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HomeMy WebLinkAboutSUPPTL INFO - CVA Marketing Campaign PALM SPRINGS DESERT RESORT COMMUNITIES CVA 2007 SPOT MARKETI AIR SERVICE CAMPAIGN Long Term Objective: To grow air service to the destination Strategy: Develop a cooperative partnership between the cities, airport, and CVA Description: This experience-driven campaign was designed to attract tourists seeking the perfect getaway package, which was achieved through a spotlight focus on three main themes: • Girlfriend's Getaway ■ Romantic Getaway ■ Unlimited Play Golf Getaway Through the use of print, broadcast advertising, websites, and electronic mail, we penetrated the following carefully selected markets, which amongst other criteria, offer direct flights from our airline partners to PSP: ■ Portland (Alaska Airlines) ■ San Francisco (Alaska Airlines) • Seattle (Alaska Airlines) ■ Chicago (American Airlines) Media exposure began in March 2007 and continued through September 2007. Along with pre- recorded spots, radio stations featu�ed "Palm Springs Desert Resorts Getaway Packages" as prizes for on-air, special event, and online contests. Each station heavily promoted these contests on their highly trafficked websites. Each print publication supplemented the campaign with website banner ads and in some cases included advertorials as added-value. Creative was submitted to publications based on their primary audience and geographic location. The overall goal of our advertising was to entice consumers to purchase vacation packages on American Airlines Vacations and Alaska Air Vacations. All advertisements directed consumers to splash pages on each of the airline's websites where they were able to purchase vacation packages to the destination. Co-op: CVA contribution: $200,000 City Co-op: $350,000 Alaska Airlines Newspaper Insert Co-op: $10,000 Tota/Co-op: $560,000 Expenses: Media: Chicago, Portland, San Francisco, and Seattle Investment: $389,097 Reach: 63,231,412 Added Value: $676,376 Total Value: $1,065,473 CPM: $6 Support: CMG Newspaper Insert Alaska Air Co-op: $75,000 Twin Advertising: $40,000 Edelman PR: $56,000 Total Expense: $560,097 ROI: Our campaign is currently being measured by airline statistics from American Airlines Vacations, Alaska Air Vacations, and Paim Springs International Airport (PSP). The campaign has proven to be effective as all eight cities have come together and are successfully reaching our goal of increasing air service to the destination. To begin to see the full return on this project, it may take several years. Currently, we are already beginning to see positive results from our air carriers. Airline feedback is positive, and they would like to see this program continue since the YOY demand for travel to the destination is increasing. Air Service Progress: July 1, 2007 Horizon Air, Alaska Airline's sister company, introduced non-stop air service between Seattle and PSP November 4, 2007 -April 6, 2008 Horizon Air will offer new non-stop air service between San Jose and PSP November 4, 2007 -Aprif 6, 2008 Horizon Air will add non-stop air service between Portland, Ore. and PSP to supplement Alaska Airline's seasonal flight between the two cities. November 4, 2007 —May 17, 2007 WestJet will be adding 17 weekly departures from PSP. This is an increase of 5 weekly departures from last winter. Alaska Airlines From January 1 through September 30, Alaska Airlines has transported 30,505 more people over last year. Vacations hotel room nights are up 5°!0, which is a huge improvement since the first half of the year was down by 23% from last year. Passenger forecasts on vacations packages are up 45%for October through December. Overall, we have increased the desire for people to travel to Palm Springs and stay longer (average of 4.05 nights). As of 9/30/2007 Passenge�Counts: 333,253 YOY Increase: +9% (30,505 passengers) Room Nights Booked: ■ Prior to the start of this promotion there were 299 room nights booked, which was down 23% from last year. ■ As of 9-30-07, we have booked 1015 room nights, which is up 5%from last year. • Room nights are expected to increase for the months of September through December. Vacations Booking: ■ October— December bookings are up 45% YOY (205 in 2007 v. 141 in 2006) Best Selling Packages: ■ #1 Hyatt Grand Champion ■ #2 Desert Springs, A JW Marriott ■ #3 Wyndham Palm Springs Statistics: ■ 45% of business to PSP is through alaskaair.com • 55% of business to PSP is through call centers ■ Average passengers per booking: 2.5 ■ Average length of stay: 4.05 nights ■ Highest booked departure cities to PSP • #1: Seattle • #2: Portland • #3: Vancouver Airline Support: • www.alaskaair.com/pspescapes ■ Splash page announcing and describing promotion ■ Link on homepage of website, which directs viewers to Palm Springs area splash page ■ Direct link for viewers to go to Palm Springs area splash page ■ Exposure on Insider Newsletter, which is e-mailed to 1,000,000 frequent flyer card holders ■ Exposure in June Travel Agent Newsletter, which is e-mailed to 10,000 travel agents ■ Co-op support by purchasing back panel of 8 panel newspaper insert to be distributed in Seattle, San Francisco and Portland ■ Inclusion in Bank of America (Alaska Airlines Credit Card) statement mailed out to 1.8 million card holders ■ 10% direct consumer