See Monterey FY 2023 - 24 Business Plan

Page 1

BOARD OF DIRECTORS 4 COMMITTEES 5 STRATEGIC PLAN UPDATE 8 TRANSFORMATION – SEE MONTEREY 10 FY2023-24 BUDGET SNAPSHOT 12 SITUATION ANALYSIS 13 FY2023-24 BUSINESS PLAN 22 MARKETING COMMUNICATIONS 23 BUSINESS DEVELOPMENT 31 COMMUNITY RELATIONS 36 OPERATIONS, HR & ADMINISTRATION 38 2022 - 2024 ARPA MARKETING PROGRAMS 39 INSIDE 1 2023-24 BUSINESS PLAN

FROM THE CEO

Dear Esteemed Stakeholders,

I hope this letter finds you in good health and high spirits. The Monterey County Convention & Visitors Bureau is thrilled to share with you our strategic vision for the upcoming year, which promises to mark a new era of growth and prosperity for all communities and residents of Monterey County.

In an ever-evolving landscape of tourism and hospitality, it is imperative that we remain adaptive, innovative, and focused on enhancing the experiences of both visitors and residents alike. We have undertaken an extensive analysis of industry trends, feedback from valued stakeholders like you, and the unique attributes that make Monterey County a sought-after destination.

Key Highlights of Our New Business Plan:

Diversified Offerings: Building upon our region’s rich cultural heritage, natural beauty, and vibrant communities, we will showcase an array of experiences that cater to diverse interests and preferences.

Sustainable Tourism Initiatives: We recognize our responsibility to preserve the pristine environment that draws visitors to our County. Our plan includes innovative sustainable tourism promotion to foster a harmonious coexistence between tourism and nature.

Collaborative Partnerships: We are committed to fostering collaboration with local businesses, community organizations, and government bodies to collectively contribute to the economic and social vitality of Monterey County.

Enhanced Visitor Engagement: Our digital transformation initiatives will enhance the visitor journey, making it seamless, informative, and interactive. This includes a revamped website, immersive mobile app, and enhanced social media engagement.

Rebranding the Destination: After a successful 10-year run with “Grab Life by the Moments” as Monterey County’s brand line, the brand has been reinvigorated and a new campaign launches now. Inspiration has always been the destination’s super power, now we’ll focus it on creating greater connectivity for travelers and residents alike.

We believe that these strategic steps will enhance the visitor experience and drive sustainable growth and long-term success for both our organization and the Monterey County community. Together, we will create a future that celebrates the beauty, culture, and opportunities our region has to offer.

Warm regards,

2

From the REAL Rob O’Keefe:

How did that letter sound? Not quite like me? But not totally off… and definitely the kinds of things I would say, our focus for the coming year and what I stand behind.

Technology is amazing. AI and machine learning, among other tech innovations, are game changers for our industry. So much so that I used ChatGPT to write a letter to make the point! Don’t get me wrong, we did some light editing and the letter expresses my vision and game plan for the coming year. With our Long Term Strategic Plan guiding the way, we will continue to use innovation to serve up inspiration for our visitors, our community and ourselves, as you will see in this year’s Business Plan.

Speaking of innovation, there is one thing ChatGPT got totally wrong – our name! We are thrilled to publish this Business Plan with our fantastic new branding under our new organization name: See Monterey.

3 2023-24 BUSINESS PLAN
- The REAL Rob O’Keefe President & CEO, See Monterey

BOARD

OF DIRECTORS

Officers Amrish Patel, Chair, Green Lantern Inn

Bina Patel, Chair Elect, Peninsula Hospitality Group

Teri Owens, Past Chair, Embassy Suites by Hilton Monterey Bay Seaside

Stefan Lorch, Treasurer, Monterey Marriott

Fady Hanna, Secretary, Lighthouse Lodge

Directors Mary Adams, Monterey County Board of Supervisors

Sylvain Briens, The Sanctuary Beach Resort

Janine Chicourrat, Portola Hotel & Spa at Monterey Bay

Kimbley Craig, City of Salinas

Kevin Ellis, Hyatt Regency Monterey Hotel & Spa

Kirk Gafill, Nepenthe/Phoenix Corporation

Amy Herzog, Visit Carmel

Donna Langley, Pebble Beach Resorts

Ed Smith, City of Monterey

Chris Sommers, Monterey Plaza Hotel & Spa

Barry Toepke, WeatherTech Raceway Laguna Seca

John Turner, InterContinental The Clement Monterey

Erik Uppman, Cannery Row Company

Advisors

Dana Allen-Greil, Monterey Bay Aquarium

Jacquie Atchison, Arts Council for Monterey County

Carol Chorbajian, Monterey County Hospitality Association

Norm Groot, Monterey County Farm Bureau

Tonya Hufford, Monterey Conference Center

Michael La Pier, Monterey Regional Airport

Mike LeBarre, City of King City

David Lurie, Carmel Mission Inn

Paula Joy MacNab, Monterey County Film Commission

Sean Panchal, Presidents Inn

Erin Sollecito, Monterey Touring Vehicles

Kim Stemler, Monterey County Vintners & Growers Association

Hans Uslar, City of Monterey

Anna Velazquez, City of Soledad

Matt Mogensen, City of Marina

4

COMMITTEES

See Monterey operates with the guidance of several committees designed with a focus on a specific area of strategic importance for the direction of the organization.

EXECUTIVE COMMITTEE

Chair, Amrish Patel

Supports and evaluates the President & CEO, vets confidential issues and acts on behalf of the full Board of Directors in case of an emergency.

FINANCE COMMITTEE

Chair, Stefan Lorch

Advises the Board on financial matters and policies.

MARKETING COMMITTEE

Chair, Erik Uppman

Provides strategic input, advice and collaboration on marketing communications plans and activities.

SALES COMMITTEE

Chair, Janine Chicourrat

Actively participates in the development, planning and evaluation of group sales and service programs.

COMMUNITY RELATIONS COMMITTEE

Chair, Norm Groot

Raises awareness of the benefits derived from Monterey County’s hospitality industry among partner jurisdictions, business associations and community groups.

