fy18 year-end sales & marketing update City of San Diego: ED&IR Committee December 6, 2018
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1 fy18 year-end sales & marketing update City of San Diego: ED&IR Committee December 6, 2018
2 presenters Gil Cabrera Chair San Diego Convention Center Corporation Board of Directors Clifford Rip Rippetoe, CVE President & CEO San Diego Convention Center Corporation Joe Terzi President & CEO San Diego Tourism Authority
3 FY18 performance $1.1B Regional Impact $651.9M Direct Attendee Spending 694,074 Hotel Room Nights $24.7M Hotel & Sales Tax Revenue to the City of San Diego Events 56 Primary 77 Secondary ,460 Attendance 659,073 Primary Attendees The results are based on information and research provided by San Diego-based CIC Research, Inc. and by Destination Marketing Association International. Hotel Room Nights figure represents the reported contracted room block from Show Management.
4 FY18 Top events by hotel & sales tax revenue San Diego Comic-Con International $3,267,428 American Association for Clinical Chemistry $1,341,302 Environmental Systems Research Institute/esri $1,291,625 American Academy of Dermatology $1,220,343 Custom Electronic Design & Installation Association/CEDIA $1,147,650 American College of Rheumatology $1,124,531 Total Hotel & Sales Tax Revenue from top 6 events: $9,392,879
5 FY18 citywide sales results ROOM NIGHTS Goal: 860,000 % ACHIEVEMENT FY14 816,188 95% FY15 1,002, % FY16 1,092, % FY17 1,091, % FY18 1,063, % Total 5,066,663 Goal: 4,300, %
6 FY18 citywide bookings ROOM NIGHTS DEFINITE CONVENTIONS ROOM NIGHTS DEFINITE CONVENTIONS , , , , , , , , , , , , , , , ,464 2 Total 1,063,364 68
7 yearly review of historical/future rooms The graph below outlines the room nights on the books for each calendar year at the San Diego Convention Center. 800K 600K 400K 200K CURRENT TENTATIVES 10K 157K 102K 185K 27K 52K TOTAL ROOM NIGHTS 735K 649K 624K 650K 819K 728K 746K 732K 765K 733K 604K 509K 609K 577K 316K DEFINITE CONVENTIONS
8 FY18 lost business summary REASON Bookings % FY18 FY17 FY16 Total Room Nights Bookings % Total Room Nights Bookings % Total Room Nights Lost to another destination 19 8% 185, % 395, % 474,109 Cost 26 10% 210, % 102, % 240,094 Changes in client organization Not having preferred dates 24 13% 280, % 175, % 387, % 1,151, % 840, % 1,459,626 Not having space 24 16% 355, % 495, % 418,929 Total Bookings 181 2,183, ,008, ,980,162
9 citywide sales strategies The overall objective for FY18 was to exceed the 860,000 room night goal. Strategy 1: Maximize destination hotel room night production FY18 Results: The SDTA Citywide team booked 1,063,364 room nights to the goal of 860,000. Action Steps: FY18 strategy was to match the open dates and the HQ hotel availability with our database of accounts to maximize the remaining holes. Strategy 2: Secure facility revenue for future years (not actuals but booked in future years) FY18 Results: In FY18, we secured $10,196,255 in convention center rental. In addition, $30,689,387 (over $11M to the SDCCC) in food and beverage revenue was contracted within the FY18 bookings. Action Steps: Increase the focus to reduce discounts off the rental along with securing the catering in the building.
10 citywide sales strategies Strategy 3: Focus on the open dates within the next 10 years FY18 Results: The team booked 682,702 (65%) of the total room nights in the next 10 years. Action Steps: Many future years only have the holiday weeks and less desirable dates available; it is important we work closely with the SDCCC and hotels to ensure we present a package that will get the business confirmed. Strategy 4: Develop new accounts FY18 Results: FY18 bookings were 12 (18%) new accounts to the destination, including Alzheimer s Association, American Association for the Study of Liver Diseases, American Institute of Chemical Engineers, American Retirement Association, Cetera Financial Groups/Maritz Travel, Servpro Industries, Inc., Shoppers Drug Mart/Meridican, the Linux Foundation and Yougevity International. Action Steps: The Tradeshow Executive Database is key to finding new accounts along with trends in attendance and exhibit floor usage.
