sales & revenue

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SALES & REVENUEADVISORY COMMITTEE

October 24, 2019

ALISHA VALENTINE

DIRECTOR OF RESEARCH AND ANALYTICS

RESEARCH UPDATE

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YEAR-TO-DATE SJU ARRIVALSJAN 1 , 2015 – SEPT 30, 2019

Source: AeroStar

+1.6%TOTAL ARRIVALS FROM 2017

4

Source: Smith Travel Research + AirDNA

LODGING REVENUEJAN 1, 2015-SEPT 30, 2019

+11.2%OVER RECORD HIGH IN 2017, DUE TO INCREASED ADR

+84.5%RENTAL INCREASE FROM PREVIOUS HIGH IN 2017

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+3.4%INCREASE IN TOTAL INVENTORY OVER 2017

-12.6%DECLINE IN HOTEL INVENTORY FROM 2017


INVENTORY CONTINUES TO INCREASEJAN 1 , 2015 – SEPT 30, 2019

+60.7%INCREASE IN RENTAL INVENTORY OVER 2017

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LODGING OCCUPANCYJAN 1, 2015-SEPT 30, 2019

INCREASES IN RENTAL INVENTORY COLLIDES WITH INCREASED OCCUPANCY.

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Hotel Demand Rental Demand


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SEPTEMBER DIP QUICKLY REBOUNDING

Source: Smith Travel Research

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FORECASTED GROWTH - 2020Pace of booking for 2020 running higher for all types of business – with group sales coming to fruition.

Source: TravelClick Demand360

29%

21%

34%

13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Total Leisure Group Business

2020 Q1 & Q2 Committed Occupancy (Year-over-Year Change as of Oct. 2019)

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MEDIA PERFORMANCE METRICSADARA

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12


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MEDIA PERFORMANCE METRICSARRIVALIST

April 15Leaves Home inDallas, TXExposed to Media?Unexposed?

April 15Arrives at Luis Muñoz Marín International

Airport

April 16Visits El YunqueNational Forest

Visits Casa Bacardi

April 18

We measure the location change of visitors from the moment they leave home, to where they visit while in Puerto Rico until finally returning home.

April 22Returns Home

April 15Stays at

Four Points by Sheraton

Caguas Real Hotel & Casino

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Origin DMA % Trips Avg. Length of Stay

New York 15.7% 3 Days, 22 Hours

Orlando 13.7% 3 Days, 12 Hours

Miami 12.6% 2 Days, 16 Hours

Tampa 5.9% 3 Days, 15 Hours

Philadelphia 4.1% 4 Days, 5 Hours

Washington Dc 3.8% 4 Days

Atlanta 3.4% 3 Days

Boston 2.8% 4 Days, 4 Hours

West Palm Beach 2.4% 2 Days, 22 Hours

Chicago 2.3% 4 Days

Dallas/Ft Worth 2.0% 3 Days, 17 Hours

WHERE VISITORS COME FROM: BY CITY

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TRIPS OUTWARD TO THE OTHER REGIONSFROM THE GREATER SAN JUAN METRO AREA TO WHERE?

Primary Arrival

Greater San Juan Metro Area

Secondary Trip

North 22.4%

East-North 19.1%

Center 14.6%

South 12.2%

West-North 10.0%

West-South 9.4%

East-South 7.6%

Culebra 2.5%

Vieques 2.1%

Date Range: 9/1/2018 – 8/29/2019 Primary Universal Panel SJ Metro Areas Blended

16Date Range: 9/1/2018 – 8/29/2019 Primary Universal Panel SJ Metro Areas Blended

HOW VISITORS ARE EXPERIENCING PUERTO RICOMORE THAN 50% OF TIME IS SPENT OUTSIDE OF THE GREATER SAN JUAN METRO AREA, WHAT DOES THAT LOOK LIKE?

