Colorado Winter 2007-08 Advertising Campaign Evaluation - Denver

denver

Colorado Winter 2007-08 Advertising Campaign Evaluation - Denver

Denver

2010 Travel Year


Background and Purpose

� Longwoods engaged to conduct visitor research for 2010 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

� 1,297 Denver visitors completed the initial survey, 829

completed the detailed follow-up

� 510 overnight; 319 day

� high response rate -- 64%

� Main focus is overnight travel

3


Size of the U.S. Travel Market —

2010 Overnight Trips

Marketable

Leisure Trips

43%

(685 Million)

Total Trips = 1.592 Billion

Business

Trips

14%

(217 Million)

Visits to

Friends/

Relatives

43%

(689 Million)

4


U.S. Market Trends for Overnight Trips

— 2010 vs. 2009

All Overnight Trips

Marketable Leisure

Visiting Friends/Relatives

Business Trips

-10 0 10

Percent Change ’10 vs. ‘09

3

5

6

7

5


Overnight Trips to Colorado/Denver

in 2010

Overnight in Denver

12.7 Million

(44%)

Total = 28.9 Million

Overnight

Elsewhere in CO

16.2 Million

(56%)

6


Millions of Trips

15

10

5

0

7.2 7.1

Overnight Trips to Denver

— 1994 to 2010

7.9

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

5%

12.7

7


Millions of Trips

15

10

5

0

Overnight Leisure Trips to Denver

— 1994 to 2010

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

9.1

9.6

9.7

10.1

8%

10.9

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

4.8 5.1

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

4 4.1 4.3 4.4

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

Marketable Trips Visits to Friends/Relatives

8.0

8.1

Denver’s Tourism Pays

1-A Passes

7.8 7.9

7.9

9.1

9.6 9.7

10.1

10.9

12%

3%

9


Thousands of Trips

800

700

600

500

400

300

200

100

Overnight Marketable Leisure Trips to

Denver by Month

0

660

710

470

550

550

410

400

440 420

330

Total 2006 Marketable Trips = 3.6 Million

Total 2007 Marketable Trips = 4.0 Million

Total 2008 Marketable Trips = 4.1 Million

Total 2009 Marketable Trips = 4.3 Million

Total 2010 Marketable Trips = 4.4 Million

430

480

350 400

310

250

270

220

250 270

400

290

210

320

270

220

160 210

90

70

July Aug Sept Oct Nov Dec

2006 2007 2008 2009 2010

10


Millions of Trips

6.0

5.0

4.0

3.0

2.0

1.0

0.0

Overnight Business Trips to Denver

1994 to 2010

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 4%

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

2.0

8%

1.8

11


Trip Purpose Trends

� Up

� Special Event

� Touring

� City

� Ski

� Down

� Outdoor

� Convention/conference

� Business/Leisure

� Other business

12


Millions of Trips

35

30

25

20

15

10

5

0

20.4

20.8

Overnight Trips to Colorado

— 1994 to 2010

23.0

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

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

5%

28.9

13


Percent

3

2.5

2

1.5

1

0.5

0

Market Share

CTO Funding

Restored

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

Colorado Denver

2.6%

1.2%

Denver’s Tourism Pays

1-A Passes

14


$ Billions

Total Travel Spending* in Denver

Overnight Trips

4

3

3

2

2

1

1

0

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

2.3

2.7

2.9

3.1

2.8

3.0

15


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 5%

1.9

2.0

2.2 2.2

8%

2.3

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

Leisure Business

3%

16


Accommodation

(31%)

$921 Million

Travel Spending by Sector —

Overnight Visitors

Recreation

(10%)

$285 Million

Total Spending = $3.0 Billion

Retail

(15%)

$456 Million

Eating/Drinking

(22%)

$668 Million

Transportation

(22%)

