Colorado Winter 2007-08 Advertising Campaign Evaluation - Denver

denver

Colorado Winter 2007-08 Advertising Campaign Evaluation - Denver

Denver

2011 Travel Year


Background and Purpose

� Longwoods engaged to conduct visitor research for 2011 travel

year

� Purposes:

� Estimate visitor volume and expenditures

� Provide intelligence on:

� competitive environment

� sources of business

� traveler profile

� trip characteristics

� product delivery

2


� Travel USA®

Method

� quarterly random samples of U.S. adult population

� consumer online panel

� 2 million self-completion surveys a year

� overview survey, then a follow-up

� 1,382 Denver visitors completed the initial survey, 849

completed the detailed follow-up

� 519 overnight; 330 day

� high response rate -- 61%

� Main focus is overnight travel

3


Size of the U.S. Travel Market —

2011 Overnight Trips

Marketable

Leisure Trips

42%

(695 Million)

Total Trips = 1.635 Billion

Business

Trips

14%

(222 Million)

Visits to

Friends/

Relatives

44%

(718 Million)

4


U.S. Market Trends for Overnight Trips

— 2011 vs. 2010

All Overnight Trips

Marketable Leisure

Visiting Friends/Relatives

Business Trips

-10 0 10

Percent Change ’11 vs. ‘10

1

3

3

4

5


Overnight Trips to Colorado/Denver

in 2011

Overnight in Denver

13.2 Million

(46%)

Total = 29.0 Million

Overnight

Elsewhere in CO

15.8 Million

(54%)

6


Millions of Trips

15

10

5

0

7.2 7.1

7.9

Overnight Trips to Denver

8.8

9.4

9.0

9.6

10.3 10.2

9.7

9.9

10.4

11.7

12.2 12.2 12.1

`94 `95 `96 `97 `98 `99 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 11

12.7

4%

13.2

7


Millions of Trips

15

10

5

0

Overnight Leisure Trips to Denver

5.3 5.2

5.9

6.4

7.0

6.4

6.9

8.0 8.1 7.8 7.9 7.9

`94 `95 `96 `97 `98 `99 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 11

9.1

9.6

9.7

10.1

10.9

1%

11.0

8


Millions of Trips

12

10

8

6

4

2

0

*Data are rounded

Structure of Denver’s Overnight Leisure

Travel Market

6.1

3.1

3

5.7

3.2 2.4

2.5

5.3 5.2

2.9

2.6

5.9

3.2

6.4

3.9

2.6 2.7 2.6

7.1

4

6.4

3.3

6.9

4

3.1 3.1 2.9

8.0 8.1 7.8 7.9

4.8 5.1

Denver’s Tourism Pays

1-A Passes

4.9 4.9 4.7

3.2 3 2.9 3 3.2

5.5

3.6

5.6

5.6

5.8

6.5

6.5

4 4.1 4.3 4.4 4.5

`92 `93 `94 `95 `96 `97 `98 `99 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11

Marketable Trips Visits to Friends/Relatives

7.9

9.1

9.6

9.7 10.1

10.9 11.0

flat

4%

9


Millions of Trips

4.0

3.0

2.0

1.0

0.0

Overnight Business Trips to Denver

1.9 1.9 2.0

2.4 2.4 2.5

2.7

2.3

2.1

1.9

2.0

Conventions/Conferences Up 6%

2.5 2.6 2.6 2.5

`94 `95 `96 `97 `98 `99 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11

2.0

1.8

17%

2.2

10


Trip Purpose Trends

� Up

� Flat

� Touring

� Convention/conference

� Other business

� Combined Business-Leisure

� City

� Down

� Special Event

� Outdoor

� Ski

11


Millions of Trips

35

30

25

20

15

10

5

0

20.4

20.8

23.0

Overnight Trips to Colorado

25.1

26.1

25.3 24.7 24.0

26.2

24.9

25.8 25.9

26.9

28.0 27.4 27.5

28.9 29.0

`94 `95 `96 `97 `98 `99 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11


Percent

3

2.5

2

1.5

1

0.5

Market Share

CTO Funding

Restored

0

`94 `95 `96 `97 `98 `99 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 11

Colorado Denver

2.7%

1.2%

Denver’s Tourism Pays

1-A Passes

13


$ Billions

4

3

3

2

2

1

1

0

Total Travel Spending in Denver

Overnight Trips

1.7

1.6

1.7

2.0

2.1

2.2

2.1

2.2

2.3

2.2 2.2

`94 `95 `96 `97 `98 `99 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11

2.3

2.7

2.9

3.1

2.8

3.0

10%

3.3

14


Billions of Dollars

$3

$2

$1

$0

1.4

1.6

1.6

Travel Expenditures in Denver

on Overnight Trips

1.5

1.6 1.5

Total Spending Up 10%

1.9

2.0

2.2 2.2

2.3

8%

2.5

0.7 0.7 0.7 0.7 0.6

0.8 0.8 0.9 0.9

0.7 0.7

`00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 11 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 11

