Rodeo Consult Final Report RA VERSION 12 7 14

FEASIBILITY STUDY FOR RODEO AUSTIN
Capstone MBA 5447
COHORT 8 CONSULTANTS:
LB Brady, Todd Brouillette, Katie Chandler & Ava Shabazz
December 10, 2014

Contents
Section V: Market Research
Section VI: Service and Operations
Section VII: Marketing and Sales
Section VIII: Competition
Section IX: Management and Staff
Section X: Financial Plan
Section XI: Risk Factors and Mitigation
Section XII: Recommendations and Next Steps
References
Appendix
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Section I: Executive Summary
Section II: Company Background/Current Position
Section III: Economic Impact
Section IV: Market Analysis P. 7
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The following report outlines methods in which Rodeo Austin can expand its customer segments
and ultimately increase revenue by offering convenient transportation to and from the rodeo
fairgrounds. This report includes information related to customer interest surveys, transportation
logistics, funding of transportation services, marketing proposals, and revenue impact.
Introduction

Rodeo Austin has grown to become one of North America’s premier rodeo events, and one of
the largest non-profit collegiate scholarship providers in Texas. Each year Rodeo Austin attracts
about 300,000 attendees, and is only 9 miles from downtown Austin. In an attempt to expand its
customer market, improve safety, and increase revenue Rodeo Austin has partnered with the
MBA consulting team from Concordia University Texas to prepare a feasability study, This study
evaluates the market potential to attract additional attendees to the rodeo by offering shuttle
buses targeted at specific customer segments. Rodeo Austin is considering offering a round-trip
service that runs between the fairgrounds and downtown Austin, with potential riders to include
downtown Austin residents, South by Southwest (SXSW) attendees, and individuals who wish
to drive downtown and then ride a shuttle to the rodeo. Seventy-two percent of individuals who
responded to a survey stated they were interested in using the shuttle service. The research
determined that two well-marketed buses operating at 100% capacity would bring in 20,160
more attendees, and would net an additional $1,231,250 profit in Year 1 after paying
approximately $79,150 in expenses related to the shuttle service and marketing (Appendix C).
Ridership needed to break even is considerably less. Based on this and supported by the
details contained in this report, it is recommended that Rodeo Austin move forward with
providing and marketing a shuttle service that is free to riders. It is expected that the return on
investment (ROI) will significantly offset costs as early as Year 1 and revenue will increase as
riders and sponsors are added in subsequent years.
Section I: Executive Summary

Rodeo Austin (RA) is a non-profit organization based in Austin, Texas. Rodeo Austin was
founded in 1938, starting a community tradition that continues today while furthering the rodeo’s
mission of ”promoting youth education and preserving Western heritage.” Rodeo Austin has
grown to become one of North America’s premier rodeo events, and one of the largest non-
profit collegiate scholarship providers in Central Texas. The 2014 contributions to Texas youth
totaled more than $2.5 million, with around $6 million in college scholarships granted since the
organization started a scholarship program in 1981 (Rodeo Austin 2013 Demographic Report,
2013, p. 1).
Rodeo Austin is governed by a 20-member Executive Committee and has a Board of Directors
with 80 members. More than 1,500 volunteers and a 16-member staff help the rodeo run each
year, with funding provided by sponsors, donors, tickets and vendor sales. The rodeo is held
each March along with a livestock show, fair and on-site concerts. (Rodeo Austin 2014 Annual
Report, 2014, p. 2). The concerts are the number one draw for Rodeo Austin, with 23 percent of
attendees saying the music is the main reason they come out. In 2014, there were 134 live
music performances at Rodeo Austin over 16 days. Family entertainment and the livestock
show are the second and third reasons, respectively, that people cite for coming out to the
Rodeo. The ProRodeo event itself ranks fourth. (Rodeo Austin 2014 Annual Report, 2014, p. 6).
These entertainment offerings have helped the rodeo to grow substantially over the years, but
there remains a customer segment the rodeo has not yet fully leveraged, SXSW convention
attendees.
Section II: Company Background/
Current Position

