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HomeMy WebLinkAbout06. Vail Destination Marketing Organization Structure Final Report - 07.02.2024 1 Avg Town of Vail Marketing Organization Structure Analysis and Recommendations Final Draft 2 Table of Contents Executive Summary 3 Project Overview 5 Organizational Purpose 6 The Key Issues 7 Part 1: Recommended Structure 11 Part 2: Phased Implementation 20 Part 3: Organizational KPIs 24 3 Executive Summary (Note: Discover Vail is used throughout the report to refer to the Destination Marketing Organization DMO.) Vail, Colorado, has long been one of the country’s premier destinations, offering world-class skiing, outdoor recreation, shopping, and accommodations. For many years, Vail Resorts defined the destination as a world-class skiing destination. Over time, however, the destination has sought to diversify and attract visitors beyond the winter season and activities. During this time, the role of Discover Vail, the Town's Destination Marketing Organization (DMO), has increased in importance. As the role and responsibilities of Discover Vail have increased, its promotional functions and staffing have also adapted organically. As tourism has become increasingly competitive, and the demands on DMOs and tourism promotion have changed over time, including within the past half- decade, the influence of residents, tourism’s impact on the environment, housing, air service, and labor, coupled with the sophistication of marketing has put increased stress on the organization given its current staffing levels. The Town of Vail is unique in that the destination marketing efforts are maintained within the town's economic development department. In contrast, most Destination Marketing Organizations are separate organizations outside local government. The organization has a $9 million annual budget from the lodging tax and the general fund. These funds support overall marketing efforts, group sales efforts, airline support efforts through a partner organization, the Vail Valley Partnership, and the efforts of the Vail Chamber and Business Association. Additionally, regarding the special events relationship with Vail Resorts, the town funds special events. Vail Resorts works primarily with its strategic partners and also financially partners with the town on early and late-season events. These efforts are supported by small internal staff, including the Economic Development Director, who serves as the Executive Director, and marketing, special events, and visitor information staff. As the industry dynamics have changed and the demands on the organization have increased, the organizational structure has remained the same, creating challenges to the organization's expectations regarding current and future needs from the tourism industry, community, and Town. The goal of the organizational structure review is severalfold: first, to identify the most effective structure possible to enable the destination to match the changing competitive environment; second, to maximize the organization's efforts as part of the strategy; and third, to better incorporate the community’s needs and stewardship into Discover Vail’s efforts. Discover Vail needs to be appropriately staffed to implement the necessary tourism programs compared to other destinations and Destination Marketing Organizations. This also challenges the organization to anticipate and respond proactively to a changing tourism industry environment. 4 Recommendations: Moving forward, there are several recommendations for the Town to consider, including the following:  Renaming the department from the Economic Development Department to the Tourism and Economic Development Department to reflect the department's activities more accurately.  Consider realigning the Vail Local Marketing District Advisory Council to streamline the reporting flow. The Advisory Council is a Board of Directors that reports to the Town Council. A more responsive structure would give the VLMDAC authority over the budget and operating plan, including supplemental budget requests.  As a town employee, clarify the executive director's relationship with the available local marketing district Advisory Council, the town manager's office, and ultimately, the town council.  Organize the Discover Vail organizational structure around three core areas: demand generation, managing the Vail experience for visitors, and business support.  It is recommended that the organization evolve to a more fully staffed organizational structure that best implements the core areas mentioned above. The report outlines what a fully developed organizational structure could look like. This recommendation is based on anticipated needs and a review of competitive resorts and their organizational structures.  Develop a community Marketing, Special Evenings, Arts, and Culture (MSAC) Collaborative committee to provide input and insight to Discover Vail.  This evolution should occur in phases and be evaluated in that light. In the short term, the organization should add a community liaison position and a data/research analyst position. Beyond that, the organization should evaluate its specific needs, adding positions as needed.  Consider supplanting the town budget funds over time with an increase in lodging tax allocated to tourism promotion and workforce support. 5 Project Overview This project aims to review the current Discover Vail organizational structure. The review aims to assess the effectiveness and efficiency of the existing structure and make recommendations for improvements that align with the DMO's and Town of Vail's strategic goals. Any new organizational structure seeks efficiency and impact within a competitive marketplace. The Scope of Work included the following: 1. Assess current organizational structure: a. Evaluate the current reporting lines, departments, and roles within the DMO. b. Identify any inefficiencies, redundancies, or gaps in the existing structure. c. Analyze the clarity of responsibilities and decision-making processes. 2. Review the organization's goals to be as competitive as possible and to benefit the town, the community, and the industry, the Town, and the community. a. Evaluate how well the current organizational structure supports these goals. b. Identify areas where the structure could be revised to improve the organization's effectiveness. 