CAPITAL REGION USA, INC Washington, DC» Maryland» Virginia

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1 CAPITAL REGION USA, INC Washington, DC» Maryland» Virginia Annual Report FY 2014

2 ABOUT CAPITAL REGION USA Capital Region USA (CRUSA) is the official regional destination marketing organization promoting Washington, DC, Virginia and Maryland internationally, in partnership with Destination DC, the Virginia Tourism Corporation, the Maryland Office of Tourism Development and the Metropolitan Washington Airports Authority. Mission More overseas travelers staying longer and spending more money. TOP MARKETS United Kingdom China Germany France Brazil 2

3 GOAL 1: FUNDING & FINANCE Ensure long range funding stability for CRUSA marketing efforts on behalf of its partners. CRUSA achieved a record budget of $3.2 million, including $1.7 million in cash and in-kind investments from corporate sponsors, grants, tour operator partners and suppliers across the region. CRUSA leveraged its primary funding partner s individual annual investments by 8 to 1. Cash & In-Kind Contributions CRUSA Suppliers - $768,511 Sales Missions - $17,716 Brand USA - $58,450 US Dept. of Commerce - $59,467 Miles - $111,180 Tour Operators - $680,931 Promotions - $17,843 Miscellaneous - $2,000 CRUSA Budget Summary FY Primary Partner Income (Destination DC, Maryland Office of Tourism, Virginia Tourism Corporation, Metropolitan Washington Airports Authority) Cash & In-kind Contributions FY12 FY13 FY14 $1,420,000 $1,512,500 $1,486,000 $1,735,367 $1,673,248 $1,716,098 TOTAL $3,155,367 $3,185,748 $3,202,098 Primary Partner s Investment Leverage 9:1 8:1 8:1 3

4 GOAL 2: MARKETING Create and implement integrated marketing strategies that are innovative and leading edge, that advance the CRUSA brand and that attract funding. Consumer Marketing CRUSA completed year three of its integrated marketing partnership with Miles, providing opportunities for industry participation in CRUSA s print travel guides, website advertising, , search engine marketing and Brand USA opportunities. The program generated $268,000 in industry support for the integrated campaign, a 6% increase from the prior year. Print Travel Guides: CRUSA s overseas representatives in the United Kingdom, Germany, France & Brazil distributed approximately 70,000 print travel guides to travel trade, media and consumers. In addition, there were 9,943 downloads of the e-guide across all languages. 4

5 Marketing CRUSA delivered 285,319 e-newsletters in English, German, French and Portuguese, generating 51,272 opens and 6,919 click-thrus to partner websites. Web Marketing CRUSA s websites in eight languages engage visitors with a fresh design, immersive photography, videos and prominent calls to action. Key website metrics for FY 2014: KK PPC and digital media marketing efforts generated 45.7 million impressions and 170,490 clicks to the website, at an average cost per click of $.66, an improvement of 6%. Impressions declined by 41% but clicks increased by 22%, reflecting more efficient campaigns. KK PPC and digital marketing efforts promoting scenic byways generated 23,327 clicks to scenic byways content on the CRUSA website, a 23% increase from FY ,035 unique visits +13% 614,564 page views +14% 14,999 deals views +17% 5

6 Tour Operator Cooperative Marketing CRUSA partnered with 17 overseas tour operators for joint consumer marketing initiatives in the United Kingdom, Germany, Brazil and France. CRUSA s investment of $187,565 was matched by $72,717 from Brand USA and the US Dept. of Commerce and $579,181 from the operators, resulting in campaigns valued at $839,463. Five supplier partners participated in the UK and German campaigns and contributed an additional $24,000 in support. Partner tour operators booked 44,608 room nights in the region during the year, generating an estimated economic impact of $5.6 million. Promotions Promotions during 2014 touted the region s culinary offerings, outdoor adventures, scenic byways, shopping and city stay opportunities to consumers and the travel trade across four key markets. Sweepstakes competitions tied to many of the promotions helped CRUSA to expand its opt-in database by nearly 4,000 consumers. Blogger press trip United Kingdom More than 50% of UK residents report being influenced by travel blogs and videos in trip planning. These channels provide greater engagement and longevity and are easily measured. To capitalize on this trend, travel bloggers visited the region and created six new travel videos promoting outdoor recreation, scenic byways and urban adventures, paired with the opportunity to win a free holiday in the region. 6 Results achieved: KK Total YouTube video views: 145,217 KK Total blogger page views: 38,247 KK Prize trip entries: 5,315 KK opt-ins: 1,649 KK Earned media value: $975,000

