TEAM SAN JOSE
CEDC Update
October 24th, 2022
Agenda
▪ FY 21-22 Performance Measures
▪ FY 21-22 Dashboard Metrics
▪ FY 22-23 Performance Goals
▪ Hotel Recovery and Travel Trends
▪ FY 22-23 Sales Strategy and Tactics
▪ Marketing & Communications – Strategy and Results
▪ Hotel Room Night Recovery Approach
▪ Consumer / Leisure Paid Media
▪ Meetings Media
▪ Owned Media
▪ Earned Media
FY 21-22 Performance
Results
YTD Actual Goal Variance
% Goal
Achieved
Estimated Direct Visitor Spending $ 34,183,086 $ 26,897,118 $ 7,285,968 127% Future Hotel Room Nights Booked (Citywide) 101,839 100,000 1,839 102% Theater Occupancy 74% 65% 9% 114%
Gross Operating Revenue $ 23,857,006 $ 22,915,905 $ 941,101 104% Gross Operating Results $ 2,326,985 $ 25,358 $ 2,301,627 9177% Customer Satisfaction 100% 95% 5% 105%
Response Rate 17%
Team San Jose
Convention Center and Facility
Performance Results
FY 2021-22 Year-End (Preliminary Unaudited)
FY 21-22 Dashboard
Metrics
Dashboard Metrics
HOTEL INFO TOTAL NEWSLETTER SUBSCRIBERS
FYTD FYTD YOY 77,457
Occupancy 58.0% 48.2%
Average Daily Rate $ 132.01 28.3% SOCIAL MEDIA
Revenue Per Avail Room $ 76.57 3.0% Facebook Likes 29,009 Instagram Followers 16,841
WEBSITE UNIQUE VISITORS Twitter Followers 8,639
sanjose.org Pintrest Followers 579
FYTD 1,493,025 YouTube Subscribers 437
FYTD YOT 98.8% LinkedIn Followers 2,751
Sales Dashboard
Future Citywides Booked FYTD %FYOY
Count 13 -31.6%
Rooms 52,346 -4.1%
Lead Generation FYTD %FYOY
Event Leads Entered 999 197.3%
Room Night Leads Entered 940,028 100.2%
FY 22-23 Performance
Goals
Non-Financial Performance Measure Assumptions
Hotel Room Nights: Utilized a gap analysis of future bookings by year to target amounts of rooms needed for each year to reach consumption goals. There remains a large amount of uncertainty and hesitancy amongst clients to sign contracts – especially local tech corporate.
Estimated Visitor Spend: Estimating increased occupancy of convention center with COVIDimpacted attendance numbers as event planners will potentially maintain smaller sizes and scopes of meetings. Utilized revenue forecasts and sales outlook to model impact of events.
Theater Occupancy: Forecasted to see continued high demand for theaters in the CPA, Montgomery and California. San Jose Civic estimated performance severely impacted by construction of Park Habitat / sharing of dock with Tech – as the Tech has informed us that the dock may be unavailable up to 100 days a year.
Customer Satisfaction: Continue to deliver strong service regardless of event volume. 9 FY 2022-23 Goal FY 2021-22 Actual FY 2018-19 Actual
% Variance to
Last FY Actual
% Variance to
FY 2018-19
Actual
Estimated Direct Visitor Spending $ 44,294,493 $ 34,183,086 $ 138,773,814 30% -68% Future Hotel Room Nights Booked (Citywide) 111,000 101,839 177,039 9% -37% Theater Occupancy 69% 74% 97% -7% -29%
Gross Operating Revenue $ 39,762,551 $ 23,857,006 $ 63,077,292 67% -37% Gross Operating Results $ 593,003 $ 2,326,985 $ 14,183,201 -75% -96% Customer Satisfaction 95% 100% 98% -5% -3%
Team San Jose
Convention Center and Facility
Performance Goals
Fiscal Year 2022-23
Hotel Recovery and Travel
Trends
Hotel Recovery and Travel Trends
• Hotels are recovering – but it is uneven. Group and business travel are slower to recover, while leisure is approaching pre-pandemic levels. This has created some shifts in visitation patterns for the destination – including peak days of week for visitation and which areas of the City are seeing the most activity. • Still high levels of uncertainty in the travel market. Concerns around the economy have replaced pandemic concerns and are leading some local corporate groups to cancel. National forecasts do not expect business travel to recover until 2026.