3. Stakeholder engagement: a. Conducted interviews with staff and the Town Manager's office. b. Implemented a survey for the Vail Local Marketing District and the Vail Economic Advisory Council. c. Gathered feedback on different options and scenarios. d. Identified specific pain points or areas where improvements are needed. 4. Industry examples and benchmarking: a. Research and analyze selected competitive Destination Marketing Organization DMO organizational structures. Industry best practices in DMO organizational structures. b. Compare against similar DMOs or organizations in the tourism industry. c. Identify innovative approaches or models that could be applicable to Discover Vail. 5. Next Steps: a. Based on the assessment findings, propose a revised organizational structure that better aligns with the Town and the DMO's strategic goals. b. Provide a phasing for implementing the recommended changes. Special thanks to the Town Manager’s office and the Town of Vail Economic Development Department for providing the data, information, and insight needed to develop this report. 6 Organizational Purpose The Discover Vail organizational structure aims to establish a framework that defines how activities are organized, coordinated, and controlled to be as effective as possible given the Town and community's available financial and human resources. An effective Discover Vail organizational structure will enable the identification of the roles, responsibilities, and relationships between individuals, teams, committees, and vendors. Also, it assists with coordinating departments within the Town of Vail. Here are some critical purposes of organizational structure: 1. Clarity and direction: The Discover Vail organizational structure defines the reporting relationships, roles, and responsibilities of individuals, committees, vendors, and teams. It ensures that everyone understands the interrelationships between the organization's elements. 2. Efficient coordination: A well-designed Discover Vail organizational structure facilitates coordination and communication among elements inside and outside the Town with industry partners. It manages and coordinates channels for information flow, decision-making processes, and collaboration, ensuring that activities are aligned throughout the destination and resources are utilized efficiently. 3. Decision-making and autonomy: An effective Discover Vail organizational structure clarifies decision-making and gives individuals and committees the necessary autonomy to make decisions within their assigned roles and responsibilities. This promotes agility, innovation, and timely decision-making throughout the organization. 4. Scalability and growth: The Discover Vail organizational structure becomes crucial for managing complexity and ensuring scalability as the tourism industry changes and evolves as organizations grow. It allows for a strategic view of change instead of just an organic approach. As changes occur in the macro environment, an effective structure provides a framework for examining new roles, teams, or departments. It helps delegate authority, assign responsibilities, and manage the increased workload effectively. 5. Internal and external capabilities: Understand what expertise and skills are needed inside the organization and those that are needed from outside vendors. Most DMOs have staffing inside the organization, and they retain outside vendors with specific areas of expertise. It is essential to have the right mix to manage outside vendors best and have the value-added expertise outside vendors can bring. 6. Performance accountability: The Discover Vail organizational structure establishes clear lines of authority, which enables effective performance management and accountability. It helps set organizational performance expectations, evaluates overall performance, and identifies opportunities for improvement. The Discover Vail organizational review aims to create an efficient, productive, and well- coordinated work environment that supports achieving organizational goals and objectives. 7 The Key Issues • Strategic direction or organic evolution of the organization The strategic evolution of Discover Vail refers to a deliberate, planned approach to shaping and changing the organization's structure. It involves setting clear goals and objectives, creating a detailed roadmap, and implementing changes in a controlled manner. This allows for a proactive approach to adapting to market trends, technological advancements, or other external factors that may impact the organization. In contrast, organic evolution pertains to a more flexible and adaptive approach to organizational structure. It emphasizes a natural development process that emerges over time, influenced by internal dynamics and organizational interactions. Organic evolution allows for more spontaneous changes and adaptations, often driven by the needs and behaviors of employees or teams within the organization. The challenge arises when deciding which approach Discover Vail should prioritize. Strategic evolution is necessary for organizations to stay ahead in a rapidly changing business environment. Organizations can better align themselves with their goals and objectives by planning and implementing changes. However, others believe that organic evolution allows for greater creativity, innovation, and employee empowerment, leading to a more dynamic and resilient organization. The conflict between the two approaches lies in finding the right balance. • Efficient role of committees in the town structure One opportunity for restructuring Discover Vail’s marketing structure is streamlining the role of the Vail Local Marketing Advisory District Committee within the context of the Town of Va il’s organizational structure. Revising the structure and streamlined decision-making will enable the organization to be more adaptive and responsive to a rapidly changing marketplace. • Future funding sources Discover Vail receives its funding from two primary sources: the Town of Vail general fund, which funds special events, welcome centers, economic development, and lodging tax collections allocated to promotional efforts. One future consideration is to increase the tourism promotion dollars resulting from lodging tax collections and reduce the amount of funding from the Town of Vail general fund. This shift over time will create a closer alignment between lodging tax collections and their intended purpose for marketing and promotion. At the same time, retaining shifting general fund dollars (traditionally allocated to special events) back to the general fund will increase the funds available for community quality-of- life investments and illustrate how tourism delivers more significant benefits to the community. • Tourism Revenue Generation Typically, tourism as a revenue generator is not a part of local government functions. 