Okaloosa County BOCC — November 5, 2013 — reading text

Pg. 559 Packet Pg. 560 Packet Pg. 561 Packet Pg. 562 Packet Pg. 563 Packet Pg. 564 Packet Pg. 565 Packet Pg. 566 Packet Pg. 567 Packet Pg. 568 Packet Pg. 569 Packet Pg. 570 Packet Pg. 571 Packet Pg. 572 Packet Pg. 573 Packet Pg. 574 Packet Pg. 575 Packet Pg. 576 Packet Pg. 577 Packet Pg. 578 Packet Pg. 579 Packet Pg. 580 Packet Pg. 581 Packet Pg. 582 Packet Pg. 583 Packet Pg. 584 Packet Pg. 585 Packet Pg. 586 Packet Pg. 587 Packet Pg. 588 Packet Pg. 589 Packet Pg. 590 Packet Pg. 591 Packet Pg. 592 Packet Pg. 593 Packet Pg. 594 Packet Pg. 595  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: December 17, 2013 TO: Honorable Chairman and Members of the Board FROM: Sunil Harman SUBJECT: NW Florida Regional Airport (VPS) Branding Research DEPARTMENT: Airport BCC DISTRICT: All STATEMENT OF ISSUE: The Board of County Commissioners is requested to accept the information and interim report update on the research efforts through Market Dynamics Research Group (MDRG) for the market positioning and naming (branding) of NW Florida Regional Airport (VPS) to most effectively identify the airport by the market it serves. BACKGROUND: In mid-October 2013, the Department of Airports through the Purchasing Department sought to secure the services of a research firm to conduct an objective analysis on how to better market the airport. Four firms were contacted to provide quotes, two responded and MDRG was contracted and retained through a purchase order as attached. The firm has prepared and interim update report attached herewith for the Board's information. OPTIONS: Information Item RECOMMENDATIONS: Information Item RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 596 Positioning and Naming Report December 5, 2013 Packet Pg. 597 Table of Contents Research Design 3 Key Insights 7 Detailed Findings 10 Airport Selection 11 Perceptions of VPS and Competing Airports 14 Naming 17 Appendices 20 Limitations of Methodology 21 Moderator’s Guide 22 Intercept Screener 23 Packet Pg. 598 2 Research Design Packet Pg. 599 Background  The Okaloosa County Airport system is comprised of three airports: Destin Airport (DTS), Northwest Florida Regional Airport (VPS), and Bob Sikes Airport (CEW). DTS is predominately utilized by large private and corporate aircraft. VPS is the commercial service airport for the Florida Gulf Coast. Bob Sikes Airport (CEW) services the defense and aerospace industry.  VPS is the commercial service airport for the area, with five airlines offering non-stop service to Atlanta, Charlotte, Dallas, Houston, and Washington, DC. More than 800,000 passengers per year utilize the airport. In 2007, a new terminal was completed. VPS competes with airports at Pensacola and Panama City for visitors to the area. Both airports are about one hour on either side of VPS.  Approximately five years ago, VPS was renamed from Okaloosa Regional Airport to Northwest Florida Regional Airport in an attempt to clarify its location and identity, given the general lack of consumer awareness of Okaloosa County. VPS’s location within Eglin Air Force Base and its labeling as “Fort Walton Beach” at airport gates further exacerbate consumer confusion. Additionally complicating the identity issue is the airport IATA code, VPS, which stands for Valparaiso—an equally unknown geographic area. The IATA code, however, cannot be changed.  Currently all three airports are separately named and consequently lack a cohesive branding platform. The Okaloosa County Board of County Commissioners seeks to develop a naming and branding platform that identifies and unifies the three airports and ultimately promotes the airports and increases traffic. However, given the unique natures of CEW and DTS, it has been determined that the naming and branding platform will exclude these airports and focus on VPS. Accordingly, the research reported herein also focuses on VPS.  The research seeks input from leisure and business travelers to identify the most compelling names and positioning opportunities for VPS. It consists of a qualitative exploratory phase and a quantitative survey phase. This report covers the first phase. Packet Pg. 600 4 Objectives  The overall objective of the research is to explore perceptions of and experiences with airports in close proximity to Okaloosa County including Okaloosa County airports. The results of the combined research will identify the optimal names, determine the appeal of a combined naming structure, and uncover the optimal positioning for the airports. Specific objectives include:  Explore perceptions of the airport and how it compares to other airports in the area (specifically Pensacola and Panama City airports), and understand what sets the airport apart from these competing airports  Understand consumer behavior, including selection of, preferences for, and barriers to using an aiport among the competitive set in Northwest Florida  Explore ways the airport enhances the leisure/business travel experience  Explore expectations for and experience with the airport—comfort, amenities, convenience, easy in and out, easy to navigate, etc.  