alaska tourism marketing

his year has been devastating for Alaska’s tourism sector, which experienced a slump in visitor numbers, substantial revenue losses, and other impacts dispensed by the COVID-19 pandemic. But what does that mean for the future of the state’s visitor industry? To address this and other important questions, visitor bureaus statewide shared their insights on Alaska’s tourism sector.

The Alaska Travel Industry Association (ATIA) is hopeful about tourism’s prospects for 2021. Improvements in rapid testing capability—and hopefully a vaccine—will go a long way toward supporting prospective travelers’ decisions to visit Alaska, says ATIA President and CEO Sarah Leonard. “ATIA has also developed industry protocols for safe business operations for tourism businesses and is promoting Alaska’s wide-open spaces as a safe travel destination,” she says. “While funding is limited, ATIA will continue to keep Alaska’s brand in the travel marketplace to encourage potential travelers to keep Alaska top of mind.”

According to Leonard, 2020 was supposed to be a record year for tourism in Alaska, building upon 2019’s more than 2.25 million visitors. The pandemic, however, brutally interrupted that trajectory. “While we will not see record numbers in the near future,” she says, “we hope to reach comparable numbers within the next two to three years.”

In typical years, Alaska’s tourism industry contributes more than $4 billion in economic activity to the state, Leonard says. That includes more than $100 million in visitor-generated revenue to the state and more than $88 million to local and borough budgets. “With 99.9 percent of cruise ship sailings cancelled in Alaska, that revenue wasn’t captured this summer,” she says.

This spring and summer, ATIA ran informal industry surveys in which more than 85 percent of respondents anticipated losing more than 50 percent of their revenue in 2020. Cash flow has been a huge issue, especially when many businesses take deposits months in advance, Leonard says. She adds, “Some of our industry businesses were able to use CARES Act and other federal and state funding to cover essential costs this year.”

Leonard has learned several key take-aways from dealing with the pandemic’s impact. For example, the pandemic underscored that Alaska is in a challenging position when it comes to attracting visitors. She explains: “We’re a long-haul destination, so we don’t have the benefits of other states when it comes to short driving vacations and travel across state lines. Our industry is dependent on cruise and air for visitor travel [60 percent of visitors travel by cruise ship and 36 percent by air].”

SARAH LEONARD ATIA

She adds: “As we look forward to the return of travel, tourism businesses will place an even greater emphasis on health, safety, and sustainable operations. People in the tourism industry are also amazingly resilient and entrepreneurial, and I’m already hearing about businesses developing new attractions, activities, and processes to promote safe travel.”

ATIA has implemented various initiatives to navigate the daunting landscape etched by the pandemic. For example, working with regional and local destination marketing organizations across the state and with the support of GCI, Alaska Airlines, ACS, the Alaska Railroad, and others, ATIA launched a “Show Up for Alaska” campaign to support in-state visitation to local tourism businesses. Explaining the significance of this effort, Leonard says, “By encouraging Alaskans to explore our own backyard, we were able to support local businesses as well as the communities that rely on taxes and user fees to support local budgets.”

The association will continue focusing on its mission to support its industry and promote Alaska as a premier travel destination. “While marketing funding will be tight this year, we will continue to promote our industry protocols for safe operations—and Alaska’s wild lands and open spaces as a safe travel destination. We are finding visitors want small-group, personalized experiences, and our businesses are developing new ways to support social distancing, enhanced cleaning methods, and other safety precautions as part of that effort. Travel and tourism will look different, but people still want to visit Alaska,” says Leonard.

ATIA is also working to mitigate the “lost season” of summer 2020. As such, the association is encouraging businesses and organizations, from small mom-and-pops to larger members, to be flexible and continue to adapt their operations for this winter’s and into next summer’s travel seasons. “Recovering from the summer of 2020 will probably not happen in one year,” Leonard says. “Businesses should plan and look out to 2021, 2022, and beyond to recover.”

Visit Anchorage President and CEO Julie Saupe recognizes there’s a great deal of uncertainty about 2021 and the visitor industry. There are many questions that no one has an answer for, and tourism in Alaska next year and beyond relies in part on developments that are far beyond anyone’s control, she says.

However, she maintains: “There’s a great deal to be done to preserve our place in the minds of future travelers, protect our businesses and community from adverse effects of the pandemic, and promote the destination before the new types of traveler that will emerge on the other side of all this. The recovery is still to start, and it is likely to take several years to climb back to our former heights once things do begin to rebound. It’s up to us to lay the groundwork now to ensure we bounce back better.”

In terms of the pandemic’s financial impact, the anecdotal news is dire. “We’ve heard that many Anchorage businesses report that they saw only a slim fraction of what they would normally see. Some report only 10 percent to 20 percent of what their regular business would be for summer 2020. That’s eye-opening,” Saupe says.

She adds: “Through August, hotel revenue in Anchorage was down about 60 percent compared to 2019. The effects of the pandemic are wide-reaching and ongoing. This is only a partial accounting of likely losses in tourism and in the wider community.”

In its own effort to mitigate some of the pandemic’s negative effects, Visit Anchorage plans to put $3.3 million into promotion for Anchorage in the year ahead. That’s about 60 percent of what was put into the market pre-pandemic. “Sharp, often painful cuts at the outset are going to keep us in a place to get the best returns, given the circumstance,” Saupe says.

The pandemic has indeed been an eye-opener for Saupe. Sharing her three big lessons, she says: “First, I think we all have a wider understanding of just how central travel and tourism is to Anchorage’s bottom line. No sector is spared, but we see now what tourism brings to our communities in terms of financial gains and employment. Visitation also contributes to a feel in the community in more intangible ways—when people are visiting, there’s more activity in shops, restaurants, and on sidewalks, and a bustle that I have missed.”

She continues: “Second, content and engagement are key. Even when people can’t visit, keeping us top-of-mind is vital. Despite the conditions of the moment, we have to inspire curiosity, spark a passion to visit, so when the time is right again, we’re still at the top of their list. Finally, amid big, global challenges, no one should go it alone. We have to be there for one another supporting the people who make up our community.”