Section III: Economic Impact
Rodeo Austin's total vale to Austin metroloitan area economy is estimated at $68.8 million
annually, including job creation and ripple effects on a number of market sectors. An economic
impact study for Rodeo Austin was completed in August 2011 by TXP, Inc., which substantiated
this amount. Rodeo prices have increased slightly since that time, but attendance remained flat
through 2013, with estimated attendance of 300,000. (Rodeo Austin 2013 Demographic Report,
2013, p. 28)
According to the TXP study, Rodeo Austin both directly attracts vistors and provides secondary
entertainment options for Central Texas tourists. Currently about 75% of out-of-town Rodeo
Austin attendees come to Austin specifically for the rodeo, with only about 25% coming for other
reasons then deciding to visit the rodeo. Non-local spending was about $38 million in 2011,
generating approximately $14.2 million in tax revenue for the city of Austin and $1.8 million in
revenue and fees for Travis County. This impact does not include spending by Austin-area
residents, because it is assumed that the money from these individuals would have otherwise
been spent elsewhere in the local economy. (Rodeo Austin 2013 Demographic Report, 2013, p.
29 & 34). The value added to various sectors of the economy, including lodging, retail,
healthcare, food services and more totaled an estimated $42.2 million in 2011, and supported
835 full-time and part-time jobs.

Section IV: Market Analysis
Rodeo Austin is positioned to grow by more than 20,000 attendees annually by attracting
attendees from newly targeted customer segments to the rodeo, particularly during off-peak
times. SXSW presents an attractive opportunity. Rodeo Austin is scheduled over the same
March dates as SXSW, which draws people to downtown Austin from all over the world.
Because many SXSW attendees travel from out of state and out of the country, transportation to
the rodeo can be difficult for them. Many convention attendees have access to shuttles to get
from their hotels to the Austin Convention Center, but do not have access to personal vehicles.
Taxis can also be in short supply during large events, and interviews with attendees suggest
many have concerns about ensuring a ride is there to get them back to their original location.
While other car services, such as ride-share companies Uber and Lyft, are available in Austin,
they are controversial due to regulations that technically prohibit or restrict their operation.
Additionally, surge pricing that takes effect during high-demand periods can substantially
increase the cost of ride-share options (Horowitz, A., 2014).
To capture a share of the SXSW market during the 7 days that tne events overlap, the rodeo is
considering is a free shuttle service that allows SXSW attendees to travel to and from the rodeo.
The shuttles can also extend beyond the dates of SXSW to provide transportation to downtown
resident during the rodeo's final week. On average, a Rodeo Austin attendee spends $144 at
the rodeo, including their ticket (Rodeo Austin 2013 Demographic Report, 2013, p. 9). The
rodeo nets about $86 to $108 of this amount, according to Johnny Philipello, COO. A more
conservative figure used within this report estimates the amount at $65 per person. The more
conservative estimate is used for purposes of calculating projected return on investment, so it is
likely that expected ROI is slightly understated in this report.
By offering convenient transportation to and from downtown, the available market for the rodeo
increases by more than 70,000 SXSW attendees and 10,000 downtown residents, providing a
substantial opportunity to increase rodeo revenue (DANA, 2013).

The success of an added transportation service for the purpose of generating additional rodeo
revenue depends largely on what the service and the rodeo itself have to offer customers.
Following is an overview of the strengths, weaknesses, opportunities and threats related to the
rodeo and shuttle service that were considered in this report.
Strengths
Rodeo Austin is a financially stable organization with an excellent reputation both locally in
Austin and throughout the state of Texas. Rodeo Austin is a family oriented venue that
entertains all ages and demographic groups through various events such as professional rodeo
competitions, carnival rides, BBQ cook-offs, shopping, concerts and more. The rodeo has
enjoyed consistent growth since its inception, and existing space and facilities are capable of
supporting additional growth.
Weaknesses
While Rodeo Austin hosts a large number of attendees and benefits from having ample space
to accommodate them, its location is somewhat removed from downtown and has limited
options for attendee transportation. The event is held at the Travis County Expo Center, which
is located in northeast Austin 9 miles from downtown and is not on a public transportation route.
Regarding this proposal to add a shuttle service, the overhead of the shuttles may be perceived
as a weakness because the upfront investment required is significant, and there is no guarantee
of ridership or returns. Related to this is the challenge of increasing awareness of the rodeo with
out-of-state visitors. Additionally, there are larger rodeos in Texas, including Houston and San
Antonio, so customers travelling to Texas for the purpose of attending a rodeo may choose to
attend one of these instead of Rodeo Austin.

