The URL can be used to link to this page

Home My WebLink AboutParticipate in CVA Air Svc Cooprtve Advertng Campgn CITY OF PALM DESERT STAFF REPORT REQUEST: CONSIDERATION OF A REQUEST FOR PARTICIPATION IN THE CONVENTION AND VISITORS AUTHORITY (CVA) AIR SERVICE COOPERATIVE ADVERTISING CAMPAIGN SUBMITTED BY: Kristy Kneiding, Marketing Manager DATE: July 8, 2010 CONTENTS: Air Service Cooperative Campaign Outline Draft Marketing Committee Minutes: June 15, 2010 Recommendation By Minute Motion: Concur with the recommendation of the Marketing Committee and support the CVA Cooperative Air Service marketing campaign in the amount of$25,000. Funds are included in the Marketing Budget, Account No. 110-4417-414-3221. Executive Summary The Palm Springs Desert Resorts Convention and Visitors Authority is once again undertaking an air service development campaign. This campaign, now in its fourth year, promotes the long-term goal of growing airline service to the desert resorts through the continuation of a cooperative partnership between the CVA, the cities, and the airport. The program includes partnering with Alaska Airlines and WestJet, which covers the western Canadian market (Vancouver, BC; Edmonton, AL; and Calgary, AL) as well as the Pacific Northwest including Seattle, WA; Portland, OR; and San Francisco, CA. The media plan for the campaign includes print, radio, public relations, giveaways and promotions, as well as an online component. Participating cities and hotel partners will receive exposure through all mediums including mentions on the CVA's micro-website developed specifically for this program. The total cost of the campaign is $250,000 to $300,000. Of that amount, the CVA is contributing $150,000 and is looking to its partner cities for $25,000 each to expand the program. Currently the program is set to run October-November and January-February. Staff recommends concurring with the Marketing Committee to support the CVA air service cooperative marketing campaign in the amount of $25,000. Funds are available in the current Marketing Budget, Account No. 110-4417-414-3221. Staff Report Request for funding of the CVA Air Service Cooperative Campaign July 8, 2010 Page 2 of 2 Backqround In this program, the CVA places advertising and coordinates promotions in conjunction with discounts offered by Alaska Airlines and WestJet. While trying to achieve the goal of increased air service, the Desert Resorts also receive both advertising and promotional benefits from this type of program. Alaska Airlines and WestJet support this campaign by offering discounted fares not just for travelers originating in the targeted cities, but from all locations flying into Palm Springs. They also promote the packages in their advertising, to their email databases and provided promotional tickets for use in contests and sales mission. Alaska's support is estimated at more than $62,000 and WestJet's support is more than $127,000. Alaska Airlines continues to be the largest carrier into the Palm Springs Airport. WestJet has invested in the area and is now offering year-round service to and from its hub, Calgary, AL. This expansion opens up summer access to the Desert Resorts via Canada. In addition to benefiting from additional air service, this cooperative marketing opportunity also stretches Palm Desert's marketing dollars to a desirable, targeted area (Western Canada and the Pacific Northwest) that were eliminated due to budget reductions. Staff also would pursue additional promotional opportunities for Palm Desert such as pages on the tourism website, social media pages, and search engine support. Fiscal Analvsis By participating in the co-op, Palm Desert will benefit from the overall marketing of the entire area that occurs with this type of promotion, as well as benefit from the results of increased air service over the next few years. Denial of this request would affect the amount of exposure for the region, and Palm Desert would not be included in any of the promotional materials or added value opportunities. The cost is a one-time fee of $25,000. Funds for this program were included in the Fiscal Year 2010/11 Marketing Budget, Account No. 110-4417-414-3221. Submitted By: Department Head: . , . � , � Kristy Kn iding, �ager sti McCarthy, ACM f evelopment .�d/� CIT COUN ILA�'TION � � � API'RO , �� !�9�,"i't�?� RF,CEIVED �)�y��,� Paul S. Gi n, Di ec Finance — MECT[NG DATE � � � 01 v Ap�rov I �� ; AYES:�2��tF � �� i �r � NOES: Joh . Wohlmuth, City Manager ABSENT: � ABSTAIN: ti� g:\rdalkr ty kneidinglword data\staff reportsmemoslcva�2010 air service coop r�RIFIED BY: Originat on Fite with City Clerk s Office � .:� Palm Springs C�es�rf ��sort �omm�niti�s _..�. e N� ;� % � � � �~ ; < � C:_ �..� ��.l �lE_ N ..C. IC� N AC�IC� �� E �� I �fC..., � .� l� l..l _( --1 �-..� � � .