HomeMy WebLinkAboutPED 2020-12-07 Item 1B - Discussion - Seattle Southside Regional Tourism Authority
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Planning and Economic Development Committee
FROM: Brandon Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: December 1, 2020
SUBJECT: Seattle Southside Regional Tourism Authority, Return on Investment
ISSUE
Presentation on the return of investment reported by Seattle Southside Regional Tourism
Authority (SSRTA).
BACKGROUND
At a previous City Council meeting there was interest in the return of investment reported by
SSRTA, specifically as to how it would relate as the City develops key performance indicators
for Experience Tukwila and how it was calculated. Staff requested that SSRTA provide a write
up to the City Council with information on its return on investment (see attached). Staff has not
conducted a detailed review or analysis of the information presented by SSRTA and is providing
it to the Council as presented by SSRTA.
FINANCIAL IMPACT
N/A
RECOMMENDATION
Discussion only.
ATTACHMENTS
Estimated 2019 RTA Return on Investment (document prepared by SSRTA).
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Estimated 2019 RTA Return on Investment
Notes regarding ROI:
The RTA influences much more return on investment than what is calculated below, however,
some fundamental work of any marketing organization (public relations, social media, some
advertising, brand awareness , etc.) cannot be tracked and tied directly to spend without
conducting conversion studies. Issuing conversion studies for every activity would be cost
prohibitive and therefore the RTA is strategic about which studies are conducted.
The RTA adheres to the industry standards for calculating ROI established by the national
association for DMOs, Destinations International. In addition, the RTA includes in its ROI
calculation only spending as measured at the destination level, not a national average.
The RTA invests in multiple research firms to conduct studies on evaluating spend in Seattle
Southside. This data is compared and analyzed internally, and the most conservative results are
used in the below calculations.
ROI CALCULATION VISITOR SPEND
1) Website: 540,182 unique users' x 28% conversion = 151,251 travel party x
$1,039 trip average spend = $ 157,149,789
2) Group Sales: 10,774 room nights x $438 average daily spend = $ 4,719,012
3) Ad Attributed Hotel Sales: 34,223 room nights x $438 average daily spend = $ 14,989,674
4) Shuttle Services: 24,619 riders x $172 average = $ 4,234,468
$ 181,092,943
Total Estimated Visitor Spend = $181,092,943 / 2019 RTA Total Operating
Expenditures* $4,325,719 = $ 41.86
1. WEBSITE
(A) 540,182 unique users x (B) 28% conversion = (C) 151,251 travel party x (D) $1,039 trip average
spend = $157,149,789 visitor spend
A. The number of unique users is derived from Google Analytics tracking of our website. This
means that 540,182 different people (differentiated by their IP Address) visited our website in
2019.
B. The 28% website conversion rate was determined by an H2R Market Research study conducted
in 2019 (see H2R Market Research, page 4). H2R surveyed people who visited our website to
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determine the number that actually booked a stay in Seattle Southside which establishes this
conversion rate.
C. 28% of the unique users equals 151,251 overnight trips to Seattle Southside. From Dean Runyan
Research, the average overnight trip includes 2.1 people (aka. travel party) so we can determine
that one person visiting the website (unique user) represents a travel party (see Seattle
Southside Travel Impacts, page 5).
D. From Dean Runyan Research, the average travel party that visits Seattle Southside spends
$1,039 per trip (see Seattle Southside Travel Impacts, page 5). Dean Runyan Research analyzes
multiple data sources to determine these estimates, including WA State Dept of Revenue
lodging tax data, sales tax receipts, etc. We use the ‘trip average’ instead of the ‘daily rate’
spend because the 28% conversion rate reports that the unique user booked an overnight trip,
not simply one night in a hotel.
2. GROUP SALES
(A) 10,774 room nights x (B) $438 average daily spend = $4,719,012 visitor spend
A. Based on reports from host hotels and meeting planners, 10,774 projected rooms occurred in
2019 for events the RTA supported through lead generation or event assistance.