8 Many towns and destinations have tourism organizations that are external to the town and take on the primary role of Tourism development and revenue generation, which benefits the town. • Implementation of town stewardship program The Town of Vail recently invested significant time and resources in developing a community-wide sustainability and stewardship plan. This plan is designed to balance the management of visitors and their impact on the destination with the need for and recognition that tourism is vital to the community's economic well-being. Discover Vail is critical in implementing that program and will need staffing to identify appropriate resources to support these broader community efforts. • Marketing-related issues A focused organizational effort can support several marketing-related issues. These include building the Discover Vail brand and its integration into the marketing, promotions, special events, and sales programs, a consistent year-round marketing effort, not just a summer program, and, in the group business, a focus on securing and retaining group business, especially village-wide groups, within the Town of Vail. • Improved integration with Town of Vail partners The town supports the Vail Chamber and Business Association by funding the PrimiVail customer service training, engagement, and recognition program. The Vail Valley Partnership is supported based on its group sales, serving as a lodging liaison, conducting research, and representing the workforce. With adequate staffing and integration into Discover Vail’s marketing programs, there is an opportunity to leverage these relationships fully. • Organizational Head Count Adding additional personnel to a municipal government can often be challenged through a community lens. The addition of staff for tourism may have potential political implications, viewed from a community perspective. • Competitiveness with other peer destination marketing organizations (DMOs) Tourism is a highly competitive industry, and destinations compete for visitors, as well as the positive economic impact they bring, including wages, taxes, and employment. A better- aligned and more competitive Discover Vail offers significant opportunities to compete effectively with other peer destinations. 1. Attracting targeted tourists: With numerous peer destinations to choose from, being as competitive as possible allows Discover Vail to highlight the unique features and offerings of the destination on a year-round basis. 2. Enhancing guest experience: Staying competitive necessitates continuously improving and innovating the Town of Vail’s offerings and services. An appropriate organizational structure enables Discover Vail to focus on programs that enhance the guest experience. 9 3. Marketing effectiveness: Competitiveness can drive Discover Vail to refine its marketing strategies effectively to communicate the destination's advantages to potential guests. This can include targeted advertising, social media campaigns, partnerships, and personalized experiences catering to specific market segments. 4. Industry reputation: A destination that consistently strives to be competitive in the market earns a strong reputation within the tourism industry. 5. Economic impact: Competing with other peer destination resorts contributes to the region's economic growth. Tourists are more likely to choose a destination that offers a variety of competitive resorts, leading to increased visitor numbers, longer stays, and higher spending. 6. Destination Development: This includes planning, managing, and enhancing Vail’s tourism assets and infrastructure to attract and cater to visitors and residents, including infrastructure, product development stewardship, and sustainability. 7. Funding: Tourism is funded by a 1.4% lodging tax, which has been in place for over 25 years. At the same time, Discover Vaill's role has expanded significantly to include year-round marketing and more. Funding percentages have not changed in the Town of Vail, which provides significant funding for special events. • Integration of Discover Vail tourism efforts into the broader Town of Vail’s strategy Understanding that tourism within the Town of Vail is part of a broader community strategy is essential. This integration catalyzes the Town of Vail's broader strategy, including economic development, community culture, pride, and sustainable growth. It helps create a well-rounded and prosperous community that quantifies the benefits of tourism to the local community. This integration goes beyond economic development and is vital for several reasons: 1. Economic development: Tourism can significantly drive economic growth and development. Strategically integrating tourism into a community's strategy can create job opportunities, stimulate entrepreneurship, attract investments, and generate revenue for local businesses and governments. 2. Infrastructure development: Tourism often necessitates developing or improving transportation, accommodation, and recreational facilities. Incorporating tourism into a community's strategy increases the focus on infrastructure development, benefiting tourists and locals alike. 3. Community pride and identity: Tourism can enhance community pride and identity by highlighting the local culture, heritage, and natural beauty. It encourages residents to appreciate and preserve their unique assets, fostering a sense of pride and ownership in their community. 