Klages Report: PCB Doing Better Than the Rest of the State

In Tuesday’s TDC meeting the thin audience listened in on a comprehensive presentation of the Klages Group’s spring report. The report, drawing data from 8500 units across Panama City Beach and interviewing around 800 or so people for the months of March, April and May, included hard data from average daily rates, visitor profiles and a survey of behavioral and motivational aspects of visitors. As it stated, Panama City Beach’s total economic impact over the aforementioned months yielded $261,385,914.00, up from last year’s $247 mil. While some numbers were down, like overall occupancy down 1.2%, ADR was up about a dollar from 2008 and the number of nights stayed went up nearly 7%. In our primary market of the Southeast, Panama City Beach saw a huge increase visitation up 27% while the Midwest dropped slightly in 2009 from 2008’s 94,800 visits to 91,400. One particularly interesting drop was the European market which saw a decline from 6.7% to 3.9%; a steep drop that leaves room for improvement. Dr. Klages, who presented the report, expressed the potential for the European market was strong with the new airport coming on line. Overall, Panama City Beach saw a large increase of visitors during spring, jumping from 2008’s 282,200 visitors to 2009’s 302,000 visitors.

Comparably, the rest of the state did not fare as well. In the most recent Smith Travel report, quoted in the Klages report, cities like Naples saw occupancy drop 15% and ADR drop nearly 8%. Miami saw a 9.5% drop in occupancy and an 11.2% decline in ADR. This trend was seen all over the state in destinations like Orlando, Sarasota and Clearwater. Overall, the state of Florida saw a 5.4% drop in occupancy and an 11 drop in ADR.

Other data shown in the report drew concern and disbelief from the board. The report stated that during spring Panama City Beach had an 89.9% approval rating as well as nearly 70% of visitors during spring were families or couples with only just over 10% visitors reported as singles. Mr. Buddy Wilkes acknowledged the incredulity saying, “I have some concerns about these numbers.” Dr. Klages did address the concerns stating that the interviewed could not be younger than 18 or in a state of intoxication.

Most surprising was that the tone of the Klages report proved far different than the recent Y Partnership focus groups. While Klages data showed Panama City Beach as a friendly, beautiful and prosperous community, Y Partnership’s focus group painted Panama City Beach as an underwhelming destination below the quality of nearby destinations like Destin and Gulf Shores. Still, in both reports, Panama City Beach was shown to be doing economically better than most communities throughout the state. Mayor Oberst underscored that point saying, “I think we have a lot to be thankful for.”

Related News

A question of potential carriers at the new airport arose, causing a wave of coy smiles to sweep across the board although no carrier was named. Dan Rowe did say that we can expect an announcement 6 – 7 months prior to the airport’s opening. Andy Phillips went on to say, “We are in the 11th hour and it’s critical that we have some unification. [Carriers] want this to be a regional effort, not just Bay County.”

Marketing Update

The Fall Marketing Campaign, which was originally to be themed “Fall in Love…With Panama City Beach,” has been changed to “Never-ending Summer.” Mr. Wilkes, the lone dissenter in the campaign said, “It sounds like more of the same: more traffic and more people just like summer. The most important thing is to sell our value. The fall is much quieter and cooler and we have value that can compete with anyone in the world.”

After persuasions from Mr. Rowe, it looks like “Never-ending Summer” will be the theme.

TDC/CVB: $480,000.00…

On Friday afternoon, the TDC and CVB called to order a meeting regarding additional funds added to the summer marketing budget. To recap, the dollars previously spent totaled 1 million dollars and went towards saturating primary targets areas Atlanta, Birmingham and Nashville with an advertising media mix of 40% cable advertising, 30% online, 24% outdoor and 6% magazine. This campaign, to date, has been successful. Dan Rowe, chairman of the TDC, acknowledged this success stating that the daily site traffic to the website has increased three-fold since the start of the campaign and the URL has moved up several thousand places in quantcast rankings.

