New York City Travel & Tourism

New York City Travel & Tourism Lauren Casarona Udit Sinha Caitlin Dumpe Maggie Heithaus Ryan Quinlan Nick Kossen

1 Table of Contents

Executive Summary Competitive Analysis Las Vegas Tourism San Francisco Tourism Analysis: NYC Tourism Creative Brief Media Objectives and Target Media Chart Total Budget Media Chart Showing Overall Media Schedule Flighting Chart

2 Executive Summary NYC & Company is New York City’s official marketing, tourism and partnership organization. Their mission is to partner with community businesses and organizations to maximize travel opportunities and tourism experiences throughout the individual boroughs of New York City. Their goals include a higher level of economic prosperity for the local communities, as well as showcasing the dynamic experiences that are provided in New York City. New York City tourism stands behind a commitment to fiscal accountability and works to stay within their $15 million dollar budget for summer, fall and winter tourism. New York City markets through various mediums including digital, TV, print and out of home advertising that is used to maximize impressions to the target.

Our media plan focuses on appealing to Generation X parents looking for entertaining opportunities; and young, millennial graduates that are new to the workforce and searching for unique experiences fitted to their individual tastes. The majority of our efforts focus on a target range within 600 miles of New York City as domestic drivers represent the largest portion of annual visitors to the region. Since our target audience is comprised of medium to highmedium income working adults, all of our selected media platforms will appeal to this demographic and be located in suburban midhigh income areas.

By showcasing New York City as a sophisticated destination for fashion, pop culture, art and music, we’re able to position New York City as a family friendly vacation that is affordable to a wide-range of people. By pairing up with hotels in the city, NYC & Company is able to provide extensive ad packages that make it easy for frequent travelers and families alike to find vacations to the city. Promotional branding and effective packaging suitable to the individual experience will provide a lasting form of progress that sets the cities tourism expectations above the rest and will create a level of difference between other hotel establishments.

The effective bed tax that’s applied to most hotels in the New York City limits provides tourism opportunities a healthy and consistent amount of public funding. The amount collected in taxes provides the tourism agency comfortable $30 million advertising budget that will spread throughout a variety of mediums, the majority of most being digital and online. Along with a using a heavy

3 focus on digital, the company will set aside a large twenty-percent portion of the budget for television advertising during peak hours. A heavy focus on television impressions has the lasting power, if done correctly, to impact three times the initial viewers.

Our media plan places heavy periods of advertising in early March, that run for five to seven weeks, then taper off until mid-September. Most vacations are planned three to six months in advance.The highest periods of tourism to the city are during May, June, July and August. Launching advertising campaigns during March and then again soon before the holidays, assures that the audience reacts more positively to the ads. During the winter months, which are accompanied by decreased levels of tourism, New York City is decorated for the Christmas holiday promoting sights such as the Macy’s holiday window displays and ice rinks that create entertainment opportunities unique to the city. Focusing media efforts on advertising campaigns versus promotional content is most effective in creating new impressions because New York is already a common household name. Advertisements designed to highlight the cultural significance of New York City will remind the consumer of the city’s rich history and prompt visitors to explore less frequented areas in the city.

Combining these several components together outlines the strategy proposed that NYC & Company would use to promote local tourism. This media plan will continue to bring steady growth and innovation to the city of New York.

Competitive Analysis - Las Vegas Convention & Visitors Authority SWOT Analysis

STRENGTHS: WEAKNESSES: •Globally branded as ideal “fun” vacation spot •Landlocked •Allows a wide range of entertainment •Can be difficult to provide smallscale entertainment •Generally favorable vacation weather •Discouraging to those with children, not always a kid friendly •Entertainment for all ages, though primarily aimed at older •Expensive demographics •Hot and humid during busy travel times •”What Happens Here, Stays Here” famous tagline

