Tag Archives: marketing dollars

Flagstaff, Scottsdale CVB - AZ Business Magazine January/February 2012

Flagstaff And Scottsdale CVB See Solid Returns On Investment

Flagstaff Convention and Visitors Bureau and the Scottsdale CVB see dividends from marketing dollars spent

The old saying, “You have to spend money to make money” is especially true in the case of Arizona tourism. Two cases in point are the Flagstaff and Scottsdale Convention and Visitors Bureaus (CVBs). They can quantifiably demonstrate that investing in tourism creates a return.

“We’ve always done a good job of marketing Scottsdale,” said Rachel Sacco, president and CEO of the Scottsdale CVB. “We know it’s the right message because visitors are responding.”

The Scottsdale CVB’s 2010-11 annual budget is $9.7 million and generates $31 in economic impact for every $1 invested in the organization. The Flagstaff CVB has a budget of $1.5 million and helps spur an economic impact of $501 million for the region.

Much of the funding for tourism marketing comes from visitors themselves.

In March 2010, Scottsdale voters passed a 2 percent increase in the city’s bed tax, bringing it to 5 percent. This, combined with an increase in occupancy, led to a 79 percent jump in bed-tax collections from 2009-10 to 2010-11. Half of the new monies support capital projects and special events; the other half supports marketing efforts.

In Flagstaff, the CVB is a division of the city and is fully funded by a portion of the 2 percent “BBB” tax, which stands for “bed, board and booze,” or hotels, restaurants and bars. It generates roughly $5.2 million, and the CVB gets 30 percent of that. The city council allocated an additional $250,000 in marketing dollars to the CVB from March to June 2009 from the city’s Economic Incentive Fund. Flagstaff CVB director Heather Ainardi said that investment helped Flagstaff see a slight bump in April and May of 2009 and prevent big tourism losses in the long run.

“When the rest of the state had double digit declines (in tourism indicators),” Ainardi said, “we were only having minor 2 to 3 percent drops.”

Average daily rates from hotel bookings and revenues per available room were up in 2011 in both Flagstaff and Scottsdale. Occupancy also was up in Scottsdale. And independent studies showed 91 percent of all people who received a Scottsdale visitors guide either made a booking or visited Scottsdale within the next year. Sacco attributes the high number to target marketing.

First, they pinpoint areas that have always had a high interest in Scottsdale: chilly places such as Canada, Minnesota, San Francisco, Chicago, Denver and parts of the East Coast.
Second, they invest in knowing their customers: What do they read? Which activities do they like?

“We won’t send someone who’s interested in art a message about sports” and vice-versa, Sacco said. “We know what messages resonate with them.”

As one result of this targeting, sports bookings have increased 160 percent, she added. Groups and meetings contribute $64.8 million in economic impact.

The Scottsdale CVB should see their budget increase further this coming year to $10.5 million, which hopefully will mean even more of an uptick in tourists.

“The less ability we have to communicate to visitors why they should come here, the less revenue that is brought in,” Sacco said.

For more information about the Flagstaff CVB or the Scottsdale CVB, visit the following links:

flagstaffarizona.org
scottsdalecvb.com

Arizona Business Magazine January/February 2012

Financial Information

Properly Understanding Financial Information In The Media

Our society is constantly overwhelmed with financial information either by television, internet, cell phones or print media. Deciding which is best and most accurate can be very daunting for the average investor. In addition to choosing the right media source, investors also have to apply that information to their financial situation. In many cases, this can become a full time job, very challenging and requiring constant monitoring.

Minimal education is provided to us by our parents, peers or in school about how our financial system works. However, since it is an ever changing industry the information we have learned in the past may not be relevant today. Therefore, it is critical to understand what reliable information is and what may be misinformed facts.

These media sources are a critical role in today’s society but also come with some information risk. Everyone’s interpretation is different and we must realize that a percentage of the information is purely entertainment. In today’s environment, the media is influenced by marketing dollars, and understanding what may be accurate information and what may not is important to understand.

With tons of information about the financial industry — that (in many cases) is indirectly affected by other sources such as politics, government, other countries, weather, market shifts, innovations and technology — being properly informed and avoiding the “junk” information can be difficult, but must be done. As investors, we must not only focus on the investment, such as a stock, bond or mutual fund, but consider the strategies in place to account for current events.

Also, once an investor has decided on an appropriate investment strategy he or she will then manage the investments or work with a financial professional. Information is key and deciphering that information according to a situation can be difficult when creating an appropriate investment strategy as well as making changes within a portfolio as needed based on economic shifts. Many times, working with a financial professional can help investors use up to date, reliable information to meet financial objectives.

For more information regarding understanding financial information, visit jacobgold.com.

 

Securities and investment advisory services offered through ING Financial Partners, Inc. Member SIPC. Jacob Gold & Associates, Inc. is not a subsidiary of nor controlled by ING Financial Partners, Inc.

This information was prepared by Michael Cochell of Jacob Gold & Associates Inc. and is for educational information only. The opinions/views expressed within are that of Michael Cochell of Jacob Gold & Associates Inc. and do not necessarily reflect those of ING Financial Partners or its representatives. In addition, they are not intended to provide specific advice or recommendations for any individual. Neither ING Financial Partners nor its representatives provide tax or legal advice. You should consult with your financial professional, attorney, accountant or tax advisor regarding your individual situation prior to making any investment decisions.