• San Jose and the Bay Area have been slower to recover than the rest of the nation. Lower return to office rates and the slower return of international travel from Asia
Hotel occupancy is increasing, but still
below pre COVID levels….
Weekend (leisure) is recovering faster
than midweek (business/ group) travel….
Changes in business mix and revenue
strategies have led to unpredictable
performance in different neighborhoods…
FY 22-23 Sales Strategy
and Tactics
Overarching Sales Strategies
• Primary focus on proactive sales for 24-month window (2023 – 2024) • Remaining flexible in approach to engaging with clients as different markets have different timelines for recovery
• Ramping up sales staffing to ensure timely engagement with customers • Working closely with hotel partners to align sales strategies for large groups with needs of hotel properties to generate revenues
• Utilizing T&E and sponsorship funding for highest return on lead generation and customer engagement events, providing maximum flexibility
TEAM SAN JOSE
CEDC Update for
Marketing and Communications
HOTEL ROOM NIGHTS
RECOVERY APPROACH
Recovery Campaign
Objective
Drive immediate overnight stays to San Jose through digital ad strategy that positioned San Jose as a leisure destination, and encouraged in-state travelers and repeat visitors to stay and explore our art, food, nature, history, and cultural experiences.
Strategy
• Leverage travel endemic and hotel-production driving partners and past visitor data to target those most likely to convert to overnight stays.
Tactics
▪ Engaged in-destination partners (hotels and cultural events and groups) to create urgency to book.
▪ Focused on media vendors that can deliver hotel bookings and trackable revenue (i.e Expedia).
▪ Targeted in-state travelers who have shown a digital intent to travel. ▪ Partnered with Visit California for key co-op opportunities. ▪ Featured local artists creative and curated itineraries that showcase the cultural fabric of San Jose.
PAID MEDIA:
Consumer
Paid Media Campaign Artists + Sample Local Businesses Featured ● Sierra Vista Open Space Preserve
● Shuei-Do Manju Shop
● Mexican Heritage Plaza
● San Jose Museum of Art
● Winchester Mystery House
● Falafel's Drive-In
● Lake Cunningham Regional Skate Park
● Park Station Hashery
● Grandview Restaurant
● Milohas Pastries
● City Diner
● Mount Umunhum
● Little Saigon
● The Creek Eatery
● Adega
● Bel Bacio Imported Italian Coffee
● Popular Bakery
● Brigadoon Park
● The Viet Museum in History Park, Kelley Park
● Bertucelli's La Villa Delicatessen
● San Pedro Square Market
● Duc Houng Gourmet Vietnamese Sandwiches &
Eateries (4 locations)
● César Chávez Family Home
● Berryessa Night Market
Rayos Magos, Quynh-Mai Nguyen, Tamiko Rast, Omar Rodriguez, Demone Carter - Curator January-June Consumer Paid Media Campaign Results
• Jan-Jun Consumer Paid Media production reporting spend produced:
o 98M San Jose Impressions
o 3.8M San Jose Inquiries
o 21.5K San Jose Hotel Bookings
o 36.5K San Jose Flight Searches
o 1.6K San Jose Flight Bookings
o $3.9M San Jose Hotel Revenue
o $15.6 Total Revenue
o $23.33 Total ROAS (Return on Ad Spend)
• Adara Impact recorded average length of stay for Jan-Jun was 5.8 nights with 40% of travelers being couples and 41% of travelers being solo.
• According to Sojern, the average visitor spend was $648 per traveler.
PAID MEDIA:
Meetings
Meetings Campaign Strategy
Objective
• Secure new meetings business and group hotel bookings by driving awareness, engagement, and leads.