OPPORTUNITIES THREATS •Travel & planner apps now being widely used •Cities that have access to large bodies of water •Tripadvisor brands city as great/safe place to travel •Vegas climate is arid desert outside the city •Support from businesses and casino’s •Agencies that focus on family entertainment as well appeal to family •Have virtual tours and scanner discounts vacations •Cities that have lower costs of visiting, with attractions that don’t require $$ •No natural monumentsareas of note are at least 40 minutes away

5 Target Market Demographic-Psychographic Profile Based on research collected, the Las Vegas Tourism Bureau focuses on attracting first time visitors from a wide range of geographic locations. The most common age group of visitors to Las Vegas are men between the ages of 35-50 with very few families targeting Las Vegas as a family-friendly vacation. Costs for entertainment and lodging are incredibly high and attract wealthier men along with middle-income couples. 64% of visitors to Las Vegas used the internet as a means to plan their trip. In 2013, 58% of domestic visitors to Las Vegas arrived by ground transportation in comparison to 42% arriving through air travel. Those looking to experience Las Vegas are more often single and looking for an exciting and thrilling vacation that will keep them entertained. Visitors are searching for laid back experiences requiring little physical exertion and a pampered experience.

Geographic Sales/Product Availability The top ten feeder markets that filter people to the city of Las Vegas (by air), in order, are Los Angeles, San Francisco, New York City, Chicago, Denver, Seattle, Dallas, Detroit, Phoenix, and Houston. The top ten states that send people to Las Vegas are California, Texas, Washington, New York, Illinois, Florida, Colorado, Arizona, Michigan and Pennsylvania.

Length of Purchase Cycle The most popular time to visit Las Vegas is from March through May with over 3 million visitors. Milder temperatures are a key factor impacting the increase in travelers to the city during this time.

Position in Consumer’s Mind Visitors travel to Las Vegas seeking adventure. The city is seen as mysterious and exciting and tourists go with hopes of having a wild and unforgettable time.

Dominant Advertising Appeals Las Vegas is most appealing to those looking for adventure and fun. The city attracts an older demographic that enjoys partying and the mystery associated with the city’s attractions. . Social Appeal: Consumers are attracted to socializing at Las Vegas’ casinos and bars with friends and strangers. Sex Appeal: Las Vegas’ famous tagline “What Happens Here, Stays Here” combines the excitement as well as the exclusivity of the city.

6 Entertainment Appeal: 2135 year olds have always been interested in spending a few days in Sin City to experience the famous casinos.

Relative Importance of Advertising VS. Promotion Promotion is more important than advertising for Las Vegas tourism because the city is already a very well-known and popular tourist destination. Promotion will be important to promote the brand and keep different tourist attractions top of mind amongst competitors.

Advertising Budget/Share Category Voice Las Vegas spends an $13.5 million on their advertising budget in 2015. The brand and tagline is most well-known and established and also does the most advertising compared to the other two cities.

Major Media Used and Budget for Each Heavy television commercial usage and Las Vegas-area radio spots are the main forms of media used. Social Media platforms including Twitter, Facebook, Pinterest and Instagram are beginning to see heavy amounts of engagement to reach younger demographics.

Start of Advertising Budget Year Las Vegas begins their advertising budget year on July 1st.

Name of Advertising Agency Handling each Brand Las Vegas tourism is handled by R&R Partners.

Total Billings of Each Agency Billings for R&R Partners for 2015: $18 Million

Competitive Analysis - San Francisco Travel Association SWOT Analysis

STRENGTHS: WEAKNESSES: ● Consistently warm weather yearround ● High cost of living compared to national average ● Strong network of hotel cooperation ● Expensive airfare ● Effective tourism campaigns ● Public transportation is necessary ● Pristine beaches ● Proximity to natural fault line ● Rugged terrain for outdoor enthusiasts

OPPORTUNITIES: THREATS: ● Marketable beachfront opportunities ● More affordable cities on the West Coast (San Diego, ● Cultural hotspot of the West Coast Sacramento) ● Able to accommodate a variety of budgets ● International hotpots hosting stronger currencies ( Hong Kong, ● Extensive food culture Tokyo, Paris) ● Popular among younger generations ● Neighboring cities that possess easier forms of travel. ● Agency’s such as New York using larger ad budgets ● Appealing to unrepresented subcultures

