November 9 2016 executive committee presentation final hkedits

ACVB EXECUTIVE COMMITTEE MEETING WEDNESDAY, NOVEMBER 9, 2016 | 8:00 a.m.

ACVB BOARD ROOM

CALL TO ORDER DARYL EVANS CHAIR, BOARD AND EXECUTIVE COMMITTEE

DESTINATION REPORT MARK VAUGHAN EVP/CSO

Atlanta Occupancy – September 2016 September 2016 YTD Occupancy

2015

2016

ACVB Tax Revenue District

74.2%

75.1%

Hotels w/500+ rooms

75.5%

78.1%

Hotels within 1-mile radius of GWCC

73.4%

75.6%

Metro Atlanta

71.8%

71.5%

Source: STR

Demand Share

Top 25 Markets Luxury & Upper Upscale

MONTHLY

YTD

Source: STR

Key Sales Activities • Currently through October we are at 101% of our room night goal and 105% of our lead goal

Direct Sales Events • IAEE • Holiday Showcase • CVB Reps Holiday Event • World Travel Market • International Showcase • ASAE XDP Rollout • PCMA • American Bus Association • NTA

Anaheim Chicago Washington, D.C. London Atlanta Washington, D.C. Austin Cleveland St. Louis

Green Up = 10% above average Orange Equals = Within 10% +/- of average Red Down = 10% below average

BOOKINGS

Note: These numbers differ slightly from the Productivity Report due changes in room blocks and distribution of booking credit.

October 2016

Additional Rooms

27,385

Grand Total

139,121

Additional Rooms

134,507

2016 YTD

Grand Total

1,392,096

MAJOR GROUPS FOR FUTURE YEARS

MARKETING UPDATE ANDREW WILSON EVP/CMO

ATLANTA.NET

END of AUGUST 2016 YTD

SITE VISITS

MOBILE SHARE

YTD Monthly Average

of Site Visits

+ 20% YoY 437,503

+ 15% YoY 523,481

600K

70%

52%

60%

2015 YTD

2016 YTD

60%

500K

Goal 50% 400K 40% 300K 30% 200K 20% 100K

10%

0K

0%

2015 YTD

2016 YTD

ATLANTA.NET

END of AUGUST 2016 YTD

USER ENGAGEMENT YTD Index

120.3

*

vs. 2015

Weighting

Page Views/Visit Mobile

95

25%

Page Views/Visit Desktop & Tablet

99

20%

Soc. Media Engagement **

167

30%

Leisure Newsletter Open Rate

122

10%

Leisure Newsletter Sign-up

63

5%

Ad Clicks

98

5%

Member Clicks

128

5%

Weighted Index

120.3

* 2015 set as baseline = Index 100 ** Social Media Activity is the aggregate of Likes, Comments, Shares and similar activity across Facebook, Twitter, Instagram and Pinterest.

SUMMER CAMPAIGN REPORT 2016

2015

$217,000

$210,800

Impressions

47,794,737

41,672,456

Video Views • YouTube • Facebook

67,260 276,394

N/A N/A

Clicks to Partner Sites Clicks to Atlanta.net

9,401 81,667

31,183 42,314

Display Native Social eMail Broadcast YouTube Print Influencers

Display Native Social eMail Broadcast -

Budget

Key Components

NEW SALES TOOLS

Virtual Reality goggles available for sales calls, trade shows, FAMs

SOCIAL INFLUENCER CONFERENCE 2016

2015

$70,000

$50,000

Impressions

145 million

93 million

Reach Media Value

15.5 million TBD

7.7 million $500,000

65 22 13

50 18 9

W Buckhead

W Midtown

Buckhead/East ATL Atlanta History Center

Downtown/Midtown Atlanta Botanical Garden

Budget

Influencer Attendees Partners Speakers Key Components •

HQ Location

•

Geo Focus

•

Opening Reception

10/12 – 10/15

I AM ATL CONSUMER MEDIA Budget $400,000 Distribution: • Matador Networks • BuzzFeed • Thrillist • YouTube • Facebook • Retargeting Meeting Planners

Display Ads

Campaign Microsite

#DISCOVERATL OUTFRONT MEDIA Donated Surplus Inventory • • • • •

240 Rail Car Cards 505 Interior Bus Cards 75 Bus Kings 1 Bus wrap Rail Network TV – 30 second spot

2017 BUSINESS & FINANCIAL PLAN WILLIAM PATE PRESIDENT & CEO

GREGORY PIERCE EVP/CAO/CFO

2017 Business and Financial Plan Presentation

Atlanta Convention & Visitors Bureau, Inc.

