Memorandum. Date: May 16, DCVB Board of Directors. Reyn Bowman, President. Monthly Update OBJECTIVE: MARKETING
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1 Date: To: From: Re: DCVB Board of Directors Reyn Bowman, President Monthly Update OBJECTIVE: MARKETING PERFORMANCE INDICATORS (as of 5/6ths of the FY) Visitation up 6.8% Guest Rooms Available up 9.2% Lodging Occupancy Community-Wide-CY dn 4.0% Lodging Average Rate/Community-Wide-CY up 10.0% Lodging Revenue per Room/Community-Wide-CY dn 7.6% Visitor Tax Revenues/Community-Wide up 10.7% Visitor Literature Distributed DCVB up 3.1% Media/Publicity/Stories Assisted/DCVB up 23.6% Visitor Inquiries Fulfilled/DCVB up 151.6% Visitor Information Center Parties Serviced/DCVB dn 17.4% Conventions & Groups Serviced/DCVB up 5.8% Courtesy Bids/DCVB dn 22.6% Conventions & Groups Occurring/Community-Wide By Groups dn 3.7% By Attendance dn 5.7% By Room Nights dn 5.7% New Leads Distributed to Hotels/DCVB up 18.5% New Convention & Group Bookings/DCVB By Groups up 37.8% By Attendance up 59.6% By Room Nights up 58.5% New Convention & Group Bookings/Community-Wide By Groups dn 13.6% By Attendance dn 6.8% By Room Nights dn 6.8% Meeting Planner Satisfaction Survey (Scale of 1 to 3) up 3.8%
2 Page 2 VISITATION - REVENUE For the calendar year-to-date 2000, visitation to Durham has increased 6.8%, more than twice the projected national average. But the number of guest rooms is up 9.2% so occupancy is off 4%. The best indicator though is that the average rate for a room occupied is 10% higher than last year at this time and the gross revenue produced by a guest room whether vacant or occupied is up 7.6%. Revenue for the fiscal year-to-date is up 10.7%. The proposed line items budget and projections for FY 2000/2001 have been adjusted accordingly. BOOKINGS & SERVICES With 28 bookings for the month, representing 7,436 room-nights, group booking room-nights exceeded last year with nearly two month remaining and DCVB is closing in on its goal for FY 1999/2000. During April, DCVB conducted nearly 20 site inspections. This is a point in the booking process where prospects come to Durham to tour the community and evaluate sites firsthand. DCVB provided services provided 181 distributions to 90 groups meeting in April including full-blown registration assistance for 6 groups and follow up service calls on 118 groups. Travel Agents made 5,537 bookings representing room-nights. Bookings via the DCVB web site continue to increase, representing 63.64% of the Durham reservations on the WorldRes system. IATA NBR AGENCY NAME PCC CNTRY BOOKINGS ROOM NIGHTS REVENUE AMERICAN EXPRESS #749/AIT TV 3600 E UNIVERSITY, F-1100 PHOENIX, AX US $453, CARLSON WAGONLIT TRAVEL 1580 MERIVALE ROAD NEPEAN K2G 4B5 CA $421, AMERICAN EXPRESS NORTEL 227 FRENCH LANDING 2 ND FLOOR NASHVILLE, TN US $377, AMERICAN EXPRESS TSO 8415 DATAPOINT DRIVE 8 TH FLOOR SAN ANTONIO, TX US $369, AMERICAN EXPRESS RTP 2810 MERIDIAN PARKWAY, SUITE 160 DURHAM, NC US $354, AMERICAN EXPRESS NORCROSS TU 220 CENTENNIAL AVE, SUITE C PISCATAWAY, AZ US $190, TRAVELOCITY - UNITED STATES MAIL DROP AMERICAN BLVD. FORT WORTH, TX US $59, SATO TRAVEL CORPORATE CALL CTR 2811 S. 102NC STREET TUKWILA, WA US $51, WTP-SN/GLAXO CORP 1906 HIGHWAY 54, SUITE 100 F DURHAM, NC US $48, CARLSON WAGONLIT TRAVEL DALLAM COURT NORTEL TRAVEL CENTER WARRINGTON WA2 7LT GB $45,890.86
3 Page 3 MEDIA ASSISTS - VISITOR INQUIRIES DCVB assisted 19 journalists with stories and provided 22 media corrections to solidify branding and positioning. DCVB fielded 815, 811 web site (up 132%) from 52,108 visits (up 88.7%) and 20,051 visitors (up 144.9%.) OBJECTIVE: DIAGNOSTICS & PLANNING LINE-ITEM BUDGET Under separate cover you will receive a line-item version of the FY DCVB budget. In the interim since the preliminary budget in February, DCVB staff have scrubbed and evaluated each item. Expanded areas have been driven by the tactics in the Marketing Blueprint distributed at the April meeting. The line-item budget will be reviewed at both the May and June Board meetings. MONTHLY LODGING OCCUPANCY & ADR REPORT DCVB has completed work with Smith Travel Research to 1) include Durham properties not heretofore included in the STR national survey, including Bed & Breakfast Inns and 2) customizing the STR output to be as close as possible in format to the report DCVB has conducted since A January-March report will be available next week and compared to the existing report for any tweaking. Lodging properties are being polled about the need to continue a quick snap shop using the old form at the end of each month. The only drawback to the STR report is that it is a month-delayed. DOWNTOWN MASTER PLAN The Downtown Master Plan has been approved by the Blue Ribbon and Downtown Advisory Committees and is now going to the City Council for adoption. A copy is enclosed. You may find particularly interesting, the implementation schedule, pages 23 through 41. ANNUAL IMAGE/IDENTITY SURVEY The annual survey of opinions in Durham, Wake and Orange counties has been fielded and will be complete in two weeks or so and should be available for the June meeting. Again, DCVB partnered with DDI and the Digiton Group and many of the questions are turned toward Downtown.