COMPENSATION COMMITTEE

Chair, Bina Patel

Reviews compensation structure and benefit programs.

BOARD DEVELOPMENT COMMITTEE

Chair, Teri Owens

Solicits and reviews board position applications and makes candidate recommendations to fill vacancies.

MCTID OVERSIGHT COMMITTEE

Chair, John Turner

Comprised of hotel representatives from within the Monterey County Tourism Improvement District (MCTID) boundaries, completely oversees MCTID budget and program development and monitoring.

5 2023-24 BUSINESS PLAN
Visit SeeMonterey.com/Members/Board to learn more about the Board of Directors and Committees including meeting dates, agendas and minutes

OUR WAY

VISION

A thriving tourism economy that enriches Monterey County’s economic vitality and quality of life.

MISSION

To generate community prosperity for Monterey County through the responsible promotion and growth of the tourism economy.

Guiding Principles

Promotion of Monterey County as a destination and See Monterey’s efforts to strengthen the tourism and hospitality industry must:

• Promote an inspiring, memorable, and lifeenriching visitor experience.

• Enhance the community’s quality of life by increasing economic vitality throughout the county.

• Consistently engage the community to grow awareness and appreciation of tourism, gain resident input, and maintain productive collaboration with local governments.

• Encourage collaboration with our community partners to create a shared vision for sustainable growth in the region.

• Educate and inform locals and visitors to ensure that our natural resources and environment are used responsibly.

• Support an environment that is welcoming to all and respects our unique history, land, and culture.

• Ensure fiscal responsibility in driving results for our investing members and partners.

6

VALUES

Connectivity

Collaboration

Agility

Accountability

Inclusivity

Sustainability

DIVERSITY, EQUITY AND INCLUSION COMMITMENT

See Monterey is committed to ensuring that all members of the organization feel welcome and have an equal opportunity to connect, belong, and grow.

Strategic Plan Update: Finding Our Way Here

What a difference a year can make.

Last year’s Business Plan introduced the Long Term Strategic Plan, meant to guide the destination and tourism economy into the future. Much work has been done to put that strategy into action, including an organizational name change. Now, See Monterey’s Long Term Strategic Plan is in its second year and while the work is far from over, there have been a number of accomplishments that map back directly to the Strategic Imperatives, and many more in the works.

Contribute to the longterm viability of the tourism economy

• Secure destination marketing partnerships with South County cities – welcome King City and Soledad

• Spread the love and benefits of tourism Countywide – new video and photography featuring 27 destinations and businesses from north to south, coast to valley

Generate the ideal visitation for our destination

• Revisit, refine and relaunch the Monterey County Brand – See Monterey has a new name, a new look and a new promise to visitors: No matter where your path takes you throughout Monterey County, one thing is for sure: inspiration is ahead

• Expand research capabilities to measure visitation patterns, better target key audiences and evaluate tourism impact – the biannual Marketing Impact Study focuses on broader destination ROI; Phase I of a Visitor Profile Study provides key insights; implementing new planning and reporting dashboards will guide decision making 2023-24 Filming Locations

8

Enhance community and member engagement

• Launch a campaign to better communicate the positive impact of tourism for residents and decision makers – expand upon Community Relations campaign to include Community Workshops, Input Sessions and Community Influencers

• Communicate the organization’s programs that promote sustainable/responsible travel – relaunch ‘Sustainable Moments’ as ‘The Right Path’ and introduce to the community; build engagement with the community to make the program of educating travelers and residents stronger and more effective

• Launch Community Relations Committee composed of a broad mix of community influencers – thank you to our committee members for your insight and guidance

• Grow See Monterey memberships – the community is stronger together, and enhanced benefits and reporting will provide more value for this FREE membership

Ensure long term organizational financial sustainability

• Renew Monterey County Tourism Improvement District at higher level – SUCCESS! More on what we will do with increased investment in this plan

• Conduct Financial Management assessment

Cultivate a strong organizational culture for the team and Board

• Evolutionize leadership culture and team performance and development approach – Board of Directors retreat to review and revise future path forward

Over the years, periodic checkpoints will ensure the organization stays on track and that the Strategic Plan still meets the needs of the destination and community over time.

A formal update is planned to begin in January 2024, to be published in the 202425 Business Plan.

9 2023-24 BUSINESS PLAN

TRANSFORMATION: SEE MONTEREY

It started with a singular, compelling idea – the ONE thing people need to know about Monterey County. Its not just the natural beauty, wide range of accommodations, coastal cuisine or world-class events. Its all of it. It’s all here, and it’s all connected.

Naturally Connected

This is the foundation the new See Monterey brand is built upon. The idea that Monterey County is not just one thing – it’s several communities that offer a vast mosaic of experiences, each complementing the other (and in close proximity). The majestic and epic scenery – from coast to redwood forest to verdant valley makes people feel more connected to nature and promotes well-being. But connectivity in Monterey County is much more life-enriching. It has the unique assortment of experiential ingredients that inspires people to connect (or reconnect) with friends, family, and loved ones – even connect with themselves.

After more than a decade of challenging people to “Grab Life by the Moments” it was time to refresh the Monterey County brand to remain relevant to today’s consumer, be more competitive within the comp set and position the destination for the next decade.

The process started with a robust research plan including in-person and online focus groups, surveys to qualified travel intenders, competitive analysis and industry best practices. Along the way a Rebrand Task Force weighed in on how the work was resonating to make sure the process stayed on the right path. The result is a plan and campaign designed to support See Monterey’s mission of generating community prosperity for Monterey County through the responsible promotion and growth of the tourism economy.

Challenges

Address the lack of awareness of Monterey County (the brand) and its distinctive parts; give life to each community under the brand umbrella

Build awareness, familiarity, and intent to visit beyond traditional drive and short-haul flight markets

Unify the community and stakeholders and give them something to rally behind

10

Key message pillars

Naturally Connected

Natural Beauty and Wildlife

Stunning shoreline vistas, towering redwood forests, marine sanctuary, pristine beaches and dunes, miles of scenic hiking, walking and biking trails.

Sustainability

How do we protect the environment?

