1. September 2009 Houston Visitor Profile Calendar Year 2008

2. 2 © TNS 2009 Table of contents Introduction and Purposes of Research4 Glossary5 Research Methods 6 Topics 8 Brief Abstract9 Executive Summary/Implications10 Results of TravelsAmerica Research16 Volume 17 Visitor Types18 Trip Purpose 19 Visitor Source 20 Visitor Demographics 22 Trip Planning/Booking 24 Trip Characteristics 27 Destinations within Texas 33 Destination Competitors34 Satisfaction33

3. 3 © TNS 2009 Table of contents– (con’t) Results of Follow-up Research36 Demographics37 Attribute Importance 39 City Destination Preference 41 City of Residence Evaluation 44 City Opinions/Ratings 45 Future Visitation 52 Advertising Awareness: General 53 Advertising Awareness: Specific Houston CVB Ads 60 Website Usage 72 Houston Visitors: Choices and Characteristics83 Final Comments 89

4. 4 © TNS 2009 Introduction and Purposes of the Research TNS is pleased to present the first TravelsAmerica report for the Greater Houston Convention & Visitors Bureau (CVB). This online (data collection) project is conducted continuously throughout the year by TNS as a nationwide syndication. The results enable the Greater Houston CVB to assess visitor volumes and build a profile of leisure visitors to the area, specifically: Volume and source of visitors Basic demographics of age, number of people in household, average household income Trip characteristics such as day vs. overnight, business travel, travel expenditures, length of stay, activities selected Mode of transportation includes air, own auto/truck, and other choices Visitor residence by state and selected DMAs. In addition, a separate follow-up survey of Houston visitors measures the “whys behind visitation,” advertising effectiveness/ROI, and web usability such as: Important aspects of choosing a destination and travel planning and booking Perceptions, motivators, and interest in Houston vs. competitors Awareness, recall, and influence of ads Impact of website on brand, affinity, and purchase intent. The report continues with a description of the research methods, then an Executive Summary. The following Results of the Research section includes detailed findings.

5. 5 © TNS 2009 Glossary TermDefinition DMADesignated Market Area: Counties that share the same primary TV broadcast signals (210 DMAs in US) Calendar Year (CY)January 1, 2008 through December 31, 2008 In-StateTexas Person-TripTotal person-trips are all trips taken by all people; i.e. a couple taking three trips counts as six (two people, each taking three trips) Respondent/Household LevelRespondent information – one count per respondent Source of VisitorsResidence of visitors State/Region LevelInformation about all trips taken to a particular state/region (each trip to an area counts) State VolumeAll trips taken to/within the state Travel PartyTraveler plus all companions, including children TripTravel 50 miles or more (one-way) away from home or stayed overnight. Excludes commuters or commercial travel (flight attendants, commercial vehicle operator). This eliminates some leisure day trips, such as some visitors from Galveston, since the distance is about 50 miles Trip LevelInformation about all trips – each trip counts Trip VolumeAll trips summed together FutureView TM TNS’ FutureView TM identifies five consumer categories: Future Shapers, Future Makers, Today Consumers, Yesterday Consumers, Yesteryear Consumers. Of those, “Future Shapers” quickly adopt new products and influence others. They share seven traits: value authenticity/originality, well informed/involved, individualistic, time-poor, socially responsible, curious/open-minded/receptive to new ideas, and advocates of new ideas – they spread the word VisitorPerson who has visited Houston in the past month; all are US residents, thus, travel is domestic travel only (domestic consumer).

6. 6 © TNS 2009 Research methods The syndicated TravelsAmerica study collects data via a web based methodology. Sample is selected from the TNS 6th dimension USA Panel with e-mail invitations sent monthly to representative households. TNS constantly strives to keep Internet penetration high and panel fatigue low by carefully monitoring and limiting the number of contacts with each household. Each month, potential respondents receive an e-mail request to participate in the study; TNS targets a response rate of 45%. The field period runs for two weeks each month, usually starting in the middle of the first week. To enhance relevance, the data are weighted two ways: Demographic weights adjust respondents by demographic factors such as region, age, income, household size, and marital status to closely represent the characteristics of US households Trip and state projection calculations counts every trip taken by respondents for total trips taken. Detailed information collected for up to three trips in the past month is projected to the actual number of trips taken. In the case of city level calculations, each trip taken to that city counts. A few tables represent person-trips – these take into account the immediate travel party size for each trip as well. For projections, the counts are weighted to reflect the actual number of US households and total trips. TNS supervises all fieldwork, editing, coding, and tabulation of the results. This special report focuses on results for Greater Houston. For the calendar year ending December 31, 2008, respondents (does not include others in travel party) for Houston and total are shown below. CY 2008 #of Travelers (Unweighted) CY 2008 # of Travelers (Weighted)Region 514512Houston Visitors 53,86852,589Total for TravelsAmerica

7. 7 © TNS 2009 Research methods continued For the follow up survey three groups who had completed the TravelsAmerica study in 2008 were re-contacted. Those groups include: Texas residents Houston residents Houston visitors Potential respondents received email invitations to participate in the follow up survey. The field period ran from August 11, 2009 – August 24, 2009. #of RespondentsSample Group 326Past Year Overnight Leisure Visitors 309Houston Residents 259Texas Residents Outside Of Houston 124Non-Texas Residents

8. 8 © TNS 2009 Topics Derived from the TNS TravelsAmerica syndication, this first annual report prepared for the Houston CVB for Calendar Year 2008 addresses these topics in this order: Volume of visitors Visitor types (business/leisure; day/overnight) Purpose (business/leisure) and source (Texas resident or not) Source of visitors (top states and top DMAs) Percent of Texas residents visiting Houston Visitor demographics Trip planning (timing and source of information) Trip booking methods Trip characteristics: purpose, transportation, day/overnight, accommodations/ length of stay, travel party, activities, expenditures Destinations: Houston vs. other Texas destinations Destinations: Houston competitors Satisfaction with Houston.

9. 9 © TNS 2009 Brief abstract The recession hits Texas and Houston visitation especially hard – total visitors (person- trips), drop more than for the overall US. Bright spots include: High level of visitation from other Texas metro areas – suggesting a strong degree of support from the drive market, which may be more resilient, long term, during downturns. Stronger than average business visitors with higher per trip spending. Future intent to visit remains high, especially in the next six months (56% of follow-up respondents), indicating possibly better-than-expected visitation rates. Overnight visitors spend an average of four nights on their trip to Houston, notably above the norm (4.0 vs. 3.2 average US). Houston is the preferred Texas destination when looking for exciting urban activities – variety of dining option, cultural/performing arts, culturally diverse (preferred over other Texas cities among follow-up respondents). Primarily, Houston leisure travelers visit their in-town friends or family, limiting spending on lodging and transportation. Targeting these travelers to stay in the city or targeting leisure travelers to visit outside family/friend connections could improve per trip spending.

10. Executive Summary/Implications

11. 11 © TNS 2009 Executive summary/implications Importance of tourism to Houston Several measures underscore the importance of tourism to Houston: Volume of Visitors. Nationwide economic decline has cause a considerable reduction in tourism, hitting Houston especially hard as the decline in trips over the past two years slips at almost twice the rate of the national average (-22% vs. -13%), with the majority of the loss occurring in 2008. Travel Spending in Houston. Visitors spend substantial amounts in Houston, averaging $508 for each travel party. As expected, business travelers ($911) spend more than leisure travelers ($416) and overnight visitors ($501 leisure; $1,010 business) spend much more than day-trip visitors ($153 leisure). Spending notably more on lodging and transportation, non-Texas residents ($741) average higher spending levels than Houston residents ($438) and non-Houston Texas residents ($380). Source of Visitors. Texas supplies a slight majority (58%) of Houston visitors; Louisiana ranks a very distant 2nd place (7%). Trip Purpose. Most visitors to Houston are tourists (not business travelers), however Houston attracts more business travelers than the national average (21% Houston, 15% all trips). With proportionately more business travelers, leisure trips fall slightly behind the norm (67% Houston; 77% all trips) but still make up two-thirds of all Houston travel. Of all Houston leisure trips, most are overnight (78%) with a substantial number of day trips coming from within the Houston residents (4.8 per year). Timing. Typical of most leisure travel, the heaviest travel to Houston peaks in the Summer months (June through August). Business Travel. Business travel behaviors/choices differ from leisure travelers; for example, they more often stay in hotels/motels and travel alone. Houston attracts a larger proportion of business travelers than other destinations (21% Houston; 15% total) while also capturing a larger share of personal business/other (12% vs. 8%).