11 citywide sales strategies Strategy 5: Secure medical citywide rotations FY18 Results: New medical citywide accounts that were booked included Alzheimer s Association and American Association for the Study of Liver Diseases. Repeat business booked included American Academy of Physical Medicine & Rehabilitation, American Association of Nurse Anesthetists, American Academy of Pediatrics, American College of Chest Physicians, Congress of Neurological Surgeons, Digestive week Administration, Infectious Diseases Society of America, Pittcon, Society for Laboratory Automation & Screening, Society for Neuroscience and Society of Toxicology. Action Steps: Focus on medical citywides in multiyear deals to ensure we do not lose a rotation to another city.
12 citywide sales strategies Strategy 6: Leverage SDTA Sales teams synergies FY18 Results: We worked closely with the SDCCC Short Term Sales Team and Hotel Meetings Team to ensure we directed leads immediately to the correct managers handling the account. In addition, we were able to have five Sales Managers at ASAE in Chicago, nine Sales Managers at IMEX and representation at other key events, including IMN and Helms Briscoe, which the citywide team was not budgeted to attend. Action Steps: Continue to maximize each event for our partners by sharing the account research and insight prior to the event.
13 FY18 short-term sales results ROOM NIGHTS Goal: 40,000 REVENUE Goal: $2,450,000 FY14 41,072 $2,712,724 FY15 44,341 $2,825,269 FY16 44,887 $2,452,711 FY17 32,180 $2,482,047 FY18 40,666 $2,696,775 Total 203,146 Goal: 200,000 $13,169,526 Goal: $12,250,000
14 Short-term sales strategies Maximize short term bookings by aggressively pursuing all new and existing opportunities, and by using top down revenue analysis, to ensure that each event will provide substantial bottom line revenues for SDCCC. Continue to work with San Diego organizations and corporations to book local meeting, events, and seminars, providing San Diegans more opportunities to experience and benefit from the Center as a community asset. Collaborate with the local hotel community to generate incremental hotel room night production resulting from SDCCC shortterm sales booking activity. Closely monitor and evaluate short-term staffing deployment and expenses to maintain maximum cost savings efficiencies and ensure fiscal accountability. Through prospecting and market analysis, continually revise selling strategies to capitalize on new trends in the meetings industry. Develop non-traditional revenue opportunities for the Center, to include co-owned events, sponsorship, and digital signage, which can ultimately be implemented and administered by the SDCCC short-term sales and services departments.
15 FY18 Building Occupancy + In the conventions and meeting industry, the national average for occupancy is 50 percent. + At 60 percent, business is often turned away. + Practical maximum occupancy is 70 percent.
16 Total revenues 41.0M 39.1M 36.8M 34.9M 34.2M 35.6M 33.0M 31.1M 31.7M 31.2M 31.4M FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
17 operating expenses 34.8M 35.1M 31.7M 32.4M 30.2M 29.4M 29.9M 28.4M 28.1M 28.4M 28.1M FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
18 fy16-18 infrastructure capital, operations and maintenance TOTAL INFRASTRUCTURE CAPITAL, OPERATIONS & MAINTENANCE EXPENDITURES FY16 $1,710,687 $2,534,593 TOTAL $4,245,280 $35,404,422 FY17 $11,734,323 $2,190,686 TOTAL $13,925,009 FY18 $14,765,003 $2,469,131 TOTAL $17,234,133 INFRASTRUCTURE CAPITAL OPERATIONS/ MAINTENANCE
19 FY18 taxpayer roi The city invested: $3.4M in marketing for the San Diego Tourism Authority and capital expenses $12.6M in expansion contribution bonds $0.8M in dewatering expenses The San Diego Convention Center generated: $24.7M in taxes that went straight to the city s General Fund That s a total investment of $16.7 million resulting in a $8.0 million (47%) net return on investment. For each $1 you invest, we return $1.47.
20 Q&A
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