TEAM SAN JOSESemi-Annual Update
Community & Economic Development Committee
September 23, 2024Item (d) 3
PresentersKerry Adams Hapner, Office of Economic Development and Cultural AffairsTeam San José: John LaFortune, Ihab Sabry, Ben Roschke, Matthew Martinucci, Laura Chmielewski
COLLABORATIVE MARKETING
INITIATIVE
San Jose McEnery Convention Center
September 17, 2024
9:00 – 10:30 AM
TSJ OUTREACH TO
LOCAL BUSINESSES
TSJ’S INVOLVEMENT
IN CITY-LED 2026 EFFORTS
FY 23-24
Performance Results
Performance targets should represent feasible markers of excellent performance within expected market conditions Most performance targets impact the allocation of budgetary resources within the Convention and Cultural Affairs Fund to support facility operations -Overly aggressive performance targets would negatively impact the fund if not met -Given lower activity levels since the pandemic, the fund operates at an extremely thin margin The timing of when performance targets are set during the budget process often does not line up with when large customers commit to host events Target Setting Considerations
Estimated Direct
Visitor Spending
FY 2023-24 YEAR-END (PRELIMINARY UNAUDITED)
Future Hotel Room Nights Booked (Citywide)
Theater Occupancy
Gross Operating Revenue
Gross Operating Results
Customer Satisfaction
Response Rate
$75,560,249
121,835
94%
$43,358,497
$5,678,162
100%
28%
YTD ACTUAL
GOAL
VARIANCE
% GOAL ACHIEVED
$55,108,300
112,000
91%
$37,840,445
$1,539,364
95%
$20,451,949
9,835
3%
$5,518,052
$4,138,798
5%
137%*
109%
103%
115%
369%*
105%
TEAM SAN JOSE
Convention Center and Facility Performance Results
*Overage due to increased scope of NVIDIA and several short-term corporate opportunities
TSJ Theaters
TSJ Convention Facilities
603,643
239,271
ATTENDEES
DIRECT SPEND
$13,292,621
$62,267,628
VENUES
ESTIMATED ECONOMIC IMPACT
By Venue Type
YOY DIRECT SPEND
17.7%
51.9%
SALES DASHBOARD
FUTURE CITYWIDES
BOOKED
Count
Rooms
18 70,153
LEAD GENERATION
FYTD
%FYOY
-33.3%
-15.2%
MARKET SEGMENTATION OF FUTURE CITYWIDE ROOM NIGHTS BOOKED FYTD
%FYOY
Event Leads Entered
Room Night
Leads Entered
1,252
1,356,335
21.4%
23%
CHANGES TO TECH SECTOR MEETINGS AND CONVENTIONS / TRAVEL PATTERNS Ongoing Market Challenges for Large Citywide Conventions
DOWNTOWN HOTEL ROOM INVENTORY CONSTRAINTS
CONTINUED ECONOMIC VOLATILITY
FY 24-25
Performance Goals
Team San Jose
Estimated Direct
Visitor Spending
Future Hotel Room Nights Booked (Citywide)
Theater Occupancy
CONVENTION CENTER AND FACILITY
PERFORMANCE GOALS FY 2024-25
Gross Operating Results
Customer Satisfaction
$75,560,249
121,835
94%
$5,678,162
100%
FY 2023-24 ACTUAL (UNAUDITED)
FY 2024-25
GOAL
% VARIANCE TO
LAST FY ACTUAL
$78,150,000
117,000
93%
$2,047,535
95%
3%
-4%*
-1%
-64%**
-5%
TEAM SAN JOSE
CONVENTION CENTER AND FACILITY PERFORMANCE GOALS FY 2024-25 *Variances due to forecasted market conditions at time of goals and timing of 2026 mega-event room contracts **Forecast for FY 2024-25 impacted by timing around NVIDIA 2025 bid and budget cycle
THE DOWNTOWN HOTEL MARKET IS ACCELERATING ITS RECOVERY
HOTEL PERFORMANCE
AND TRAVEL TRENDS
After several years of being the area slowest to recover, downtown has accelerated its recovery – especially in 2024. Over the first six months, demand was up 17% YOY. However, slow international and business travel recovery will delay the return to pre-COVID levels until 2027.
SUMMER TRAVEL HAS BEEN STRONG
July and August saw considerable growth in downtown demand. A larger percentage of visitors stayed overnight. They also stayed longer on average than last summer.