12. 12 © TNS 2009 Executive summary/implications – (con’t) Profile: trip and travel characteristics Demographics: Houston Visitors Resemble Visitors Elsewhere, With Some Variations: A higher proportion are married and more likely to live in a household with three or more individuals, suggesting a higher likelihood of family focused travel. Houston visitors report higher incomes than other US travelers, particularly non-Houston residents. Ethnicity comparisons show a larger proportion of African American visitors than for US travelers as a whole (12% vs. 8%) – particularly those from Dallas-Ft. Worth, Austin, or San Antonio (15%) A slightly higher proportion are categorized as Future Shapers/Makers (34% Houston, 30% all travelers). Travel Planning Horizons Are Short. Many (46%) Houston visitors decide to take the trip within two weeks of departure – similar to the total US (42%). As expected, leisure overnighters (34%) less frequently plan to visit on short notice than leisure day-trippers (70%). Houston residents are the most spontaneous with over two-thirds (72%) deciding to visit within two weeks. Travelers Primarily Rely on “Offline” Information Sources. Houston visitors rely primarily on their own experience (28%) and friends/relatives (19%) to gather travel information, similar to other travelers. Houston Visitors Most Often Book “Online.” More Houston visitors rely on online booking sources (56% vs. 50% all travelers), booking at least some aspect of their trips (air/hotel/entertainment/etc.) that way, and more of them book via destination and travel provider websites than average travelers. Most Visitors Drive. Two-thirds (66%) drive to Houston, slightly less than overall travelers (70%). Not surprisingly, the greater proportion of overnight business travel to Houston pushes air travel above average levels (24% Houston visitors, 18% all travelers). Overnighters Spend More. Because of the additional time to see/do more things and because they incur lodging expenses, leisure overnight visitors spend much more (3 times) than day-trippers ($501 vs. $153). Business overnighters spend the most ($1,010). On average, Houston leisure overnight visitors stay slightly longer than business travelers (4.0 vs. 3.6).

13. 13 © TNS 2009 Executive summary/implications – (con’t.) Houston Relies on Texas Tourism Houston Attracts Texans. Proximity plays a substantial role in Houston tourism. Over half (58%) of visitors live in Texas; Louisiana, in second place, contributes far fewer (7%). The top seven city sources are in Texas (led by Dallas-Ft. Worth, Houston, Austin and San Antonio); Chicago and New York contribute 2% each, Washington, DC trails at 1%. Geography influences competitive market set. Dallas-Ft. Worth, Austin, and San Antonio residents prefer southern or western states for additional vacation travel while New York, Chicago, and Washington DC residents take additional vacations to the Northeast. Despite this polarization, both groups most often selected Florida in the past three years. Houston Tends to Trail San Antonio in Image and Attribute Rankings Preference for Houston depends on visitation. Past year overnight leisure travelers prefer Houston on most destination attributes. However, travelers as a whole more often choose San Antonio when comparing Texas metropolitan areas. San Antonio excels (over Houston) on attributes ranked most important in a travel destination including “good value for the money”, “friendly/welcoming” and “lots to see/do.” Travelers most often choose Houston for urban activities including “variety of dining options” and “cultural/performing arts.” Opinion ratings of Houston stay generally high. The majority of visitors perceive Houston positively in overall opinion (61%), value for the money (68%), experience in Houston (76%), likely to return (78%) and would recommend (72%). Comparatively, San Antonio visitors tend to rank San Antonio a bit higher (79%, 75%, 86%, 83%, 87% respectively).

14. 14 © TNS 2009 Executive summary/implications – (con’t.) Advertising Awareness Directly Relates to Distance from Houston and Visitation Houston ad awareness second among Texas cities. Although Houston trails San Antonio in overall advertising awareness, it surpasses other Texas cities (Dallas/Ft. Worth, and Austin) with past year visitors and Houston residents contributing the most to Houston ad recall. Electronic media more pervasive than print. Houston's most recalled ads tend to be on TV (59%) followed by magazines (39%) and newspapers (37%). Houston’s own residents are the most likely to recall a Houston TV ad (67%). Specific ZZ Top Commercial made an overall better impression than specific print ads. The commercial improves perceptions of Houston more than twice as often as the print ads (42% vs. 17%). Across the board, commercial and print ads more positively impact past year overnight visitors to Houston than other groups. Advertising effective for Houston and other Texas residents. Advertising encourages roughly one out of 10 visitations. Greater Houston CVB website Must Add Value to Travel Destination website users look for deals. Travelers most often rank “savings/value” as the top desired feature in a travel destination website while “save money” trails other statements about the GHCVB website by its users. This opens an opportunity for Houston to enhance the already high levels of satisfaction among website users. Houston Generates High Levels of Satisfaction Satisfaction Varies by Proximity. Visitors grant Houston high praise (which should generate strong word-of-mouth “advertising”). Non-Texas residents tend to be the most satisfied with their trips.

15. 15 © TNS 2009 Executive summary/implications – (con’t.) Assessment Houston Draws The Business Traveler. As companies continue to cut spending in harsh economic conditions, company travel budgets will continue to decrease. Because business travelers have the largest per trip spending among visitors, it is important for Houston to maintain its business appeal. Promotions targeting the corporate travel decision maker should stress the value of traveling to Houston as a viable business travel option. Houston Visitors Are Within “Easy Reach.” Since many live within easy access to Houston, visitors need less time to plan/decide trips. Thus, marketing can be flexible in media choices, can develop quick promotions, and probably see results faster than destinations which rely on more distant markets. Houston excels at attracting overnight visitors (76% of leisure visitors spend the night) who spend more time there than average (4 vs. 3.2 nights). Houston Leisure Travel Potentially More Lucrative. With over twice the number of nights stayed at private homes than the average traveler (2.9 vs. 1.5), overnight leisure travelers to Houston spend less than one night in a hotel. This dovetails with the unusually high percentage of overnight leisure travelers in town to visit family (77%). Finding ways to encourage these travelers to stay in the city could increasing budgets for lodging and transportation. Tough Competitive Arena Hits Texas Especially Hard. The general downtown noted for US domestic travel hits Texas and Houston harder than other areas. Houston’s dependence on tourism warrants greater attention to building interest in the area and the state overall. San Antonio, specifically, could potentially lure Houston visitors. Messaging. The reluctance of leisure travelers to stay over night in a hotel/motel suggests that Houston’s marketing message could more effectively target that interest group. Promoting the affordability of city accommodations, the relaxation value of a hotel stay, and the less intrusiveness as a houseguest could entice travelers to stay outside of a relative or friend’s home.

16. Results of the Research From TravelsAmerica Syndicated Survey

17. 17 © TNS 2009 Volume of visitors Market Overview (Person Trips): Compared to CY 2006, CY 2008 person-trips drop as follows: All US Trips ( -13%; 939 million from 1.08 billion); Texas (-17%; 67 million from 81 million); Houston (-22%; 9.5 million from 12.1 million). Houston visitors continued to grow in 2007 despite dwindling numbers to Texas. Unfortunately, the declining economy quickly caught up to Houston in 2008 as overall visitation decreased at almost twice the rate of US travel from 2006 to 2008. Q4a. Please indicate the US state(s) visited (Person Trips - proj.) (day or overnight trip) Q4d. Please indicate the US cities(s) visited (Person Trips - proj.) (day or overnight trip) US, Non-Texas 871,714,000 US, Non-Texas 506,332,000 US, Non-Texas 344,539,000 CY 2006CY 2007CY 2008 2006-2008 % Change Type of Person Trips (Visitors) Total US1,084,344,0001,233,242,000938,563,000-13% Total Texas80,625,00076,424,00066,849,000-17% Total Houston12,087,00012,661,0009,488,000-22%