Personality

Foundational Equities

Eco to Lux

Lodging

Wide range of accommodations from legendary resorts with worldclass wellness spas and amenities to family and ecofriendly hotels, camping/glamping.

How do we leave a place better than we found it?

Coastal Cuisine

Verdant farmlands and sea supply fresh, local seafood and produce. Abundant vineyards, top notch wineries, and local breweries with plenty to sip and savor.

How does sustainability impact our food and wine?

World-class Events

Car week and Concours

D’elegance, AT&T

Pebble Beach Pro

Am, U.S. Women’s

Open, Monterey

Jazz Fest, Big Sur

Food & Wine, Big Sur Marathon

How do we lighten our event footprint?

Peaceful, Welcoming, Inspiring, Natural, Authentic

World renowned aquarium Legendary golf courses and events

Stunning scenery, pristine coastline

Temperate climate

Agricultural jewel/Salinas Valley

FI N D Y OU R W A Y H ER E T M

The rebrand process provided the opportunity to reevaluate how the organization is represented in the community. The connected letters of the logo represent the connectedness of the County and the communities that make it an exceptional place to visit and live.

Monterey is made up of endless paths…and each one takes you to something incredible. These paths tie all of Monterey together, creating one big, epic journey. They connect you to your next destination and your next adventure—but also to the people around you. The question is: which way will you go? No matter what path you take, it’s sure to lead to inspiration.

11 2023-24 BUSINESS PLAN

FY2023-24 BUDGET SNAPSHOT

For many years, Monterey County has operated as a first-class destination with a secondclass budget. In the last fiscal year, the hotel community stepped up to change that. The new Monterey County Tourism Improvement District plan went into effect and together with the jurisdiction investment communities it allows Monterey County to compete at a much higher level. The new budget will enable See Monterey’s marketing and sales programs to reach into further markets to attract travelers who will stay longer, spend more and drive greater economic vitality and quality of life for communities and residents.

*The City of Monterey is projected to invest an estimated $2.15 million, less $350,000 for the repayment of the Monterey Conference Center renovation.

12
Revenue Jurisdiction Investment* County of Monterey 1,775,580 City of Monterey 1,800,000* City of Carmel-by-the-Sea 204,030 City of Pacific Grove 151,892 City of Seaside 102,732 City of Salinas 100,946 City of Marina 110,000 City of King City 15,750 City of Soledad 4,590 Subtotal Jurisdiction Investment $4,265,520 Monterey County Tourism Improvement District Monterey County 2,252,270 City of Monterey 3,294,107 City of Carmel-by-the-Sea 491,640 City of Pacific Grove 338,331 City of Seaside 374,304 City of Salinas 281,025 City of Marina 245,134 Subtotal MCTID $7,276,810 Private Revenue $50,200 Total Revenue $11,592,530 Expense Group Sales & Services Business Development Programs 99,705 Group Business Development Events 1,170,051 Leisure Business Development Events 342,040 Meeting Incentives 100,000 Group Marketing 850,300 Operations & Talent 1,692,707 Total Group Sales & Services $4,254,804 Marketing Communications Leisure Marketing 2,404,590 International Marketing 145,000 Luxury Marketing 235,000 Public Relations 321,000 Agency Fees 608,000 Operations & Talent 1,665,651 Total Marketing Communications $5,379,241 Community Relations $532,889 Administration $1,502,268 Total Expenses $11,669,201

Situation Analysis

Using hotels as a bellwether for overall travel, 2023 will see the return of occupancy back to pre-pandemic levels. Looking ahead to 2024, there are positive signs of continued growth in the travel industry. While this is at a slightly moderated pace compared to the initial pandemic-era surges of the last few years, forecasts anticipate a steady expansion trajectory through 2026.

From U.S. Travel’s June Forecast:

• There will be a return to more normalized growth for domestic leisure travel, which will remain resilient despite some headwinds

• Expect to see rapid 2023 growth in domestic business travel with a slight slowdown toward the end of the year and into 2024 due to a still-expected mild recession - full recovery in terms of volume has been pushed to 2025

• The U.S. will receive a boost in international visitations, with international inbound travel expected to experience the strongest growth of any segment (though still far behind)

The road ahead requires adaptability, foresight and collaboration. See Monterey’s plans and strategies are built on the best information available at the time but remain flexible to adapt to changing circumstances.

Current U.S. hotel forecasts for 2024 anticipate demand to be 3% higher than the current year, with average daily rates 3.1% higher, for a year-over-year increase in RevPAR of 4.6%. Tourism Economics’ mid-year forecast update anticipated growth will slow but demand will continue to increase given the return of group business and international travel.

Although the current year’s ADR is expected to be 17% higher than 2019, real ADR, which adjusts for inflation, is expected to be 2% lower than 2019.

Given 2023 will see the return of occupancy back to pre-pandemic levels, the current forecast from STR and Tourism Economics for 2024 anticipates 3% more demand than 2019 and average daily rates 21% higher, resulting in RevPAR 19% higher than 2019.

13 2023-24 BUSINESS PLAN
19 20 21 22 23 24 25 100 Occupancy Index Index (2019=100) 64 88 98 100 103 106 19 20 21 22 23 24 25 100 ADR Index Index (2019=100) 78 95 113 117 121 125 19 20 21 22 23 24 25 100 RevPar Index Index (2019=100) 52 83 108 113 119 124
Note: RevPar reflects standard methodology. Source: STR; Tourism Economics National Outlook: U.S. Hotel Forecast

National Outlook: U.S. Travel Spending Forecast

Domestic leisure travel is expected to remain strong, but with leveled out rates of growth in 2023 and 2024. Volume is expected to grow faster year-over-year than inflation-adjusted spending in 2024 and beyond.

Both volume and spending on domestic business travel is expected to grow, but will still be in recovery mode, largely due to current economic conditions. While double-digit growth is anticipated in 2023, it is expected that growth in inflation-adjusted spending will be slower than volume in 2024 and beyond.

International inbound travel forecasts were upgraded due to increased demand and stronger expectations of market return. Year-over-year, inbound travel volume is projected to grow 31% in 2023 and 18% in 2024, while inflation-adjusted spending is projected to grow 34% in 2023 and 19% in 2024.

