ANNUAL REPORT MARKETING PLAN - Tempe …

1 ANNUAL REPORT FY 2014 2015 MARKETING PLANFY 2015 2016 WELCOMEDear Friends and Colleagues,We are pleased to present our ANNUAL REPORT reflecting 2014 2015 results and our MARKETING plan for 2015 2016. As you know, our goal is to attract visitors to Tempe and create a positive economic impact for our community. This is always top-of-mind when we execute our ANNUAL MARKETING past year, Tempe experienced strong growth in visitation. We were proud partners in hosting the most successful Super Bowl in history and realized incredible growth in revenue in January and February. Additional events such as the Chang s Rock n Roll Arizona Marathon & Marathon, Ironman Arizona and ASU athletics continue to be an important draw specifically for Tempe .

2 The Tempe Tourism Office will continue to work with the City of Tempe and partners valley-wide to host ANNUAL events. We are looking forward to hosting the Collegiate National Championship game in 2016 and the NCAA Final Four in 2017. Partnerships are important to us and allow us to expand our reach. That is why we are transitioning from a membership model to a new partnership-style organization, which will offer our partners the opportunity to participate in additional programs that best meet their MARKETING you review our accomplishments from Fiscal Year 2014 2015 and our planned MARKETING activities for Fiscal Year 2015 2016, please feel free to reach out to us and share your thoughts. By working together, this will be another great year for Tempe .

3 Sincerely,MISSIONTo promote the City of Tempe as a desirable leisure and business travel INFORMATIONMain Office & Visitor Center 222 South Mill Avenue, Suite 120 Tempe , AZ To be the most trusted source of travel information for the City of NowackPresident and CEOD eborah OstreicherBoard ChairANNUAL REPORT FY 2014 2015 Strategies & Results 4 Staff Members 5 Board of Directors 6 Tempe Lodging Market 7 Revenue & Expenses 8 Office Relocation 9 Advertising Placement 10 Tourism MARKETING & Development 11 Sports MARKETING 12 Communications 13 Digital MARKETING 14 Group Sales 15 Return on Investment 2014 2015 17 ANNUAL REPORT 2014 20154 STRATEGIES & RESULTSRESULTSG enerates revenue for the City of Tempe .

4 Tempe s businesses and helps to sustain a desirable quality of life for ACTIVITIES Advertising Group Sales Communications Digital MARKETING Sports MARKETING ASU Partnerships Tourism MARKETING & DevelopmentAUDIENCES Media & Travel Writers Consumers Meeting Planners Sports Rights Holders Domestic & Receptive Tour Operators AAA/CAA Travel AgentsIncrease Number of Visitors to TempeTempe Tourism Facilitates the ConnectionAnnual REPORT 2014 20155 STAFF MEMBERSS tephanie NowackPresident & DudeBusiness & ADMINISTRATIONM ichael MartinExecutive Vice SmithDirector of GriglakDigital MARKETING SestyDigital Content BlackTourism Development LewisSports & Tourism MARKETING & COMMUNICATIONSJ ames TevaultDirector of ConnellyGroup Sales HathawayGroup Sales PrestonPartnership & Services & SERVICESA licia KentzCustomer Service CENTERA nnual REPORT 2014 20156 BOARD OF DIRECTORSCHAIRD eborah Ostreicher.

5 Phoenix Sky Harbor International Airport VICE CHAIRM ichael Reed ..ASU Gammage SECRETARY/TREASURERD enise Neff ..Vestar Development PAST CHAIRR obin Trick ..House of Tricks EX-OFFICIOS tephanie Nowack .. Tempe Tourism OfficeDIRECTORSR obin Arredondo-Savage ..City of Tempe Daryl Crawford ..Papago Golf CourseDerek Crawford ..ASU Karsten Golf CourseGema Duarte Luna ..Duarte Luna Consulting, LLCM argaret Dunn ..Dunn TransportationDon Fassinger .. Tempe Center for the ArtsShelley Hearn ..City of TempeJohn Kane ..ArchitektonBill Kennedy Intercollegiate AthleticsMary Ann Miller .. Tempe Chamber of CommerceJim O Meara ..Courtyard by Marriott Tempe DowntownKelly Rafferty ..City of Tempe Parks & RecreationTom Rogers.

6 Arizona Amateur Athletic UnionJohn Sallot ..Desert Botanical GardenEric Sather .. Tempe Mission PalmsAl Taylor ..Special Moments CateringPeggy Traister ..Rustler s RoostePat Warren ..Graduate TempeJudi Yates ..Yates Enterprises, Yeager ..Bright BrothersAnnual REPORT 2014 20157 Tempe LODGING MARKETT empe and Metro Phoenix experienced growth year-over-year in all three categories for hotel performance. According to industry research, while we are seeing stronger percentage increases, we have not attained the peak performance experienced in 2006 and 2007. In real dollars, our industry would need to see a rate increase of $ to reach those peak numbers. It is important to note that hotels experienced an extraordinary increase during January March 2015 due to the Super Bowl, Pro Bowl and a strong spring training season.

