2016-17 Budget Workshops · Total 4,031 4,079 4,111 2.0% 4,182 1.7% TID Assumptions • February Forecast for FY15-16 basis for FY16-17 with minimum 0% growth and maximum 2.5% growth

2016-17 Budget Workshops

Consultative Meetings

Sales Committee

Marketing Committee

MCC Communications Committee

Quarterly Board Strategic Discussions

MCCVB Analytics Task Force

Long Term Strategic Plan

MCCVB VISION & MISSION

VISION:

Inspire the world to experience our

extraordinary destination

MISSION:

Drive business growth through compelling

marketing and targeted sales initiatives that

maximize the benefits of tourism to our guests,

members and community

STRATEGIC OBJECTIVES

• Expand & Amplify the consistent and dynamic

marketing message

• Invest in market opportunities

• Grow consumer and group market share

• Strengthen relationships with the community through

inclusion, open communication, collaboration and

accountability

• Maintain & Evolve the high performance culture that

attracts and maintains strong leadership

THREE YEAR GOALS

Strategic Priority 16-17 17-18 18-19

EXPAND & AMPLIFYCommunications Effectiveness 4.1 Metric Metric

Brand Preference Index Baseline Maintain minimum Maintain minimum

Earned Media $45,000,000 $47,250,000 $49,612,500

Unique Web Visits 1,600,000 1,680,000 1,764,000

INVESTGroup Room Nights Booked 3% over EOY 15-16 3% over EOY 16-17 3% over EOY 17-18

Social/Content Engagement 10% over EOY 15-16 10% over EOY 16-17 10% over EOY 17-18