*Spending dollars adjusted for inflation

14
Actual* Forecast* 2019 2020 2021 2022 2023 2024 2025 2026 Total Travel Spending $1.17 T $722 B $909 B $1.02 T $1.09 T $1.15 T $1.18 T $1.20 T Leisure $867 B $622 B $787 B $799 B $839 B $878 B $897 B $921 B Business $306 B $101 B $122 B $219 B $254 B $269 B $278 B $282B Domestic $992 B $682 B $868 B $918B $960 B $989 B $1.01 T $1.02 T Leisure $722 B $589 B $753 B $718 B $731 B $749 B $759 B $765 B Business $270 B $93 B $115 B $201 B $229 B $239 B $248 b $252 B Transient $157 B $63 B $81 B $122 B $134 B $140 B $146 B $148 B Group $113 B $30 B $34 B $79 B $94 B $99 B $103 B $104 B International $181 B $41 B $41 B $99 B $133 B $158 B $168 B $185 B Leisure $145 B $33 B $34 B $81 B $107 B $129 B $139 B $156 B Business $36 B $8 B $7 B $18 B $25 B $29 B $29 b $30 B Transient $22 B $5 B $5 B $13 B $16 B $18 B $18 B $18 B Group $14 B $3 B $2 B $6 B $9 B $11 B $11 B $11 B

California Outlook: Visitor Volume & Spending

The U.S. Travel Association and Tourism Economics estimate that travel spending in California in 2023 has been 10% higher than in 2022, more than double the national average of 4.7%. However, the state still lags 2019 spending by 4% when the U.S. average year-to-date is 3.7% higher than pre-pandemic.

Visit California’s 2023 forecast for domestic spending in the state is anticipated to be 12% higher than 2019, with business spending 3% above pre-pandemic levels. For 2024, the forecast anticipates domestic leisure spending to be 4% higher than 2023 (20% higher than 2019) and domestic business travel to be 10% higher than the current year (13% higher than 2019).

Total domestic: $131.3 B

Leisure: $102.0 B

Business: $29.2 B

Sources: STR, Visit California, Tourism Economics

15 2023-24 BUSINESS PLAN
19 20 21 22 23 24 25 26 27 Total California visitor volume (millions) Percent value relative to 2019 112% 100% 49% 75% 91% 97% 102% 106% 109% 22 23 24 25 26 27 California domestic spending forecast Indexed to 2019 101 105 87 112 116 103 119 120 113 125 126 120 130 131 126 134 135 131 19 20 21 22 23 24 25 26 27 Total visitor spending in California Percent value relative to 2019 Total spending, nominal Total spending, real 131 103 100 47 47 70 67 93 83 107 92 115 97 121 100 126 102

California Outlook: Statewide Room Demand Forecast

As part of the Central Coast region (included in the “Other Regions” section of the below chart), Monterey County is expected to see steady year-over-year growth over the next two years.

16
19 20 21
Room Demand California Gateway regions All other regions 450K 400K 350K 300K 250K 200K 150K 100K 50K 0 Room Demand 2019 2020 2021 2022 2023 2024 2025 California 407,203 250,111 328,241 377,304 402,573 426,050 437,218 Gateway Regions 278,551 150,622 202,253 249,966 272,300 289,975 296,767 All Other Regions 128,813 100,517 126,780 127,383 130,273 136,075 140,451
22 23 24 25

California Outlook: International Spending Forecast

Visit California’s international forecast for 2024 anticipates spending above pre-pandemic levels for the first time with international leisure spending 3% above 2019. International business spending is anticipated to have a dramatic uptick with a 42% year-over-year increase. However, this is still expected to be 5% below 2019. The challenge for California is largely China. China travel to California remains at only 37% of 2019, and although it is projected to double in 2024 that still leaves it at only 76% compared to 2019.

The return of international spending to pre-pandemic levels overall points to air service being restored from most of the state’s most important markets. Of the state’s 14 largest international markets, visitor spending in 2024 is expected to be at or above 2019 level in 10 of those markets.

17 2023-24 BUSINESS PLAN
22 23 24 25 26 27 60 72 32 86 100 53 101 103 95 108 108 108 113 113 113 117 117 117 Sources: Visit California, Tourism Economics Total International International Leisure International Business $24.2 B Total International $19.8 B International Leisure $4.48 B International Business 2023 Spending Forecast

Monterey County Outlook: Hotel Forecast

Forecasts for Monterey are more modest than the U.S. overall as well as California given anticipated underperformance in the coming years in Retail Sales, Population Growth and Consumer Price Index. It is anticipated that ADR will continue to increase over the next four years with only seasonal dips. Lodging Analytics Research & Consulting (LARC) forecasts that by 2027, ADR will be 44% higher than in 2019. With slower demand recovery but strong ADR, RevPAR for 2024 is forecasted to be 19% higher than 2019. However, demand is not anticipated to recover to pre-COVID levels until after 2027.

18
21 22 23 24 25 26 27 Percent change against 2019 Demand Occupancy ADR RevPar 50% 40% 30% 20% 10% 0 -10% -20% -13% -6% -8% -7% -7% -7% -5% -12% -4% -6% -6% -6% -7% -8% 13% 26% 24% 27% 32% 37% 44% 0% 20% 16% 19% 23% 27% 32%
Sources: Lodging Analytics Research & Consulting &Costar

Meetings & Events Outlook

The 2023 Global Meetings and Events Forecast from American Express shows that in-person meetings are happening “more rapidly and in greater volume than expected; however, the numbers are expected to stabilize for 2024.”

DMO room nights on the books

Pace for future dates vs. same period in 2019

But the meetings and events segment is recovering much more slowly than leisure travel, with the U.S. Travel Association and Simpleview reporting that current DMO group room nights on the books for 2024 remain more than 20% below the same period in 2019. Northstar Meetings Group and Cvent’s Meetings Industry PULSE Survey in June 2023 showed that event inventory continued to be limited as events postponed for COVID are still in the pipeline. A quarter of planners report events postponed due to the pandemic are yet to be produced.