18. 18 © TNS 2009 Visitor types Day/Overnight Varies by Type of Trip: Trips of 50+ miles typically involve an overnight stay for both Business and Leisure trips Houston hosts far more leisure than business visitors. Houston VISITORS by TYPE Base: Houston Visitors Q4d. Please indicate the US cities(s) visited... Person Trips based to Houston Visitors (State Level) PB*: Personal Business/Other Leisure: 67% Business 21% Personal Business/ Other 12% Day 22% Overnight 78%

19. 19 © TNS 2009 Trip purpose/visitor source Overall: Two thirds (67%) of Houston visitors primarily travel for leisure – slightly fewer than for total US visitors (77%), but similar to the state of Texas (72%). Slightly more than half (58%) of Houston visitors live in Texas. 2008 Trip/Visitor Characteristics % of Visitors to State TYPE OF TRIP Base: Visitors to Houston; Texas; US LOCATION OF RESIDENCE Base: Visitors to Houston Q1b. Which of the following was the PRIMARY purpose of trip to... (Household Trip Level – demo wtd, not adjusted for travel party size) Panel: Residence of visitors (Household Level)

20. 20 © TNS 2009 Visitor source by state/DMA Proximity Counts: As noted earlier, slightly more than half (58%) of visitors reside in Texas Nearby Louisiana and heavily populated states such as California and Florida contribute more to Houston’s tourism than other states Texas DMAs, particularly Dallas-Ft. Worth, provide the bulk of Houston visitors; larger US cities also add to the count. Source of Visitors: Top States (2%+) Base: Visited Houston % of Visitors Residing in... Panel: State/DMA residence of those who visited Houston (Household Level) Source of Visitors: Top DMAs (2%+) Base: Visited Houston % of Visitors Residing in...

21. 21 © TNS 2009 Destinations: Houston visitation A Different Viewpoint – How Many Texans and Non-Texans Visit Houston: A third (30%) of Texans have visited Houston in the past three years, many (23%) within the past 12 months. In addition, one in eight (12%) plans to visit within two years Typical of most destinations, Houston draws over half of its visitors from within the state (58%, shown earlier). Non-Texans have many destinations from which to choose, with only a few (2%) visiting Houston in the past three years. However, that group contributes not quite half (42%, also shown earlier) of Houston’s total tourism. NON-TEXAS RESIDENT TEXAS RESIDENT Visitation Patterns for Houston – Household Level, All Travelers Q8a: Please indicate US cities visited for leisure in past three years. Q8b. Please indicate cities visited within the past 12 months. Q8c: Which US cities plan to visit within the next two years for leisure? (Household Level)

22. 22 © TNS 2009 Visitor demographics Houston Visitors Resemble Visitors to Other Areas, With a Few Variations: Houston visitors report slightly higher incomes than overall US and Texas travelers. Further, those living in New York, Chicago, or Washington, DC report the highest earnings and also skew toward married males, suggesting dual income business travelers represent a larger share in these markets Overall family composition for Houston visitors more often includes three or more people in the household than overall US travelers, implying that Houston draws more families with children Ethnicity comparisons show that a larger proportion of Houston visitors, especially those from Dallas Ft. Worth, Austin, and San Antonio are African-American. Panel: Age, Income, Children, Ethnicity. (Household Level – demo wtd) Demographics All Travelers Texas Visitors Houston Visitors Houston Visitor & Houston Resident Houston Visitor & DFW/Austin/San Antonio Resident Houston Visitor & NY/Chicago/DC Resident* Average Age464544454346 Average Hhld Income$65,300$67,700$73,500$67,600$70,800$105,400 % Male43%46%47%44%43%68% % Married58626665 79 % Future Shaper/Maker303134253229 Household Composition % One Person22%20%19% 21% % Two People343530352919 % Three or More444551475260 Ethnicity % Caucasian86% 81%91%79%85% % Spanish Origin464130 % African-American891241510 *Very small sample; treat as qualitative only

23. 23 © TNS 2009 Visitor age distribution Greater Detail by Age: Shows that Houston draws a similar proportion by age group as other destinations However, visitors living in New York, Chicago, or Washington, DC are more often in the middle age group; relatively few young adult from these markets visit Houston. Age of Visitor QD. How old are you... (Respondent Level, demo weighted) * Very small sample; treat as qualitative only

24. 24 © TNS 2009 Trip planning: timing Logical Patterns Occur for Trip Planning: With fewer travel considerations (such as lodging or number of meals), day-trip visitors to Houston as well as Houston residents have the freedom to be much more spontaneous; most consider and decide to visit within two weeks of the trip Business travelers spend marginally less time planning a trip than leisure travelers Houston visitors who are Houston residents plan trips with much shorter time horizons than travelers from farther away – 4 times as many consider the trip within two weeks (62% vs. 16%), with a similar gap for the actual decision (72% vs. 19%) Houston visitors have similar planning time horizon as all travelers to all US destinations with slightly more considering and deciding within two weeks. Q4i. Please indicate how far in advance you considered traveling to... // Decided to visit... (State Level-demo wtd) Trip Planning (Time Before Visit) All Travelers Houston Visitors Total Houston Visitors Ls Overnight Houston Visitors Ls Day Trip Houston Visitors Bz Overnight* Houston Visitors & Houston Residents Houston Visitor & DFW/Austin/San Antonio Resident Houston Visitor & NY/Chicago/DC Resident** Considered Within Two Weeks34%37%25%58%41%64%33%16% 2 – 4 Weeks141514132116159 1 – 3 Months192126121892548 3+ Months3326351620112726 Decided Within Two Weeks42%46%34%70%47%72%45%19% 2 – 4 Weeks1517 1323121618 1 – 3 Months19172241551938 3+ Months252128 1316111926 *Business (Bz) Day Trips not shown (too few for reliable comparisons) ** Very small sample; treat as qualitative only

25. 25 © TNS 2009 Trip planning: sources of information Trip Planning Sources: Destinations, in order to be selected, must provide potential travelers with information that encourages visits. Results indicate Houston visitors tend to use the same information sources as other travelers with only minor differences. Information Sources to Plan a Trip Ranked by All Sources (5%+) Q4j. What sources did you use in planning your trip to... (State Level – demo wtd)

26. 26 © TNS 2009 Trip booking Trip Booking Methods: Similar to gathering information, Houston travelers also choose similar booking channels as others: However, Houston visitors book online more often (56% vs. 50%) than all travelers and, consequently, book offline less often (34% vs. 40%) – good news for Houston’s website development Consistent with the greater tendency to book travel arrangements online, Houston visitors utilize every online channel (except Online Full Service) more than average US travelers. Method Used to Book Trip Components Ranked by All Sources (5%+) Q4k. Please indicate the method(s) you used to book your trip... (State Level – demo wtd)

27. 27 © TNS 2009 Trip characteristics: purpose & transportation Most Visitors Come to Houston to Play: Over half (67%) of Houston visitors come primarily for leisure, often to visit friends/relatives (48%) Although most come to play, Houston draws more business travelers than the national average (21% vs. 15%). Those traveling from New York, Chicago, and Washington, DC are the least likely to be traveling for leisure (51%). Q1b: Which was the primary purpose of trip? Q2b: Which was the primary mode of transportation? (Trip Level – demo wtd) All Travelers Houston Visitors Total Houston Visitors Ls Overnight Houston Visitors Ls Day Trip Houston Visitors Bz Overnight* Houston Visitors & Houston Residents Houston Visitor & DFW/Austin/San Antonio Resident Houston Visitor & NY/Chicago/D C Resident** PRIMARY TRIP PURPOSE NET Leisure/Personal77%67%100% --72% 51% Visit Friends/Relatives41487755--455334 Entertainment/Sightsee126715--765 Outdoor Recreation 7357--834 NET Business1521-- 100%161116 Personal Bs/Other 812-- 121833 PRIMARY MODE % Own Auto/Truck70%66%69%96%34%89%83%17% % Air Travel1824213525771 % Rental Car 455--10275 % Other 85514437 *Business (Bz) Day Trips not shown (too few for reliable comparisons) ** Very small sample; treat as qualitative only

28. 28 © TNS 2009 Trip characteristics: day/overnight Most Trips Include an Overnight Stay: Most domestic (US) trips include an overnight stay, with Texas showing very similar results to the Overall US Houston draws a larger proportion of overnight visitors – especially those traveling on business. (Note: personal business and other are not classified as either business or leisure trips, so leisure + business will not equal total). DAY/OVERNIGHT TRIPS % of Trips to Area Base: Trips to Houston; Texas; Total US Q4e. Please specify which visits included at least one overnight stay... (State/Area Level-demo wtd)