B. Dean Runyan Research reports that $438 is spent per day by a travel party staying overnight
(the average overnight room includes 2.1 people, aka. “travel party”, also according to Dean
Runyan Research (see Seattle Southside Travel Impacts, page 5).
3. AD ATTRIBUTED HOTEL SALES
(A) 34,223 room nights x (B) $438 average daily spend = $14,989,674 visitor spend
A. A marketing campaign conducted with digital advertising media partners in 2019 resulted in
34,223 room nights booked as a direct and trackable result of the campaign.
B. Dean Runyan Research reports that $438 is spent per day by a travel party staying overnight
(the average overnight room includes 2.1 people, aka. “travel party”, also according to Dean
Runyan Research (see Seattle Southside Travel Impacts, page 5).
4. SHUTTLE SERVICES
(A) 24,619 riders x (B) $172 average = $4,234,468 visitor spend
A. The Westfield Shuttle service provider tracks ridership and reported 24,619 riders in 2019.
B. According to the Shuttle Bus Economic Impact Study conducted through shuttle rider surveys by H2R
Research, the average rider spends $172 per trip to Westfield Southcenter (see Shuttle Bus Impact Study,
page 4).
*Actual expenses shown on Audited Statement of Activities, which includes depreciation and other reported expenses such as
compensated absences. In addition, it excludes capital expenditures but reported on Statement of Net Position
60
H2R Market Research
Reveal Your Customer’s Full Experience
2018-2019 Digital Media Conversion Study
Seattle Southside RTA
Delivered August 2019
6
1
2
Overview
Executive Summary
Purpose. The purpose of the Seattle Southside RTA 2018/2019 Digital Media Conversion Study was to measure the conversion rate of website visitors who booked an overnight trip to the area, as well as identify motives for website visitation and what Seattle Southside visitors do while visiting the area.
Target Audience. The Seattle Southside RTA Digital Media Conversion Study survey was conducted among website visitors who visited www.seattlesouthside.com over the past 12 months.
Sample. A total of 235 respondents both visited the website and were subsequently interviewed for this study which provides for a maximum margin of error of +/-6.4% at a 95% confidence interval.
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2
Executive Summary
2018-2019 Digital Media Conversion Study
6
3
4
▪A majority (72%) of the Seattle Southside website visitors had already decided to make a trip to the area when they visited the website—a 4-point increase over 2015/2016. Most of these website visitors were looking for activities to do in the area (80%, +24 pts), dining options (55%) and/or events and festivals (52%).
▪More than 8 in 10 website visitors feel the Seattle Southside website is a good/great website that is somewhat/very easy to navigate—on par with the 86% who said the same in 2015/2016.
▪The Seattle Southside website earned a conversion rate of 28%. That is, 28% of website visitors who visited the Seattle Southside website ultimately ended up booking an overnight trip to the area afterwards. In 2015/2016 the conversion rate was 34%, or 6 points higher than this year.
▪Website visitors indicated their experience online impacted them in several ways. Nearly half (47%) indicated their visit to the website persuaded them to visit attractions or restaurants they had not planned to visit, 20% said they visited Seattle Southside instead of another destination and 15% said their experience on the website persuaded them to stay longer in the area than they planned.
Website Generates Positive Results
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4
5
▪More than 9 in 10 Seattle Southside visitors* spent the night in the area on their most recent trip (+2 pts). And, the average length of stay among Seattle Southside visitors* was 3.8 nights—an increase over 2015/2016’s length of stay at 3.7 nights.
▪Most Seattle Southside visitors indicated they were visiting the area for vacation/leisure purposes (58%), and the majority reported staying in hotels (69%). The average converted visitor participates in a variety of area activities including the Space Needle (12%) and Pike Place Market (10%).
▪In a shift from 2015/2016, most converted visitors this year were under the age of 55 and were significantly more likely to be families with children (+26 pts).