JULIE SAUPE Visit Anchorage

Visit Anchorage, like its counterparts, has engaged in various initiatives to ride out the effects of the COVID-19 pandemic. As visitation from outside Alaska dialed down in spring 2020, Visit Anchorage turned its focus to fielding local/in-state campaigns. “The support of locals has been critical for Alaska businesses,” Saupe says. “But with Alaska’s relatively small population, these only can reach a fraction of the people our efforts would typically connect with through national campaigns.”

As part of these efforts, Visit Anchorage ramped up its content creation and curation. This entailed reinforcing its photo and video libraries, along with putting together new articles, stories, and posts tailored to future visitation or incorporating health and safety best practices. For example, there were articles suggesting reading lists and recipes from Alaska anyone could enjoy at home as well as a virtual tour of Anchorage on Instagram, with stops chosen by vote.

“Apart from that, we preserved promotions budget by severely reducing and controlling costs,” Saupe says. “Unfortunately, that included staff furloughs and layoffs. It also meant eliminating all but the most cost-effective means of marketing. Often these latter cuts were decisions made for us, for example, as tradeshows were cancelled or postponed by their organizers.”

Visit Anchorage plans to take a measured approach to introducing new programs and campaigns to bring in would-be visitors. There is no crystal ball, so the best approach is to be ready when the time is right, Saupe says. “I hope that we’ve managed to strike a delicate balance this year and for 2021,” she adds.

Elaborating, she says: “On the one side, we’ve taken a clear-eyed and conservative approach to budgeting. That will keep our plans and programs in line with what we think can be expected. On the other side, we’ve sought to maximize the power and reach of our programs to ensure the best possible outcomes for our community and our industry. That’s not too different from what we do in any year. But in a time like this, it is vital. As 2020 ends, we are fielding new research, further reinforcing photo and video assets, and working to improve Anchorage.net with better functionality. These will adapt us for new traveler demands, remarketing our city to the most likely traveler post-COVID, and supporting visitor businesses devastated by COVID.”

Saupe says Visit Anchorage will continue to focus on engaging and inspiring independent travel, as it’s likely to see green shoots first. That means investing in new digital tools to help sell and doubling down on online and social engagement. “We continue to connect with travel advisors and meeting planners, laying the groundwork for a future return of group sales, meetings, and conventions,” she says.

At this juncture, Saupe is encouraging everyone to shop local and buy gift cards to tourism businesses for holiday shopping. She further urges people to “join a tour; visit an attraction; support our arts and cultural institutions—it all helps friends and neighbors and keeps our community going.”

Consistent with her colleagues, Explore Fairbanks President and CEO Deb Hickok is predicting a slow recovery for Alaska’s tourism sector. A full recovery is dependent on a number of variables. This includes the lifting of travel restrictions, which will be influenced by the widespread availability of rapid testing and, eventually, a vaccine. “Consumer confidence in air and cruise travel is a key to the recovery of Alaska tourism,” she says.

The estimated revenue losses for 2020 for the Fairbanks North Star Borough—which encompasses the cities of Fairbanks and North Pole—are stark. “We had originally estimated a 62 percent decrease for 2020, but we have seen numbers slightly higher than projected through August 2020; we are just below 57 percent net loss from the same time frame in 2019,” Hickok says.

DEB HICKOK Explore Fairbanks

Hickok says continued federal assistance for the hard-hit travel industry is imperative to keep businesses afloat and destinations marketing. And Explore Fairbanks is working to keep its business partners informed about CARES Act funding programs. “I have a sign on my desk that says, ‘Ensure that you have exhausted every option to secure stimulus funding.’ Personally, I’m like a dog on a bone to secure funding for the organization.”

Like many visitor bureaus, Explore Fairbanks has taken active steps to respond to the pandemic. In April, the organization made the decision to cut staff and implemented across-the-board salary cuts for remaining staff to ensure that it could continue marketing. “We firmly believe that we should continue marketing,” Hickok says. “We could have easily paid our staff and done nothing, but that’s not how we roll. That’s not what we are about. I think there is a recognition from our team because they responded by working harder than ever.”

Also, in April, Explore Fairbanks developed a COVID-19 Remarketing Recovery Plan to maintain brand awareness. The goal is to reach travelers who hunkered down and are dreaming about travel and to retain market share when normal travel resumes.

An equally important marketing objective for the organization is to motivate people to plan a visit now. So, in the spring and summer, Explore Fairbanks rolled out digital, publicity, and social media tactics to local audiences. “Most recently, we launched a national push for aurora season on August 20,” Hickok says. “The winter campaign is being developed.”

Explore Fairbanks has also launched training platforms to domestic and international tour operators and travel advisors to arm them with destination information. “As normal travel resumes, they can hit the ground running in selling the region to their clients,” Hickok says. “We are also developing a similar training customized for meeting planners.”

Historically, Explore Fairbanks has been recognized as an entrepreneurial organization, and this corporate culture was critical to proactively reacting to the pandemic, Hickok says. “The team demonstrated an admirable combination of thoughtfulness and flexibility that was required to address the enormous challenges. I am continually inspired by the positive attitudes of our board, business partners, and staff in the face of adversity.”

Liz Perry, president and CEO of Travel Juneau, markets Alaska’s capital city for conferences and non-cruise ship travelers. She predicts that Alaska will see far fewer visitors in 2021 and beyond. As a long-haul destination, Alaska’s tourism industry may require a market cycle to reach profitability. “This means that some business will have to pivot to new or different markets/products, which many already have,” Perry says.

Perry anticipates seeing much lower revenues, in general, from previous years both on the municipal support and earned-income sides. “We expect to lose 40 percent of our usual partner revenue and anticipate flat or reduced municipal support, which was reduced by 45 percent for FY21.”

However, Perry emphasizes that making predictions or estimates about the 2021 season is tricky at best. “We’ve learned a lot about the illness over the last six months, but predicting numbers of visitors and related revenue is futile at this time, given the high level of uncertainty,” she says. “We do know that restarting needs to be slow, monitored, and with a lot of thought around safety from transmission.”

Travel Juneau has undertaken various initiatives to weather the COVID-19 crisis. For instance, the organization immediately began cutting costs wherever possible, reducing or completely cutting professional development, operational costs, and some aspects of paid marketing. “This resulted in staff furloughs, alongside salary and benefit cuts,” Perry says.