Opportunities
The SXSW convention is held each year on the same dates as the rodeo, though the rodeo
dates extend beyond those of SXSW. SXSW attendees consist mainly of professionals age 44
and under with household incomes of over $100,000 a year (SXSW Demographics, 2014). With
more than 70,000 SXSW attendees converging on downtown Austin each year during the rodeo
dates, attracting this group to Rodeo Austin represents a significant opportunity for increased
revenue and attendance. Music conference attendees at SXSW total approximately 28,000
people from 82 countries. While a spectrum of musical genres have appeared at Rodeo Austin,
the event contracts mainly country music artists, which is not a common genre for SXSW. If
Rodeo Austin expands its musical offerings to increase the number of non-country acts, it can
potentially expand its appeal to a broader group. SXSW also includes film, interactive and
education conferences, which make up the remainder of the approximately 70,000 attendees
(SXSW Demographics, 2014). Non-conference visitors also come downtown during SXSW to
participate in events and concerts associated with SXSW.
Rodeo Austin can help bridge a marketing divide between itself and SXSW by partnering with
sponsors and organizations that are aligned with SXSW and other complementary events.
Although the idea of Rodeo Austin partnering with SXSW directly in a significant way does not
seem viable at this time, Rodeo Austin can take advantage of the opportunity to be a vendor at
SXSW in an effort to open the door for a partnership down the road. As a vendor, Rodeo Austin
will also increase its exposure to SXSW atttendees and promote directly to this group.
Because SXSW is centered downtown, Rodeo Austin can market to multiple target consumer
groups, SXSW attendees and downtown residents, with synergistic rather than separate
marketing initiatives. Any exposure created downtown will inherently reach both target groups.

Threats
In any competitive market there are generally external threats that present obstacles to the
success of a business initiative. While there is opportunity to leverage SXSW attendance to
benefit Rodeo Austin, the convention also creates some of these external threats. Rodeo Austin
is held simultaneously with SXSW. Since the events are held at the same time, some of the
potential attendees that Rodeo Austin is trying to attract will attend only SXSW and potential
rodeo attendees may visit SXSW instead. More importantly, many attendees travel to Austin for
SXSW from out of the city, which results in increased hotel costs, sold-out hotels and shortages
of transportation options. Though a shuttle service is intended to help overcome the
transportation obstacle, if ridership is minimal the revenues earned could be lower than
anticipated. Travel expenses and limited hotel space may negatively impact consumer demand
for the rodeo amongst out-of-town vistors.

Section V: Market Research
Austin visitors have many choices for entertainment. This is particularly true during SXSW. To
better quantify the impact of the threats outlined above and determine if there is consumer
interest in a shuttle service research was conducted to survey the Rodeo Austin customer base.
Survey Process
The first step in the process of developing a survey was defining customer segments.
Specifically, the consultant team looked for individuals that fell within the proposed target
customer segments to determine if there was interest in round-trip shuttle transportation
between downtown Austin to the rodeo fairgrounds and back. The customer base was split into
two groups: (a) Segment I – SXSW Attendees; and (b) Segment II – Downtown Austin
Residents. The SXSW Attendees were gathered from the team’s individual networks and were
surveyed via phone interviews, in-person interviews, and via survey monkey. The Downtown
Austin Residents were compiled from a list of 736 email addresses, which were narrowed down
to 427 email addresses of individuals residing in the following zip codes located in and adjacent
to downtown Austin: 78701, 78702, 78703, 78704, & 78705. Additionally, interviews were
conducted with industry experts including representatives with experience in downtown Austin
events, SXSW, transportation services, and corporate alliances.
Survey Results
The consultant group interviewed 68 individuals in Segment I – SXSW Attendees, which
resulted in a 65% interest (35% non-interest) in shuttle services. In total for Segment II –
Downtown Austin Residents, there were 61 survey responses, which resulted in 80% interest
(20% non-interest) in shuttle services among respondents. After combining customer segments
there were a total of 129 responses, which equated to a 72% interest (28% non-interest) of
respondents interested in shuttle services. The positive survey responses led to an overall
consensus from the consultant team that a shuttle service should be utilized if the logistics could
be implemented efficiently. Next we looked at the revenue sources of Rodeo Austin to
determine the associated costs with operating a shuttle service.

