Visit Austin, Travel and Tourism Update — original pdf

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T R A V E L & T O U R I S M U P D A T E Tom Noonan, President & CEO of Visit Austin T R A V E L I N D U S T R Y I M P A C T L O S T B U S I N E S S 3 C A N C E L L A T I O N I M P A C T I M P A C T O F C A N C E L E D V I S I T A U S T I N B O O K I N G S I M P A C T O F S X S W C A N C E L L A T I O N 263 308,842 $81 MM $316 MM 58,000 $34 MM C A N C E L E D T O T A L R O O M L O S T H O T E L G R O U P S N I G H T S R E V E N U E T O T A L E C O N O M I C I M P A C T T O T A L R O O M N I G H T S L O S T H O T E L R E V E N U E *Farthest out citywide cancellation: early November *Farthest out future cancellation: April 2021 (this is the only 2021 cancellation thus far) NOTE: Cancellation loss represents Visit Austin booked meetings only, as of MAY 31; SXSW estimated room night/revenue loss per STR analysis 4 F U T U R E B O O K I N G S 5 R O O M N I G H T S O N T H E B O O K S T E N T A T I V E F U N N E L YEAR # Leads TRN ESTIMATED ECONOMIC IMPACT 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 137 348 141 99 43 24 8 6 4 1 73,573 $64,398,827 341,184 $240,719,605 245,270 $177,661,349 314,443 $223,768,730 192,476 $164,380,220 96,475 76,064 17,087 14,306 2,824 $88,360,066 $39,473,300 $17,582,850 $14,323,200 $2,218,950 TOTAL 811 1,373,02 $1 Billion L E A D T R E N D S (March-May) ● Lead volume down 60% over same time period last year ● 50% of Leads 250 peak or less ● Medical & Tech - Largest Industry Segments ● 52% of these Leads are for 2021 ● Delayed decisions for future years due to 2020 cancellations, postponements and replacement bookings 8 B O O K I N G P R O D U C T I O N (October ‘19-March ‘20) Booked Room Nights 388,065 110% YTD / 55% Annual Goal Convention Center Booked Room Nights 125,380 103% YTD / 52% Annual Goal Lead Room Nights 2,431,034 115% YTD / 58% Annual Goal Leads Sent 1,930 113% YTD / 56% Annual Goal 9 Commodore Perry Estate ∙ July 2020 ∙ 53 rooms Canopy Hilton W 6th ∙ July 2020 ∙ 140 rooms Marriott Downtown ∙ September 2020 ∙ 613 rooms Hotel Magdalena (Bunkhouse) ∙ Summer 2020 ∙ 89 rooms Moxy University ∙ Late 2020 ∙ 154 rooms Kalahari Resort ∙ Late 2020 ∙ 990 rooms Thompson/tommie Hotels ∙ Q2 2021 ∙ 400 rooms Hilton Garden Inn University ∙ Q3 2021 ∙ 214 rooms Hyatt Centric ∙ Q4 2021 ∙ 246 rooms The Loren ∙ Q1 2022 ∙ 108 rooms Green Pastures Hotel ∙ Summer 2022 ∙ 63 rooms N E W H O T E L I N V E N T O R Y *All Projects Moving Forward 10 H O T E L I M P A C T F R O M C O V I D I M P A C T T O A U S T I N H O T E L I N D U S T R Y L O W E S T O C C U P A N C Y & D A T E M O N T H C B D C I T Y C B D H O T E L C I T Y* H O T E L O C C U P A N C Y O C C U P A N C Y R E V E N U E L O S T R E V E N U E L O S T C B D C I T Y M A R C H 27.6% -68% YOY 39.6% -54% YOY $68 M -75% YOY $98 M -69% YOY 2.8 Sun, April 12 17.2 Sun, Mar 22 A P R I L 3.9% -95% YOY 21.6% -73% YOY $67 M -98% YOY $100 M -89% YOY M A Y 12.4% -85% YOY 30.1% -61% YOY $57 M -93% YOY $84 M -83% YOY *NOTE: Citywide revenue metric includes CBD revenue lost. HOTEL MEETINGS AT 50% CAPACITY per Gov. Abbott’s Announcement 12 T H E R E T U R N O F L E I S U R E ? F R I D A Y M A Y 22 % C H A N G E T O P R E V I O U S W E E K E N D S A T U R D A Y M A Y 23 % C H A N G E T O P R E V I O U S W E E K E N D C B D O C C U P A N C Y C I T Y O C C U P A N C Y M E M O R I A L D A Y W E E K E N D C B D O C C U P A N C Y C I T Y O C C U P A N C Y P O S T H O L I D A Y W E E K E N D C B D O C C U P A N C Y C I T Y O C C U P A N C Y F R I D A Y M A Y 15 13.1 30.2 24.7 37.2 21.9 36.9 S A T U R D A Y M A Y 16 15.3 30.8 37.9 46.8 27.3 42.5 148% 52% -28% -9% 89% 23% -11% -1% F R I D A Y M A Y 29 % C H A N G E T O P R E V I O U S W E E K E N D S A T U R D A Y M A Y 30 % C H A N G E T O P R E V I O U S W E E K E N D 13 H O T E L S T A T U S R E P O R T 14 Of Hotel responses to Visit Austin: ● 40% Remain Closed ● 16% Reopened ● 44% Remained Open *Stats as of June 3, 2020 **Many hotels have projected reopening dates in late June- early July timeframes V I S I T A U S T I N F R O M H O M E 16 R E C O V E R Y 17 T A C T I C A L P L A N Visit Austin will deploy a tactical plan that adapts to the ever-evolving landscape brought on by the Covid-19 pandemic. This plan, set in motion in March of 2020, outlines short- and long-term strategies to restore the local industry and welcome visitors back to Austin. The full impact of this global crisis is yet to be seen, and full recovery may not be achievable within one fiscal year. 1 2 3 R E B