GROWVIC Room Nights Influenced 55% 55% 55%

Pace Report Growth 5% RN Var. over EOY 15-16

5% RN Var. over EOY 16-17

5% RN Var. over EOY 17-18

STRENGTHENJurisdiction Reinvestment

MAINTAIN & EVOLVEAchieve Organizational Goals

Maintain Strong Employee Engagement

ASSUMPTIONS

Net Retained Assumption

• Currently approved FY15-16 Budget with net retained of $(355)K was

designed to bring cash reserve into compliance with target of 10% of

total revenue

• Plan is to bring FY16-17 Budget in nearer to breakeven but with net

retained slightly negative to avoid typical need to bring incremental

spending plan back to Board mid-year

• If necessary we would be able to adjust down spending should typical

savings not recur

Jurisdiction Investment

Assumptions

• Jurisdiction investment

letters have already been

sent out for FY16-17

based on FY14-15 TOT

receipts

• Results in -5.6% growth

from $2,787K to

$2,622K; a $(164)K

decrease

• Assumes $20.5M cap on

County DSA shared TOT,

$350K funding to City of

Monterey for MCC, and

full Carmel funding

$0

$50

$100

$150

$200

$200

$400

$600

$800

$1,000

$1,200

Jurisdiction Funding $K

FY15-16

FY16-17

Actual Budget Forecast Forecast Budget Budget

TID FY14-15 FY15-16 FY15-16 Growth FY16-17 Growth

Monterey County 864 865 858 -0.7% 858 0.0%

City of Monterey 1,969 2,010 2,019 2.5% 2,070 2.5%

City of Carmel-by-the-Sea 310 307 302 -2.3% 302 0.0%

City of Pacific Grove 247 242 254 2.7% 260 2.5%

City of Seaside 232 230 235 1.2% 238 1.2%

City of Salinas 248 257 269 8.2% 275 2.5%

City of Marina 160 169 174 8.7% 179 2.5%

Total 4,031 4,079 4,111 2.0% 4,182 1.7%

TID Assumptions

• February Forecast for FY15-16 basis for FY16-17 with minimum 0%

growth and maximum 2.5% growth based on forecast FY15-16 growth

• Results in 1.7% growth from $4,111K forecast to $4,182K budget

• Carmel -2.3% forecast growth suspect based on breakdown of ADR,

REVPAR, TOT, TID relationship being investigated and as yet

unexplained

Private Revenue Assumptions

• DTN web advertising share continues at current pace

• Booking.com reduced ~40% based on lowered profile on website

• Visitor guide and marketing co-ops at similar levels

• Fewer co-op events in group sales reduces that revenue by 33%

• New membership reduced based on current high penetration

• 85% retention on existing membership

• Annual meeting up equal to budgeted cost with expected desirable

program

2016-2017 REVENUE

Total

Revenue

$7,108,913$2,622,224

$4,182,046

$304,643

Revenue Assumptions 2016-2017

TOT TID Private

$2,786,539

$4,079,333

$333,934


TOT TID Private

$2,622,224

$4,182,046

$304,643


TOT TID Private

YEAR OVER YEAR REVENUE COMPARISON

Total

Revenue

$7,199,807

Total

Revenue

$7,108,913

15-16 TO 16-17 EXPENDITURES

38.7%

40.9%

1.5%

5.6%13.4%

2015-2016 Budget with Talent

Marketing Communications

Sales and Group Services

Membership

Visitor Services

Administration

40.4%

38.4%

1.6%

5.8%13.8%

2016-2017 Budget with Talent


Sales and Group Services

Membership

Visitor Services

Administration

15-16 TO 16-17 EXPENDITURES

44.9%

38.6%

0.7%

3.8%

12.0%

2015-2016 Budget without Talent

Marketing Communications Sales and Group Services

Membership Visitor Services

Administration

48.2%

34.4%

0.7%

4.1%

12.7%

2016-2017 Budget without Talent

Marketing Communications Sales and Group Services

Membership Visitor Services

Administration

EXPENDITURES COMPARISON

Expense with Talent 2016-2017 % 2015-2016 %

Marketing 2,891,441$ 40.4% 2,923,079$ 38.7%

Sales 2,749,991$ 38.4% 3,086,213$ 40.9%

Membership 112,898$ 1.6% 110,997$ 1.5%

Visitor Services 417,769$ 5.8% 421,007$ 5.6%

Administration 989,726$ 13.8% 1,013,594$ 13.4%

Total Expense 7,161,826$ 100.0% 7,554,890$ 100.0%


Expense 2016-2017 % 2015-2016 %

Marketing Talent 816,551$ 11.4% 704,162$ 9.3%

Marketing Programs 2,074,890$ 29.0% 2,218,916$ 29.4%

Sales Talent 1,269,076$ 17.7% 1,177,047$ 15.6%

Sales Programs 1,480,915$ 20.7% 1,909,166$ 25.3%

Membership Talent 81,888$ 1.1% 78,844$ 1.0%

Membership Programs 31,010$ 0.4% 32,153$ 0.4%

Visitor Services Talent 242,924$ 3.4% 232,362$ 3.1%

Visitor Services Programs 174,845$ 2.4% 188,645$ 2.5%

Administration Talent 442,738$ 6.2% 419,441$ 5.6%