7 *Source: Smith Travel Research Inc. Re-publication or other re-use of this data without the express written permission of STR is strictly prohibited. Tempe hotels/rooms = 47/5,747 Metro Phoenix hotels/rooms = 449/61,503200953%52%201361%60%201465%63% 201057%56%201161%58%201260%58%OCCUPANCY* Tempe Metro PhoenixAVERAGE DAILY RATE (ADR)* Tempe Metro Phoenix$89$1062009$81$982010$87$1042011$ 88$1062012$88$1092013$92$1142014 REVENUE PER AVAILABLE ROOM (REVPAR)* Tempe Metro Phoenix$47$552009$48$622010$53$602011$53 $612012$53$652013$60$712014 ANNUAL REPORT 2014 20158 REVENUE & EXPENSESM arketing $1,229,097 Personnel $1,133,156 Operations $343,552In-Kinds Expense $40,0282014 2015 EXPENSESTOTAL EXPENSES* $2,745,8332014 2015 REVENUETOTAL REVENUE$2,878,414 Bed tax $2,160,000 Prop 302 funds $528,951 Promotional Participation $61,398 Advertising Income $49,200In-Kind $40,028 Membership $37,727 ANNUAL Meeting $1.

8 025 Interest $85 FPO*At the direction of our CPA and auditor, expenses for purchase of furniture and computers were reflected on the balance sheet under property and equipment. These costs will be capitalized with the equipment expensed over five years and the furniture over seven REPORT 2014 20159 OFFICE RELOCATION With the expiration of our lease, the Tempe Tourism Office had the opportunity to relocate our main office and visitor center to a location with Mill Avenue frontage. We were able to make this move without affecting our MARKETING budget for FY14/15. Advantages for the new location include: Better visibility for visitors searching for tourism information and assistance More collaborative work environment for our staff Modern design that reflects our brand Improved location between the Mill Avenue light rail stop and Tempe Beach ParkAnnual REPORT 2014 201510 Northstar Travel Media Group M&C Magazine Successful Meetings50,00050,000 Pandora Spring Campaign4,285,645 Pride Guides Arizona Colorado New Mexico California1,125,770564,450554,115513,000 163,576120,431102,529 SMART Meetings321,29048,877 Specific Media Fall Campaign Spring Campaign1,250,0002,183,490 Sunset Magazine3,603,755621,173 Travel Guides Free2,292,000 Trip Advisor1,556, ,596,582 Yahoo!

9 Fall Campaign Spring Campaign1,384,46919,652,755 ADVERTISING PLACEMENTAAA Publications Home & Away Midwest Traveler Living World1,075,201522,0002,471,1602,490,000 Arizona Office of Tourism October 2014 E-blast February 2015 E-blast Spring Training E-blast Visitor s Guide295,186299,060365,636450,000 Collinson Media Collaborate E-blasts Connect E-blasts Collaborate Magazine Connect Magazine8,57420,36015,00015, ,000 ESPN Spring Training6,666,784 IMM25,000 MNI Networks Fall Campaign2,044,563 Spring Campaign8,436,629 National Park Trips13,680 PublicationCirculationImpressionsPublica tionCirculationImpressionsCOMBINED CIRCULATIONS AND IMPRESSIONS 68,458,539 TOTAL IMPRESSIONS55,207,503 TOTAL CIRCULATIONS13,251,0362012/201322,752201 3/201419,7962014/201520,557 REQUESTS FOR INFORMATIONA nnual REPORT 2014 201511 TOURISM MARKETING & DEVELOPMENTCOLLATERAL DISTRIBUTION Distributed promotional collateral to consumers and travel agents in the and Canada through sales missions, travel trade requests and at the Chicago, Bay Area and Los Angeles Travel & Adventure Shows.

10 Park & Fly200 Fall Seasonal Brochure3,195 Spring Seasonal Brochure 5,200 Summer Seasonal Brochure70 Visitor Guides3,400 SUNNY ARIZONA PROGRAM Conducted visits to 411 agents and 69 AAA offices during sales missions to:Alberta Iowa New Jersey Chicago Nebraska Pennsylvania Connecticut New York SaskatchewanFulfilled a total of 5,900 consumer requests for information from the Sunny Arizona website, AAA Home & Away, AAA Living, AAA Journeys, AAA Midwest Traveler and AAA our website MARKETING Supported arts and cultural events in Tempe through 131 blogs on , the Examiner and Tempe Tempe Events This Week e-blasts to 200 hospitality partners and concierges.