With so much early success (we haven’t yet seen the complete outcome of results) the board decided to hit the markets harder, considering bolstering the marketing efforts with an additional $500,000. The board was presented three recommendations, one from the current advertising partner Y partnership, one from JB Inc. and a local broadcast recommendation. The recommendations broke down as follows:

Y Partnership Recommendation

  • Extend Cable Buys
    • Nine weeks versus six weeks
    • $215,00
  • Internet TV in AL, TN, KY and Stl, Indy and Cincy
    • Hulu.com, CBS.com, NBC.com
    • 7.2 million impressions, 10x frequency
    • $186,815
  • Local Broadcast TV
    • Knoxville, Lexington, Waco/Bryan
    • 12 Weeks, 90% reach, 10x frequency
    • $73,185

Total Investment = $475,000

JB Inc Recommendation

  • Showcase TV Ad on NBC.com, HULU.com, Oxygen.com
    • Thirteen Weeks
    • 9.5 million impressions
    • Geo-targeted buys focusing East US & TC
    • $230,000
  • Extend Run of Network Video Banner (TV Spot)
    • Sites TBD – (e.g. CBS.com, Facebook)
    • 2.6 million impressions
    • $30,000

Total Investment = $230,000

Local Broadcast TV recommendation

  • Gray Television – 10 Stations: AL, FL, TN, KY, TX, MS
    • Seventeen Weeks
    • 13.7 million impressions
    • Reach=91.3%, 10.9 frequency
    • Will run on local news, morning shows, and prime-time TV
    • Billfish programming with on air mention during tournament and other times during campaign
    • $165,000 media flight, $25,000 billfish
  • Hoak Television – 3 station in LA – Monroe and Alexandria
    • Twelve Weeks
    • Reach = 91.5% 10.2 Frequency
    • $30,000

Total Investment = $220,000

These were only recommendations as to how the money should be spent and it became instantly apparent that Y-partnership would be the odd-man out. Even Mr. Buddy Wilkes didn’t care for Y’s recommendation saying they came up with, “quick ideas with very little thought” and that they, “didn’t come up with anything creative.” He didn’t have to mention the massive price tag on a less than stellar service that JB Inc and LBTV could produce at half the cost and better results. The recommendation from Y encountered such bad reviews that the overall partnership with them may be in jeopardy. To that point, Mr. Yonnie Patronis added, “This is an opportunity to test the waters with someone else.”

The board decided to go with a combination of JB Inc.’s recommendation and Local Broadcast Television with the caveat that the Local Broadcast TV compress the seventeen weeks to somewhere closer to thirteen.

What  tipped the scales might have been the Billfish tournament marketing. Obviously, the Billfish Tournament is a major draw to our area and can be capitalized on with the target markets. What Gray Television plans to do is have a thirty minute show which showcases the event and the destination, giving Panama City Beach loads of face time including promotional opportunities with sports and weather. Overall, JB Inc.’s and LBTV’s recommendations should make for a good buy.

One interesting tid-bit in the meeting was a quick discussion about marketing to future potential markets like Chicago and NY. With the new airport these areas, which previously had been virtually avoided in terms of marketing, could become gold. If you have analytics you know that NY and CHI rank high on traffic on Panama City Beach sites already. It might not be a bad idea to start early with a great/new/first impression, lathering up new potential vacationers and snowbirds for a trip to PCB.

TDC: New Website, New Commercial, New PCB?

First things first, the new website is now live, check it out here. It’s colorful, comprehensive and light years beyond what the old site was capable of ever achieving. But does it aid in the TDC’s overall goal of rebranding Panama City Beach? Well, maybe not all by itself but as a central component to a whole plan, I think it might do the trick.

During Tuesday’s TDC/CVB meeting unveiled was the highly-anticipated summer campaign. This campaign has been much ballyhooed for the entire off-season, but on Tuesday we actually got to see some of the campaign in action which can all be summed up in one word: Rebranding. Everything within the program is used as a tool to rebrand Panama City Beach as a clean, fun and family-oriented vacation destination. I mean, take a look at the upcoming 30 second commercial ad.

It is without a doubt the best representation of Panama City Beach I’ve ever seen. It’s clean, beautiful and really showcases what’s best about the beach. In fact, you see a nice shot of Pier Park, Shipwreck and what it might be like to visit PCB. Susan Estler, vice president of marketing, said they went from one end of the beach to the other to really give people an experience of PCB. And that’s not stock footage you’re looking at, but real people on Panama City Beach. The activities look exciting, the weather looks great and the voice over talks about Doctors and Lawyers as if to say, “this is what you’re missing by believing PCB is the Redneck Riviera.”