Administration Programs 546,989$ 7.6% 594,153$ 7.9%

Total Expense 7,161,826$ 100.0% 7,554,890$ 100.0%

Total Talent 2,853,177$ 39.8% 2,611,856$ 34.6%

Medical Dental 5% Increase Assumed 4,309$ 0.2%

3% Merit Pool 67,999$ 2.6%

401K Eligibility and Greater Participation 1,413$ 0.1%

Position Adjustments 62,115$ 2.4%

Incentive Participation and 100% assumption 28,377$ 1.1%

Standing vacancies 77,109$ 3.0%

Talent Increase Yr/Yr 241,321$ 9.2%

PAYROLL BUDGETING AND VACANCIES

Salary, Benefits, Taxes Increase in Budgets due to Standing

Vacancies

• Budget is prepared based on full year employment for all positions

and 100% incentive

• In reality some positions become vacant each year

• The impact on SBT (excluding incentive) growth in the budget has

been

• Initial 15-16 Budget added $100K over the 14-15 adjusted budget

• Initial 16-17 Budget adds $77K over the 15-16 recalibrated budget

• Variance versus actuals in SBT

• December 2014 $(62)K

• June 2015 $(34)K

• December 2015 $(50)K

• Based on history, potential vacancy impact is $50-100K

BUDGETING VARIABLES

• Removing cap on County DSA would add $60K in revenue

• Salary Benefits and Taxes vacancy impact could reduce

expense $50-100K

• Assuming vacancies could drive search costs at up to $17.5K

per opening

• 12% versus assumed 5% medical would add $6K in expense

• Liability Insurance and D&O $1M increased limits already

included at $1.8K


2016-2017 MARKETING COMMUNICATIONS

CONTENT MARKETING

Strategy: Full transition to

Content Marketing approach

Tactics: Less reliance on

Paid Media with on:

• Earned Media – Public

Relations

• Social Media

• Content Development

and Distribution with

Community partners

Choreographed Go-to-Market

Approach

Overarching

Campaign

Content

Bursts

Always on

Content

California

Short Haul – WA, AZ, CO, NV,

OR

Long Haul – TX, IL, NY

National (Lifestyle)

Group

International – China, Canada,

Mexico

Monterey County (Local)


KEY MARKETS


RESEARCH & REPORTING

Strategy: Bolster

Research/Data sharing and

analytics reporting

Tactics: With new Market

Intelligence Specialist

• Issue monthly secondary

research updates

• Quarterly Market

Intelligence reports

• Develop/synergize

community data sharing

opportunities


GROUP MARKETING

Strategy: Support Group

Sales program with

refreshed materials and

creative, targeted media

around tradeshows

Tactics:

• ‘Surround sound’ media

approach - tradeshows

• Develop new Group

photography

• Create new tradeshow

support materials

• Proactive media pitching


MONTEREY CONFERENCE CENTER

Strategy: Evolve MCC

brand campaign into more

detailed sales support

Tactics: As more details are

firmed up, marketing will be

more targeted and specific

• Special booking offers

• Pre-opening Media FAM,

January 2017

• Proactive media pitching

• Grand Opening

marketing support


INTERNATIONAL

Strategy: Continue to

develop three key markets

as well as opportunistic

Tactics:

• China – develop/promote

product through social

and earned

• Canada – paid, earned

(Toronto media mission)

• Mexico – build on media

relationships started in

FY15-16

• Leverage key

relationships: VCA,

BUSA and SJC/SC


STRATEGIC PARTNERSHIPS

Strategy: Harness and

leverage the power of major

strategic partnerships

Tactics:

• Coop programs through

VCA and Brand USA

• Regional marketing

partnerships with CCTC,

SF Travel and SJC/SC

• Data sharing and co-

promotion with MRY

• Research and marketing

intelligence gathering


LUXURY MARKET

Strategy: Leverage VCA

new investment in

domestic/international

Luxury Market

Tactics: VCA is developing

a new $4MM program to

promote various

regions/experiences that

appeal to the luxury market

– details still in

development, but our

destination needs to be ‘in

the conversations’

Money & Brains

Trendsetters

Top Two Segments

for Monterey County

- PRIZM


SUSTAINABLE MOMENTS

Strategy: Continue to

develop and expand into

Community Relations

Tactics:

• Attract new partners

• Expand content partner

involvement

• Promote to travelers

(domestic and

international) as well as

community/residents


MEDIA RELATIONS

Strategy: To continue to evolve and refine media

relations and maximize opportunities in key

target markets

Tactics:

