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Home My WebLink About01. July 18-2024-VLMDAC-BOARD PRESENTATIONVLMDAC BOARD MEETING JULY 18, 2024 Agenda I. Minutes Approval Action Requested of Board II. Monthly Financial Report (5 minutes), Jake Shipe, Town of Vail III. INFORMATION & DISCUSSION UPDATES ●2025 Operating Plan Discussion (60 minutes) Jake Shipe, Liz and Mia, Town of Vail ●DMO Update (20 minutes) Mia Vlaar, Town of Vail ●2024 Summer Media Update (15 minutes), Miles Partnership ●Organic Social Update (10 minutes) Diana Ramirez, Town of Vail ●Town of Vail and Special Events Updates ●Other Business ●Adjournment MINUTES APPROVAL Minutes Approval Action requested of board to approve the June 20 minutes. 2024 CAMPAIGN UPDATE2025 OPERATING PLAN AND BUDGET Objectives Align on Goals and Priorities Discuss, decide on and approve 2025 budget or budget options VLMD Operating Plan / Milestones 2025 Planning Timeline ●7/18 VLMDAC Meeting: 2024 Budget discussion – secure board direction on priorities ●8/1 Partner 2025 Planning Session ●8/15 VLMDAC Meeting: Present Draft Operating Plan for Town Council on 9/16 ●9/3 VLMD/Town Council DMO Update ●9/4 Proposed VLMDAC Special Meeting Operating Plan FINAL: Virtual ●9/17 Town Council Meeting: Present and adopt 2025 Operating Plan ●9/19 VLMDAC Meeting ●10/17 VLMDAC Meeting ●11/16 VLMDAC Meeting ●11/19 Town Council Meeting: Present final budget ●12/5 or 12/19 VLMDAC board seat interviews at Town Council 2025 Preliminary Business Goals May - October 2019 Results 2021 Results 2022 Results 2023 Results 2024 Goal 2024 Forecast 2025 Preliminary Goals 4% Sales Tax $9,853,122 $13,674,538 $14,222,156 $14,016,278 $14,222,156 Flat with 2022 YTD actuals $14,037,837 To be discussed 1.4% VLMD Tax Revenue $931,499 $1,482,956 $1,457,425 $1,433,980 $1,338,457 $1,437,943 To be discussed Occupancy 45%45%43%43%45%45%46% Group Occupancy 25% 15%24% 22% 25%24%26% Preliminary Marketing Goals Goal 2022 Actual 2023 Actual 2024 Goal *2025 Goal Increase Destination (OOS) Visitation 6/1 - 9/30 * WiFi: 34,397 Guest Profiler: 50.2% Web Visits: 353,703 * WiFi: 34,220 Guest Profiler: 57.5% Web Visits: 352,346 5% increase YOY 3% increase over 2024 actuals Build Loyalty: Repeat visitation 6/1 - 9/30 *How do we define this? Repeat visit within 3 years 3.7% of 2021 summer WiFi visitors returned in 2022 summer (based on YOY, not 3 years) 5.6% of 2022 summer WiFi visitors returned in 2023 summer (based on YOY, not 3 years) 6.4% of 2023 summer WiFi visitors will return in 2024 summer How else can we measure this? Working on aggregated lodging report Increase Occupancy *10/15 - 12/15 36.6%37.4%39.3% 5% increase YOY 3% increase over 2024 actuals *4/1 - 5/31 TBD TBD TBD TBD *to be discussed 2025 Budget Projections 2025 Revenue Projection $ 5,583,000 ●Lodging Tax revenue is forecasted at $5,520,000 ○This represents an increase of 1.0% from 2023, and 2.3% from the 2024 Budget. ●Interest Revenue is projected at $63,000 ●Revenue forecasts will continue to be monitored and adjusted through budget process 2025 Funds Available to Spend ●Total funds available of $6,713,628 ○Annual operating funds of $5,583,000 with a projected $1,130,628 of reserves ○Reserves should not be utilized for annual ongoing expenditures ○ Annual Revenue and Expenditure Comparison -Prior to 2020, annual revenues and expenditures totaled around $3.5M; revenues averaging 6% annual increase -Revenues appear to be normalizing after COVID; new “normal” lodging tax revenue projected at $5.5M Where blue bar is taller than green bar= use of reserves Annual Reserves Comparison This reserves projection assumes no reserves are utilized }Reserves available of $1.13M Prior to COVID reserve balances were fairly consistent 2025 Expenditure Impacts to Reserves 2023 Actual 2024 Projection 2025 (No Reserves Used) 2025 (35% Reserves) 2025 (25% Reserves) Lodging Tax $5.5M $5.5M $5.5M $5.5M $5.5M Total Expense $5.6M $5.7M $5.5M $6.2M $6.7M Use of Reserve $437K $953K -$600K $1.1M Reserve $3.5M $2.5M $2.5M $1.9M $1.4M Reserve % (25% Min) 63%45%45%35%25% 2025 Objective & Priorities Drive responsible year-round revenue growth in Vail by targeting overnight guests who stay longer and spend more, while effectively communicating community and brand values. Areas of focus include increasing mid-week and lower demand time period stays. Business Objective Target high net worth guests, maximize longer stays and higher spend, gain greater understanding of customer through research while educating on community values. Optimize Visitation Grow customer database and use data to better understand guest to enhance engagement & loyalty. Build Loyalty Develop and deliver upon a brand position that reflects community values, differentiates Vail in ways that build its competitive edge, and inspires all to care for Vail. Lead Stewardship Position Vail as the Premier International Mountain Resort Community and work with community partners to define, support and deliver on the brand. Brand Positioning 2025 NEW Priority Opportunities Build Loyalty Lead Stewardship Optimize Visitation Brand Positioning International International guests stay longer and spend more. -Colorado Tourism Office International Sales and Marketing -Vail Resorts International Strategy -Addition of customs facility at EGE 2025 NEW Priority Opportunities Build Loyalty Lead Stewardship Optimize Visitation Brand Positioning AI Enhance customer service, content cost efficiencies, personalization, data insights and scalability Partners will be providing solutions where ai can save us time and money What do we think Ai solves? 2025 Priority Discussion Build Loyalty Lead Stewardship Optimize Visitation Brand Positioning Paid Media -Being more effective with fewer dollars -Identifying unique media opportunities -Partnerships -Influencer Program -Creative brainstorming 2025 Priority Discussion Build Loyalty Lead Stewardship Optimize Visitation Brand Positioning Event Marketing -How should we incorporate event promotion into our marketing efforts? -Currently, well woven into our owned channels content - Opportunities to better partner with events/event producers DMO UPDATE KEY CHAPTERS IN THE VAIL LOCAL MARKETING DISTRICT EVOLUTION: Establishment of the Vail Local Marketing District, a marketing and promotions tax funded at 1.4% per night tax on overnight stays of less than 30 days in Vail. The statute defines the power of the district to provide the following services: Organization, promotion, marketing and management of public events, Activities in support of business recruitment, management and development, Coordinating tourism promotion activities VLMD Est. 1999 2020 KEY CHAPTERS IN THE VAIL LOCAL MARKETING DISTRICT EVOLUTION: 1999 Creation of the Vail Local Marketing District by the Vail lodging community, funded by a 1.4% per night tax on overnight stays of less than 30 days in Vail. VLMD is poised to evolve into a comprehensive DMO, encompassing 12 months of destination marketing, management, special events, welcome centers, and business development. VLMD partners with Vail Mountain to directs users to Vail.com as its primary call to action. VLMD leads summer marketing, Vail Mountain manages winter marketing 2006 2007 VLMD creates its first online presence at DiscoverVail.com. VLMD begins to gather customer data and create a customer relationship management framework: full- time, year-round marketing. 2020 CO Bill HB1117 Passed VLMD affirmed VLMDAC focus on marketing and promotions Magellan conducts ballot initiative polling Management of the VLMD moved in-house, to the Town of Vail, including Special Events oversight. 