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Bringing the Green to Bowling Green February 23, 2009 PPORTUNITY OSITIVE Welcome – Mayor Elaine Walker World, U.S. and Kentucky Economic Conditions and Forecasts Trends 2009 & 2010 Bookings Marketing Opportunities Mayor Elaine Walker

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Welcome – Mayor Elaine Walker

World, U.S. and Kentucky Economic Conditions and Forecasts


2009 & 2010 Bookings

Marketing Opportunities


January 26, 2009 -Davos, Switzerland, World Economic Forum PricewaterhouseCoopers surveyed 1,124 corporate CEO’s from 50 countries in attendance…..

Most executives said they expect any recovery to be gradual and extend over three years

Confidence among CEO’s around the world is at its lowest point since 2003

Only about a third is confident about growth in the next three years, down from 42 percent last year. Almost 7 in 10 said their companies will be affected by thecredit crisis, and 70 percent of those said they will delay planned investments as a result.


The U.N. World Tourism Organization says global tourism could decline by up to 2 percent in 2009 amid the financial crisis. The Madrid-based organization states Europe will be the most affected.


According to the National Bureau of Economic Research, the U.S. economy officially entered into a recession in December 2007

state of the u s economy
State of the U.S. Economy

Recessions tend to hit the tourism industry about 6 months after they begin. That holds true here. We are fortunate that BG hasn’t suffered in recessions as severely as the national economy – slower coming in, faster coming out. Even though our industry lags behind about 6 months, we are hopeful that BG will come out sooner this time too.

We are in our 11th recession since post WWII

Current recession 15 months

Longest Recessions –16 months (twice)

Average Recession –11 months

Source: Louisville Tourism Summit, February 9, 2009

state of the u s economy8
State of the U.S. Economy

What is the net job loss in BG in 2008? Is it as severe as other places in the nation? Kentucky? Not according to a Daily News article on February 4.

Jobs in the United States

December 2007 –138,078,000

December 2008 –135,489,000

Loss of 2.5 million jobs since last December

Source: U.S. Bureau of Labor Statistics, Current Employment Survey

state of the travel economy
State of the Travel Economy

We normally have a good amount of snowbirds staying here and we will loose some because they won’t be able to travel, but we may pick up others who are still traveling – ones who traditionally have stayed in larger, more expensive markets.

The senior market accounts for 25% of the leisure travel segment. Erosion in 401(k) accounts will slow down senior leisure travel in 2009.

Source: Louisville Tourism Summit, February 9, 2009

state of the travel economy10
State of the Travel Economy

Americans feel they deserve a vacation and some will still travel. We are an affordable city that many people may not have thought to visit in the past.

Maritz Research Hospitality Group (MRHG) conducted a poll to see how current economic circumstances are impacting people's travel intentions for the first part of 2009.

• 41% of Americans are planning to cut back on personal entertainment costs, such as movies, theater, and sporting events

• 34% plan to cut back on the number of times they dine out

• 20% plan to downgrade the class of restaurants at which they dine out

state of the travel economy11
State of the Travel Economy

Since we are primarily a drive market, we hope to pick up some of those leisure air travelers who are driving on their vacations.

The MRHG survey also stated those that travel by air for leisure…

• 26% expected a decrease in leisure air travel over the next six months

• 12% indicated that their personal leisure travel would be 'significant'

• 38% said they would be staying at hotels for leisure less often in the foreseeable future

state of the travel economy12
State of the Travel Economy

PKF-HR is forecasting hotel occupancy for 2009 to be the lowest in 20 years!

Source: Meeting News, December 15, 2008


Jan Freitag, Vice President -Smith Travel Research suggests “hotels should provide more value rather than simply play with rates.”

•Free Breakfast

•Free Internet Access

•Free Bottled Water

•Free Newspapers

•Free Parking


2008 in review air travel
2008 in Review – Air Travel

The price of jet fuel reached record levels in 2008 resulting in massive reductions in seat capacity nationwide.

•30-50 seat regional jets grounded or sold

•Most “point to point” flying discontinued

•Leisure flying discontinued (Florida, Las Vegas)

•Long-haul domestic flying curtailed

•New menu of fees for services introduced by airlines

•Seven airlines fail; two airlines merge, bankruptcies increase

•Airlines cut 10-15% of total seat capacity in U.S. during 4Q 2008

Source: Tom Tyra, Louisville International Airport, Louisville Tourism Summit, February 9, 2009

2008 in review air travel15
2008 in Review – Air Travel

In response to slowing economy and flight reductions consumption of jet fuel decreases. However, consumer demand drops faster than the price of fuel. Airlines announce further cuts in capacity for 2009.