Leisure Business

15%

0.8

15


Accommodation

(30%)

$973 Million

Travel Spending by Sector —

Overnight Visitors

Recreation

(9%)

$310 Million

Total Spending = $3.3 Billion

Retail

(15%)

$484 Million

Eating/Drinking

(20%)

$669 Million

Transportation

(26%)

$849 Million

16


Denver Expenditure Trends

� Up sharply for transportation

� Also higher for lodging, recreation/attractions/sightseeing,

and retail

� Flat for restaurant food/beverage

17


Contribution to Expenditures/Visitor

Volumes

Base: Overnight Visitors

Visit to Friends/Relatives

Marketable Leisure

Business

17

22

0 20 40 60

Percent

34

Expenditures Visitors

38

40

49

18


$120

$100

$80

$60

$40

$20

$0

$86

Average Daily Expenditures

— Per Visitor

$92

$107

$89

$107

$114

$43

$40

$38

$39

Business Marketable VFR Day

2009 2010 2011

$47

$54

19


Base: Overnight Leisure Trips

States contributing more than 5%

States contributing 2% - 5%

DMAs contributing more than 2%

Denver’s Sources of Business

20


Number of Nights

6

5

4

3

2

1

0

3.3

Length of Stay — Leisure

Base: Overnight Leisure Trips

3.5 3.5

3.7 3.7

3.3

3.8 3.7

3.3 3.2 3.3 3.3

'06 '07 '08 '09 `10 `11 '06 '07 '08 '09 `10 '11

Denver

U.S. Norm

21


Incidence of Prior Travel to Denver

Leisure Travelers

VFR

Marketable

Business Travelers

0 20 40 60 80 100

Percent

2011 2010

77

76

79

80

82

85

86

88

22


Most Popular Attractions in 2011

16th Street Mall

Cherry Creek Shopping District


"LoDo" Historic District

Denver Zoo

Denver's Downtown Aquarium

Colorado State Capitol

Flatirons Crossing Mall

Denver Pavilions

Red Rocks Park & Amphitheatre

Denver Botanic Gardens

Denver Art Museum

Denver Museum of Nature & Science/IMAX …

7

7

7

7

7

8

8

8

8

11

0 5 10 15 20 25

Percent

13

22

Paid Admission

Denver Zoo

Denver’s Downtown Aquarium

Red Rocks Park & Amphitheatre

Denver Botanic Gardens

Denver Art Museum

Denver Museum of Nature &

Science/IMAX

Colorado Railroad Museum

Colorado Rockies

Buffalo Bill’s Museum/Grave

Butterfly Pavilion

23


Denver’s Product —

“Would Really Enjoy Visiting Again”

Total Visitors

Business

Visit Friends/Relatives

Marketable Leisure

0 20 40 60 80

Percent Who Strongly Agree

59

65

66

66

24


Denver’s Product—

“Would Really Enjoy Visiting Again”

2011 Visitors

2010 Visitors

2009 Visitors

2008 Visitors

0 20 40 60 80 100

65

65

67

Percent Who Strongly Agree

80

25


Another Winning Year!

Denver continues to break records:

� 13.2 million overnight visitors

� 11 million on overnight leisure trips

� 4.5 million marketable overnight visitors

� $3.3 billion in visitor spending

� Other positives:

� Substantial upswing in business visitors/spending

� Product continues to appeal

� Higher day trip volume (+7%) and spending (+23%)

� More first time visitors

26


� Main concerns:

� Length of stay

Challenges

� Business travel volume/spending continued to lag

� Challenges for coming year:

� Travelers are still showing signs of reticence

� Short trips

� Tight spending

� Fuel costs still high – high airline & gasoline prices

27


Moving Forward…

� Overall Advertising Strategies

� Resist temptations to focus on mountains or “cheap vacations”

� Continue with current messaging and positioning

� Excitement

� Focus on the city/its attractions, i.e., variety

� Congratulations on merging creative approach for

consumers/meeting planners

� Planners wear two hats

� Continue working with tourism suppliers to create packages

� generate perceptions of “value”

28


Moving Forward…

� Attracting more first-time visitors is key to long-term

success

� But need them to experience more of Denver

� strategies to reach them with fulfillment vs. them having to

contact you

� Media planning

� continue “target markets” for longer-haul

� recalling a fairly long planning cycle, a March/April

campaign start is optimal

� need to continue into season

� plus regional event strategy for shoulders and holidays

� to keep up momentum

29


In Summary

� In a tough economy, 2011 could be considered a vintage

year for Denver travel and tourism

� Visit Denver continued to make successful marketing

choices

� Similar outlook for the coming year

� Your key direction and strategies are sound

� Keep up the good work!

30


Denver

2011 Travel Year

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