2 0 2 1/ 2 2 ANNUAL REP O RT
ATTACHMENT 1
4 President’s Message
5 Mission of Travel Costa Mesa
6 Travel Costa Mesa Funding
8 Lodging/Hotel Partners
10 Travel Sentiment
12 U.S. Travel Association
14 Visit California’s Recovery
18 Marketing Costa Mesa
24 Media & Community Relations
28 Group Sales
31 Travel Costa Mesa Leadership
TABLE OF
CONTENTS
3// TRAVEL C OSTA MESA //
PRESIDENT’S
MESSAGE
Resilience is the
ability to adapt to
new circumstances
when life predicts
the unpredictable”
— Salvatore R. Maddi
THIS fiscal year, Travel Costa Mesa (TCM)
continued to be flexible and adaptable as
we created opportunities to amplify our
strategy. June and July 2021 brought on
hope and growing economic activity for the
tourism industry: summer weekend travel
from the domestic leisure market increased in
occupancy and in average daily rate compared
to 2019. At that time, we saw reason to be
excited as vaccination rates were climbing and
so did the desire to travel. As we approached
the end of fall and winter, the delta and
omicron COVID-19 variants caused an
additional change in direction.
U.S. Travel Association, the national, non-profit
organization representing all components of
the travel industry, continued to lobby and
ensure funding was available for the industry,
which has been hit hardest throughout the last
// 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
24 months. Their advocacy efforts impacted
the travel and tourism industry and enabled
funding that supported the return to leisure
travel. Safe in-person meetings and events
were also prioritized, and communication was
shared on how to conduct them safely.
Visit California, our state’s destination
marketing organization, continues to invest
in creating traveler demand. In June 2021,
Visit California received a $95 million state
stimulus to be used for marketing. The
stimulus strategy includes cultivating the
California brand, trigger active consideration,
and drive market development both in and
out of state. These funds are also assisting
destination marketing organizations to
develop flexible collaborative marketing
opportunities that build brand awareness
through digital platforms.
MISSION
STATEMENT
Travel Costa Mesa enhances and promotes
the destination brand experience, further
increasing visitor spending for industry
and community economic viability,
sustainability, and quality of life.
ª
In 1995, Travel Costa Mesa was formed as a
non-profit corporation to market the city of
Costa Mesa as a desirable, leisure overnight
destination in Orange County.
VISION
STATEMENT
Travel Costa Mesa is the engaged destination
marketing leader, supporting, and selling the
city’s distinct visitor brand experiences and
advocating community tourism benefits.
ª
TCM’s marketing efforts continue to focus
on the drive market, a radius of consumers
within a few hours of our city. An explosion of
influencers amplifying our messaging about
the amazing things to experience in Costa
Mesa, summer and holiday co-ops with Visit
California, and meetings guide videos are just
a sampling of the completed projects this year.
New group business opportunities for TCM are
becoming fruitful with the addition of in-person
trade shows that our destination sales executive
has been attending.
As 2022 progresses, we look to a brighter
future which includes pent up demand for
leisure travel and the return of some corporate
travel. Reports and surveys from U.S. Travel
Association, Visit California, and Destinations
Analysts continue to be essential for us to
create forecasts, compare pre-pandemic
business to this year, and understand current
travel sentiment.
According to Tourism Economics, a full recovery
for the industry could take two more years.
TCM is dedicated to supporting travel and
tourism for its partners and those that rely
on the industry to keep their doors open. Our
strategies must remain flexible as marketing
opportunities evolve, but the goal of increasing
brand awareness for the city of Costa Mesa as
a desirable Orange County destination for both
leisure and group business is our top priority.
Paulette Lombardi-Fries
PRESIDENT, TRAVEL COSTA MESA
// TRA V EL COSTA M ESA //
KEY
OBJECTIVE
Increase brand awareness for the city
of Costa Mesa as a desirable, overnight,
leisure Orange County destination.
ª
SALES
OBJECTIVE
Increase brand awareness and new group room
nights for the city of Costa Mesa – to make it
the preferred Orange County destination ideal
for small to mid-size business and boost the
economic benefits throughout the city.
Business Improvement
0 TCM
FUNDING
TCM Funding
TRAVEL COSTA MESA IS ENTIRELY FUNDED through
a Business Improvement Assessment (BIA). Each of the
11 Costa Mesa partner hotels listed in this annual report collects a 3 percent levy from overnight hotel guests
(2,375 total available rooms). All Transient Occupancy
Tax (TOT) that the city of Costa Mesa collects goes into its general fund.
BUSINESS IMPROVEMENT ASSESSMENT (BIA)
Business owners shall pay the assessment to the Costa
Mesa City Finance Department on a monthly basis. A
penalty and interest shall be assessed on late payments.
New hotel and motel businesses that are interested in
participating in the BIA should contact the City and TCM.
This is a voluntary program for hotel partners.
4 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
D
C
D
FISCAL YEAR 2021/2022
TCM is forecasting BIA revenue to come in at
$2.184M for the current fiscal year. As of February
2022, BIA funds are at $1.592M. TCM forecasts
a 125 percent increase from previous fiscal year
2020-2021. However, fiscal year 2021-2022 is
forecasted to come in at a 6 percent decrease,
compared to fiscal year 2019-2020. TCM’s highest
record of BIA was in fiscal year 2018-2019 in
which revenue reached $2.767M.
BIA REVENUE
FY 20 20 -20 21 FY 20 21-20 22
2500
2000
1500
1000
0.500
0.000
$972K
% YOY
$2.184 M
FORECASTED
OY
PRIMARY EXPENSES FY 2021/2022
The following represents the primary expense
projections for the current fiscal year:
A
B
C
A .Total Marketing Expenses 27%
B. Total Employee Expenses 32%
C. Total Administrative Expenses: 8%
D .Total Sales Expenses: 8%
*Additional BIA revenue will be used towards
marketing for group business and transient markets
**In addition to the above expenses, existing reserves
will be used for hotel marketing funds in the amount
of $476k and $50k for group sales incentives.
