college spring break students.”

Comments from people who say “Beach lovers/sun worshippers” are likely to vacation in South Walton

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“People who like to sunbathe and engage in water sports.” “Those who love sandy beaches and beautiful water.” “All kinds of people, those who want to see beautiful beaches.” “Normal folks who love the beach and a variety of things to do.” “People who like beach vacations.”

Lifestyle Segments: Vacation plans

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Lifestyle Segments take slightly more vacations a year than Upscale HHs.

•Lifestyle Segments took 2.5 vacations in the spring and summer this year where they stayed at least 2 nights.

•Lifestyle Segments plan to take 1.8 vacations in the fall and winter this year where they will stay at least 2 nights.

Lifestyle Segments: Household

39

•Lifestyle Segments had an average of 2.9 people living in their household (compared to 3.1 for Upscale HHs in 2014).

•45% of Lifestyle Segments had a person under the age of 20 living in their household (compared to 41% for Upscale HHs in 2014).

Lifestyle Segments: Age

40

6%

25%

16%

22%

14%

18-24

25-34

35-44

45-54

65+

Median Age Lifestyle Segments = 46 Upscale HHs = 44

65%

15%

11%

6%

1%

$100,000 to $149,999

$150,000 to $199,999

$200,000 to $299,999

$300,000 to $499,999

$500,000 or more

Lifestyle Segments: Household Income

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Estimated Average HHI Lifestyle Segments = $165,000 Upscale HHs = $149,000

Lifestyle Segments: Rent vs. Own Home

42

84%

16%

Own

Rent

Lifestyle Segments: Education

43

7%

18%

48%

27%

No college

Some college

College graduate

Graduate work

Lifestyle Segments: Gender

44

51%

49%

Female

Male

Lifestyle Segments: Race/ethnicity

45

85%

7%

5%

3%

White

Black

Asian

Hispanic

Study Methodology

46

•A total of 550 surveys were completed in 22 target markets: Market Quota Atlanta 50

Birmingham 50

Dallas-Ft Worth 50

Houston 50

Nashville 50

Baton Rouge 25

Cincinnati 25

Memphis 25

Montgomery 25

New Orleans 25

St. Louis 25

Baltimore 20

Chicago 20

New York City 20

Washington DC 20

Charlotte 10

Detroit 10

Indianapolis 10

Jackson 10

Knoxville 10

Louisville 10

Tallahassee 10

Total 550

•Profile of Lifestyle Segments: Age 25+ $75,000+ household income Vacation decision maker Taken a 3+ night beach vacation in southeast US in past 3 years and stayed in paid accommodations

Visit South Walton Lifestyle Segments Study

Phillip Downs, Ph.D., Senior Partner, pd@dsg-research.com Joseph St. Germain, Ph.D., President, joseph@dsg-research.com

Rachael Anglin, Project Director, rachael@dsg-research.com Downs & St. Germain Research

1-800-564-3182: www.dsg-research.com

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Highlights of 2015 Lifestyle Segmentation Study

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Lifestyle Clusters & Segments shown on the following 4 slides represent the target market in

the 2016 Lifestyle Segments Study.

2015 Lifestyle Segmentation Study

¹Total number of households in the US used in PRIZM analysis is 121.1 million. ²Likelihood of visiting South Walton; 363 means that Gulf State Families households are 3.63 times more likely to visit South Walton. 49

3 lifestyle clusters account for 73.14% of all visitors to South Walton. These clusters are at least twice as likely as other segments to visit South Walton.

Lifestyle Clusters

% of Visitors

% of US Households¹

Index

US Households

Gulf State Families 38.60% 10.63% 363² 12,877,893

Beach Bound Couples 19.50% 7.14% 273 8,645,921

Sunset Seniors 15.04% 7.06% 213 8,545,005

Top 3 Clusters 73.14% 24.83% 295 30,068,819

One quarter of the households in the US (24.83%) account for three quarters of the visitors to South Walton (73.14%).