4. Quality of life: A vibrant tourism industry can enhance the quality of life for residents. It can lead to the creation of recreational opportunities, cultural events, 10 and improved amenities and services. Additionally, the revenue generated from tourism can be reinvested in community development, improving infrastructure, education, healthcare, and other essential services. 5. Sustainability and conservation: Integrating tourism into a broader strategy allows for a more sustainable approach. It provides an opportunity to balance economic growth with environmental conservation and social responsibility. Communities can implement sustainable tourism practices, protect natural resources, and preserve cultural heritage for future generations. 11 Part 1: Recommended Structure The following section includes the current Discover Vail organizational structure for tourism promotion and several different organizational structures that can be phased over depending on current and future needs. The Current Discover Vail Organizational Structure The following structure reflects Discover Vail's current situation. Staffing includes the executive director, marketing communications, special events, and visitor information. The primary focus is tourism promotion and, to a lesser degree, business retention and attraction. The organization also financially supports the Vail Valley Partnership and group sales efforts. It also funds employee support programs operated by the Vail Chamber Business Association. Figure 1: Current Discover Vail Organizational Structure The structure is within the economic development department, so no separate organization is typical of destination marketing organizations. Additionally, the role of the Local Marketing District, the Town Council, and the Town Manager’s office with funding from different sources (General Fund and the Lodging tax) can provide a cumbersome reporting structure. 12 Recommended Structure The recommended structure is proposed in the executive director’s reporting structure and the overall organization reporting structure. Executive Director Reporting Structure The first element of the organizational structure is the reporting structure of the Executive Director. Given that the Economic and Tourism Director is a town employee, thus is a direct report to the Assistant City Manager and is responsible to the Town Manager and, ultimately, the Town Council. Figure 2: Proposed Strategic Direction and Governance It should be noted that the Economic Development and Tourism Director is responsible for the VLMDAC and oversees the implementation of department programs and initiatives. In this configuration, the director and the VLMDAC are responsive to the Vail Town Council but can aggressively implement programs needed to promote the destination effectively. It should also be noted that the VLMDAC, which effectively serves as the board of directors, reports to the town council two times a year and seeks funding annually. 13 Proposed Organizational Structure To understand the potential needs of Discover Vail, we reviewed the current functions as well as several different destination Marketing Organization (DMO) structures. Comparing different DMO organizations provides insight in the following areas: 1. Efficiency and productivity: By comparing different DMO organizational structures, it is possible to identify which structures are more efficient and productive for specific tasks. For example, DMO services can be provided within a local government structure or have a separate DMO. 2. Communication and collaboration: Given the support to external organizations, how effective is the flow of information and collaboration toward Discover Vail’s goals? 3. Employee motivation and satisfaction: Discover Vail's structure can influence employee motivation and satisfaction. Analyzing and comparing different structures can help us better understand which ones empower employees, provide growth opportunities, and foster a positive work environment. 4. Adaptability and flexibility: DMOs must be adaptable and flexible in today's rapidly changing tourism industry. By comparing different structures, we can identify the potential changes that enable Discover Vail to respond quickly to market changes or new opportunities. 5. Decision-making processes: Discover Vail’s organizational structure, which can affect decisions and who has the authority to make them. Currently, the decision-making process includes staff, the town council, and the Local Marketing District Advisory Council. Comparing different structures can identify which ones promote efficient decision-making and ensure that decision-making power is appropriately distributed within the organization. The proposed structure reflects the needed functions and is based on conversations with the Town of Vail’s legal counsel. The recommended structure is based on three core areas: demand generation, the Vail destination in-resort experience, and local support for business. 1). Demand Generation: These activities include all demand generation marketing and special event efforts. Within the marketing function, activities include advertising, social media, public relations, airline relations, group sales, a lodging liaison, and research/data and analytics to support marketing activities. 2). The Vail in-resort Community Experience: These activities include customer service training, the recognition and engagement program, appropriate special events, community engagement through facilities, the Vail host program, and stewardship education. 3). Business Development: These activities include supporting entrepreneurship at the local level, supporting The Vail Chamber and Business Association and its advocacy for local businesses, and supporting the regional chamber, the Vail Valley Partnership, with its program supporting professional development advocacy and research. 14 15 16 The following is a summary of the roles and responsibilities of the proposed structure. 