4 Page 4 RUNZHEIMER SURVEY Each year, DCVB subscribes to surveys that measure the cost of travel to various destinations in Durham s competitive set. The data helps us measure the cost of a room and each of three meals a day and airport/cab costs: Durham Raleigh Chapel Hill Charlotte Greensboro First Class $ $ $ $ $ Economy $74.00 $82.00 $81.00 $61.50 $70.00 B-fast $11.80 $9.75 $12.25 $10.75 $9.35 Lunch $11.15 $9.90 $11.65 $10.55 $9.70 Dinner $26.80 $25.35 $24.20 $26.35 $22.50 Per Diem $ $ $ $ $ The information is one of several factors used as a determinant of demand pressure. Price is a reflection of either constricted supply as in the case of Chapel Hill or high demand/high quality services as in the case of Durham. BLUE COLLAR Blue-collar town is a soft pejorative used by the media for Durham when comparing Raleigh, Durham and Chapel Hill. While Durham is proud of its diverse, blue collar heritage, for some time now, Durham has had a smaller percentage of blue collar jobs (20.5%) than Raleigh/Wake County (22.3%) and only a slightly lower percentage of white collar jobs at 62.1% than Chapel Hill/Orange County with 63.2%. North Carolina as a whole is 50.9% white collar and 32.7% blue collar. Source: Demographics USA, County Edition. Often the source of the misimpression nationally, is media here in the Triangle which may be using old stereotypes. OBJECTIVE: PARTNERSHIPS & ALLIANCES NCACVB MARKETING COMMITTEE As you know, CVB s pioneered regional or coop marketing back in the 1970 s. Different than more traditional forms of economic development, CVB s evolved from fixed groups of counties or geographic areas and now morphs into themed coops such as golf, civil war sites, minor league baseball and gardens. I am pleased that Shelly Green, our EVP Marketing is going to head the Marketing and Communications Committee for NCACVB, a collective of nearly 50 of NC s 100 counties.
5 Page 5 CHAMBER MEMBERSHIP DRIVE DCVB was one of several companies to volunteer employees to help make calls to build the Chamber s membership. IACVB COMMITTEES DCVB has participated recently in a futures study by the IACVB Foundation on the future of CVB s and Destination Marketing. In addition, DCVB has served on a committee to formulate national demographic surveys that help DCVB and other CVB s set benchmarks. ORIENTATIONS DCVB has conducted recent orientations for new marketing teams at Northgate Mall and the Museum of Life and Science and the entire staff of the Generations Company and its Candlewood lodging property which opens this summer. OBJECTIVE: PERSONAL & PROFESSIONAL DEVELOPMENT DUKE S DELTA PROGRAM DCVB is looking to establish a strategic relationship with Duke s Delta program which provides consultants to major corporations. Does anyone on the Board have a relationship with the director, Marilyn Hartman?. STAFF UPDATE Carolyn Carney has returned part-time following her heart attack and is a energetic as ever. DCVB is still running short a Director of Technology. There is a lot of demand for people with this experience nationwide but recruiting efforts have generated some good prospects. Consultants have verified that our job summary, job description, salary range and recruiting message are fine. It is just a very difficult market right now.
6 Page 6 TRAINING The management team underwent training on the performance review process and staff members experienced training in gender communications, Photoshop, Excel and Access over the past month. OBJECTIVE: BOARD FACILITATION AUDIT RFP Enclosed is a copy of the RFP and a list of the audit firms to which it was sent. By the cut-off date, DCVB has received responses from the following: Robinson & Fairey: Nelson & Co. Praigg & Praigg $6975 for FY '99-00 $7195 for FY '00-01 $7395 for FY '01-02 $8,500 - $9,600 per year $18,000 per year CHAMBER LEGISLATIVE COMMITTEE DCVB made a presentation on the prepared food tax guidelines to a sub-committee of the Chamber s Legislative Committee as part of the on-going build-up to September when discussions will begin on what will be submitted to the 2001 session. ADVISORY BOARD Enclosed is a memo to the Durham County Board of Commissioners. It provides the backup and explanation for the appointment of companies based at RDU and/or based in Durham but with non-resident owners/managers. The Board of County Commissioners will address the issue on the 22 nd. MAY BOARD MEETING This month s meeting will be in the Hicks Building in the West Village project. The Hicks Building is on the corner of Fernway and Fuller. There is parking along the streets or worse case in the parking lot at the Coopers Building further up Fernway (between Fernway and Morgan). If you come at 4 p.m., there will be a tour of two of the units. The regular meeting will begin at 4:30 p.m.
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