1. JerryHenry & A S S O C I A T E S FY 2005 Lake of the Ozarks Convention & Visitors Bureau Conversion Study Performance Analysis & Profile Prepared by Jerry Henry Market Research Consultant Jerry Henry & Associates November 2005

2. JerryHenry & A S S O C I A T E S 2 The Lake of the Ozarks Convention & Visitors Bureau received nearly 23,000 direct inquiries, 88,000 overall during the 2005 fiscal year (July 1, 2004 through June 30, 2005). Of these, a random sampling of 12,000 physical addresses was taken from the list of inquiries provided, and a reverse append process assigned phone numbers to those direct inquiries. The net result was a calling list of nearly 8,000 phone numbers. This list in turn was used to conduct a telephone survey with respondents during the first week of November 2005. Methodology

3. JerryHenry & A S S O C I A T E S 3 A total of 635 personal interviews were conducted among inquirers, and from those interviews, a total of 400 converted visitors were surveyed. This size of sample provides for a maximum margin of error of +/- 3.9% on the conversion rate and +/- 4.9% on visitor trip characteristics, both at a 95% confidence interval. Methodology

4. JerryHenry & A S S O C I A T E S 4 Executive Summary Lake of the Ozark’s FY 2005 advertising efforts performed exceptionally well. The LOCVB generated 88,000 inquiries on a total media investment of $735,000. This equates to a gross cost per inquiry of $8.35, which is slightly higher than the average generated from similar DMOs measured in the past. Based upon interviews conducted with the sample provided, 66.3% visited the Lake of the Ozarks area between July 1, 2004 and June 30, 2005. These visitors reported spending $846 per party during their 4.1 night stay in the area.

5. JerryHenry & A S S O C I A T E S 5 Executive Summary Extrapolating these results to the entire list of 88,000 inquiries provides a net converted visitor estimate of 58,349 and gross spending of $49.4 million. This in turn produced a return of $67.19 in visitor revenue for every $1.00 invested in media placement. Based upon results from similar studies, LOCVB’s $67.19 return on investment is comparatively strong. Also, while the $8.35 gross cost per inquiry is comparatively high, the LOCVB does appear to be targeting prospects better than average. That is, it’s net cost per converted visitor was $12.60, considerably lower than the average experienced by other destinations.

6. JerryHenry & A S S O C I A T E S 6 Executive Summary The Lake of the Ozark’s strong marketing performance is likely tied closely to the fact that most (72%) respondents not only remembered receiving the advertising materials they requested, but nearly half of those felt the materials were somewhat or very useful in helping them make a decision to visit the area. The average converted visitor was 48.3 years old, earned an annual household income of $69,400, and spent 4.1 nights in the area. Over one-third were visiting for the first time and the majority stayed at resorts (both large and small) or condominiums.

7. JerryHenry & A S S O C I A T E S 7 Executive Summary Nearly half of converted visitors had children with them on their trip and the most popular activities participated in were shopping, boating, fishing, visiting a state park and playing mini-golf. Of those who went boating, just over half used their own boat or that of a friend. Had they not visited Lake of the Ozarks, the most popular alternative destination would have been Branson/ Table Rock Lake (12%). Other destinations mentioned frequently included Florida, Colorado, and St. Louis.

8. JerryHenry & A S S O C I A T E S 8 Study Results

9. JerryHenry & A S S O C I A T E S 9 66.3% Conversion Rate In Fiscal Year 2005 (July 2004-June 2005), 66.3% of the inquiries made to the Lake of the Ozarks CVB converted into visitors. This is significantly higher than the industry standard which is typically in the 30% to 60% range. Sample sizes by medium were too small to provide valid and accurate estimates by source except in the case of email inquiries. Email had a sample size of 439 and generated a conversion rate of 63.6%.

10. JerryHenry & A S S O C I A T E S 10 Overall FY 2005 Conversion Rate Two-thirds of those who inquired indicated that they ultimately visited Lake of the Ozarks in FY 2005.

11. JerryHenry & A S S O C I A T E S 11 Cost Per Inquiry The Lake of the Ozarks CVB’s advertising investment in FY 2005 was $735,000 including both co-op and non co-op media expenditures. Spread across all 88,000 inquiries that were generated, this equates to an average cost of $8.35 per inquiry which is somewhat higher than average. Destinations’ cost per inquiry tend to vary widely. However, as a general rule anything under $5.00 per inquiry is considered reasonably low while anything over $10.00 per inquiry is comparatively high. Lake of the Ozark’s $8.35 cost per inquiry puts it somewhere around the high side of average.

12. JerryHenry & A S S O C I A T E S 12 Financial Performance Nearly two-thirds (66.3%) of those who inquired directly with the LOCVB converted into visitors and spent an average of $846 per party on their trip to Lake of the Ozarks. Among those randomly sampled this equated to an estimated direct spending figure of $12.8 million and a return on investment of $17.35 in visitor spending for every $1.00 invested in media placement. Extrapolated to the entire list of 88,000 inquiries, gross direct spending was $49.4 million and generated with a return on investment of $67.19.

13. JerryHenry & A S S O C I A T E S 13 Cost Per Converted Party Given the LOCVB’s comparatively high conversion rate, the $8.35 gross cost per inquiry is somewhat negated. That is, while the LOCVB may have paid somewhat more than average for each inquiry generated, the net cost per converted party at $12.60 was lower than average. Hence, Lake of the Ozarks may be generating fewer inquiries than other destinations for the amount of money invested, but the inquiries generated appear to be more targeted which ultimately results in a higher conversion rate and more converted visitors for the effort.