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27.8 25.615.4

34.4 41.2 35.8 31.315.4

41.4

92.8

114.6 115.6127.4 122.3 121.6 125 123 125.6 129.4

0

20

40

60

80

100

120

140

Avg. Hours in Region Avg. Hours in Puerto Rico

One Day

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DO MORE: Mobile location data shows 8.2% of visitors arriving into SJU visiting El Yunque, 8% visiting La Placita, & 3.4% visiting Casa Bacardi

STAY LONGER: Visitors exposed to DPR media stay 11.7% longer than other visitors, an average of 4 days, 9 hours

SPEND MORE: Visitors exposed to the paid media are paying a higher ADR than average

SOURCE: Arrivalist & ADARA Impact

IMPACT OF PAID MEDIA ON TRIPSActivity by Exposed Consumers Since Campaign Launch April 2019

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VISITOR ENGAGEMENT STUDYDesigned to understand visitors and influence of paid, owned and earned media

RFP issued; 6 responses

Awarded to Destination Analysts

Technology-forward approach─ GPS based targeting to deliver survey to known visitors─ Retargeting known Puerto Rico bookings through Adara platform─ Owned audience targeting

Muelle de la LibertadBoquerón, Puerto Rico

MARKETING UPDATELEAH CHANDLER

CHIEF MARKETING OFFICER

WEBSITE UPDATE

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MoM: September 2019 vs. August 2019

• Sessions are down <1%

• Pageviews down 6%

• Bounce rate up 8%

• Time-on-site down 8%

• Organic visits up 9%

Post-launch conversions and visitor demographics:

• Total of 104,652 referrals to 2,405 tourism businesses and POIs

• 9,302 eNews subscriptions

WEB PERFORMANCE STATS

YoY: September 2019 vs September 2018

• Sessions are down 12%

• Pageviews down 6%

• Bounce rate up 35%

• Time-on-site up 200%

• Organic visits up 245%

SOCIAL UPDATE

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Facebook:

• Followers: 1,035,012

• Interactions: up 10%

• Monthly Reach: up 62.2%

• Monthly Impressions: up 33.2%

Twitter:

• Monthly Impressions: 192,000

WEB PERFORMANCE STATS

Instagram:

• Followers: 111,861

• Average Reach: up 51.5%

• Monthly Impressions: up 25.4%

2ND YEAR ANNIVERSARY APPROACH

“BIENVENIDOS” “THANK YOU”(2018) (2019)

BRAND USAPROGRAM UPDATE

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Promotion: Completion incentive wrapped in UK market. Launches in Germany market in October.

Site Status: DPR’s site is live in all markets which include: Australia, Brazil, China, France, Germany, India, Ireland, Italy, Mexico, New Zealand, South Korea and UK.

─ Global English: usadiscoveryprogram.com/extra-learning/discover-puerto-rico

─ Australia/New Zealand: usadiscoveryprogram.com.au/extra-learning/discover-puerto-rico

─ Germany: usadiscoveryprogram.de/extra-learning/puerto-rico

─ South Korea: usadiscoveryprogram.kr/extra-learning/discover-puerto-rico

─ Brazil: usadiscoveryprogram.com.br/extra-learning/conheca-porto-rico

─ China: usadiscoveryprogram.cn/extra-learning/discover-puerto-rico

─ India: usadiscoveryprogram.in/extra-learning/discover-puerto-rico

─ UK: usadiscoveryprogram.co.uk/extra-learning/discover-puerto-rico

─ Mexico: usadiscoveryprogram.mx/aprende-m%C3%A1s/descubre-puerto-rico

─ Italy: usadiscoveryprogram.it/extra-learning/alla-scoperta-di-porto-rico

─ France: usadiscoveryprogram.fr/extra-learning/decouvrir-porto-rico

USA DISCOVERY PROGRAM

https://usadiscoveryprogram.it/extra-learning/alla-scoperta-di-porto-rico

https://usadiscoveryprogram.fr/extra-learning/decouvrir-porto-rico

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VISIT THE USA SUBSITEStatus:

─ All sites/pages live at https://discoverpuertorico.visittheusa.com

Promotions: Outbrain campaign launched June 20th and runs 6 months.

Site Traffic: June 19 – Sept 30:

─ Pageviews: 320,540

─ Unique pageviews: 299,783

─ Avg Time on Page: 1:34

https://discoverpuertorico.visittheusa.com/

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MICE MARKETING

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ASAE ANNUAL MEETING

20 x 50 Booth

Power Station Sponsorships

ASAE Partner Challenge

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IMEX AMERICA The team served authentic coffee, held a press conference for industry media, conducted appointments with meeting planners.