Section VI: Service and Operations
While providing buses to run from downtown to the rodeo is a seemingly striaghtforward task,
significant complications exist. These include SXSW street closures, estimating demand, and
determing optimal run times. A number of routes and run times were considered before
reaching a recommended schedule. The proposed shuttle service will run throughout the SXSW
event dates, and potentially beyond, every 30 minutes to and from the downtown pick-up/drop-
off location and Rodeo Austin fairgrounds:
Proposed Downtown
Pick-up/Drop-off Location:
422 Guadalupe Street, Austin, TX 78701
Rodeo Austin Fairgrounds:
9100 Decker Lake Road, Austin, TX 78724
The distance between the two addresses ranges from 8.95 miles to 11.65 miles depending on
the route taken. MapQuest suggests 3 routes, which take 17 to 20 minutes if traveling outside of
rush-hour traffic.
Ridership will be first come first served. Individuals who wish to ride the shuttle will not need to
register in advance, and there will be no cost to the individual to ride the shuttle. This is
proposed due to a high priority placed by attendees on convenience and flexibility,
communicated in live interviews. Because the main revenue drivers impacted by the shuttle are
ticket sales and concessions, it is proposed that a hassle-free service with no ticket purchase
process for the shuttle will enhance utilization and increase ROI beyond what might be gained
by charging consumers to use the shuttle.
The shuttle service will begin at 2:00 p.m. and run until 12:00 or 1:00 a.m., depending on the
day. Two shuttles will run at all times, with a third potentially added during evening hours to
accommodate peak times and guests returning at the end of the night. The shuttle schedule can
be found in Appendix A.

Section VII: Marketing and Sales
Plan
Rodeo Austin has an extensive marketing strategy in place, which includes billboards, online
advertising, local press releases, partnerships with local sponsors, and more. Marketing for the
shuttle service will be rolled in with existing marketing efforts where it reaches the targeted customer
segments. These include:
•70,000 Austin visitors attending the SXSW convention (DANA, 2013)
•10,000 downtown Austin residents (DANA, 2013)
While all Austin-area residents who were surveyed about the rodeo were familiar with Rodeo Austin,
most out-of-town respondents were not. Despite lack of awareness, 65% of respondents in this
customer segment said they would like to attend the rodeo while in town for SXSW and would use
a shuttle service if it were convenient. Because most targeted convention attendees are travelling
from out of town, marketing tactics should be designed to raise awareness of the rodeo and
emphasize the convenience of the service.
Because the shuttle service has not been attempted for this event and there are no close models
to draw estimates from, the expected ridership is unknown. Year 1 will serve as a pilot to help better
predict future needs and opportunities. Even with basic assumptions from survey responses and
event demographics, however, the Rodeo Austin shuttle service is expected to achieve its objective
of increased attendance and revenue in Year 1.
Based on survey responses, more than 70% of people say they would utilize the shuttle, which
creates an interested market of more than 52,000, not including individuals from non-targeted
customer segments. At full capacity, the buses will carry around 20,000 attendees.

