TEAM SAN JOSE
CED Committee 10/24
Item (d) 1
Kerry Adams Hapner Asst. Director of Economic Development and Cultural Affairs Ben Roschke, VP of Research and Strategic Development
Matthew Martinucci, VP of Sales and Destination Services Laura Chmielewski, VP of Marketing and Communications
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)
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 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
• 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
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 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.
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 $15.6M 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.
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.
Thank you.