CHINA MISSION BRIEFING. October 19, 2014
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1 CHINA MISSION BRIEFING October 19, 2014
2 AGENDA I. Visit California Market Updates II. III. IV. Visit California China Travel Trade Efforts Visit California China PR Efforts Sales Mission Program Overview
3 Visit California Market Updates
4 Travelers spent nearly in California in 2013 $109.6 billion In travel-related consumer spending 965,800 Tourism-related jobs in California $7.1 billion In state and local tax revenue Source: Dean Runyan Associates
5 CA DOMESTIC VS. INTERNATIONAL SPENDING (2013) 243 million person-trips $109.6 billion in spending 6% 19% 94% 81% Source: DK Shifflet & Associates, U.S. Department of Commerce, CIC Research Inc., Dean Runyan Associates
6 CA S TOP INT L MARKETS 2013 Volume 13/08 % Chg Mexico 7,477, % Air 515, % Canada 1,567, % China 819, % U.K. 652,000-11% Australia 553, % Japan 536,000-8% Germany 421, % S. Korea 389, % France 388, % Scandinavia 241, % India 240, % Brazil 206, % Source: Department of Commerce; Stats Canada; CIC Research Inc.; BEA; Tourism Economics
7 CALIFORNIA 2014 TRAVEL FORECAST INTERNATIONAL CA International Inbound Travel Annual % change 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% US California F 14F 15F 16F 17F Source: Tourism Economics
8 CALIFORNIA 2014 TRAVEL FORECAST INTERNATIONAL Projected international leisure visits by market Average annual growth, China India South America Australia Canada South Korea Mexico United Kingdom Scandanavia Germany Japan France Source: Tourism Economics
9 2013 INTERNATIONAL VISITATION AND SPENDING Thousands 2,000 1,800 1,600 1,400 1,200 1, Visitation Spending $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Millions Source: U.S. Department of Commerce; CIC Research, Inc.; BEA; Tourism Economics
10 2017 INTERNATIONAL VISITATION AND SPENDING Thousands 2,000 1,800 1,600 1,400 1,200 1, Visitation Spending $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Millions Source: U.S. Department of Commerce; CIC Research, Inc.; BEA; Tourism Economics
11 TOP PROJECTED VOLUME GROWTH CA AIR TRAVEL, P Additional Visitors China 745,000 Canada 214,000 Australia 109,000 Mexico Air 104,000 India 99,000 Brazil 90,000 U.K. 80,000 S. Korea 78,000 Source: Tourism Economics
12 VISIT CALIFORNIA S INVESTMENT IN CHINA $5.0 million $4.0 million $3.0 million Nearly $5 million invested Another $4.5 million in $2.0 million $1.0 million $.0 million
13 INTERNATIONAL REPRESENTATION Atlantic Link MN O DCI Black Diamond MSI Sartha AviaReps CWW GMS SMI Master Consulting AviaReps Gate 7
14 BRAND USA PARTNERSHIP FRAMEWORK California Custom Programming Brand USA Visit CA Partnership Brand USA-only programs Pillar specific activity (California-only National Park promotion) Foundational/ Owned Programs OTA Partnerships Non-mature brand market activity (joint China digital campaign) Multiple market consumer and trade partnerships Tier 3 market trade activity
15 FY 14/15 STATIC PLAN MARKET PRIORITIZATION Tier 1 Tier 2 FY14/15 Direct-to- Static Plan consumer brand advertising & digital content Direct-toconsumer digital content Tier 3 Travel trade and public relations
16 Dreamers
17 California is the land of boundless opportunity, a place where you don t just dream, you dream big Chinese Message Be Bold to Dream ( 大胆梦 )
18
19 2014 SPRING ADVERTISING CAMPAIGN With introduction of the Dream Big initiative, advertising was expanded. While the 2013 campaign was digital, this year s effort also included television and promotion of the Dream 365 videos. The campaign included two television ads and three digital ads, as well as a sampling of the Dream 365 videos. Media Spending 2014 Television $1,492,573 Online TV $1,787,655 Digital $746,899 Total $4,027,127