19 2023-24 BUSINESS PLAN
23 Q1 23 Q2 23 Q3 23 Q4 24 Q1 24 Q2 24 Q3 24 Q4
April 2023 As of date July 2023 0% -10% -20% -30% -13% -12% -16% -12% -25% -18% -19% -14% -21% -21% -21% -21% -29% -27% -21% -19%
Sources: Simpleview & U.S. Travel Association

SENTIMENTS, TRENDS AND OPPORTUNITIES

Budget

Despite declining inflation rates, domestic consumers remain concerned about the price of travel. In Destination Analysts’ 2023 State of the American Traveler, more travelers now say it is a bad time to spend on leisure travel (36%) than a good time (29%).

Lower travel budgets have seen day trips rise at a higher rate than overnight trips. 45% of domestic travelers report taking an overnight leisure trip in the last month, compared to 54% taking day trips.

While domestic consumers are changing behavior based on financial conditions, there remains excitement to travel. More than 8 in 10 U.S. consumers say they are excited about leisure travel in the next 12 months.

Generational Travel

When Millennials overtook Boomers as the largest generation, most marketers turned their attention to this key audience. Millennials, and now Gen Z, have become the “must have” audience for destinations. While the Millennial audience is important, Boomers represent a key opportunity for travel. This audience has built wealth and has extensive savings. As they are retiring, they also have the time to travel, and travel at non-peak times.

AI Adoption

Artificial intelligence system ChatGPT reached one million users in just five days. Skift Research anticipates four primary uses in the travel industry: technology development, customer support, reputation management and advertising optimization. Although 81% of travel industry professionals believe the integration of AI technology will benefit their organization, adoption is slow, with just 19% prioritizing development and launch of these tools. There are concerns about the reliability of these tools with reports of platforms “hallucinating” information.

20

Meeting Attendance Returns

In the 2023 State of the Meetings Industry, Knowland reports that attendees have returned to meetings and events, with events generating 80% or more of 2019 levels. With the return of attendees, planners are turning to larger event spaces. There is a concern of staffing shortages impacting the service at meeting venues. Event organizers say their biggest obstacle to the return of pre-COVID meeting attendance is the increased cost of planning and executing events.

Culinary Travel

In the 2023 State of the American Traveler from Destination Analysts, food and cuisine is the passion or hobby with the highest interest, with 54% of domestic consumers who have “extremely high interest” or “high interest” in the product. This aligns with dining as the top trip activity in the Monterey Visitor Profile across all segments.

Travel and Sustainability

Research out of Australia (University of Queensland) has shown that “even people with high pro-environment values forgive themselves for not behaving in environmentally sustainable ways when on vacation.” The result is that efforts to educate travelers and tell them about the impact of their decisions often doesn’t influence their travel behavior. The same research has shown that the key is to alter infrastructure and design programs that make it easy for consumers to behave in sustainable ways. By implementing the right changes, hospitality businesses can be more sustainable, save money and maintain high customer satisfaction.

21 2023-24 BUSINESS PLAN

THE PLAN

Last fiscal year was fueled by the launch of the Long Term Strategic Plan. Capitalizing on that momentum, this year is focused on a new brand vision. Putting the new brand and accompanying strategies and tactics into place will be the foundation of this year’s plans. It’s a new path to chart, a new adventure to explore – the opportunity to find our way here.

22

Marketing Communications

Strategic Priorities

1. Build Leisure and Group Travel in Drive and Short-haul Markets; Extend Reach in Long-haul Markets

• Develop integrated campaigns to drive engagement and repeat visitation with those who are more destination aware

• Grow awareness in long-haul markets

2. Extend Visitor Stay and Spend

• Focus on high-value travel – visitors that stay longer and spend more

• Drive visitation when needed most –off-season, mid-week

• Encourage visitors to stay one more night

3. Grow Awareness to Drive Group Business

• Target corporate and association meeting planners in direct flight markets and expand reach in Southwest, Midwest and East Coast

Tactical Considerations

• Develop integrated campaigns across Paid, Owned, Earned and Shared channels to maximize reach and efficiencies

• Place compelling story angles that touch each jurisdiction and proactively outreach to high-value media targets

• Maintain an email marketing list segmentation and nurturing strategy to keep audiences engaged

4. Extend International and Luxury Marketing Reach

• Boost global visibility within the competitive set

• Increase spending in media & PR programs to support business

5. Maintain Sustainable Messaging

• Develop and launch The Right Path concept and creative campaign

• Continue to infuse aspects of sustainable and responsible travel into all programming

6. Implement DEIA Framework to Establish Diverse Programming

• Create programs that include diverse narratives audiences

• Bring the Monterey County brand new life with an updated social strategy, voice and tone that is more authentic and charming, along with real-time photos and short-form videos

• Amplify member programs and activities via owned channels and Inside Monterey content series

• Support Virtual Visitor Center and See Monterey App through digital channels, paid support and community outreach

23 2023-24 BUSINESS PLAN

Campaign Overview

Goals and KPIs

See Monterey’s overarching Marketing Communications goal is set on increasing Intent to Visit and measuring trips generated by advertising, content and public relations programs. In addition to using a number of KPIs to track performance, new methodologies tested last fiscal year will be implemented to increase the ability to determine ROI and overall value for the destination based on marketing programs.

*See Monterey’s Marketing Impact Study indicates the ability of marketing and communications programs to influence travelers’ intent to visit the destination, as measured by third-party research company Strategic Marketing and Research Insights (SMARI).

24
Goal Intent to Visit 4.3* Key Performance Indicators Total Web Visitation 1.4 million MeetInMonterey.com Web Visitation 121,500 Social + Email Engagement 1.9 million Partner Site Conversions (clicks from SeeMonterey.com directly to a member’s website) 175,000 Top Level Group Conversions (RFP submissions, clicks to call or clicks to email from MeetInMonterey.com) 135 Coverage in Top 100 Outlets 60 articles Earned Media Impressions 451.6 million Average Media Quality Score 14/20 Virtual Visitor Center & See Monterey App Users 20,400 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Brand Launch Fall Campaign Spring Campaign Responsible Travel See Monterey App & Virtual Visitors Center Book Direct International Luxury Fly Market Partnership with MBA Culinary DEIA Influencer & Media Hosting

Paid Media Strategy

See Monterey’s single biggest investment is in its paid media and advertising programs. Campaigns are in place to address Leisure, Group and Luxury audiences through proven and targeted tactics. Content and public relations programs complement paid media, creating a multi-layered and integrated approach to reaching visitors.