Target Market Demographic-Psychographic Profile According to an Arts and Culture survey done by San Francisco Travel, cultural travelers take more trips, are somewhat younger and moderately more affluent than noncultural travelers. While their interests vary, "historic sites and attractions" ranked highest among

8 10 arts and cultural attributes considered when selecting a destination. Las Vegas and Los Angeles are San Francisco's two biggest challengers, with L.A. showing real competition for "theater and performing arts" and "aquariums, zoos and wild animal parks.” More than one in four people surveyed traveled specifically to visit a garden or park, watch a live music performance and/or attend a festival or special event. San Francisco is rich in assets, allowing them to position the city as a cultural destination and capitalize on the varied experiences and activities cultural travelers seek. Therefore, the target market that San Francisco is trying to reach is young, cultured millennials looking to experience a variety of activities that further their cultural experiences such as theater, arts, parks, and live music. Although this target market is young, they still have enough disposable income to partake in these activities. The average household income of those that occupy San Francisco hotels is $118,000.

Geographic Sales/Product Availability The top feeder markets into San Francisco include New York, Los Angeles, Chicago, Washington, Boston, Seattle, San Diego, Portland, Sacramento and San Francisco Bay Area (outside of SF). An average of 69.2 percent of San Francisco visitors arrive to the city by air.

Length of Purchase Cycle The most popular time to visit San Francisco is June through October when the weather is most ideal for travelers. San Francisco hotels are at an average of 87-92 percent full occupancy during these months. Weather plays a major factor in consumers’ purchasing decision because of the common outdoor nature of consumers visits. San Francisco’s months with the clearest skies and most moderate temperatures are June through October, so it tends to draw more people during that time. Precipitation rates are 5x higher during the winter months, so people tend not to visit during that time. San Francisco also relies largely on convention tourists, particularly in the technology sector, so the tourist numbers spike during those times as well.

Position in Consumer’s Mind San Francisco is seen as a tourist destination for the whole family. The city provides a wide range of outdoor activities and attractions for all age demographics.

Dominant Advertising Appeals San Francisco is appealing for a wide range of audiences with different interests. The city offers a different experience for whatever a tourist might be seeking.

9 Family Appeal: A family friendly tourist destination Social Appeal: Sports, music festivals and outdoor activities Exclusivity Appeal: An expensive tourist destination

Relative Importance of Advertising VS. Promotion Promotion is more important than advertising for San Francisco tourism because the city is already a very well-known and popular tourist destination for travelers. Promotion will be important to promote the brand and keep different tourist attractions top of mind amongst competitors.

Advertising Budget for Parent Company and Brand

Advertising Budget/Share Category Voice San Francisco spends an estimated $14.4 million on advertising. San Francisco has the smallest category voice amongst the New York City and San Francisco competition, choosing to typically advertise with the entire state of California as opposed to San Francisco specifically.

Major Media Used and Budget for Each San Francisco is on Facebook, Twitter, Google Plus and TV. The San Francisco Visitors Bureau does not publicize the budget for each medium used.

Start of Advertising Budget Year San Francisco begins their advertising budget year on July 1st.

Name of Advertising Agency Handling each Brand Advertising for San Francisco tourism is handled by the San Francisco Visitors Bureau.

Total Billings of Each Agency Total billings for San Francisco tourism cannot be found.

Brand Analysis - New York City Tourism SWOT Analysis

STRENGTHS: WEAKNESSES •Branded as the “melting pot” of America •Winter travel can be difficult; NYC experiences all four seasons •Has cultural significance as the picturesque American city •Volume of visitors can cause congestion and overcrowding •Tourism efforts support local business/economy •Can be difficult to provide smallscale entertainment •Easily accessible through all modes of transportation – air, rail, water, •Annual growth rate creates internal departmentalization problems wheels •Victim of “tourist season” – summer months over crowded •JFK busiest Intl airport in US – 2014: 52.3 million visitors

OPPORTUNITIES THREATS •9% used traveler provided website Growing cities in the midwest – Denver, Cincinnati •Own the online tourism experience Agencies located in southern states have warmer •Virtual tours, scanner discounts Rising cost of food and living in New York City •The “face” of American tourism –US experience Limited space for touristscrowded •Domestic travelers account for nearly 80% of visitors in 2013 •Visitors with personal access to travel (cars) and within a 2 days drive, (5 hour flights). •Mobile forms of advertisementsall modes of travel. Primarily air travel.