▪Nearly three-quarters of non-visitors** indicated they are Seattle Southside prospects, or “considerers,” who are somewhat/very likely to visit the area in the next six months. These respondents, however, have not yet booked a trip and fewer than half (43%) said they had considered it in the past.
Visitor Composition Changes
5*Website visitors who booked an overnight stay**Website visitors who did not book an overnight stay
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Reveal Your Customer’s Full Experience
Thank You!
Springfield | Branson | Bentonville | Kansas City
www.h2rmarketresearch.com | 417.877.7808
@H2RMktResearch
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SEATTLE SOUTHSIDE
Travel Impacts, 2003-2019p
May 2020
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SEATTLE SOUTHSIDE
TRAVEL IMPACTS, 2003-2019P
TUKWILA, SEATAC, & DES MOINES
Prepared for the
Seattle Southside Regional Tourism Authority
3100 S. 176th Street
Seattle, Washington 98188
Prepared by
Dean Runyan Associates, Inc.
833 S.W. Eleventh Avenue, Suite 920
Portland, Oregon 97205
(503) 226-2973
www.deanrunyan.com
May 2020
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DEAN RUNYAN ASSOCIATES PAGE 1
SEATTLE SOUTHSIDE TRAVEL IMPACTS, 2003-2019P
TUKWILA, SEATAC & DES MOINES
This study, prepared for Seattle Southside Regional Tourism Authority, documents the
economic significance of the travel industry in the Seattle Southside area of King County
from 2003 through 2019. The estimates for 2019 are preliminary. The separate estimates
for Tukwila, SeaTac and Des Moines are reported at a summary level for 2019 only.
Overnight visitor volume estimates and average spending estimates for the larger Seattle
Southside are also provided in this report.
REPORT CONTENTS
The main body of this report contains five sections:
• Seattle Southside Travel Trends (annual estimates of economic impacts and lodging
sales for the larger Seattle Southside)
• Travel Impacts in Des Moines, SeaTac and Tukwila (summary estimates for 2019p,
only)
• Visitor Volume (major trends and characteristics)
• Detailed Spending and Visitor Volume Tables
• Detailed Impact Tables
The report also contains appendices that provide an overview of methodology and
definitions of terms and concepts.
INTERPRETATION OF IMPACT ESTIMATES
Users of this report should be aware of the following with respect to the interpretation of
these estimates:
• All monetary estimates in this report are expressed in current dollars. There is no
adjustment for inflation.
• Sub-county estimates such as contained in this report are necessarily less reliable
than county and state level estimates because of data limitations. Nonetheless,
these estimates were generally prepared with the same methodology used to
estimate county and state level travel impacts and visitor volume.
69
DEAN RUNYAN ASSOCIATES PAGE 2
$0
$50
$100
$150
$200
$250
$300
04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
Lo
d
g
i
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a
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SEATTLE SOUTHSIDE TRAVEL TRENDS
Travel spending in the Seattle Southside increased by 2.3 percent from 2018 to 2019p.
Travel-generated earnings and tax receipts also increased. This was the tenth consecutive
year of growth in the Seattle Southside travel industry.
Spending Earnings Employment
($Millions) ($Millions)Local State Total
2003 395.9 124.3 4,480 15.3 21.4 36.7
2004 422.5 130.2 4,540 16.2 22.7 38.9
2005 461.4 141.9 4,790 17.8 24.5 42.3
2006 486.9 146.8 4,720 22.7 25.6 48.3
2007 528.0 157.7 4,880 25.2 27.7 52.9
2008 532.3 158.0 4,810 25.7 27.6 53.3
2009 463.9 149.5 4,530 22.7 24.9 47.6
2010 473.5 147.6 4,350 22.7 25.1 47.9
2011 504.9 149.8 4,340 24.0 26.4 50.4
2012 537.5 157.2 4,460 25.7 28.2 53.9
2013 564.6 169.2 4,640 27.3 29.7 57.0
2014 620.5 184.5 4,840 30.3 32.5 62.8
2015 665.0 194.7 4,870 33.3 35.1 68.3
2016 690.5 203.2 4,910 34.9 36.9 71.8
2017 721.2 211.8 4,950 36.5 38.6 75.1
2018 770.3 230.0 5,120 38.5 40.8 79.2
2019p 787.9 240.3 5,110 39.1 41.8 80.9
Annual Percentage Change
17-19p 2.3 4.5 -0.2 1.6 2.5 2.1
03-19p 4.4 4.2 0.8 6.0 4.3 5.1
Seattle Southside Travel Trends
Tax Receipts ($Millions)
Seattle Southside Lodging Sales Lodging sales (in current
dollars) were $281.6
million in 2019
(preliminary), an increase
of 0.2 percent over 2018.
