Explore Minnesota Tourism: Industry Site

Each year, Explore Minnesota Tourism creates a strategic plan and provides an annual report of our progress on that plan.

Recent Annual Reports

2008 Annual Report
2007 Annual Report
2006 Annual Report

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Explore Minnesota Tourism 2009 Strategic Plan

STRUCTURE AND BUDGET
CONSUMER ADVERTISING
EXPLOREMINNESOTA.COM
INTERACTIVE MARKETING
TECHNOLOGY INITIATIVE
CONSUMER PUBLICATIONS
COOPERATIVE MARKETING
GROUP TOUR MARKETING
INTERNATIONAL MARKETING
MEDIA RELATIONS
TRAVEL INFORMATION NETWORK
GRANT PROGRAMS
EDUCATIONAL PROGRAMS AND INDUSTRY COMMUNICATIONS
PUBLIC POLICY
RESEARCH

INTRODUCTION
Vision: To be the most effective travel marketing organization in the United States
Mission: To promote travel to and within the state of Minnesota
Goals:

1. To increase the number of resident and nonresident travelers in Minnesota,
2. To grow receipts/sales of tourism in Minnesota,
3. To generate increased state and local tax revenue from tourism, and
4. To increase leisure and hospitality employment in the Minnesota.

STRUCTURE AND BUDGET
To fulfill its mission and achieve its strategic objectives, Explore Minnesota Tourism is organized into four areas: Communications, Industry Relations, Marketing and Research, and Operations and Consumer Services.

Communications: Media relations, publications and electronic media are all key to Explore Minnesota Tourism marketing. Media relations programs generate positive media coverage of Minnesota travel opportunities and of the state’s tourism industry. A large photo library provides the media with visual images of the state. A series of publications, many developed through publishing partnerships, promotes Minnesota destinations and activities. This unit is also responsible for the comprehensive Web site www.exploreminnesota.com and offers consumers a series of e-mail newsletters.

Marketing and Research: This area includes advertising and promotions directed to potential travelers, using print media, television and radio, direct mail, electronic marketing and special promotions. Marketing partnerships extend the reach of Explore Minnesota advertising. The primary markets in the U.S. are in the north central region. International markets include Canada, Japan, United Kingdom, Germany, and Scandinavia. This unit also markets Minnesota to group tour operators and has a packaged travel program. Research conducted in-house or provided by other sources guides the development of marketing programs.

Industry Relations: This program area is responsible for facilitating two-way communication between Explore Minnesota Tourism and the state’s tourism industry. Regional staff located in Brainerd, Duluth, Mankato, and Thief River Falls, as well as St. Paul, provide regional association and community based marketing assistance. This unit facilities interagency partnerships, develops educational programs, coordinates the Governor’s Fishing Opener event and monitors public policy issues that may affect tourism in Minnesota. Grants are awarded to nonprofit tourism organizations to maximize state and local marketing resources. All grants and marketing partnerships must meet established criteria and include matching fund requirements and performance measures. This unit also manages advertising sales and customer service for the Web site and the Travel Guide.

Operations and Consumer Services: This unit provides information to travelers and prospective travelers. Staff of the Contact Center give consumers the opportunity to talk to a “real” person. Inquiries, including those generated by advertising, are received and handled via phone, e-mail and fax. Travel information is also delivered person-to-person to visitors at 10 highway travel information centers located throughout the state; four of these are operated by local tourism organizations in partnership with EMT. An extensive database maintained by this unit includes detailed information on approximately 2,300 accommodations, 1,900 attractions, and 2,500 events. The database is available to consumers through www.exploreminnesota.com and through Journey, the customized travel planning service. This unit is also responsible for management of administrative systems and financial and personnel functions office wide

Budget:
The general fund operating budget for the FY08-09 biennium is $10 million per year. The agency employs about 60 full and part-time staff. The budget is allocated as follows:
Communications 8%
Marketing and Research 39%
Industry Relations 7%
Partnership grants 9%
Operations and Consumer Services 21%
Fulfillment 9%
Travel Information 7%

In addition, to develop maximum private sector involvement in tourism, $500,000 is also available but must be matched from non-state sources. Each $1 of additional state funding must be matched with $3 of private sector funding, either cash or in-kind.

