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Home My WebLink AboutCH-OCVB minutes 021809Minutes Chapel Hill/Orange County Visitors Bureau Board February 18, 2009 The Chapel Hill/Orange County Visitor’s Bureau Board met at Chapel Hill/Carrboro Chamber of Commerce 104 S. Estes Drive Chapel Hill Board Members Present: Rick Strunk, Bob Ward, Jim Ward, Greg Overbeck, Creston Woods, Mark Sherburne, Dave Gephart, Jon Wilner, Linda Convissor, Jim Parker, Dwight Basset, James Harris Members Absent: Barry Jacobs, Frances Dancy Other’s Present: Brad Broadwell, O.C. EDC Director; Bruce Wlach, Jennings Co. Staff Present: Laurie Paolicelli, Linda Ekeland, Tina Fuller, and Dale Chodorow Guests: John Pelletier, Equation Research CALL TO ORDER Mr. Mark Sherburne, Chair, called the meeting to order at 8:03 a.m. WELCOME Chair Sherburne welcomed and thanked everyone for appointing him Chair. Sherburne went on to say that economic times are different and plans are to make sure we are on top of our game. INTRODUCTION OF NEW BOARD MEMBERS Chair Sherburne introduced new members: Greg Overbeck of the Chapel Hill Restaurant Group representing Chapel Hill/Carrboro Chamber of Commerce; Jim Parker of Summit Engineering representing Hillsborough Chamber of Commerce; James Harris, Economic & Community Development Director, Carrboro; Dwight Harris, Economic Development, Chapel Hill and Lee Pavao, Emeritus. REPORTS Budget & Finance Chair Sherburne gave the floor to Finance Chair, Bob Ward. Ward informed board members that the County has imposed a 2% budget cut this year and a 10% cut next fiscal year for all county departments. The Visitor Bureau’s (VB) 2% cuts are in Sales Travel, Trade Shows and Strategic Planning for this budget year. The County also put a freeze on Recurring Capital expenditures. Although not included in the 2% cut and before the freeze, the VB decided not to use the $33,000 originally budgeted for the purchase of a van for that purpose. Next budget year’s cuts may be in advertising as well as other accounts. Ward also informed that the VB’s current fund balance is $303,000. Board member Creston Woods commented that he would like to see the fund balance used for advertising. Board member John Wilner agreed and stated that we should be pushing our brand rather than cutting back. Board member Jim Ward stated that the Town of Chapel Hill is also imposing across the board budget cuts but more surgically and hopes that the County follows through with strategic cuts as well. Board member Dave Gephart commented that he would like to see rent and the administrative fee cut. Bob Ward continued with the finance report stating that occupancy receipts were up by 17% however not close to where they should be giving an example that with the extra 1% tax increase, December’s receipts should be $63,000 vs. $54,000. Discussion ensued with Creston Woods commenting that in some cases bookings are worse now than years following 9/11, stating that the booking window is so short it is scary and effects everywhere. Executive Director Laurie Paolicelli responded that the VB is being proactive with new ads and new contracts. In conclusion, Jim Ward requested a report showing what the tax receipts would be had the 1% increase been approved. Paolicelli agreed to produce. GUEST SPEAKER (Equation Research 2009 Leisure Travel Study) Chair Sherburne introduced John Pelletier of Equation Research, a leader in the hospitality and travel industry stating that he works with other CVB’s in customer satisfaction research. With that Sherburne gave the floor to Mr. Pelletier. Pelletier thanked the board for bringing him back stating that last time, 2006, research findings painted a pretty rosy picture, very positive and exceptional. Pelletier went on to say that we are not in that situation any more stating the obvious that this past quarter was bad and is projected to get worse. However, there is high optimism for 2010. In line with Equation Research’s 2009 study PowerPoint presentation, Pelletier proposed that the question now must be: “How do we salvage something out of this year and this economy?” Pelletier stated that now is the only time change in the market shares occurs – in a down economy. Uncertainty is the #1 factor with 68% of visitors willing to consider a new destination. Key points being: 1) Once you get a piece you never give it back and 2) how to take a piece with out getting bitten. Pelletier described the primary objectives of the research as: •Clarify visitor profile and preferences ••Assess destination strength and weaknesses ••Gauge the motivational attributes ••Measure past visitor interests and preferences ••Evaluate satisfaction with destination attractions and services ••Review economic factors that impact leisure travel From two sample sources: 1) Past visitors to Chapel Hill as identified by CHOCVB 2) A regional list of residents meeting a list of screening criteria (provided by eRewards) Qualifications to participate in survey: •Age 25 or older •Live in GA, NC, SC, VA, WV, or DC •Household income of $50,000 or more •Have taken overnight trip for leisure with a stay in hotel or other lodging accommodations in past 12 months •Participate in vacation planning for household Mr. Pelletier covered the topics of: What our visitors & prospects look like Travel planning and patterns How economic concerns impact leisure travel What people are looking for in a leisure destination How Chapel Hill stacks up as a leisure destination What people are reporting about Hillsborough Good news highlights: 1) Solid awareness and familiarity • Friendly, safe, and easy to get to • Family friendly • Plenty to do and enjoy 2) Strong balance appeal (ideal combination with UNC) 3) High marks for satisfaction 4) Strong competitive product • Beautiful scenery • Fine dining • Friendly atmosphere • Lots more Not so good news highlights: Affordability is a huge challenge 69% of prospects feel …“neither good nor bad place to visit” 99% of your prospects have NEVER visited your website. Hillsborough is a tough sell on it’s own Unsettling low likelihood to visit Chapel Hill Raleigh Durham/Duke may be the beginning of market share erosion Low visibility (limited advertising) Conclusion: Pelletier stated that we need to force both visitors and prospects to “pull the trigger”, selling them again on our area. We need to let them know how affordable we are. Advertise Pursue Persuade Harness on-line marketing. E-mail is an affordable means of advertising. Be more persuasive than our competitors and promote strong unified offers that stress value, affordability, and a relaxing place to escape and revive. Pelletier stressed the importance of a 60-90 day reaction time to the economic down turn in which discussion followed. Chair Sherburne recommended discussing the fund balance usage and specifications in response to the 60-90 day recommendation and present at next months meeting. NEW BUSINESS No new business OLD BUSINESS No old business APPROVAL OF MINUTES Chair Sherburne requested a motion to approve the November 19, 2008 minutes. Dave Gephart moved to accept as written, Bob Ward seconded. With all board members in agreement the motion was carried unanimously. ADJOURNMENT With no other business to discuss, Chair Sherburne adjourned the meeting at 9:44 a.m. ________________________________ ________ _________________________ Minutes Drafted by: Minutes Accepted by: Laurie Paolicelli, Executive Director Mark Sherburne, Chair ________________________________ _________________________________ Date Date