The Austin Tourism Public Improvement District (ATPID) continues to drive significant economic value through strategic agility and high-impact programming. Despite the current headwinds caused by the closure of the Austin Convention Center and a softening national economy, our targeted initiatives are successfully insulating the local hospitality industry. By capturing immediate demand and building a robust future pipeline, Austin remains a resilient leader in the travel sector.

This resilience is best seen through the Hotel Incentive Program, which has already approved over $4.9 million in funds to help properties secure group business. This proactive investment is projected to generate nearly $39 million in room revenue. Similarly, our Expedia Neighborhood Campaign has proven vital for select-service, extended-stay properties and those properties with less than 5,000 sq ft of meeting space, turning a modest investment into $14.8 million in revenue. Given the proven success of the program and high-stakeholder buy-in, the Austin TPID Board has extended this campaign through September to ensure a strong summer season.

While we navigate the interim years before the new Austin Convention Center opens in 2029, the Visit Austin sales team has pivoted with precision. The team has secured 35 mini-wide campus-style bookings, contributing $33.7 million in room revenue to fill the gap left by larger conventions. The long-term outlook remains bright with 24 groups booked in the future facility, representing an estimated $187 million in future economic impact. By launching summer media campaigns early and hosting premier global media outlets such as Travel + Leisure and The Wall Street Journal, we are ensuring Austin’s narrative remains one of growth and unrivaled hospitality.

Thank you for your continued partnership. Let's keep this momentum going!

Tim Sullivan
Austin TPID Executive Director

The Hotel Incentive Program (HIP) continues to be a success, helping hotel teams secure group business. Hotel sales leaders have creatively utilized these incentive funds, often reserving off-site venues, local restaurants and ground transportation operators.

As of April 1, 217 applications have converted to definite business, which is estimated to generate more than 140,398 room nights and more than $39 million in revenue. With the addition of the tentative business pipeline, that equates to more than 473,000 possible room nights and more than $123 million in revenue.

Want to learn more or run through a demo of the application process? Reach out to Tim Sullivan, Executive Director of the Austin Tourism Public Improvement District at tsullivan@austintpid.org.

The six-month campaign for the Expedia Neighborhood Campaign wrapped at the end of March, driving demand city-wide for select-service, extended-stay properties and those properties with less than 5,000 sq ft of meeting space. This initiative is the first designated campaign by a Texas TPID specifically focused on driving demand for its Select Service and Extended Stay properties.

Since the campaign’s launch in mid-October, through the end of March with an advertising spend of just under $200,000, it has generated impressive results with $14.8 million in hotel revenue and 100,033 room nights. Across the 117 properties that secured bookings through the campaign, the median revenue per property was $87,912. The TPID Board approved the campaign to continue and will run through the close of the fiscal year through September to drive additional summer demand.

Sales Outlook & Strategic Updates

The Visit Austin team continues to prioritize major short-term and long-term bookings, as we capitalize on a strong pipeline.

For the Future ACC (2029–2039), the pipeline shows significant movement with 24 groups now definite. Additionally, we have increased to 23 verbal definite bookings, representing 182,805 Total Room Nights (TRNs) and an estimated $187 million in economic impact. The tentative ACC pipeline continues to see steady growth, with 84 groups currently tentative, accounting for 843,330 TRNs and a projected economic impact of $680 million.

During the closure of the Austin Convention Center, among other strategies, the team continues to focus on mini-wide (campus style) groups and we are seeing great results. The Visit Austin sales team has secured 35 mini-wide bookings totaling 147,000 TRNs, valued at $33.7M in room revenue. These bookings represent a diverse segmentation, reflecting 46% corporate, 26% association, and 17% sports.

The Austin Fly-In Campaign continues to boost site visits since its launch in October, providing a critical platform for key decision-makers to experience the destination firsthand; thus far, this promotion has resulted in 9 groups representing 12,000 TRNs and $3.2 M of room revenue.

Strategic Partnerships & Market Engagement

As we maintain strategic focus on the ATPID’s 20-30 2.0 plan, we continue to leverage our strategic industry partnerships to drive business to the destination. Recent highlights include:

- Corporate Event Marketers Association (CEMA) South by Southwest Study Tour: Curiosity paid off for 25 corporate event marketers during an exclusive, behind-the-scenes look at the operations of South by Southwest. Moving beyond theory and highlight reels, clients spent two days exploring the destination and gaining real lessons from the South by Southwest team.

- HelmsBriscoe D.C. Region Presentation: Presented to 20 key Mid-Atlantic intermediaries, providing vital destination updates and highlighting immediate opportunities for short-term in-house groups and future Austin Convention Center programs.