Most large corporations have slowed travel or placed restrictions in place for 2009

Financials (North America)

- First half of 2008 – $1.8 Billion Profit

- Second half of 2008 - $3.9 Billion Loss!

Source: Tom Tyra, Louisville International Airport, Louisville Tourism Summit, February 9, 2009



More billboards.

According to TIA, 28% of air travelers avoided at least one trip during the prior 12-month period due to the problems in the air travel process avoiding 41 million trips (12 million business trips and 29 million leisure trips)


January 2009-The Travel Industry Association’s (TIA) latest survey predicts a drop of at least 1.3% in over all leisure travel in 2009


Travel is a $10.7 billion industry in Kentucky

  • Vacations are needed now more than ever
  • People are still going to travel
    • 71% of U.S. adults say they plan to take an overnight leisure trip in the next 6 months
    • U.S. adults rated travel second to dining out as the leisure activity they are trying to afford

Source: Smith Travel Research (Kentucky Department of Tourism)


Shorter, closer trips

Less discretionary spending during a trip

Trading down, not out


Destinations that are seen as a value

Source: Kentucky Department of Tourism


71% of parents surveyed wish their family spent more time together as a group

  • 69% wish they had more time to just sit and talk with their kids
  • Travel with children increased from 26% to 36% from 2000-2008
  • Multi-generational travel
    • 38% of leisure travelers are grandparents
    • 27% took at least 1 trip with grandparents

Source: YPartnership (Kentucky Department of Tourism)


-The “time poor” traveler likes to have his trip wrapped up in a nice package.

-The “All Access Pass” is admission to about 8 local attractions. The pass is good through 2009 and offers single admission to each attraction. Great deal – about 30% discount.

-Itineraries are growing in popularity. Visitors want to know where to go, how to get there and how long they can expect to spend at each stop.

Online packages with a la carte tickets

Attraction “All Access Pass”

Sample itineraries

Class reunions, weddings and other potential event attendees 

Custom sample itineraries and sending them to the guests along with a Visitors Guide

Goal is to get the guest to come in a day early and/or stay an extra day to participate in leisure activities with their families

business travel forecast
Business Travel Forecast

Can BG pick up business here?

A June 2008 survey by Orbitz, conducted in conjunction with the Business Traveler, found that more than 2/3 of business travelers were staying in less expensive hotels or, when possible, avoiding a hotel altogether by returning home the same day.

business travel forecast24
Business Travel Forecast

Should we maintain our prices instead of increasing them in order to retain customers?

National Business Travel Association

2009 Overview & Cost Forecast

•Business travel costs will increase from 5%-8%

•Business trips will be lower than averages of 2004-2007

•Published airfares will increase 7% -10%

•Hotel rates will increase 1% -4%

•Car rental will increase 1%-3%

meeting convention trends
Meeting & Convention Trends

Things to Watch for in 2009

• Sourcing more hotels for each bid

• Using the Internet to drive down prices

• Length of meetings shortened

• Reducing F&B offerings

• Trading down from luxury to lower-tiered properties

• Bargain hunting by shopping at smaller markets

• Reduced number of attendees (attrition)

Source: Louisville Tourism Summit, February 9, 2009

meeting convention trends26
Meeting & Convention Trends

Green Meetings

• In 2006 3.7% of planners were interested in green meetings

• In 2008 37% of planners were interested in green meetings

• Recommendation: Make sure you include a green initiative in all your future proposals

Source: Nancy Wilson, CMP, Meetings Strategies Worldwide

meeting convention trends27
Meeting & Convention Trends

On the corporate client side…Corporations are moving forward by changing their travel departments to –“Strategic Meetings Management Departments”

•Offer clear objectives for every meeting

•Demonstrate value of their meetings when they sit down with management

•Demonstrate ROI for a meeting

Source: Louisville Tourism Summit, February 9, 2009


Park free in BG!

Respond and respond quickly to RFPs.

Welcome signs.

Attracted to meeting facilities/hotels looking for ways to say yes, even if they sometimes have to say no.

Attracted to meeting facilities/hotels that “get it.”

Weaknesses in coming to a city:

- Parking fees

- Some hotels don’t want to participate in RFPs for citywide bookings


- Put welcome signs in windows (downtown bars, shops, restaurants)

Source: Richard “Dick” Holmes, Director of Conventions & Meetings, The American Legion, Louisville Tourism Summit, February 9, 2009

hospitality technology trends
Hospitality Technology Trends

•In 2008 there were 66 million online travel purchases

•In 2009 68 million online travel purchases are expected

•$26 billion of leisure travel is purchased online

•$8 billion of corporate travel is bought online

Source: Louisville Tourism Summit, February 9, 2009

hospitality technology trends30
Hospitality Technology Trends

• Customers will increase their online search for price deals from 4 searches (2008 average) to 8 searches in 2009

• Another third of hotel bookings will be directly influenced by online search, but booked offline

• In 2010 the Internet will contribute over 45% of all hotel bookings in North America

Source: Louisville Tourism Summit, February 9, 2009

hospitality technology trends31
Hospitality Technology Trends

• More hospitality brands will be getting into social media (Facebook, Twitter, etc.)