29. 29 © TNS 2009 Trip characteristics: lodging and length of stay Most Visitors Spend a Few Days in Houston: Business overnight visitors (3.6 nights) spend slightly fewer nights than leisure overnight visitors (4.0 nights), but business travelers usually stay in hotels (72% of the time) vs. only about a sixth of the time (15%) for overnight leisure travelers The shortest stays (2.8 nights) occur among those who travel from elsewhere in Texas (DFW/Austin/ San Antonio). Q4f: Please specify the number of nights stayed at each listed accommodation. (State Level – demo wtd) LODGING All Travelers Houston Visitors Total Houston Visitors Ls Overnight Houston Visitors Ls Day Trip Houston Visitors Bz Overnight* Houston Visitors & Houston Residents Houston Visitor & DFW/Austin/San Antonio Resident Houston Visitor & NY/Chicago/DC Resident** AVG # NIGHTS (if any)3.23.84.0--3.64.12.74.0 Private Home1.52.22.9--0.42.81.41.8 Hotel/Motel1.2 0.6--2.60.40.92.2 All Other0.50.40.5--0.40.80.50.1 *Business (Bz) Day Trips not shown (too few for reliable comparisons) ** Very small sample; treat as qualitative only

30. 30 © TNS 2009 Trip characteristics: travel party Travelers’ Trip Characteristics: Travel companions vary by purpose and timing of the trip: About a third (34%) of Houston’s leisure overnight visitors arrive in pairs, compared to nearly half (46%) of day trip visitors Business travelers sometimes have one companion (19%), but usually travel solo (70%, not shown) As expected, leisure travelers more likely travel with children (35% vs. 4% business travelers) Q3a: Please indicate number of travel party members (including yourself) under 18 and 18+. (Trip Level-demo wtd) Trip Characteristics (Trip Level) All US Travelers Houston Visitors Total Houston Ls Visitors Houston Ls Visitors – Overnight Houston Ls Visitors – Day Trip Houston Bz Visitors – Total AVERAGE # IN TRAVEL PARTY (Q3a)2.82.32.7 2.51.6 % Travel in Pairs37%32%36%34%46%19% % Traveling with Children27 3538274 Avg. # of Children on Trip (if any)2.11.821.841.91.51.6 Average # in Travel Party in Household2.0 2.3 2.11.2

31. 31 © TNS 2009 Trip characteristics: vacation activities/attractions Top Vacation Activities/Attractions: Houston visitors choose somewhat different activities than visitors to other US destinations. Social engagements rank as the most popular -- visiting relatives and visiting friends capture two of the top three spots. Urban highlights such as shopping, fine dining, and urban sightseeing round out the most popular activities while State/National Park visits lag the national average. Activities Participated/Attractions Visited % Participated/Visited – Ranked by Houston Visitors (Activities with 2% or fewer for Houston not shown) Q4h. When you visited (state) during trip/month, please check all of the following activities did/attractions visited. (State Level-demo wtd)

32. 32 © TNS 2009 Trip characteristics: expenditures by type of travel Value of Visitors by Type of Trip: Overnight LEISURE visitors spend over three times as much as day-trip visitors ($501 vs. $153) With no lodging expense, Houston day visitors spend a greater proportion of their budget on shopping and dining With more nights in hotels, the average business traveler spends over twice as much as the average leisure traveler ($911 vs. $416). Note: Transportation includes parking/tolls. Food includes food/beverage/dining/groceries. Entertainment includes gaming. Other includes amenities/other. Average Spending in Houston by Trip Type Total Spending by Travel Party (Total Spending, including 0) Total Visitors Q4g. Please indicate the total dollar amount spent by your travel party (all) in Texas (Houston) for... (State Level-demo wtd) Leisure Total Business Total Leisure Overnight Leisure Day Business Overnight

33. 33 © TNS 2009 Destinations: competitive states Southern State Destinations Compete with Houston: Houston visitors who live in Texas usually choose other southern or western states for additional vacation travel. Conversely, Houston visitors who live in New York, Chicago, or Washington, DC tend to travel to the Northeast. Florida ranks number one in past three year visitation for both Dallas/Austin/San Antonio residents and New York/Chicago/Washington, DC residents. California earns high future visitation interest among both groups. Other States Visited/Planned by Houston Visitors (Key Competitors) % Visiting State/DMA Past Three Years (Ranking), Past Year, Planned Next Two Years Top States: DFW/Austin/San Antonio Residents Base: Visited Houston Top States: NY/Chicago/DC Residents* Base: Visited Houston Q7a: Please indicate US states visited for leisure in past three years. Q7b. Please indicate states visited within the past 12 months. Q7c: Which US states plan to visit within the next two years for leisure? Repeated for cities in Q8 series. (Household Level) *Very small sample; treat as qualitative only

34. 34 © TNS 2009 Destinations: competitive cities Other Texas Cities and Orlando Also Attract Houston Visitors: Houston visitors within Texas often visit other Texas destinations (Dallas/Ft. Worth and San Antonio) Dallas/Ft. Worth claims high visitation rates among New York/Chicago/Washington, DC residents who may visit multiple Texas cities on their trip. Other Areas Visited/Planned by Houston Visitors (Key Competitors) % Visiting State/DMA Past Three Years (Ranking), Past Year, Planned Next Two Years Q7a: Please indicate US states visited for leisure in past three years. Q7b. Please indicate states visited within the past 12 months. Q7c: Which US states plan to visit within the next two years for leisure? Repeated for cities in Q8 series. (Household Level) Top Cities: DFW/Austin/San Antonio Residents Base: Visited Houston Top Cities: NY/Chicago/DC Residents* Base: Visited Houston *Very small sample; treat as qualitative only

35. 35 © TNS 2009 Satisfaction: Houston by residence Overall Satisfaction with Houston: Almost nine out of 10 (87%) DFW/Austin/San Antonio residents are either extremely or very satisfied with a Houston vacation NY/Chicago/DC residents view Houston favorably (79%), but less so than NY/Chicago/DC residents, and less frequently choose the top (extremely satisfied) rating In total, few visitors (1%) express displeasure with Houston. Note: Not pleased includes Not At All and Not Very Pleased Satisfaction with Houston Visit By Group (Base) DFW/Austin/San Antonio Residents Total Visitors Q4l: Using a scale of 1-5 (5=extremely satisfied), please indicate satisfaction with Houston. (State Level-demo wtd.) SomewhatNot PleasedVeryExtremely NY/Chicago/DC Residents* * Very small sample; treat as qualitative only 84% 87% 79% NET Top Two

36. Results of the Research From Follow-up Survey: Opinions About Houston and Competitors

37. 37 © TNS 2009 Demographics Houston residents vary slightly from other areas: Non-Texas residents report the highest income levels, possibly influenced by their higher education levels; thus, Texas residents report lower income and education levels Houston residents and Website Visitors are the most likely to be married Houston residents have the largest proportion of African-American respondents while Texas residents outside of Houston show a larger portion of those that claim a Spanish heritage. QA. What is your age? QB. Are you... (male/female) Panel: Income, Ethnicity. Demographics All Travelers Past Yr. O/N Leisure Visitors Houston Residents Other Texas Residents Non-Texas Residents Website Visitor Average Age 504951 4952 Average Hhld Income $71,500$74,500$70,200$69,600$78,800$74,800 % Male 29% 28%27%32%26% % Married 64 66636166 % Female Hhld College Grads/Post Grads 505646 7153 % Male Hhld College Grads/Post Grads 566054 6561 Ethnicity % Caucasian 86 82889081 % Spanish Origin 897103 % African-American 87116410

38. 38 © TNS 2009 Residence City of residency: The majority of respondents (68%) live within Texas most of whom (45%) reside in Houston. As seen earlier, residents outside of Houston mimic the proportions of visitors coming from these DMA’s (Dallas 16%, Austin 9%, San Antonio 5%, New York/Chicago/DC 4%). QC. In which of the following cities do you live?