Mission To sell and market metro Atlanta and Georgia globally as the premier conventions, meetings and tourism destination in the regional, national and international marketplace and favorably impact the Atlanta economy through conventions and tourism.

Five-Year Snapshot *Five-year growth trend across major metrics in City of Atlanta: • Occupancy up 15.4% or 3.0% annualized • REVPAR up 42.7% or 8.5% annualized • Demand up 15.9% or 3.2% annualized

*Metro market share of demand in top 25 destinations up 5.5% or approximately 1.1% annualized

* YOY through 09/30/2015

Five-Year Snapshot 5 Year Sales productivity history – Total room nights booked up 6.4% or 1.3% annualized (1,694,000 projected 2016) – Trade show room nights booked up 11.2% or 2.3% annualized (1,288,500 projected 2016) – Trade show leads up 35.5% or 7.1% annualized (675 projected 2015) * projected

Five-Year Snapshot • 3 year average 5000+ peak groups up 25% to 20 groups • Total room nights booked on 2500+ peak groups up 35%. Projected 20161,070,000

2016 Highlights Total room nights

Goal 1,676,393

Projected 1,694,000

% of Goal 101.1%

2015 Actual 1,770,250

City wide room nights

1,275,000

1,288,000

101.0%

1,332,126

# of major citywides > 5000 peak nights 3 year running average

20

21

105.0%

22

Room nights for 2,500 peak+

925,000

1,070,000

115.7%

942,843

5,598

5,572

99.5%

5,435

617

675

109.4%

618

100%

107%

107.0%

108%

Leads Total # of Leads # of city-wide leads Attendance goal for major city wides

2016 Highlights • The last 4 ½ years show the strength of the market • 40 citywides that have not been to Atlanta in 5 or more years • 20 citywides that have not been to Atlanta in 10 years • 47 citywides that have never been to Atlanta

• Continued productivity growth from Group Sales and Convention Services efforts • Group sales lead volume up 7% over goal • Year end room night bookings will exceed goal • 28 of 38 conventions have exceeded their attendance goals YTD by 8% • Eight-year TAP pace at 108%

2016 Highlights • Leveraged leadership positions with PCMA, IAEE and ASAE • Launched GWCC 2020 Vision at ASAE Annual Meeting • Assisted in securing Super Bowl in 2019 • Secured ASAE Annual Meeting for 2022 • Hosted Travel South International Showcase • Hosted 835 meeting and convention site visits

2016 Highlights • • • •

• •

• •

Increased Atlanta.net web traffic +20% Launched I AM ATL Consumer campaign Launched Atlanta360, a comprehensive virtual tour web platform supported by VR app for Google Cardboard and Samsung Gear VR Hosted social influencer conference, SITSum, for 70+ influencers from 20 states and 3 international countries with 13 Speakers and 10 Atlanta Experiences.

Premiered Music Voyager Atlanta episode II, syndicated on four continents Summer Consumer Campaign generated 48 million impressions +15% y/y Created new international sales presentation in Spanish, English and Portuguese Launched Mandarin content section on Atlanta.net

2017 Goals •

Increase room night bookings and maximize 1% Convention Marketing Fund – Room nights: • Increase room night goal for trade show sales 2% over year-end actuals.

• Increase room night goal for in-house sales 2% over year-end actuals.

Book 20 major citywide conventions/events (5,000 peak nights and above) – 925,000 room nights booked for 2,500 peak and above – Increase sales leads 2% over year-end actual Achieve 100 percent attendance goal for major citywide conventions Increase visibility of Atlanta as one of the top U.S. meeting and travel destinations Maintain atlanta.net as the premier hospitality online marketing platform Continue to position ACVB as an industry expert nationally and as the singular voice of hospitality in Atlanta •

• •

• •

Increase room night bookings and maximize 1% Convention Marketing Fund New or significant ramp up in focus • • •

Focus sales messaging on anticipated GWCC connector and hotel at all sales events, emphasizing ASAE, IAEE and in group marketing Expand China travel market by hosting China – America Summit Expand presence in Association market with new industry event XDP powered by ASAE

