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Home My WebLink About06-12-17 City Commission Packet Materials - C4. TBID FY18 Work Plan and Budget Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Economic Development Director SUBJECT: Tourism Business Improvement District (TBID) FY 18 Budget and Workplan MEETING DATE: June 12, 2017 AGENDA ITEM TYPE: Consent RECOMMENDATION: Review the attached FY 18 TBID Work Plan and Budget materials were prepared by Bozeman Area Chamber CEO Daryl Schliem. If approved by the City Commission, the TBID FY 18 Work Plan and Budget Proposal will be adopted as part of the City of Bozeman’s FY 18 Budget. BACKGROUND: The mission of the Bozeman Tourism Business Improvement District (BTBID) Board of Trustees is to promote tourism that generates room nights for lodging facilities in the city of Bozeman, Montana by effectively marketing our region as a preferred travel destination. The Bozeman Tourism Business Improvement District was created by Resolution No. 4182 in 2009. Additional information regarding the District and District Boundaries is contained in Resolution No. 4172. Ordinance No. 1765 created the Board of Trustees to implement the District in August of 2009. The first meeting of the BTBID was held September 30, 2009. Liaisons: The City Commission liaison for this board is Cyndy Andrus. Acting in an advisory and administrative role, the Director of the BTBID Board of Trustees is Executive Director Daryl Schliem with the Bozeman Convention and Visitor Bureau. 95 This board has seven members appointed by the City Commission. Board members must be owners of real property subject to the jurisdiction of the BTBID or a family appointed representative of a real property owner. Current Members: Member Term Appointed Sandra Hodge July 31, 2017 09/23/2013 Larry Lambert July 31, 2019 09/14/2015 Ashley Ogle July 31, 2020 12/05/2016 Carl Solvie July 31, 2019 09/14/2015 Eric Sheckleton July 31, 2017 09/23/2013 Lisa Sebena July 31, 2018 12/05/2016 Andrew Ash July 31, 2020 12/05/2016 Daryl Schliem Administrator UNRESOLVED ISSUES: None at this time. FISCAL EFFECTS: To be determined. ATTACHMENTS: 1) FY 18 TBID Work Plan and Budget Report compiled on: May 29, 2017 96 BozemanTBID FY18 MARKETING PLAN 97 Successes Content strategy •Organic traffic increased by 30% •Return visitors by 18% •Created 80+ blog posts bringing over 56,000 visitors to the site •Average time on site, 5:02 minutes •Integrated content with media buys and social media Social Media •Facebook up 7% •Twitter up 3% •Instagram up 7% •4,023 uses of #OnlyInBozeman Paid Media •In 2017, digital media will be the largest media investment channel •Refined our digital media buy with a mix of display ads, email marketing and paid search. •Utilized Big Sky Journal and Powder Magazine for targeted fishing and skiing ads. Airline Marketing •Targeted campaign in Dallas 298 Key Research Findings 3 In 2016, Montana Office of Tourism and Business Development contracted Destination Analysts to conduct a Destination Brand Research Study. The findings were consistent with our targeted marketing. •Niche Markets •Families •History Buffs •Winter Enthusiasts •Interested in outdoor recreation, arts and culture, historical attractions, food •50% nature focused •Misperception that it is hard to get here •“Comfortable Isolation” —looking for adventure but still want modern comforts 99 Strengths •World class alpine and nordic skiing •Yellowstone National Park •State Parks: Missouri Headwaters, Madison Buffalo Jump, Lewis and Clark Caverns •Museums: MOR, The American Computer and Robotics Museum, The Gallatin History Museum •Vibrant Downtown •Day Trips: Proximity •Montana State University •Access: 15 Non-Stop Flights to major cities 100 Opportunities 5 •Increased visitation from families and millennials •Continued talks with Southwest Airlines and Jet Blue •Collaboration with MTOTBD and local tourism partners to continue marketing air service •Expand advertising, marketing and PR partnerships with local and regional tourism entities •Build on current interest from Canadian market •Continue to build marketing list and nurture with targeted content •Promoting restaurants, farmer’s markets, breweries and distilleries •Promote festivals, music, art and theater 101 Challenges 6 •Perception that it’s difficult to get here •Cost of flights •Economic uncertainty •Balancing hotel inventory, increasing shoulder season and winter bookings •Significant weather events 102 Target Markets Based on ITRR Research, direct flight markets and website traffic Website Traffic •California •Texas •New York •Montana •Illinois •Washington •New Jersey •Colorado •Minnesota •Georgia Regional Drive Markets •North and South Dakota •Idaho •Utah •Wyoming •Canada •Oregon •Washington Direct Flight Markets •Seattle/Tacoma –Alaska Airlines •Portland –Alaska