• Focus on proactive outreach to key target

markets

• Maintain media FAM tours with community

support

• Attend industry events to keep Monterey top

of mind with journalists

• Further integrate media relations role in

content marketing strategy

2016-2017 BUDGET VARIANCESKey Line Items

Advertising/Media – Reduced $63,800 – less reliance on paid media, more on

social + earned supported by paid

Agency Fees – Increased $21,871 – slight increase to allow increased agency

services for content marketing

Production / Collateral – Reduced $17,045 – less paid advertising = fewer ads and

ad resizing

International – Reduced $17,696 – slight decrease in China investment

Media Relations – Reduced $57,223 – eliminated SMT and reduced FAM costs

Web/Digital – Reduced $22,486 – transitioning from building year (new website) to

maintenance

Travel & Entertainment – Increase $9,602 –re-allocated travel for Communications

and Content Marketing programs

Group Sales

GROUP SALES & SERVICES

What we learned in 2015-16 Fiscal Year

• Quicker & complete RFP responses from hotels drive

increased booked business

• Engaged hotel sales teams book more business

• Hotels continue to want higher rated corporate business &

state associations

• Although a higher percentage of rooms booked YOY - still

more group rooms go un-booked than booked

• Similar # of leads yet dramatic increase in bookings

• Incentive market is the most popular segment to book

• Monterey County had a stronger group year than our

competitive set

2016-2017 GROUP SALES

CLIENT EVENTS

Strategy: Continue to create compelling

opportunities to get our hotel partners in front

of clients.

Tactics: Produce creative in-market client

events that have strong appeal to clients.

• Wine tasting education

• Hands-on cooking demonstrations

• Sporting Events

• In Market Festivals and Events

• Paint & Sip

• Golf Outings


SPONSORSHIPS

Strategy: Develop Industry partnerships that create client awareness of

Monterey County.

Tactics: Target industry events with sponsorships that are highly visible

to highlight Monterey County.

• Helms Briscoe

• MPI

• CalSAE

• PCMA

• SITE

• AMEX


TRADE SHOWS

Strategy: Continue to generate more high value

and off-peak leads.

Tactics: Target Trade Shows with high value

corporate, incentive, and association business

potential.

• FICP

• Kellen managers Summit

• AMEX Corp Show

• Luxury Meetings Summit

• MPI

• IMEX

• MPI-WEC


INTERNATIONAL STRATEGY

Strategy: Deeper dive into targeted countries where we can continue to

leverage partner resources.

Tactics: Continue to grow market share from selected countries based on

current airlift/drive market and partner strategies with Visit CA, SF Travel, and

CCTC

• China

• Canada

• Mexico

2016-2017 BUDGET VARIANCES

Key Line Items

Group Marketing – Reduced $225,000 – from $685K to $460K - $340K for

Destination Group, $120K for MCC Group

Trade Shows – Reduced $114,000 – No new trade show booth and more less

expensive – high return trade shows (Luxury Meetings Summit)

Client Events – Reduced $34,000 – similar number of events, but smaller, less

expensive events

FAMs – Reduced $24,000 – less group client FAM’s, more partnership with Visit CA

for T&T FAM’s.

Sponsorships – Reduced $25,000 – Seven less sponsorships, with more industry

partnerships that have a higher visibility

Opportunity Development – Up $17,000 – reallocated funds from sponsorship and

client events

2016-2017 BUDGET COMPARISONS

2015-15 % 2016-17 % Var.

Group

Marketing$685,000 22% $460,000 17% ($225,000)

Tradeshow $444,400 14% $330,425 12% ($113,975)

Client Events $174,425 6% $140,825 5% ($33,600)

FAM’s $66,119 2% $42,000 2% ($24,119)

Sponsorships $197,550 6% $172,550 6% ($25,000)

Opportunity

Development$9,485 0.3% $26,500 1% $17,015

Visitor Services, Membership

Administration

VISITOR SERVICES

What we learned in 2015-16 Fiscal Year

• Walk-in traffic to the Visitors Center expected to

continue to decline due to technology and WiFi

availability

• More walk-in visitors are looking for places to stay (per

our survey results) than the previous year

• Canada, Germany, France, Australia and China remain

in the top ten countries of origin of the Visitor Center’s

International customers

• Satellite Visitor Center opportunities have grown year

over year. We are evaluating the overnight influence

propensity for each event to ensure maximum return on

investment

VISITOR SERVICESStrategy:

