1. 1 Fredericksburg/Gillespie County VISITOR TRACKING STUDY FINAL REPORT March, 2013

2. 2 METHODOLOGY  Questionnaire and four-phase process mirrors prior three studies for tracking purposes.  2-sided card distributed at retail & tourist locations throughout the city.  Mobile (QR code) and online invitation (via Facebook and target emails)  Results of all four phases compared to prior tracking studies Year: Responses 1999-20003,813 2003-20043,793 2007-20083,769 2012-2013+3,746 total 4 surveys 15,121 2012-’13

3. 3 SAMPLE CHARACTERISTICS ’12-’13  Party size % 1 - 261 3 +39  Gender Women64 Male36  Age Under 3520 35 – 4920 50 +60 ’12-’13  Frequency % First time26 1 - 3 times30 4 - 20 times30 20+14  Income Under $40,00011 $40K - $60K13 $60K - $100K31 over $100K44 2012-’13

4. 4 TRACKING SAMPLE CHARACTERISTICS ’00 ’04 ’08 ‘12  People in party % % % % 1 - 2 60 60 65 61 3 + 40 40 35 39  Gender Women 67 62 63 64 Male 33 38 37 36  Age Under 35 20 15 15 20 35 – 49 34 27 25 20 50 + 46 59 60 60 ’00 ’04 ’08 ‘12  Times visited % % % % First time 24 25 26 26 1 - 3 times 29 30 29 30 4 - 20 times 33 31 31 30 20+ 15 14 13 14  HH Income Under $40,000 18 17 10 11 $40K - $60K 28 23 18 13 $60K - $100K 34 34 36 31 over $100K 20 26 35 44 The pattern is consistent, except the proportion with higher household incomes has increased.

5. 5 IS FREDERICKSBURG THE MAIN DESTINATION? The pattern is consistent, with 80% of the visitors choosing Fredericksburg as their main destination 2012-’13

6. 6 STAYING OVERNIGHT As in prior years, most visitors stay overnight

7. 7 OVERNIGHT LODGING Lodging patterns have not changed since the previous studies 2012-’13

8. 8 LENGTH OF STAY 2012-’13

9. 9 LENGTH OF STAY Over half of the visitors stay at least two days, more than in 2000 2012-’13

10. VISITOR CHANGES since 2000  Income – top group ($100,000+) increased dramatically from 20% to 44%.  Gender – although women are still primary visitors (64%), the gap is narrower.  Overnight visits – a greater percent of visitors are staying overnight from 59% to 66%. 10 2012-’13

11. 11 PROFILE OF A FREQUENT VISITOR Those who have been to Fredericksburg 4+ times represent:  44% of all visitors  from San Antonio, Austin or Hill Country They are more likely to be:  women 50-69  In higher income households  Shoppers!  spend an average of $545.00  looking for a great dining experience, wildflowers, peaches, or just visiting friends.  less impressed with the variety of attractions. 2012-’13

12. 12 TOP REASONS TO VISIT Shopping continues to be the top motivation to visit. The wineries, historic sites and restaurants are also primary draws. 2012-’13

13. 13 TOP REASONS TO VISIT Shopping is not as dominant a motivator as in prior years. Touring wineries is the only activity that has increased substantially since prior surveys. 2012-’13

14. 14 VISIT MOTIVATIONS 2000-’13 The wine industry is having a profound influence on visitors’ motivations. 2012-’13 KEY: 2012=blue 2000=red Direction: Positive = green Negative = brown Shopping is still a big draw, but it has exper- ienced significant decline.

15. TRACKING THE APPEAL OF SEASONAL ATTRACTIONS 15 Best Quarter 2000200420082012 Romantic Getaway 132%27%28%34% Wildflowers244%52%36% Peaches325%31%22%27% Shopping370%64%61%47% Tour Wineries Q 1 or 410% (Q4)27% (Q4)29% (Q1)38% (Q1) 2012-’13

16. 16 PURCHASE PLANS: All Visitors Average $536 2012-’13

17. 17 PURCHASE PLANS: Overnight Visitors Average $665.90 2012-’13

18. 18 EXPECTATIONS: Texas hospitality is top draw Fredericksburg continues to make the strongest impression as a place with Texas Hospitality. Chart displays only the “exceeded expectations” scores. 2012-’13 Note: this question added in 2004 survey

19. TOP VISITOR HOMES 2012-’13 19 RANK SPEND San Antonio 1 $410 Houston 2 $730 Dallas 3 $592 Ft. Worth/Arl. 4 $534 East Coast 5 $582 Hill Country 6 $517 Austin 7 $385 Galveston 8 $712 Pasadena/ Pearland 9 $771 1 2 34 5 8 6/7 9

20. TRACKING VISITORS’ HOMETOWN Our top metro shares have increased from 2008 for DFW, Austin & San Antonio residents. 20 2012-’13

21. 21 SOURCES OF INFORMATION Word of mouth is still the best medium, and Internet sites have jumped up to the top ad source Includes CVB, TripAdvisor, local merchants & FB sites 2012-’13

22. INTERNET SITES 22 2012-’13 Visitors conduct a range of web searches, which means all retail sites are valuable.

23. TOP COMMENTS Positives % of all comments  Great! No complaints33%  Don’t change a dang thing! 6% Concerns  Restaurant/lodging/retail15%  Keep the stores open longer12%  Parking/traffic/transportation 9%  Too expensive 3% 23 2012-’13

24. IMPLICATIONS FOR FUTURE MARKETING  The visitor profile remains consistent, but many visitors are now more likely to come from:  higher income homes  DFW, Austin and San Antonio areas.  Visitors are planning to stay longer and spend more than in prior years.  Visitors continue to enjoy their experience – especially “Texas hospitality”  Motivations for visiting are consistent – with shopping topping the list, but Winery tours are becoming a bigger draw.  Internet is the primary information source (aside from word of mouth) 24 2012-’13

25. IMPLICATIONS FOR FUTURE PRODUCT DEVELOPMENT  Retail mix Although shopping is still the top motivation to visit, the draw has declined, as visits to wineries and historic sites increases. New, distinctive retail will reinforce a key motivation to visit.  Open hours Retail and attraction hours must expand to meet the needs of those visitors spending several nights in the area. If present facilities do not step up, new options for late night hospitality should be found.  Signage and transportation: As the area expands, newcomers are confused about what to do, where to go, and how to park. Investments in clear and unique signage, maps and local transportation solutions will be greatly appreciated. 25 2012-’13