Explore the role of airport convenience in the selection of beach destinations  Explore sources of possible alternative names to describe VPS Packet Pg. 601 5 Methodology  MDRG conducted in-depth intercept interviews (IDIs) at VPS. With the cooperation and assistance of airport staff, two employees were stationed to intercept and interview non-local travelers after they had passed through the TSA security checkpoint. Travelers were approached while they awaited flights. MDRG screened potential respondents to reflect the target consumer and, if qualified, invited them to participate in a 15-20 minute in-depth interview. Respondents were offered a “Fly VPS” t-shirt and mug as an incentive for their participation. TSA Security Intercept 15-minute IDI Checkpoint Screener + Incentive  Over two days, with a goal of 25-30 interviews, MDRG conducted 28 interviews.  Respondents were screened to ensure they reflected the target consumer:  Either have primary or shared responsibility for leisure travel decisions for the household  Are a leisure/business travel visitor to the Okaloosa County/Walton County area (local residents were excluded from the research)  Are at least 25 years old  Do not work for an affiliated industry Packet Pg. 602 6 Key Insights Packet Pg. 603 Key Insights 1. Unsurprisingly, the main factor that determines airport selection is proximity to the final destination. Travelers pick the airport that is closest to where they are staying or spending most of their time. Some, however, will go out of their way if it means paying less.  For the most part, when planning a trip, travelers look up the airport that services the area they are planning to visit. If visiting a city, the major airport is usually easy to find; for areas like Okaloosa County, finding the correct airport may be more difficult.  If multiple airports serve the same area, proximity and convenience still tend to be the main deciding factors, but cost can also play a role. Many VPS visitors said they would choose a less convenient airport if the price difference were significant. Those for whom proximity is key said they do not mind paying more to fly into an airport closer to their destination. 2. Proximity remains key for travelers visiting Okaloosa County beaches. However, in some cases travelers will choose to fly into VPS when visiting Pensacola or Panama City – or vice versa – due to limited flight schedules or their preferred airline serving a particular airport.  Some travelers said they had occasionally flown into VPS and driven an hour to either Pensacola or Panama City. In some cases, this was because a preferred airline only served VPS, or because they could fly more directly into VPS. Some travelers said VPS simply offers more flights, making it easier to schedule around other responsibilities, such as their work schedule.  In other cases, particularly those in which travelers had opted to use the Panama City or Pensacola airport and travel to the Destin-Fort Walton Beach area, the rationale centered mainly on significantly lower flight costs. 3. The most common ways travelers refer to the airport are “Fort Walton Beach” and by the airport’s IATA code, “VPS.” The official name of the airport, Northwest Florida Regional, is considered vague and “a mouthful.”  Few VPS visitors referred to the airport by its official name, mainly because they were unaware of it. Those who did know the name found it too burdensome and preferred to use the simple “VPS” code or the primary destination associated with the airport, which turned out to be Fort Walton Beach. Many who preferred the latter said that is simply what they had heard the most, particularly from locals they encountered while visiting. Packet Pg. 604 8 Key Insights 4. Many travelers prefer to use smaller airports, but this fails to distinguish VPS from its local competition due to the similarly small size of Panama City and Pensacola’s airports. Among small airports, however, VPS is known for being clean, well organized, and efficient, and offering plentiful flights and amenities.  VPS visitors said smaller airports are easier to navigate, have shorter lines and TSA screening wait times, and generally make the travel process quicker and less stressful.  On the other hand, smaller airports can also be maintained more poorly than larger airports, or not as organized. One respondent said small airports can be “backwards,” meaning they do not operate as efficiently as larger airports or offer as much comfort. VPS avoids these pitfalls, and travelers believe it exceeds expectations as a result. 5. New travelers to the Okaloosa County beach area depend on the airlines, booking websites, or word of mouth to plan their travel, local influence should not be overlooked.