INDUSTRY BAROMETER DECEMBER 2016
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1 INDUSTRY BAROMETER DECEMBER 2016
2 INDUSTRY BAROMETER DECEMBER 2016 TABLE OF CONTENTS Dear friends, Welcome to Travel Portland s latest industry snapshot. Inside these pages, you ll find statistics, updates and insights that highlight our success in achieving Travel Portland s five key objectives: Our most important initiative Increase visitor-related economic impact for the Portland region Pages 3-7 Influence the long-term development of the destination and its brand Pages 8-9 Deliver a consistently remarkable customer experience Page 10 Foster high-value relationships with our stakeholders Page 11 Lead an efficient, high-performing organization Page 12 We appreciate your partnership and the role you play in making the visitor industry such a powerful economic driver for the Portland area. Cheers, Jeff Miller President & CEO 2
3 Increase visitor-related economic impact for the Portland region January December 2016 source: Dean Runyan associates OVERALL ECONOMIC IMPACT preliminary impacts for 2016 VISITORS & SPENDING In 2016, the Portland metro area welcomed 8.9 million overnight visitors, who generated $5.1 billion in direct spending. $4.9 B $5.1 B TAX REVENUE Helping ease the state and local tax burden, area travelers generated $245 million in tax revenue, of which $134 million was local tax revenue. $233 M $245 M JOBS The travel industry supports 36,300 jobs in the Portland area, generating in excess of $1.2 billion in employment earnings. 35,400 36,
4 Increase visitor-related economic impact for the Portland region HOTEL PERFORMANCE: CITY OF PORTLAND +2.7% +3.1% +4.6% +1.4% JAN DEC 2016 JAN DEC 2015 Source: STR 3,773,289 3,874,688 $ $ $ $ % 79.1% Hotel Rooms Sold Average Daily Rate RevPAR* Occupancy Three-dimensional Portland-themed shadowboxes went on display in Seattle in early ADVERTISING CAMPAIGNS To drive off-season visits to the city, Travel Portland is targeting leisure travelers in the Pacific Northwest with a comprehensive advertising, social media and public relations campaign, More Portland is Happening Now. In November and December 2016, the campaign helped drive bookings through select partnerships with Expedia, TravelZoo and various online publishers, including Saveur, Fodor s Travel and UpRoxx. In early 2017, advertising helped inspire trips via video placements on Hulu, YouTube and TripAdvisor; sponsored content on Buzzfeed and Vox; paid promotion on Expedia; and a 3-D shadow box installation in Seattle. In spring 2017, Portland will target travelers in fly-markets, Minneapolis and Phoenix. HOTEL RESULTS In both November and December, overall demand (rooms consumed) at TID hotels exceeded pre-campaign forecasts. Demand: forecast Demand: actual november % +4.1% december % +3.4% Source: STR Analytics and STR *Revenue per available room 4
5 Increase visitor-related economic impact for the Portland region PORTLAND INTERNATIONAL AIRPORT (PDX) International travel at PDX continues to stay strong. In May 2017, Delta Air Lines, in partnership with Virgin Atlantic, is increasing nonstop service from London Heathrow seasonally, four times per week. Additionally, Icelandair and Condor Airlines are adding frequency and length of service from Europe, as is Volaris from Guadalajara. Air Canada is bringing back nonstop service from Toronto for a second year, plus multiple services from Calgary and Vancouver. The year-round Delta Air Lines services from Amsterdam and Tokyo also continue to be successful. Travel Portland is proud to invest and work pro-actively in the source markets of these nonstop flights, in collaboration with the Port of Portland and Travel Oregon. JAN DEC 2016 JAN DEC 2015 Source: Port of Portland +8.8% 17,679,874 16,248,366 Domestic: total passengers TRAVELPORTLAND.COM 1,593, % 672, ,586 International: total passengers +8.9% 18,342,767 16,850,952 Total enplaned & deplaned passengers TravelPortland.com maintained the broad reach it has achieved over recent years, attracting over 4 million visits in The shift to mobile browsing continues apace, with only 42% of visitors now accessing our content via traditional desktop or laptop displays. UNIQUE ENGAGED VISITORS $63,152,084 JAN DEC 2016 ECONOMIC IMPACT Using the formula from Destination Analysts 2014 report,* TravelPortland.com was responsible for more than $63 million in incremental visitor spending in *Unique engaged visitors are individuals who visited TravelPortland.com at least once and viewed at least two pages on the site. 5
6 Increase visitor-related economic impact for the Portland region MEETINGS AND CONVENTIONS: OCC TARGETS In fiscal year , the Oregon Convention Center (OCC) has realized $5.5 million in revenue from Travel Portland booked business, with a community economic impact of nearly $62 million for future bookings. Did you know? From July-December 2016, Travel Portland booked 12 minority meetings with an estimated economic impact of $2.4 million. Travel Portland staff promoted Portland as a convention destination in Las Vegas at IMEX America, a meetings and travel exhibition. JULY 2016 JUNE 2017 FISCAL YEAR GOAL JULY DEC 2016 FISCAL YTD 3.8:1 3.8:1 37% $5.5 MILLION $14 MILLION 36.4:1 42.0:1 OCC revenue realized from Travel Portland bookings ROI on future OCC business Lead conversion Community economic impact 6