Industry Participation: Successfully represented the Austin TPID district through strategic participation and partner activations at several key industry events, including:

- MPI Ohio Chapter Navigate Conference (Newark, OH)
- Association Forum - Women’s Executive Forum (Chicago, IL)
- CEMA Regional Dinner (Boston, MA)
- MPI Texas Hill Country Chapter Education Weekend (Waco, TX)
- MPI Northern California Chapter Annual Conference (San Francisco, CA)
- DC CVB Reps Marriott GSO Tradeshow (Washington, DC)

Through strategic participation in these high-impact industry events, the Austin TPID successfully engaged with over 250 elite meeting professionals and event marketers from the corporate, medical, tech, and finance sectors. High-value interactions included senior leaders from global brands such as Salesforce, Visa, Workday, and Biogen, as well as influential third-party partners like HelmsBriscoe and ConferenceDirect. 
These activations, complemented by a specialized market briefing for Marriott Global Sales in D.C., directly bolstered Austin’s visibility and positioning among key decision-makers across the national association and corporate landscapes. The team is actively pursuing lead generation and post-event follow-up, with a focus on sharing leads and conversions in the near future.

The 2026 data tells a story of two halves: a record-breaking start fueled by a perfect storm of demand, contrasted by the expected impact of a shorter event window and the ongoing absence of the Austin Convention Center.

Recognizing the unique challenges of this transition year, the Austin Tourism Public Improvement District (ATPID) invested significant resources to support the event and bolster hotel performance. By providing strategic funding and support, the ATPID aimed to mitigate the impact of the convention center closure and ensure the city remained a premier destination during this condensed timeframe.

To find the truest "apples-to-apples" comparison, Visit Austin measured the hotel impact of the 2026 SXSW 7-day event against the first 7 days of the 2025 event, including the key arrival dates. This analysis reveals that the front half of SXSW drove massive hotel demand and rates. Total hotel demand citywide was actually up over last year, solely due to a strong 12% year-over-year increase during the first half of the event. Friday night alone approached sellout status with 95% occupancy, a peak that has not been reached since 2019. This surge was likely bolstered by the event coinciding with the first weekend of Spring Break for many academic calendars, which extended demand further into the week than in previous years. However, as the event concluded, the back half tapered off significantly in line with historical hotel trends.

The year-over-year decline in Average Daily Rate (ADR) can be attributed to a combination of national economic spending trends, general uncertainty regarding the first year without a convention center, and the prevalence of early-bird pricing and lower-rate hotel packages. When comparing the 2026 shorter event to the traditional 9-day timeframe of 2025, the impact of the condensed schedule becomes clear. This comparison showed a significant decline in the total number of hotel rooms sold, down almost 20% in the downtown sector. On a citywide scale, this total year-over-year decline equated to over $10.5 million in lost hotel revenue.

While these figures reflect citywide averages and downtown trends, we recognize that this was a year of major transition. Individual hotel performance may vary considerably based on submarket, specific group blocks, and proximity to venues. Ultimately, these figures represent the aggregate pulse of the city as we navigate a new landscape for Austin's premier events.

Since May, the SMARI Advertising Effectiveness study confirmed Visit Austin’s TPID advertising has influenced more than $1 Billion in incremental visitor spend. This represents a cumulative ROI of $373 in visitor spend for every dollar spent in advertising. We have seen a steady ROI in the Summer ($374:$1) and Fall/Winter ($368:$1) campaigns.

The Marketing team launched the summer campaign on April 1, with key media going live six weeks earlier than previous years thanks to TPID funding support. Elements of the media plan include Visit Austin’s first ever digital OOH campaign in key fly and drive markets, which allows us to retarget exposed users to drive up frequency with additional media like online video and digital display partners. The holistic media plan includes programmatic digital media, paid social, custom content with partners like Bon Appétit and Atlas Obscura and streaming video, allowing for relevant targeting throughout the trip planning journey to reach qualified audiences to book summer travel to Austin.

Thanks to TPID funding support, Visit Austin is able to host a record number of key journalists and influencers. Over the past three months, 30+ press trips have been supported by TPID funding. Outlets include Travel + Leisure, LOST iN, The Observer (U.K.), Wall Street Journal, Forbes (Mexico), Lonely Planet, Hotels Above Par and Vogue, just to name a few. Anticipated publish dates vary.

For comprehensive information on the Austin TPID, including the Service Plan, FAQs, and this newsletter archive, please visit austintpid.org.

We ask that you not forward this newsletter. Should someone within the Austin TPID need to be added to this distribution, please email us at atpid@visitaustin.org.