SITUATION OVERVIEW

• Leisure travel remains a high priority for consumers despite economic uncertainty.
• The trend of last-minute, shorter vacations is continuing along with trips closer to home.
• “American travelers are trading down, but not out.” (Dr. Peter Yesawich, Chairman of Ypartnership).
• Business travel budgets have been downsized and consumers have become more thrifty with their travel decisions.
• Americans are still heading to restaurants but spending less for meals. Discounts and coupon use have expanded.
• The “silver lining” of the current environment includes decreased costs of living and travel; and short term relief for workforce shortages related to increasing unemployment.
• The current environment provides an opportunity for travel businesses to examine their offerings and consider a return to core competencies.
• Travel marketing messages that emphasize value, connecting with others, maintaining balance in life and making memories should resonate well.
• “As travelers reallocate their discretionary income, now is the time to tout new or special services and value …” Todd Buchholz, former White House director of economic policy.
• Amidst rapidly changing economic conditions of late, travel forecasts have evolved into moving targets.
• As the economic climate continues to worsen, total US travel industry revenue will decline 3.5% in 2009. Travel spending is expected to rebound starting in 2010 and continue upward through 2013. Online travel revenue will moderate but continue its growth, increasing from 36% of total US travel revenue in 2008 to 39% in 2009, (Forrester Research, January 2009)
• “The amount of change in marketing over the past 3-5 years probably equals the amount of change over the past 30 years.” - Robert Liodice, ANA CEO
• New travel marketing technologies emerge to displace existing ones that are still in their infancy. Traditional media and printed travel brochures continue to be highly relevant.
• Most travelers now search online for at least some information for travel planning, and $4 out of every $10 spent online is spent on travel. Still, many travelers research online, then make their travel purchases offline.
• Consumers seek authentic peer-to-peer content on what to do and where to stay.
• Research shows that Web sites should support the decision to visit with specific, interesting information that creates excitement about the destination.
• Travelers view video online but are not as likely to contribute their own video to a Web site. Among U.S. Internet users, 72% are monthly online video viewers, 35% access user-generated content online and 17% are active blog readers.
• Outdoor activities are an important Minnesota draw, especially for in-state travelers.
• Cultural activities are of particular interest to non-resident travelers.
• Although the total number of Canadian visitors to Minnesota grew just 0.4% in 2007, their spending in Minnesota increased 12% over 2006 levels.
• Green travel remains important to consumers, even if the attention given to the economy has temporarily dimmed the spotlight that illuminates it.
• While nine in ten (91%) travelers in Minnesota identify themselves as white, racial and ethnic diversity is reflected in others who identify themselves as American Indian (2%), Black (2%), Hispanic (2%) and Asian (1%).
• Unexpected situations or disasters (such as flooding, wildfires and the 2007 bridge collapse) can influence consumers’ perceptions of Minnesota as a travel destination.

CONSUMER ADVERTISING
In 2009, Explore Minnesota Tourism will supplement the My Favorite Minnesota™ advertising campaign with messaging that encourages residents and nearby non-residents to enjoy the value of a great vacation in Minnesota. Television ads will drive consumers to www.exploreminnesota.com, support publication distribution goals, generate leads, and increase awareness of the Explore Minnesota brand by promoting a variety of destinations and activities.

The advertising markets are: Minneapolis/St Paul; Fargo/Grand Forks, ND; Sioux Falls, SD; Cedar Rapids, IA; Des Moines, IA; LaCrosse/Eau Claire, WI; Thunder Bay & Winnipeg, Canada; and greater Minnesota (TV and radio advertising through Minnesota Broadcasters Association agreement). Secondary markets for select tactics include: Milwaukee, WI; Chicago, IL; and Toronto, Canada. The primary target audience is consumers aged 25-54, household incomes of at least $75,000, who have engaged in at least two outdoor activities and one arts related activity in the past year.

Approximately 60% of the media budget will be spent in out-of-state markets; 40% for in-state marketing. The media budget is also allocated seasonally: 65% to promote spring/summer travel, 15% for fall marketing, and 20% for winter.

• Run television advertising in selected markets (noted above) on a staggered schedule throughout the year.
• Leverage added value with media outlets to increase the weight of our overall buys.
• Advertising placed in select travel and targeted activity magazines with cost per lead under $5
• Advertising emphasizes vertical activities based on the My Favorite Minnesota™ theme and consumer generated content
• Online ad placements on local news-oriented websites in our core markets, and key tourism aligned websites
• Online keyword paid search in MN, IA, WI, ND, SD, Chicago and Canadian markets.