20 HIGH AWARENESS AND STRONG RECALL Advertising Recall 61% 59% Television Digital Ads Dream 365 Videos 76% 81% Media Aware HHs CPH Television 7,376,776 $0.44 Total Recall Recall was strong for both television and online. Overall, 81% of the consumers recalled an element of the VCA campaign, which is among the highest levels achieved by VCA campaigns across multiple countries. The cost per aware household is better than many other international campaigns that VCA has implemented. Online 6,022,417 $0.12 Total Aware 9,795,391 $0.41
21 FY 14/15 STATIC PLAN CHINA Regional TV Retargeting Online TV Online TV Digital Pillar Support $3,300, M Imp. Search Engine Marketing Paid Social Brand USA Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Emphasis on National Day/Golden Week planning window
22 VisitCalifornia.com Refreshed site launches this month in the United States, by year s end in China
23 VISIT CALIFORNIA S TRAVEL TRADE STRATEGY Increase share of featured product as well as sales Utilize always on approach to engage travel trade Educate and inspire travel trade with online tools Development of Trade Metrics (ROI)
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25 Tier 1 Major Airline Partnerships Non-Endemic Sponsorships Global Brand Pillar FAMs Tier 2 Tier 3 Travel Trade Portal Targeted Co-ops Bi-Annual Sales Missions CA Advisory Boards Training (Online and In- Person) New Airlift Support FAMs
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28 Dream Big Dividend Market Prioritization Tier 1 Direct-toconsumer brand advertising & digital content Tier 2 Direct-toconsumer digital content Tier 3 Travel trade and public relations
29 Ballots mailed Nov. 26 Option A (recommended) Lower rate option achieves Dream Big Dividend funding in three years Option B Higher rate option achieves Dream Big Dividend funding immediately
30
31 Outlook Forum 2015 Feb Winter Board Meeting will follow on Feb. 25. La Quinta Resort & Club Greater Palm Springs industry.visitcalifornia.com/outlook2015
32 CHINA TRAVEL TRADE HIGHLIGHTS Familiarization Tours
33 aits fam 1 Leverage airline, tour operator and receptive coop to conduct trade FAM to enhance destination knowledge for product development
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35 Involve local partners to the FAM
36 FAM album records unforgettable itinerary
37 CHINA TRAVEL TRADE HIGHLIGHTS Trade Show & Agent Training
38 Consistently provide agent training
39 Team with Brand USA, Californian partners and United Airlines to conduct Mega Seminar in Chengdu for its new flight to San Francisco
40 TRAVEL TRADE HIGHLIGHTS Agency Cooperation
41 California Flagship Agency Program
42 Decorate partner operators outlet to be CA point of sales Enhance CA brand via California point-of-sales
43 VCA Print advertisement and advertorial
44 Digital - banner ads, EDM & wechat post
45 OOH - California promotion on Princess Cruise
46 Promotion at radio program
47 PUBLIC RELATIONS HIGHLIGHTS Familiarization
48 China Market Overview Project: Individual Media Visit National Geographic Traveler Date: March 19 th 30 th 2014 Outcome: Circulation: 1,600,000 Ad Value: $683,000
49 China Market Overview Project: Mega Chinese New Year Group Media Fam Date: Jan 31 st to Feb 6 th 2014 Outcome: Circulation: 3,000,000 Ad Value: $202,963