The break-even point on the cost of the buses and associated marketing does not require anything
close to this level of participation, and ROI will be positive with just over 1,200 riders if two buses
are used each day over 15 days, based on a conservative per-attendee revenue assumption of $65.
If two buses are used each day over 7 days, just over 750 riders are needed to break even (see
Appendix E).
Plans to market the shuttle should be aligned with overall Rodeo Austin marketing. Should Rodeo
Austin pursue specific marketing related to the shuttle, the marketing expenses would include costs
related to creative design fees, as well as tertiary printing fees. The billboards, press releases,
convention space and most other marketing are part of the Rodeo Austin strategy with or without
the shuttle service. If Rodeo Austin wishes to purchase additional marketing channels specific to the
shuttle service, recommended channels and corresponding associated costs are listed below. The
costs listed were included in break-even, net revenue and ROI estimates for this report.
Specific planned marketing tactics include:

An additional consideration around the shuttle and marketing costs is that these will be largely offset
in Year 5 of the service, and moving forward. In Year 5, data from shuttle utilization will be used to
attract a sponsor or multiple sponsors to offset the cost of the service; so all ridership converts to
rodeo revenue. These are costs that may be partially or fully offset earlier than Year 5 if sponsors
are secured prior to that time. However, for purposes of this report, Year 5 is used as a conservative
estimate.

Section VIII: Competition
The rodeo contestants who compete for prize money during Rodeo Austin’s event also compete
in nine other rodeos throughout North America (Rodeo Austin 2014 Annual Report, p.18).
Calgary Stampede, Cheyenne Frontier Days, Cloverdale Rodeo, National Western Stock Show,
Fort Worth Stock Show & Rodeo, Rodeo Houston, Pendleton Round-Up, Reno Rodeo, and the
San Antonio Stock Show & Rodeo comprise the other rodeos that are in the same circuit as
Rodeo Austin. The consultant group benchmarked eight of these rodeos where comparable
information was available against Rodeo Austin to compare an average revenue amount per
day, total number of paid attendees, revenue per paid attendee, presence of a shuttle service
and whether a VIP service was offered for foreign visitors. It is important to note that all data
was self-reported by each rodeo on their websites or through officials from each organization,
as there is no independent data service collecting and comparing rodeo statistics other than
those related to contestants’ performances.
All of the rodeos are non-profit organizations, so they are similarly structured and aligned to
charitable causes. Calgary Stampede and Cloverdale Rodeo are both located in Canada, which
made it more difficult to gather comparable data. This is due to the lack of posted information
and the absence of Internal Revenue Service tax returns, which are required for all of the United
States based organizations. When possible, data was verified for all rodeos through publicly
available tax returns. Rodeo Austin falls in the middle of the nine-rodeo group in terms of the
length of the rodeo, total revenues and total paid attendees. The San Antonio and Houston
rodeos are significantly larger and both offer shuttle services and VIP services for foreign
visitors.
Total Revenues
Calgary Stampede’s rodeo brings in the largest total amount of annual revenues with over $75
million over their 10-day event. Rodeo Houston’s rodeo is the second largest bringing in $64
million and is the largest within the United States of the benchmarked group.

By comparison, Rodeo Austin brought in $9 million. Pendleton Round-Up had the lowest total
revenues of those with data available, at just under $1 million.
Average Revenue Per Day
The nine rodeos range from 4-day to 23-day events. The highest revenue per day is earned by
Calgary Stampede at over $7.5 million per day. Pendleton Round-Up brought in the lowest
revenue per day at $249,213. Rodeo Austin brought in $574,790 per day.
Rodeo Houston has the largest total paid attendance at 2,485,721. Pendleton Round-up has the
lowest attendance at 59,601. Rodeo Austin ranked number 7 out of the 8 rodeos with 184,862
in paid attendees.
Revenue Per Paid Attendee
Cheyenne Frontier Days had the highest amount of $142.01 of revenue per paid attendee. The
San Antonio Stock Show & Rodeo had the lowest amount of $11.64 per paid attendee. Rodeo
Austin was the third highest with $49.75 per paid attendee. This is slightly different from other
revenue-per-attendee estimates used in this report due to the use of multiple sources and
assumptions. The figure is not modified to $65 per attendee here because of the need to
provide context relative to comparator rodeos.
Rodeo Austin ranks sixth in number of total paid attendees and ranks third in the amount of
revenue per paid attendee. All of the rodeos are located in very different geographic locations
with varying types and sizes of venues available. Looking at attendance or total revenues alone
does not indicate the profitability of each rodeo. Rodeo Austin is earning more per paid attendee
than five of the other eight rodeos. As Rodeo Austin works to increase attendance it will be
important to maintain or increase the revenue per paid attendee. The comparison chart in
Appendix B shows a summary of the data gathered for each of the nine rodeos.