Leisure Luxury Groups & Meetings

Travel intenders, HHI $100k+, at least one value: nature, wellness, culinary, environmental

Drive, fly and long-haul markets

Travel intenders 35+ with HHI $350k+

Drive and fly markets

Public Relations Strategy

Corporate meeting planners, association meeting planners, key decision makers

Drive and fly markets, Chicago, Washington D.C., New York City

See Monterey’s PR program relies heavily on media hosting, pitching and placing, and ongoing media relations.

• International Media: Create awareness and drive interest for international visitors to the US and California, focusing on specific programming

• National Media: Focus all proactive activities on Top 100 Outlets list to create awareness of Monterey County’s outdoor, luxury, culinary and family-friendly offerings with key audiences and emphasize the importance of responsible travel

• Fly and Drive Market Media: Paired with national effort to drive extended trip lengths with those who are already familiar with Monterey County

• Groups & Meetings Media: Create awareness and drive meeting and convention bookings in Monterey County

• Local Media: Create awareness of the multifaceted economic benefits tourism brings to Monterey County and position See Monterey as the authority on the industry

25 2023-24 BUSINESS PLAN

Major Initiatives

See Monterey + Monterey Bay Aquarium Partnership

This year will mark the launch of a first-of-its-kind partnership between See Monterey and the Monterey Bay Aquarium. Equal buy in from each partner will support a cobranded campaign in Dallas, a critical direct flight market, in an effort to leverage the Aquarium’s brand recognition and See Monterey’s destination messaging.

The Right Path

An overhaul of Sustainable Moments that will build on the previous programs success and move See Monterey forward as a leader in sustainable and responsible travel. The Right Path is forked – a two-prong approach to communicating with visitors coming to the destination, and the businesses and community members within the destination.

Website Redesign and Digital Update

See Monterey will completely reimagine its digital presence this year – from rebuilding the website to make it more user friendly and accessible, to bringing in a new social media agency to support strategy and help to develop a new voice that best communicates the brand.

Culinary

The culinary renaissance of Monterey County has garnered national acclaim, highlighted by its notable presence in the 2023 MICHELIN Guide California. The primary goal is to harness this culinary momentum and raise awareness of Monterey County as a world-class culinary destination. Integrated public relations, paid marketing initiatives and group tactics aim to captivate leisure and business travelers alike. Because when you can get that one perfect reservation, it’s worth staying one more night.

26

Large Meetings & Conferences

In addition to the partnership with the City of Monterey and the Monterey Conference Center, See Monterey is targeting large conference business (300+ peak) for the entire destination with specific staff alignment and marketing to attract these highly lucrative business opportunities.

Luxury

With the implementation of the Luxury tier within the TID there will be an increased focus on luxury travelers. See Monterey advertising will continue to support all hotel tiers, but specific initiatives will be designed to attract a high-spending audience.

Visitor Profile Study

See Monterey is taking significant strides to enhance its understanding of Monterey County visitors and their preferences by leveraging technology-enabled intercepts to elevate its research efforts across the destination. The new study will be live in more than 75 locations displaying QR codes. The technology-enabled intercepts are expected to double the number of participants, allowing for a more robust, data-driven and real-time analysis of visitor behaviors and preferences.

27 2023-24 BUSINESS PLAN

Content Calendar Jul – Dec FY2023-24

July August September

KEY MESSAGING

Wildfire prevention; National, state and county parks; Craft beer scene; Digital detox, camping

KEY DATES

• National Parks & Recreation Month

• 4th of July

• U.S. Women’s Open 7/6 - 7/9

• Monterey Beer Festival 7/8

• Superbike Speedfest 7/7 - 7/9

• Carmel Bach Festival 7/15 - 7/29

• Classic MotoFest 7/14 - 7/16

• California Rodeo Salinas 7/207/23

MEETINGS KEY DATES & MESSAGING

• Staycation in Monterey

KEY MESSAGING

Monterey Car Week; Sand City arts & culture walks; galleries; Bounty of the Salinas Valley

KEY DATES

• Salinas Valley Food & Wine Festival 8/5

• Monterey Car Week 8/11-8/20

• Monterey Pre-Reunion 8/12-8/13

• National Dog Day 8/26

• Sand City West End Celebration 8/26-8/27

• National Beach Day 8/30

MEETINGS KEY DATES & MESSAGING

• Smart Meetings, New York

KEY MESSAGING

History of jazz and weekly live music; Wine trails; Winter surf; Fall harvest; Second summer/ warm weather

KEY DATES

• California Wine Month

• California Surf Month

• Labor Day 9/5

• Hispanic Heritage Month 9/1510/15

• Monterey County Fair 8/31-9/4

• Grand Prix (Indycar) 9/8-9/10

• Fall Equinox 9/23

• Monterey Greek Festival 9/239/25

• Monterey Jazz Festival 9/229/24

MEETINGS KEY DATES & MESSAGING

• Destination California

October November December

KEY MESSAGING

Agriculture and farm worker appreciation; Fall activities; Spooky destinations; Monarch Butterflies; Cozy Coastal Escapes

KEY DATES

• California Farmers Month

• Global Diversity Month

• Museums and Gallery Month

• LGBTQ+ History Month

• Rebels & Renegades 10/0610/08

• Indigenous Peoples Day 10/09

• Halloween

MEETINGS KEY DATES & MESSAGING

• IMEX Oct. 17-19, Las Vegas

• What’s New Fall 2023

KEY MESSAGING

Winter wildlife viewing and safety; Monarch butterflies; Support local small businesses; Culinary, staple restaurants

KEY DATES

• Native American Heritage Month

• Big Sur Food & Wine Festival

11/3-11/5

• Monterey Bay Half Marathon

11/11-11/13

• Thanksgiving

• Black Friday

• Small Business Saturday

KEY MESSAGING

Winter events; Holiday gift guide; What’s new in 2024

KEY DATES

• Christmas at the Inns 11/30-12/1

• Winter Solstice 12/21

• Christmas Day

• First Night Monterey/NYE

MEETINGS KEY DATES & MESSAGING

• CalSAE Seasonal Spectacular

• Holiday Galas

For the full year calendar, visit SeeMonterey.com/members/tools

28

Make the Most of Your See Monterey Membership

See Monterey’s marketing and communications programs are content-driven, communicating the destination through unique angles to different audiences.