The campaign includes components like a video competition, social media networking, microblogging, but the majority of the efforts will be targeted cable advertising that will be geared towards driving people to the website. Together, these two components (TV and website) should, theoretically, provide potential tourists with enough images, video and interactivity to make them rethink their preconceived notions about our great city as it re-announces itself as the “Real. Fun. Beach.”

The launch date for the campaign is slated for Memorial Day, or at least the days preceding it (May 18 it is set to begin). Now, before you criticize the date saying that Summer is already on us and it’s too late, consider this: The TDC/CVB is strategically tying its launch date with a holiday to help drive people and create a buzz. This holiday strategy will also be the tone for the big “Real. Fun. Contest” which will allow people to determine their beach personality (are you an “after dark shark” or a member of the “sandy bottom bunch?”). The contest is set to coincide with the 4th of July. What should also be considered is although you might think this launch date is a little late for summer, it is just the right time for the new airport. In a year from now people will be flying into Panama City Beach from places that, prior to, may not have known we existed outside of Spring Break. The marketing and advertising campaigns have this in mind.  Mike Bennett acknowledged this; “with the new airport coming,” he said, “we have one chance to make a great impression.” And that’s the plan, give a new first impression of Panama City Beach. In fact, the TDC and CVB have already shared in-depth talks about airline advertising including an early jump on advertising through new the on-plane wi-fi systems announced recently by Air Tran.

What may surprise you most about the summer marketing campaign is that its all been done under budget. It should be noted that they own the website, the images, the video–even the b-roll and got it for around $250,000. Coupled with the other marketing dollars spent, that leaves $1.5 million of the marketing budget remaining. After a motion by Marty Mcdaniel, the board decided to meet again before Memorial day to negotiate applying more budget money towards summer marketing, focusing more effort on the tourism window of June and July.

That same budget will be used in Fall and Winter campaigns as well. The opening talks did not go into detail about the Fall and Winter campaigns but did acknowledge a need to frame the time of year rather than focus primarily on events. “We’ll have marquee events,” said Dan Rowe, “but we want to encourage marquee reasons to get away. ‘the weather is good…let’s go.’ [to Panama City Beach].”

All these efforts are betting on the new brand, betting that a new Panama City Beach can be presented to the world and the world will accept Panama City Beach as something other than a Spring Break destination. They’ve set the groundwork for that brand with the new campaign and, theoretically, the world will see us as a “Real. Fun. Beach.” The question remains, though the world may see PCB anew on TV spots and online,  what will they find when they actually get here? A new brand is different than a new image…but that’s a topic for another post.

All in all, the campaign should do well. The “Real. Fun. Contest” should create a genuine buzz. I, for one, am excited and encouraged by the efforts being put forth.

More News: March Bed Tax numbers are down from 2008 but up from 2007. Optimism is abound for April’s numbers after the successful Jazz Festival and Skim Jam. Year-to-date (Oct-Mar.) the numbers are up 1.2%.

CVB is spending $65,000 to aid in the enhancement of the beach providing additional beach safety signs and working with Boomer Aviation for flying billboards announcing double red flags. They are also working on a texting program to alert vendors and contributors about flag changes.

TDC Meeting – To Discuss Bed Tax Collection Allocation

On the agenda for the regularly scheduled TDC/CVB combined meeting for Tuesday, March 10 at 9 am is an update on the AVP Pro Beach Volleyball Tour, and the review of allocation for the Tourism Bed Tax Collection.  Hmm, I wonder what that means.

You can download the agenda here.  Or, you can view it below:

AGENDA

COMBINED BOARD MEETING
Bay County Tourist Development Council
Panama City Beach Convention & Visitors Bureau, Inc.
Panama City Beach
Tuesday, March 10, 2009                    9:00 a.m.        Council Room, PCB City Hall

I.    CALL MEETING TO ORDER

II.    ROLL CALL

A.    Invocation
B.    Pledge of Allegiance
C.    Approve Minutes From the February 10, 2009, and February 16, 2009 Meetings