39. 39 © TNS 2009 Attribute importance Important attributes when choosing a destination: Those who have traveled to Houston overnight for leisure within the past year rank attributes similarly to other travelers; however, attributes based around friends and family tend to be slightly more important: Houston visitors rank family roots (32% vs. 27%) and a good place for family/children (55% vs. 51%) higher than other travelers, suggesting a tendency to plan family-focused vacations. Attribute Importance (% Top 2 Box) Ranked by Total Q1a/b. Abridged: Using a scale of 1 (not at all important) to 5 (extremely important) please rate the importance of each of the following attributes when selecting a destination.

40. 40 © TNS 2009 Attribute importance Important attributes when choosing a destination: Regardless of geography, travelers tend to agree on the important aspects of a travel destination: Similar to Houston visitors, Houston residents consider a family/children-friendly destination more important than residents outside of Houston Consistently across all groups, value for the money ranks as the most important attribute when choosing a destination. Attribute Importance (% Top 2 Box) Ranked by Total Q1a/b. Abridged: Using a scale of 1 (not at all important) to 5 (extremely important) please rate the importance of each of the following attributes when selecting a destination.

41. 41 © TNS 2009 Preference for each Texas city Ranked by Total Importance (top 2 box) Q 2a/b. For each of the attributes mentioned below, please select the destinations you prefer... % selecting each city. Although Houston stands out from other major Texas cities on many destination attributes, San Antonio excels on the attributes with the highest overall importance: Travelers view Houston as the best place among these four cities on easily accessible, variety of dining options, cultural/performing arts, culturally diverse, family/roots there and accessible for disabled Houston trails San Antonio on the three overall most important attributes: good value for the money, friendly/welcoming and lots to see/do In contrast, Houston outperforms Dallas-Ft. Worth on all attributes except hip/fashionable (they tie) Houston performs most poorly on friendly to alternate lifestyles but still reports higher scores than Dallas-Ft. Worth and San Antonio on the attribute. Good Value for the Money (90%) Friendly/Welcoming (85%) Lots to See/Do (84%) Reasonable Hotel/Meal Costs (83%) Good Service (81%) Weather/Climate (79%) Easily Accessible (77%) Variety of Dining Options (74%) Explore/Sight-see by Car (67%) Something for Everyone (66%) Experience History/Culture (59%) Accurate Website (58%) Prefer for O/N Leisure (56%) Good for Family/Children (51%) Easy to Use Website (44%) Culture/Performing Arts (38%) Culturally Diverse (38%) Friends/Relatives Recommend (37%) Good Nightlife/Entertainment (34%) Good Reviews on Travel Websites (34%) Family/Roots There (27%) Friendly to Alternate Lifestyles (21%) Accessible for Disabled (20%) Hip/Fashionable (18%)

42. 42 © TNS 2009 Preference for Houston vs. non-Texas cities Ranked by Total Importance (top 2 box) Q2a/b. For each of the attributes mentioned below, please select the destinations you prefer... % selecting each city. Relative to metropolitan cities outside of Texas, Houston’s image is the strongest on most of the destination attributes: When it comes to good value for the money, the overall most important attribute in choosing a destination, Houston significantly outranks New Orleans, Atlanta, and Denver Houston ties or outperforms all three non-Texas cities on every attribute except weather/climate (outranked by Denver), experience history/culture (outranked by New Orleans), good nightlife/entertainment (outranked by New Orleans), and friendly to alternate lifestyles (outranked by New Orleans). Good Value for the Money (90%) Friendly/Welcoming (85%) Lots to See/Do (84%) Reasonable Hotel/Meal Costs (83%) Good Service (81%) Weather/Climate (79%) Easily Accessible (77%) Variety of Dining Options (74%) Explore/Sight-see by Car (67%) Something for Everyone (66%) Experience History/Culture (59%) Accurate Website (58%) Prefer for O/N Leisure (56%) Good for Family/Children (51%) Easy to Use Website (44%) Culture/Performing Arts (38%) Culturally Diverse (38%) Friends/Relatives Recommend (37%) Good Nightlife/Entertainment (34%) Good Reviews on Travel Websites (34%) Family/Roots There (27%) Friendly to Alternate Lifestyles (21%) Accessible for Disabled (20%) Hip/Fashionable (18%)

43. 43 © TNS 2009 Preference for Houston Ranked by Total Importance (top 2 box) Q2a/b. For each of the attributes mentioned below, please select the destinations you prefer... % selecting each city. As expected, since a visit indicates strong interest almost by definition, those who visited Houston overnight for leisure in the past year tend to rank Houston the highest on most attributes; non-Texas residents join them in the accolades: Past year overnight Houston leisure visitors prefer Houston as a destination more often than average for all travelers on every attribute Non-Houston Texas residents least prefer Houston as a destination that is a good value of the money Among all the groups tested, Houston performs best on variety of dining options. Good Value for the Money (90%) Friendly/Welcoming (85%) Lots to See/Do (84%) Reasonable Hotel/Meal Costs (83%) Good Service (81%) Weather/Climate (79%) Easily Accessible (77%) Variety of Dining Options (74%) Explore/Sight-see by Car (67%) Something for Everyone (66%) Experience History/Culture (59%) Accurate Website (58%) Prefer for O/N Leisure (56%) Good for Family/Children (51%) Easy to Use Website (44%) Culture/Performing Arts (38%) Culturally Diverse (38%) Friends/Relatives Recommend (37%) Good Nightlife/Entertainment (34%) Good Reviews on Travel Websites (34%) Family/Roots There (27%) Friendly to Alternate Lifestyles (21%) Accessible for Disabled (20%) Hip/Fashionable (18%)

44. 44 © TNS 2009 Cities “good to visit” for non-resident visitors Evaluating city of residence: A destination’s own residents can be the best ambassadors of the city. Houston’s populace knows the city best, often scoring Houston above the average of other cities by their residents: Houston residents see their city as an active urban playground with above average scores for dining variety (77% Houston; 60% Other TX; 63% Non-TX), shopping (67%; 46%; 48%), lots to see/do (63%; 48%; 47%) and culture/performing arts (58%; 40%; 44%). Similarly, Houston residents would not be as quick to recommend the city for a relaxing vacation (59%, 70%, 71%). Attribute Importance (% Top 2 Box) Ranked by Houston Residents Q3. Now, please think about the city where you live. Please rate how well each statement describes your city as a leisure destination for those who do not live there.

45. 45 © TNS 2009 Quality of cities as destinations Q4. Now, we would like you to rate each of the listed cities, whether or not you live there or have visited them, on a 10-point scale (10=perfect; 1=terrible). Taking into account everything you look for in a leisure destination, how would you rate each city? Similar to attribute rankings, travelers generally rate San Antonio higher than other cities when thinking of “everything that is wanted in a leisure destination”: Houston places fourth among the seven cities tested, falling behind San Antonio, Austin, and Denver Residents of cities outside Texas tend to rate Houston the lowest (53%) Past year overnight leisure Houston visitors rate the city higher than segments (69%). NET Perfect + Good: 61% 55% 71%79% 58%49% 68% 61% 69%67%53%63% Perfect Good Average Poor Opinion of Each City Opinion of Houston

46. 46 © TNS 2009 Competitive cities visited Competitors: A review of other cities visited by Houston residents, other Texas residents, or non-Texas residents who have already visited Houston within the past five years indicates that, besides their interest in Houston: San Antonio attracts many, reigning as the most popular among Houston residents and past year Houston visitors Dallas-Fort Worth claims the lead for non-Houston Texas residents Non-Texas residents “vote” for New Orleans. Cities Visited Ranked by Total Q5. Which of the following cities have you visited in the past 5 years?