See Monterey membership is FREE and includes access to a variety of marketing programs.

• Paid advertising co-ops to maximize marketing budgets with See Monterey’s investment

• Guest blog posts about business, local hidden gems, or other things travelers should know

• Alignment of social content with See Monterey’s content calendar

• Content requests for ideas to be included in blogs, social media, press releases and media pitching

• Tagging @SeeMonterey in your social media posts for amplification

29 2023-24 BUSINESS PLAN
30

Business Development

Strategic Priorities

1. Elevated and Robust Meeting Planner Engagements

• Solicit compression causing group events

• Target high-value groups and meetings from existing and new feeder markets

• Prioritize new business and need periods

2. Prioritize Need Periods and New Business

• Evolve the “All In” group incentive to strategically place short-term need period business into mid-week patterns and secure future years base business

3. Extend the Stay

• Focus on higher value international travelers who will stay longer & spend more

• “Bleisure” - encourage conference attendees to stay one more night

4. Elevate Customer Buying Experience

• Implement destination wide site tour experience training

• Develop and activate sales strategy for MCC

5. Leverage Sustainability

• Develop and launch The Right Path concept and creative campaign

• Increase client services offerings to support meeting planners looking for sustainability opportunities in Meetings and destination activities that encourage extended stays

Tactical Considerations

• Activate a site tour experience training to elevate the Monterey brand

• Continue meetings incentive to secure offpeak and mid-week time periods

• Secure key industry events to host inmarket to educate and grow consideration with meeting planners to book Monterey

• Engage international representation (UK, Mexico and/or Canada) to extend our reach

• Create tools and processes that promote conference attendees to extend their stays

• Promote our stakeholder’s sustainability in meetings attribute to meeting planners

31 2023-24 BUSINESS PLAN

Goals and KPIs

The Business Development team will focus on driving high value compression causing group business for hotels and hospitality businesses, as well as stay focused on core business that is 10 -100 room nights on peak. While leads and conversion rates remain paramount, other metrics are tracked and communicated with group-focused hotels. This collaborative effort enhances our ability to attract and secure business throughout the entire destination.

Goals have been set as conservatively optimistic given the existing competitive landscape and economic forecasts.

Goals

700 Leads (+8% YOY)

23% Conversion (+18% YOY)

Goal is for group business leads; a group is 10 rooms or more in the Corporate, Association and Incentive group market segments

Conversion of group business leads that convert to definite business has historically been 28-31%

Key Performance Indicators

80% New Business Leads

New group leads to the destination or groups that have not been to Monterey County for over 3 years

200 Partner Referrals

Referrals are non-guest room business opportunities that generate additional visitor spending and revenue opportunities for local businesses

100 MCC Leads

2,300 Tour & Travel Engagements

Group business leads sent to the Monterey Conference Center (MCC)

Tour and Travel/non-group client interactions that produce business referrals, tour operator product buys, and grow travel agent product knowledge

32

Monterey Conference Center

Monterey Conference Center is the largest conference facility in the City of Monterey. In order to maximize its impact on creating compression for the destination, See Monterey will assist with creating awareness and getting business opportunities into the pipeline for City of Monterey hotels by:

• Hiring a Conference Sales Manager to assist with pull-through of large compression causing business to the City of Monterey

• Rebranding the Monterey Conference Connection to create awareness of larger group capacity

• Creating sales processes that will elevate the customer buying experience

Business Development Segments and Focuses

Group Business Development: Focused efforts on driving meetings/groups with high value vertical market segments into need-time shoulder months and mid-week patterns.

Tour & Travel: Engage International Trade Representation company to increase awareness with International Tour Operators/Sellers to add Monterey hotel product. Continued focus on the Golf, Luxury, Family and Adventure Travelers with direct selling to agents and operators.

Strategic Partnerships: Continue to leverage third-party and business meetings industry with strategic partnerships that extend reach with direct sales engagements and drive new business leads to market.

Client Services: Expand Client Services team and services with trending business meeting solutions that differentiate our services and increase client satisfaction.

33 2023-24 BUSINESS PLAN

Business Development Events by Region

The Business Development team’s sales plan includes robust activations to drive more qualified leads to Monterey County group hotels including in-person activities, events and tradeshows that target groups from direct flight destinations and viable group markets. The plan is a living document and fluctuates based on a number of factors ranging from marketing conditions to partner participation levels. BDEs will travel with hotel partners across the globe to drive valuable travel.

The following is an overview of the regions with planned sales activities:

California Pacific Northwest Southeast x Southwest

East x Midwest

Tour & Travel

Business Development Team

Rick Hud – All Segments Midwest/East Coast

Joe Marcy, CMP – California, Corporate & Incentive

Lauren Siring, CMP – California Association, SMERF & Government/NW States/Canada

Kayce Boettcher – Southwest/Southeast

David Cater – Tour and Travel, Domestic & International

34

International Sales & Marketing

The return of international travelers from all source markets is critical to Monterey County. Historically, international visitors spend 18% more and stay 25% longer than domestic travelers, making a larger impact on the local economy. Continuing to build momentum in international markets through travel trade and marketing communications tactics will be key in securing international travelers as they return to the U.S.