// TRA V EL COSTA M ESA //
LODGING + ADDRESS BUSINESS OWNER PROPERTY OWNER
Avenue of the Arts
Costa Mesa, A Tribute
Portfolio Hotel
3350 Avenue of the Arts Rosanna Inc. Rosanna Inc.
Costa Mesa, CA 92626 3350 Avenue of the Arts 3350 Avenue of the Arts Costa Mesa, CA 92626 Costa Mesa, CA 92626
Ayres Hotel Costa Mesa
325 Bristol St. Newport Country Inn & Suites, Inc. Newport Country Inn & Suites, Inc.
Costa Mesa, CA 92626 355 Bristol St., Ste. A 355 Bristol St., Ste. A Costa Mesa, CA 92626 Costa Mesa, CA 92626
Best Western Plus
Newport Mesa Inn
2642 Newport Blvd. James Hsuen & Shang-Pu Lee James Hsuen & Shang-Pu Lee Costa Mesa, CA 92627 2642 Newport Blvd. 2642 Newport Blvd.
Costa Mesa, CA 92627 Costa Mesa, CA 92627
Crowne Plaza
3131 Bristol St. Brighton Management Bright Bristol Street, LLC Costa Mesa, CA 92626 20342 SW Acacia St. 3131 Bristol Street Newport Beach, CA 92660 Costa Mesa, CA 92626
Hilton
3050 Bristol Street Ashford TRS CM LLC Remington Lodging & Hospitality LP Costa Mesa, CA 92626 14185 Dallas Pkwy, Ste. 1100 14185 Dallas Pkwy, Ste. 1100 Dallas, TX 75254 Dallas, TX 75254
Holiday Inn Express
Hotel & Suites
2070 Newport Blvd. Narendra B. Patel Narendra B. Patel
Costa Mesa, CA 92627 2070 Newport Blvd. 2070 Newport Blvd.
Costa Mesa, CA 92627 Costa Mesa, CA 92627
OC Hotel Costa Mesa
(Formerly BLVD Hotel)
2430 Newport Blvd. Sai Hospitality Services, LLC Sanjay Panchal Costa Mesa, CA 92627 11556 Manchester Way 11556 Manchester Way Porter Ranch, CA 91326 Porter Ranch, CA 91326
Marriott
500 Anton Blvd. Starwood Capital Group HEI Hotels & Resorts Costa Mesa, CA 92626 591 West Putnam Ave. 101 Merritt 7 Corporate Park, 1st Flr Greenwich, CT 06830 Norwalk, CT 06851
Ramada Inn & Suites
1680 Superior Ave. B.D. Inn Inc./Ramada Ltd. B.D. Inn Inc./Ramada Ltd.
Costa Mesa, CA 92627 1680 Superior Ave. 1680 Superior Ave.
Costa Mesa, CA 92627 Costa Mesa, CA 92627
Residence Inn by Marriott
881 Baker St. Marriott International BRE Select Hotels & Resorts Costa Mesa, CA 92626 10400 Fernwood Rd. 6201 15th Ave.
Bethesda, MD 20817 Brooklyn, NY 11219
The Westin
South Coast Plaza
686 Anton Blvd. Host Hotels & Resorts CJ Segerstrom & Sons Costa Mesa, CA 92626 6903 Rockledge Dr., Ste. 1500 c/o South Coast Plaza Bethesda, MD 20817 686 Anton Blvd.
Costa Mesa, CA 92626
5 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
LODGING/
HOTEL
PARTNERS
2021
2021
2020
2020
2019
2019
PUSHING FORWARD IN COSTA MESA
HOTEL group segments hopeful return and corporate long-term business shifts will be key to navigating towards a successful recovery. Transient and group business for our hotel partners continue to struggle. Measurements of success have been compared to 2019 results with little attention drawn to what transpired in 2020. Our 11 partnering hotels achieved a 58.5 percent occupancy in 2021, which is down over 25 percent compared to 2019. Average daily rate in 2021 was $137.45 down 6.8 percent to 2019. Revpar, which is the calculation of revenue per available room for our hotel set, was down over 31.5 percent comparing 2021 to 2019. All segments of travel are not expected to fully recover until 2024.
OCCUPANCY OF HOTEL PARTNERS
(2019 - 2021)
Hilton Costa Mesa Ayres Hotel
HOTEL INVENTORY FOR THE STATE
The Golden State had a record number of guestroom openings in 2021. However, developers that completed or were close to finalizing their projects in 2020 held off until the following year as noted by Alan Reay, president of the Atlas Hospitality Group (AHG). According to his company’s “California Hotel Development Survey 2021”, a total of 12,027 new guestrooms opened in California compared to a then-record 11,795 in 2019 and 88 hotels opened in 2021 compared to 92 in 2019.
Higher-end, limited-service properties such as Residence Inn, SpringHill Suites, and Hilton Garden Inn made up the majority of new builds. Marriott International-branded hotels led California in guestroom openings with 3,886 rooms. The company also led in development with 34 properties under construction and totaling 4,797 rooms. Los Angeles had 21 new hotels open that totaled 3,249 rooms while the largest hotel that opened was The Westin Anaheim Resort with 613.
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
AVERAGE DAILY RATE OF HOTEL PARTNERS
(2019 -2021)
AVG
DAILY
RATE
$155.00
$150.00
$145.00
$140.00
$135.00
$130.00
$125.00
$120.00
$115.00
$110.00
Costa Mesa Marriott’s modern & sleek room renovation
// TRA V EL COSTA M ESA //
TRAVEL
SENTIMENT
FOR the past 24 months, we have been studying an independent weekly research study conducted by Destinations Analysts that surveyed over 1,200 American travelers about their perceptions and behaviors surrounding travel. The results were turbulent, as new variants were identified throughout the year and travel sentiment fluctuated. But scenic beauty, warm weather, outdoor activities, road trips, and dining in regional restaurants are currently interests that remain top of mind for travelers.
Throughout February 2022, coronavirus cases dropped and optimism about the pandemic’s course in the next month increased. Urban, beach locations, and small towns are currently the top three desired destinations. Family, romantic getaways, girlfriend, solo, and reunion trips are most desired, with fun and relaxation as top of mind for these travelers. By the end of February, over 82 percent of Americans were looking forward to traveling. In fact, 61.5 percent said travel is a high-budget priority. Twenty percent already have leisure trips planned.
