CALIFORNIA TRAVEL & TOURISM COMMISSION · CTTC Leadership •Governor Arnold ... 5 Year Strategic Plan. Elements of the Plan: •Review Mission •Guiding Priciples ... Creative not

CALIFORNIA

TRAVEL & TOURISM

COMMISSIONCALTIA CONFERENCE ON TOURISM

JUNE 8, 2010

Caroline Beteta

President & CEOCalifornia Travel & Tourism Commission

CTTC Leadership

• Governor Arnold Schwarzenegger• Secretary of the Business, Transportation and

Housing Agency and CTTC Chair• CTTC Commissioners

CTTC VICE CHAIR

CTTC VICE

CHAIR

CTTC Budget: History & Outlook

0

5

10

15

20

25

30

35

40

45

50

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

BUDGET NEW RENTAL CAR ASSESSMENT

• Historically unpredictable annual budget

• inconsistent legislative funding

• inflationary pressures

• New legislation beginning of 7 years spending totaling $350 million

• Accommodations contribution to assessment prior to

2007 was approximately $4.6 million or 62%

• Passenger car rental industry contribution will contribute

an anticipated total of $240 million through 2013

Big Return on Small Investment

Today’s Situation

Analysis:

California Outlook

2009 Year-End Summary

• Travel Spending = $87.7 billion -10%

• State and Local Taxes= $5.3 billion -10%

• Employment= 881,000 -5%

CA Hotel Occupancy

Source: Smith Travel Research

• Still down from 2 years ago, but 2010 is up from 2009

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

Vs. Last Yr Vs. 2 Yrs Ago

20102009

CA Hotel Room Rates

Source: Smith Travel Research

• Room rates have not recovered yet

-16.0%

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

M J J A S O N D J F M A

Vs. Last Yr Vs. 2 Yrs Ago

20102009

CA Visitor Outlook

Source: Tourism Economics, April 2010

3.7%

5.7%

2.7%3.6%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

2008 2009 2010 2011

Year

/Ye

ar C

han

ge

International Domestic

Forecast

CA Tourism Spending Outlook

Source: Tourism Economics, April 2010

6.9% 8.2%5.0%

9.2%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

2008 2009 2010 2011

Year

/Ye

ar C

han

ge

International Domestic

Forecast

“The Sig Six”

• Sustainable Tourism

• Customization

• Transumerism

• Blur Between Business and Leisure

• Geotourism

• Value – Value - Value

2010………

Digging out of the hole!

5 Year Strategic Plan

Elements of the Plan:

• Review Mission

• Guiding Priciples

• Key Strategies

• S.W.O.T Analysis

Mission:

To develop and maintain marketing programs – in partnership with the state’s travel industry – that keep California top-of-mind as a premier travel destination.

California is one of the leading travel destinations in the country. In 2009, travel and tourism expenditures total $87.7 billion annually in California, support jobs for 881,000 Californians and generate $5.3 billion in state and local tax revenues.

Timeline

March 11, 2010

Kick-off Meeting

March 29, 2010

Marketing Advisory

Committee Meeting

April 14-15, 2010

Destination Day and

Commission Meeting

May 3, 2010

Second Meeting of

the Task Force

August 2010

Third Meeting of the Task

Force

October 2010

Commission Meeting

Environmental Factors

2006-07

• The Recession

• Mainstream of the Internet

• Networking Marketing Effort Targeting International Visitors

• The Departure of the Governor

• Currency Fluctuation

• Crisis – Wildfires, SARs

2010-11

• Discouragement of Travel

• Hassle of Air Travel

• Loss of Local Marketing Dollars

• Perception of California Affordability

• Increases Domestic and International Destination Competition

• Prolonged Recession

• California’s Budget Problems

• California Has Influence on TPAExecution

Strategic Marketing Plan „10/11

Key Themes:

1. Preserve and Innovate

2. Addition of Social Media

3. New Brand Advertising in Australia replaces efforts in Japan

4. Integration of Bought, Owned & Earned Media and respective plans

BOUGHT

EARNEDOWNED

FY ‟10/11 Work Plan –Integrated Team

Expand CTTC‟s Touch Points

Lifecycle Stages

SEM

Custom Sponsorships

DISCOVER PLAN BOOKRELIVE &REPEAT

PREPARE TRAVEL

Website Enhancements

Social Media

eCRM CampaignsTravel Planner

BRAND•Print

•Content Integration

Online Advertising

PR

California Brand Communications Ecosystem

TV Advertising

PRIMARY ROLE:

Awareness/ Inspiration

Emotional Connection

TV Content Integration

PRIMARY ROLE:

Inspiration/ Discovery

Emotional Engagement

Added Value

PRIMARY ROLE:

Awareness/ Inspiration

Message Extension

Magazine Advertising

PRIMARY ROLE:

Inspiration/ Discovery

Deeper Brand Story

Public Relations

PRIMARY ROLE:

Inspiration/ Discovery

Message Extension

Online Advertising

PRIMARY ROLE:

