Local tourism seeing only blue skies ahead

Colorado Springs Business Journal, Apr 21, 2006 by Becky Hurley

They come armed with Mapquest printouts, Web-generated historical abstracts, coupons, data for local attractions, e-confirmation numbers and a desire to examine every nook and cranny of the local cultural, environmental and architectural scene. Today's tourist hardly profiles as your father's Oldsmobile said Dianne Perea, marketing and public relations director for Experience Colorado Springs.Last year's 6 million out-of-state, regional and in-state tourists contributed more than $1 billion to the local economy, representing the area's third largest industry.Comprised mostly of restaurant, lodging and attractions companies, the industry is expected to bring nearly 6.4 million people to the city in 2006.We expect to see another 4 percent increase in tourism numbers this year, said Terry Sullivan, executive director for Experience Colorado Springs.

Asked about the impact of online marketing on his business, Sullivan estimates that 50 percent to 60 percent of today's chain hotel bookings are linked to the Internet. The Web also influenced more than 54 percent of visitors surveyed by the organization about what type of advertising contributed to their decision to visit Colorado Springs.The Internet provides an ideal vehicle for tourism marketing, Perea said. She said that 72 percent of today's travelers get their visitor information online, while only 13 percent inquire by phone or mail. In another five years online inquiries could easily rise to 80 percent, she said.Based on statistics from the Travel Industry Association America, those projections are on target with national trends. In its Travelers' Use of the Internet, 2005 Edition, TIA researchers said about 56 percent of the 216.1 million adults in the United States use the Internet. Of those, 70 percent or more than 151 million indicate they are travelers. Two thirds of those could be considered online travelers. Included among those users are 78 percent who use the Internet for travel planning and 64 percent who booked travel reservations via the Web. So how do those trends translate locally?In 2004, more than 56 percent of visitors polled responded that they had used the Internet to obtain information. That number is strikingly higher than in 2000, when only 25 percent of local visitors acknowledged using online information, or 35 percent in 2003.As a result, hotel, attractions and lodging managers are tweaking, expanding and cross-promoting their Web sites more than ever.Michelle Carvell, executive director of the 29-member Pikes Peak Country Attractions Association estimates that her organization receives 75 to 90 e-mail requests per day for information about tourist destinations. Right now a part-time person handles our responses, but that may change if this pace keeps up, she said, noting that the PPCAA site offers links to member Web sites, clip-n- save coupons and virtual tours.She admits Web inquiries have grown beyond the organization's original expectations. We didn't pay much attention to it [the Web site] in the past, but now we realize we can't leave it on automatic pilot, she said. The Internet requires more oversight than a typical advertising campaign.This year, Carvell expects to see a 2 percent increase in visitors to local attractions.Spencer Wren, general manager for the Manitou and Pikes Peak Cog Railway and 22-year employee, said his organization has had a Web presence since 1995. The Internet is huge, gigantic for us, he said, adding that last year more than 225,000 passengers ascended Pikes Peak thanks to the railway's program.Wren said he has tracked online sales since the Web site first went up. We had maybe 35 or 40 reservations the first year, he said. Today we get 100 a day.He added that the Pikes Peak Country Attractions was a pioneer in encouraging its members to use online promotion, links and interactivity. So far, however, the cost of linking a ticketing function and database to the Internet has delayed the railway's plans to offer interactive reservations. Mike Bandera, vice president general manager for the Royal Gorge Bridge and Park agrees.You gotta do it - all our competitors use Internet promotion, he said.The Southern Colorado natural attraction sees more than 300,000 visitors annually. Based on monthly Web site click and page view reports, Bandera said his company is able to track people who are researching an upcoming visit.In 2006, we'll get close to 600,000 views - and probably 10 times that in Web site hits. That's up more than 30 percent from two years ago, he said.Based on last year's patron exit surveys, he said that 16 percent of paid admissions were brought by Internet promotion, up from 8 percent in 2004. Traditionally at least 40 to 50 percent of those surveyed say word-of-mouth contributed to their decision to visit, but of all advertising vehicles - radio, television, print and Internet - Web advertising gets the greatest response, he said.The attraction spends nearly $100,000 annually to advertise and link its site to dozens of others including www.Colorado.com and www.experiencecoloradosprings.com.Randy Meacham, owner of World's Finest Hotels, Inc., consults with corporate and association meeting planners. He sees the Internet as an absolute in the hospitality field. You can look at room sizes, review menus and get pricing information, he said. It's an efficient way to do your meeting research - and it's easy for vacationers to find the 1-800 number and preview the area. Even upscale convention and resort hotels find Web technology useful for building business.John Washko, director of sales and marketing for the Broadmoor Hotel said technology provides an efficient way, especially for leisure travelers, to make a decision about accommodations.Because the 700-room hotel caters 70 percent to group and 30 percent to social or leisure travelers, Washko's sales staff relies heavily on the Internet to inform and attract corporate meeting planners, associations and incentive travel companies. It also provides an electronic conduit to publish and respond to industry requests for proposals.Planners use the Web to pre-qualify us, he said. If they need 1,000 rooms in one block and know we have 700, they can decide whether or not they want to use our space and book overflow hotels. It's also a great tool to show off our amenities and the scenery.Dozens of requests for proposal are sent to the sales department electronically from corporations and associations.Our FIT [frequent independent travel] guests tend to use the Internet, Washko said. They're shopping for an experience. The Web site offers all the description they want. Andre Gutierrez, director of reservation sales said 19 percent of FIT business is booked online. Overall I've seen trend reports that show more travelers are using the Internet to put their hotel and flight components together, he said, noting that some affluent travelers still rely on travel agencies to set up their trips.Gutierrez sees a busy 2006 season ahead based on early leisure bookings - up as much as 30 percent year over year.Washko confirmed that revenue for 2005 broke all previous Broadmoor records - and 2006 looks as strong or better for group business as well. In addition to conventions and meetings booked out as far as 2012, we are also attracting more business from Denver and from high level military and defense-related companies in the area, he said.