2022 2024 CURRENT AND RECOMMENDED STRUCTURE Vail Town Council VLMDAC Town Manager Deputy Town Manager Econ Dev Director Internal Role External RoleInternal and External KEY Reporting Structure CURRENT DIRECTION AND GOVERNANCE Vail Town Council VLMDAC Town Manager Deputy Town Manager Tourism & Econ Dev Director Internal Role Internal and External External Role KEY Strategic Direction Reporting Structure PROPOSED STRATEGIC DIRECTION AND GOVERNANCE Econ Dev Director Marketing & Communications Advertising Group Sales Airline Relationships Social & Content Public Relations Research & Data Analytics Special Events Sponsored Events Owned Events Event Review/Permitting Econ Dev Admin Welcome Centers Business Development Regional Cham ber Local Chamber Internal Role Internal and External External Role CURRENT TOV ECON DEV DEPARTMENT STRUCTURE VLMDAC Tourism & Econ Dev Director The Vail Experience Customer ServiceTraining Welcome Centers Tourism & Econ Dev Admin Destination Marketing Advertising Lodging Liaison Public Relations Social Media & Content Research / Data Analytics Group Sales Airline Relations Special Events Strategic Development Permitting & Production Business Development Entrepreneurship Small Business Support StewardshipRegional Chamber Local Business Chamber Vail Economic Advisory Council Internal Role Internal and External External Role PROPOSED TOURISM & ECON DEV DMO STRUCTURE VLMDAC VLMDAC Tourism & Econ Dev Director Destination Marketing Advertising Regional Chamber Group Sales Air Service Communications & Public Relations Social Media/Content Public Relations Research & Data Analytics Special Events Strategic Development Sponsorship Permitting & Production The Vail Experience Customer Service Training Welcome Centers Community/ Engagement Stewardship Local Business Chamber Business Development Entrepreneurship Tourism & Econ Dev Admin External RoleInternal Role Internal and External PROPOSED LONG TERM: TOURISM & ECON DEV STRUCTURE Current Future Town Council (VLMD)Approve budget and operating plan Appoint VLMDAC Approve Contracts Same, except approve contracts VLMDAC Provide strategic direction for operation of the destination marketing organization including marketing and promotion of destination Provide strategic plan for comprehensive DMO including marketing, special events, visitor experience and destination development Approve Contracts Town Manager Econ Dev Director reports to Deputy Town Manager Same Economic Development Director Manage operation of Econ Dev with direction from town manager and VLMDAC Manage operations of the comprehensive DMO with direction from VLMDAC strategic plan and town manager. ROLES AND RESPONSIBILITIES FUNDING AND IMPLEMENTATION CONSIDERATIONS DMO (VLMD + ECON DEV) FUNDING OVER TIME DMO (VLMD + ECON DEV) FUNDING OVER TIME DMO PHASED IMPLEMENTATION: SHORT TERM (0-18 Months) Name Change: Discover Vail: Tourism and Economic Development New Organizational Structure Maintain Current Marketing Programs and Initiatives, including Special Events New Organizational Strategic Plan –Develop in October 2024 Create the Marketing, Special Events, Arts and Culture (MSAC) Collaborative committee Next Steps -Events -RFP and Event Funding Process; VLMDAC involvement -See 08. VLMDAC Event Process Timeline in packet -Vail Experience -Business Development -October Retreat -3-year Strategic Plan -Board training, roles and responsibilities Next Steps: Future Meetings VLMDAC Future Meetings Options: -Same date with addition of full breakfast and extension to 12pm as needed -8:30: Breakfast served -9:00: Meeting starts -11:00: Ad Hoc committee meetings OR extended board meeting -12:00 Adjourn 2024 SUMMER MEDIA UPDATE Media Impact Nearly 50% of all web traffic comes from these three sources, two of which are paid: 1.Paid Social 2.Organic Search 3.Paid Search Paid media allows us to move Vail into a consumer’s awareness and consideration set. ●We compare travel intenders' consideration of Vail among competitors between