discount for passengers who book online ■ Alaska Air provided the CVA with 48 promotional tickets for radio giveaways American Airlines ROI American Airlines Vacations is currently gathering data in support of our promotion. Although the carrier is unable to provide statistics at this time, they have said that they have seen an overall increase in travel to the destination. Airline Support: ■ www.aavacations.com • Splash page announcing and describing promotion ■ Banner ad on homepage of website, which directs viewers to Palm Springs area splash page ■ Splash page for Palm Springs on "Featured Destinations" page ■ American Airlines will award 1,000 bonus ADVANTAGE miles to any property booked online ■ American Airlines provided the CVA with 20 promotional tickets for radio giveaways Representation: Palm Desert Chicago Public Relations Inclusions Media Luncheon: Educated journalists of the Palm Springs Area and promotional packages for the Chicago Market that can be purchased through American Airlines Print Inclusions Chicago Magazine Chicago Tribune Magazine Chicago Social Magazine Radio Inclusions WLIT The Living Desert Desert Adventures WKSC The Living Desert Desert Adventures Portland Print Inclusions Ultimate Magazine Portland Monthly Oregonian Travel Brochure Portland Oregonian Newspaper Insert Radio Inclusions KINK FM Desert Springs, JW Marriott The Chop House The Living Desert Enterprise Rent-a-Car Classic Club Desert Willow KUPL The Falls Prime Steakhouse The Living Desert Desert Adventures San Francisco Print Inclusions 7X7 Magazine San Francisco Magazine SF Weekly San Francisco Chronicle Newspaper Insert Radio Inclusion KBWF Classic Club Desert Willow Pichana B�azilian Bar& Grill The Living Desert Enterprise Rent-a-Car KOIT The Living Desert Desert Adventures KLYD The Living Desert Seattle Print Inclusions Seattle Magazine Pacific Northwest Magazine Pacific Northwest Golfer Seattle Times Newspaper Insert Radio Inclusion KMPS Pichana Brazilian Bar & Grill The Living Desert Enterprise Rent-a-Car Desert Willow KWRM Enterprise Rent-A-Car Classic Club Pichana Brazilian Bar 8� Grill The Living Desert Desert Adventures PRELIMINARY MINUTES PALM DESERT MARKETING COMMITTEE OCTOBER 16, 2007 free listing in the Dining Guide; however, each restaurant also has the opportunity to purchase an ad at the rate of$500. That ad purchase includes the promotional items available from Desert Publications, which has the restauranYs ad on the Branded Menu Lamp Cards and Branded Mint Boxes. Upon question by Ms. O'Flynn, Ms. Kneiding respo�ded that the City's financial commitment last year was the same as this year's request of$46,000. Upon question by Mike Osgood, Ms. Kneiding responded that her staff keeps track of the restaurants opening and closing throughout the year. Ms. Kneiding added that the $46,000 was in the 2007/08 Marketing budget. Ms. Bird-Hrivnak moved, by Minute Motion, to approve the contract with Desert Publications to produce the dining guide in an amount not to exceed $46,000. Motion was seconded by Ms. O'Flynn and carried 40. B. PSDRCVA SPOT MARKETING CO-OP REQUEST WOODY PEEK, Vice President Travel Industry Sales & Membership with the CVA, presented the Spot Marketing Co-op request. Mr. Peek elaborated on the CVA's partnership with Alaska and American Airlines. Those partnerships have proven ta be beneficial for both the CVA and the City of Palm Desert. � � The industry overall felt that they needed to do something to address � strengthening its relationship with the airlines and to help grow service into the desert. The CVA implemented a program and partnered with Alaska and � American Airlines. The funding was around $400,000 with an additional trade Qadded value, i.e., golf courses, hotels and product. They implemented a $1.66 million ad campaign in four cities. The air carriers were telling the CVA that its investment would need to be ongoing and would take at least 18 to 24 months to see results from its advertising. Since partnering with the CVA, Alaska Airlines passenger load was over 30,000 year-to-date. Alaska was very pleased. In fact, beginning July 1, 2007, they gained non-stop service from Seattle to Palm Springs running through the summer, which they have never had before. They also gained San Jose as a service area. The CVA sat down with Alaska and looked at the bigger picture of the program and Alaska wanted to continue the partnership into the future. Alaska wanted the CVA to add Vancouver as one of its cities because Vancouver had increased booking levels as one of the top three cities that business was coming from during the promotional period. While they didn't necessarily do this to generate hotel room nights they went into the progsam with 299 room nights on the books and to date they have over 900 room nights on the books. So it has positively impacted room nights. Alaska has seen a direct relationship with its passenger loads as a result of advertising with the CVA. The CVA was putting together its programs for next year and they have spoken to the majority of the cities that partnered last year, along with the airport, and they would like to continue this program with Alaska and possibly American at the same level as last year. Alaska received 17 aircraft at the end of the year from a relationship that will end with Frontier Airlines. They 2 PRELIMINARY