Discovery/ Planning

Insider Insights

Social Media

PRIMARY ROLE:

Discovery/ Planning

Insider Engagement

VCA.com/ Publications

PRIMARY ROLE:

Discovery/ Planning

Insights & Information

Higher Reach/Lower Engagement Lower Reach/Higher Engagement

Domestic Budget FY ’10/11

Brand Advertising $ 19,035,500

Web Interactive $ 3,675,000

Co-op Promotions $ 920,000

Publications $ 1,025,000

Communications $ 2,455,000

Travel Trade $ 70,000

Research $ 640,000

Welcome Center $ 130,000

TOTAL $ 27,950,500

FY ‟10/11 Domestic Market Coverage & Spending

Encourage More International Inbound Travel

FY ‘10/11 International Budget

United Kingdom $ 6.5 million

Canada $ 2.4 million

Australia $2.5 million

Japan $ 1.7 million

China $ 1 million

Germany $ 1.25 million

South Korea $ 800,000

Mexico $ 950,000

Secondary/Emerging $ 600,000

Global Programs $ 1.06 million

TOTAL $ 18,760,000

12 International Offices

USA, UK, Australia, Japan, Germany, Mexico, S. Korea, China, India, Brazil, France, Italy, Scandinavia

Brand Advertising

• Increase non-resident and resident leisure travel visits

• Leverage "Diversity" positioning

• Communicate CA's core attributes and compelling point-of-difference:

• "California Attitude"

• Desirable eclectic lifestyle

• Unique culture

• Diversity is woven together by spirit

California Seen Around the World…

NEW

Brand Advertising in USA, Canada, United Kingdom, Japan & Australia

Video: “Serious Business”

Video: “You‟ll Be Back”

Video: “Ambitious”

Behind the Scenes…

Reaching Viewers in New Ways

Ellen is the destination for fun and laughter on TV

Ellen DeGeneres Show

Video: Social Media

Social Media

Lynn Carpenter

Vice President, MarketingCalifornia Travel & Tourism Commission

Digital Plans For 2010/2011

FOUNDATIONAL CAMPAIGN EXTENSION PARTNERSHIPS

Continue our social media outreach on major platforms

Digital support and extension for major brand campaigns (i.e. CA Calling, Wine & Food, Snow, Custom Content Integration, etc.)

Explore partnerships:

• Southwest Airlines

•Online Travel Agencies

• Custom Ad Networks

• Conde Nast

• Facebook

2010/2011 Digital Strategy

43 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

The Social Technographics Ladder Now Includes ConversationalistsJanuary 2010 “Introducing The New Social Technographics®”

44 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

24% more travelers engage in social media versus two years ago

Creators

24%

Critics

37%

Collectors

20%

Joiners

59%

Spectators

70%

Inactives

17%

Increasing social

media engagement

Q1 2008 Q1 2010

Base: US online leisure travelers

Source: Forrester’s North American Technographics® Travel Online Survey, Q1 2008, Q 1 2010

Conversationalists

33%

17%

n/a

24%

8%

27%

49%

42%

15%

39%

23%

9%

53%

54%

28%

California Fives

• Embodies the Abundance theme

• Promotes content and destinations

• Drives engagement, usage and interactivity

• Mechanism to drive lead generation

California Fives

• Integrated program to online and print platforms to expand reach

Print Campaign

Co-op Print

Web Banners

California Calling mobilized and caught the attention of an entire online community to share their videos and broadcast comments and interaction with the California brand has reached an all-time high in the United Kingdom

UK “California Calling”

Video: California Calling

Case Study:

California – The Game leads travelers through the state and to clues across the web in a hunt for the ultimate prize –a dream vacation to California on Southwest Airlines.

California - The Game

Video: California – The Game (demo)

Creative not final

California - The Game

Boarding Passes

eCRMEmail Confirmation SWA.com Homepage

40 million impressions through

SWA Owned channels!

Getting in Front of the Parade…

Measuring Success

• California – The Game– 215, 916 unique visitors

– 73, 119 registrations

– 33.8% conversion rate

True Californians – Who‟s Next?

• Using magazine partners to engage Facebook fans by asking who should be featured in the 10/11 True Californians campaign

? ? ?

Kathryn Burnside

Director, CommunicationsCalifornia Travel & Tourism Commission

In the Media…

• California Fives

• California Calling

• California – The Game

Video: California – SWA Rapper

Growing Influence of New Media…

Caroline Beteta

President & CEOCalifornia Travel & Tourism Commission

Global Initiatives

DreamlandSyndicated

Global Broadcast Initiative

INSPIRATION PLANNING

TV Advertising

1.1 Billion

Impressions

Travel Planning Cycle

OTAs

443 Million

Impressions

Industry

Sites

Online Brand

Advertising

143 Million

Impressions

Vo

lum

e

Print Advertising

46 Million

Impressions

VCA.com

2M Imps

CVG

500K

Imps

Trav

el

DREAMLAND

500 Million

Impressions

Amgen Tour of California

Put in route

maps -

animate

POW WOW 2011