CDME SURVEY
RESULTS
June 2013
ANNUAL BUDGET
$20,000,000
$18,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$7,400,000
$8,000,000
$6,000,000
$5,000,000
$3,809,384
$4,000,000
$1,386,000 $1,500,000
$2,000,000
$2,213,000
$120,000
$City A
City H
City G
City F
City B
City E
City D
City C
TBID TERM LENGTHS
1 DMO:
• Annual extension
with no term limit
1 DMO:
• Indefinite
3 DMOs:
• 5 years
2 DMO:
• 10 years
1 DMO:
• In place until
disestablished by
ordinance provisions
TOTAL HOTELS & ROOMS IN TBID
TOTAL HOTELS IN TBID
100
90
90
82
TOTAL ROOMS IN TBID
14,000
12,000
12,000
80
10,000
70
60
45
50
47
47
8,000
5,896
6,000
40
31
30
4,000 3,000 3,452
4,077 4,139 4,500
20
10
6
0
2,000
0
City ECity F City City B City City City C
G
H
D
City City City City City City City
E
F
H
G
A
B
D
ROOM TAX REVENUE
$3,500,000
$-
$1,000,000
$500,000
$800,000
$1,500,000
$327,000
$1,900,000
$2,000,000
$2,100,000
$2,500,000
$310,000
$500,000
$255,000
$1,000,000
$200,000
$1,500,000
$800,000
$2,000,000
$914,122
$2,500,000
$3,000,000
$1,250,000
$3,000,000
$3,500,000
$3,500,000
$3,500,000
$4,000,000
$3,300,000
$4,000,000
$3,300,000
Room tax revenue DMO received
for most recent full fiscal year
$918,940
Room tax revenue DMO received
in the last year of the pre-TBID
$City City City City City City City
A H G B D E
C
City City City City City City City City
A H G B F D E C
FUNDING SOURCES:
MUNICIPALITIES/GOVERNMENT ENTITIES
Assessment of DMO Relationship with
Municipalities/Government Entities Post-TBID
Relationship
is much
better than
prior to
TBID, 57%
Relationship
is somewhat
better than
prior to
TBID, 29%
Relationship
is about the
same, 14%
Assessment of Municipalities/Government
Entities’ Satisfaction with TBID
Neutral, 14%
Very
satisfied,
86%
FUNDING SOURCES: HOTELIERS
Assessment of DMO Relationship
with Hoteliers Post-TBID
Relationship
is somewhat
worse than
prior to
TBID, 14%
Relationship
is about the
same, 57%
Relationship
is somewhat
better than
prior to
TBID, 29%
Assessment of Hoteliers’
Satisfaction with TBID
Somewhat
satisfied,
14%
Very
satisfied,
86%
SATISFACTION OF TBID INVESTMENT &
OVERSIGHT
How satisfied do you believe the assessed parties are
with the INVESTMENT OF TBID FUNDS?
How satisfied do you believe the assessed parties are
with the OVERSIGHT OF TBID FUNDS?
Of the six DMOs that responded, five believed
the assessed parties were very satisfied. One
DMO thought the assessed parties were
somewhat satisfied. Reasons listed include:
Of the five DMOs that responded, all five
believed the assessed parties were very
satisfied with TBID oversight/governance.
Reasons listed include:
City B: Regular
feedback during
TPA Commission
meetings
City D: Booked
room nights
City E: TBID
hotels want to
increase
assessment level
from 2% to 3% this
year
City F: BID board
input
City G: Room
night sales
City H: Regularly
communicate
Results
City B: The hotels
and Hotel/ Motel
Association
appoints members
to the TPA
Commission
City D: Execution
of jointly identified
goals & objectives
City F: BID board
input
City E: Due to
hotels wanting to
increase
assessment
percentage
City G: Room
night sales
0
7
Trade show participation
5
Social media engagement
5
Web site development/enhancements
6
Destination marketing development
4
Staffing (people and overhead)
4
Event sponsorship
4
4
Event marketing (specific events)
5
Destination media placement
2
Welcome Center/Visitor Center
2
2
Customer Advisory Boards
3
Frontline training
# of DMOs
PROGRAMS FUNDED BY TBID FUNDS
6
5
4
OTHER
EXPENDITURES
2
1
The TPA was established to increase
group sales through conventions and
sports. Expansion of marketing as
long as it supports sales was allowed.
