09/11/2006 - City Council RegularCity of Ea~au Memo
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: SEPTEMBER 11, 2006
SUBJECT: ADDITIONAL AGENDA INFORMATION FOR SEPTEMBER 14,
2006 CITY COUNCIL MEETING
The proposed 2007 Eagan Convention and Visitors Bureau budget was completed late
last week after the meeting agenda and packet information had been prepared and sent to
the City Council. To stay on schedule and to provide timely feedback to the ECVB, staff
is recommending that consideration of the 2007 ECVB budget be added to the September
14, 2006 meeting agenda as Item A of Other Business. The agenda can be amended and
approved with the additional item, if that is the City Council's wish.
Enclosed and referenced as pages ~s through ~~~ is a copy of background
information and proposed budget to be added to the packet.
City Administrator
Agenda Memo
Special City Council Meeting
Septmeberl4, 2006
VIII. OTHER BUSINESS:
A. Eagan Convention & Visitors Bureau 2007 Budget & Marketing Overview
ACTION FOR CONSIDERATION:
To provide direction, if any, to staff regarding the 2007 Eagan Convention and
Visitors Bureau Budget and to direct that it be placed on a future regular City
Council meeting consent agenda for formal ratification.
FACTS:
• At its September 7, 2006 board meeting the ECVB Board gave approval for a
2007 budget with modifications.
• City Councilmember Peggy Carlson (a City-designated ECVB Board Member)
was present for the board meeting and moved approval of the ECVB budget.
• The budget has been review by City Liaison Tom Garrison and by the City's
Chief Financial Officer Tom Pepper, as a member of the ECVB Finance
Committee.
• Mr. Garrison certifies that the money necessary to market the Civic Arena's
Home & Leisure Show is contained in the attached budgets.
• Under the Operating Agreement, adopted December 2005, the Eagan Convention
and Visitor's Bureau promotes the City as a tourist, conference, meetings, and
visitor destination. Its funding source is primarily the City's local lodging tax,
supplemented by a small amount of other income.
• Section 3.2 of the Operating Agreement requires that no later than September 30
of each year, the Bureau shall submit its work plan and line operating for the next
year for its "review and approval."
• For the first six months of 2006 ECVB revenues are $17,000 ahead of 2005
revenues and occupancy rates are slightly below those of last year. (Byway of
context, national occupancy rates are lower too because of the 21 % increase in the
cost of gasoline.)
• The budget reflects a 3% increase over 2006.
• Marketing priorities for 2007 include enhanced Web site marketing efforts and
Internet advertising campaigns to position Eagan, continuing "South of the River"
partnerships with the Minneapolis South cities for cost effective marketing and, a
coupon book to promote Eagan's hotels, restaurants and attractions.
• ECVB Executive Director Brent Cory and Communications Director Garrison
will make a very brief presentation and overview and then answer any questions.
~a ~
ATTACHMENTS:
ECVB organizational chart on page.
2007 ECVB Marketing Overview on pages ~~ g through
Board approved ECVB budget on page ~=.
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Overview
As with most industries, tourism is literally being redefined by the ever-changing
technologies and tactics associated with e-commerce and the Internet. In order to keep
Eagan's hospitality community at the forefront of the latest trends, the Eagan Convention
and Visitors Bureau's 2007 marketing objectives address the critical steps that will need
to be taken in order to survive and thrive in tomorrow's marketplace. The Bureau will be
launching a new and cutting-edge Web site in early 2007 which will set the tone for the
next generation of marketing and promotional initiatives. Capitalizing on proven Internet
marketing strategies will also help position Eagan as THE destination for tourists and
business travelers for years to come. Target marketing, utilizing new market research
tools and tapping into a variety of niche markets will also be exciting initiatives
spearheaded by the Bureau in 2007.
Strategic Goal
To increase the overall sales and awareness of the Eagan region through effective
targeted and partnership-based marketing strategies at the consumer, media and travel
trade levels.
Budget Estimates
A 2% increase in lodging tax revenue is estimated for the 2007 budget. Emphasis
continues to be on booking meetings, corporate lodging, group tours, sports groups and
leisure travelers to visit Eagan and spend outside dollars in Eagan's restaurants, stores,
hotels, gas stations and attractions.