Source: Washington State
Department of Revenue. Lodging
sales calculated from 1% Additional
Hotel/Motel tax for Des Moines,
SeaTac and Tukwila.
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DEAN RUNYAN ASSOCIATES PAGE 3
Des Moines,
$10.9
SeaTac,
$186.8
Tukwila,
$83.4
TRAVEL IMPACTS IN DES MOINES, SEATAC AND TUKWILA
The preliminary 2019 impact estimates for the three cities within the Seattle Southside are
shown below. Lodging sales are shown in the pie chart. In general, these estimates are a
function of lodging sales, the number of private homes for visiting friends and relati ves, and
the volume of sales in other types of establishments that serve visitors (e.g., restaurants,
entertainment and retail). (Note: These small area estimates are necessarily less reliable
than the estimates for the larger Seattle Southside due to data limitations.)
Travel Tax Receipts
Spending Earnings Employment Local State Total
($Million)($Million)(jobs)($Million)($Million)($Million)
Des Moines 49.4 15.7 330 2.5 2.6 5.1
SeaTac 311.0 101.5 2,130 15.4 16.5 31.9
Tukwila 427.5 123.1 2,650 21.2 22.7 43.9
Seattle Southside 787.9 240.3 5,110 39.1 41.8 80.9
Travel Impacts within Seattle Southside, 2019p
Lodging Sales within Seattle Southside
2019p
Source: Washington State Department of Revenue.
Lodging sales calculated from 1% Additional Hotel/Motel
tax for Des Moines, SeaTac and Tukwila.
Although Tukwila has the
greatest estimated visitor
spending, SeaTac has 66
percent of all lodging
sales. However, its share
of visitor-related sales in
food services,
entertainment and retail is
comparatively smaller.
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DEAN RUNYAN ASSOCIATES PAGE 4
3.0
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
4.0
4.1
4.2
03 05 07 09 11 13 15 17 19p
Vi
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N
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g
h
t
s
(
M
i
l
l
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n
s
)
0%20%40%60%80%100%
Washington State
King County
Seattle Southside
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
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p
Vi
s
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(
M
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)
VISITOR VOLUME
All Overnight Person-Nights
Hotel/Motel/STVR
Visitor-Nights, 2019p
(Percentage of All Overnight)
Visitor Air Arrivals at SeaTac International Airport
Domestic Flights
The estimate of all overnight
visitor-nights (the number of
nights that all individual visitors
stayed in the Seattle Southside) is
shown in the top line chart. The
overall trend in visitor volume
corresponds to the trends in
travel spending and related
impacts shown previously. In
2019p volume increased about
1.5 percent.
More than eighty percent of all
visitor nights in the Seattle
Southside are attributable to
Hotel/Motel/Rented Home stays.
This percentage is much greater
than for King County and
Washington State. (See bar chart
to left. STVR are short term rental
homes subject to lodging tax.)
Visitor air arrivals (domestic only)
to SeaTac airport have also
increased for the tenth year in a
row. (Note: Visitor air arrivals do
not include return flights that were
initiated at SeaTac, nor passengers
making connecting flights.)
Source: U.S. Department of
Transportation Airline Origin and
Destination survey.