It also allowed its partners to make payments on their marketing packages and hosted a virtual travel fair since the annual live event was cancelled. “This brought our partners some additional cash they might not have had and reminded our communities to support these businesses if possible,” Perry says.

New initiatives are also being launched to entice potential visitors—and their spending power—back to Alaska. However, Perry says much depends on the comfort level of residents to open the state to visitors, which hinges on the number and rate of infections; the availability of fast, reliable, and inexpensive testing; and the possibility of an effective vaccine. She adds: “Without those in place, Alaska can’t come close to a full re-opening, nor should it. Our perspective is that our community’s health comes first. Setting our sights on next season and beyond, we’re launching a Juneau Cares campaign to align our visitor businesses in creating, communicating, and implementing safety protocols and mitigation plans and promoting that to prospective visitors.”

LIZ PERRY Travel Juneau

Perhaps the best way to lessen the blow of the “lost season” of summer 2020, Perry says, is to save as much cash as possible to roll over into the next fiscal year. “We also need to take care of ourselves over the winter; many of us are burned out and stressed out,” she says.

The pandemic has taught Perry a number of important lessons. Citing an example, she says, “The high level of uncertainty with this illness, including testing for it and the lack of a reliable vaccine against it, means we cannot make predictions about when the state can fully reopen or what our visitor numbers will be in the future.”

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Gov. Dunleavy launches $5 million Alaska tourism marketing campaign to brand the state as COVID-19 safe

Gov. Mike Dunleavy stars in a new commercial aimed at boosting tourism to Alaska this summer that’s part of a $5 million marketing campaign funded by federal COVID-19 relief money.

The ad bills the state as an exotic but COVID-safe locale in an effort to boost independent travel amid cruise ship cancellations linked to the pandemic.

But while Alaska’s overall coronavirus case counts have dropped sharply, the 30-second visitor spot released Monday relies on outdated vaccination information.

The ad shows Dunleavy on a deck at Juneau’s Mount Roberts Tramway then cuts to shots of the Alaska Railroad, a kayaker near blue ice, bears catching fish, a moose, people gold panning and fishing, and a dogsled ride on a glacier.

“We’re inviting you to come to our great state this summer. If you want to see glaciers, bears, pan for gold ... you name it, Alaska is the place,” the governor says in a voiceover. “Having one of the highest vaccination rates in the country, our people are safe. And you will be too.”

Alaska led the nation in vaccination rates for a number of weeks starting in late January, a statistic buoyed in part by the success of the tribal health system getting rural residents of all ages immunized quickly.

The state’s COVID-19 case counts and hospitalization rates have dropped compared to last year though flare-ups continue, most recently in Ketchikan, and before that Fairbanks and Mat-Su. Over the weekend, state health officials reported just 140 new confirmed positives from Saturday through Monday including only 50 Monday.

But Alaska is no longer anywhere near the top nationally when it comes to vaccine distribution.

As of Monday, the state ranked 30th out of states and territories for number of COVID-19 vaccine doses administered per capita, according to a Centers for Disease Control tracker .

Alaska’s rate of vaccination among total population, at 41.2%, was actually below the U.S. average of 42.5% as of Monday, according to Bloomberg’s tracker .

Statewide, nearly half of all Alaskans over 16 are fully vaccinated. Some tourist-drawing regions are higher, like Juneau at nearly 70%. But some popular destinations remain far below that level, including Dunleavy’s home turf of the Matanuska-Susitna Borough -- where about a third of residents are vaccinated -- or the Kenai Peninsula at about 40%.

Asked about the discrepancy regarding vaccination rates, a spokesman for the governor said the video was shot “weeks ago” and Alaska is open for business, as shown by the end of COVID-19 restrictions.

[ Anchorage’s mask mandate is now advisory after Assembly speeds up city’s timeline ]

“With mask mandates going away including in Anchorage and communities opening up across the state, vaccinations are a huge reason behind that,” spokesman Corey Allen Young wrote in an email.

He did not respond directly to an additional request asking for the governor’s response on the state’s drop in vaccine rankings or the ad’s use of outdated information.

The Dunleavy commercial is part of a broader effort announced last month to encourage Alaska tourism that includes vaccinations for tourists at Alaska’s airports starting June 1.

Tourism-dependent businesses around the state are entering a second summer without the large cruise ships that bring about two thirds of Alaska’s travelers here; losses last year were estimated at $3 billion.

The U.S. Senate last week passed a bill that could allow large cruise ships to visit Alaska this summer despite Canadian restrictions that have closed that country to cruise travel. It still needs to pass the House and be signed by President Joe Biden.

The state, like many others, is also in the midst of a rental car shortage that could make for tricky trip planning this summer.

Money for the new ads comes from Coronavirus Aid, Relief, and Economic Security (CARES) Act funds appropriated to the Dunleavy administration by the Alaska Legislature, according to the governor’s office. Funding breaks down into $4 million for television spots, $500,000 for radio, and $500,000 for digital advertisements — a total of 1,700 spots over nearly seven weeks.

The contract for the campaign was exempted from state procurement rules according to a request for information the governor’s office posted in April. The state received 11 letters of interest, five from out of state firms, according to Young.

Selected were Brilliant Media Strategies, for television; Porcaro Communications, for radio; and Optima Public Relations, for digital.

The Alaska Travel Industry Association, the nonprofit that manages the Travel Alaska statewide destination marketing program, is providing its website for more information, according to spokesman Jeff Samuels.

The association is managing a separate national paid digital campaign to encourage travelers with the slogan: “Go Big, Go Alaska.”

Tour groups and tour-sales booths fill the waterfront in downtown Juneau on Sunday, June 2, 2019 as the cruise ship Ovation of the Seas disgorges passengers. (James Brooks / ADN)

Word of the state ad campaign was cheered by members of the tourism industry still reeling from pandemic losses.

Revenues at Juneau’s Trove boutique gift shop were down 98% last year, according to co-owner Daren Booton.

“We’re for anything that going to help visitors increase,” Booton said. “It’s such a hit for Juneau and Southeast Alaska, we’re so reliant on the cruise industry, so anything we can do to increase the independent traveler when the cruise industry is not going is a good thing.”

The Alaska Railroad delayed the start of this year’s season until after Memorial Day weekend and is seeing “decent numbers” of bookings, said spokesman Tim Sullivan. The railroad is requiring full masking and maintaining social distancing.