April, May, June, and July are forecasted to be strong travel months. The booking window for planning remains short. Those that plan on taking a seven-day break are booking their vacation less than 60 days out. States of interest are New York, Florida, Las Vegas, California, and Hawaii. Thirty percent of American travelers are interested in vacationing abroad. Italy and France are at the top of the list with Canada, Mexico, the Caribbean, and Japan following.
// 20 2 1-2 0 2 2 AN N UAL REP O RT //
10 11
11 2022 Travel Sentiment Trends
want to visit places
they’ve never been to
want to try to limit
their personal impact
on the environment
tend to prefer active
time vs. down time on
vacation
Source: Destination Analysts – February 2022 month-end survey of over 1,200 American travelers // TRA V EL COSTA M ESA //
54% 53% 47%
REPRESENTING and advocating for all components in the travel industry, U.S. Travel Association is a nonprofit national organization that promotes and facilitates travel to the United States. This organization worked with the U.S. government to secure language in the American Rescue Plan Act that specified funds could be used to aid in the travel and tourism industry.
Grant monies from the U.S. Economic Development Administration were specified for travel, tourism, and outdoor recreation. Airline and airport-relief grants supported workers as well as prevention, preparedness, and response measures to aide in the fight against COVID-19.
Paycheck protection plan and employee-retention tax credit programs were also supported and pushed for.
Strategic priorities throughout the year focused on the return of business travel, meetings and events, increase leisure demand, safely restore international travel, communicating the power of travel, strengthening and convening membership and paving the future of travel. of full-time employees
agree that taking vacation is
IMPORTANT TO THEIR
JOB SATISFACTION
Source: Destination Analysts – December 2021
12 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
U.S. TRAVEL
ASSOCIATION
77%
Business at Hand
The national travel industry recovery for the leisure segment continues to be strong. Even during the COVID-19 omicron and delta surge, many travelers carried on with their vacation plans. Business travel continues to lag and postponing of meetings and group business occurred once again in the winter. International arrivals in 2021 were down over 73 percent compared to 2019.
TRAVEL FORECAST | FALL 2021
VOLUME
U.S TRAVEL FORECAST - VOLUME TRAVEL FORECAST 2019 2020 2021 2022 2023 2024 2025
Total # of trips 2.40 B 1.60 B 2.04 B 2.29 B 2.47 B 2.57 B 2.61 B Domestic Person Trips 2.32 B 2.53 B
Leisure 1.84 B 2.04 B
Business 464 M 492M
Auto 2.13 B 2.32 B
Air 189 M 214 M
International Arrivals 79 M 84 M
Canada 21 M 24 M
Mexico 18 M 19 M
Overseas 40 M 8 M 10 M 22M 31 M 38 M 41 M
Sources: Tourism Economics and U.S. Travel Association
Total travel spending for 2021 is estimated at $877 billion compared to $1.17 trillion in 2019. Domestic travel spending, which includes leisure and business, was down 15 percent.
International spending in 2019 totaled $181 billion compared to $40 billion in 2021 with the SYM P H O N Y TOURISM ECONOMICS largest differential coming from the leisure segment.
Cumulative Losses Since January 2020
TRAVEL FORECAST | FALL 2021
SPENDING
U.S TRAVEL FORECAST - SPENDING TRAVEL FORECAST 2019 2020 2021 2022 2023 2024 2025
Total Travel Spending $1.17 T $680 B $877 B $1.06 T $1.16 T $1.23 T $1.26 T Domestic $992B $1.06 T
Leisure $722 B $776 B
Business $270 B $284 B
Transient $157 B $169 B
Group $113 B $115 B
International $181 B $198 B
Leisure $145 B $162 B
Business $36 B $36 B
Transient $22 B $4.6 B $5 B $16 B $19 B $22 B $22 B
Group $14 B $2.7 B $3 B $8 B $11 B $13 B $14 B
Sources: Tourism Economics and U.S. Travel Association
United States, through December 2021
Travel Spending
(difference)
Federal Taxes
U.S. Travel Spending Year-to-Date by State
YTD through December 2021, % change vs. 2019
State Taxes
U.S. total
-20%
$13,64 2M
Local Taxes
// TRA V EL COSTA M ESA //
1.58 B 2.O2 B 2.24 B 2.40 B 2.29 B
1.40 B 1.77 B 1.86 B 1.95 B 2.01 B
181 M 250 M 371 M 446 M 484 M
1.50 B 1.89 B 2.07 B 2.21 B 2.29 B
79 M 131 M 166 M 189 M 206 M
19 M 21 M 52M 68 M 78 M
5 M 3 M 14M 18 M 22 M
7 M 9 M 17M 18 M 19 M
$642 B $838 B $932B $997 B $1.04 T
$555 B $702 B $726 B $745 B $766 B
$88 B $136 B $206 B $252 B $277 B
$59 B $93 B $127 B $152 B $164 B
$28 B $43 B $79 B $100 B $113 B
$38 B $40 B $131 B $159 B $183 B
$31 B $32 B $107 B $130 B $148 B
$7.3 B $8 B $24 B $30 B $35 B
$730 .7B
$53,118 M
$22,978 M
Variables Used in Analyzing the Marketing Landscape
ALTHOUGH the domestic leisure markets throughout the country assisted in the road to recovery, travel spending in total for 2021 will equate to just two-thirds of 2019 overall spending. California’s domestic leisure market is expected to recover in 2022. However, domestic business, including meetings and events and international segments, will take two more years to fully recover compared to 2019 levels.
THE KEY OBJECTIVE of Visit California
(VCA), our state’s destination marketing
organization, is to restore and increase
domestic leisure travel, professional meetings
and events (the first time in marketing to this
segment), international travel, and urban
tourism in California.
13 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
VISIT
CALIFORNIA’S
RECOVERY
Visit California’s $95 million stimulus from the governor’s office for fiscal year 2021/2022 allowed for partnership opportunities with destination marketing organizations throughout the state and the continuation of inspiring the California dream. TCM took advantage of this partnership and was able to amplify our reach with a summer, winter holiday and spring campaign this fiscal year. Calling All Californians, Road Trip Republic, What If and always on search and content distribution programming was continued and new programs such as urban core, Kidifornia/snow, culinary and business/ group travel were added to VCA’s plan.
