HomeMy WebLinkAbout3/16/2005 - STAFF REPORTS (22) DATE: March 16, 2005
'TO: City Council
FROM: Jim Dunn, SMG via City Manager
SUBJECT: Convention Center Pre-opening Marketing Program
RECOMMENDATION: That the City Council approve the Minute Order No.
approving the Pre-opening Marketing budget for the Palm Springs Convention Center.
SUMMARY:
A separate marketing budget has been established to specifically market the expansion
of the Palm Springs Convention Center. A recommended revised budget is attached for
approval. This budget creates a new line item, "Incentive Program" to establish the
ability to offer incentives to specific groups that meet certain minimum criteria with
regard to number of attendees and hotel room nights generated for the City. It is
recommended that flexibility to move funding between line items be permitted to
respond to marketing opportunities which might arise.
BACKGROUND:
SMG initiated a pre-opening marketing effort in May of 2003 to assist in the launch of the
,.new" convention center. It was initially anticipated that there would be approximately
$1 million set aside for pre-opening marketing and promotion. This amount was
originally to come from the expansion project funding and a contribution from SMG. To
date SMG has contributed $400,000 and the City $447,000.
The attached budget summarizes the funds expended from May of 2003 through
January 2005 as well as the remaining budget for February through December 2005.
Based on input from stakeholders, staff is recommending that the budget be revised
and some of the funds set aside to help fund discounts to groups that meet certain
minimum booking criteria (See attached booking criteria). The amount proposed for this
incentive program is $135,000. The return on investment of the program may be
measured by the impact of the specific groups that are part of the program. Thus far
groups identified to participate in the program represent approximately 14,000 hotel
room nights, $300,000 in TOT, and total spending by attendees of $5.5 million. The
incentive provided for these groups totals $55,000 of the $135,000 budgeted.
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Total marketing funds still available to fund this budget are $452,728.
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APPROVER
City Manager-
Attachments:
Budget
Booking Criteria
Palm Springs Convention Center
Pre-opening Marketing Budget
Revised January 2005
Original Budget Proposed
Category Jan 2005 - Dec 2005
Advertising Total Spent 166,033
Total Available 98,414 20,000
DC Sales Office Total Spent 88,484
Total Available 36,526 0
Preopening Events Total Spent 28,623
Total Available 186,314 180,000
Professional Services Total Spent 63,920
Total Available 14,508 25,000
Public Relations Total Spent 16,043
Total Available -593 12,000
Sales Collateral Total Spent 9,576
Total Available 43,596 40,000
Direct Mail Total Spent
Total Available 15,000 10,000
Tradeshows Total Spent
Total Available 8,500 10,000
Website Revision Total Spent 21,594
Total Available 3,606 20,000
Incentive Program Total Spent
Total Available 0 135,000
Pop-up Opportunities Total Spent
Total Available 46,856 728
Total Total Spent 394,272
Total Total Available 452,728 452,728
F:\USERS\jmd\DEPTS\SALES\Expansion Marketing\Pre-opening Budget Proposal Revised Feb 2005 xls Page 1
Recommended Criteria for Convention Group Incentives
This incentive program is designed for groups that utilize the Convention Center for
meetings. The prograin would allow for all or a portion of a group's convention center
rental to be paid from marketing fiords. This would be in addition to any other
convention center discounts offered based on other revenue sources generated by the
group (i.e. food and beverage). All rental pricing for groups considered under this
program would be based on the convention center rental rate offered to non-profit groups.
Hotels may also offer a rebate to offset group expenses.
Group Profile
1) Minimum 800 Rooms Peak Night and 2,000 Room Nights Total:
Assurning the following room block commitments, groups considered for the program
would maintain room blocks beyond just the convention hotels closest to the Center:
Wyndham 350
Hilton 200
Hyatt 75
Spa 75
Courtyard 50
Total 750 commitable room nights on group's peak night
2) Meeting Dates:
Group must hold its meeting within 24 months.
3) Time to Commit:
Group must sign convention center contract within 90 days of receipt of incentive offer,
otherwise offer becomes void and funds are made available to another group.
Exceptions to the above criteria may be made based on review of the current outlook for
particular time periods, groups meeting in 2005, overall economic impact on the City,
etc. Groups recommended for incentives will be reviewed with stakeholders.
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MINUTE ORDER NO. 7650
APPROVING THE PRE-OPENING MARKETING
BUDGET FOR THE CONVENTION CENTER AS
AMENDED BY NOT ALLOWING TRANSFERS OF
FUNDS INTO THE INCENTIVE PROGRAM
WITHOUT CITY COUNCIL APPROVAL.
I HEREBY CERTIFY that this Minute Order, approving the Pre-Opening
Marketing Budget for the Convention Center as amended by not allowing
transfers of funds into the Incentive Program without City Council approval,
was adopted by the City Council of the City of Palm Springs, California, in a
meeting thereof held on the 16th day of March, 2005.
JAMES THOMPSON
City Clerk
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