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DEAN RUNYAN ASSOCIATES PAGE 5
DETAILED SPENDING AND VISITOR VOLUME TABLES
The following three tables are inter-related. The first, Visitor Spending by Type of Traveler
Accommodation, reports the total annual spending estimates for each type of visitor. The
second, Average Expenditures for Overnight Visitors, reports the average daily and average
trip expenditures for each type of visitor for 2019p. The third table, Overnight Visitor
Volume, reports annual visitor volume for each type of visitor. Volume is broken out in
terms of trips and nights and visitors (persons) and travel parties. In general, multiplication
of an average spending numbers with the appropriate volume number will yield the annual
total spending number for that type of visitor. (See appendix B.)
Day travel represents less than four percent of all visitor spending in the Seattle Southside
($2.5 million in 2019p). Due to data limitations, reliable estimates of visi tor volume and
average expenditures cannot be reported for day travel.
2010 2012 2014 2015 2016 2017 2018 2019p
All Overnight 447.1 506.9 588.4 634.1 659.3 688.0 734.4 751.1
Hotel, Motel, STVR* 431.3 489.5 570.2 615.9 640.6 668.7 714.2 730.4
Other Overnight 15.8 17.4 18.2 18.2 18.7 19.2 20.2 20.7
Day Travel 18.9 21.5 23.7 24.4 25.0 25.9 27.5 28.4
Spending at Destination 466.0 528.4 612.1 658.5 684.3 713.9 761.9 779.5
Note: Destination spending does not include ground transportation expenditures for travel to other
Washington destinations. STVR stands for short term vacation rentals or rented homes subject to lodging tax.
Visitor Spending by Type of Traveler Accommodation ($Million), 2010-2019p
Party Length of
Day Trip Day Trip Size Stay (nights)
Hotel, Motel, STVR $438 $1,039 $208 $487 2.1 2.4
Other Overnight $148 $427 $56 $163 2.6 2.9
All Overnight $389 $968 $183 $451 2.2 2.4
Travel Party Visitor (Person)
Average Expenditures for Overnight Visitors, 2019p
2017 2018 2019p 2017 2018 2019p
Hotel, Motel, STVR 3,339 3,454 3,515 1,576 1,640 1,666
Other Overnight 575 588 590 256 262 263
All Overnight 3,914 4,043 4,105 1,832 1,902 1,929
2017 2018 2019p 2017 2018 2019p
Hotel, Motel, STVR 1,425 1,474 1,500 665 691 703
Other Overnight 160 164 164 71 73 73
All Overnight 1,585 1,638 1,664 736 764 776
Visitor-Trips (000)Party-Trips (000)
Overnight Visitor Volume, 2017-2019p
Visitor-Nights (000)Party-Nights (000)
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DEAN RUNYAN ASSOCIATES PAGE 6
DETAILED IMPACT TABLES
The following table shows spending estimates for all categories of visitors, including day
travel, earnings and employment estimates by industry sector, and travel-generated tax
receipts.1
2010 2012 2014 2015 2016 2017 2018 2019p
Total Direct Travel Spending ($Million)
Destination Spending 466.0 528.4 612.1 658.5 684.3 713.9 761.9 779.5
Other Travel*7.5 9.1 8.4 6.5 6.2 7.3 8.4 8.4
Total Direct Spending 473.5 537.5 620.5 665.0 690.5 721.2 770.3 787.9
Visitor Spending by Commodity Purchased ($Million)
Accommodations 158.4 178.5 219.9 250.1 262.8 275.7 294.9 295.9
Food Service 130.0 149.2 171.1 183.8 192.7 201.7 216.6 228.0
Retail, Entertainment & Local Transport 177.6 200.7 221.1 224.6 228.8 236.5 250.4 255.7
Destination Spending 466.0 528.4 612.1 658.5 684.3 713.9 761.9 779.5
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.111.1 118.5 138.6 147.1 154.3 161.6 175.9 184.9
Retail, Entertainment & Local Transport 36.5 38.7 45.9 47.7 48.9 50.2 54.1 55.4
Total Direct Earnings 147.6 157.2 184.5 194.7 203.2 211.8 230.0 240.3
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.3,190 3,270 3,580 3,620 3,670 3,720 3,870 3,870
Retail, Entertainment & Local Transport 1,160 1,190 1,260 1,250 1,240 1,230 1,250 1,250
Total Direct Employment 4,350 4,460 4,840 4,870 4,910 4,950 5,120 5,110
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts 22.7 25.7 30.3 33.3 34.9 36.5 38.5 39.1
State Tax Receipts 25.1 28.2 32.5 35.1 36.9 38.6 40.8 41.8
Total Local & State 47.9 53.9 62.8 68.3 71.8 75.1 79.2 80.9
Details may not add to totals due to rounding.