Rodeo Austin has a relatively small paid staff and therefore relies heavily on volunteers that are
assigned to committees to carry out operations. Currently, there are 28 committees tasked with
various goals and targets ranging from rodeo events, fundraising, strategic planning and more.
It is recommended that a Transportation Committee be established. The purpose of the
Transportation Committee is to plan, organize, and solicit funding to provide the shuttle service
to and from downtown Austin to the Rodeo Austin fairgrounds. The Transportation Committee
should consist of as many as 50 to 60 volunteers, if available, in order to cover various shifts.
There should be three to five volunteer chairs that are in charge of the committee. The total
volunteers needed will depend on the length of shifts and how many times one volunteer is put
on a shift. A suggestion is to place two to three volunteers at the drop-off location and two to
three at the pick-up location for four hours each. One volunteer at each location would be the
lead coordinator, and would also have access to one of the committee chairs at all times should
an urgent need arise. This will require three shifts per day of four to six people per shift, for a
total of 12 to 18 volunteers per day plus one to two committee chairs available throughout.
The chairpersons of the Transportation Committee should work directly with Rodeo Austin
employees such as the Chief Operating Officer for logistic guidance and approvals, the Senior
Manager of Scholarships & Finance to determine budget, and the Managers for Entertainment
& Events and Marketing & Sponsorships.
During the nine SXSW days that the buses are running, March 14 through 21, the days should
be split into three four-hour shifts. It is recommended to have a shift from 1 p.m. to 5 p.m., 5
p.m. to 9 p.m., and 9 p.m. to 1 a.m. Additional dates may be added if it is determined that buses
should run after SXSW has ended. While the buses are running, there should be four to six
volunteers from the committee working for each shift. This will allow Rodeo Austin to have
volunteers at both the drop-off and the pick-up locations.
Section IX: Management and Staff

Section X: Financial Plan
Income Mix
Rodeo Austin earns 36% of its revenue from rodeo ticket sales, 6% from exhibits and acts, 6%
from fairground admissions, and 7% from the carnival. Each of these will be positively impacted
by increased attendance expected from the addition of shuttle service. While parking generates
4% of revenue and a complimentary shuttle service could have a negative impact on this,
changes to net parking revenue are expected to be minimal. This is because the customer
segments targeted for the shuttle are primarily new rodeo customers who are unlikely to attend
without the addition of the shuttle service, so are not a significant variable affecting revenue
from rodeo parking. The remaining 41% is earned from sources that would not be affected by
the addition of a shuttle service. (Rodeo Austin 2014 Annual Report, 2014, p. 36).
Missed Income Opportunities
According to the Rodeo Austin executive staff, there were approximately 26,000 unfilled seats
at rodeo performances based on the last four years’ annual average. Rodeo Austin’s 2013
Demographic Report stated that the average amount spent per rodeo attendee is $144, of
which Rodeo Austin directly earns about $65 to $108 depending on the estimate used. The
shuttle service is expected to reduce the number of unfilled event seats to help realize a portion
of this missed income.
Shuttle Costs
To run the proposed shuttle route with two buses operating for 15 hours collectively at a cost of
$125 would cost $56,250 total in bus fees over the full 15-day event. The estimated 15 hours
includes actual run time plus a total 3 hour allowance of time for buses to arrive, prepare and
shut down each day. Additionally, there are marketing costs associated to advertise and
promote the shuttle service. The cost of the buses can be increased or decreased depending on
the bus schedule as the transportation companies charge per bus per hour. The marketing