a control group (surveyed in an ad placement) and a content exposure group (surveyed after being exposed to an article). ●In the control group, 13% ranked Vail as #1, while in the content exposure group, 38% ranked Vail as #1, demonstrating a significant lift due to article exposure. Media Impact This aligns with industry research on where travelers want to receive travel information (State of the American Traveler: Technology Edition: June 2024) ●Facebook (29%) and Instagram (19%) ●Website found via Search (37%) and Online (22%) content Top line Results: New Users 378,088 45% ⬆ Engaged Sessions 241,998 55% ⬆ Partner Clicks 95,184 241% ⬆ Programmatic Media Impact Impressions 43.2M ⬆ 56% YoY Clicks 166.K⬆ 40% YoY CTR 0.38% ⬆ 30% YoY ●The Summer Campaign to date has achieved impressive results across multiple digital channels, generating 43.2M impressions and over 166k clicks, resulting in a CTR of 0.38%, well above the industry benchmark. ●Display ads showed a 24% month-over-month increase in CTR, with "Empty Nesters," “Family,” and "Travel Intenders" segments driving the most engagement, while retargeting proved effective despite fewer pageviews. ●Campaign to date has led to 4,267 hotel bookings and generated over $2.9 million in revenue - 305% ROI Programmatic Media Impressions 43.2M ⬆ 56% YoY Things here And or here ⬆ Things here And or here XXX ⬆ Paid Social - Summer 2024 New tactic introduced in Summer ‘24 ●A retargeting tactic was tested for Summer 2024. Extremely strong performance ●All benchmarks were exceeded and we saw a huge decrease in costs/result from previous campaigns. Things here And or here XXX ⬆ Things here And or here Things here And or here XXX ⬆Campaign name Reach Impressions Results Cost per result CTR (all) Engageme nt Rate Benchmark ---$1.00 0.90% 3-5% Summer Traffic 712,245 2,169,753 33,397 $0.70 2.32%19.42% Retargeting Campaign-LPV 168,939 443,191 11,711 $0.59 4.19%9.04% Paid Social - Summer 2024 ●We observed that Outdoor enthusiasts brought the most clicks at a lower cost. ●Spend was equal to all age groups, yet adults 55+ brought the most clicks to the paid ads (expected). Things here And or here XXX ⬆ Things here And or here Things here And or here XXX ⬆ Paid Social - Summer 2024 Things here And or here XXX ⬆ Things here And or here XXX ⬆ Things here And or here XXX ⬆ Top Ads for Website Traffic Tactic Optimizations Ad+Genuity Segment additions ●Lotame > Affluent Households ●Adara > In-Market Searchers ●Adara > Leisure travel in next 90 days ●Datonics > Outdoor enthusiast ●Adara > In Market to Colorado Ad+Genuity identifying highest yielding audiences ●Dstillery: Last Minute Travel Intenders ●ShareThis: Summer Travelers ●ShareThis: Travel Intenders Nativo CTA ●May 13th ○CTA: 1.84% ●June 13 ○CTA: 3.05% Native Display Pre-Roll Creative Optimizations ●Update Vail's visuals with vibrant summer scenes, highlighting lush landscapes, blooming wildflowers, and sunny skies. ●Capture the joy of summer activities like hiking, paddleboarding, lakeside picnics, and village festivities. ●Highlight community vibrancy with images of outdoor concerts, etc ●Feature panoramas and mountain views, inviting our audience to experience Vail's tranquil beauty and adventurous spirit. ●Additionally, add in 970x250 ad size ORGANIC SOCIAL UPDATE Facebook ●Focus now: gaining followers to build credibility. ●September: shift to boosting engagement rates. Note: as follower increases usually decrease engagement rates. ●Facebook likes campaign has exponentially increased followers and engagement rates. ●Focus now: gaining followers to build credibility. ●September: shift to boosting engagement rates. Note: as follower increases usually decrease engagement rates. Instagram Social View Videos TOWN OF VAIL AND SPECIAL EVENTS UPDATES Thank you! Upcoming Meetings: VLMDAC Board Meeting Thursday, August 15, 2024, Grand View Room