But without cruise ships, the outlook this season is “not the best,” Sullivan said.

“This is something that’s needed for the state,” he said, of the ad campaign. “We are glad to see it happening.”

Zaz Hollander

Zaz Hollander is a veteran journalist based in the Mat-Su and is currently an ADN local news editor and reporter. She covers breaking news, the Mat-Su region, aviation and general assignments. Contact her at [email protected].

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Exploring New Frontiers: The Future of Tourism Marketing in Alaska

Digital Strategies to Attract the Next Wave of Alaskan Tourists

Introduction:

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In today's fast-paced digital world, capturing and retaining consumer attention is a formidable challenge. We once heard a rumor that the average human attention span had shrunk to just eight seconds, even less than a goldfish! But as it turns out, this 'fact' swam away from the truth faster than a salmon in Alaska's rivers. It was just a myth , much like the elusive Jackalope or the idea that moose make good pets. In reality, we humans can focus quite well, especially when engaged with compelling content.

The Digital Marketing Iceberg: Depth Over Surface

According to WARC , a startling 80% of marketers find difficulty in achieving success with display ads. At Alaska Digital , we often encounter concerns about the efficacy and measurement of digital advertising. Our depth of experience in digital marketing allows us to unravel these complexities, offering solutions that are both effective and measurable.

Crafting Campaigns That Resonate

In Alaska's competitive tourism market, simply being seen isn't enough. Successful campaigns need to be memorable and distinct. Thinly spread marketing efforts often get lost amidst the sea of online content and produce lackluster results. A more effective approach involves concentrated, well-planned strategies. This method is akin to navigating Alaska's unique landscapes with precision—targeted, focused, and deliberate. It's about crafting marketing maneuvers that not only reach the audience but also resonate deeply with them, ensuring your message stands apart in the digital wilderness.

Beyond Impressions: The Art of Measuring Success

Modern marketing is as much about precision as it is about reach. Accurate measurement of campaign effectiveness is crucial. At Alaska Digital, we employ advanced methods for tracking and attributing success, shifting the focus from superficial metrics to those that truly signify engagement and conversion.

Embracing Digital Strategies in Alaskan Tourism

Data-Driven Targeting: Delving into consumer behaviors and preferences, we create personalized marketing campaigns that resonate with those drawn to Alaska’s allure.

The Power of Personalized Marketing : Custom-tailored messages and offers increase relevance and connection, enhancing the overall impact of the campaigns.

Visual Storytelling: Capturing Alaska’s scenic beauty and cultural richness through engaging visuals and narratives is key to drawing in potential tourists.

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The future of tourism marketing in Alaska, shaped by these digital innovations, offers a promising horizon. The key is to blend the unique Alaskan narrative with the precision of digital tools, creating a synergy that resonates with the modern traveler. As the digital landscape evolves, so must our strategies, ensuring they align with the interests and behaviors of potential tourists.

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The digital realm provides a canvas for Alaska's tourism sector to paint its story in vivid colors. Interactive experiences, virtual tours, and engaging online content can bring the essence of Alaska to life, enticing visitors with a taste of adventure before they even arrive. This immersive approach, coupled with strategic targeting, enhances the appeal, reaching audiences who seek the unique experiences Alaska offers.

Building a Sustainable Digital Ecosystem

Sustainability in tourism marketing goes beyond environmental considerations. It's about creating a digital ecosystem that continually evolves and adapts. By leveraging the latest technologies and insights, Alaska's tourism industry can sustain its growth and appeal in an ever-competitive global market.

Cultivating a Global Community

Alaska's tourism marketing isn't just about attracting visitors; it's about creating a global community of Alaska enthusiasts. Engaging storytelling, shared experiences, and interactive platforms can foster a sense of belonging, turning one-time visitors into lifelong advocates for Alaska's tourism .

Charting the Course for Tomorrow's Tourism

As Alaska navigates this digital frontier, the potential for growth and connection is immense. Embracing these new marketing avenues, while remaining true to Alaska's spirit, is essential for carving out a niche in the global tourism landscape. The journey may be complex, but the rewards are as vast as the Alaskan wilderness itself.

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If you're ready to explore how innovative digital marketing strategies can transform your approach to attracting tourists to Alaska, Alaska Digital is here to guide you. With our expertise in navigating the digital terrain and our deep understanding of Alaska’s unique appeal, we are equipped to help you make a lasting impact in the tourism industry. Let’s embark on this journey together and unlock the full potential of your business in the digital world.

Discover the Future of Tourism Marketing with Alaska Digital

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Governor cuts Alaska tourism marketing agency funding, putting its campaign on hold

Legislators are unpacking $215 million in vetoes made by the governor to see their potential impacts.

JUNEAU, Alaska (KTUU) - Gov. Mike Dunleavy has said he wants to market Alaska as a safe travel destination during the COVID-19 pandemic. On Thursday, he vetoed $10 million from the state’s tourism marketing institute.

Sarah Leonard, CEO of the Alaska Travel Industry Association, said an ongoing Alaska marketing campaign is now on hold after the governor’s vetoes were announced.

“ATIA’s current marketing efforts, and those by the Governor’s office, to attract travelers are starting to pay off this summer,” Leonard said by email . “However, without a funding allocation for statewide destination marketing of Alaska, the momentum that’s been created will be cut off and there will be no funding to market Alaska to potential travelers in 2022 and beyond.”

Corey Young, a spokesperson for the governor’s office, said via email that the ATIA has received significant federal funding allowing it to market Alaska during the COVID-19 pandemic.

Another veto of a $4 billion transfer to the constitutionally protected part of the Permanent Fund was not completed correctly by the Dunleavy administration. The budget sent back to the Legislature has that transfer intact.

The governor sent a letter to legislative leaders on Friday, saying that was an error caused by the “unusual time constraints” the administration encountered while reviewing the budget bill. He said it was his intent that the transfer be vetoed.

Rep. Zack Fields, D-Anchorage, cited the cut to tourism marketing, along with several others, as perplexing.

“What’s so strange about it is that these are projects that the governor’s own administration told the Legislature that they wanted us to fund,” Fields said. “So he’s eliminating jobs, but he’s eliminating jobs from projects that he identified — that’s just bizarre.”