$664 Million

17


Denver Expenditure Trends

� Up for lodging, recreation/attractions/sightseeing, and

transportation

� Flat for retail

� Down for food/beverage

18


Contribution to Expenditures/Visitor

Volumes

Base: Overnight Visitors

Visit to Friends/Relatives

Marketable Leisure

Business

15

22

0 20 40 60

Percent

34

Expenditures Visitors

38

40

51

19


$120

$100

$80

$60

$40

$20

$0

$102

Average Daily Expenditures

— Per Visitor

$86

$92

$96

$89

$107

$48

$55

$40

$38

$39

Business Marketable VFR Day

2008 2009 2010

$47

20


Base: Overnight Leisure Trips

States contributing more than 5%

States contributing 2% - 5%

DMAs contributing more than 2%

Denver’s Sources of Business

21


Average No. Of Nights

5

4

4

3

3

2

2

1

1

0

Length of Stay — Leisure

Base: Overnight Leisure Trips

3.3

3.5 3.5

Denver

3.7

4.0

3.8

3.7

3.3

U.S. Norm

3.2 3.2

`06 `07 `08 `09 `10 `06 `07 `08 `09 `10

22


Most Popular Attractions in Denver

in 2010

16th Street Mall

Cherry Creek Shopping Center/Cherry Creek North

"LoDo" Historic District

Colorado Rockies

Castle Rock Factory Outlets

Denver Pavilions

Park Meadows Retail Resort

Colorado State Capitol

Red Rocks Amphitheater & Park

Denver Zoo

Denver Art Museum

Coors Brewery

9

10

8

Paid Admission

Colorado Rockies

7

Red Rocks Park & Amphitheatre

7

Denver Zoo

Denver Art Museum

7

Denver Museum of Science &

7

Nature/IMAX

Elitch Gardens

7

Buffalo Bill’s Museum/Grave

7

Denver’s Downtown Aquarium

Colorado Railroad Museum

0 10

Butterfly Pavilion

20 30

Percent

18

19

27

23


Denver’s Product Delivery —

Image Among Visitors vs. Non-Visitors

Base: Overnight Leisure Trips

I'd Really Enjoy Visiting

This Place (Again)

Excellent Value For

Money

30

0 20 40 60 80

Percent Who Strongly Agree

Visited in 2010 Never Visited*

*Source: Denver Advertising Benchmark & Accountability Research:, Dec. 2010

52

56

68

24


Denver’s Product Delivery —

Image Among Visitors vs. Non-Visitors

Base: Overnight Leisure Trips

Exciting

Adult Atmosphere

Family Atmosphere

Unique

Sightseeing

Entertainment

Worry Free

Popular

Luxurious

Sports and Recreation

Affordable

Climate

26

34

45

50

53

55

60

59

57

0 20 40 60 80

42

44

44

44

Percent Who Strongly Agree

Visited in 2010 Never Visited*

*Source: Denver Advertising Benchmark & Accountability Research:, Dec. 2010

48

50

55

54

57

56

57

59

62

63

69

25


Denver’s Top Product Strengths

Excellent climate overall

Safe to travel anywhere

Excellent museums/art galleries

Affordable to get to

Great for theater and the arts

Safe to travel in tourist areas

Unique local cooking

Noted for its history

Interesting architecture

Excellent tennis facilities

Interesting place

15

15

15

14

17

17

16

16

16

0 10 20 30 40

20

Difference In Percent Who Strongly Agree

33

26


A Record Breaking Year!

Denver continues to rack up successes:

� Records:

� Other positives:

� 12.7 million overnight visitors

� 4.4 million marketable overnight visitors

� 6.5 million VFR

� $2.34 billion in leisure visitor spending

� Average length of stay up to 4 nights

� Product continues to exceed expectations

� Higher day trip volume (+5%) and spending (+11%)

27


� Main concerns:

Challenges

� Business travel volume/spending continued to contract

� Combined business-leisure trips fell

� Decline in restaurant/food and beverage spending

� Challenges for coming year:

� Despite travel rebound in 2010, still signs of economic

weakness/consumer reticence

� Rising fuel costs – higher airline & gasoline prices

� Shorter, less frequent trend in trips - Medium to long haul

destinations like Denver must work harder to compete

� Ensure Denver get its share of conventions/conferences

28


Moving Forward…

� Overall Advertising Strategies

� Continue conveying excitement via urban messaging of “lots to see

and do”

� Continue with current messaging and positioning

� Work with tourism suppliers to create/communicate consumer

“value,” especially given higher transportation costs, etc.

� Encourage visitors to do more than one or two things – strong

correlation of trip satisfaction and number of attractions visited

29


� Media Planning Strategies

Moving Forward…

� Implement timely campaigns, given Denver’s planning cycle

for mid-long haul travelers

� Stay in market consistently for reinforcement

� Use time-sensitive “hooks” like “blockbuster” exhibitions

� Target markets with best ROI

� Continue spending in out-of-state markets with higher

return in visitor spending

� Phoenix, Dallas, Kansas City

� Pursue in-state markets for shoulder seasons/holidays with

blockbuster events (worked in 2010)

� In niche markets, spend appropriate to the size,

understand specific needs and tailor messaging under the

main campaign umbrella 30


In Summary

� Visit Denver made key marketing choices for 2010

� Effects we measured suggest choices paid off

� Similarity in outlook for the coming year

� No reason to change course

� Steady hand at the tiller!

31


Denver

2010 Travel Year

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