ACVB BOARD OF DIRECTORS MEETING Thursday, June 25, 2020 8:00 a.m. via teleconference
CALL TO ORDER Jo Ann Herold
Chair, Board of Directors
REMARKS William Pate President and CEO
DESTINATION REPORT Mark Vaughan EVP/CSO
ATLANTA OCCUPANCY | MAY 2020 May 2020 YTD occupancy
ACVB tax revenue district
TITLE Atlanta convention hotels
TITLE Hotels within 1-mile TITLE radius of GWCC
TITLE
Metro Atlanta
2019
TITLE
77.1%
123 123 123
83.3%
80.7%
123 70.9%
2020
TITLE
TITLE
42.8%
123
123
123
45.3% 123
123
123 45.6%
123
123 47.8%
LARGE GROUPS FOR FUTURE YEARS
KEY SALES ACTIVITY Year-to-date booking goal (May) – 98.8% Year-to-date lead goal (May) – 72.4%
Direct sales events ASAE Annual Meeting – Virtual Atlanta Update IAEE Expo Expo Holiday Showcase – Virtual
Photo by Paul Daniel | @pauldaniel5010
August TBD December December
BOOKINGS
ATLANTA AND GEORGIA COVID-19 TIMELINE First confirmed case in U.S. (Jan. 21)
WHO announces international public health emergency (Jan. 30)
Restrictions on China-to-U.S. travel (Feb. 2)
February Statewide shelter-inplace order (April 2)
Mayor Bottoms orders closure of in-person dining (March 19)
April Mayor Bottoms signs 14-day stay-at-home order (March 23)
Major Atlanta attractions announce temporary closures (March 13)
Mayor Keisha Lance Bottoms orders state-ofemergency and limits gatherings (March 16)
Restrictions on Europeto-U.S. travel (March 11)
First case in Atlanta (March 2) March
NCAA Men’s Final Four canceled (March 12)
Gov. Brian Kemp plans Georgia stay-at- May to begin reopening home order Georgia (April 20) expires (April 30)
MODEX concludes (March 12)
Fulton County Schools close (March 10)
Major Atlanta attractions begin to reopen (May 14)
GROUP ROOMS By event date and status
SCHEDULED FLIGHTS In 2019, an average of 1,200 flights departed from ATL each day. Similar levels were seen in 2020 until late March as airlines canceled the majority of their flights. After reaching lows of less than 300 flights a day in April and May, current schedules show increases in the number of flights through the end of July.
1,500 1,000 500 -
1/1
2/1
3/1
4/1
2020 Actual
5/1
6/1
7/1
8/1
2020 Scheduled
9/1
10/1
11/1
12/1
2019 Actual As of June 13
MAY 2020 Year to Date
City of Atlanta vs. luxury and upper upscale hotels of top 25 markets
MAY 2020
12-month running total
City of Atlanta vs. luxury and upper upscale hotels of top 25 markets
FINANCIAL REPORT Gregory Pierce EVP/CAO/CFO
2020 FORECAST ASSUMPTIONS FOR THE PURPOSE OF FINANCIAL PROJECTIONS
Hotel revenue for the entire year for the City of Atlanta projected to be
-53% Average occupancy rate for the entire year for the City of Atlanta projected to be
36% to 39%
ATLANTA CONVENTION & VISITORS BUREAU STATEMENT OF REVENUE & EXPENSE (in millions) ACTUAL YTD 05/31/20
FORECAST 6/1/20 THROUGH 12/31/20
CURRENT FULL YEAR FORECAST FYE 12/31/20 Original
Revenue – public
$5.6
$7.4
$13.0
Revenue – private
$0.7
Reserves
$2.5
$2.5
Total revenue TITLE
$8.8123
$10.4
123
$19.2
$34.0 123
Direct promotional expense
$3.9
$4.3
123
$8.2
$20.1 123
Payroll and related expense
$3.9
$0.2
$10.2
Operating expense TITLE
$1.5
Total expense
$9.3
TITLE
TITLE Excess (deficiency)
TITLE
123
$0.5
TITLE
$5.0
$4.5
123
$1.0
123
$9.8
123 ($0.5)
$1.2
$2.5 $19.1
123 $0.6
$27.5
$6.5 TITLE $0.0
$3.1 123 $33.4
123 $0.1
$0.6
ATLANTA CONVENTION & VISITORS BUREAU BALANCE SHEET AS OF 12/31/2019 (in millions) AS OF 5/31/20
YE 2019
VAR.
Cash and equivalents
$2.5
$3.2
($0.7)
Accounts receivable
$1.2
$5.1
($3.9)
TITLE
Investments Prepaid and other assets
TITLE
Property and equipment Total assets
TITLE Accounts payable and accruals
TITLE
Deferred revenue and liabilities Lines of credit Lease liability
TITLE
Fund balance – unrestricted
123 123 123 123
$9.1 $0.4
$3.2 $16.4
$0.9 $8.4 $0.0
TITLE
123 123 123
$11.5 $1.0
$4.1 $24.9
$1.9 $11.9 $1.7
TITLE
($2.4) ($0.6)
123
($0.9) ($8.5)
123
($1.0)
123
($3.5) ($1.7)
$0.7
123 $0.7
$6.4
$8.7
($2.3)
$24.9
($8.5)
Total liabilities and fund balance $16.4
123 $0.0
MARKETING REPORT Andrew Wilson EVP/CMO
RESPONSE TO THE BLM MOVEMENT Due to the protests that started May 29, we pivoted from our planned Still Atlanta/Still Beautiful brand affinity campaign to celebrate past and present Black leaders that have helped make Atlanta the city it is today. • Started posts June 5, ended June 23 • Goal to feature up to 26 people
• Posts promoted on Instagram, Facebook and Twitter • 300,000 impressions to-date (6/22) • Additional video content promoted via Facebook and Twitter
LOCAL PALATE SUMMER EDITION • Objective: Drive awareness of Atlanta’s food scene • June/July summer entertaining / recipe digital edition • Two full page ads • Still Atlanta • Cookbook • Editorial features three recipes from our cookbook • Distribution over 300K+/-
STILL ATLANTA 2020 Atlanta leisure campaign Recovery and Rebuild t
Opportunity for Atlanta hotels
OVERVIEW Integrated Southeast regional marketing campaign • • • • • • •
Objective to boost leisure hotel bookings Q3/Q4 ACVB to boost hotel investment by +700% Hotel participation limited to City of Atlanta Tiered pricing structure: first-come, first-served ACVB to partner with Expedia Group for conversion component Media to run across social, radio and digital Target markets: 6-hour Southeast drive market (weekend getaway) Metro Atlanta (backyard adventure) • Target audience: Creative class – skewing younger, no kids Families with kids Attractions, shopping centers, tour companies (food, brewery, movie, etc.), restaurants to provide compelling value-add offers
CAMPAIGN TIMELINE
Investment June
Social
Radio
$35k
$30k
Digital (Expedia) $80k
Paid social media affinity messaging to lead conversion messaging
July August
September
Radio promotional giveaways to start when Expedia program launches
3-month Expedia program to launch July 1
EXPEDIA CAMPAIGN – CREATIVE EXAMPLES
SOCIAL CAMPAIGN – STILL ATLANTA
Twitter post
Instagram post
Instagram stories
PRESIDENT’S REPORT William Pate President and CEO
OLD BUSINESS Gregory Pierce
2020 BOARD ELECTIONS Kimberly Beaudin t
Chick-fil-A College Football Hall of Fame – 2022
NEW BUSINESS
ADJOURN
DiscoverAtlanta.com