Tourism executives look for ways to stretch marketing dollars and lure groups
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Travel executives are seeking ways to do more with less, position themselves for an eventual uptick and identify new trends that the state can tap – from experience seekers to foodies.
They need to innovate, because the tourism industry -- vital to the economy of the state and South Florida -- faces its worst slump in decades, deeper even than the period after the 9-11 attacks in 2001.
In a brief speech Monday, Gov. Charlie Crist offered no specifics for the struggling industry, noting only "Now, more than ever, is the time to promote," and "visit Florida." He also made no mention of the recent $10 million cut in state funds for travel marketing.
But executives found some solace in plans outlined by the state's tourism marketing group, Visit Florida, to stretch a 30 percent smaller budget, especially through the Internet.
Visit Florida is turning more to Facebook, Twitter and social networking groups for promotions and trimming costly TV spots. It is targeting efforts more to Florida's top seven source markets including New York, Atlanta and Toronto. And it is deepening ties with business, working more closely with Disney and other major attractions and even teaming up with retailers such as Bealls to showcase giant photographs of Florida destinations in local stores, said Chief Marketing Office Will Secombe.
Executives recognized that neither government nor business has the cash today to boost marketing the way they did after 9-11, and they questioned whether travelers will ever return to the free-wheeling spending they did before the recession.
"We're training consumers to wait for the last-minute and best deal. And even if that's not a permanent change, it will be a tough one to recover from"' said Visit Florida Chief Execuive Chris Thompson.
New numbers from Smith Travel Research show the depth of the challenge in South Florida.
Through July, Broward County hotels saw occupancy fall 6 percent and average daily rates 13 percent. Revenue for available room – the industry benchmark -- dove 18 percent to $78 a day.
Palm Beach County hotels fared even worse. Through July, revenue per available room plunged 26 percent to $85 a day, Smith Travel said.
Jorge Pesquera, president of the Palm Beach County Convention and Convention Bureau, said his agency has been seeing a slowdown in the monthly declines, thanks to aggressive promotions that include a final-night stay at $19.09 and rebates up to $4,909 off large meetings booked by Sept. 30. The agency also is slowly tapping $2 million in extra county funding for promotions.
"I'm feeling most optimistic than I was this winter," Pesquera said. But he still sees no recovery until next year – once business travel and the meetings business improve.
Nicki Grossman, president of the Greater Fort Lauderdale Convention and Visitors Bureau, sees fewer tourist dollars until jobs recover and families spend more freely.
"Right now people are still congratulating themselves on how much they save," Grossman said.
In northeast Florida, hotelier Richard Goldman knows the pain first-hand at the 600-unit Amelia Island Plantation. His resort has laid off about 250 of its 1,100 workers since autumn, as its groups and meeting business plunged – especially in the wake of government officials criticizing resort meetings by leaders of companies receiving government aid.
"They're not hurting the fat cats. They're hurting the Joe Publics," said Goldman, senior vice president at the resort.
Goldman said groups used to account for up to 70 percent of his hotel's business and likely will fall to half this year. Rates are down too, by about 15 percent to an average $157 a night, he said.
Not all travel businesses are foundering.
Florida Vacation Auction.com of Fort Myers, is growing by tapping into travelers' desire for bargains. It now offers as many as 50 auctions a week on lodging packages and attraction tickets, almost double the tally last year, said Chief Executive Sal Dickinson, a former marketing chief for hotel groups. Discounts range up to 80 percent off retail.
Yet even Dickinson recognizes "there's only so low you can go" and stay in business "to make payroll and keep the lights on." He expects deep discounting will bottom out, perhaps next year, as business and group travel rebounds and hotels stop focusing so heavily on leisure guests to fill empty rooms.
That leaves many at the governor's conference to adjust to what economist and trend-spotter Richard Florida calls the "Great Reset," accelerating the transformation from an industrial to a "creative" society. He finds the Sunshine State well-positioned to cater to the growing creative class that seeks new experiences and areas with diverse people.
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