Passion 1 - I Love New York

While preparing for a Travel and Tourism Management course syllabus, I came upon this case study on New York. For all who actually LOVE New York.... cheers!

CASE STUDY

I LOVE NEW YORK - A Classic Case Study of Destination Marketing

New York, during the mid seventies, was passing through critical times. It had problems of law and order, and had an unenviable reputation of an unsafe place to live and visit. Its economy was in bad shape, business was moving out and workers laid off. For the year 1980, the official economists of the city of New York predicted mild recession, loss in tax revenue and loss of 30,000-60,000 jobs. However, in early 1981, when the situation was assessed, much to everyone’s surprise, tax revenue was well ahead of the previous year, sales-tax income jumped and there was no loss of jobs.

This became possible due to a very successful marketing campaign launched on behalf of New York City to attract tourists. The campaign was so effective that retail sales in New York City increased sixteen percent in 1980, with only seven percent increase registered for the nation as a whole. Similarly, sales-tax revenue increased due to more sales. Six thousand new hotel rooms were added to the existing inventory of New York City in one year. Average occupancy of the city’s hotels was eighty-two percent – a remarkable achievement. New York’s surprising ability to withstand the impact of recession was explained only by rapid growth of tourism stimulated by a new destination marketing campaign.

In 1976, Governor Carry of New York created a Division of Marketing and Advertising with William S. Doyle as its head to change the image of New York City and to make it a tourist Mecca. The story of ‘I Love New York’ campaigns as it developed in the next few years has been told by William Doyle in his words:

RESEARCH

As a first step, I committed the entire year’s advertising budget of $2,000,000 for market research.

Research conducted by Consumer Behaviour Inc. screened more than 3,000 people and interviewed approximately 1,800 vacationers from adjacent states and Canada. From these interviews, a psychographic profile was created: what they sought in a vacation and how they perceived New York as a place to fulfill their needs. Our state had two attractive ‘products’ – the research revealed. One is Broadway theatre, the other is the outdoors, both in summer and winter.

From this information and other ideas, a comprehensive five-year marketing plan was developed and presented to New York State legislative leaders in May 1977. With bipartisan support, $4.3 million was approved for the fiscal year ending March 31, 1978. “I LOVE NEW YORK” was the theme. Mountains, lakes and the Broadway theatre were the subjects and television was the principal advertising medium.

Promotion

Commercials placed in every market in New York State, major markets in surrounding states of the North-East and in Ontario and Quebec in Canada launched the first phase of ‘I Love New York’ campaign in June 1977.

The winter promotion began appropriately and spectacularly, on Valentine’s Day 1978; a cast of some eighty Broadway actors, actresses, singers and dancers from nine shows performing the “I Love New York” theme song composed by Steve Karmen in the television commercials was placed in twelve markets. An added attraction was an 800 toll-free telephone number for viewers to request information.

The advertising ran for five weeks, and the total number of calls asking for the brochure was 93,800.

Magazine and print advertisements and radio commercials were used to supplement the campaign, but the main thrust was on television.

Monitoring

The results of the first year’s programme were substantial:

a) The earnings from travel activity in the summer of 1977 were ten percent up, thereafter earnings rose by 19.9 percent

b) Overall increase during the year was nine percent

c) Restaurant revenue in New York City rose by an estimated ten percent

d) Hotel occupancy in New York City was at eighty five to ninety percent. As a result of the spectacular success, the state legislature increased the budget for tourism campaign from 4.2 million dollars to 10.5 million for the fiscal year 1979.

Simultaneously, the campaign was further strengthened by airlines flying out of New York joining hands to spread the message of “I LOVE NEW YORK” to markets where New York state could not penetrate due to limitations of funds. Their enthusiasm led to an enlarged role. They spread the message of “I LOVE NEW YORK” into major fly markets through their own television commercials. The campaign became so popular that “I LOVE NEW YORK” sweat-shirts, buttons and other similar publicity items appeared all over the country. The state legislature has continued funding of “I LOVE NEW YORK” campaign with excellent results for New York City and the rest of the state.

Successful Tourism Management
Volume II by Pran Nath Seth