ACVB BOARD OF DIRECTORS MEETING Tuesday, March 2, 2021 8:00 a.m. via teleconference
CALL TO ORDER Kris Reinhard
Chair, Board of Directors
DESTINATION REPORT Mark Vaughan EVP/CSO
ATLANTA OCCUPANCY – JANUARY 2021 January 2021 YTD occupancy
2020
2021
TITLE
TITLE
123
68.1% 123
35.9% 123
123
75.4% 123
33.0% 123
Hotels within 1-mile radius of GWCC TITLE 123
123 70.6%
123 34.4%
123
123 61.7%
123 47.1%
ACVB tax revenue district
TITLE Atlanta convention hotels
TITLE
TITLE Source: STR
Metro Atlanta
TITLE
KEY SALES ACTIVITIES January 2021 room night goal January 2021 lead goal
120.5% 113.1%
Direct sales events
• • • • •
Photo by Paul Daniel | @pauldaniel5010
RCMA Helms Briscoe Travel South PCMA GSAE
Charlotte Dallas Atlanta Washington, D.C. Chattanooga
March April April April April
FINANCIAL REPORT Gregory Pierce EVP/CAO/CFO
2020 FORECAST ASSUMPTIONS FOR THE PURPOSE OF FINANCIAL PROJECTIONS Total hotel revenue for 2020 was down in City of Atlanta PLACE IMAGE HERE
-62.4% Average occupancy rate for 2020 for the City of Atlanta was
36.2% @christopherbw
ATLANTA CONVENTION & VISITORS BUREAU STATEMENT OF REVENUE AND EXPENSE (in millions) Revenue – public Revenue – private
ACTUAL FORECAST YTD YTD 12/31/20 12/31/20
$9.9 $3.1
$10.1 $ 2.8
Var Original 2020 ($0.2) $27.5 $0.3 $ 6.5
Public revenue released/reserves Total revenue
$5.0 $18.0
$ 5.0 $17.9
$0.0 $0.1
Direct promotional expense Payroll and related expense
$7.6 $8.8
$7.4 $8.5
($0.2) ($0.3)
$20.1 $10.2
Operating expense
$1.9
$2.0
$0.1
$ 3.1
Total expense
$18.3
$17.9
($0.4)
$33.4
Excess (deficiency)
($0.3)
$0.0
($0.3)
$ 0.6
$ 0.0 $34.0
ATLANTA CONVENTION & VISITORS BUREAU BALANCE SHEETS (in millions)
AS OF 12/31/20
YE 2019
Var.
Cash and equivalents
$2.2
$3.2
($1.0)
Accounts receivable
$3.2
$5.1
($1.9)
Investments
$6.5
$11.5
($5.0)
Prepaid and other assets
$0.5
$1.0
($0.5)
Property and equipment
$2.9
$4.1
($1.2)
Total assets
$15.3
$24.9
($9.6)
Accounts payable and accruals
$0.9
$1.9
($1.0)
Deferred revenue and liabilities
$7.5
$11.9
($4.4)
Lines of credit
$1.5
$1.7
($0.2)
Lease liability
$0.7
$0.7
$0.0
Fund balance – unrestricted
$4.7
$8.7
($4.0)
Total liabilities and fund balance
$15.3
$24.9
($9.6)
Transforming and adapting: Aligning strategies to the new travel era
Keri Spivey
Director of Market Management – Central Cities Region Expedia Group
Transforming and adapting Aligning strategies to the new travel era
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
Welcome Keri Spivey Director, Central Cities Region Expedia Group Travel Partners Group
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
17
Thank You ACVB
Executive Committee and Board of Directors!
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
18
Agenda Partnership with Expedia Group | Learn about our brands and our team Attracting the traveler| Industry research on the first to travel
Providing flexibility and safety| Adapting to a new travel era Expand your reach| Understanding when demand is returning Taking action| 2021 travel trends
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
19
Portfolio of leading travel brands Partnering with Expedia Group
Attract diverse travelers •
Through Expedia Group channels and platforms
Generate global demand • From more than 200 travel booking sites
Maximize revenue potential •
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
Leverage our team and Partner Central
20
Your Expedia Atlanta Team
Alex Fromson
Dionne Chu
Area Manager
Market Manager
Dom Phillips Business Development Manager, TravelAds
Leah Garey Sr. Business Development Manager, Media Solutions
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
Chris Metken Associate Market Manager
Wendy Howie Sr. Account Manager, Hotwire
Maria Bustamante Market Associate
Marye ChavezMikula Market Manager (Support through March 31)
21
Attracting the traveler
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
22
COVID-19 has changed travelers’ behavior – they tend to book lastminute,through mobile devices. Price, hygiene and flexibility are key
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
23
2/3
intend to take the same number of trips as before
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
Source: Wakefield Research, 2020
24
Drive-to destinations
7
In 10 travelers are willing to drive up to 6 hours for a leisure trip during COVID-19
Families more likely to drive instead of fly
% 59
Sources: Expedia Group Media Solutions – Traveler Sentiment & Influences 2020/2021 / "Vrbo US 2021 Trend Report
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
Four most important elements of a listing What is most important to you when looking at a listing?
