GMCVB Goal Setting - Contract PresentationGMCVB Goal Setting –Contract
Presentation
October 21, 2015
2
Timeline Review
September 2014 -Commission Approved Month to Month
contract with GMCVB
Direction to review current agreement and present
recommendations
City Manager; SAG; GMCVB and Spectra have participated in a
process to determine more effective approach
Includes new goals and recommendations
Proposed Contract and Plan has been developed
Includes new goals and inclusive goal setting process
Incentives based on performance
Performance management section with clear accountability
3
Market Share Analysis/ Goal Setting
Process
Current Activity Hotel Room Block Convention Center Miami Beach CVB
ReviewAnalysisCalendar AnalysisSales Data
Determination of
Meeting Planner Analysis of Available Goal Setting –Five
Optimal Number of
FeedbackGroup Marketyear projection
Priority one Groups
Determination of Determination of Key factors in
Priority two groups Miami Beach “in converting Citywide Recommendations
goals hotel” group goalsGroups
GMCVB Contract Performance
Overview Management
4
Background
SAG has conducted a market review and developed a goal
setting plan
Met with newly goal setting committee
GMCVB Board members –participating hotels
Fontainebleau; Kimpton; Marriott; Loews
Frequent meetings and review with Spectra
Developed center revenue goals
Collaborative process with GMCVB
Inclusive goal setting process
Agreement on recommendations
Monthly Sales meetings are underway
Sales activity reviewed monthly
5
Hotel Engagement
6
Available Room Blocks by Hotel Location*
~10 minute drive
1,500 room block
The Palms Hotel
may require 8 to10
Courtyard by Marriott Oceanfront
hotels
Best Western Atlantic Beach
Four Points by Sheraton
Edenroc
The Grand Beach Hotel
Fontainebleau
Miami Beach Resort & Spa
Alexander All Suite Hotel
1,020 rooms
~15-20 minute drive
MBCC
Grand Hotel Biscayne Bay
Walkable
Hilton Miami Downtown
Miami Marriott Biscayne Bay
Courtyard Downtown Miami
New HQ Hotel
Epic Hotel
Delano
Surfcomberby Kimpton
ShelborneWyndam
825 rooms
Hyatt Centric South Beach
Ritz Carlton South Beach
Loews
aLoft
* This illustrate an average
Royal Palm
available room block
OneHotel
1,625 rooms*
1,025 without HQ Hotel
7
Hotel Room Block Analysis -Conclusions
The available room block will support the current
booking policy parameters for Citywide (priority one)
business
8 to 10 hotels may be needed for a Priority One group
room block (with new headquarter hotel)
The core rate range is between $225 and $425
Indicates that there are need periods in the summer as
well as September and October
The new headquarter hotel will play an important role in
creating a larger walkable room block
8
Convention Center Analysis
9
Occupancy Analysis
2013 Convention Center Occupancy –51%
2013 Total Occupied MBCC Rooms –10,808
Total Show Days –6,117
2014 Convention Center Occupancy –49%
2014 Total Occupied MBCC Rooms -11,116
Total Show Days –5,313
10
Miami Beach CVB Data
11
Current Activity –Projected Results
Tentatives
Lost
22
Business
230 Prospects -15%
conversion = 23 Tentatives
64
= 9 Definites
Prospects
230
59
22 Tentatives-30% conversion
= 7 Definites
64Lost Business -5%
conversion = 3 Definities
Total Definitesin “pipeline” =
Based on current activity = 19 new
19 groups
conventions will book in the future
12
Top Markets for MBCC
Need to fully identify and qualify top vertical markets
Examples:
Medical Associations –1,200 potential association in US
Pharmaceutical –41 of the largest companies globally in US
Insurance/Financial –top 50 companies in US
Corporate/Tech –top tech companies and respective annual events
Target clientele indicates high level of service
Opportunity to tie the branding initiative to the target markets
Database mining
GMCVB has allocated personnel to data mining and qualifying the
universe of top vertical markets
13
Goal Setting
14
Goal Setting Process
New goal setting process is collaborative and includes industry
engagement
15
Goal Setting –Priority One Business
Projected Capacity70% (including priority two groups)
Practical Capacity (factorsin holidays etc.)25 priorityone groups
Current(priority one) Annuals7 groups (14 weeks)
Additional PriorityOne Groupsneeded toachieveCapacity18 groups
Factorsto consider in calculating goalsMiami Beach RateThresholds
Available Room Block
Leisure demand
Reduction of 20%Sales cycle (three years)
Aspirational (Stabilized) Goal 14Priorityone groups annually (in addition to
annuals)
Total Priorityone Groups (Incremental + Annuals)21
16
Goal Setting Illustration –70% Occupancy
352
•Available after
calendar
holidays
days
Convention Center Space Convention Center Space
246 available
Availability by PriorityAvailability by Priority
•70% occupancy
days
•Average 14 days
98 annual
•7 events
total days
•14 weeks
•Average 8 days
112 Priority 1
•14 events
total days
•6 average days
36 Priority 2
•6 events
total days
17
Priority One Goals Ramp Up –Future Bookings
Over the 5 year ramp up Miami Beach will see $300 million in economic impact and $5 million in resort taxes.
