Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
6g
ACTION ITEM
Date of Meeting
January 22, 2019
DATE: December 13, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Dave McFadden, Managing Director, Economic Development Division
Ron Peck, Director, Tourism Development Department
SUBJECT: UK and Europe Tourism Cruise and Stay Marketing Agreement
Total contract request:
$555,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a contract for cruise
and stay marketing to promote all Washington state tourism opportunities in the UK and
Europe as a one-year contract for $185,000 with two additional one-year options at the rate of
$185,000 per year for a total not to exceed $555,000.
EXECUTIVE SUMMARY
Cruise traffic from Seattle to Alaska is booming. In 20 years, the Port of Seattle has become the largest
homeport destination in the North America Pacific Coast market. In 2018, passenger numbers exceeded
1.1 million. In 2019, that number will reach 1.2 million. The Port of Seattle and Alaska state travel
research confirms that 10 percent of the Alaska cruise market originates from international travelers.
The 2018 Cruise Industry News Annual Report states, “Britain and mainland Europe are important Alaska
leisure travel and cruise markets.” This contract will enable the Port to positively impact these
important cruise markets by reaching cruise influencers (travel media, cruise retailers and cruise tour
operators) through a variety of travel trade interactions and promotions. The contract will give Tourism
Development the opportunity to:
Increase the economic impact of cruise business for Washington state through the promotion of
“Cruise and Stay” in key international cruise markets.
Educate and inform the travel trade about pre- and post-tourism opportunities in Seattle and all
of Washington state.
Reach out to cruise lines’ reservations, sales and marketing teams, direct travel sellers and CLIA
offices and membership in the UK and Europe.
Host cruise and stay tour influencers and travel media on familiarization tours for all of
Washington state.
Tourism Development’s three-to-five-year strategy is to:
(1) Promote Seattle and the Pacific Northwest as a unique and exciting visitor destination with a
world-class international airport and
(2) Reinforce the Seattle/Washington state cruise-and-stay concept to cruise influencers as an
important part of an Alaska cruise experience.
COMMISSION AGENDA – Action Item No. 6g Page 2 of 6
Meeting Date: January 22, 2019
In contrast to previous years whereby the Port of Seattle representation agreement was solely for the
UK, this agreement is inclusive of Mainland Europe and targeted toward cruise development. The
expansion to Mainland Europe leverages our resources more efficiently in addition to reaching a larger
important international cruise travel audience.
This agreement will dovetail with the recent Commission approval of the Visit Seattle agreement. We
will work in an aligned collaborative partnership with Visit Seattle to ensure that each organization’s
international marketing work is different and complimentary. Visit Seattle’s objectives includes focusing
on increasing room occupancy for the leisure and business traveler while our concentration is directed
toward the cruise traveler which is a distinct, unique industry niche.
The Port’s focus will be directed to the travel trade and travel media. A key partner will be Cruise Line
International Association (CLIA). CLIA membership provides the Port access to over 4,000 travel
influencers in the UK and Mainland Europe. Trade activities will include webinars, online training
programs, newsletter publications and trade shows. Our intent is to promote Seattle as the gateway to
Alaska to impact the length of stay by international visitors and increase cruise and stay visitation while
promoting all of Washington state’s unique travel experiences.
This refinement of our relationship with Visit Seattle further demonstrates cooperation. The
collaborative activities afford both organizations to be engaged, productive and delivers a “one two
punch” in the international travel marketplace.
Our strategy also dovetails with the Commission’s directive to double the value of the cruise traffic in
Washington state. Our international cruise and stay efforts have resulted in strong outcomes already,
including:
Via the Thomas Cook Airlines inaugural, we introduced cruise and stay opportunities to the
airlines’ in-house operator, Thomas Cook Cruise, the UK’s largest independent cruise retailer.
Working with Princess, we provided an immersive experience to enable top cruise specialists to
sell Seattle and Alaska with first-hand knowledge on a familiarization (FAM) tour.