In 2022, VCA’s top international prospects will be Mexico and Canada. Those markets, in addition to the United Kingdom, Germany, and Australia, pose the highest likelihood to visit California, which is above pre-pandemic levels. While VCA’s historic and expected future value of China will keep it as a priority market, political pressure and COVID-19 protocols create an uncertainty there. Public health, economic factors, and consumer sentiment are being used to determine international opportunities.
Likelihood to Visit California vs. Pre-Pandemic Baseline 56 4
7 57
26 29
22 33
40 25 24 25
31 38
21 42
31 22
25 Australia Canada China France Germany Japan Mexico South U.K.
Korea
3.0 10.3 -15.9 -1.3 5.6 -16.7 9.9 -11.1 2.7
11.5% 46.4% -28.4% 5.2% 22.2% -44.4% 21.1% -26.5% 12.2% Baseline Jan 2022 wave
Point difference
and % change
In 2021, occupancy levels for the state of California reached just over 61 percent compared to just over 49 percent in 2020. July and August 2021 were the two highest months of occupancy within the first half of fiscal year 2021/22. Areas within the state with the highest occupancies include the Inland Empire, Shasta Cascade, North Coast, and Central Valley. Average daily rates within the state for 2021 reached $153.85 vs $130.28 in 2020.
// TRA V EL COSTA M ESA //
2022 Forecast Hotel Occupancy Relative to 2019
Source: Tourism Economics, Lodging Forecast ( Dec. 2021) Cumulative Local & State Taxes Lost / Jan 2020-Dec 2021 Source: Tourism Economics on behalf of USTA
14 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
VISIT
CALIFORNIA’S
RECOVERY
CALIFORNIA AIRLIFT
(California Totals)
TOTALS
2021 2020 2019
% Change
from 2020
% Change
from 2020
John Wayne Airport, Orange County (SNA)
January 4,263,584 17,927,298 17,509,241 -76.2% -75.6%
February -73.5%
March -65.1%
April -57.1%
May -48.7%
June -40.7%
July -34.4%
August -37.6%
September -35.0%
October -30.8%
YTD* 102,657,744 68,103,219 199,738,365 50.7% -48.6%
DOMESTIC
2021 2020 2019
% Change
from 2020
% Change
from 2020
January 3,705,606 14,409,007 14,014,502 -74.3% -73.6%
February -70.3%
March -60.8%
April -51.4%
May -42.2%
June -33.2%
July -26.4%
August -30.9%
September -27.2%
October -23.1%
YTD* 93,261,961 58,547,293 162,276,589 59.3% -42.5%
INTERNATIONAL
2021 2020 2019
% Change
from 2020
% Change
from 2020
January 557,978 3,518,291 3,494,739 -84.1% -84.0%
February -87.7%
March -84.8%
April -82.2%
May -77.1%
June -72.3%
July -67.6%
August -66.3%
September -68.0%
October -65.7%
YTD* 9,395,783 9,555,926 37,461,776 -1.7% -74.9%
1. Aircraft used for regularly scheduled air service, configured with not more thatn seventy (70) seats, and operation at weights not more than ninty thousand (90,000) pounds.
2. All-Cargo Carriers: 1,373 tons Passenger Carriers (incidential belly cargo): 77 tons Current cargo tonnage figures in this report are for: November 2021
3. Includes all Canada and Mexico Commerical passengers and operations. // TRA V EL COSTA M ESA //
Sources: individual airports. * Note: Monthly figures may not sum to YTD due to data revisions. Airports include Airports include Los Angeles, Burbank, Long Beach, Ontario, Orange County, Oakland, Sacramento, San Diego, San Jose, San Francisco
4,251,879 16,150,142 16,048,966 -73.7%
6,830,848 8,520,466 19,545,437 -19.8%
8,431,744 739,133 19,652,201 1040.8%
10,618,628 1,591,004 20,696,477 567.4%
12,932,248 3,198,022 21,814,825 304.4%
14,935,685 4,482,725 22,755,030 233.2%
13,961,995 4,885,769 22,378,689 187.5%
12,526,728 4,929,772 19,257,968 154.1%
13,904,405 5,708,888 20,079,531 143.6%
3,890,582 13,509,201 13,100,720 -71.2%
6,303,117 7,052,175 16,082,812 -10.6%
7,787,037 654,059 16,033,953 1090.6%
9,738,031 1,507,544 16,854,310 546.0%
11,773,788 3,011,044 17,633,938 291.0%
13,507,627 4,172,590 18,344,723 223.7%
12,528,251 4,476,438 18,126,708 179.9%
11,358,746 4,529,101 15,609,239 150.8%
12,669,176 5,226,134 16,475,684 142.4%
361,297 2,640,941 2,948,246 -86.3%
527,731 1,468,291 3,462,625 -64.1%
644,707 85,074 3,618,248 657.8%
880,597 83,460 3,842,167 955.1%
1,158,460 186,978 4,180,887 519.6%
1,428,058 310,135 4,410,307 360.5%
1,433,744 379,331 4,251,981 278.0%
1,167,982 400,671 3,648,729 191.5%
1,235,229 482,754 3,603,847 155.9%
Promote brand
awareness of
Costa Mesa
Promote safe
travel to Costa
Mesa in our
creative and in
our content
AS WE ENTERED 2021, TCM continued to work through the challenges of a once-in-a- century pandemic. The early months showed signs of improvement, though we had some dips due to the delta and omicron variants that caused increased bursts of COVID cases throughout the year. While 2021 continued to be a difficult year for the tourism industry, we seemed to have figured out how to market safe travel through these times, including imagery with masks, avoiding group imagery, highlighting outdoor experiences, and the like.
TCM returned to our “always-on” marketing strategy— we mixed brand awareness with promotional campaigns during need times to help increase hotel room night occupancy.
Besides a couple of small campaigns, we did not promote travel to Costa Mesa in much of 2021. Our most important goals were to:
Continue strong
support for our local
retail and dining
businesses through
the pandemic by
sharing promotional
offers and special
events
TCM continued marketing only to nearby drive markets in Los Angeles, San Diego, the Inland Empire, and even communities within Orange County for “staycations” or trips close to home.