In a stabilized year Miami Beach will receive $84 million in annual economic impact including $1.4 million in resort taxes to the City.
5-Year Additional Citywide Growth
In addition to current annuals
1650,000
Events
New Room Nights Generated
Additional Citywide Groups
14
45,000
14
Events
40,000
12
Events
12
11
35,000
Events
10
30,000
9
825,000
Room Nights
20,000
44,000
6
Room Nights
Events
36,000
Room Nights
15,000
4
30,000
4
Room Nights
10,000
22,000
2
Room Nights
5,000
10,000
00
20162017201820192020
*Assumes HQ Hotel approval
18
Overall Activity
New Overall Activity
AnnualIncremental Priority 1Priority 2
30
28 Total
25 Total
25
7
23 Total
6
Number of Events
20 Total
5
20
4
14 Total
15
14
12
311
9
10
4
5
77777
0
20162017201820192020
19
Activity Needed to Achieve 5-Year Goals
Need to increase prospects
to achieve goals
230
Prospects
22
1,100
tentatives
Prospects
64 Lost
166
Business
tentatives
19 groups will book with
50 groups needed to achieve goals
current activity
20
Multidisciplinary Approach
Our 4 P’s:
Sales
Product
Data
•
CRM
Mining
People
•
ResearchBranding
Processes
•
Customer
Programs
•
Social
Digital
Media
Marketing
Advertising
Public
Relations
21
MiamiBeachGoal Setting
HotelBookings
YearBookingsYTD RoomNights
2009/201097125,331
2010/2011120139,588
2011/201298169,522
2012/201395148,511
2013/2014142137,774
2014/2015(YTD)164118,912
Total716839,638
Average119139,940
Updated:July24,2015
With addition of headquarter hotel –goals should be set at 125 groups
and/or 142,000 room nights
22
Key Considerations
What must be in place for goals to be met
Focused sales and marketing effort -data mining and prospecting
Headquarter Hotel confirmation
Convention Center construction commencement
Available room blocks
Confirmed with hotel survey –1,500 is achievable
Determination of qualified universe
Included in recommendations
Data mining in place
Adherence to booking policy
Calendar held for Priority one and Priority two business
Effective calendar management implementation
One comp move in/move out day for every show day
23
Recommendation Matrix
Completion
Recommendation ParticipantsStart DateComments
Date
MD
ARKETEVELOPMENT
Identify the “Top Ten” vertical marketsGMCVB7/1/1512/1/15In progress
Complete a prospecting and qualification planGMCVB8/1/152/1/2016
OF
PPORTUNITYTOOCUS
Redeployment of the GMCVB sales teamGMCVB8/1/1510/1/153 people focused on Priority
1 and Priority2 -Complete
Development of a marketing plan by the GMCVB and SpectraGMCVB, Spectra9/1/1512/1/15In progress
Development of a new campaign and brand initiativeGMCVB,City,7/1/1511/1/15In final stagesof brand
platform finalization
Creation of a Miami Beach sales and marketing budgetGMCVB9/1/1511/1/15
P, CR
ARTICIPATIONOLLABORATIONANDEPORTING
Continuation of monthly sales meetingsGMCVB,SpectraOn going
Development of reports that give a comprehensive overview of the GMCVB,Spectra7/1/151/1/16In progress
year to date results
Development of reports that identify the results by sales manager GMCVB7/1/1512/1/15In progress
as well as by identified priority market segments
Implementation of the TAP report (or similar) GMCVB8/1/1511/1/15In progress
Creating software accessibilityGMCVB8/1/151/1/16
GS
OALETTING
Develop an annual calendar for the goal setting processGMCVB,Spectra10/1/152/1/15
Incorporate a review and approval process that include the GMCVB,COMB,10/1/1512/1/15Completed
internal teams, senior leadership, and the hotel industry and is Hotels
finalized by the City Manager
24
Agreement Terms
Base Term: Five (5) year Agreement
Renewal Term: Five (5) years based on achievement of
performance metrics
Base Fee (Year 1): $5,369,243
Base Fee (Year 2 –5): $4,700,000
Base Fee (effective year 2) will be adjusted up or down,
indexed, with the overall growth or reduction of the
municipal resort tax collections annually.
Incentive Fee: GMCVB may earn an additional $1,500,000
based on ability to achieve performance objectives
Incentive prorated beginning with 85% up to 130%
Accountability built in to contract
25
Performance Management
The performance metrics will be monitored using a scale
where 100% achievement indicates satisfactory performance.
If GMCVB falls below 85% in one of the designated metrics
above over a twelve month time frame, this may be considered
as non-performance of the contract.
If the GMCVB does not “cure” the non-performance metric in
ninety days, the city will have the right to terminate the
agreement and or reallocate specific funding.
Performance will be monitored by reviewing definite bookings
and overall sales activity. If sales activity is deemed to be below
the amount needed to achieve the booking goals, this may be
considered as non-performance.*
*All goals pending finalization of HQ Hotel
26
Next Steps
Finalize Reporting Plan
Continue monthly review meetings
City (SAG), GMCVB, Spectra
Report on recommendations and progress