Continue or enhance focus from prior year • • •

Expand opportunities within the emerging “Independent Show Organizer” (for-profit) market Further optimization of in-house sales efforts and small meetings Restructure Midwest sales strategy in order to better maximize opportunities

Increase room night bookings and maximize 1% Convention Marketing Fund Continue or enhance focus from prior year • • • •

• • • •

Add 8 new sales programs and retiring 11 existing sales programs Host four meeting planner FAM tours, totaling 100 participants Host sales missions in Washington, D.C. and Chicago Identify 25 trade shows not considering Atlanta and attend their convention Focus efforts in the medical, manufacturing, construction, financial, energy and education industries Host 20 FAM trips for international tour operators Participate in 55 industry events and trade shows to market Atlanta as a premier meeting and convention destination Further enhance our partnerships with the major third party partners

Achieve 100% attendance goal for major citywide conventions New or significant ramp up in focus •

Leverage new destination marketing assets and enhanced attendance-building services offerings: videos, customized print & digital collateral, integrated marketing campaigns, etc.

– Market Atlanta at 14 customer conventions in preparation for their 2018 convention in Atlanta – Create mini-sites for all convention/meeting clients

Continue or enhance focus from prior year • • • • • •

Coordinate media FAMs with PR for top city-wide groups Work with PR and Marketing to repurpose ACVB advertorials, articles, releases for customer-to-attendee communications Utilize Event Services educational resources/webinars to learn best practices and new ideas in attendance building efforts from external organizations and cities, via CS membership Continue targeting attendees with destination content through social media channels Continue exploration of most effective manner to facilitate increased international meeting attendance Continue to build value for customers and sponsors with UpNext supplier showcase and presentation to highlight Atlanta resources for marketing and event planning

Increase visibility of Atlanta as one of the top U.S. meeting and travel destinations New or significant ramp up in focus • •

Focus marketing message on GWCC Vision 2020 developments Provide Sales and Convention Services online tools to leverage Atlanta360 content, supporting site visits/FAMs

Continue or enhance focus from prior year • • • • • • • •

Maximize regional partnerships/alliances focusing on international visitation Continue Meeting Planner oriented editorial strategy Leverage Music Voyager III video to create episodic content Enhance the media buying strategy to more effectively span digital and social channels to reach the target audiences Host a social media influencer FAM/Conference with National and international reach Continue partnership approach with EventSphere to other housing companies to influence attendance of midsize groups Refresh summer, Halloween, and holiday co-op campaigns Curate weekend getaway experience packages

Maintain atlanta.net as the premier hospitality online marketing platform New or significant ramp up in focus •

Expand mobile-first development strategy across all content

Continue or enhance focus from prior year • • • • • • •

Improve clickability and page performance Significantly expand use of video and strong visuals to drive traffic Train Sales and Convention Services to leverage the new online resources such as AtlantaMeetings.com Continue to expand Atlanta360 virtual tour assets Continue positioning atlanta.net assets (web, mobile web, social) as the definitive source for information on what to see and do in Atlanta Ongoing refinement of successful search engine optimization (SEO) strategy to drive qualified traffic to the key content categories Ongoing refinement eCRM (includes social) program to maximize user engagement while growing user base

Position ACVB as an industry expert nationally and as the singular voice of hospitality in Atlanta New or significant ramp up in focus • • •

Collaborate with industry partners to address any legislation which could have a negative impact on our business Provide Membership with enhanced selling tools – collateral, business case and tiered digital/social packages Maximization of new company-wide CRM software

Continue or enhance focus from prior year • • • • •

Continue focus on cabinet alignment against industry priorities and initiatives Engage public and private sector by serving on boards, speaking engagements and utilizing Atlanta executives in ACVB sales efforts Maintain relationships with city and state administrations Maintain leadership positions on hospitality industry boards Highlight industry expertise through guest columns and editorials

2017 Financial Plan

2017 Financial Plan Points • Total revenue up 2.1% • Public sector revenue flat to 2016 forecast • Private sector up 8.3% due to program variations • Total expense up 2.1% • Payroll and related expenses up 3.1% • 2.5% performance based merit increase pool • Group insurance renewal increase • Direct promotional expenses up 1.0% • Operating expenses and expenses against capital assets up 6.2% due primarily to depreciation expense increases