7 Increase visitor-related economic impact for the Portland region JULY DEC 2016 JULY 2016 JUNE 2017: GOAL Estimated economic impact $14.4 M $30 M INTERNATIONAL TOURISM Portland has seen excellent results from Australia and New Zealand since entering those markets four years ago and, in August 2016, Travel Portland implemented its largest consumer activation to date in the Oceania market. In the style of a first-tier destination, Travel Portland sponsored the two-day Beervana Festival in Wellington, New Zealand, occupying a 40-foot (12 m) Portland Beer Bar. Staff poured local beers and promoted Portland as a craft beer destination to the more than 10,000 festival attendees. Travel Portland s attendance at Beervana capped off a highly successful sales mission to Australia and New Zealand, in partnership with Travel Oregon. Estimated economic impact Pouring craft beer at the Beervana Festival in Wellington, New Zealand. Wie is de Mol? website TOP DUTCH REALITY SHOW FILMS IN PORTLAND AND OREGON One of the most watched television shows in the Netherlands selected Portland, the Greater Portland region and several other parts of Oregon for its highly successful 17th season. Wie is de Mol? ( Who is the Mole? ) is an incredibly popular, primetime reality show, featuring Dutch celebrities who face off in competitions but are sabotaged by one mole amongst them. The show, which has never selected a U.S. location before, debuted Jan. 7, 2017 to over 3 million viewers, the most viewed episode in the show s history. To maximize this opportunity, Travel Portland is implementing numerous sales, media and content marketing activities in the Netherlands, boosting in-market consumer awareness for Portland and Oregon. Travel Portland thanks the Greater Portland region for their partnership and Travel Oregon for its support of this project. 7
8 Influence long-term development of the destination and its brand MEDIA PLACEMENT For every $1 spent on PR, 982 people had the opportunity to read positive coverage about Portland. 639M Ad value JULY DEC 2016 $31.6M Impressions JULY DEC 2016 Travel Portland hosted a private viewing party for media and travel trade clients for the first episode of Wie is de Mol? in Amsterdam. COVERAGE ANALYSIS Topics covered most by media from July Dec
9 Influence the long-term development of the destination and its brand INTENT TO TRAVEL TO PORTLAND How likely are you to visit Portland, Oregon, for a leisure trip/vacation during the next 24 months? 80 MARCH 2016 MARCH 2015 MARCH 2014 Lives in the West Source: MMGY Global 80 MARCH 2016 MARCH 2015 MARCH 2014 National 75% 65% 55% 48% 48% 63% 36% 29% 26% 23% 19% 19% 16% 12% 21% 13% 16% 16% Extremely/ very likely Somewhat likely Not very/ not at all likely Extremely/ very likely Somewhat likely Not very/ not at all likely COMMUNITY RELATIONS Students in the REAP program attended the Travel Portland Education Foundation s golf tournament in September Travel Portland continues to support nonprofit organizations, addressing equity, the city s future workforce and homelessness in the greater Portland region. Recent support included sponsoring Brew for New Avenues for Youth, an annual event supporting the organization s commitment to helping homeless youth find housing and employment. REAP program students attended Travel Portland s annual Education Foundation golf tournament, sharing their aspirations with future leaders within the travel and tourism industry. The 2016 fundraising event was a great success, resulting in an organizational match of funds raised to provide additional scholarships for students. Most recently, Travel Portland embarked on the early stages of a Tourism Master Plan in order to support the long range development of our destination and brand. The project will assist Travel Portland in the short- and longrange planning of visitors experiences, which are impacted by our changing and growing city. 9
10 Deliver a consistently remarkable customer experience CONVENTION SERVICES From July to December 2016, Travel Portland s convention services team distributed 48,695 promotional pieces, sent out 577 leads to business partners and hosted 15 site tours. The housing department booked 11,792 room nights. Travel Portland s customer service was fantastic. [They] went above and beyond to help me. Nicole Guy, Microscopy Society of America AWARDS Successful Meetings Pinnacle Award 18-time winner M&C Gold Service Award 16 consecutive years Did you know? The Travel Portland Visitor Information Center served an estimated 500,000 visitors in TRAVELPORTLAND.COM Building on our increasingly successful content strategy, Travel Portland has doubled the number of articles and itineraries added to the website each month. This additional content provides new, relevant information to visitors exactly where they re looking for it: in their search results. Additionally, Travel Portland s social media presence continues to grow, thanks to the grassroots enthusiasm of our community. Overall, Travel Portland gained more than 100,000 new followers in 2016, a growth of 41%. We are particularly proud of our Instagram channel (@travelportland), which in fewer than 30 months grew from zero followers to more than 100,000 in December WAS THIS PAGE? 9% HELPFUL 91% NOT HELPFUL JAN DEC
11 Foster high-value relationships with our stakeholders LEADS SHARED WEBSITE REFERRALS CONVENTION SERVICES MILLION CONVENTION SALES 1,026 JULY DEC 2016 JAN DEC 2016 Traffic from TravelPortland.com to external websites PARTNER SUMMARY Travel Portland has 873 business partners, ensuring a strong link between Travel Portland s customers and the brand and destination promise. Travel Portland requires an active constituency representing broad business involvement within the hospitality i n d u s t r y. Among partner businesses, 8% are minority-owned and 12% are women-owned. Partner business-to-business networking events and educational programs are held regularly. Partners and staff network at Ponzi Vineyards during one of our monthly partner networking events. 11
12 Lead an efficient, high-performing organization ORGANIZATIONAL PERFORMANCE To increase organizational efficiency, Travel Portland has focused on continually improving its internal systems, including payroll processing, accounting and IT. Tourism Improvement District (TID) revenue has increased 5% year over year and transient lodging tax revenue has increased 13.6% in the same time frame. KEY REVENUE STREAMS 4.3% +13.6% +5% 3.4% JULY DEC 2016 JULY DEC ,548,197 3,702,395 $3.2 M $3.6 M $6.2 M $6.5 M 74.2% 76.7% DEMAND Transient Lodging TID OCCUPANCY Tax (TLT) 12 12
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