Consumer email marketing

• Video distribution to media Web sites
• Large-scale partnership-based, year-long promotion to attract attention, drive Web traffic and gain incremental leads
• Media partnerships with the Minnesota Broadcasters Association; KARE 11-TV; Star Tribune; and WCCO-TV
• Continue to encourage consumer generated Web site content for authentic travel recommendations
• Incorporate cultural and geographical diversity in all media

Measurements:

• Evaluate recall of advertising messages and creative in core markets through annual campaign-focused survey
• Increase consumer submissions to My Favorite Minnesota™ by 50%
• Achieve established goals for consumer inquiries
• Increase overall traffic to www.exploreminnesota.com by 30%
• Achieve established goals for e-mail newsletter subscriptions
• Assess the effectiveness of the advertising in influencing incremental travel through conversion study

EXPLOREMINNESOTA.COM
We continue to develop new capabilities on our Web site. In 2008, we enhanced the Web site with expanded mapping capabilities, streamlined the application for user-generated content (My Favorite Minnesota), and instituting new navigation (drop down menus). To maintain consistency across the site we incorporated the golf, regional and scenic byways sites into main site; include itineraries and audio technology in scenic byways site redesign

In 2009, we hope to:

• Launch a new regional section of the Web site, including more intuitive mapping capabilities.
• Enhance the site’s appearance in natural searches by syndicating content through RSS feeds and blogs, and incorporating search engine optimization and subject area content into the site’s design
• Increase efficiency and save budget by working toward a site that can be maintained by internal staff
• Increase appropriate use of our photos by developing a searchable, downloadable photo library for use by media, tour operators, and industry contacts
• Increase services to tour operators by creating travel trade microsite

Measurements:

• Maintain our natural rankings in search engines for the term “Minnesota travel” (#1 on Google, Yahoo and Ask.com), and increase our organic search ratings for other Minnesota travel-related terms.
• Have the ability to make minor changes without the assistance of our developer
• Increase Web site page views by 30%

INTERACTIVE MARKETING
We are actively exploring marketing opportunities such as blogs, Internet forums, social networking sites, message boards and other forums that features two-way conversation.

• Reposition our online marketing and expand interactive marketing
• Create blogs through which consumers and the industry can have conversations on topics of interest; further define blog marketing strategy and explore ways to push content from Explore Minnesota blogs to other active blogs
• Use Real Simple Syndication (RSS) technology to place feeds on appropriate Web sites, blogs and other conversational marketing areas

TECHNOLOGY INITIATIVE
Our marketing efforts rely heavily on a wide variety of information contained in electronic databases. Currently, Explore Minnesota Tourism uses numerous different databases, causing inefficiency and redundancy.

• These databases should be combined to increase efficiencies and accuracy of the information and allow online advertisers a single point of entry
• Evaluate other capabilities for uses of Extranet, such as couponing
• Apply for funding and create information architecture (2009)

CONSUMER PUBLICATIONS
Explore Minnesota Tourism publishes a variety of publications for consumers, including the Minnesota Travel Guide, a group tour planner, the Minnesota Explorer travel newspaper (including an electronic version) and various activity guides.

• Meet consumer demand by publishing the 2009 Minnesota Explorers and Minnesota Travel Guide.
• Assure that consumers recognize our trusted brand by maintaining a consistent look and feel for Explore Minnesota publications
• Expand reach of publications by exploring options to have published information available in languages other than English
• Increase reach by providing electronic versions of publications

Measurements:

• Publications look and feel like a “family”
• Our publications are integrated into marketing plans
• Revenue forecasts for publications are met

COOPERATIVE MARKETING
Coordination between the state, Minnesota’s tourism industry, and private sector partners allows Minnesota to compete more effectively in the marketplace. Leveraging each other’s individual assets broadens reach and increases the impact of marketing activities and promotions among key audiences.

• Coordinate Minnesota tourism industry and Explore Minnesota marketing in ways that extend reach and impact in the market and avoids duplication
• Focus regional marketing initiatives on their unique tourism products, targeting specific consumer markets and generating inquiries or sales for destinations
• Facilitate relationships between local tourism promotion organizations with common goals, to encourage consolidation and better efficiency of marketing efforts
• Develop marketing partnerships focusing on vertical markets, such as golf, biking, wildlife, arts, cultural heritage, etc.
• Develop a large-scale marketing partnership to expand awareness of Minnesota product, generate leads, drive web traffic, and secure significant in-kind value and/or cash contributions towards match requirements
• Offer cooperative and promotional opportunities to the industry through various advertising tactics
• If a critical or special situation arises that could negatively affect a tourism industry sector or region, work with the industry to develop an appropriate short-term communication or marketing strategy

Measurements:

• Inquiries generated by regional marketing
• Inquiries generated through marketing partnerships
• Number of user sessions on regional websites
• Amount of in-kind and cash contributions
• Number of participants in cooperative marketing programs

GROUP TOUR MARKETING
To increase business to the state, Explore Minnesota works with tour operators not currently coming to the state by developing products that meet consumers’ expectations for value, convenience and options. For operators already bringing tours to Minnesota, we work to introduce enhancements to their existing programs to increase the length of their tour.