50 China Market Overview Project: Chengdu Media Fam (prior educational fam of inaugural of UA direct flight) Date: April 21 st 28 th, 2014 Outcome: Circulation: 56,700,000 Ad Value: $7,942,000
51 China Market Overview Project: Perfect China Media FAM Date: May 22 nd 30 th, 2014 Outcome: Circulation: 4,110,000 Ad Value: $4,890,000
52 China Market Overview Project: Tudou.com Filming Group YiRenXing-California Chapter Date: August 21 st to 28 th, 2014 Outcome: Circulation: 4 million view times in one calendar month for the entire series Ad Value: $2,650,000
53 China Market Overview Snapshots
54 China Market Overview Snapshots
55 Sales Mission Program Overview
56 PROGRAM SNAPSHOT Oct 20 Shanghai Agency Visit: Ctrip Travel Trade 1:1 VIP Dinner Oct 21 Shanghai - Chengdu Panda Base Visit VIP Dinner Oct 23 Oct 24 Chengdu - Beijing VIP Dinner Beijing Media Interview Travel Trade 1:1 Farewell Dinner Oct 22 Chengdu Agency Visit: Sunny Tour Delegate Presentations (Optional) Kuanzaixiangzi
57 PROGRAM DETAILS Agency Visit with Ctrip October 20 8:55-9:00am 9:00-10:00am 10:00-11:20am 11:20-11:30am 11:30-12:30pm Meet at hotel lobby Transfer to Ctrip Presentation by Ctrip Product and Marketing MOU sign to announce VCA and Ctrip Co-op over the next three years Back to hotel Dress Code: Business
58 PROGRAM DETAILS Travel Trade Appointment October 20 2:00-5:00pm 3F/ Ballroom A & B, Langham Xintiandi Dress Code: Business
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60 PROGRAM DETAILS VIP Dinner October 20 6:00pm 6:00-6:05pm 6:05-7:05pm 7:05-8:00pm Meet at 2F / Emerald, Langham Xintiandi Leona s welcome speech Introduction and Q&A Networking Dress Code: Business
61 PROGRAM DETAILS Fly to Chengdu / Panda Base Visit October 21 6:50-7:00am 7:00-8:00am 9:05-12:15pm 1:15-2:00pm 2:00-4:00pm 4:00-5:00pm Meet at hotel lobby Transfer to the airport Shanghai-Chengdu / MU5401 Transfer from the airport to Panda Base Panda Base visit Back to hotel Dress Code: Casual
62 PROGRAM DETAILS VIP Dinner October 21 7:00pm 7:00-7:05pm 7:05-7:10pm 7:10-7:15pm 7:15-9:00pm Meet at 2F / Jade 1, Ritz Carlton Leona s welcome speech US Consulate welcome speech United Airlines welcome speech Dinner and networking Dress Code: Business
63 PROGRAM DETAILS Agency Visit with Sunny Tour October 22 9:20-9:25am 9:30-10:00am 10:00-11:30am 11:30-11:50am Meet in hotel lobby, Ritz Carlton Transfer to Sunny Tour Sunny Tour Agency Visit Transfer back to hotel Dress Code: Business
64 PROGRAM DETAILS Delegate Presentations October 22 2:00-5:10pm 2F / Diamond 3, Ritz Carlton Dress Code: Business
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66 PROGRAM DETAILS Kuanzaixiangzi Tour (Optional) October 22 5:50-5:55pm 6:00-6:30pm 6:30-9:00pm 9:00-9:30pm Meet in hotel lobby, Ritz Carlton Transfer from hotel to Kuanzaixiangzi Hotpot dinner and time explore Kuanzaixiangzi Transfer back to hotel Dress Code: Casual
67 PROGRAM DETAILS VIP Dinner October 23 6:00-8:00pm 3F / Meeting 1, Conrad Beijing Dress Code: Business
68 PROGRAM DETAILS Media Interviews October 24 9:30am-12:30pm 3F / Meeting 1, Conrad Beijing Dress Code: Business
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70 PROGRAM DETAILS Travel Trade Appointments October 24 2:00-5:00pm 3F / Ballroom I+II, Conrad Beijing Dress Code: Business
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72 PROGRAM DETAILS Farewell Dinner October 24 5:55-6:00pm 6:05-6:15pm 6:15-9:00pm Meet in hotel lobby, Conrad Beijing Walk from hotel to 1949 Restaurant Delegate Farewell Dinner Dress Code: Casual
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