2017 Summary Budget 2017 Budget Total revenue

$

Total expense Excess(deficiency)

2016 Forecast

31,262,110 $ 30,624,020 30,884,944

$

377,166 $

30,359,020 265,000

Total Public Sector Revenue 2017 Budget Georgia World Congress Center-Atlanta

$

2016 Forecast

14,040,504 $ 14,040,504

Georgia World Congress Center-Fulton Co

35,000

35,285

Atlanta Convention Marketing Fund - 80%

7,131,685

7,131,685

Atlanta Convention Marketing Fund - 20%

1,782,921

1,782,921

Total Public Sector Revenue

$

22,990,110 $ 22,990,395

Total Private Sector Revenue 2017 Budget Annual meeting/HHOF/HBN

$

2016 Forecast

150,000 $

141,000

Contributed services

4,065,000

3,400,000

Co-op cash support

1,100,000

1,025,125

Grants/sponsorships

15,000

13,500

Internet revenue

157,000

145,000

Membership dues

1,395,000

1,375,000

18,000

17,000

227,000

382,000

1,145,000

1,135,000

Membership services Other revenue Publication ad revenue Total private sector revenue

$

8,272,000 $ 7,633,625

Total Expense 2017 Budget Direct promotional expense

$

Expense against capital assets

2016 Forecast

11,457,962 $ 11,382,335 1,898,112

1,675,000

836,439

900,000

Payroll and related expense

9,560,746

9,270,000

Transfer to ACMF reserve

7,131,685

7,131,685

Other operating expense

Total expense

$

30,884,944 $ 30,359,020

Total Budget by Corporate Entity 2017 Revenue Atlanta Convention & Visitors Bureau, Inc.

$

2017 Expense

28,443,110 $ 28,232,498

ACVB Enterprises, LTD

1,302,000

1,152,446

ACVB Foundation, Inc.

1,517,000

1,500,000

$

31,262,110 $ 30,884,944

GWCCA CONTRACT GREGORY PIERCE

ACVB/GWCC Contract renewal • 1984 contract -25 year contract with several amendments including an extension for 7 years and the addition of the 1% marketing fund hotel tax.

• 2016 contract –split in two. One 10 year contract for the normal hotel tax, and one 20 year contract for the 1% marketing fund. All terms the same, with updated reporting language.

• GWCC/City of Atlanta contract – also split in two, one 10 year, and one 20 year.

PRESIDENT’S REPORT E

WILLIAM PATE

OLD BUSINESS GREGORY PIERCE

Renewals • • • • • • • • • • • • • • • • • • • • • • • •

Allan Vella Anderson Walston Andrew Saltzman Bob Hope Candace Byrd Fred Rich Hal Nowak Heather Halpern Jane Turner Jim Sprouse John Metz Julia Emmons Karen Bremer Leona Barr-Davenport Mark Castriota Mark Pettit Niko Karatassos Pete Moraitakis Rick Thorpe Ron Tarson Sam Massell Sharon Goldmacher Stan Morrell Tony Conway

2017 Board Elections for Vacancies The Fox Theatre Freeman Atlanta Hawks & Philips Arena Hope-Beckman, Inc. City of Atlanta Olympus Hal’s North Georgia Premium Outlets The Children’s Museum of Atlanta Georgia Hotel & Lodging Association Sterling Spoon Management Services (Retired-Atlanta Track Club) Georgia Restaurant Association Atlanta Business League Loews Atlanta Hotel Creaxion Buckhead Life Restaurant Group United Distributors, Inc. Georgia Tech Athletic Association Westin Peachtree Plaza Buckhead Coalition, Inc. communications 21 Stone Mountain Park Legendary Events

2019 2019 2019 2019 2017 2019 2019 2019 2019 2019 2019 2018 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2018

2017 Board Election continued New board members • • • • •

Roosevelt Council, Jr. Dr. Meredith Evans Tim Dahlen Dennis DeLoatch Dennis Adamovich

General Manager Director General Manager EVP CEO

»

HJAIA Jimmy Carter Presidential Library & Museum W Atlanta-Buckhead Carey-Executive Limousine College Football Hall of Fame

2017 2019 2019 2019 2019

NEW BUSINESS

ADJOURN