All TBID revenues go to fund group
sales
Sales and marketing
Festivals and Events Grant Program
NEW PROGRAMS IMPLEMENTED FROM
TBID FUNDS
DMO
NEW PROGRAMS
City B
Expansion of sales efforts, new shows, more staff, and marketing support for
sales were added
City D
All of our sales and marketing programs were enhanced significantly
City E
We have been able to greatly increase our group sales efforts by adding
people and programs. As a result group sales bookings have doubled since
the TBID was formed.
City F
Sports-Events department
City G
Increased advertising and sales programs
RESTRICTIONS ON TBID FUNDS
DMO
RESTRICTIONS
City B
Capital expenses, general overhead, and facilities are not allowed.
City D
The funds must generate more room nights at some point.
City E
Funds are spent on group sales but that can be changed by the TBID board.
City F
Cannot fund salaries
City G
Cannot be used for bricks and mortar, only sales and marketing
DEPLOYMENT OF MARKETING DOLLARS:
City B
PRE-TBID
2% 3%
POST-TBID
1%
3%
1% 1% 1%
3%
5%
3%
5%
5%
10%
5%
50%
50%
12%
25%
15%
Destination
marketing
development
Destination media
placement
Trade show
participation
Event Marketing
Event sponsorship
Frontline Training
Customer advisory
boards
Website
development/
Enhancements
Social media
engagement
Staffing
Welcome center/
Visitor center
Other
DEPLOYMENT OF MARKETING DOLLARS:
City D
PRE-TBID
1%
1% 2%
2%
POST-TBID
1%
5%
1% 2% 2%
4%
7%
9%
13%
48%
10%
50%
20%
22%
Destination
marketing
development
Destination media
placement
Trade show
participation
Event Marketing
Event sponsorship
Frontline Training
Customer advisory
boards
Website
development/
Enhancements
Social media
engagement
Staffing
Welcome center/
Visitor center
Other
DEPLOYMENT OF MARKETING DOLLARS:
City F
PRE-TBID
POST-TBID
2%
3%
10%
10%
10%
10%
50%
10%
57%
28%
10%
Destination
marketing
development
Destination media
placement
Trade show
participation
Event Marketing
Event sponsorship
Frontline Training
Customer advisory
boards
Website
development/
Enhancements
Social media
engagement
Staffing
Welcome center/
Visitor center
Other
DEPLOYMENT OF MARKETING DOLLARS:
City G
PRE-TBID
5%
POST-TBID
5%
5%
5%
35%
5%
25%
5%
20%
10%
15%
25%
20%
20%
Destination
marketing
development
Destination media
placement
Trade show
participation
Event Marketing
Event sponsorship
Frontline Training
Customer advisory
boards
Website
development/
Enhancements
Social media
engagement
Staffing
Welcome center/
Visitor center
Other
PRE AND POST-TBID EFFECTS ON ROOM
TAX
Before the TBID launch
• Seven of eight DMOs
responded that there was
a room tax contract in
place.
• Four DMOs had five-year
contracts; one had a
three-year contract; one
had a one-year contract.
After the TBID launch
• All eight DMOs had
room tax contracts in
place.
• The term length stayed
the same for all DMOs.
• The term length of the
new room tax contract for
one DMO was set for five
years.
TBID APPROVAL MECHANISM
DMO
Approval Mechanism
City A
State enabling legislation; then City Council Resolution
City B
The legislation was passed by state requiring that a petition be created to the
local County Commission to pass local ordinance, then to create the TPA
Commission appointed by the County Commissioners of hoteliers to
determine the allocation of the funds.
City C
City council approval based on support by the hotel community
City D
Majority vote of hotels that reside in the district
City E
Six hotel properties plus a special event venue (that has RVs and cottage
rentals) approved the formation of the TBID. In accordance with state law, it
was approved by the City after public hearings.
City F
State Legislature created non-contiguous district. City established Resolution
of Intent. Public hearing - 1st and 2nd readings. Posted 20 days - went into
effect.
City G
First, we sought buy-in from hotels. Once that was accomplished we did the
paper work necessary and took it to City Council for approval.