Extend stays and influence spending through 1:1 visitor engagement

Tactics:

Monterey Visitor Center

• Invest in development and training of Visitor Services Specialists

Satellite Services

• Be present at events, meetings/conferences, and other locations where the

customers have the greatest propensity to be influenced to stay longer

Collateral Fulfillment

• Continue to supply inspiring

material to weddings, small

groups, CA Welcome Centers

and airports

Visitor Services program budget

variance: -$13,800

MEMBERSHIP

Strategy:

Engage members and stakeholders through

communications, events and by providing other

participation opportunities

Tactics:

• New Member recruitment

• Annual Meeting

• Quarterly Forums

• Member Orientations

• Meet a Member Series

• Newsletters

• Marketing and Sales Co-ops

Membership program budget variance: -$1,143

ADMINISTRATION

Strategy:

Engage team members; provide tools and development opportunities, evolve

culture to recruit and maintain strong leadership

Tactics:

• Bi-annual evaluation of compensation

• Annual evaluation of benefits programs

• Ongoing evaluation of IT systems and technology advancement

opportunities

• Invest in professional development opportunities for team members

Administration program budget variance: -$47,165


Expense 2016-2017 % 2015-2016 %

Marketing Talent 816,551$ 11.4% 704,162$ 9.3%

Marketing Programs 2,074,890$ 29.0% 2,218,916$ 29.4%

Sales Talent 1,269,076$ 17.7% 1,177,047$ 15.6%

Sales Programs 1,480,915$ 20.7% 1,909,166$ 25.3%

Membership Talent 81,888$ 1.1% 78,844$ 1.0%

Membership Programs 31,010$ 0.4% 32,153$ 0.4%

Visitor Services Talent 242,924$ 3.4% 232,362$ 3.1%

Visitor Services Programs 174,845$ 2.4% 188,645$ 2.5%

Administration Talent 442,738$ 6.2% 419,441$ 5.6%

Administration Programs 546,989$ 7.6% 594,153$ 7.9%

Total Expense 7,161,826$ 100.0% 7,554,890$ 100.0%

Total Talent 2,853,177$ 39.8% 2,611,856$ 34.6%

Medical Dental 5% Increase Assumed 4,309$ 0.2%

3% Merit Pool 67,999$ 2.6%

401K Eligibility and Greater Participation 1,413$ 0.1%

Position Adjustments 62,115$ 2.4%

Incentive Participation and 100% assumption 28,377$ 1.1%

Standing vacancies 77,109$ 3.0%

Talent Increase Yr/Yr 241,321$ 9.2%

Board of Directors

Next Meeting

Wednesday, May 25, 2016

2:00 pm - 5:00 pm | Montrio Bistro

FY15-16 Highlights

• Moved further into Content Marketing and away from traditional marketing

• More focus on qualitative engagement (versus simply driving up metrics)

• Revamped Ad Equivalency measurement and added new Social

Engagement metrics – both extremely successful

• Revamped and relaunched SeeMonterey.com & MeetInMonterey.com

• Created/Launched new Monterey Conference Center brand identify and

marketing campaign

• Increased community engagement around key promotions and

opportunistic (e.g. new Alaska Air service into MRY, Big Blue Live, Super

Bowl, China Ready training)

• Expanded reach into the China marketplace while adding Mexico to

become third international market (Canada is #2)

• Developed new tri-DMO regional partnership with Santa Cruz and San

Jose to leverage new international flights into SJC

MARKETING/COMMUNICATIONS

MCCVB VALUES

• Accountability

• Integrity

• Leadership

• Passionate

• Strategic

• Visionary

Documents

2016-17 Budget Workshops · Total 4,031 4,079 4,111 2.0% 4,182 1.7% TID Assumptions • February Forecast for FY15-16 basis for FY16-17 with minimum 0% growth and maximum 2.5% growth