There was $650,000 cut from two hatcheries benefiting sportfishing. The governor also vetoed funding to start building a hiking trail from Seward to Fairbanks that he himself proposed. Other vetoes would see planned construction projects at Alaska State Parks halted.

Just over $17 million was cut from Medicaid that some legislators expect the federal government will require to be paid back in 2022 as has happened in the past. The University of Alaska is also looking at a $31.6 million cut of funding that had been approved to tackle deferred maintenance.

The governor also vetoed the 2021 Permanent Fund dividend approved by the Legislature, calling it “a joke” and asked that legislators approve a new dividend when discussing a comprehensive fiscal plan. This year’s PFD would have been $1,100 if another three-quarter vote had passed.

Sen. Tom Begich, D-Anchorage, said these vetoes could effectively blow up negotiations between legislators.

“Now we’ve got to look at all these vetoes, determine the damage the vetoes are going to cause,” Begich said. “And we have to negotiate with all four caucuses how we’re going to resolve those vetoes. That is going to put the fiscal plan discussion on the backburner.”

Three quarters of the Legislature is needed to overturn any of the governor’s vetoes. Legislators can also pass another appropriation bill that funds the cut spending items through a simple majority vote, sending them again to Dunleavy’s desk for his consideration.

Some legislators say they are generally happy with the governor’s $215 million in vetoes.

Sen. Shelley Hughes, R-Palmer, applauded Dunleavy’s decision to cut one quarter of legislators’ per diem payments, saying that could encourage the Legislature to forge a permanent fiscal plan.

“We have to make some tough decisions and I think legislators are getting ready to do that and perhaps yesterday’s veto actions by the governor are a bit of a wake-up call,” she said. “And we need it.”

Some legislators are saying these vetoed spending items could become bargaining chips and could be restored during upcoming fiscal debates.

Vetoes for mental health spending are concerning for Begich.

He said they raise the specter of lawsuits by potentially breaching a 1994 settlement with the state over the role of the Alaska Mental Health Trust Authority and how mental health services are funded.

“Overall, it’s a really cruel budget,” said Jim Gottstein, one of the attorney’s from the 1994 case and the author of the Zyprexa Papers.

He said there have long been examples where the settlement has been breached, but this might rise to the level of an Alaska Mental Health Trust Authority beneficiary choosing to sue.

Copyright 2021 KTUU. All rights reserved.

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The Digital Revolution Is Here

Jan 4, 2019 | Media & Arts , News , Professional Services , Small Business

Alaska’s PR community talks digital, social marketing

Last summer, Thompson & Co. Public Relations launched a monthly Twitter chat to promote Alaska’s Tourism Marketing Program. 

The PR agency incorporated local travel writers, editors, and other influencers to help amplify tourism-related messages during the chats. The messages focused on fun topics and intriguing questions such as “What do I pack when I come to Alaska?” and “What are the top twelve icons to see when you’re here?” The campaign adopted a simplistic yet effective approach to leveraging Twitter. “It’s using a well-known platform and putting an Alaska twist on it,” says Jennifer Thompson, president and CEO of Thompson & Co. “It wasn’t super expensive—but it had a really wide reach.”

The successful Twitter campaign illustrates one of the key PR and marketing trends playing out in Alaska—digital. PR and marketing practitioners are increasingly using digital media to help clients connect with their target audience. A number of other trends are also at work, and agencies are adjusting their approach to carry out successful campaigns throughout the state.

Digital Driving Current Trends

The use of digital media represents a major trend in Alaska, according to Alexa Dobson, president of the American Marketing Association (AMA) Alaska Chapter. There’s a greater awareness of the importance of digital and technology on the side of clients and marketers, says Dobson, who is also a digital marketing specialist at Yuit Communications, an Anchorage-based strategic communications and software development firm. “We’re definitely hearing a lot more about the digital component of ad campaigns from clients,” says Dobson. “And digital is making up a larger portion of the campaigns we put together.”

However, the adoption of digital is occurring at a slower rate in Alaska than the rest of the United States. What’s transpiring now in Alaska is what was happening in the Lower 48 five years ago, Dobson says. “I think we’re consistently on a few years’ delay, but we’re definitely moving in the same direction,” she says. “I’ve always believed that this is an advantage if anything. In a sense, we have ‘future vision’ because we know what’s going on in the Lower 48, and we can scale to that.”

Marketers can also capitalize on this digital “lag time” to invest in their education, attend conferences, and meet with other agencies in the Lower 48. AMA Alaska strives to facilitate the education process for its members. “With AMA, we make an effort to bring up several out-of-state speakers every year so people who can’t travel can attend and get a sense of what’s going on with marketing,” Dobson says.

Digital marketing is also impacting the way Alaska’s marketers produce content by making them more strategic and purposeful. It’s much more important to provide digital content that is relevant, adds value, and encourages engagement, according to Laurie Fagnani, president of MSI Communications, a full-service, Anchorage-based advertising agency. “Otherwise, people will tune you out,” she says. “Consumers are delivered endless amounts of ads online across many devices and platforms, making their attention a scarce resource. You only have a few seconds to catch their attention—don’t waste it.”

Another marketing trend that’s happening in Alaska is programmatic, digital-ad buys. MSI uses this type of advertising to give clients a targeted, scientific, and cost-efficient experience as well as an effective way to connect with audiences online. “It allows you to pinpoint your target market across channels based on their online habits, shopping trends, and viewing history,” Fagnani explains.

MSI also capitalizes on Connected TV (CTV) for serving targeted video ads to viewers who stream media on Internet-connected televisions, computers, and other devices. This enables the agency to penetrate major networks like ESPN, CNN, and Fox when users are viewing content on devices such as Chromecast, Roku, and Apple TV, reaching a younger demographic of “cord cutters.” Because CTV is delivered online, it allows for more specific targeting and reporting than that of a traditional broadcast campaign.

Fagnani says she is also seeing the continued personalization of marketing and, more recently, the automation of certain parts of that activity. The technology to create multiple versions of the same ad has existed for nearly a decade. But machine learning has entered the field now, and software will get exponentially better at making slight modifications to ad placement based on personal digital data. “Pair that with location-based technology and you can serve a highly-tailored message at just the right moment,” she says.