• Promote travel to Minnesota at select trade shows, on sales missions, familiarization tours and special events
• Maintain and develop new relationships with tour operators, group leaders, travel agents, and travel trade media to promote the Minnesota travel product
• Gain efficiencies and expand awareness of the Minnesota travel product through participation in the multi-state partnership Two Nations Tours
• Develop and promote information specifically for the travel trade on www.exploreminnesota.com
• Promote group and package travel to the industry by participating in regional association meetings, and providing training events and assistance in the development of programs through travel trade channels
• Create an online technical tour guide to promote opportunities for tour operators and group tour coordinators

Measurements:

• Number of tour operator programs that include Minnesota product
• Advertising-equivalent value of Minnesota travel articles
• Number of leads shared with Minnesota industry
• Number of familiarization tours hosted and industry participants
• Minnesota industry participation in sales missions, trade shows, familiarization tours, meetings

INTERNATIONAL MARKETING
Explore Minnesota promotes awareness of the state as an attractive destination in key international markets where we have the greatest opportunities to influence growth in the number of visitors and extend their length of stay.

• Key markets: Canada, United Kingdom, Scandinavia, Germany, Japan
• Promote travel to Minnesota at select trade shows, on sales missions, familiarization tours and special events
• Gain efficiencies and expand awareness of Minnesota through participation in multi-state partnerships, including Mississippi River Country, Rocky Mountain International and Great Lakes of North America
• Participate in the United States Travel Association of America’s Discover America initiative, promoting America as a destination in 18 countries through coordinated communications and promotions
• Work with international consumer and travel trade media to promote Minnesota travel destinations
• Increase consumer marketing in Canada
• Encourage more communities to actively participate in international marketing by raising awareness of cooperative opportunities and the local economic impact
• Evaluate new methods of measuring impact of international travel in Minnesota
• Begin promotion to the Latin American travel market

Measurements:

• Number of international tour operator programs that include Minnesota product
• Advertising-equivalent value of Minnesota travel articles
• Number of leads shared with Minnesota industry
• Number of familiarization tours hosted and industry participants
• Minnesota industry participation in sales missions, trade shows, familiarization tours, meetings

MEDIA RELATIONS
Media relations programs are designed to position Minnesota tourism favorably in local, regional and national media.

• Generate coverage of Minnesota as a travel destination in print, electronic and broadcast media
• Expand coverage of tourism’s importance to the state’s economy by regularly communicating policy issues, business developments, research and trends related to tourism with the news media
• Increase media access to information by providing current electronic and online resources
• Increase coverage of fishing in Minnesota by coordinating and providing media support for the Governor’s Fishing Opener; increase awareness of other vertical activities in Minnesota by providing media relations support at high-profile events sponsored by other organizations
• Create cross-unit proactive media relations plan

Measurement:

• Advertising-equivalent value of stories written on Minnesota travel increases by 10%

TRAVEL INFORMATION NETWORK
Explore Minnesota Tourism offers a variety of travel information and services to travelers and potential travelers. A critical component of the travel information is the database which is available through the Journey Travel Planning Service and www.exploreminnesota.com. This database also captures information on consumers for use internally and by the industry to enhance marketing activities.

• Provide customized travel planning information through the Journey Travel Planning Service and brochures in the most efficient and cost-effective way
• Pursue innovative ways to market the opportunity to speak to a “real” person
• Manage the extensive Journey and Web site database to ensure the integrity and quality of the information.
• Educate and encourage the industry to enter and update their information in the database via the Extranet service
• Proactively increase the number of tourism organizations and businesses represented in the database
• Evaluate database categories
• Provide travel information to travelers on the road by staffing six travel information centers (TICs) on major interstate highways and operating four on trunk highways through partnerships with community organizations; designating local information centers as affiliates; and working with MnDOT to research the possibility of wireless access at state-owned locations
• Provide accurate interest-driven travel information around the clock (e.g. fall color, events, birding, deals) to subscribers via e-mail newsletters or informational reports; Review current offerings and explore other areas of interest
• Provide distribution programs for industry brochures to consumers via the St. Paul Contact Center, Mall of America and Travel Information Centers (TICs)
• Encourage tourism organizations and businesses to utilize the available consumer information for marketing purposes.