We did begin to do more public relations (brand) outreach to areas in greater California and even the West Coast, as applicable. While we began to build our marketing budget back up from where it had been reduced in 2020, our online marketing budget was still only 62 percent of what it was in 2019.
15 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
MARKETING
COSTA MESA
. 3
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S
E
O
WEBSITE TRAFFIC
Travelcostamesa.com ended calendar year 2021 with total website users up 4.05 percent (312,796 vs. 300,616) and sessions up 6.51 percent (372,296 vs. 349,539) over the previous year. Clearly, the pandemic continued to cause our traffic to struggle with growth.
It was an interesting year for website traffic. Where we saw channels driving huge growth last year (for example, our Taboola content marketing channel), they didn’t drive the same numbers in 2021. Why? We surmise it is primarily due to the first half of 2021 (January to June) when there were multiple factors: less ads, higher cost per click, more competition, and breaks in ads. Subsequently, based on changes in blog selection, bidding parameters, and optimization, it has picked up. In fact, cost per click is now the most competitive in Taboola, which may not be sustainable, but it will definitely be more competitive than in recent past.
We increased new website users by 6.73 percent (316,673 vs. 296,717) and pageviews by
5.05 percent (565,640 vs. 538,473) year over calendar year. The second half of 2021 (July to December) already performed significantly better than the first half:we increased in total users by 56.75 percent, total sessions by 61.62 percent and total pageviews by 70.38 percent. The chart below shows total growth the last half of 2021 compared to the last half of 2020. Things are getting better.
We were excited by the growth of our organic search traffic, which had a 140.50 percent gain year over year (95,654 vs. 39,773) due to our search engine optimization efforts. Every result we get from an organic search is “free” traffic to TCM— not earned without cost of labor, but without paid advertising. // TRA V EL COSTA M ESA //
SEARCH ENGINE OPTIMIZATION
WHAT IS SEO?
Search engine optimization (SEO) is the process of
improving the quality and quantity of website traffic
to a website or a web page from search engines.
SEO targets unpaid traffic rather than direct traffic
or paid traffic.
Source: Wikipedia
Another great story from our owned media channels
was email marketing. Over the past year, we have
worked hard on the health of our email list by
archiving old email addresses and making sure the
users we had were truly interested and engaged in
TCM’s monthly email newsletter.
From a Mailchimp “Email Marketing Benchmark
and Statistics by Industry” study in October 2019,
emails in the travel sector had an average open
rate of 20.44 percent. TCM’s average email open
rate for the last half of 2021 was 30.58 percent,
over 10 percent higher than the industry average.
Our holiday 2021 email had our best open rate
ever at 37.39 percent. Our June 2021 email, which
featured a “California Reopens” message, had our
best click-to-open rate (CTOR) with 9.5 percent—
TCM’s average CTOR was 4.67 percent last year.
“CREATE YOUR ESCAPE… CLOSE TO HOME” CAMPAIGN
In March and April of 2021, we launched our first big promotional campaign of the year, returning us closer to the promotion levels we had been performing at prior to the pandemic. We used a message we felt was appropriate for the time and that performed well before: “Create your Escape… Close to Home.” Our messaging included a $100 gift card to South Coast Plaza that was being offered by five of our hotel partners, with the other remaining six asking to just promote their top offers from their site. We had 3,600 page visits for the campaign.
“FIND YOUR HAPPY” CAMPAIGN
To continue our strategy of messaging
with a lean towards hope, fun, and
happiness, we launched the “Find your
Happy” campaign in summer 2021, that
included six videos with social campaign
support. Host Nathan Nguyen (@
noonatnathaniels) took viewers to six
great spots in the city offering happy
hours, including SOCIAL, Country
Club, and Playa Mesa. We had created
the videos pre-pandemic but had to
postpone the launch. We consider this
great “evergreen” content that we’ll use
again in the future— currently they are
on travelcostamesa.com, as well as our
Facebook page and Vimeo channel.
“SOCAL… SO COOL” CAMPAIGN
We launched the “SoCal…So COOL” summer campaign in June for local visitors who would be interested in a “staycation” or a quick trip away. Pairing it with the “Beat the Heat” Arizona campaign, we used a double-meaning messaging— Costa Mesa being the coolest city in Orange County and also cooler with perfect beach weather compared to cities in hotter climates.
“SoCal…So COOL” was our most successful campaign of the year, garnering 800 hotel leads and approximately 52,000 site visits. We ran ads on Uber and Lyft cars in the Los Angeles area and received over 3 million impressions. Per a Nielsen out-of-home advertising study, 64 percent of people who saw messaging on a wrapped vehicle remembered it within 30 days of seeing it.
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MARKETING
COSTA MESA
“BEAT THE HEAT” CAMPAIGN
“Beat the Heat” was a smaller
social and blog campaign in
summer 2021 that we ran in
Arizona only. We worked with
Arizona Foothills Magazine to
create online and social content
featuring Costa Mesa as a “Get
Cool” destination for those in the
oppressive heat in Arizona.
We focused mostly on the major
metropolitan areas of Phoenix
and Tucson, and also placed a
billboard on the I-10 westbound at
Quartzite, Arizona.
KNIFE PLEAT CAMPAIGN
In October 2021, we got the exciting
news that Knife Pleat in South Coast
Plaza received its first Michelin star. To
celebrate, we changed our website’s
home page leaderboard and promoted
the accolade in our email and social
media accounts. This is an exciting
feather in the Costa Mesa cap, as we now
have three Michelin-star restaurants, and
the only three Michelin-star restaurants
in all of Orange County.
HOLIDAY CAMPAIGN
We created a holiday campaign
that used Visit California’s “What
If” messaging to utilize additional
state funding. The campaign ran
from mid-November 2021 to
January 2022 and was our fourth
most visited page for the year.
We featured events happening
in the city in public relations and
social messaging, along with
display ads to the campaign page.
It brought just over 700 leads and
approximately 75,000 site visits.
// TRA V EL COSTA M ESA //
WHAT ARE OWNED MEDIA CHANNELS?
