USDM's CEO reports cities that created websites to attract visitors saw a massive influx of tourism.
A recent survey by USDM.net of visitors to 11 destination websites reports that many of the people that visited these websites reported subsequently visiting these destinations in 2005 and spending hundreds of millions of dollars on lodging, dining, shopping, entertainment and transportation during their stay in each, for an estimated total of $9 billion spent collectively in all 11 destinations.
An estimated $7 billion in projected additional revenue may be realized from these visitors in 2006, based on survey respondents that reported they plan to visit these destinations in the next 12 months.
The report is based on 54,079 survey responses. Data was analyzed and projections calculated by Majority Opinion Research of Atlanta. The average sampling error across the 11 markets surveyed for the report is +/- 1.53 percent. The 2006 survey will begin in November.
The 11 destinations represented in the survey are Arlington TX, Atlanta GA, Atlantic City NJ, Beaches of South Walton FL, Bloomington MN, Fort Worth TX, Memphis TN, Miami FL, Pigeon Forge TN, Raleigh NC and Tunica MS. Together, the 11 destination websites recorded more than 25.7 million website visits in 2005 and an average of approximately 20 percent of website visitors surveyed reported they decided to visit the destination after visiting the website.
All eleven sites had conversion rates (percentage that visited) above 40 percent, and eight of the 11 sites had conversion rates of website visitors to destination visitors higher than 50 percent. Collectively, an estimated average of 55 percent of the 11 website's visitors subsequently visited these destinations in 2005. The visitors' expenditures in individual destinations ranged from a low of $214 million to a high of $1.95 billion in 2005, with an aggregate average of $640 million.
All of these local, single-destination-focused, tourism websites are sponsored by official destination marketing organizations (DMOs) like a city's convention and visitor bureau (CVB) or department of tourism. Most have small online marketing budgets. Yet, visitors to these websites report spending billions of dollars in these destinations.
How could this be?
How could these small travel sites compete with the large, high profile, online travel agencies?
"We believe their success is due, in part, to a combination of superior destination information and superior search engine ranking and interactive marketing," said Jeff Woolford, director of research for USDM.net.
"While the big, brand name, online travel agency with multi-million dollar advertising budgets do attract a much larger volume of visitors to their sites, their conversion rates are five percent or less," Woolford said. "Surveyed visitors to these official destination sites are reporting conversion rates of no less than 40 percent."
"Expedia may attract 15 million visitors to their site in one month and get a five percent conversion, and one of these destinations may only get 1.5 million visitors to their site all year, but they get a 50 percent conversion, and they're only selling one destination-- their own," Woolford said.
"The internet can offer the smart destination marketers a strategic advantage over much larger competitors, when they leverage their superior content relevancy in search engines, and invest in leading-edge interactive marketing tactics that research indicates online travelers respond to most."
USDM.net is the interactive agency for all 11 DMOs involved in the survey.
According to the Travel Industry Association of America's 2005 report, "Travelers' Use of the Internet," a majority of online travelers (78 percent or 79 million Americans) turned to the internet for travel or destination information in 2005, a significant increase from 65 percent of online travelers in 2004. Almost half of online travel planners use destination websites -- such as those maintained by convention and visitor bureaus -- to plan trips.
Survey findings from the TIA report also indicate that 82 percent of travelers who plan their trips online now also book reservations online, with more than 64 million Americans purchasing or reserving an airline ticket, hotel room, rental car or package tour online this past year-- up from 70 percent in 2004.
"These official destination websites offer a behavioral targeting of travel consumers during the earliest stage of planning online. At this point, suppliers advertising on these sites are in a strong position to capture a potential sale. Consumers want to book directly with the suppliers and these official destination marketing organizations offer a powerful direct connection," Woolford said.
About USDM.net
Since its inception in 1993, USDM.net's deep travel industry experience, innovative internet marketing tactics, and adaptive technology solutions have propelled it to become the leading interactive agency for the travel industry, endorsed by the Travel Industry Association of America, Destination Marketing Association International, and the Southeast Tourism Society. Incorporated as U.S. Destination Marketing Inc., and headquartered in Corpus Christi, Texas, USDM.net provides comprehensive internet strategy, planning and turnkey Internet marketing and web design and technology services to more than 155 Destination Marketing Organizations (DMOs) and other hotel, hospitality, and tourism organizations. USDM.net owns and manages www.officialtravelguide.com, the travel portal of more than 1,250 destinations worldwide. For more information about this survey or to participate future surveys, contact Jeff Woolford, director of research at (361) 653-2377 or by email at jwoolford@usdm.net.