Bureau Structure
In order to effectively market Eagan as a destination, the organization is structured to
focus on the following core market segments:
Leisure Travel Marketing
Meeting/Corporate Travel Sales
Group/Sports Travel Sales
Leisure Travel Market:
Traditionally, the ECVB has relied heavily upon traditional print media to convey its
messages to leisure travelers throughout the Upper Midwest. While this method still
proves to be effective in most markets, consumers are undeniably gravitating more and
more to the Internet to research and compare destinations. What's more, national
trends point to a growing number of consumers taking the next logical step and
purchasing travel-related products (hotel rooms, rental cars, airline tickets...) online. Not
only does the ECVB need to have a Web site that provides consumers with the "digital
destination" information they're requesting, the Bureau also needs to position itself in
highly visible areas on the Internet that will entice leisure travelers to think of Eagan first
~~
for their next trip. In order to accomplish this, the ECVB is about to embark upon the
most aggressive Web site marketing efforts and Internet advertising campaigns in our
organization's history. The advertising outlets the will be utilized for 2007 incorporate
the best performing "traditional" media purchases along with several new avenues the
Bureau has never explored.
Partnerships will continue to be a strong part of the ECVB's leisure marketing efforts.
The Bureau's strategic partnerships afford a much stronger regional presence in the
media at a substantial savings. The Bureau's primary partnerships include Minneapolis
South (Apple Valley/Bumsville/Eagan/Inver Grove Heights/Lakeville/Shakopee CVB's)
and the Metro Tourism Committee (comprised of the largest CVB's in the Twin Cities).
Promotions are always critical when attempting to attract leisure travelers. Traditionally,
the ECVB has offered a myriad of specials such as free hotels stays, special buy-one-
get-one offers and free Mall of America coupon books. In order to simplify ECVB
specials for the consumer, one "universal" special will be offered up for the entire year of
2007 which will contain a variety of enticing items, such as free passes to area
attractions, the popular Mall of America coupon book and discounts/coupons at
restaurants. The goal is to simply overwhelm the leisure traveler with Eagan hospitality!
Due to the popularity of the "Tanks for Staying in Eagan" gas card promotion during the
summer of 2006, should gas prices spike during the summer of 2007, this component
will likely be incorporated into the marketing mix again.
Finally, in addition to the Minneapolis South Vacation Guide, a coupon book will be
produced focusing on the promotion of Eagan's hotels, restaurants and attractions -this
publication will replace the DVD/corresponding coupon flyer the Bureau has sent out as
its fulfillment piece in the past.
Meetings/Coraorate Travel Sales
Simply stated, the ECVB's corporate travel sales strategy has proven to be a success.
With hotel occupancy rates holding steady during the weekdays throughout the 2006
marketing campaign (specifically Monday through Thursday), marketing efforts in 2007
will once again focus on conducting corporate travel buyer sales calls, participation in
trade shows and the organization of corporate familiarization tours throughout Eagan.
In an effort to bolster meeting sales, the ECVB plans on increasing the number of sales
missions while tapping into new markets. Direct mail efforts, specifically targeting
government meeting planners, along with the development of a new meeting planner
guide with enhancements to the meetings listings on the new ECVB Web site, will also
be initiated during 2007.
Group/Sports Travel Sales
The "traditional" group tour market consisting of Red Hat groups, bank clubs and senior
center travelers continues to decline on a local and national level. However, different
group segments such as student and religious groups are proving to be incredibly viable
markets. In addition to shifting the Bureau's focus onto more lucrative opportunities,
fostering relationships with local athletic associations and facilities will also be a major
initiative for 2007. Opportunities also exist with organizations such as Minnesota Youth
Athletic Services (MYAS) that the Bureau plans on taking full advantage of.
~~
Media/Public Relations
Promoting Eagan as a destination to travel writers and editors throughout the country
has never been more important. Thanks to the Bureau's relationship with Jean Friedl
(freelance tourism media/PR consultant), aspects such as the production of a
comprehensive media kit, maintenance of a media list, attendance and story pitches to
travel writers at shows both nationally and internationally as well as working to promote
the numerous specials the ECVB spearheads will help create a broad reaching identity
for Eagan.
~~
Eagan Convention & Visitors Bureau
2007 Operating Budget
REVENUES
Lodging tax
Other income
Total Income
EXPENSES
Personnel
Other Expenses
Office Expenses
Marketing Expenses
Travel & Entertainment
Total Expenses
Net Income
2004 2005 2006 2007
Actual Actual Budget Budget
720,125 728,848 731,000 745,000
27,014 29,671 20,400 23,500
747,139 758,519 751,400 768,500
208,467 161,286 327,036 273,500
78,651 148,814 64,064 133,750
4,211 8,571 13,000 13,000
397,209 336,841 294,700 325,750
- - 51,200 22,500
688,538 655,512 750,000 768,500
58,601 103,007 1,400
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