budget should be determined by the Finance Committee, though estimated costs of suggested
marketing tactics are included under the Marketing and Sales heading within this report.
Recognized New Income
A shuttle service with two 56-passenger buses running one round trip per hour each could bring
in 20,160 more attendees to the rodeo performances and/or the fairgrounds at full capacity of
ridership. Rodeo Austin would net an additional $1,231,250 profit after paying approximately
$79,150 in expenses (bus fees & marketing expenses). If the buses are at 75% of their 56-seat
capacity for each trip to the rodeo with each person generating average net revenue of $65,
then $720,194 in net income would be recognized after expenses. A formal bid response from
private shuttle services in Austin revealed a per hour rental rate of $125 to $165 for each bus,
depending on the vendor. Some of the attendees would probably not attend the rodeo
performance but they would pay to enter the fairgrounds and spend money on food, drinks,
rides and souvenirs. Rodeo Austin would need 1,218 people to use the shuttle service in order
to break even and cover the overhead of $79,150 in the highest-cost scenario for buses and
suggested marketing. If buses are used for only 7 days during SXSW and marketing costs are
minimized, the breakeven point for ridership is as low as 572 riders. For a detailed break-down
please see Appendix C, D and E.

Section XI: Risk Factors and
Mitigation
The major risk associated with shuttle service is the initial investment of $79,150 for the buses
and marketing with no confirmed return on investment. Cancellation of buses would not be
permitted for most planned days once the event starts, so unanticipated underutilization would
result in a sunk cost for Rodeo Austin. However, available information suggests that
underutilization resulting in a negative return is not likely. Consumer surveys state that 72% of
individuals in targeted segments are interested in taking the shuttle if implemented. Though this
is only a gauge of interest and ridership is expected to be significantly lower than 72% of SXSW
attendees and downtown residents, the necessary ridership to obtain a positive ROI requires
only 1.5% of the 80,000 people within the targeted customer segments. Some ridership from
non-targeted segments further reduces this percentage needed. As noted previously, on
average individuals spend $144 per person while at the rodeo. This report uses a conservative
figure of $65 per person recognized new income based on the buses being 75% full. Should the
buses be more than 75% full or net income per person exceeds the $65, additional revenue
would be recognized. As shown in Appendix D, even with buses at only 8% average capacity
over the course of the event, ROI would equal approximately $4,716.
No additional liability insurance costs for the shuttle service are required, as the liability
insurance is already in place for Rodeo Austin and the shuttle service company would cover any
costs related to injury or accidents associated with the transportation service, per the agreement
specified in the requests for proposal that were sent to transportation vendors.

Section XII: Recommendations and
Next Steps
The primary objective of this report was to determine whether the addition of a shuttle service
between downtown and Rodeo Austin was viable based on the available market, interest within
that market, and the potential for increased attendance and revenue. Based on analysis of
demographics and consumer interest, the research suggests that there is clear consumer
interest in the service and that the market is large enough to materially impact attendance and
revenue. It is recommended that Rodeo Austin move forward with introducing a shuttle service
between downtown and Rodeo Austin.
Year 1
Provide two buses running each day from 2 p.m. to 1 a.m. throughout all of SXSW. The
out of town market attending SXSW in Austin during the time of the rodeo presents a unique
opportunity to increase business through a customer segment that is not in town primarily for
the purpose of attending the rodeo, but does express significant interest. Because of this, out-
of-town vistors in Austin for SXSW who utilize the shuttle are expected to be almost entirely new
attendees generating new revenue.
Continue to run two buses each day after SXSW ends through the final day of the
rodeo. The additional customer segment of downtown-Austin residents may be a mix of
customers who would have attended the rodeo with or without a shuttle and customers who will
attend because of the shuttle. The combined new attendees and new revenue is expected to
exceed costs and generate positive ROI.
Provide the shuttle service free of charge to riders. In both customer segments,
convenience was heavily emphasized. Because a positive ROI is expected with even minimal
utilization, convenience should be enhanced by creating a no-hassle experience.
Staff shuttle stops with Rodeo Austin volunteers.