7 Tastecard United Kingdom Tastecard is the UK s #1 diners club, with more than 2 million affluent members who are digitally savvy, enjoy good food and want to experience the world. CRUSA initiated a two month brand affinity campaign to promote culinary experiences across Washington, DC, Virginia and Maryland. Results achieved: K KCRUSA landing page visits: 10,583 K KPrize trip entries: 4,428 K K opt-ins: 1,536 K KEarned Media Value: $134,022 Eat Smarter magazine Germany CRUSA partnered with the upmarket glossy food magazine Eat Smarter (circ: 140,000), with a dynamic, modern and affluent audience interested in travel, fitness and healthy eating. The centerpiece of the promotion was a 17-page feature on the region s culinary delights with an earned media value of $920,000. The promotion generated 28,127 visits to a dedicated landing page and 16,000 entries to win a food lovers holiday to Washington, DC, Maryland and Virginia. Panrotas Promotion Brazil Panrotas is Brazil s leading travel trade portal, with 11,000 unique visitors per day and 1.7 million monthly page views. CRUSA partnered with Panrotas to create a destination microsite and digital guide with dynamic content, imagery and videos to promote the region s key attractions, tips and offers to travel professionals across Brazil including the chance to win a holiday to the Capital Region. The microsite was promoted via banner ads, newsletters and online TV coverage. Results achieved: K K926 sweepstakes campaign entries K K721 opt-ins to CRUSA Portuguese database K K12,506 pageviews K K2:17 minutes - average time on site 7

8 Media Relations CRUSA achieved editorial coverage in print and electronic media outlets with an earned media value of $15.1 million. CRUSA and its partners hosted 29 group and individual media fam trips supported by $197,174 in in-kind support from travel industry partners across the region and beyond who provided free or reduced rate flights, accommodations, meals, attraction admissions and transportation for our clients. This represents a 62% increase in support from FY KBC PR & Marketing, LTD, CRUSA s UK based public relations agency, won a silver award for its Lincoln The Movie campaign in the best tactical PR category at the 2014 Travel Marketing Awards. 8

9 TRADE MARKETING CRUSA s overseas sales representatives conducted 508 sales calls and training seminars for 1,256 travel agents and tour operator sales and reservations staff members across all CRUSA markets. CRUSA organized and led four sales missions to Germany, France, Brazil and China, generating 167 sales leads. CRUSA participated in seven international trade shows that were attended by 437,000 tour operators, travel agents and media representatives. CRUSA and its partners hosted 13 trade fam tours for 53 clients. These fam tours were supported by $220,303 in in-kind support from travel industry partners and international airlines who provided free or reduced rate flights, accommodations, meals, attraction admissions and ground transportation for our clients. This represents a 15% increase in support from FY Four e-newsletters were distributed to more than 310 receptive tour operators in November, January, March and June. Eight partners contributed $8,000 to participate in the program. 508 sales calls 1,256 travel professionals trained 4 sales missions 7 trade shows 13 trade fam tours 9

10 BRAND USA Brand USA provided $58,450 in added value to grow CRUSA s marketing reach during the year. This investment was used to expand search engine marketing and tour operator co-op marketing budgets and represents a 142% increase from FY CRUSA fam tours generated $132,113 in in-kind contributions for Brand USA, allowing the organization to unlock additional marketing funds. To better leverage the 9.7 million unique visitors to Brand USA s Discover America and GoUSA.cn international websites, links were established to the Maryland, Virginia and Washington, DC landing pages of the CRUSA website from the corresponding state and city pages on the Discover America websites in six languages, allowing visitors to access CRUSA content in their preferred language. Discover America websites now appear regularly in CRUSA s top referring domains report each month. To create more compelling content for the Discover America and GoUSA.cn websites, CRUSA participated in Brand USA s In-Language Content Program. New travelogue-style videos, travel articles and imagery now appear on the English and Portuguese language Discover America websites and the Chinese language GoUSA.cn website, receiving nearly 7,000 page views during the year. 10