�. �;. Air Service Development Campaign The CVA, in partnership with participating PSDRC CVA cities, Palm Springs International Airport (PSP), and select Airline Carriers,will launch the fourth year of the Air Service Development Campaign. In this campaign,the destination will be promoted as a premier vacation area with activities and points of interest for a diverse market at an affordable rate. The program supports the growth of air service to the destination. I. Goal a. Maintain and ultimately grow air service to the destination II. Objective a. To promote PSDR as an affordable and convenient travel destination III. Target Audience a. Geographic Target: i. Western Canada (WestJet):Vancouver, BC; Edmonton,AL; and Calgary; AL ii. Pacific Northwest(Alaska Airlines): San Francisco, CA; Portland, OR; and Seattle,WA b. Demographic Target: Families and couples with HHI $150k+ IV. Budget a. CVA budget: $150,000/ Revenue Goal: $100,000 i. Co-op funds to be collected from airport and city partners V. Co-op Opportunities a. Participation includes City and Hotel partner exposure on campaign microsite, creative (radio/print), radio promotions, and PR opportunities VI. Media Plan a. The CVA will work closely with air carrier affiliates and city partners to develop a campaign that includes print, radio, pr, promotions and online VII. Preliminary Campaign Timeline a. Western Canada (WestJet): September—December 2010 b. Pacific Northwest (Alaska Airlines):January—March 2011 VIII. Fulfillment a. The Call to Action for this campaign will be a dedicated microsite featuring participating cities and special offers from participating hotels IX. Measuring Success a. This campaign will be measured by PSP passenger counts, load factors, flight frequencies and overall air carrier partnership developments b. The campaign will also be monitored by microsite traffic and hotel bookings f ALM DESER�" PALM DESERT MARKETING COMMITTEE PRELIMINARY MINUTES Tuesday, June 15, 2010 —2 p.m. Administrative Conference Room I. CALL TO ORDER Sara O'Flynn called the meeting to order at 2:03 p.m. II. ROLL CALL Members Present: Members Absent: Sara O'Flynn, Chair Lee Morcus Emily Bird-Hrivnak, Vice Chair Theresa Maggio Marlane Wolf Stephanie Loog Michael Shimer Kimberly Bowers . Staff/Others Present: Jim Ferguson, Councilmember Justin McCarthy, Assistant City Manager Kristy Kneiding, Marketing Manager David Hermann, ManagementAnalyst Jane Stanley, Recording Secretary Jessica Stephens-Walke, PSDRCCVA Mark Graves, PSDRCCVA Mark Kiehl, Palm Springs Airport I11. ORAL COMMUNICATIONS None. IV. CONSENT CALENDAR A. MINUTES OF THE MEETING OF MAY 18, 2010. Michael Shimer moved, by Minute Motion, to approve the minutes of the May 18, 2010, meeting as presented. Motion carried by unanimous vote. V. CONSENT ITEMS HELD OVER None PRELIMINARY MINUTES PALM DESERT MARKETING COMMITTEE JUNE 15, 2010 VI. NEW BUSINESS A. PRESENTATION AND CAMPAIGN REQUEST BY PSDRCCVA —AIR SERVICE CO-OP MARKETING Mark Graves and Jessica Stephens-Walke from the Palm Springs Desert Resorts Communities Convention and Visitors Authority (PSDRCGVA) were in attendance to make a presentation regarding the Air Service Co-op Marketing opportunity. The proposed cooperative partnership is between the CVA, the member cities, the Palm Springs International Airport, WestJet and Alaska Airlines. The program began in 2007 with Alaska Airlines, and WestJet was added last year. The goal is to maintain and grow air service with target markets of western Canada and the Pacific Northwest. The proposed marketing timeline is August to November 2010 in Western Canada, and October 2010 and January to February 2011 in the Pacific Northwest. The proposed funding is $150,000 from the CVA and $25,000 from each participating city for a total of$250,000 to $300,000. Mark Kiehl from the Palm Springs Airport mentioned that this campaign is supported by the airport because it targets the biggest markets and the primary carriers. WestJet has seen year over year growth in traffic, and starting June 2010 is offering year-round flights to Canada. Upon question, Mr. Kiehl stated that according to surveys taken, $75 million is spent yearly in the Coachella Valley from the Canadian market. Mrs. Walke outlined the proposed media for the campaign, including print, online, in- flight and public relations. Additionally, travel trade and outdoor advertising will be added in western Canada, and radio ads will be used in the Pacific Northwest. Added value from the airlines will include "preferred partner" media rates, discount offers for bookings, promotional tickets, and airline website homepage exposure. Mr. Graves added that the key partners have honed some effective strategies from the past years' campaigns. Ms. Kneiding said that in the past this co-op opportunity had a cost of$50,000, and it was just with Alaska Airlines. Mrs. Walke anticipated four to five valley cities will participate in this marketing opportunity. She added that the creative portion will be presented to the participating cities for their approval, and a report of the results will be available at the end of the campaign. Marlane Wolf moved, by Minute Motion, to approve staff recommendation to support the CVA air service development campaign in the amount of$25,000. Motion was seconded by Michael Shimer and carried 5-0. B. CVA/ CMG / CTTG CO-OP ADVERTISING PROGRAM Mr. Graves and Mrs. Walke presented this advertising opportunity with the California Travel and Tourism Commission (CTTC) and Custom Marketing Group (CMG). The 2