Connecting with over 400 total contacts, including 30 media representatives.

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CONNECT MARKETPLACE40 x 40 Coffee Activation

175 Appointments

E-Blasts and Social Media Promotions leading up to Connect Marketplace 2019.

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CVENT ADVERTISING

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MICE PR July 2018 to Present

Total Impressions: 73,611,378

Total Ad Value: $1,470,336.46

September 2019

Total Impressions: 955,297

Total Ad Value: $17,859.29

Flamenco beachCulebra, Puerto Rico

LEISURE MARKETING

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ASTALunch & Learn

General Session & Tradeshow Break Sponsorship

10 x 20 Booth

Webinar on December 12

Custom E-Blast to 8,000

Banner Ad on Travel Advisor to

75,000 recipients

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VIRTUOSO TRAVEL WEEK

Upcoming Live Educational Webinars

Learning Module

Incentive

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TRAVEL ALLIANCE

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LEISURE PUBLIC RELATIONS Recent Coverage Highlights:

Insider Travel Report – Insider Video: Discover Puerto Rico Promotes the Recovery of a Destination

TravelPulse – Puerto Rico Works to Improve Perception with Travel Advisors

TravelPulse – Puerto Rico Reveals Record Comeback of Tourism Industry on Anniversary of Hurricane Maria

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CO-OP UPDATEJEAN MALLEY VEGA MILES PARTNERSHIPS

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CO-OP PROGRAM OVERVIEW

Program Includes:

Owned Channel─ Featured Listings─ Leads Program─ Native Display─ Third Party Media

• Banners and Email

Events & Tradeshow

Video

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CO-OP PROGRAM NATIVE DISPLAYProgram Includes:

Full run of site advertising

Banner ad creation with image, business name, brief description and call to action

Link to your business listing on DiscoverPuertoRico.com or your site

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CO-OP PROGRAM OVERVIEWFEATURED LISTINGProgram Includes:

Complete business listing, including: description, images, address, phone number, website, email, hours and amenities, tagged to region and category.

Priority placement on listings page, including sorting by category and region, and featured flag.

Participating partners will be featured into 2020.

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CO-OP PROGRAM LEAD GENERATIONProgram Includes:

When website visitors sign up to receive information about the island, they can request to receive information about your business directly from you.

Image, business name and brief description on subscription page

List of collected leads with direct contact information, including name, email and mailing address, on a weekly basis

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*Professional on-camera talent not included, but available as an add-on option. Our team can also work with talent sourced directly by your business, such as staff members or other locals selected at your discretion, at no additional cost.

CO-OP PROGRAM - VIDEO CONTENTProgram Includes*:

Custom video content plan dedicated to telling your unique story

(1) Music-driven, storytelling-focused high-res video, up to 90 seconds

(1) Full day on-location shoot, up to 10 hours, with 1 videographer

Drone equipment included; usage based on flight regulations at selected locations

Full rights to final video and b-roll in perpetuity

Video to be co-branded with Discover Puerto Rico

3 months ROS native banner advertising driving to video

Buy-up options: on-screen talent, full-day shoot, voiceover/speaking segments & social cuts

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CO-OP PROGRAMPARTICIPATION T0 DATE

10 Featured Listings

2 Leads

3 Native Display

5 Third Party Email Deployments(4 partners each)

─ Passport 10/31 Deployment ─ ePro 10/8 Deployment─ New York Times 11/19 Deployment─ New York Times 12/4 Deployment

9 Video Programs

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An attraction in San JuanSaw pageviews up 99%and clicks to site up 22%in addition to 269 leadssince 7/29

Featured listing since 7/29

CO-OP PROGRAM - SAMPLE RESULTS

A local tour operator Saw pageviews up 153%and clicks to site up 75%


A local hotel Saw pageviews up 493%and clicks to site up 470%


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Another local tour operatorSaw pageviews up 167%and clicks to site up 46%