Owned media is any kind of organic content
delivery channel that you have control over.
This might include your blog, website, YouTube
channel, or Facebook page. It does require an
investment in time and resources to create, but
you don’t directly pay for reach.
Source: theagencyguide.com
USAGE
We saw an interesting lift in desktop users in 2021,
a 36.61 percent increase (64,798 vs. 47,433) from
the previous year. We could attribute this to more
remote workers or visitors continuing to spend
more time at home. However, the primary traffic
source to travelcostamesa.com is from mobile
devices. In 2021, 76.09 percent of our traffic was
from mobile devices, 20.68 percent was from
desktop, and 3.23 percent was from tablets.
Desktop vs Mobile vs Tablet Share Worldwide
desktop increase
from 2020
to 2021 mobile devices
36.61%
76.09%
20.68%3.23%
desktop
tablets
2 1
VISIT CALIFORNIA CO-OP CAMPAIGNS
In a unique opportunity from Visit California, destination marketing organizations (DMOs) in the state were invited to participate in a co-op whereby those DMOs would get a discount on advertising spend with five vendor partners. TCM continued participation in this initiative, which was extended for 2021, due to additional funds being allocated to Visit California from the state.
To maximize use of the funding, we combined our promotional campaigns with the Visit California “What If” messaging so we could have a direct financial return on these investments. In 2021, we completed programs that expect a financial return from Visit California of just over $50,000.
CONTENT UPDATES
We continued to keep our COVID-19 coverage current as the pandemic continued, including having a button on the home page directing people to our latest COVID-19 information. We also kept a business updates page and a hotel safety and cleanliness page.
Visit California launched a “California is Back – All Dreams Welcome” campaign, and TCM participated in the campaign in 2021. We posted social, blog, and site content in support of the messaging.
We created a new “Outdoor Patio” dining page on our site, listing restaurants that offered outdoor dining and their hours. TCM also joined the Visit California Travel Story Network, where social stories created by DMO partners could be featured on the Visit California home page and would also help in the Visit California/Google stories search campaign. Our LGBT pride month story was featured on the Visit California home page. 2 2 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
MARKETING
COSTA MESA
TOP 10 WEBPAGES VISITED
1. Summer Hotel Deals
2. Hotel Specials
and Discounts
3. OC Fair
4. Holiday Hotel Deals
5. OC Swap Meet
6. What if Costa Mesa?
7. Homepage
8. OC Night Market
9. Eatcation® (main)
10. Spring Break Hotel Deals
WEBSITE
TRAFFIC
DRIVERS
29.93%
ORGANIC SEARCH
20.50%
DISPLAY ADS
15.47%
PAID SEARCH
14.50%
REFERRAL (most from
content marketing and
Facebook)
13.48%
DIRECT
MEETINGS CAMPAIGN BUILD
Due to the pandemic, meetings and events scheduled in Costa Mesa have taken a large downturn. TCM’s board of directors has told us that regaining meetings and event business in this city is a key priority going forward. TCM is creating a new marketing campaign from scratch to focus on a paid meetings/events strategy. This strategy includes:
1. The creation of a new meetings guide, which will be completed in spring 2022. The last one was created in 2011.
2. TCM has shot new content in April for the meetings video and guide.
A new meetings video was launched in summer 2021 and lives on the travelcostamesa.com meetings page, on our Vimeo channel, and on LinkedIn.
3. Paid placement on Cvent. From Cvent’s Facebook page: “The comprehensive Cvent event marketing and management platform offers software solutions to event organizers and marketers for online event registration, venue selection, event marketing and management, virtual and onsite solutions, and attendee engagement. Cvent’s suite of products automate and simplify the entire event management process and maximize the impact of in-person, virtual, and hybrid events. Hotels and venues use Cvent’s supplier and venue solutions to win more group and corporate travel business through Cvent’s sourcing platforms and to service their customers directly, efficiently, and profitably.”
4. Paid placement on the Helms & Briscoe site, a property management company where we can offer Costa Mesa’s meeting and event services.
VISIT CALIFORNIA POPPY AWARD
2022 FINALIST
There’s no question people continue to look
to destination marketing organizations to get
information about planning a trip and even while
visiting a city. While it has been a tough year, we
remain optimistic about our role in returning
travel and tourism to our city. In early 2022, TCM
was named a finalist for a Poppy Award from Visit
California for our influencer marketing campaign
in 2021. The competition for the awards were
fierce, and though TCM did not win, we were
recognized as a finalist in a year with a record
number of entries.
// TRA V EL COSTA M ESA //
56.86%
CALIFORNIA
4.00%
TEXAS
3.29%
NEW YORK
3.00%
FLORIDA
2.82%
ILLINOIS
TOP
WEBSITE
VISITORS
BY CITY
(OUTSIDE OF OC)
TOP
WEBSITE
VISITORS
BY STATE
27.10%
LOS ANGELES
3.67%
SAN DIEGO
2.11%
LONG BEACH
1.92%
RIVERSIDE
1.44%
SAN
FRANCISCO
2 3
Travel Costa Mesa‘s director of
public relations and community
relations position was changed
in August 2021 to become the
director of media and community
relations. This shift represents TCM’s
understanding of the importance
of social media, and influencers
particularly, as part of our overall
marketing strategy. TCM hired
Bobby Navarro, who came to
the organization with a depth of
experience in marketing and social
media promotion, along with strong
influencer relationships.
In 2021, we decided to make a
move in media relations to align
our social messages, our influencer
partnerships, and our media
communication into a cohesive
earned media strategy. Our goal
was representing what was best
to showcase in Costa Mesa during
key periods while also taking
into consideration our target
markets. This type of strategy
creates multiple opportunities
of engagement for potential
consumers and increases the
likelihood that the consumer will
engage with the content, especially
when the content is being directed
to individuals in our target drive
markets of San Diego, Los Angeles,
and the Inland Empire.
As a consumer is exposed to Costa
Mesa more times in different ways
(i.e. on TCM social or blog, on their
favorite news sites, and/or through
their favorite influencer), they are
more likely to engage and consider
the city for their next leisure travel
experience.