Modify existing marketing to include promotion of the shuttle. This includes adding
verbiage related to the shuttle to the Rodeo Austin website and to billboards, particularly those
in the airport and downtown areas. Also include press releases to media outlets, VIP packages
for out-of-town guests to purchase, flyers distributed to area hotels and the Vistitors Center, and
create magnetic signage for the buses.
Systematically compile ridership data broken down by time and day for the purpose of
modifying routes and schedules, and for generating data to provide to sponsors in subsequent
years. A means for collecting rider feedback through an online or app-based survey will also
produce beneficial ongoing information to improve the service.
Years 2 through 5
All of the recommendations for Year 1 also apply to Years 2 through 5, but feedback and
ridership data can be used at this point to help determine what marketing resources should be
added, changed or eliminated. Data can also be used to modify bus schedules and more
efficiently predict the number of buses needed at given times and days. The data should be
utilized to help secure sponsors to partially or fully offset the cost of the buses. A goal is to have
enough data available by Year 5 to have sponsorship fully offet the cost of shuttle service.
Sponsors participating in SXSW or with an interest in the SXSW attendee demographic present
a key opportunity because of the exposure to both rodeo attendees and SXSW attendees.

References
Austin Visitors Bureau & Convention Center – (J.Foster personal communication, September 9, 2014)
Calgary Stampede. (2014, July 3). Retrieved October 3, 2014, from http://www.calgarystampede.com/
Cheyenne Frontier Days. (2014, July 17). Retrieved October 3, 2014, from http://www.cfdrodeo.com/schedule/
Chandler, K. (2014, September 25). Retrieved October 8, 2014, from https://www.surveymonkey.com/s/75228T
Clark Travel (K. Scott. Personal communication, September 30, 2014)
Cloverdale Rodeo. (2014, May 15). Retrieved October 3, 2014, from http://www.cloverdalerodeo.com/
Downtown Austin Neighborhood Association (DANA) - (M. Alexander. Personal communication, October 2, 2014)
Fast Sign – (K.Tyler. Personal communication, November 11, 2014)
Fort Worth Stock Show & Rodeo. (2014, January 16). Retrieved October 3, 2014, from http://www.fortworth.com/
events/annual-events/fort-worth-stock-show-and-rodeo/
Horowitz, A. (2014, October 11). Uber Gets Failing Grade From Better Business Bureau. The Huffington Post.
Retrieved from: http://www.huffingtonpost.com/2014/10/11/uber-better-business-bureau-f-
rating_n_5969894.html
Lamar Advertising – (D. Lewis. Personal communication, November 11, 2014)
National Western Stock Show. (2014, January 10). Retrieved October 3, 2014, from http://
www.myfairsandfestivals.com/438641-national-western-stock-show-denver-colorado-january-2015.html
Pendleton Round-Up. (2014, September 16). Retrieved October 3, 2014, from http://www.rodeohouston.com/
R&R Limo (Baxter. Personal communication, October 2, 2014)
Rodeo Austin. (2014, March 14). Retrieved October 3, 2014, from http://www.rodeoaustin.com/
Rodeo Austin. (2014). Rodeo Austin 2014 Annual Report.
Rodeo Austin. (2013). Rodeo Austin 2013 Demographic Report.
Rodeo Austin. (2014, March 15). Rodeo Austin Ticket Report 2014. Retrieved October 9, 2014, from http://
www.rodeoaustin.com/buy-tickets
Rodeo Houston. (2014, March 3). Retrieved October 3, 2014, from http://www.rodeohouston.com/
San Antonio Stock Show & Rodeo. (2014, February 12). Retrieved October 3, 2014, from http://www.sarodeo.com/
SXSW Demographics. (2014, March 15). Retrieved September 9, 2014, from http://sxsw.com/press/2014-press-
releases

Concordia MBA Cohort 8
This report prepared for the Capstone presentation by
the team of Katie Chandler, LB Brady, Ava Shabazz,
and Todd Brouillette. This team would like to sincerely
thank Rodeo Austin for its help and support with this
project.

Rodeo Consult Final Report RA VERSION 12 7 14

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