14. JerryHenry & A S S O C I A T E S 14 Summary Data Results Ad Investment$735,000 Inquiries 88,000 Spending per Inquiry$ 8.35 Conversion Rate 66.3% Visitor Parties 58,349 Spending/ Party$ 846 Gross Revenue$ 49.4M Cost/ Converted Party$ 12.60 ROI$ 67.19

15. JerryHenry & A S S O C I A T E S 15 Visitor Profile The following charts & graphs are representative of inquirers who converted to visitors.

16. JerryHenry & A S S O C I A T E S 16 Most Recall Receiving Fulfillment Materials Over 70% of respondents recalled receiving the advertising materials mailed to them after they inquired at the LOCVB.

17. JerryHenry & A S S O C I A T E S 17 How Well the Advertising Materials Influenced Visits Nearly half (46%) of respondents indicated the advertising materials either somewhat or significantly influenced their decision to visit.

18. JerryHenry & A S S O C I A T E S 18 Other Destinations Considered In an unaided question, respondents indicated they had also considered visiting Branson, Florida, Colorado and Table Rock Lake among others.

19. JerryHenry & A S S O C I A T E S 19 Season of Most Recent Visit The majority of converted visitors traveled to Lake of the Ozarks in the summer months.

20. JerryHenry & A S S O C I A T E S 20 Party Composition Over half (55%) of visitors who contacted the Lake of the Ozarks CVB were adults. Families with children comprised 45% of the total parties who visited, much higher than the U.S. average of 28%. Those who contacted the LOCVB by email and/or visited in the summer months were more likely to have children with them.

21. JerryHenry & A S S O C I A T E S 21 Age of Visitors The average adult age of converted visitors was 48.3 years, nearly a decade younger than the average Branson visitor, but slightly older than the overall Lake of the Ozarks visitor.

22. JerryHenry & A S S O C I A T E S 22 Prior Visitation Over one-third of converted respondents said they were visiting the Lake of the Ozarks area for the first time. Repeat visitation accounted for the remaining balance. Those contacting the LOCVB by email, families and those visiting in the Spring months were somewhat more likely to have been visiting the area for the first time.

23. JerryHenry & A S S O C I A T E S 23 Household Income Average household income among respondents was $69,400 with 57% earning between $50,000 and $100,000. Those contacting the LOCVB by email, parties with children, and those who visited in the off-season tended to have higher incomes than other segments.

24. JerryHenry & A S S O C I A T E S 24 Accommodations Condos, and Resorts (both large and small) represent nearly two-thirds of the accommodations used by converted respondents.

25. JerryHenry & A S S O C I A T E S 25 Length of Stay Over half of the respondents reported spending 4 or more nights in Lake of the Ozarks on their last trip to the area. Average length of stay was 4.1 nights.

26. JerryHenry & A S S O C I A T E S 26 Decision Time Over half of the respondents reported that they had been planning their trip to Lake of the Ozarks for more than one month prior to actually traveling.

27. JerryHenry & A S S O C I A T E S 27 Market Share & Activity Participation Fishing, Boating and Shopping are the three most popular activities participated in by converted visitors.

28. JerryHenry & A S S O C I A T E S 28 Most Use Their Own Boat or One Belonging to a Friend Of the 53% who went boating while at Lake of the Ozarks, over half used their own boat or that of a friend or colleague.

29. JerryHenry & A S S O C I A T E S 29 Origin DMA Where the Converted Visitors Live The top origin markets for LOCVB’s converted visitors included St. Louis, Omaha and Kansas City.

30. JerryHenry & A S S O C I A T E S 30 Origin State Where the Converted Visitors Live Missouri residents accounted for 30% of Lake of the Ozark’s converted visitors while more than two-thirds came from out-of-state.

31. JerryHenry & A S S O C I A T E S 31 Very Strong Intent to Return Nearly three-quarters of respondents indicated they were very likely to return to the Lake of the Ozarks area over the next three years.

32. JerryHenry & A S S O C I A T E S 32 Summary Bullets Marketing Efforts Performed Well. Lake of the Ozark’s advertising efforts performed very well in FY 2005. Conversion rate, cost per converted party, and return on investment were all better than average. Advertisements Well Targeted. Lake of the Ozarks does not generate as many total inquiries per dollar as do other destinations. However, their ads appear to be somewhat better targeted given their higher conversion rate and lower cost per converted visitor party.

33. JerryHenry & A S S O C I A T E S 33 Summary Bullets Fulfillment Package was Helpful. Most recalled receiving the advertising materials they had requested and nearly half said that information was somewhat or very important in their decision to visit Lake of the Ozarks. Near Ideal Prospects. Given converted visitors’ lengths of stay, origin markets and spending per party; it would appear that these customers generate more value per visit than the overall average customer in the area.

34. JerryHenry & A S S O C I A T E S 34 Jerry Henry Market Research Consultant Jerry Henry & Associates 509 Hawthorne Drive Nixa, MO 65714 Phone: 417.725.0550 Email: jhenry@jerryhenry.netjhenry@jerryhenry.net Website: www.jerryhenry.netwww.jerryhenry.net