One month ago we penned a Monday Huddle Up aimed at data we have relating to mid-tier markets. Our team spends a lot of time diving into various data sources to ascertain what we can learn about tier two and tier three destinations, which make up a majority of the partners we serve. Yes, we have worked with Detroit and Houston and markets with populations in the millions. However, we do our best work in small and mid-sized markets where little changes can make a huge impact. In that spirit, this week’s Huddle Up is an extension of the one a month ago.
When I asked our team what data points are key indicators for sports tourism success, here is what they came back with. From a destination perspective……
Budget – The larger the budget to close deals, pay bid fees, offset venue costs, and the like, the better the results (shocker right). But how big a difference does budget make? Here you go…..
Batting Average – The destinations with the top budgets have a 7% higher batting average when competitively bidding on events. That is, when they go through an RFP process, they win more often than those that have limited budgets.
Bids – Not surprisingly, those with more resources bid on more events. So since those with more money bid on more events and have a better success rate…..
Events – The more well-funded destinations (be they CVBs, DMOs, or sports commissions) bid more and land more than their underfunded peers to a tune of 3.5 to 1. Our data shows that the average destinations host 5-6 events a year, while their more funded counterparts host 17-18.
The Future – Take that last point a step further. When we survey destinations on how many events they have contracted for the next two years, the gap gets wider. The well-funded destinations have nearly 22 events contracted on average, while the lesser funded cities have six events on the books two years out.
The funny part about all of this is that nearly every destination we counsel says that sports tourism is 40-60% of their total business. However, the sports department, in whatever form it takes, gets minimal staff head count and a nominal amount of the marketing budget (usually in the 10-20% range). So the question for our tourism leaders is this…..
If the data says sports tourism is driving your business, and you know it, when do we give our sports people the tools and resources they need to maximize that opportunity?
Use the data to make intelligent and intentional decisions.
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