Target Market Demographic-Psychographic Profile

11 New York City attracts two different target demographics. The city has something for everyone and has the opportunity to position itself as the best destination for Generation X Parents and Millennial Graduates to experience something new and exciting every time they visit the city.

Geographic Sales/Product Availability The cities of Boston, Philadelphia, Washington D.C and the lower east coast of Florida are the biggest markets that New York City Tourism appeals to. A lot of transplanted New York residents retire/relocate to Florida, so they make frequent trips back to New York. Consumers that live in these more expensive cities have more disposable income to travel, yet are still close enough to not necessarily have to fly. Once you reach consumers in the MidWest and Western regions of the United States, it becomes costly and more of a hassle to fly or drive crosscountry for a visit to New York City.

Length of Purchase Cycle New York City draws the most visitors during the holiday season, from Christmas to New Year’s, and also during the summer months. New York holds major events such as the Macy’s Day Parade for Thanksgiving and the historic and iconic dropping of the ball in Times Square on New Year’s Eve which alone are huge draws to the city. In between these events, New York City is decorated for the Christmas holiday promoting sights such as the Macy’s holiday window displays and ice rinks set up across the city. New York City during the holiday season is iconic and an experience that has been positioned as a necessary experience for people of all ages. The summer months are also an extremely popular time to visit New York City due to the warmer temperatures and relaxed work environment. The natural mode of transportation in the city is to walk as much as possible, so warmer weather is essential for tourists. The hotel occupancy rates in New York City remain relatively consistent throughout the entire year, with the exception of the bitterly cold months of January to March.

Position in Consumer’s Mind New York City tourism positions itself as the premier and sophisticated venue for fashion, pop culture, art and music Visiting NYC is seen as a ‘riteofpassage’ for domestic tourists and is a location where tourists can experience something new and exciting every time they visit.

Dominant Advertising Appeals

12 New York City is appealing to people of all demographics. The city is seen as exciting and fresh with a wide range of different people and activities. Tourists enjoy the big city feel that offers both sightseeing and hidden local favorites. Family Appeal: A family friendly tourist destination Social Appeal: Sports, music festivals and outdoor activities Exclusivity Appeal: An expensive tourist destination with oneofakind tourist attractions/events/festivities

Advertising Budget/Share Category Voice New York City spends an average of $41 million on summer, winter and fall advertising.

Major Media Used and Budget for Each New York City is on Facebook, Twitter, Tumblr, Pinterest, Instagram, YouTube, and TV proving their strong digital presence. They also have Taylor Swift as the city’s welcome ambassador. BBDO does not publicize the budget for each platform used.

Start of Advertising Budget Year San Francisco begins their advertising budget year on July 1st.

Name of Advertising Agency Handling each Brand BBDO is the primary agency handling advertising for New York City.

Total Billings of Each Agency Total billings for New York City tourism cannot be found.

Creative Brief

Key Consumer Insight For parents and graduates, New York City has more enriching experiences than any other city.

Communication Objective To persuade busy travelers that New York City has more unique and enriching opportunities to experience new things with friends and family members and to position New York City as the top tourist destination.

Creative Strategy (brand positioning) More possibilities than your average city.

Promise (benefit to the consumer) New York City can provide an opportunity for our target to do something they have never done before.

Tone of Voice of the advertising: Exciting, inspirational, dynamic, fresh, friendly

Tagline: One city, infinite moments.