INTERNATIONAL VISITATION IS BEGINNING TO RETURN
North American markets (Canada and Mexico) are recovering to pre-pandemic levels of visitor spending in 2024. Overseas markets are growing but won’t reach pre-pandemic spending levels until 2026.
SALES STRATEGIES
AND KEY METRICS UPDATE
Primary focus on 24-month arrival window (2024 – 2025)
Extensive, integrated group campaign to raise planner awareness of San Jose as a stand-alone NorCal destination and generate RFPs (see next slide) Utilizing T&E and sponsorship funding for highest customer engagement opportunities and to mitigate meeting cost increases Show dates at SJCC (Ex Halls): 72 in 2023, 96 in 2024 (+33%) Lead Volume FY 22-23 ( 1,031) v FY 23-24 (1,232) = +19% Continued focus on diversification of industries
CONSUMER PAID MEDIA
IMPRESSIONS
REACH
HOTEL REVENUE
TOTAL REVENUE
Flight + Hotel Revenue
Combined
89,218,312
29,739,473
$15,729,084
INQUIRIES
HOTEL BOOKINGS
FLIGHT BOOKINGS
6,407,415
46,628
14,617
$36,743,274
TOTAL ROAS
Return on Ad Spend
$38.25
Notes:
Production data is available from the following sources per metric:
Hotel Revenue: Expedia, ADARA Impact, Sojern (as a calculation of booking data) Hotel Bookings: Expedia, ADARA Impact, Sojern
Flight Bookings: ADARA Impact and Sojern (as a calculation of booking data) Total ROAS: Calculation based total amount of integrated media spend divided by total revenue.
Expedia is no longer providing hotel and flight search data as of May 2023. Data from other partners is minimal and therefore search data is not included.
Production data is only a reflection of paid media.
Impressions, reach and Inquiries is inclusive of paid media, paid social and paid search.
Total RFP Completions
Total Campaign Inquiries
Total Campaign Reach
Meetings Leads
Total Campaign Impressions
57,037,782
19,012,594
1,424,472
105
4,163
MEETINGS PAID MEDIA
Source: Tableau, Google Analytics
Notes:
Impressions, reach and inquiries is Inclusive of paid media, paid social and paid search.
Meetings leads inclusive of RFP submissions via GA, webinar leads via media/offline media leads, website meetings email signups, and website modal meetings signups.
From July 2023 through June 2024, 26 campaigns were launched totaling over 2.26 million emails sent, a 25.6% increase from FY23-24. 22,067 new subscribers were added from paid search, paid social, and on-site sources.
Content included support for events and promotions including SummerFest, Mosaic Festival, Cirque du Soleil, #WeCreate408 and shows at the San Jose Theaters.
Emails to our active segment generate an average 41% open rate.
CONSUMER EMAIL
TOTAL LEISURE DATABASE
92,765
EARNED MEDIA
Samsung S24 Ultra Field Trip
Broadcast & Online
Nationwide CW Affiliate TV Markets + Podcast
REACH 53.7M | AD VALUE $475.5K
Wine Wanderlust
Print & Online
REACH 89.5K | AD VALUE $1.5K
YOY, both reach and ad value increased by 145% and 526.6% respectively.
Furry Convention Helps
Boost Business
Broadcast & Online
REACH 2.4M | AD VALUE $53K
San Jose Lunar
New Year Celebrations
Broadcast
REACH 36K | AD VALUE $326.8K
Popular Hotel in Downtown San Jose
Will Temporarily Close Its Doors
Broadcast & Online
REACH 1.7M | AD VALUE $77K
THEMES INCLUDED:
Economic impacts of Meetings business in San Jose, (FurCon, Genesis Gaming, Nvidia GTC).
San Jose as the perfect travel destination for tech launches and product debuts.
San Jose as major sports destination with citywide lighting activation in red and gold for 49ers appearance in Super Bowl and teal for Sharks #1 Draft celebration.
Unique Views
73.5M
REACH
AD VALUE
$1.2M
We placed 147 stories in national and local publications and outlets.
TEAM SAN JOSESemi-Annual Update
Community & Economic Development Committee
September 23, 2024Item (d) 3
PresentersKerry Adams Hapner, Office of Economic Development and Cultural AffairsTeam San Jose: John LaFortune, Ihab Sabry, Ben Roschke, Matthew Martinucci, Laura Chmielewski