Price
Location
Available promos or value-added incentives
Ratings or reviews
Global
74%
58%
34%
31%
North America
71%
58%
32%
35%
Latin America
71%
56%
45%
25%
Asia Pacific
78%
59%
27%
33%
EMEA
73%
58%
33%
33%
Source: What travelers want, Wakefield Research, 2020 © 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
26
Adapting to a new travel era – customer centricity
Virtual Agent
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
Safety measures
More flexible offers 27
Virtual Agent
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
Safety measures Partner Central
Easy to use heath and hygiene checklist Automatically added to listings
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
What we have seen…
8 in10
choose properties with flexible policies
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
Source: Vrbo COVID market research 2020.
30
2021 Flexible Bookings – Atlanta
94%
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
of bookings made are refundable in Atlanta
31
Different rate plans to meet different travelers’ requirements Expand your options to attract different travelers
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
32
Sharing ideas © 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
33
Supporting our Partners
“I need to know where the market is today and how is the demand evolving...” Market Insights Report
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
“Now more than ever, rate integrity and expanded reach matter” Wholesale Rate Distribution
34
Atlanta Booking Trends
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
35
Q4 2020 Market Trends – Atlanta
50%
3
$122
25%
Booking Window
Length of Stay
ADR
Cancel Rate
Hotwire
0-1 Day
Average
-15% YOY
+4.5% YOY
57% same day bookings 48% weekend stays 21% Friday purchases
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
36
Top 2021 Search Dates and Future Outlook – Atlanta Top search dates in Atlanta Feb 12 - 14
WoW Search Growth Trend
Valentine’s Day – Cheersport Weekend 40.00%
Q1 Saturdays
30.00%
Leisure travel
July 12
MLB Allstar Game
July 22-23
Justin Bieber Concert
Aug 29-30
Goo Goo Dolls & KISS Concert
WoW%
20.00% 10.00% 0.00% -10.00% -20.00% -30.00%
Search Week Sept 2-6
Dragon Con
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
37
Competing Destinations and Top Origins - Atlanta Competing markets in AMER – Q4, 2020 Atlanta| 19 Day Booking Window, ADR: $122, Cancellation Rate: 26%
Charlotte| 18 Day Booking Window, ADR: $105, Cancellation Rate: 23%
Houston| 15 Day Booking Window, ADR $105, Cancellation Rate: 15%
Dallas| 19 Day Booking Window, ADR $121, Cancellation Rate: 26%
Nashville| 33 Day Booking Window, ADR: $133 , Cancellation Rate: 29%
New Orleans| 48 Day Booking Window, ADR: $137, Cancellation Rate: 43%
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
Atlanta top traveler origins
Atlanta Greenville Miami Chicago Bronx, NY Philadelphia Orlando Charlotte Houston Brooklyn, NY 38
Star Rating Trends – Atlanta Share shift into 3 Star and above Share Shift
ADR YoY
+ 6.0pp
30% + 4.6pp + 3.7pp
20% + 1.5pp
10%
+ 0.4pp
0.0pp
- 0.0pp
0%
- 2.0pp - 4.0pp
-10%
- 2.7pp
-20%
- 6.0pp - 8.0pp
-30%
- 7.4pp
- 10.0pp
-40% 2 stars
Room Night share
ADR YoY
+ 2.0pp Room Night Share Shift
Room Night Share Shift YoY
+ 4.0pp
8.2%
2.5 stars
3 stars
3.5 stars
30.3%
24.2%
15.3%
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
4 stars
17.2%
4.5 stars
2.5%
5 stars
2.2% 39
Driving Demand
Contact Jo Ann Haden-Miller (ACVB) or Leah Garey (Expedia Group) for additional questions on campaigns: LGarey@ExpediaGroup.com & jhadenmlr@atlanta.net
ACVB Campaign Partnerships
Atlanta Convention and Visitors Bureau
Buckhead Hotel Council
• Campaign Dates: July 1 – November 30, 2020
• Campaign Dates: December 1 – February 28, 2021
• 11 participating properties
• 4 participating properties
• More than 25,000 Room nights
More than 6,000 room nights
•
• Almost 30,000 air tickets
•
Return on Ad Spend: 41
• Return on Ad Spend: 118.6
•
More than a 30% increase in travelers per day
• Almost a 15% increase in room night demand
•
Almost a 40% increase in room night demand
• © 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
More than 5% increase in ADR
We Can Do This Together
1.
Reassure travelers with safety measures and detailed listings
3.
2.
Understand trends to stay competitive
© 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary © 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
Maintain flexible change & cancel policies
4.
Prioritize special deals & offers 41
Q&A © 2020 Expedia, Inc, an Expedia Group Company. All rights reserved. Confidential and proprietary
MARKETING UPDATE
Andrew Wilson EVP/CMO
ATL UNGUIDED OUT TO PRINT
RECOGNITION SILVER ADRIAN AWARD •
HSMAI – Best website category
APPLE MAPS TRAVEL GUIDES • First DMO partnership agreement to syndicate branded content on the Apple Maps platform/ecosystem
PRESIDENT’S REPORT William Pate President and CEO
OLD BUSINESS
2021 ELECTION OF EXECUTIVE COMMITTEE MEMBERS t
Derrick Morrow Hyatt Regency Atlanta
Daryl Evans Great Southern Wood Preserving (YellaWood)
NEW BUSINESS
ADJOURN
DiscoverAtlanta.com