Airlines •San Francisco -United •Los Angeles –Delta, United •Las Vegas -Allegiant •Phoenix -Allegiant •Salt Lake City -Delta •Denver –Frontier, United •San Jose –Jet Suite X •Dallas/Fort Worth –American Airlines •Houston -United •Minneapolis/St. Paul –Delta •Chicago -United •Atlanta -Delta •New York La Guardia –Delta, United •Newark –United 103 Air Service: January, 2000–4 direct flights 104 Air Service 2016 15 Direct Flights 105 Bozeman Yellowstone International Airport Arrival Passenger Totals 2004 -2016 308,985 335,679 317,850 335,276 351,214 342,714 365,210 397,822 433,829 442,540 483,132 511,723 554,034 0 150,000 300,000 450,000 600,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Bozeman Yellowstone Internaional Airport Arrival Passenger Totals 2004 -2015 106 Bozeman Yellowstone International Airport Arrival & Departure Passenger Totals 2004 -2015 617,970 671,358 635,700 670,552 702,428 685,428 730,420 795,644 867,658 885,080 966,264 1,023,446 1,107,168 0 300,000 600,000 900,000 1,200,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Bozeman Yellowstone International Airport Departure & Arrival Passenger Totals 2004-2016 107 American Airlines •The last time a major airline entered the Montana market was three decades ago. •In the history of our state, no airline has served Dallas/Ft. Worth non- stop from any airport in Montana. They have now added Chicago without seat guarantees. •The largest airline in the world now serves Montana year-round. 12108 American Airlines Cooperative Ad Campaign 13109 Pursuing additional direct flights: •Boston •Washington DC •Canada •Florida •North Carolina •Continuing discussions with Southwest Airlines 14110 15 Gross Lodging Tax for Montana 2004 -2016 $13,424,789 $14,629,619 $16,118,652 $17,966,228 $18,372,994 $17,201,592 $18,698,660 $20,091,923 $22,264,780 $23,690,983 $26,066,902 $27,488,773 $29,119,964 $0 $7,500,000 $15,000,000 $22,500,000 $30,000,000 $37,500,000 Gross Lodging Revenue for Montana 2004-2016 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 111 16 Gross Lodging Tax Revenue for Yellowstone Country 2004 -2016 $3,875,561 $4,351,376 $4,777,979 $5,349,508 $5,349,537 $4,900,038 $5,409,925 $5,730,604 $6,342,647 $7,097,693 $8,075,810 $9,244,330 $10,244,651 $0 $2,750,000 $5,500,000 $8,250,000 $11,000,000 Gross Lodging Tax Revenue for Yellowstone Country 2004 -2016 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 112 17 Gross Lodging Tax Revenue for Bozeman 2004 -2016 $813,625 $911,231 $1,042,865 $1,163,739 $1,177,921 $1,114,071 $1,260,066 $1,361,671 $1,500,892 $1,718,816 $1,881,925 $2,137,827 $2,238,207 $0 $600,000 $1,200,000 $1,800,000 $2,400,000 Gross Lodging Tax Revenue for Bozeman 2004 -2016 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 113 18 Gross Lodging Tax Revenue for Belgrade 2004 -2016 $70,544 $83,001 $93,747 $102,949 $114,333 $124,010 $127,736 $120,362 $134,112 $166,893 $246,446 $271,692 $282,447 $0 $75,000 $150,000 $225,000 $300,000 Gross Lodging Tax Revenue for Belgrade 2004 -2016 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 114 Lodging Tax Revenue Bozeman 2015 = $2,137,827 +14% over 2014 Bozeman 2016 = $2,238,207 +5% over 2015 19115 Demographics Visitors •Families, history buffs, winter enthusiasts, urban professionals, ages 25-55 Meetings •500 people or less with focus on technology, agriculture, education, professional association and trade associations Film •Continue to work with Montana Film Office to promote Bozeman as premier filming location. Sports Tournaments and Events •Promote Bozeman for lacrosse, soccer and baseball tournaments outside of Montana High School Association •Support momentum of nationally recognized runs such as Run to the Pub and the Bozeman Marathon. •Traditional sports tournaments, both statewide and regional 116 Overall Goals •Build our email marketing list •Increase calls to action on blogs and websites •Expand our inbound marketing •Robust blog posts •Nurturing leads with specific content and calls to action based on interest •Targeted messaging •Broaden geographic targets while tailoring the message •Collaborate with state and local partners to promote ease of access •Promote packages and giveaways •Invest in cooperative opportunities from state, regional and local partners 117 22 Spring Creative 118 23 http://blog.bozemancvb.com/blog?_ga=1.201527058.204760094.1475614604 Blog 119 TBID FY18 Budget 24 Consumer Advertising $616,486.00 Gallatin Valley Tournament Committee $105,000.00 Airline Incentives $125,000.00 Airline Marketing $100,000.00 IPW $10,000.00 Marketing Support $151,014.00 Survey $1,000.00 Contests/Giveaways $1,000.00 Photo/Video Updates $12,000.00 Other/Grants $78,500.00 TOTAL $1,200,000.00 120 CVB FY18 Budget Consumer $121,461.50 Marketing Support $59,538.50 Joint Ventures $50,000.00 Fulfillment $9,000.00 FAM Tours $5,000.00 TOTAL $245,000.00 121