*Other Travel reflects ground transportation expenditures for travel to other Washington destinations.
Travel Impacts, 2010-2019p
Seattle Southside
1 The economic impacts for the Seattle Southside do not include travel to and from SeaTac International
Airport. This passenger air travel accounted for 16,100 jobs with earnings of $1.7 billion in 2019.
74
Shu$le
Bus
Economic
Impact
Study
Prepared
by:
7
5
2
PURPOSE
The
purpose
of
the
Sea$le
Southside
Shu$le
Bus
Economic
Impact
Study
was
to
es>mate
shopping
revenue
generated
from
shu$le
bus
riders
as
well
as
provide
a
profile
of
those
who
used
the
shu$le
to
visit
the
WesCield
Southcenter.
Project
Overview
TARGET
AUDIENCE
The
Sea$le
Southside
Shu$le
Bus
survey
was
conducted
among
those
riding
the
Shu$le
Bus
for
the
past
9
months.
The
surveys
were
distributed
by
shu$le
drivers
and
passengers
were
asked
to
fill
out
the
surveys
and
return
them
upon
depar>ng
the
shu$les.
SAMPLE
A
total
of
1,865
respondents
were
interviewed
for
this
study
providing
a
maximum
margin
of
error
of
+/-‐2.3%
at
a
95%
confidence
interval.
7
6
Execu>ve
Summary
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7
4
▪Travelers
to
the
Sea$le
Southside
area
only
use
a
handful
of
hotels
to
catch
the
shu$le,
and
most
hear
about
the
service
at
the
front
desk
of
their
hotel.
▪Those
who
use
the
shu$le
to
travel
to
the
WesCield
Southcenter
are
primarily
shopping
and
dining
and
spend
around
3
hours
at
the
shopping
center.
▪Shu$le
riders
spend
around
$172/person*
on
their
trip
to
the
shopping
center,
with
those
visi>ng
from
outside
the
United
States
spending
more
($190
vs.
$158).
▪Shu$le
riders
were
very
sa>sfied
with
their
experience
on
the
shu$le
bus.
More
than
nine
in
ten
riders
indicated
they
were
somewhat/very
sa>sfied
with
the
friendliness
of
the
driver,
the
cleanliness
of
the
shu$le
and
the
comfort
of
the
ride.
Addi>onally,
85%
indicated
they
were
sa>sfied
with
the
>meliness
of
the
shu$le.
▪Finally,
eight
in
ten
shu$le
riders
would
recommend
the
services
to
their
friends.
However,
the
word-‐of-‐mouth
buzz
is
fairly
low
(5%).
Giving
visitors
the
tools
they
need
to
recommend
the
shu$le
service
will
only
help
increase
ridership
and
the
amount
of
money
spent
in
the
area.
Sea;le
Shu;lebus
Offers
Great
Service
4
*An outlier is an observation in a data set that lies a substantial distance from other observations. These unusual observations can have a disproportionate effect
on statistical analysis, such as the mean, which can lead to misleading results. Only those who spent more than $25 and less than $1,000 were included in the
calculations.
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Thank
You!
Know
Your
Customer
417.877.7808
1717
E
Republic
Road,
Suite
C
Springfield,
MO
65804
@H2RMktResearch
agarou;e@h2rmarketresearch.com
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