Gulf State Families - wealthy, highly educated, young couples with kids Beach Bound Couples - wealthy, highly educated, younger to middle-aged people without kids Sunset Seniors - wealthy, highly educated, older people, without kids

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2015 Lifestyle Segmentation Study

Lifestyle Cluster

% of Visitors % of US Households¹

Index

US Households

Gulf State Families 38.60% 10.63% 363² 12,877,893

Lifestyle Segments Income Urbanicity Kids Age Education

Winners Circle Wealthy Suburban Yes 35-54 Graduate +

Country Squires Upscale Town/Rural Yes 35-54 Graduate +

Blue Blood Estates Wealthy Suburban Yes 45-64 Graduate +

Fast-Track Families Upscale Town/Rural Yes 35-54 College Grad

Upward Bound Upscale Second City Yes 35-54 Graduate +

Kids & Cul-de-Sacs Upper Mid. Suburban Yes 25-54 College Grad

New Homesteaders Upper Mid. Town Yes 25-54 College Grad

Lifestyle Cluster #1, Gulf State Families, accounts for 38.6% of all visitors to South Walton. These households are 3.63 times as likely to visit South Walton.

They have kids, are wealthy, young, and highly educated.

¹Total number of households in the US used in PRIZM analysis is 121.1 million. ²Likelihood of visiting South Walton; 363 means that Gulf State Families households are 3.63 times more likely to visit South Walton.

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2015 Lifestyle Segmentation Study

Lifestyle Cluster

% of Visitors

% of US Households¹

Index

US Households

Beach Bound Couples 19.50% 7.14% 273² 8,645,921

Lifestyle Segments Income Urbanicity Kids Age Education

Movers & Shakers Wealthy Suburban No 45-64 Graduate +

God’s Country Upscale Town/Rural No 45-64 Graduate +

Country Casuals Upscale Town/Rural No 45-64 College Grad

Brite Lights Lit’l City Upscale Second City No <55 Graduate +

Executive Suites Upper Mid. Suburban No <55 Graduate +

Lifestyle Cluster #2, Beach Bound Couples, accounts for 19.5% of all visitors to South Walton. These households are 2.73 times as likely to visit South Walton.

They have no kids, are relatively wealthy, young to middle aged, and highly educated.

¹Total number of households in the US used in PRIZM analysis is 121.1 million. ²Likelihood of visiting South Walton; 273 means that Beach Bound Couples households are 2.73 times more likely to visit South Walton.

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2015 Lifestyle Segmentation Study

Lifestyle Cluster

% of Visitors

% of US Households¹

Index

US Households

Sunset Seniors 15.0% 7.1% 213² 8,545,005

Lifestyle Segments Income Urbanicity Kids Age Education

Upper Crust Wealthy Suburban No 45-64 Graduate +

Big Fish, Small Pond Upscale Town/Rural No 45-64 Graduate +

2nd City Elite Upscale Second City No 45-64 College Grad

Money & Brains Wealthy Town/Rural No <55 Graduate +

Lifestyle Cluster #3, Sunset Seniors, accounts for 15.04% of all visitors to South Walton. These households are 2.13 times as likely to visit South Walton.

They have no kids, are upscale, older, and highly educated.

¹Total number of households in the US used in PRIZM analysis is 121.1 million. ²Likelihood of visiting South Walton; 213 means that Sunset Seniors households are 2.13 times more likely to visit South Walton.

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2015 Lifestyle Segmentation Study

% of % of US Total US Lifestyle Segments Visitors Households Index¹ Households Winners Circle 7.22% 1.05% 685¹ 1,276,191 Country Squires 10.52% 1.83% 576 2,212,007 Blue Blood Estates 4.62% 0.92% 501 1,116,920 Movers & Shakers 5.81% 1.55% 375 1,876,932 God’s Country 5.11% 1.49% 343 1,804,117 Fast-Track Families 5.50% 1.65% 333 2,001,850 Upward Bound 5.77% 1.80% 320 2,183,221 Upper Crust 4.35% 1.45% 301 1,750,173 Big Fish, Small Pond 5.10% 2.16% 236 2,617,056 Country Casuals 3.62% 1.54% 235 1,862,666 Bright Lights, Lit‘l City 3.59% 1.70% 211 2,063,782 Second City Elite 2.68% 1.34% 200 1,621,883 63.89% 18.48% 22,386,798

¹Likelihood of visiting South Walton; 685 means that Winners Circle households are 6.85 times more likely to visit South Walton.

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12 lifestyle segments, representing 18.5% or all households in the US, account for 63.9% of all visitors to South Walton.

These segments are at least twice as likely as other segments to visit South Walton.

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