• Success will come from understanding and valuing online feedback from blogs and forums and acting on it

• Facebook and Twitter being used to create social network communities for registered delegates before a meeting happens

Source: Louisville Tourism Summit, February 9, 2009

hospitality technology trends32
Hospitality Technology Trends

Do you offer video conferencing at your business?

Videoconferencing back in vogue

DALLAS, TX -The Regus Group, operator of the world's largest network of public access studios with more than 600 global locations, reported a 40 percent spike in videoconferencing bookings as cutbacks in business travel forced companies to change the way they do business.

"The quality of virtual tools available have improved so dramatically in recent years, I can't imagine any company reverting back to its old way of conducting a meeting." Mark Dixon, CEO, Regus Group


“In 2010, the relevant economic indicators are forecasted to begin to drive lodging demand upward. This will happen simultaneously with diminished levels of new supply, thus resulting in gains in occupancy and, eventually, pricing power.”

Source: Mark Woodworth, President PKF-HR


John Hach, Senior Executive at Travelclick, a hotel intelligence and marketing firm based in Chicago noted what stimulates demand is destination appeal...

New/Expanded Product Development

- National Corvette Museum Expansion

- Civil War Heritage Trail

- Historic Railpark & Train Museum New Exhibits/Railcars

- Kentucky Museum New Exhibits

- Aviation Heritage Park New Display/MiG Pilot Visit

- Bowling Green Hot Rods

major nearby expansion
Major Nearby Expansion

Nashville - Music City Convention Center

$600 million project

Opening tentatively scheduled for the end of 2012

1.2 million sq. ft.

375,000 sq. ft. Exhibit Hall

80 Meeting Rooms

40 Loading Docks

Source: Louisville Tourism Summit, February 9, 2009

major nearby expansion36
Major Nearby Expansion

When our region brings in new business, we have an opportunity to expose them to BG.

Nashville - Music City Convention Center

New citywide definite bookings

(100,000 room nights):

- Academy of General Dentistry – June 2013

- Association of School Administrators – February 2014

- American Alliance for Health, Physical Education, Recreation and Dance - 2018

- Southern Baptist Convention - June 2013 & June 2019

Source: Louisville Tourism Summit, February 9, 2009


Kentucky dropped 3.9% in hotel occupancy in 2008

1% statewide lodging tax is 1% ahead of this time last year (Ryder Cup)

Source: Marcheta Sparrow, Tourism, Arts & Heritage Cabinet Secretary, Louisville Tourism Summit, February 9, 2009

Harley Owners Group American Muscle Tour

(National event-Bowling Green to Milwaukee)

July 13-15, 2009 (in Bowling Green)

1,000 participants expected

First time event in Bowling Green

Big plus to be starting point of this tour

Woodman of the World

March 27-28, 2009

700 room nights expected

Kentucky, Indiana, Ohio Vietnam Helicopter Pilots Association

February or March 2010

Super Chevy Show

August 14-16, 2009

New event to Bowling Green

Expected to make similar impact as GoodGuys Nostalgia Nationals

KHSAA Football Championships

(Commonwealth Gridiron Bowl)

December 3, 2009 and December 4, 2010

ASA All Divisions State Tournament

ASA 14 and Under Midwest Nationals

ASA 16 and Under Midwest Nationals

ASA 12 and Under Northern Nationals

ASA 18 National Qualifier

marketing opportunities ideas
Marketing Opportunities/Ideas

Welcome on Marquees

Post weekly What's Happening

Hang event posters

Let us know your events in advance

Subscribe to and read Bureau Brief

Participate in applicable opportunities in Bureau Brief

Provide trinkets for Ditty Bags for special events

marketing opportunities ideas44
Marketing Opportunities/Ideas

Provide certificates that we can use for sweepstakes, contests and door prizes

Display rack with Visitor's Guides / coupon books in your business

Refer visitors to area attractions and events

Volunteer to survey your guests / customers

Let us know any kids activities or specials you have (kids eat free, etc)

marketing opportunities ideas45
Marketing Opportunities/Ideas

Let us know if you have free wifi, are smoke-free or have green practices

Encourage your satisfied guests to post a review on Trip Advisor

Participate in City Vision

Become a Visitor's Guide advertiser or get listed on our website

Group dining options and restaurants taking advance reservations for Corvette Caravan attendees