2 4 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
MEDIA &
COMMUNITY
RELATIONS
MEDIA PITCHES
The director of media and community relations repositioned the national and regional press releases to be more targeted and newsworthy in order to receive the most pick up from publications and the highest interest from readers. For example, in various public relations channels, we submitted specially curated press releases strictly about our food news or arts news to respective journalists or media who were focused on this type of content.
“Largest Art Organization in Southern California Brings Broadway Back in a Big Way” “35th Anniversary of Segerstrom Center of the Arts, Broadway Tours, and World Class Performances… ”
“The West Coast’s Largest Shopping Destination Redefines Retail” “Cha Cha Matcha at Tiffany’s Blue Box Café, Collage
Culinary Experience, and 55th Anniversary of South Coast Plaza”
MEDIA COVERAGE
From March 2021 to February 2022 seven press
releases were sent and the director of media and
community relations worked on two joint press
partnerships which resulted in:
OVER
361,637,200
CUMULATIVE IMPRESSIONS
31.5%
“Celebrate ‘National Plan for Vacation Day’ by Visiting One of the Hottest Lifestyle Destinations in California”
“Moulin, Tableau Kitchen and Bar, and Butcher’s Brasserie is Now Open… ” // TRA V EL COSTA M ESA //
INCREASE FROM FY2020-21
We continue to notice a majority of impressions are
coming from food and beverage coverage, and that
there is strength in positioning the city as having
“the most,” “the best,” or “the first” of something.
These commonly used tactics have garnished more
interest and allowed for increased visibility to the
city and to TCM partners.
Coverage has spanned publications and sites such
as Benzinga, MarketWatch, Yahoo Finance, Voice
of OC, Los Angeles Times, Daily Pilot, StreetInsider,
Michelin Guide, Visit California, and more.
2 5
INFLUENCER PROGRAM
Influencer marketing is a fast-growing
tool for promotion. Research from
eMarketer shows that 72.5 percent
of marketers are expected to be
utilizing these means by the end of
2022.
With over 50 percent of consumers
stating that social media and word
of mouth are their preferred ways to
learn about new brands, the director
of media and community relations
made a huge pivot into increasing
the quantity and the quality of the
influencers that came to visit and
share on behalf of TCM.
From August to February 2021, TCM and our partner hotels have hosted nearly 50 influencers with followers ranging from 10,000 to 4.2 million. This is 10 times the number of influencers reported visiting in FY2020-21, and 100 times the biggest influencer reported visiting in that same year. The cumulative following of all the influencers that have been hosted from August 2021 to February 2022 has surpassed 22 million, which is a 21,900 percent increase from the cumulative following reported in FY2020-21.
Based on the formula provided by Intellifluence and pricing decks provided by these influencers, what we received in earned (non-paid) media through influencer marketing from August to February 2021 would have cost more than $220,000 (a conservative estimation). This doesn’t include the thousands of IG stories, hotel mentions, and influencers that posted multiple times on their profile which would all increase this estimation.
Influencer Value Formula
In a 2021 study done by Intellifluence, who manages 150,000 influencers around the world, influencers no longer get paid one to two cents per follower but are typically being compensated more after reaching specific thresholds.
>20K = AVERAGE $272 PER POST
>60K = AVERAGE $745 PER POST
>90K = AVERAGE $1,200 PER POST
~150K = $2,100 PER POST*
~300K = $5,000 PER POST*
~500K = $7,000 PER POST*
1,000,000+ = $10,000+ PER POST
TCM has also begun working
with established and trending
brands (and their influencer
strategy) in order to create
unique experiences that receive
more influencer attention, most
recently with Collage Culinary
Experience and Loungefly.
2 6 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
MEDIA &
COMMUNITY
RELATIONS
The director of media and community relations has found that creating a thematic itinerary around events in the city has resonated with influencers and motivates them to support Costa Mesa without monetary compensation. We have seen that with our dining itinerary in October with Collage Culinary Experience, our holiday itinerary in December, and our Valentine’s Day itinerary in February with Loungefly.
COMMUNITY RELATIONS
For FY2021-22, TCM begun a
promotional content program in
order to support underrepresented
groups while also promoting various
neighborhoods and businesses in Costa
Mesa that support, are owned by, or
resonate with these groups.
In February 2021, we honored Black
History Month by sharing the journey
of a black content creator and her
adventures in Costa Mesa. We were
also able to promote a black-owned
business as well as a black artist that
was coming to perform in Costa Mesa.
The entire program received over
34 million impressions and drove
diversity in our social platforms while
also letting us build relationships with
new businesses. We plan to continue
this initiative in 2022 with Asian
Pacific American Heritage Month in
May, LGBTQ+ Pride Month in June,
and Hispanic Heritage Month from
September 15 to October 15.
Additionally, we are working with
nonprofit organizations based in the
city and/or supporting Costa Mesa
with press release inclusions and social
media support to be able to maximize
the impact we can make on and for
these organizations, including Share
Our Selves and Project Hope Alliance.
// TRA V EL COSTA M ESA //
MEDIA VISITS
TCM receives countless requests from media
and influencers to be hosted, and we choose the
writers with the most potential for coverage or
offer the best chance of greatest exposure. Through
the program TravMedia and our partners at Visit
California we have also been fortunate to be
able to host some talented writers and build new
relationships with key media.
2 7
RAMPING UP
AS THE NEW fiscal year began, hope was abundant that COVID-19 would be in the rear- view mirror— but that was not the case. Booked groups (defined as 10 or more room nights per day) were being pushed and new group opportunities were far and few between. The size of groups was smaller, and the booking window shrunk to a few months or even weeks.
Weekend business needs became an everyday need. This was the new norm.
But as 2021 progressed, it was no longer the competitive landscape it has always been.
Groups were collaborating and working together instead of against each other. Next came the emergence of the West Coast DMO Alliance, a group of destination marketing organizations coming together to discuss best practices, trends, and ways to work with each other through the pandemic and beyond. At inception, 10 members joined and currently there are 20 with a continual wait list.
Industry experts such as Michael Dominguez, president and CEO of Associated Luxury Hotels International, projects the end of surges in 2022— and if one does pop up, he believes that the tools, organization, and the unity developed over the last 20 months will help to avoid the deficits events and hotels have experienced since 2019. International events, he said, may take some time to come back as discrepancies between how individual countries are responding to each surge make it hard to gauge the return of events abroad.