Annually, Tourism conducts a Two Nation FAM tour, targeting UK cruise travel specialists.
Familiarization sponsors have included British Airways, Icelandair, Delta, Clipper Vacations and
Rocky Mountaineer. This FAM is complimented by a POS Tourism Workshop joined by
statewide tourism partners who share their stories via tableside meetings to develop pre and
post cruise itineraries.
The Port conducted 34 FAMs (440 participants) to introduce travel trade and travel media to
Washington state. Our statewide tourism partners supported these familiarization programs
with $550,000 in contribution.
For 2018-19, the number of UK and Irish tour operators offering product increased by 6%.
As a result of connecting with various travel media channels in the UK, earned media value
reached $7M in 2018 and included:
o Dancing with the Stars Ireland TV
o Virgin Atlantic Seattle/Washington state in-flight video entertainment guide (22 minutes).
o Irish Getaways program featured Seattle as a cruise and stay destination on both RTE and
BBC TV channels.
COMMISSION AGENDA – Action Item No. 6g Page 3 of 6
Meeting Date: January 22, 2019
o ITV Channel 4 featured Seattle, Tacoma, Mt. Rainier and Mt. Helens in one-hour travel
documentary.
o UK’s World of Cruise, Cruise International and Cruise Advisor have all published destination
features to promote statewide Cruise & Stay.
This agreement allows the Port to continue to market and increase visitation from two important
international cruise markets.
Tourism Development works closely with Cruise Maritime in a very collaborative and cooperative
fashion. We will continue to do so in both the international and domestic travel trade arenas. Tourism
Development’s focus is directed toward positively influencing consumers via the travel trade and travel
media, while Cruise Maritime concentrates on impacting the cruise industry and deployment. Even
though our missions are different, they converge. Collaboration is paramount. Specific examples of
past and continued cooperative efforts include the following:
(1) Florida SeaTrade Conference
(2) Participation in Cruise 360, a domestic travel trade show
(3) German Cruise and Stay Sales Mission
(4) Participation in SeaTrade Europe
(5) China Cruise and Stay Sales Mission
(6) Collaboration on the recently developed WeChat platform with a cruise component
(7) Joint development and implementation of cruise visitor research surveys
(8) Cruise Connections participation by Tourism
(9) NCL inaugural activities including hosting NCL staff, travel trade and travel media
(10) Monthly meetings geared to share information, ensure collaboration and alignment
Research shared by the Cruise Lines International Association (CLIA) and Port in-house surveys reveals
cruisers often use the services of cruise specialist travel retailers and tour operators to book their
travels. Online travel organizations such as Expedia have established cruise sales specialists and “brick
and mortar” stores because the consumer requires personal interaction. Expedia recognizes that of the
various types of travel experiences, the consumer relies on and desires to complete a cruise booking
with a cruise travel specialist. Tourism’s position is that it is important to educate, inform and train
travel agents, tour operators and cruise line agents about Alaska cruises and Washington cruise-and-stay
opportunities.
With the Port’s recent consideration decision to develop a fourth cruise terminal, this agreement further
demonstrates our commitment to the economic importance and vitality of the international cruise
visitor to Seattle and Washington state.
JUSTIFICATION
This request is in alignment with Century Agenda Strategy 2: Advance this region as a leading tourism
destination and business gateway.
Objectives:
6. Make Seattle-Tacoma International Airport the west coast “Gateway of Choice” for international
travel.
7. Double the number of international flights and destinations.
9. Double the economic value of cruise traffic to Washington state.
COMMISSION AGENDA – Action Item No. 6g Page 4 of 6
Meeting Date: January 22, 2019
The request is in alignment with the Port’s Regional Initiative to:
Make Washington a preferred destination for international travelers from countries from which
we have direct flights.
Scope of Work
Conduct press travel and trade services, including, but not limited to the following:
1. In consultation with the Port of Seattle, develop and supervise a comprehensive travel trade and
media strategic marketing plan for the UK, Ireland and Mainland Europe. The plan should
include monthly progress reporting to provide high-level market updates, media and trade
familiarization tour information, promotion reviews and valued press clippings.
