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Home My WebLink About06-04-18 City Commission Packet Materials - C14. FY19 Bozeman TBID Work Plan and Budget Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Economic Development Director Daryl Schliem, Bozeman Tourism Business Improvement District Liaison SUBJECT: Tourism Business Improvement District (TBID) FY 19 Work plan and Budget MEETING DATE: June 4, 2018 AGENDA ITEM TYPE: Consent RECOMMENDATION: Review the attached FY 19 TBID Work Plan and Budget materials prepared by Bozeman Area Chamber CEO and Tourism Business Improvement District Liaison Daryl Schliem. If approved by the City Commission, the TBID FY 19 Work Plan and Budget Proposal will be adopted as part of the City of Bozeman’s FY 19 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. 252 Liaisons: The City Commission liaison for this board is Mayor 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. 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: UNRESOLVED ISSUES: None at this time. FISCAL EFFECTS: To be determined. ATTACHMENTS: 253 1) FY 19 TBID Work Plan and Budget Report compiled on: May 17, 2018 254 Bozeman TBID -CVB FY19 MARKETING PLAN 255 Successes Content Strategy •Overall web traffic up 90% •Organic traffic up 206% FYTD year over year •Top sources of web traffic: •Organic traffic •Paid search •Social media referrals. 2256 Successes •Hotel referrals from the Bozeman website are averaging 500-600 per month •Overall marketing list: 5,720 -Blog Subscribers: 2,676 •Airline marketing campaign: Projected bookings are 10% over last summer •Robust video and photo library •Digital advertising campaign: Continued growth across channels 3257 Successes We know from categorizing over 180 blogs posts into clusters, the top topics of interest are: Yellowstone, Lodging, Hiking, Skiing, Traveling to Bozeman, Relaxing, Day Trips Posts with highest engagement: 1. Ranking the 14 Best Hot Springs in Montana -41K Views 2. 15 Nonstop Flights to Bozeman You Need to Know About -23K Views 3. 7 Life Changing Things to Do In Yellowstone -15K Views 4. 15 Interesting YNP Facts You Didn’t Know -14K Views 5. 5 Myths About Visiting Bozeman, Montana -13 K Views User-generated content on Instagram, using the hashtag #onlyinbozeman, has driven fantastic organic growth with these followers becoming ambassadors for Bozeman. 4258 Key Research Findings 5 In 2017, Montana Office of Tourism and Business Development contracted Destination Analysts to conduct research on the Winter Enthusiast. The findings show our biggest opportunity is to increase winter visitation. •The winter enthusiast identifies January as a time they would be most likely to visit; which for us, is an ideal time to increase hotel occupancy, skier numbers and winter visits to Yellowstone National Park. •Potential visitors in the study also list the top four important attributes for winter recreation include affordability, charming small towns near ski resorts, proximity to National Parks, hot springs and thermal pools. Bozeman embodies all of these attributes. •All five of the top states with a high concentration of winter enthusiasts are included in Bozeman’s target markets: California, Texas, Florida, New York and Pennsylvania. In particular, we consistently receive high organic search traffic from Florida and Pennsylvania without utilizing paid media in these areas. 259 Opportunities •Increase winter visitation focusing on winter activities, Yellowstone National Park, and Bozeman’s culture •Leveraging content specific to visitors interests; “Meet them where they are” •Increased collaboration with tourism partners:•Airline marketing•State and local media co-ops•Collaborate with other tourism entities to bring in social influencers and traditional journalists•Outreach to local businesses encouraging them to share our content and utilize our website for local events •Increasing shoulder season visits from drive markets 260 Potential Challenges 7 •Perception that it’s difficult to get here •Balancing hotel inventory •Congestion in Yellowstone National Park •Significant weather/fire events •Attracting Canadian visitors •Economic concerns •Over saturation in target markets 261 Target Markets Based on ITRR Research, direct flight markets and website traffic Primary New York, Dallas, Chicago, Los Angeles, San Francisco Secondary Houston, Denver, Atlanta, Seattle, Portland, Phoenix, Las Vegas, Salt Lake, Minneapolis Emerging Florida and Pennsylvania, which along with California, Texas and New York, aligns with the top states winter enthusiasts reside. Other emerging markets include Washington DC, Boston and Charlotte. 262 Air Service: January, 2000–4 direct flights 263 Air Service 2016 15 Direct Flights and Now 16 with Jet Blue 264 and Now 16 with Jet Blue to Long Beach 265 Bozeman Yellowstone International Airport Arrival Passenger Totals 2004 -2017 308,985 335,679 317,850 335,276 351,214 342,714 365,210 397,822 433,829 442,540 483,132 511,723 554,034 599,176 0 150,000 300,000 450,000 600,000 750,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 266 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 1,199,537 0 300,000 600,000 900,000 1,200,000 1,500,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 267 Potential additional direct flights: •Long Beach •Boston •Washington DC •Florida •Charlotte, NC •Continuing discussions with JetBlue & Southwest Airlines 14268 15 Gross Lodging Tax for Montana 2004 -2017 $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 $30,739,050 $0 $7,500,000 $15,000,000 $22,500,000 $30,000,000 $37,500,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 269 16 Gross Lodging Tax Revenue for Yellowstone Country 2004 -2017 $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 $10,957,910 $0 $2,750,000 $5,500,000 $8,250,000 $11,000,000 $13,750,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 270 17 Gross Lodging Tax Revenue for Bozeman 2004 -2017 $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 $2,403,307 $0 $600,000 $1,200,000 $1,800,000 $2,400,000 $3,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 271 18 Gross Lodging Tax Revenue for Belgrade 2004 -2017 $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 $297,885 $0 $75,000 $150,000 $225,000 $300,000 $375,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 272 Lodging Tax Revenue Bozeman 2015 = $2,137,827 +14% over 2014 Bozeman 2016 = $2,238,207 +5% over 2015 Bozeman 2017 = $2,403,307 +7% over 2015 19273 Demographics Visitors •Urban Dwellers •Millennials, Young Families, Families with Older Children, Retirees •Winter Enthusiasts 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 274 Interests 64% Scenic Driving 42% Day Hiking 42% Wildlife Watching 31% Nature Photography 27% Recreational Shopping 23% Car/RV Camping 23% Visiting Other Historical Sites 22% Visit Local Brewery 16% Visiting Museums 14% Visiting Lewis & Clark Sites 10% Fishing/Fly Fishing 9% Skiing/Snowboarding 8% Visit Farmers Market 8% Dinosaur Attraction 21275 Overall Goals •Continue to build our email marketing list •Expand our inbound marketing with reintroduction campaigns each season •Targeted messaging •Broaden geographic targets while tailoring the message •Collaborate with state and local partners to promote ease of access •Create short form videos •Invest in cooperative opportunities from state, regional and local partners 276 23 Spring Creative 277 TBID FY18 Budget 24 Consumer Advertising $604,000.00 Gallatin Valley Tournament Committee $85,000.00 Airline Incentives $125,000.00 Airline Marketing $120,000.00 IPW $10,000.00 Marketing Support $166,000.00 Photos/Video Updates $10,000.00 Other/Grants $80,000.00 TOTAL $1,200,000.00 278 CVB FY18 Budget Consumer $133,200 Marketing Support $70,909 Joint Ventures $48,000 Fulfillment $12,000 FAM Tours $5,000 TOTAL $269,109.00 279