47. 47 © TNS 2009 Value for the money - cities as destinations Q6. Abridged: On a 10-point scale (10=excellent value; 1=terrible value) overall, how would you rate the value for the money of each city? Overall, visitors view Texas cities as destinations with the best value for the money: Three fourths (75%) of San Antonio visitors have a favorable image of the city's value for the money Houston (68%) and Austin (68%) vie for second. NET Excellent + Good: 68% 59% 68%75% 62%58% 61% 68% 72%70%65%69% Excellent Good Average Poor Each City Houston

48. 48 © TNS 2009 Experience in each destination city Q7. Abridged: On a 10-point scale (10=excellent value; 1=terrible value) overall, how would you rate the experience you had in each city? San Antonio and Austin vie for the city with the best overall experience for visitors: Houston drops to sixth, besting only Dallas Among those who have visited Houston, non-Houston Texas residents rate their overall experience the lowest. NET Excellent + Good: 76% 73% 86%86% 80%79% 80% 76% 81%75%74%81% Excellent Good Average Poor Each City Houston

49. 49 © TNS 2009 Likely to return to destination city Q8. Abridged: On a 10-point scale (10=very likely; 1=not at all likely), please indicate how likely you are to return to each city for an overnight, leisure trip? Geographical proximity influence repeat visitation: Cities within Texas are the most likely to be revisited Although non-Texas residents have the best experience overall, they are also least likely to return. Very Probably Average Not At All Each City Houston NET Excellent + Good: 78% 74% 83%83% 76%70% 75% 78% 85%79%77%74%

50. 50 © TNS 2009 Likely to recommend city as destination By city: Visitors to San Antonio most often (would) recommend the city to friends and family, followed by Austin Houston ranks fifth, surpassing Dallas and Atlanta Recent leisure visitors to Houston most often recommend the city to others Texas residents outside of Houston are the least likely to Houston. NET Very + Probably: 72% 71% 84%87% 78%70% 80% 72% 78%74%70%73% Very Probably Average Not At All Each City Houston Q9. Abridged: On a 10-point scale (10=very likely; 1=not at all likely), please indicate how likely you are to recommend traveling to each city to friends/family.

51. 51 © TNS 2009 Summary of opinions/ratings about Houston The majority (61%-78%) of all visitors to Houston perceive the city positively on each measure: The proportion climbs higher for the two (arguably) most important measures: positive experience in Houston (76%) and likelihood to return (78%) Overall opinion of Houston as a leisure destination shows the most room for improvement. NET Top Four Ratings: 61% 68% 76%78% 72% 9 – 10 Ratings 7 - 8 4 - 6 1 - 3 Houston Q6. Abridged: On a 10-point scale (10=excellent value; 1=terrible value) overall, how would you rate the value for the money of each city? Q7. Abridged: On a 10-point scale (10=excellent value; 1=terrible value) overall, how would you rate the experience you had in each city? Q8. Abridged: On a 10-point scale (10=very likely; 1=not at all likely), please indicate how likely you are to return to each city for an overnight, leisure trip? Q9. Abridged: On a 10-point scale (10=very likely; 1=not at all likely), please indicate how likely you are to recommend traveling to each city to friends/family. Q4. Now, we would like you to rate each of the listed cities, whether or not you live there or have visited them, on a 10-point scale (10=perfect; 1=terrible). Taking into account everything you look for in a leisure destination, how would you rate each city?

52. 52 © TNS 2009 Next future visit to city Far more travelers expect to visit Houston within the next year than any other city: Similarly, twice as many travelers plan to visit Houston as Austin or San Antonio within the next six months Geographically, the most likely group to visit Houston within the next six months are Houston residents. NET <6 Months + 6 Mos. – 1 Year: 70% 45% 41%41% 20%11% 9% 70% 87%81%58%65% Each City Houston Q10. Please indicate the next time you plan to visit each of the following cities? < 6 Months 6 Mos. – 1 Year 1 – 2 Years Over 2 Years No Plans to Visit

53. Results of the Research From Follow-up Survey: Advertising Awareness: General Advertising

54. 54 © TNS 2009 City advertising awareness Q11. In the past 3 months, for which of the following cities have you seen advertising? Advertising obviously plays a role in building interest in destination selection: All travelers: Half (49%) of all travelers recall advertising for at least one of the featured cities (Houston, Dallas/Ft. Worth, Austin, San Antonio, New Orleans, Atlanta, or Denver), with San Antonio and New Orleans generating, by far, the greatest recall (32%) Although Houston ranks a distant third (19%), it generates slightly more awareness the its Texas neighbors: Dallas/Ft. Worth (15%) and Austin (15%) Not surprisingly, the more distant markets, Denver (8%) and Atlanta (6%), have an even lower recall. Each City (n=692)

55. 55 © TNS 2009 Houston advertising awareness Q11. In the past 3 months, for which of the following cities have you seen advertising? Advertising can directly influence who visits a destination and when: Past year overnight leisure visitors to Houston are more likely to recall advertising for Houston, suggesting a correlation between advertising exposure and visitation The closer a traveler lives to Houston the more likely they are to be aware of advertising – Houston residents are twice as likely to be aware of advertising as non-Texas residents. Houston (n=692)

56. 56 © TNS 2009 City advertising awareness by media Advertising recall via electronic media is more pervasive than print: Electronic Media: Television leads as a source of ad awareness, especially for New Orleans (69%) and Houston (59%); Internet/banner ads rank a distant second among electronic forms Atlanta and Denver utilize those (Internet/banner) and e-mail ads to a greater degree than competing cities; Houston leads in radio recall, possibly because of the strong localized market within Houston Print Media: Magazines generate substantial awareness, but less for Houston than most competitors Newspapers contribute to advertising recall, with Nevada and San Antonio in the lead. Each City ELECTRONIC PRINT Q12. Abridged: For each of the cities, please indicate what type of media you recall seeing/hearing advertising.

57. 57 © TNS 2009 Houston advertising awareness by media Advertising recall within groups stays fairly consistent with a few exceptions: Electronic Media: Houston residents have the greatest recall of both television and radio advertising, which suggests strong promotion within the city from local broadcast stations Residents outside of Texas have a greater recall of advertising through email than any other group Print Media: Magazines and newspapers generate the highest recall for residents outside of Texas; the lower cost of print advertising makes it attractive when targeting a broad range of people. Houston ELECTRONIC PRINT Q12. Abridged: For each of the cities, please indicate what type of media you recall seeing/hearing advertising. * Very small sample; treat as qualitative only

58. 58 © TNS 2009 General Advertising – By City Travelers may positively react to destination advertising in one of three listed ways: motivate them to seek more information, convince them to book a trip, or encourage them to stay longer/visit additional attractions: In overall positive impact, Austin (29%) and Denver (29%) lead while Houston (22%), San Antonio (22%), and Atlanta (22%) vie for third place Austin’s advertising convinces the most travelers to visit (12%); however, low scores across the board give all destinations room for improvement. More than any other behavior, advertising causes travelers to seek more information Ads do not affect everyone positively; potential visitors may decide not to visit (2% for Houston, not shown) or simply believe that ads do not influence them at all. Consistent with similar studies conducted by TNS, a majority (75%) of those who recall Houston’s ads deny being influenced by them. Each City Perceived impact of advertising – each city Q13. Abridged: How has the advertising you have seen affected your leisure travel plans?

59. 59 © TNS 2009 General Advertising – By Group Advertising must not only reach its audience but also have a positive impact: Non-Texas residents reap the largest benefits from advertising, shown as those who report a positive impact (47%); past year overnight leisure visitors follow (30%) Among most groups, ads primarily motivate travelers to seek more information; however, non-Texas residents primarily elect to lengthen their stay/visit more attractions. Perceived impact of advertising for Houston Houston Q13. Abridged: How has the advertising you have seen affected your leisure travel plans? * Very small sample; treat as qualitative only

60. Results of the Research From Follow-up Survey: Advertising Awareness: Specific Houston CVB Ads

61. 61 © TNS 2009 Houston print advertising awareness Q27. Below you will see 3 different print ads that advertise Houston as a leisure destination. Please indicate which, if any, of these ads you have seen before. Travelers more often recall advertisements with a general message or theme rather than one that focuses on one specific graphic: ZZ Top ads have the lowest recall rates across all groups among the ads tested Houston residents (23%) and past year overnight Houston visitors (22%) more likely recall a Houston CVB print ad than other groups. Awareness of Specific Houston CVB Print Ads

62. 62 © TNS 2009 Opinions/reaction to Houston CVB print ads Overall, respondents remain relatively neutral in the opinions of the Houston CVB print ads: A large majority (80%) of travelers appear unaffected by the ads Half (51%) of the travelers neither like nor dislike the ads Nearly half (45%) do not believe the ads will affect their future visitation to Houston. NET Top Two Ratings: 17% 40% 22% Top Rating Second Neutral Bottom 2 Ratings Summary of Opinion/Reaction to Houston CVB Print Ads Base: All (692) Q28a. Based on these print ads, how has your impression of Houston changed? Much more positive (5) to much more negative (1) Q28b. Overall, how much did you like these ads? Like them very much (5) to dislike very much (1) Q28c. Based on these print ads, how likely are you to take an overnight vacation or pleasure trip to Houston in the future? (extremely (5) to not at all likely (1).