Seasonality
• Key evergreen tactics (paid social, paid search and digital display ads) with print and custom endemic placements sprinkled throughout the year.
Market targeting
• Target markets with a historical propensity to plan group events in San Jose ○ Prioritize state of California
Audience strategy
• Maintain focus on key group categories: group planners (large and small) January-June Paid Meetings Media Campaign Results:
• Since launching in April of 2022, the Meetings campaigns generated 19,729 inquiries at a cost per inquiry of $3.86.
• Campaign generated 251 leads through June.
• Campaign generated 32 direct rfp submissions.
• The cost per inquiry has been improving every month (from $5.77 in May to $1.98 in June alone), indicating that the media partners are optimizing and becoming more efficient with targeting. • Total impressions generated by the campaign from April-Jun were 8.1M and total clicks were 29,256.
OWNED MEDIA:
Website, Email & Social
Website
• Website sessions were up 75.8% Jan-June
2022 compared to the same period in
2021. The largest driver of sessions by
volume was the Organic Search channel,
but there was also substantial growth in
Paid Media and Paid Search sessions.
• 64.5% of all sessions are mobile, up from
62.5%.
• These were the 5 most viewed pages
alongside the channel driving pageviews:
○ /sanjoselove - Paid Media
○ /things-to-do - Organic Search
○ /events - Organic Search
○ /municipal-rose-garden - Organic
Search
Email
• Deployed 11 campaigns to more than 544k email
subscribers
• Developed campaign content in support of local
events, the theaters, neighborhoods, and restaurants
○ Where to Eat in 2022
○ Black History Month
○ Valentines Day
○ Mosaic America Events
○ Theaters Health and Safety Protocols
○ Signia Grand Opening
○ Meetings Policy updates
○ Neighborhood Spotlight Series launched
• Grew database
○ Increased email database by adding 2,497
subscribers from Jan - June 2022
○ Total database 77,379
Organic Social Media
• Themes featured on our Instagram, Facebook, Twitter,
LinkedIn and Pinterest accounts include:
○ SJ Walls collaboration
○ Earth Day and sustainability
○ Outdoor activities and parks promotion
○ Women’s History Month
○ #SanJoseLove during February
○ Events put on San Jose arts organizations
○ Culinary and foodie recommendations
○ Summer travel recommendations in San Jose
○ Neighborhoods
○ Remembering Norman Mineta
○ British Airways flight from London to SJC
• Followers increased 1% across all social channels January through June. The largest jump in follower count was on Instagram, at 6% on the platform.
• Engagement rate averaged 1.5%, a decrease from the last time frame. This is due largely to the changes in Instagram’s algorithm where they prioritized vertical, short form video over traditional photos.
Social Media Sample Posts
EARNED MEDIA:
Editorial Placements
PR Highlights
• Placed 55 press stories in national and local publications.
Reach 255.3M
Ad Value $948.2K
• Increased press reach by 234%
• Key messaging themes include;
○ National Travel & Tourism Week
○ Signia by Hilton San Jose opening
○ Economic Impact
○ Events at Convention Center
○ Positive visitor experience at San Jose Theaters in
partnership with arts partners
○ San Jose as a culinary destination for food tourism
○ Summer travel recommendations in San Jose
Happy Wanderer: This summer’s a good
time to visit downtown San Jose
Online
Reach 591.7K | Ad Value $1.1K
Also appeared in Mercury News Online and
other smaller print publications including the
Montclairion, Piedmonter and Alameda
Journal.
Total Reach 5.2M | Ad Value $9.8K
Bay Area-born gaming competition brings
convention, crowds to Downtown SJ
Broadcast + Online
Reach 1.6M | Ad Value $64.9K
Groups Aim to Help Tourism Industry Recover
in Bay Area
Broadcast + Online
Reach 1.2M | Ad Value $167.3K
San Jose launches tourism comeback after
COVID travel collapse
Online
Reach 1.9M | Ad Value $62.7K
Thank you.