“Consumers are delivered endless amounts of ads online across many devices and platforms, making their attention a scarce resource. You only have a few seconds to catch their attention—don’t waste it.”

—Laurie Fagnani, President, MSI Communications

Image courtesy of MSI Communications

Social, Mobile, and Influencers

The use of social media is also a growing trend with Alaska’s marketing and PR professionals. Increasingly, companies are developing a social presence, says Michelle Renfrew, director of university relations at University of Alaska Fairbanks and past president of the Public Relations Society (PRSA) Alaska Chapter. “More organizations are seeing social media and digital marketing as core to their overall business organization,” she says. “They are allocating resources and staffing to these sorts of things.”

As another trend, Alaskans are steadily using mobile devices to stay connected to family, friends, and the brands they prefer. Mobile devices have forever changed how people communicate with one another, Renfrew says. They have also shaped consumer expectations when connecting with businesses. “Now we’re seeing advertising and sponsored content by brands in your news feeds all the time,” she says. “That definitely has implications. No longer do you have to go to the brick-and-mortar store; you can shop from home in your living room.”

Consumers can contact organizations instantly through their social media channels—and they expect brands to be responsive. “That means you really need to embrace it and follow through,” Renfrew explains. “As more and more people expect that immediate response, it will be more and more important for organizations to provide it. No longer can you wait until the end of the day. People are reporting the news 24/7. You can’t wait until the paper is printed to get the story out.”

There is also an increasing expectation of transparency among consumers in Alaska, says Thompson, who operates offices in Anchorage, New York City, and Houston, Texas. The national news scene and the inclusion of “fake news” has stimulated a greater need for transparency. Therefore, she encourages her clients to be very forthcoming and share as much information as possible with consumers. “It’s important that they spend time to make sure what we put out there is the truth,” says Thompson, whose firm specializes in brand messaging, media relations, social media strategy, event coordination, and crisis planning. “Our number one constituent in the PR industry is the media. So it is important that we coach our clients that the media is trustworthy and wants to do fair and balanced reporting.”

Influencers are coming more into play in Alaska. While this has been an ongoing trend nationwide, Alaskans are starting to leverage the power of influencers in their marketing and PR efforts. This allows them to reach more audiences, which is increasingly important as more people cut the cord and shun traditional media outlets. “People really trust other people—their friends and family—more than an ad,” she says.

Thompson & Co.’s goal is to help clients reach the right audience with the right story. This often involves ensuring clients have keyword-rich content that makes their website easier and faster to find with a smart phone. Thompson also encourages clients to do less social media advertising and use more videos, contests, and other tools to connect with people.

Most PR and marketing practitioners in Alaska have been gearing up for the migration to digital and social media for a while. For instance, Tyler Williams, the owner of Fairbanks-based Mammoth Marketing, began onboarding his clients to digital a couple of years ago. “I saw the writing on the wall, and I said this is an element that’s not going away so we need to be there to meet the demand for the clients,” says Williams, whose full-service agency serves clients statewide.

In fact, digital used to be a hard sell with clients, but now many of them are eagerly asking for help with Facebook and Google. Williams conducts the “bones” of the digital housekeeping first, making sure clients have an effective website, Google listing, AdWords, and Facebook page. Then he strategically incorporates other platforms like Yelp and Home Advisor as well as relevant directories. “There’s always your top three things to focus on, then you just start picking and choosing after that,” he says. “You cannot ignore Google, Facebook, and Instagram now. You might be able to ignore Snapchat, but that depends on the business and its needs.”

“As more and more people expect that immediate response, it will be more and more important for organizations to provide it. No longer can you wait until the end of the day. People are reporting the news 24/7. You can’t wait until the paper is printed to get the story out.”

—Michelle Renfrew, Director of University Relations University of Alaska Fairbanks

Photo by Sydney Michelle Photography

Alaska Trends Are Distinct

Many of Alaska’s marketing and PR trends are similar to those in the Lower 48, but there are some notable differences. For example, Alaska consumers expect to be able to closely interact with brands, but in larger markets consumer access to businesses is more restrictive. Local radio may not be a go-to news source nationally, but it’s still a very important component of marketing and PR in Alaska, Thompson says.

Also, there tends to be more personalization of advertising for Alaska’s rural areas than what typically happens nationwide or even in Anchorage. MSI uses targeted messaging in rural markets as a regular part of its statewide multimedia campaigns. That’s the approach the agency took for the independent expenditure, write-in campaign for Senator Lisa Murkowski. The campaign used Alaska Native regional corporation CEOs to customize targeted mini-campaigns for different locales. “We knew intuitively that the message would be more impactful if it was delivered by a trusted source,” Fagnani says.

In Alaska, marketers must modify their tactics to be successful, Williams says. “It’s challenging because we serve such a different and isolated sector of people, and our behaviors are so different,” he says. “What might work in the Lower 48 may not work here.”

Succeeding in the Industry

To excel in Alaska, marketing and PR professionals need a variety of attributes. However, experts cite relationships and networking as essential ingredients for success. It’s crucial to build relationships and network with people who are within the industry and the broader community, Renfrew says. “Alaska is a big state with a small population; people are very connected here,” she says. “I think it’s important for a PR professional to understand you’re always representing your brand.”

Renfrew encourages marketing and PR practitioners to get involved with organizations like PRSA and AMA to gain professional development, network, and find a mentor. She also advocates volunteering to develop their resume, make connections, and serve the community. She says: “You’re helping out a small business and enhancing your skills, which will help you down the road. It’s a win-win.”

Dobson expressed similar sentiments. She says marketing and PR professionals should do whatever they can to develop their network early and often. Volunteering or joining a board or committee can be advantageous for someone who is new to the scene or trying to meet someone outside their regular job duties. She explains: “You’re trying to increase your visibility as someone who is contributing to the community. It’s not enough to be someone who is good at marketing. People need to know you, trust you, and like you.”

Thompson says it’s important to maintain transparency with stakeholders, be an avid consumer of the news, and be results-driven. It’s also essential to be a “sleeve roller upper” and maintain the mentality that no job is too big or too small for team members. “We really have a mentality at the agency that everybody should do everything,” she says. “It’s beneficial for our clients because at the end of the day their job gets done professionally.”