Measurements:

• Number of consumers served via: phone, fax, mail, e-mail, voice-mail, Web site, outside vendors, TICs
• Number of communities participating in Brochure Distribution Programs: St. Paul Contact Center, TICs, Mall of America
• Evaluate the effectiveness of the TIC Affiliate Program
• Number of tourism accommodations, events, and attractions in database, number of updates
• E-mail newsletters: number of subscribers, topics offered, frequency
• Total number of requests for leads from the industry; total number of leads sent

GRANT PROGRAMS
Explore Minnesota Tourism grant programs are designed to create effective public/non- profit partnerships that generate increased overnight travel in Minnesota and support innovative and effective tourism marketing and research. A state investment of about $790,000 will generate over $1.125 million in private sector cash matching expenditures.

• Provide Organizational Partnership Grants to attract non-resident travelers to the state and encourage Minnesota residents to travel within the state
• Provide Scenic Byways grants to enhance awareness and marketing of Minnesota’s byways
• Create Innovative Partnership Grants to support an innovative marketing approach to increase travel to Minnesota destinations.
• Operate a crisis grant program to address emergency tourism marketing needs that significantly impact a traveler’s interest in or ability to travel to a destination.

Measurement:

• Organizational, Scenic Byways and Innovative Partnership program participants and matching funds

EDUCATIONAL PROGRAMS & INDUSTRY COMMUNICATIONS
Explore Minnesota Tourism offers educational opportunities to share trends and resources, encourage innovation and growth, and to nurture networking among industry colleagues. Formalized educational opportunities as well as ongoing communications resources are available.

• Hold a statewide tourism conference that provides timely information on tourism marketing and travel trends and offers opportunities for industry collaboration.
• Organize tourism development workshops to address specific topics as needed
• Coordinate with regional tourism associations on education and programming
• Develop crisis communication and action plans in response to disaster situations that could impact tourism.
• Enhance EMT Express, an electronic newsletter that gives the tourism industry timely updates on programs and resources
• Operate and promote www.industry.exploreminnesota.com, an industry resource for marketing programs, research, industry calendars, partners, news and contacts
• Generate an annual report, guide to EMT programs and other resources for the tourism industry
• Coordinate with other agencies, organizations and educational institutions on tourism education and training through workshops, Web sites or other methods

Measurements:

• Attendance and evaluation of tourism conference and other educational programs
• User sessions and page views of industry.exploreminnesota.com website
• Industry satisfaction survey

PUBLIC POLICY
Tourism is a vital element of Minnesota’s economic development, diversification and rural development. Public policy issues, including workforce, border security, resource preservation, transportation and funding, impact Minnesota tourism. These issues require leadership and advocacy to help public officials make informed decisions.

• Develop tourism strategies, programs and policies with the Explore Minnesota Tourism Council
• Evaluate Council structure and provide means to incorporate youth, other state agencies and under-represented segments of the tourism industry
• Develop a long range (10 year) priority plan for the tourism industry
• Analyze key public policy issues and develop positions on statewide issues that support the growth of tourism
• Pursue a long-term funding strategy to grow Minnesota tourism promotion and economic impact
• Coordinate a tourism awareness program with stakeholder organizations
• Implement recommendations of Travel Green and Vacation Home Rental Task Forces
• Implement a new structure of five tourism regions within Minnesota
• Proactively coordinate marketing efforts with other state agencies
• Participate in United States Travel Association and National Council of State Travel Directors Leadership functions

Measurement:

• Industry satisfaction survey

RESEARCH
Explore Minnesota Tourism utilizes research from a variety of resources and also conducts its own customer and industry surveys. Research results inform marketing decisions and all Explore Minnesota Tourism programs and are shared with Minnesota’s tourism industry.

• In partnership with several tourism organizations, provide statewide and regional travel-related economic impact data and profiles of Minnesota travelers
• Gather and disseminate information on leisure and hospitality industry jobs, wages and sales tax statistics; international travelers, and top attractions
• Evaluate the effectiveness of statewide advertising programs and provide information about Explore Minnesota Tourism customers
• Use available data to measure Minnesota’s and competing states’ market share of domestic travel
• Conduct or arrange for studies as needed; this year’s research will include a new study of the return on investment of Explore Minnesota Tourism consumer advertising
• Monitor and report on industry trends, including periodic surveys of Minnesota’s tourism industry
• Collect and compile lodging tax information on a quarterly basis