CO-OP PROGRAM - SAMPLE RESULTS

Another local hotel

Saw pageviews up 32%and clicks to site up 29%


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32% of the hotel bookings happen on the same day of the user’s most recent visit to the website!-Adara Impact data

CO-OP PROGRAM

ED CAREY CHIEF SALES OFFICER

KIM DAROJA VICEPRESIDENT OF SALES

SALES UPDATE

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LEADS GENERATED & DEFINITE BOOKINGSJAN 1 ST- SEP 30TH

793730 761

397

835

187 185 173103

197

0

200

400

600

800

1,000

2015 2016 2017 2018 2019Leads Generated Contracted Events

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LEADS REQUESTED ROOM NIGHTS & CONTRACTED ROOM NIGHTS JAN 1 ST- SEP 30TH

613,071

458,523510,591

284,133

540,891

137,54984,141

112,50253,022

101,704

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2015 2016 2017 2018 2019Requested Rooms Contracted Rooms

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SALES PIPELINE AS OF OCTOBER 17, 2019

Leads

0

50

100

150

200

250

300

350

400

450

Requested Room Nights

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

154

457

158,526

365, 230

$314,097,800 Economic Impact

Jul 2018 Oct 2019 Jul 2018 Oct 2019

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PRODUCTION YOY STATS – FY 2019-2020July 2019

– Sept 2019

July 2018 – Sept 2018

Variance Trends

Definite Bookings 58 16 +263%

Booked Room Nights 28,152 6,176 +356%

Definite Booking Conversion 25% 17% +47%

New Leads CreatedRoom Night Potential

224124,705

13171,364

+71%+75%

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YOY DEFINITE ROOM NIGHTS BY MARKET CATEGORY

Association54%

Corporate43%

Specialty3%

JULY 2019 – SEPTEMBER 2019

Association

44%

Corporate31%

Specialty25%

JULY 2018 – SEPTEMBER 2018

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DEFINITE ROOM NIGHTS BY MARKET SEGMENT JULY- SEPTEMBER 2019

17%12%12%

10%9%

7%5%

3%3%3%3%3%3%3%

2%2%

OtherHi Tech or ComputersSports or Recreational

Health & Medical -…Service

Finance or InsuranceMilitary/Patriotic/Veterans

Arts or EntertainmentDistribution or Wholesale

EducationEngineering

Goverment or Public Admin.Legal

Tourism RelatedConstruction

Cosmetics

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NEW LEAD ROOM NIGHTS JULY- SEPTEMBER 2019

Association25%

Corporate63%

Specialty12%

West & Southwest

19%

Mid-West21%

Mid-Atlantic

13%

Southeast16%

Northeast14%

North East-New England

7%

Caribbean5%

Canada2%

International3%

Category

Region

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NEW LEAD ROOM NIGHTS BY MARKET SEGMENTJULY- SEPTEMBER 2019

16%14%

11%9%

7%6%6%

5%5%

4%4%

3%3%3%

3%2%

Other

Service

Hi Tech or Computers

Education

Sports or Recreational

Finance or Insurance

Pharmaceutical - Corporate

Agriculture

Communications

Management/Consulting

Health & Medical -…

Arts or Entertainment

Manufacturing

Tourism Related

Incentive

Distribution or Wholesale

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NEW CORPORATE LEADS BY REGION JULY- SEPT 2019

1%

2%

25%

21%

8%

13%

11%

16%

3%

Canada

International

W & SW

Mid-West

Mid-Atlantic

Southeast

NEast-New England

Northeast

Caribbean

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NEW ASSOCIATION LEADS BY REGION JULY- SEPT 2019

2%

3%

7%

23%

25%

18%

2%

11%

9%

Canada

International

W & SW

Mid-West

Mid-Atlantic

Southeast

NEast-New England

Northeast

Caribbean

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PUERTO RICO CONVENTION CENTER

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CONVENTION CENTER AND EL DISTRITOHistoric Alignment of Resources

El Distrito as a Demand Driver

Advanced Targeting through MINT─ Convention Commitment Calendar

Procedural Enhancements

Convention Focused FAMS

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MINT PROSPECTING STRATEGYSimilar Convention Centers nationwide

910 organizations fit within the District

1.2 Million room nights

1,316 organizations that fit metro wide.