III.    REQUESTS TO ADDRESS THE BOARD ON AGENDA ITEMS (3 Minutes)

IV.    UPDATE ON BED TAX COLLECTIONS, Ms. Charlene Honnen, Tourist Development Tax Specialist

V.    PRESENTATIONS

A.    Update on AVP Pro Beach Volleyball Tour, Ms. Alison Shapiro, PR Manager, AVP Pro Beach Volleyball Tour

VI.    BOARD ACTION ITEMS

A.    Discuss and Consider for Approval Financial Statements Dated January 31, 2009, Mr. Dan Rowe, President
B.    Discuss and Consider for Approval Coastal Planning & Engineering Invoice #90214, Invoice #90220, and Invoice #90267, Mr. Dan Rowe, President

VII.    BOARD DISCUSSION ITEMS

A.    Review of Allocation of the Tourist Development Tax, Mr. Dan Rowe, President

VIII.    PRESIDENT’S REPORT

IX.    CHAIRMAN’S REPORT

X.    AUDIENCE PARTICIPATION

XI.    ADJOURNMENT

MTVu Coming… with full database and measurement

The TDC Marketing Committee voted today to move forward with the $250K MTVu Spring Break Partnership.  There seems to be a lot of kinks to be worked out, and there were definitely “wishes” put out by the committee and audience members that simply won’t be fulfilled, but the good news is that the CVB will begin properly gathering data with a “PCB Insiders” program, enabling Spring Breakers (and other future segments) to sign up for email and mobile phone updates and promotions.  We’ll be sure to get results of these efforts at the end of Spring Break 09.

This will all be accomplished through a fantastic rich media, interactive Spring Break 09 website that may or may not be developed by YPartnership of “Summer White Sale Website” infamy. The new staff at the CVB should be able to make this quantum leap from the failed email marketing programs of recent past, because the new mobile phone and email programs are outsourced services that are easily implemented.

The co-op partners who participate will be able to communicate with the new database being built by the CVB.  The database will be rich with information and accessible for clear measurement.

My question is… are paying co-op partners the only ones who should benefit from the TDC/CBV database?  I mean, if I were a bed tax collector, writing that check every month, I’d kinda’ like to think I had access to anything the TDC gathered.  But, you know, I’m not a bed tax collector. I’m just sympathetic to their collection burdens.  If you are a bed tax collector, this is a good place for you to voice your opinion.

MTVu is good for the local economy.  It worked last year for a lot of people. MTVu brings enough traffic that rooms are booked and promoters/sponsors have all kinds of opportunities to create relationships with these future guests and residents for a lifetime.

We’ll be writing more posts about Spring Break all the way up to the Big Bang, and welcome your opionions.  But here’s one thing you Spring Break haters can consider in the meantime:  How about planning to get out and meet the students face-to-face to accomplish some of your goals?  Why not plan drug and alcohol prevention pizza parties?  What about a job fair?  Maybe join the dozens of “Alternative Spring Breakers” who will be doing things such as cleaning the beach or ministering their faith in God?  Go help the Panama City Rescue mission collect cans every afternoon.

There is plenty of good and bad on this beach, 365 days per year.  You can choose to be a part of the Good.

TDC Meeting on Tuesday – to Discuss Budgets, Fun!

With the off-season pretty much here, regular TDC meetings will begin ramping up yet again.  Although this meeting has been called a “special” meeting, I think you’ll start seeing these agendas more often.

At the meeting Tuesday, budgets will be discuss for Panama City Beach, Mexico Beach, and Bay County.  Also, discussed will be fiscal year 2009/2010 TDC Plan Ordinance.

Continue reading “TDC Meeting on Tuesday – to Discuss Budgets, Fun!”

Agenda for Tuesday's TDC Meeting – Spring Break, PCBWhiteSale

Below is the agenda for the TDC meeting on Tuesday:

AGENDA

COMBINED BOARD MEETING
Bay County Tourist Development Council
Panama City Beach Convention & Visitors Bureau, Inc.
Panama City Beach
Tuesday, May 13, 2008 9:00 a.m. Council Room, PCB City Hall

I. CALL MEETING TO ORDER

II. ROLL CALL

A. Invocation
B. Pledge of Allegiance
C. Approve Minutes From the April 8, 2008 Meeting

Continue reading “Agenda for Tuesday's TDC Meeting – Spring Break, PCBWhiteSale”