Succeeding in Alaska’s market also requires being nimble and listening closely to clients, Williams says. Every client is different and will require a unique solution. “A real marketer will look for opportunities to serve the client and help their business,” he says. “You become an adviser for them.”

That advisory role can be especially critical when clients are starting a new business and need help building brand visibility or when they are overwhelmed with trying to handle the marketing themselves. “That’s where we plug in and help take the load off the owner,” Williams says. “We give them room to breathe so they can run the business.”

Many small businesses lack PR and marketing expertise in house so it makes good sense for them to outsource. But it may be more feasible for larger organizations to outsource. Renfrew explains: “For everyone to have a team in house to handle everything from production to design to strategy just isn’t realistic. I think it’s knowing when you have the expertise and resources to do it yourself and knowing when to leverage resources to get help. There are a lot of good PR and marketing agencies in the state, and if a business has a good working relationship with them, it can be very effective. They can become a strategic partner.”

“That’s where we plug in and help take the load off the owner. We give them room to breathe so they can run the business.”

—Tyler Williams, Owner, Mammoth Marketing

Elements of a Successful Campaign

Skillful marketing and PR practitioners can help clients create effective campaigns. But the components of a successful campaign will differ depending on the client and objectives. For Renfrew, a successful PR campaign starts with conducting research to identify the client’s goals and the strategies that can help them achieve them. Setting measurable objectives is also essential because PR campaigns need to demonstrate ROI just as other core business functions do.

Planning and implementation are also key campaign components. Then at the end it’s about evaluation. How did clients do? Were they able to achieve their goal? However, if clients don’t achieve their goal, it doesn’t mean they weren’t successful. “You learn what works and what you can do for the next campaign,” Renfrew says. “The objective is to aspire to hit your goals and targets, but the more astute organizations know that may not always be realistic and will support their PR team as much as they can in doing that.”

For Thompson, the first step in any PR campaign is defining goals with the client. It involves determining what success will look like to the client at the end of the day—the client’s specific end game. “We often hear clients tell us that their goal is to create awareness, but we always dig in to define it further,” she says. “We’re really very succinct when it comes to metrics and research to show that something is successful.”

Defining success varies from campaign to campaign, Dobson says. But she considers success to be whatever element can be measured and is closest to the client receiving money. This could be anything from someone signing up for a cost quote to someone making a purchase. “You have to figure out how you’re going to track that success. If you’re a dental office, your measure of success will be different than a retail store,” she says.

Fagnani also focuses on setting measurable goals, ensuring a holistically positive user experience along with having rock-solid, interactive creative content. The message must be memorable enough to break through the clutter. And it has to respond to the age-old questions of “What’s in it for me?” or “What have you done for me lately?” “It’s not just about designing a great ad,” Fagnani says. “It’s about creative that moves a market, changes perception, or increases awareness.”

Image courtesy of Mammoth Marketing

“I think we’re consistently on a few years’ delay [from the Lower 48], but we’re definitely moving in the same direction. I’ve always believed that this is an advantage if anything. In a sense, we have ‘future vision’ because we know what’s going on in the Lower 48, and we can scale to that.”

—Alexa Dobson, President, American Marketing Association Alaska Chapter

A good example of a successful marketing campaign involved MSI’s recent promotion of Alaska Airlines’ Freight for Less benefit. The perk allows the airline’s Club 49 members to ship up to one hundred pounds of freight inside Alaska for $10 within 24 hours of travel or for $40 for members who are not traveling. The statewide, multimedia campaign featured custom-designed broadcast/cable TV, digital, print, and airport advertising as well as an extensive online social media promotion. “Much to the delight of our client, Alaskans responded overwhelmingly to the new freight benefit and did so in record time,” Fagnani says.

At Mammoth Marketing, effective campaigns also include an amalgamation of tactics. For instance, Williams leveraged “cross-platform integration” to help a client promote various events throughout the year. “When you’re firing multiple pillars of media out at once, it builds a really strong impression with the users,” he says.

Another success story is Thompson & Co.’s Twitter campaign for the Alaska Tourism Marketing Program. The campaign, which began in July of 2017, now reaches more than 800,000 people on Twitter. It generates more than 5 million impressions each hour and has helped drive a 5 percent increase in Alaska Tourism’s Twitter followers. “The client is extremely happy,” Thompson says.

PR and Marketing Advice

Alaska’s veteran marketing and PR practitioners have an abundance of advice to help lesser-experienced counterparts succeed in the industry. For instance, Fagnani says marketing professionals should familiarize themselves with Alaska’s resource industries. They should also obtain training and certifications in digital platforms like Google AdWords. “You don’t just need to know how to use them, but why and how to get better results,” she says.

Williams’ words of advice focus on constantly reading, learning, and evolving. He says: “Seek out new sources. Talk to people. Everything is in a big state of flux, so it’s important to stay on top of it. And don’t get attached to strategies. Constantly modify your tactics to stay relevant. What you’re doing now may not work six months from now.”

Likewise, Renfrew encourages PR and marketing professionals to find a mentor to guide them and to never stop learning. “Things are changing so quickly in the industry, and you need to stay up on the latest trends,” she says.

Thompson also urges PR professionals to stay on top of new trends. They should also be constant consumers of news and capitalize on newer resources like Snapchat and Facebook Live. She advises: “Understand the tactics that are available to you. This will help you reach your target audience.”

Dobson is a strong advocate of community development. She feels marketing professionals should have a favorable balance of giving more to the community than they take from it. “Network with your peers,” she says, “and give back in any way you can because the community is what you make of it.”

Tracy Barbour has been an Alaska Business contributor since 1999. As a former Alaskan, she is uniquely positioned to offer in-depth insight and enjoys writing about a variety of topics.

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In their company kitchens, the Corporate 100 blend wholesome ingredients with exquisite utensils to create the scrumptious ambrosia that keeps employees gratified and contented. Meet the top Alaska employers ranked by number of Alaskans on their payroll, and learn the recipe for success. This issue also includes a focus on economic development initiatives in Anchorage and Kodiak.