3.1 Million Room NightsOrganization

StateConventions

CA 316TX 316VA 315DC 292IL 254

MD 134WA 111NY 103

Conventions That Can Be Accommodatedby Room Block Requirements and Commitments

District Only

Whole Island

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El MorroSan Juan, Puerto Rico

LEISURE SALES STRATEGIC INITIATIVES

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Partner Initiative

Consortia/Wholesale/Other• Webinars and/or call center visits underway and scheduled by partner• ALG Fam Dec

Travel Alliance• Education Platform is being translated to Spanish• Education platform has been promoted out three times to Travel Alliance advisors through the

Travalliance Media database of around 96, 000 travel advisors

Luxury • Four Virtuoso webinars have been scheduled. Schedule to be sent to 5 Virtuoso member hotels.

CRM Strategy

• Segmentation strategy completed• Data cleanse completed (38, 955 records).• Accounts compared against TaConnect data base• 14, 726 unique contacts

Group & Leisure Roadshows

• Northeast Sales Mission & Roadshow• Southeast Sales Mission Week & Roadshow• Million Dollar Listing Event around the Prestige Show (West Sales Mission & Roadshow)• Leisure Northeast Roadshow

LEISURE UPDATES

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CRM STRATEGY• Segmentation strategy designed

• Data cleanse completed (38, 955 records)

• Accounts compared against TaConnect data base

• Our database consists of 14, 726 unique contacts

• Ongoing customer acquisition and list cleaning

• Promotional outreach opportunities

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Month Sales Initiatives Market Dates Location

September Northeast Sales Mission & RoadshowGroup/Leisure

September 23-26, 2019

Westfield, NYC, Philadelphia and

New Jersey

October Southeast Sales Mission Week &

Roadshow Group/Leisure

October 14-17, 2019 Atlanta, GA

November Million Dollar Listing Event around the

Prestige Show Group/Leisure

November 3-7, 2019Los Angeles &

San Francisco, CA

November Northeast Roadshow Leisure November 18-20, 2019 Boston, Westchester

and West Orange

SALES MISSIONS

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Month Sales Initiatives Market Dates Location

October Travel Impressions-ALG Leisure October 1-3, 2019

October Ensemble Conference Leisure October 23-27, 2019 Seattle

October AWTA Leisure October 28, 2019 New York City

December Signature Conference Leisure December 2-5, 2019 Las Vegas

TRADESHOWS/INDUSTRY EVENTS

Toro VerdeOrocovis, Puerto Rico

VANESSA FIGUEROA

DIRECTOR DESTINATION SUPPORT SERVICES

DESTINATION SUPPORT SERVICES

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FAM TRIPS FAM Conversion Rate─ December 2018 – 30%, 2 leads still open─ March 2019 - 10%, 4 leads open─ June 2019 – 14% , 5 leads open─ September 2019 – 10 leads open

Next MICE FAM – December 5th – 8th – expecting 15 vetted planners/decision makers─ Apple Leisure – December 4th – 11th─ International FAM – December 10th – 13th

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SITE INSPECTIONS & REFERRALS72 sites FY 2018 – 2019 – conversion rate 57% -Amazing results!

25 sites July – October – conversion rate 20%

Referrals – in 15 months over 600 referrals sent to 116 different partners (doesn't include leads)

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POST SITE INSPECTION EVALUATIONSJULY – SEPT RESULTS

53 surveys between July and September

Hotels visited were:─ El San Juan Hotel─ Caribe Hilton─ Intercontinental─ Condado Plaza─ Hyatt House─ San Juan Marriott─ Sheraton Puerto Rico─ La Concha─ Hyatt Coco Beach─ Wyndham Grand─ St. Regis Bahia Beach

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SURVEY RESULTS & COMMENTS

"Hadassha was very hospitable and a pleasure to work with. the property was beautiful and the plan of action for our event was well thought out."

73


"Hotel was not what I expected. Will not be an option for the program. Site manager was not flexible when I voiced what was important for the group. "

74


"The General Manager of the hotel was spectacular! They made us feel very comfortable being our program to the property".

THANK YOU

sales & revenue

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