63. 63 © TNS 2009 Impression of Houston based on print ads Those most familiar with the city tend to be most influenced by the advertising: The print ads most improve the impression of Houston for past year overnight leisure visitors (16% somewhat more positive, 6% much more positive); Houston residents follow closely (14%, 7%) Residents of Texas outside of Houston are the least affected by the ads (82% neutral). Much More Positive Somewhat More Neutral More Negative Reaction to Houston CVB Print Ads - Impression NET Positive: 17% 21% 20%13% 15% Q28a. Based on these print ads, how has your impression of Houston changed? Much more positive (5) to much more negative (1).

64. 64 © TNS 2009 Likeability of Houston print ads Travelers who have visited or live in Houston find the ads the most likable: Past year overnight leisure visitors to Houston most frequently like the ad very much (18%) Houston residents have the overall highest positive reaction to ads’ likeability (45% like very much/somewhat) In contrast, more residents outside of Texas dislike the ads (13%). Like Very Much Somewhat Neutral Dislike Ads Reaction to Houston CVB Print Ads - Likeability NET Positive: 40% 44% 45%36% 38% Q28b. Overall, how much did you like these ads? Like them very much (5) to dislike very much (1).

65. 65 © TNS 2009 Print ad impact of taking vacation to Houston Overall, the print ads do not influence future visitation for the majority of travelers: Only about one in five (22%) believes that the ads will encourage them to visit Houston As seen with the other ad measures, past year overnight leisure visitors to Houston continue to be most influenced by print advertising -- twice as many expect to visit Houston as a result of the ad (33%) than non-Houston Texas residents (17%). Extremely Likely Very Somewhat Not Likely Reaction to Houston CVB Print Ads – Influence on Future Vacation NET Positive: 22% 33% 27%17% 19% Q28c. Based on these print ads, how likely are you to take an overnight vacation or pleasure trip to Houston in the future? (extremely (5) to not at all likely (1).

66. 66 © TNS 2009 Houston TV commercial awareness Q30. Have you seen this commercial before on TV? Houston residents remember the TV commercial more than other groups, underscoring the effectiveness of local “recruiting”: Houston residents (9%) and past year overnight leisure visitors (6%) most often notice the commercial Texas residents outside of Houston (3%) and non-Texas residents (1%) trail. Awareness of Specific Houston CVB TV Commercial

67. 67 © TNS 2009 Opinions/reaction to Houston CVB TV commercial Overall opinions of the TV commercial are markedly more positive than the print ads: Houston’s TV commercial improves perceptions of Houston more than twice as often as the print ads (42% vs. 17%) Nearly three quarters (71%) of travelers like the ad (40% for print) Fewer than one in four (22%) travelers believe they would be more likely to visit Houston based on the print ads, but nearly a third (30%) feel that way about the TV commercial. NET Top Two Ratings: 42% 71% 30% Top Rating Second Neutral Bottom 2 Ratings Summary of Opinion/Reaction to Houston CVB TV Commercial Base: All (687) Q31a. Based on this commercial, how has your impression of Houston changed? Much more positive (5) to much more negative (1) Q31b. Overall, how much did you like this commercial? Like them very much (5) to dislike very much (1) Q31c. Based on this commercial, how likely are you to take an overnight vacation or pleasure trip to Houston in the future? (extremely (5) to not at all likely (1).

68. 68 © TNS 2009 Impression of Houston based TV commercial The commercial’s impact on impressions of Houston stays relatively consistent across all groups: Houston residents, Texas residents outside of Houston, and non-Texas residents report similar positive reactions to the TV commercial (41%, 42%, 42% much more positive/somewhat more positive). Much More Positive Somewhat More Neutral More Negative Reaction to Houston CVB TV Commercial - Impression NET Positive: 42% 46% 41%42% 42% Q31a. Based on this commercial, how has your impression of Houston changed? Much more positive (5) to much more negative (1).

69. 69 © TNS 2009 Likeability of Houston TV commercial Likeability measures also show a consistent appeal to all groups: Roughly three quarters (70%-75%) of all groups find the commercial to very or somewhat likeable The commercial most polarizes those who had visited Houston overnight for leisure within the past year (48% like very much, 10% dislike ad), possibly reflecting/not reflecting their personal experience in Houston on their recent overnight leisure trip. Like Very Much Somewhat Neutral Dislike Ads Reaction to Houston CVB TV Commercial - Likeability NET Positive: 71% 75% 73%71% 70% Q31b. Overall, how much did you like this commercial? Like them very much (5) to dislike very much (1).

70. 70 © TNS 2009 TV commercial impact of taking vacation to Houston Travelers who have already been to Houston most likely expect to return based on the commercial: Nearly half (45% extremely likely/very likely) of previous overnight leisure visitors to Houston expect to return based on the TV commercial, in contrast to 33% of the same group based on the print ads Texas residents outside of Houston seem least influenced by the commercial (41% not likely). Extremely Likely Very Somewhat Not Likely Reaction to Houston CVB TV Commercial – Influence on Future Vacation NET Positive: 30% 45% 33%26% 29% Q31c. Based on this commercial, how likely are you to take an overnight vacation or pleasure trip to Houston in the future?

71. 71 © TNS 2009 Total advertising impact on Houston visitation Since the primary goal of advertising is to convert potential travelers to visitors, looking beyond simple awareness becomes important: Advertising appears very effective for both Houston and Other Texas residents – encouraging roughly one out of 10 to visit Thus, although overall awareness of the ads appears much stronger in Houston (26%) than elsewhere in Texas (16%), the actual ability of the ads to lure tourists is quite similar proportionately. Two caveats – this measure combines the features of current advertising with past travel – so it really measures Houston’s ongoing awareness and effectiveness, rather than these specific ads and three of the measures, by definition, includes travelers, so the effectiveness looks much stronger than would be expected (Past Year Houston Visitors, Non-Texas Residents, and Total). NET Aware: 19% 24% 26% 16% 11% Aware, Pos. Impact, and Visited Aware and Positive Impact Aware Only Q14. Please indicate the total number of overnight leisure trips you have made to the Houston area in the past 12 months. Q27. Below you will see 3 different print ads that advertise Houston as a leisure destination. Please indicate which, if any, of these ads you have seen before. Q28c. Based on these print ads, how likely are you to take an overnight vacation or pleasure trip to Houston in the future? (extremely (5) to not at all likely (1). Q30. Have you seen this commercial before on TV? Q31c. Based on this commercial, how likely are you to take an overnight vacation or pleasure trip to Houston in the future?

72. Results of the Research From Follow-up Survey: Website Usage

73. 73 © TNS 2009 General Website Features Many travelers find it important to research their travel destination, especially those with which they are unfamiliar. Travel destination websites provide a wealth of information whenever a traveler needs it. Results indicate that, regardless of group, most travelers look for the same things in a destination website: Ranked as 1-3: Travelers consistently rank where to stay, what to do, and savings/value as the most important destination website features; travelers seek unbiased resources of basic information Top Rank Only: The top ranking mimics the importance of features ranked 1-3 with saving/value leading slightly. In context of the economic climate, it is not surprising that travelers want to know how to best spend their travel dollar. Most important features on website % Rank Q13a. Abridged: Now, we would like you to consider travel destination websites. Please choose the 7 most important features on a travel destination website and rank them in order of importance (1=most important; 7 least important)? Ranked as 1-3 Top Rank (#1) Only

74. 74 © TNS 2009 General Website Features Most respondents rank the already listed website features as most important to them in a travel website. Unaided feature characteristics vary widely, but include more informational content and website functionality: Other important features on Websites Q13b. What other feature is important on travel destination websites? Other Features Cited as Important Weather Ease of use/navigation Local maps Information tailored to the business traveler