MINUTES PALM DESERT MARKETING COMMITTEE OCTOBER 16, 2007 have begun to phase that aircraft into their schedule and were now running Portland to Boston and Portland to Miami, which will enable them to extend to the east coast. Brad Walker, Vice President of Sales and Marketing for Alaska Airlines, has taken a vested interest in the destination. He sits on the CVA's Advisory Board and Mr. Peek believed they have the beginnings of a very good relationship with Alaska Airlines. Mr. Peek elaborated further on the positive feedback the CVA has been given by Alaska Airlines and American. The publicity and increased travel to the Coachella Valley through this program has warranted the CVA's desire to continue its relationship with the airlines. Ms. Kneiding stated that from her perspective, this program was attractive in that not only were we building service, but we were advertising and promoting the entire destination as well. The promotional benefits have turned $400,000 into a million dollars worth of advertising. It takes a lot of time, effort and strategy to do that. She felt that last year's campaign from staff's level was just the beginning. There has been a big impact, both through the hotels as well as the airline service from this program. The current opportunity with Alaska and the opportunity to go into the east coast market, or to be considered for an east coast flight service, are huge for the Coachella Valley. Ms. Kneiding stated that the City did not budget funds for this program this year because they wanted to see the results from last year's contribution. All evidence shows that the program has proven beneficial to the City of Palm Desert. Upon question by Mr. Shimer, Ms. Kneiding responded that the City's contribution last year was $50,000. Mr. Peek said that La Quinta, Indian Wells and Rancho Mirage would be continuing its participation in the program this year in the amount of$50,000. Ms. Kneiding stated that two cities came in at $25,000 and as a result those two cities were not able to be included in all three markets. Contribution of $50,000 allows participation in all three markets. Mr. Peek said they have dialogue from Indio that in 2008 they will be contributing $50,000, so all eight cities will be in the airport program. Ms. O'Flynn commented that the numbers of participants in July and August was very exciting. Upon question by Mr. Shimer, Mr. Peek responded that Alaska Airlines was interested in Vancouver, Seattle, Portland, and San Francisco markets. In the past week and a half they had been working with Alaska Airlines, West Jet and BCAA (Canadian companies) to develop programs going into next year. The fong-term stay rentals reported an increase; however our hotel community was not experiencing that so the CVA was asked to develop a stronger message in the Canadian market for the hotels, which they will definitely do. The majority of 3 PRELIMINARY MINUTES PALM DESERT MARKETING COMMITTEE OCTOBER 16,2007 people visiting from those areas were looking to relocate or purchase a second � home. Ms. Kneiding suggested that the CVA attend Marketing Committee meetings quarterly for the purpose of updating the Committee on activities happening with regard to tourism. She felt it was important to keep the Committee informed. � Mr. Peek responded that he would welcome that opportunity. Ms. Kneiding stated that this item would go before City Council on November 8, 2007, meeting. Mr. Shimer moved, by Minute Motion, to approve the CVA spot marketing campaign in the amount of$50,000. Motion was seconded by Rick Darius and carried 4-0. C. PUBLIC RELATIONS ACTIVITIES JUNE - SEPTEMBER Ms. Kneiding gave an update on the Nancy J. Friedman activity reports. There was an article in Forbes Life Magazine featuring Mike Osgood and pictures of Desert Willow stating that Desert Willow was a facility ahead of the game in green building. Included with the staff report was a listing of inedia placement. Ms. Kneiding announced that a writer from the LA Times visited Desert Springs Marriott unannounced and had great things to say about the hotel. She congratulated the Marriott on a job well done. Ms. Bird-Hrivnak stated that the article would be published on the 28'h of October in the travel section. Mr. Shimer moved, by Minute Motion, to receive and file the public relations activities information. Motion was seconded by Mr. Darius and carried 4-0. D. NANCY J. FRIEDMAN PUBLIC RELATIONS CONTRACT Ms. Kneiding reported that the City had completed its first year with the Nancy J. Friedman Agency. Ms. Gilligan, Ms. Kneiding, and Ms. Bird-Hrivnak met with Nancy Leonard, Regional Marketing Director for Nancy J. Friedman Agency, at the Desert Springs Marriott. The City and the Marriott were pleased with the results of this past year's public relations campaign. Staff was also pleased with the amount of time that the Nancy J. Friedman Agency was spending on the City's account and suppoRed an extension of its contract for another year at the same rate of$5,000 per month. Upon question by Ms. O'Flynn, Ms. Kneiding responded that $5,000 per month was the same amount as last year. Mr. Shimer moved, by Minute Motion, to approve the Nancy J. Friedman Public Relations Contract in the amount of $5,000 per month for a one-year period. Motion was seconded by Ms. Bird-Hrivnak and carried 4-0. 4