Alaska Reports Strong Quarter Fueled by Business Travel Surge

Meghna Maharishi , Skift

April 18th, 2024 at 2:27 PM EDT

Despite taking a hit from the Max 9 grounding, Alaska Airlines saw an uptick in travel demand, fueled by a full return of business travel.

Meghna Maharishi

Even as the grounding of the Max 9 prompted Alaska Airlines to cancel thousands of flights in January, the carrier came out relatively unscathed in the first quarter. And that’s partly because its business travel fully recovered to 2019 levels. 

Alaska reported a net loss, but without the grounding, it would have eked out a small profit of $5 million. 

The first three months of the year are typically difficult for airlines. Leisure travel is down, and post-pandemic, business travel has been at a standstill . But that now seems to be changing. 

Andrew Harrison, Alaska’s chief commercial officer, said business revenues grew 22% in the first quarter. Tech companies fueled the gains. 

Harrison said revenues from tech companies were up 50% compared to the same time last year, the biggest improvement for the carrier. Revenue from professional services industries was up 20%.

“These results were achieved despite the grounding and book away we experienced,” Harrison said during a call with analysts on Thursday. “Today, managed corporate revenue has fully recovered to 2019 levels, while tech is approximately 85% recovered.”

Harrison said Alaska anticipates the surge in business travel will stay constant into the second-quarter. 

A High Appetite for Premium

Similar to bigger carriers like American , Delta and United , Alaska has also been riding on high demand for premium seats. 

Harrison said first- and premium-class revenues were up 4% and 11%, respectively. He added that without the grounding, the premium revenues would have been higher.

“As we continue to refine our premium strategy across our products and markets, we have further upside to come and remain committed to building on our premium guest experience, offering the products our guests and loyalty members want,” Harrison said. 

As the summer travel season approaches, the carrier is also seeing “encouraging bookings” in the second quarter, with Harrison saying Alaska expects to see some of its most profitable growth during that time. 

Alaska Rethinks Fleet Plans Amid Boeing Delivery Delays

Despite a generally rosy outlook, Alaska executives said Boeing delivery delays are impacting the carrier’s capacity plans. 

Harrison said Alaska was slightly increasing the utilization rates of its older mainline aircraft, pushing back the retirement of some of those planes. The carrier also increased capacity on its regional subsidiary Horizon Air and SkyWest to make up for the delays. 

Alaska, which primarily maintains a fleet of 737 aircraft, received $162 million in cash compensation for the Max 9 grounding, which lasted for nearly one month. Alaska CEO Ben Minicucci previously said the grounding cost Alaska $150 million . 

Minicucci said during the call the carrier has increased its in-person oversight on the 737 production line and is in regular talks with Boeing leadership about quality and delivering planes on schedule. 

“Alaska needs Boeing,” Minicucci said. “Our industry needs Boeing, and our country needs Boeing to be a leader in airplane manufacturing.”

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Tags: alaska airlines , as 1282 , Boeing , boeing 737 max 9 , business travel , summer travel

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Alaska Native Heritage Center ready to rouse ‘sleeping giant’ of cultural tourism

Research shows cultural tourism is on the rise in Indian Country, because travelers crave authenticity and want deeper experiences with Indigenous peoples — a trend that could help Alaska tribes develop their own tourism businesses.

The Alaska Native Heritage Center is one of five Indigenous groups that will receive federal money to expand cultural tourism. The Heritage Center’s director, Emily Edenshaw, predicts it will benefit the state’s entire travel industry.

“It’s a sleeping giant,” Edenshaw said. “It’s untapped.”

Edenshaw says it’s an opportunity to re-think tourism in Alaska, which she believes has come to rely too much on wildlife and scenery to draw tourists.

“Come and see the mountains and the brown bears — and come explore and discover and go on the glaciers and look at the berries,” says Edenshaw, reciting the typical travel industry pitch that she says needs to be updated. “What about the Indigenous experience? Our people have been here for 10,000 years, in some cases even longer than that.”

The Heritage Center will receive about $50,000 to boost tourism. The money comes from the Office of Indian Economic Development, under the Bureau of Indian Affairs, which has partnered with the American Indian Alaska Native Travel Association to oversee the grants.

The association’s director, Sherry Rupert, says it’s a good time to invest in Indigenous tourism.

“Visitation to our communities is increasing. That’s why we’re so interested in supporting efforts up in Alaska,” Rupert said. “Alaska has the largest number of federally recognized tribes than in any other state. There is so much potential there for these small communities.”

Rupert says cultural tourism not only creates jobs and economic opportunity, but also helps tribes hold on to their heritage.

“I think it really sparks a light and really sparks that pride in who they are, so it helps us to preserve our cultural identity.”

Edenshaw says the AIANTA grant will be used to create a new position, a cultural tourism navigator, who will work with other communities to develop their own visitor experiences.

The grant will also be leveraged with other public and private funds — and will augment ongoing efforts at the Heritage Center to study on the impacts of cultural tourism.

“We need to get the data. We need to know how many jobs it creates. We need to know the economic impact through a cultural tourism lens,” said Edenshaw. “And the truth is, this has never happened in Alaska.”

As the Heritage Center approaches its 25th anniversary, Edenshaw says tourism is not just about how Alaska Native cultures lived in the past. She says it’s also about their future.

Edenshaw hopes that as Indigenous tourism grows, it will help to bridge cultural divides within the state by giving Alaskans an appreciation for Native cultures, as well as generate empathy and understanding for some of the struggles and historical trauma Native peoples have faced.

Other organizations to receive AIANTA funding for cultural tourism are: the St. Regis Mohawk Tribe in New York, the Pine Ridge Area Chamber of Commerce in South Dakota, the Shonto Economic Development Corporation in Arizona and the Native Hawaiian Hospitality Association in Hawaii.

Rhonda McBride, KNBA - Anchorage

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Alaska Air forecasts strong profit on rebound in business travel

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Reporting by Rajesh Kumar Singh in Chicago and Shivansh Tiwary in Bengaluru; Editing by Savio D'Souza, Devika Syamnath and Elaine Hardcastle

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Investors pull money from cash to pay tax bills, sell US stocks - BofA

Cash equivalent funds saw a $160 billion tax-related outflow in the week to Wednesday, according to a Bank of America's weekly report that cites fund flows and asset allocation from data provider EPFR, while U.S. stocks suffered their second week of outflows.