75. 75 © TNS 2009 Houston websites visited Q19. Which of the following websites for the Greater Houston Convention and Visitors Bureau, if any, have you visited in the past 12 months? Most website users are unsure which link they used to access the Greater Houston CVB website: Non-Texas residents most often remember going to VisitMyHouston while Houston residents most often go to VisitHoustonTexas Travelers rarely recall visiting VisitaHoustonTexas, HoustonReunions, and AskVeronica Not surprisingly, those who live in Houston or have visited are the most likely to have used the website. Houston (.com) Websites

76. 76 © TNS 2009 Houston website discovery Q20. Please indicate how you found out about the Greater Houston Convention and Visitors Bureau’s website? * Very small sample; treat as qualitative only Most travelers find the Greater Houston CVB website via the Internet: Regardless of residency, both Texas and non-Texas website users most often find the website through a search engine or while browsing the Interne Almost half (41%) of Non-Texas residents use a search engine showing specific intent to find the site Conversely, almost half (41%) of Texas residents find the site while browsing the Internet, possibly linked while browsing other area attractions. Website Visitors’ Source of Information

77. 77 © TNS 2009 Characteristics/features of Houston’s website Q21. How much do you agree or disagree with the following statements regarding Greater Houston CVB website’s characteristics or features? At least half of website users agree with most statements about the Greater Houston CVB website’s characteristics or features: Houston’s website performs exceedingly well on communicating and strengthening Houston’s image, promoting local attractions, and ease of use Areas with the most room for improvement tend to center around functionality: getting feedback from website representatives, ability to book/purchase, and forwarding information to others. NET Agree: 71%71%66%65%68%63%70%70%61%60%55% NET Agree: 64%53%69%55%65%60%59%61%48%54%50%

78. 78 © TNS 2009 What the website says about Houston Q22. What does the Greater Houston Convention and Visitors Bureau web site tell you about Houston? From the website, most users “take away” the variety of activities available in Houston: Travelers perceive lots to see/do as the main message of the Houston website with friendly people, something for everyone, cultural/performing arts, and family activities and museums completing the top five Most “atmospheric” imagery falls into the lower half.

79. 79 © TNS 2009 Satisfaction with Houston website Satisfaction levels of the website remains strong across all users: Over three quarters (78%) of website users are very satisfied to somewhat satisfied with the website The website most satisfies (82% very satisfied/somewhat satisfied) residents outside of Texas, possibly because they search for more general information while those within Texas are more familiar with the city. NET Satisfied:78% 76% 82% Q23. What is your overall satisfaction with the Greater Houston CVB website? * Very small sample; treat as qualitative only Very Satisfied Somewhat Neutral Somewhat Not Very Dissatisfied

80. 80 © TNS 2009 Houston’s website competitive comparison Although a majority of website visitors outside of Texas are very satisfied with the Houston's website, they are least likely to rank the website as being much better or somewhat better than similar websites for city destinations. NET Better:54% 56% 47% Q24. How well does the Greater Houston CVB’s website compare to similar websites for city destinations? * Very small sample; treat as qualitative only Much Better Somewhat Comparable Somewhat Worse Much Worse Do Not Know:8% 6% 12%

81. 81 © TNS 2009 In general, most website users express overall satisfaction with the site, even when reflecting on possible improvements. While suggestions vary, the desire for more coupons/discount packages emerges as the strongest theme. Website features to improve Q25. What features or sections should the website improve? Website Features to Improve More coupons/discount packages How to get around the city/avoid construction Weather Keep users updated on current events

82. 82 © TNS 2009 Website users may positively react to Houston’s website in one of three listed ways: content may motivate them to seek more information, convince them to book a trip, or encourage them to stay longer/visit additional attractions: In overall positive impact, non-Texas residents (65%) are most positively affected by Houston’s website The website causes users to seek more information more than twice as often as convincing them to go or lengthening stay/adding attractions The website dose not affect everyone positively; potential visitors may decide not to visit (4% for total website visitors, not shown) or simply believe that the website did not influence them at all (48%). Perceived impact of Houston’s website Houston’s Website Q26. How did your visit to the Greater Houston CVB website affect your leisure plans? * Very small sample; treat as qualitative only

83. Results of the Research Houston Visitors: Choices and Characteristics

84. 84 © TNS 2009 Trips to Houston Q14. Please indicate the total number of leisure trips you have made to the Houston area in the past 12 months. Total (n=692) Past Yr. O/N Leisure Visitors (n=326) Houston Residents (n=309) Other Texas Residents (n=259) Non-Texas Residents (n=124) Day Trips NET Any 45%55%64%32%26% Mean (Inc. 0) 2.93.84.81.60.8 Mean (Excl. 0) 6.46.97.54.93.2 Overnight (O/N) Trips NET Any 47%100%31%55%69% Mean (Inc. 0) 1.83.81.7 2.3 Mean (Excl. 0) 3.8 5.53.13.3 Logical Patterns Occur for Types of Trips to Houston: Living within close proximity to city events and attractions, Houston residents take six times the average number of day trips to Houston as residents outside of Texas, while also taking the most number of day trips overall. Although fewer stay in Houston overnight, Houston residents who do spend the night there stay most often, possibly with friends or family that they likely have in the area.

85. 85 © TNS 2009 Recency of last overnight leisure trip to Houston By design, non-Texas residents must have visited Houston in the past five years, either for business or leisure with no overnight stay required. That said: Over half (55%) of Texas residents outside of Houston stayed overnight within the past 12 months. Houston residents have the fewest trips with over a fourth (27%) claiming never to have taken an overnight leisure trip to Houston. NET: Within Past 2 Years: 62% 100% 51% 65% 84% Q15. When was your last overnight leisure trip to the Houston area? Within Past 12 Months 1 – 2 Years Ago 3 – 5 Years Ago 6+ Years Ago Never

86. 86 © TNS 2009 Timing by Month A gradual increase in Houston visitation occurs throughout the spring and peaks in the summer months (June through August), followed by a sharp drop in fall: Houston residents take an overnight trip to the city most often in August, while the average of all visitors peaks in July Visitors residing outside of Texas enjoy the city more consistently in the late winter and early spring than most Huston travelers. Timing of last visit to Houston Q16. What was the month of your last overnight leisure trip to the Houston area?

87. 87 © TNS 2009 Overnight spending amounts to visit Houston Important points from the overnight spending categories for the group include: With more spent on lodging and transportation non-Texas residents nearly double spending by their Texas resident counterparts. Even when excluding transportation to and from Houston, non-Texas residents still spend notably more than the average Houston traveler. Overnight visitors living in Texas but outside of Houston spend the least in every category and, consequently, have the lowest overall average spending. Total Travel Party Overnight Spending on Last Trip to Houston (Column Height Impacted by Expenditure) Q17. Please estimate the dollars your travel party spent for each of the categories below on your last overnight leisure trip to Houston? $479$524$438$380$741 Average Total Spending $365$404$359$304$492Average Total Spending exc. Travel To/Fro Houston

88. 88 © TNS 2009 Satisfaction with Houston visit Houston satisfies a large majority of its overnight leisure visitors: Past year leisure visitors report the highest satisfaction ratings (82% extremely satisfied/very satisfied) As seen consistently in image and satisfaction levels, Texas residents outside of Houston tend to rate Houston lower than the other groups; the attitude remains the same even if they have visited Houston for leisure overnight. NET Top Four Ratings: 71% 82% 70%67% 78% Extremely Very Somewhat Not Pleased Houston Q18. Overall, how pleased were you with your last overnight leisure trip to the Houston area?

89. Results of the Research Final Comments

90. 90 © TNS 2009 General Comments T he majority of travelers commend Houston as a travel destination. Most comments center around Houston as a great place for families, either to visit family or travel there together: “Full of family and friends how could any place be better?” “Great town, have family there, love to visit all the time.” “I love Houston. I lived and worked there for many years. People are generally friendly and helpful and I have lots of friends and relatives that still reside there.” “I travel to Houston to visit and stay with my sisters and their families there. I like it so much that I'm considering moving there. I agree with ZZ Top.” “There are lots of things to do for families. There is the Houston Zoo which is wonderful, there is NASA, a Children's Museum, and the beach isn't far up the road.” Comments regarding Houston Q32. Please share below any additional comments you may have regarding Houston, TX as a travel destination? Common comments regarding Houston Go to visit friends/family A good place for families There is a lot to do/something for everyoneHard to get around the city (poor traffic/signage) There are a variety of good dining optionsPoor weather