City H
State enabling legislation
TOT RATE FOR THE COMMUNITY
7% (City A)
3.3% (City B)
12.5% to 2% TID
fee (City C)
12% (City D)
10% (City E)
1.5% tourism, 1%
BBB (City F)
1% (City G)
TBID ASSESSMENT RATE & FORMULAS
2% per room night
(hotels 50+ rooms);
same exclusions as
TLT, e.g. stays over 30
days, govt. (City A)
2% on gross room
sales (passed
through to the
visitor) (City E)
% of room rate of
occupied rooms
(City D)
$2/room sold/per
night, only hotels
with 40+ rooms
(City G)
$2 for hotels with 60
and more rooms; $1
for those with 59
and less (City C)
$2/per room for all
lodging facilities
with 40 rooms or
more (City B)
$2 per room per
night (City F)
MEASURING TBID SUCCESS
City B
City C
City D
City E
City F
City G
• Confirmed
room nights
booked,
conversions
from website
based upon
market survey
and the
incremental
travel
generated,
visitor spending
and attendees
tracked are used
as metrics
• Room night
generation is the
#1 priority
• Annual reports,
supported by
quarterly
reports with
hoteliers are
shared.
• Shared annually
• Convention
Center Contract
Goals
• ROI
• Economic
Impact
• Room Nights
• TBID
effectiveness
measured by
convention
sales, tourism
room nights and
economic
impact
• Success
determined by
growing booked
room nights on
annual basis
• Everything
tracked is
shared with
hotels
• Shared monthly
• TBID measured
by room night
bookings, leads,
site inspections,
client events
and hotel
engagement
• Success
determined by
more bookings
and site
inspections
• TBID hotels
provided report
on individual
sales
performance
and areas where
hotels
participated;
shares leads,
bookings, site
inspections and
sales calls
• Shared monthly
• Measures are
amounts
collected
through sales,
BBB and BID
taxes
• Taxes also
determine
criteria for
success
• BID and BBB
taxes shared
with assessed
properties
• Shared monthly
• Effectiveness
measured by
room nights
• Criteria of
success is room
night sales
• All measures
shared with
assessed
properties
except for
individual
property
numbers
• Shared monthly
TBID GOVERNANCE
Of the seven DMOs
that responded to the
question, only the
TBID Board governs
TBID funds for five
DMOs. For one
DMO, the TBID
funds are governed
by the TBID and
DMO boards, for one
DMO the TBID
board is a subset of
the DMO board.
City C: Hoteliers who
are also DMO Board
members make up the
TBID Board
City F: 7 hotel owners or
general managers
City D: The County
Commissioners appoint
hoteliers to serve on the
TPA Commission. The
TPA commission is
comprised of hotels
recommended by the
Hotel/Motel Association.
City G: hotels based on #
rooms category + 1 city
council man + 2 CVB Exec
Committee members + 1
general business + CVB
Exec Director
City E: All assessed
properties form the
TBID board.
City H: 5 – 7 hotel owners
or designees with
representation across size of
hotels
OVERALL RATING OF THE TBID FUNDING
MECHANISM
City B --SCORE: 9
City F –SCORE: 9
• “A few increased guidelines would have been in place. We would
probably have increased the rate by at least a dollar.”
• “We have two TPA's within City B County and we'd prefer to have
one.”
City D –SCORE: 10
• “We changed the original TBID from a static rate to a % of room
rate which is more fair and preferable to all parties.”
City E –SCORE: 10
• “The TBID revolutionized our sales operation and we have been
able to generate significant results which is why the TBID hotels
want to renew the program early and increase the assessment. To
my knowledge, we are the only DMO that segregates their TBID
into only group sales, which allows us to define a clear ROI for
those assessed properties. If you engage hotels early in the process
and demonstrate how the TBID can deliver very specific returns
that are beneficial to them, hotels will support this as long as you
continue to communicate with them and show how you are
progressing. I strongly encourage every DMO to pursue a TBID as
long as they follow a process that includes the hotels and that the
effort doesn't appear to look like a money grab.”
City G –SCORE: 10
• “We changed the original TBID from a static rate to a % of room
rate which is more fair and preferable to all parties.”
CityC–SCORE: 8
• “It’s relatively new. Still more growth to determine how to best
take advantage of this.”
CityH–SCORE: 8
• “Each year we conduct a stakeholder report card. Our rating is
continually around 80%.”