Priority Market Strategy and Key Tactics

Tier I

United Kingdom

Tier II Canada, Mexico

Tier III

Asia Pacific (China, Korea, Japan & India), Europe (Germany, France, Scandinavia), Australia

• Increase investment to engage key producers identified in product audit and strategic media

• Retain Travel Trade and PR representation in the UK

• Follow Visit California and partner DMO strategies but customize for our destination. Attend the Visit California Sales & Media Missions and Virtuoso partnership activations

• Reactive discussions in China and other Asian markets. Opportunistic approach participating in Brand USA and Visit California co-ops

35 2023-24 BUSINESS PLAN

Community Relations

The primary goal of See Monterey’s Community Relation’s program is to increase community engagement. Collaboration is essential to success. Additionally, driving community awareness among residents and elected officials of the work See Monterey does to drive economic development for the benefit of community quality of life is key. Relationships with local businesses allow See Monterey to promote goods and services that enhance the visitor experience, allowing businesses to drive revenue and sustain vibrant operations.

Strategic Priorities

1. Increase Membership and Member Engagement

• Create new member benefits collateral

• Outreach and partnerships to spread the word

• Engagement through continued member visits, workshops and other events

2. Optimize Digital Visitor Support

• Maintain visitor response times, develop visitor resources as necessary

• Further develop app and promote usage

• Collaborate with Monterey Peninsula Chamber to drive digital content

3. Increase Jurisdiction Representation and Reporting

• Regular public comment and meetings

• Reporting and follow-ups

• Host targeted jurisdiction listening sessions/forums

4. Promote Sustainable and Responsible Tourism

• Collaborate with community partners and associations

• Attend discussions and workshops

5. Increase Community Sentiment Towards Hospitality and Tourism

• See Monterey Open House to welcome community and industry

• Develop material to tell story of community benefit in collaboration with Monterey County Hospitality Association

• Use public forums to reinforce See Monterey’s mission and vision

36

Goals & Key Performance Indicators

Responsible and Sustainable Tourism

Tourism is the second largest industry in the County and the largest on the Peninsula –driving jobs, tax revenue and the overall economy. While tourism is intended to positively impact the vitality of the community and livelihood of its residents, doing so in a sustainable way guarantees positive outcomes in the long term.

The communities within Monterey County take pride in their collective efforts to put sustainability into practice every day. While the destination continues to shine in innovative practices, See Monterey will continue to highlight and celebrate the work local businesses are doing to encourage visitors and residents alike to stay on The Right Path. From tactical actions like sharing information with visitors on how to take care of trails and working with businesses to include more sustainable business practices, to innovation in working to create a fully regenerative economy, The Right Path initiative aims to address travel sustainability issues today and in the future. Because here, all paths lead to the same place: a way to not just preserve and protect the destination but to leave it better and more economically thriving than before.

37 2023-24 BUSINESS PLAN
Increase to 1,226 members (+8%)
Engagement Measure participation in hosted events
Measure
Engagement Measure resident sentiment
Members
Member
See Monterey Representation
reporting and speaking engagements Community

Operations, HR and Administration

The backbone of See Monterey’s success are Human Resources, Operations and, very importantly, Financial Management. These are the team members who help set the compass for the organization’s path and blaze the trail and ensure the culture for the crew is focused, motivating and supplied with the tools needed to succeed.

The transformation the organization started last year will continue into the future. It is guided by this department. In the past year, the team has undergone transformation in terms of valuing a relational over transactional approach, EQ over IQ and context over control. This transformation will continue this year in physical ways such as relocating the office and Board introspection.

Key Areas of Focus

• Board Retreat – In the fall of 2023, the See Monterey Board will go through a process of introspection in order to better guide the organization and its impact on the community

• Office Relocation – An office relocation will take place mid fiscal year. In early 2020, the COVID pandemic forced quick action in shrinking See Monterey’s office requirements and the team moved to a much smaller and spartan space – three years later the team has returned nearly to pre-COVID numbers and so has the need for adequate space

Finance and Operations:

• Leading financial and destination statistical forecasting and sharing analysis with jurisdiction investment partners

• Completing annual audit and ensuring evolving processes continue to support seamless completion of future audits

• Evolving finance reporting and forecasting to provide more context and real time support to the organization to plan with utmost agility

• Innovating team tools, support systems and environment in ways that inspire creativity, elevate efficiencies and effectiveness, and empower thought leadership

Human Resources:

• Evolutionizing team engagement, leadership culture and performance management

• Elevating talent acquisition and intentional retention programs and creating the ideal environment that fosters growth transitions

Governance and Administration:

• Providing administrative leadership and support to the Board of Directors and eight Committees in accordance with best practices and in compliance with the Brown Act

• Administering and tracking diversity, equity and inclusion programs that demonstrate organizational commitment and progress

38

2022-2024 ARPA Marketing Programs

Thanks to the Monterey County Board of Supervisors, See Monterey received an infusion of $1.8 million to support tourism recovery programs in the County. These incremental funds have been crucial to reigniting the tourism economy that fuels economic vitality including TOT, jobs and overall quality of life. See Monterey’s ARPA program integrates tourism, agriculture, air service development, sustainability and more, and has already created significant benefit.

At the core of the ARPA strategy is investing in programs that See Monterey wouldn’t be able to accomplish without this augmentation – the program allows expansion on existing strategies and the implementation of new tactics. In FY23-24, See Monterey will use the ARPA program to extend programs and continue to accelerate recovery.

The plan maps back to six pillars and is designed to allow flexibility and evolution as opportunities present themselves.

Pillar Promotion

Countywide Advertising

Wine Country Promotions (in partnership with Monterey County Vintners & Growers Association)

Agritourism & Heritage Promotion

Meetings & Conferences and New Events

Sustainable/Eco Tourism

Air Service Promotion

Intensify advertising and PR programs especially in fly and extended markets; focus on the off-season

Wine country specific promotion including media content, collateral, sponsorships and event production and MCVGA website redevelopment

Enhance and promote existing programs and product, development of new programs, ag-focused marketing promotion

Increase advertising/PR promotion of existing marquee events, additional tradeshows/client events, create incentive fund to attract groups, meeting and new special events,

Boost existing sustainable and responsible travel initiatives, maintain safe/responsible travel promotion, local partnerships to support responsible travel

Provide air service promotion/advertising to attract new airlift to MRY, boost promotion on current direct service markets

39 2023-24 BUSINESS PLAN

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.