U I L D & R E S T O R E (Will be marked by <45% city side hotel occupancy) Initial focus on leisure drive market visitors. Other objectives include restoring agreements with convention groups, providing resources to Austin’s hospitality community, and maintaining top-of-mind awareness and support of local businesses are top priorities during this phase. S T A B I L I Z E (Will be marked by 46-64% city side hotel occupancy) In this phase, we will look to tried-and-true sales and marketing tactics to inspire Austin brand engagement and visits. This phase will also require foresight and innovation to adapt to new norms for both leisure and meeting travel. N O R M A L I Z E (Will be marked by 65%+ city side hotel occupancy) This phase will be marked by sustainable outcomes which signal the return of a healthy tourism and hospitality industry including the return of conventions and international travel. Given its long-range view, these strategies will remain fluid, prompting ongoing conversation and collaboration with relevant stakeholders. 18 V I S I T A U S T I N F O U N D A T I O N U P D A T E 19 H O S P I T A L I T Y I N S U R A N C E M A R K E T P L A C E E D U C A T I O N V I R T U A L E D U C A T I O N S H O W C A S E LIVE WEB SESSION WITH: Cindy Novotny, Master Connection Associates TOPIC: ‘Be Resilient – Preparing for the Grand Re-Opening’ WHEN: Thursday, June 25 @ 10 a.m. V I S I T O R C E N T E R U P D A T E 25 A U S T I N V I S I T O R C E N T E R ● 11 Tour Companies Operating from the Visitor Center ○ 6- Vehicle/Van Companies ○ 5 - Walking, Bike, Segway, Running ● 35 Local Area Vendors Featured through our Retail/Shop Inventory ● Virtual/Online Store ● Currently Servicing Visitor Inquiries via Phone and Email L O O K I N G A H E A D 27 T A C T I C A L P L A N Visit Austin will deploy a tactical plan that adapts to the ever-evolving landscape brought on by the Covid-19 pandemic. This plan, set in motion in March of 2020, outlines short- and long-term strategies to restore the local industry and welcome visitors back to Austin. The full impact of this global crisis is yet to be seen, and full recovery may not be achievable within one fiscal year. 1 2 3 R E B U I L D & R E S T O R E (Will be marked by <45% city side hotel occupancy) Initial focus on leisure drive market visitors. Other objectives include restoring agreements with convention groups, providing resources to Austin’s hospitality community, and maintaining top-of-mind awareness and support of local businesses are top priorities during this phase. S T A B I L I Z E (Will be marked by 46-64% city side hotel occupancy) In this phase, we will look to tried-and-true sales and marketing tactics to inspire Austin brand engagement and visits. This phase will also require foresight and innovation to adapt to new norms for both leisure and meeting travel. N O R M A L I Z E (Will be marked by 65%+ city side hotel occupancy) This phase will be marked by sustainable outcomes which signal the return of a healthy tourism and hospitality industry including the return of conventions and international travel. Given its long-range view, these strategies will remain fluid, prompting ongoing conversation and collaboration with relevant stakeholders. 28 B U D G E T 29 Approved FY 2019 Approved FY 2020 Amended FY 2020 Proposed FY 2021 HOT Funding 13,126,471 14,748,301 10,059,265 10,864,807 Private Revenue 2,210,525 2,419,700 1,665,326 1,125,250 Draw on Reserves* 376,100 533,800 1,000,000 1,000,000 15,713,096 17,701,801 12,724,591 12,990,057 *Draw on Reserve for FY19, Approved FY20 were to fund convention commitments, draws in amended FY20 and proposed FY21 are to fund marketing C O S T- C U T T I N G A C T I O N S In response to the COVID-19 Pandemic, Visit Austin has implemented the following actions to reduce costs during the time period of March 24-May 12, 2020: 1. We have suspended our 401k matching program. 2. We reduced initial employee compensation between 10-30% based on position. 3. We made a secondary reduction in employee compensation between 5-10% based on position (Director level and above). 4. All marketing and advertising campaigns have been paused. 5. We have paused all non-essential contracts until further notice. 6. We have eliminated travel for the remainder of 2020. 7. We have cut all possible IT costs and paused spending on non-essential expenses. 8. Furloughed (18) full-time employees. 9. We continue to be in close communication with the Austin Convention Center Team as we work to uncover additional potential savings. 31 Q & A 32