Media Objectives & Target Target Audience Our target audience is 18--44 year olds who travel for leisure. We have split our audience into two segments:. Gen X Parents College educated and successful, male and female 35-44 year olds who are married with children typically 6-17 years old. They are looking to sightsee and experience new things. They enjoy learning more about cultures and they stay informed in world news. They want to find a good experience for their family and are also tech savvy and know how to find the best deals online.

Millennial Graduates Post graduated, single male or females, from 18-34 that are traveling with friends. They are frugal spenders looking for entertainment and a way to experience the latest trends. They are tech-savvy, on a budget and interested in pop culture likely still renting an apartment with roommates. They are looking to have fun with their friends, but not necessarily interested in seeing the typical tourist attractions.

Our target segments can be further reclassified as: Heavy Users: Frequent travelers who take 3 or more vacations in a year and are looking for new experiences each time. Users of Competitive brands: Vegas: Travelers looking for adventure. San Francisco: Travelers looking for outdoor relaxation time

Media Budget We propose a $30 million budget because in 2014, budget was $41 million for summer, fall and winter tourism. With two 3month campaign cycles, this new budget will sufficiently pay for the summer and fall tourism advertising and is also comparable to our competitors’ budgets.

15 Campaign Cycle Two 3month campaign cycles from March to May and June to August. The first cycle will target tourists who are planning a vacation during Summer. Research shows that August is the peak travel time for New York City. By beginning the campaign March, advertisements will be seen by our target right when they are scheduling their trips.

The second cycle will target tourists who intend to travel during Fall. According to our research, October is the busiest month during the Fall Season because the weather is good and the holidays haven't begun yet.

National, Regional or Local Campaign New York is already a popular spot for travelers. There is no geographic area where the brand is more less known, therefore it is recommended New York City have a National campaign.

Geographic Differences in Media Weight Through our research of the brand, we found that males and females from the North East and South are traveling to New York most often. With this in mind, we will focus most of our advertising in these areas where travelers are most common and the New York City brand is most relevant.

Reach (Frequency and GRP Targets) The best time of day to advertise on TV/cable to our demographic is between 610pm because this is when both the Gen X parents and Millennial graduates are home from work and watching their shows, sports and the news.

Recommended Media TV: Local and network cable Print: Sports, fashion, celebrity magazines and national/local newspapers Digital: YouTube, Hulu, Pandora, Spotify, Website our target frequents OOH: malls and billboards in wealthy suburban areas, subway stations, Elevators in hotels and business districts, downtown locations, Two Essential Media Platforms TV is very important because it is a source of both news and entertainment. It has the widest reach because almost every household of our target demographic has a TV.

Digital media is also very relevant because our target stays connected via computers, laptops and smart phones. they are tech savvy and visit websites that host content relevant to their tastes and lifestyles.

Seasonality of Media Pattern Our media platforms will contain different media depending on the time of year and audience reading each platform. Since our target audience is comprised of mediumhigh income working adults, all of our selected media platforms will appeal to this demographic and be located in suburban high income areas. Advertising will be heaviest from March to May because our audience is traveling the most during the summer and spends at least 36 months planning their trip. Our spots and print ads will be relevant to current events and holidays during those months. For example, during March Madness we will focus more heavily on TV advertisements. However, we plan to focus on digital advertising heavily throughout the entire campaign.

Timing of Individual Media Related to Purchase Decisions or Patterns According to MRI our target makes the decision to travel to a certain destination 36 months prior to trip. Therefore, we will time our creative executions to coincide with their decision making process.

Importance of Advertising and PR/Promo This campaign will focus more on advertising than promotions. This is not a repositioning campaign, rather a reminder that New York City is a happening and hip destination; a place where our target demographic can experience new things that they have never done before.

Justification of Media Plan Based on the current trends of travel and leisure, our media strategy will put the New York brand in the consideration set of our target and influence their decision making process. The client can trust that when we place our creative executions on the platforms (TV, social media etc) that our target uses, it will resonate with them.

Media Chart Showing Total Budget for Each Medium Media Budget

Media Flow Chart for Each Medium

Media Flighting Chart for Each Medium