Dominguez highlights three major predictions for events in 2022: the last half should see a significant change, we will learn how to deliver a good hybrid experience, and the deconstructing of meetings. As the year progresses, Dominguez believes many new, more focused meetings will take place, and he shares that now is the time to focus on diverse ways to deliver a meeting space.
FORGE AHEAD
With the completion of a variety of sales initiatives that include meetings collateral— a COVID guide, a video for meeting planners, and group incentives—TCM has hit the ground running. Since October 2021, the destination sales executive has attended seven industry events and three more are scheduled by fiscal year end. This includes aligning with travel/ meeting-oriented associations and groups, persistently reaching out to the organization’s growing database, and uncovering new contacts for potential business. TCM’s focus is on small to mid-size group business (10 to 300 room nights peak).
July 2021 through the end of February 2022, TCM generated over 200 leads representing over 80,000 room nights. TCM has booked 25 meetings and events with 4,799 rooms contracted at our partnering hotels. More opportunities are given to our hotels as 2 8 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
GROUP SALES
planners may not be familiar with all properties and affords the end user the opportunity for multiple options within the city. The role of the destination sales executive is greater than that of generating room nights. Generated hotel room nights not only bring in revenue to our hotel partners, but they also bring ancillary revenue to other segments including restaurants, shopping, transportation, attractions and so much more. Every booked lead in Costa Mesa is an opportunity for businesses to benefit from it.
BY THE NUMBERS
TCM Sales Activity 2021-2022
Room Nights
Booked
ENDING FEBRUARY 2022
Lead Room Nights
In-Person
Site Visits
Webinars
Leads
Generated
Solicitations
OF THE 207 LEADS GENERATED
TRADESHOWS MEAN BUSINESS
TCM attended a variety of tradeshows to
attract new business, develop business
we have/had, to network, and to have the
ability to attend a variety of educational
opportunities. Since October 2021,
the destination sales executive along
with some of our hotel partners have
participated in seven tradeshows. As we
look to the end of the fiscal year, three
more scheduled. As TCM is a newer
destination marketing organization,
participating in the various tradeshows,
collectively selling our 11 partners, and
having exposure to meeting planners
to talk about Costa Mesa has been an
excellent experience.
// TRA V EL COSTA M ESA // 2 9
4 ,799
80 ,672
14 12
20 7
6,4 65
MEMBERSHIPS
California Society of Association Executives (CalSAE)
HelmsBriscoe
Meeting Planners International (MPI)
Orange County Sports Commission (OCSC)
Religious Conference Management Association (RCMA)
Society for Incentive Travel Excellence (SITE)
West Coast DMO Alliance
ORANGE COUNTY SPORTS COMMISSION (OCSC)
TCM, along with Visit Anaheim, Visit Huntington Beach,
Destination Irvine, Visit Laguna Beach, and other local attractions, will continue to work with the OCSC to promote Costa Mesa fields and facilities that encourage overnight group hotel room nights.
To date, the OCSC has produced 123 leads (Costa Mesa receiving 11) that produced 29 contracts for Orange County (as a whole) during the last year. Cancellations, smaller group sizes, and teams moving to neighboring states have been a challenge during the pandemic but like other segments, business is on the upswing.
TARGET MARKETS
TCM has primarily focused on marketing to the leisure transient guest for the past decade. The destination sales executive’s role, however, encompasses weekday and weekend group business. Trends in booking reveal that group opportunities are within a shorter booking window of time and are smaller in size. The following markets are the focus:
Associations (State/Regional/National) – Associations depend on annual meeting dues for their survival. Most by-laws encourage groups to meet on an annual basis. Without these meetings, associations will either not survive and/or they will need a new revenue stream to stay viable.
Corporate – With many companies still working from home, travel has not returned to the levels of 2019. However, more companies will be traveling in 2022 versus what actualized in 2021.
Sports – The sports market has become highly competitive in Orange County. We continue to work with the Orange County Sports Commission (OCSC) in addition to the local colleges and universities for out-of-the-area visiting teams.
SMERFE (Social, Military, Educational, Religious, Fraternal, and Ethnic) 3 0 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
GROUP SALES
TRAVEL COSTA MESA LEADERSHIP
EXECUTIVE COMMITTEE
Ronnie Dalgado CHAIRPERSON, GENERAL MANAGER & VP of Operations, Holiday Inn Express & Suites Costa Mesa Hector Santa Cruz VICE PRESIDENT, GENERAL MANAGER, Costa Mesa Marriott Sue Cooke TREASURER, GENERAL MANAGER, Residence Inn by Marriott by Costa Mesa Paul Sanford SECRETARY, GENERAL MANAGER-ASSET MANAGER, Avenue of the Arts, A Tribute Portfolio Hotel
DIRECTORS
Susan O’Brien Moore GENERAL MANAGER, Ayres Hotel Costa Mesa Naj Ekhlas GENERAL MANAGER, Best Western Plus Newport Mesa Inn Howard Haberman GENERAL MANAGER, Crowne Plaza Costa Mesa Orange County Benito Benitez GENERAL MANAGER, Hilton Orange County/Costa Mesa Nimisha Solanki GENERAL MANAGER, OC Hotel Costa Mesa Albert Gosch GENERAL MANAGER, Ramada by Wyndham Costa Mesa/Newport Beach Mike Hall GENERAL MANAGER, The Westin South Coast Plaza, Costa Mesa John Stephens MAYOR, City of Costa Mesa Lori Ann Farrell Harrison CITY MANAGER, City of Costa Mesa
ADVISOR
Brian Chuan SENIOR DIRECTOR OF INTERNATIONAL & DOMESTIC MARKETS, South Coast Plaza
STAFF
Paulette Lombardi-Fries PRESIDENT
Kim Glen VICE PRESIDENT OF MARKETING Bobby Navarro DIRECTOR OF MEDIA AND COMMUNITY RELATIONS Debbie Megna DESTINATION SALES EXECUTIVE Jessica Placentia OPERATIONS MANAGER // TRA V EL COSTA M ESA //
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TRA V ELCO STA M ESA .CO M