MRTF Recommendations
Regarding ARES Contract
May 16, 2011
Background To Select A Booking Engine
 Online media buys increased in 2009 Media Plan
 Williamsburg Hotel Motel Association destination booking
engine supported WADMC efforts since 2004
 Internet access important to travelers for research, planning
and booking
 Technology applications continuously changing, expensive to
keep current
 WHMA booking engine and self-managed software model no
longer competitive, limited call center hours
MRTF Booking Engine Research Work
Group
 Formed March 2009 – included WACTA, WHMA, BG, JYF and
York County
 Researched 15 websites and 8 booking engines
 Members of WHMA Board and WHMA
Reservations/Promotions Committee were asked to provide
input
 Formal review by all MRTF partners
 Work Group developed extensive list of Booking Engine
Opportunities
 August 2009 presented recommendation to MRTF to pursue a
unified approach with WHMA
Proposed Roles for Partner (WHMA)
Encourage package promotions and seasonal
offerings
Train local lodging providers on how to get the most
out of the booking engine
Local call center support is possible
Manage inquiry fulfillment
Partner would not receive direct revenue from ARES
or the booking engine
Evaluation of RFP Responses
Received 3 qualified responses by deadline
Reviewed and scored independently, then tallied
and discussed by entire MRTF, including WHMA
representatives
Top vendor exceeded requirements for functionality
and specific features desired
MRTF voted to seek further references on and
negotiations with top vendor
Booking Engine RFP
Work Group
 MRTF and WHMA each appointed 3 members
 Incorporated Booking Engine Opportunities in RFP
 Objectives – Offer potential visitors a means to book major
travel components and/or packages and provide a
competitive booking engine alternative to support destination
marketing efforts.
 Good faith effort to explore managing partner relationship
with WHMA
 RFP reviewed by JYF contract administrator and JCC attorney
 WADMC approved release of RFP
Follow-up From April 18, 2011
WADMC Meeting
WADMC received letter from ARES requesting
guidance regarding a potential conflict of interest in
allowing another entity to use reservation services
provided to WADMC
MRTF was asked to evaluate and recommend
In addition, MRTF was asked to have the Booking
Engine Committee analyze WHMA’s suggestion to
merge the WADMC booking engine operations with
the WHMA local call center.
Timeline For Evaluation
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April 11: Letter sent from ARES to WADMC asking for approval to work with WHMA
April 13: Robin Carson shares letter with MRTF group
April 18: Jim Kennedy shares letter at WADMC. WADMC asks MRTF to gather more information and report back at next
WADMC meeting. MRTF establishes a sub-committee (Julie O’Neil (Chair), Robin Carson, Jody Puckett, Kristi Olsen, Sally
McConnell, Susan Bak).
April 20: MRTF Sub-committee meets to review information and determines that we need something in writing from
WHMA defining their purpose for wanting to work with ARES.
April 21: Phone message and email sent by Julie O’Neil to WHMA on initial items needed for MRTF to move forward.
April 22: Phone call with Priscilla, Billy and Julie O’Neil to verbally discuss needs, next steps, etc. WHMA Board approval
has to happen before any documents can be sent which will take place on April 26.
April 26: Electronic proposal, call center budget, reservation summary sent to Julie O’Neil by WHMA. Then sent on to
entire MRTF sub-committee to review prior to next meeting
April 27: MRTF sub-committee meets (1:30 p.m.) to review documents sent by WHMA . We now realize that we need to
report back with 2 recommendations. 1. Response to letter from ARES and 2. The proposal from WHMA to handle our
calls locally and give up their website. This will require more information gathering with WHMA and ARES. Julie shares
update/next steps at 3:00 meeting with full MRTF team.
April 28: Conference call with Priscilla, Billy and Julie to discuss questions that came out of April 27 meeting and asked for
revised documents to address our questions/comments. Also on this day an email was sent to ARES requesting similar
items so that we can do a side by side comparison.
May 2: Received revised documents from WHMA.
May 3: Documents received from ARES.
May 4: MRTF sub-committee meets to put all the information together.
May 5-12: Final gathering of information
May 13: MRTF sub-committee meets with WHMA (11 a.m.) to all them to share their proposal with us verbally and iron out
any questions or concerns prior to submitting recommendation next week. Sub-committee meets (12 p.m.) to go over
analysis and finalize documents for entire MRTF group.
May 14: Recommendations sent to entire MRTF group via email
May 16: MRTF meeting (3 p.m.) to review any final questions. WADMC recommendations (4:30 p.m.)
ARES Letter to WADMC
Key Factors:
– Recognized through ARES letter the need to strengthen
contract to close the door to potential conflicts
– Only 12 WHMA properties are not already contracted with
ARES
– WADMC’s commissions ($45k in 2010) are reinvested in
the campaign and no individual interest group benefits
Key Factors Continued:
– Unnecessary disadvantage to WADMC to split
commissions gained by existing ARES contracts
MRTF recommends that WADMC does not sign letter of agreement
with ARES allowing any additional organization to utilize the destination
infrastructure as a separate entity. MRTF proposes amending the
existing ARES contract to reflect above statement.
Merging WADMC Booking Operations
With WHMA Call Center
WHMA
Proposal
WHMA Proposal
WHMA Proposal Snapshot
Grand Total Reservations
Based on 2010 Actuals
13,505
Grand Total Revenue booked
$3,112,037
Unbudgeted operating budget costs to WADMC*
($149,165)
Lost commission to WHMA
($9,333)
Net loss to WADMC in 2011
($158,498)
*Cost for 2012 could be as much at $210,000 to operate WHMA call center for full year
Evaluation of WHMA Proposal
Call Center and Website
COMBINED
ARES
WHMA
Grand Total Reservations
10,606
2,899
Grand Total Revenue
Unbudgeted operating budget
costs to WADMC
$1,993,089
0
$1,118,948
PROPOSED
($149,165)
Total Commissions to WADMC
Total Commisions for CC and
Web bookings
$45,459
N/A
$186,407
N/A
ARES based on 10 months versus WHMA 12 months
MRTF Recommendation:
Proposal is not financially feasible
Would need to issue RFP if another call center is
desired
Current ARES contract is in effect until December 31,
2011
Happy with present call center
MRTF does not support the recommended WHMA proposal