2. Use UK CLIA Associate Partnership to positively impact CLIA travel influencers/agents to increase
Alaska cruise traffic and pre/post travel in Washington state. Participate in specific CLIA-related
programs that may include UK CLIA Media Awards, UK CLIA Annual Conference, enhancement of
the Port’s online training program and use of UK CLIA webinars, podcasts, newsletters, e-blasts,
and other targeted communication activities.
3. Investigate Europe CLIA opportunities including participation in cruise trade shows, media
events, travel agent training programs and webinars.
4. Represent the Port at Brand USA and Visit USA Association meetings as well as other pre-
approved media/travel trade cruise related functions.
5. Maintain the excellent UK and European airline and cruise line relationships the Port has built to
secure support for media and trade familiarization tours to promote Alaska cruising and Pacific
Northwest tourism development. Work with key partners to leverage budget - cruise lines, tour
operators and media.
6. Conduct one trip per year to the region to participate in annual program review and industry
meetings.
7. Investigate co-op multi-platform marketing strategies with cruise influencers with measurable
return on investment.
8. Conduct a minimum of 20 familiarization tours annually for travel trade media and cruise and
stay tour operators and sellers.
9. Establish goals for obtaining earned media value attained in promoting cruise and stay in
Washington state and cruising from Seattle for the UK, Ireland and Mainland Europe
10. Identify a target for increasing the number of cruise and stay tour product offered from the UK,
Ireland and Mainland Europe.
COMMISSION AGENDA – Action Item No. 6g Page 5 of 6
Meeting Date: January 22, 2019
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not propose an agreement for UK/Europe representation.
Cost Implications: $555,000.00
Pros:
(1) Reduces specific budget request by up to $185,000 a year, which could be used for
other types of tourism promotion.
Cons:
(1) The Pacific Northwest and cruising from Seattle to Alaska are recognized as popular
travel destinations in the international tourism marketplace. Not promoting cruising
from Seattle and educating travel influencers about extending their stays in Seattle
and Washington will do harm to the destination’s momentum and ability to increase
the number and economic value of the international cruise travelers.
(2) It would eliminate the possibility of leveraging the good will and successful
promotions over the past few years and would erode support for the cruise / tour
operators that currently sell the destination.
(3) It would erode the Port’s leading role as a tourism advocate and economic asset for
our region.
This is not the recommended alternative.
Alternative 2 – Request authorization for a UK / Europe mainland agreement for up to three
years and an estimated cost not to exceed $555,000.
Cost Implications: $555,000.00
Pros:
(1) This new agreement will reinforce the Port of Seattle’s commitment to increasing the
economic value and numbers of international cruise travelers experiencing Seattle and
all of Washington state.
(2) This agreement will maintain and grow the momentum in these markets and provide
funding for targeted promotions, media familiarization projects and pro-active
planning to grow international cruise visitor stays in Seattle and Washington state.
Cons:
(1) By not executing an agreement, the Port’s leading role as a tourism advocate and
economic asset for our region would be diminished and international cruise traffic
from Europe and the UK would be a negatively affected.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 6g Page 6 of 6
Meeting Date: January 22, 2019
Potential for WMBE / Small Business Opportunities:
As part of the Port of Seattle’s efforts to affirmatively expand its focus to increase WMBE
participation on Port’s contracts, staff will be reviewing the firms’ affirmative efforts in their
plan to achieve the Port’s WMBE aspirational goals.
FINANCIAL IMPLICATIONS
The 2019 Economic Development operating budget includes $185,000 for this purpose. The
source of funds is the King County tax levy.
ATTACHMENTS TO THIS BRIEFING
None
PREVIOUS COMMISION ACTIONS OR BRIEFINGS
July 14, 2015 – Commission authorized the Chief Executive Officer to execute a contract for
tourism consulting services in the United Kingdom, for a cost not to exceed $750,000 with
contract duration of one year plus 2 one-year options.