11 GOAL 3: RESEARCH Strengthen research tools to (1) better understand our customer, (2) assess economic impact of overseas arrivals to region and (3) measure and evaluate marketing programs. To expand sample size for the U.S. Department of Commerce s Survey of International Air Travelers (SIAT) and to survey travelers in proportion to total international arrivals at IAD and BWI, CRUSA has been a lead partner in the Department s Supplemental Airport Survey Program (SASP). Since 2009, CRUSA has seen its sample size increase by 56%, to 2,993 surveys collected at IAD and BWI in Supplemental surveying at these two airports also improves survey reliability for other US destinations, just as additional surveying at other US gateways benefits CRUSA. CRUSA produces annual reports documenting arrivals, spending and traveler demographics for visitors from Overseas, the United Kingdom, China, Germany, France and Brazil, based on the SIAT. Overall, overseas arrivals to the region declined by 3% in 2013, with total direct spending declining by 1%. Average length of stay in CRUSA was 8.4 nights Overseas Arrivals to CRUSA Country of Residence United Kingdom China Germany South Korea France Australia Japan Brazil Visitation 245, , , ,000 95,000 88,000 86,000 78,000 Receipts ($Millions) $164 $183 $62 N/A $48 N/A N/A $43 Total - All Markets 2,050,000 $1.45 Billion 11

12 2013 Arrivals by World Region 2014 Overseas Arrivals to CRUSA 3% 4% 5% 2% 6% 5% 10% 40% WESTERN EUROPE ASIA SOUTH AMERICA OCEANIA MIDDLE EAST EASTERN EUROPE CARIBBEAN AFRICA According to the U.S. Inbound Travel Monitor for January June 2104: K KCRUSA overseas mid-year arrivals were up 8% compared to An estimated 947,000 overseas visitors traveled to the region. K K Arrivals and market share increased from China, Brazil and France; declines were registered from the United Kingdom and Germany. K KOverall market share remained unchanged at 6% K K43% of CRUSA visitors arrive during January - June CENTRAL AMERICA Sources: Travel Market Insights & U.S. Department of Commerce 25% Consumer Awareness Study Research reports on Overseas Arrivals and findings from the Consumer Awareness Study may be obtained by contacting Matt Gaffney at or CRUSA partnered with PhoCusWright to conduct an online panel research study of 2,500 overseas consumers, 500 each in the UK, Germany, France, China and Brazil. The study provides insight into how overseas consumers plan and book travel, their perceptions and destination awareness for the Capital Region and their reactions to CRUSA s communications channels. 12

13 CAPITAL REGION USA BOARD OF DIRECTORS Virginia Tourism Corporation: Rita McClenny, President & CEO Diane Bechamps, Vice President, Marketing Heidi Johannesen, International Marketing Director Maryland Office of Tourism Development: Margot Amelia, Executive Director Liz Fitzsimmons, Assistant Director Rich Gilbert, Travel Trade Sales Manager Destination DC: Elliott Ferguson, President & CEO Theresa Belpulsi, Vice President, Tourism Robin McClain, Vice President, Marketing & Communications Officers: Chairman, Diane Bechamps Vice Chairman, Theresa Belpulsi Secretary/Treasurer, Margot Amelia Capital Region USA, Inc. P.O. Box 1171, Rehoboth Beach, DE Matt Gaffney, President & CEO Stacey Sheetz, Digital Marketing Manager Kimberly Petersen, Marketing Coordinator Audited financial statements for the Capital Region USA may be obtained by contacting Matt Gaffney at or 13

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