17 Every evolving organizational structure seeks efficiency and impact within a competitive marketplace. This proposed structure is evolving in several essential ways. The organization is set up in accessible, functional areas, and it modifies the role of the VLMDAC to a board of Directors and clarifies the reporting relationship of the Executive Director to the Town and the VLMDAC. In the short term, this structure adds two new positions: community engagement, which oversees the new stewardship program and engages more directly with the chamber of commerce, and research and data analytics, which oversees in-house and external vendors. This structure enables the organization to focus on generating targeted demand, enhancing the visitor experience, and supporting local businesses through its efforts, the Chamber of Commerce, and the Vail Valley Partnership. It recognizes the importance of data and analytics and enables Discover Vail to assume more industry and community leadership. It is important to note that the success of an external Discover Vail DMO depends on effective communication, collaboration, and alignment with the city government, local businesses, and community stakeholders. Building strong partnerships and maintaining open communication channels can mitigate potential disadvantages and maximize the benefits of having a standalone DMO. From the town's perspective, it allows the organization to be responsive to marketplace changes while having some level of oversight to ensure alignment of values, goals, objectives, etc., between the town and its priorities and Discover Vail. This can be achieved through the budgeting process, as the organization continues to be funded through the town budgeting. The figure below illustrates how, with funding from the Town of Vail, the organization would be managed by the Board of Directors, who would provide ultimate oversight but enable the town to maintain accountability with public funds. Community Involvement An important element of the new structure is the continued community involvement period. To that end, the town can create a Marketing, Special Events, and Arts and Culture Collaborative Committee. (MSAC) See below. MSAC Description The Marketing, Special Events, Arts, and Culture (MSAC) Collaborative for Discover Vail is an advisory group established to enhance the strategic direction and execution of Discover Vail's tourism initiatives. This collaboration comprises diverse stakeholders, including local business owners, cultural leaders, event organizers, marketing professionals, and community representatives, who meet periodically to provide valuable insights and recommendations. Structure 1. Chairperson: A senior representative from Discover Vail who oversees the committee's activities and facilitates meetings. 2. Members: (Final Group Size TBD) - Local Business Owners: Hospitality, retail, and service representatives. 18 - Cultural Leaders: Directors or representatives from local non-profits, museums, galleries, and arts and cultural institutions. - Event Organizers: Coordinators of major local events such as festivals, concerts, and sports events. - Marketing Professionals: Tourism marketing, social media, and public relations experts. - Community Representatives: Influential residents or leaders from community organizations. 3. Support Staff: Discover Vail Administrative support to manage coordination, minutes, and communication. Purpose The group's primary purpose is to provide Vail Tourism with a broad spectrum of community perspectives, input, and expertise to enhance the town's attractiveness as a tourist destination and foster community engagement. The committee aims to: 1. Marketing: To provide insight into prospective marketing initiatives. 2. Special Events: Provide feedback on Vail events and Identify and recommend new special events to draw tourists and enrich the local culture. 3. Arts and Culture: Develop strategies to highlight Vail's artistic and cultural offerings. 4. Foster Community Engagement: Ensure tourism initiatives align with community interests and values. 5. Village animation and programming: Support town staff in evaluating need periods and target demographics for ambient programming. Activities 1. Periodic Meetings: Convene quarterly meetings to discuss ongoing and upcoming initiatives, review performance metrics, and brainstorm new ideas. 2. Workshops: Conduct specialized workshops and focus groups to gather detailed feedback on specific projects or issues. 3. Event Reviews: Evaluate past events to determine successes, challenges, and areas for improvement. 4. Marketing Campaign Review: Review current marketing campaigns' effectiveness and suggest adjustments or new approaches. 5. Cultural Program Development: Collaborate with local artists and cultural institutions to develop programs that highlight Vail’s unique cultural heritage. Meeting Logistics - Frequency: Quarterly, with additional meetings as needed. - Location: Vail Tourism office or a central community venue. - Format: Hybrid (in-person and virtual) to accommodate all members. - Agenda: Distributed one week prior to meetings; includes reports on current projects, new proposals, and open discussion time. - Minutes: Documented and shared with all members and relevant stakeholders within two weeks after each meeting. Expected Outcomes -Improved Tourist Experience: Enhanced visitor satisfaction through well-planned events and effective marketing. 19 - Economic Growth: Increased revenue for local businesses due to higher tourist turnout and engagement. - Cultural Enrichment: A vibrant Vail cultural scene that attracts and retains visitors. - Community Alignment: Tourism strategies that reflect and support the interests and well-being of the local community. 20 Part 2: Phased Implementation In considering potential next steps, the following questions should be considered:  Over the long term, what is the Town of Vail’s objective for funding? Currently, the town funds the economic development department with approximately $ 3.7 million for special events, economic development, and visitor centers. Does it wish to continue that or replace funding with a lodging tax increase?  Over the long term, what level of control does the Town of Vail want over-tourism? Is the Town willing to give up some control to create a separate Destination Marketing Organization?  What is the best structure to be as competitive as possible? Should that structure be within the Town or as a free-standing organization?  Which option best fits with the broader long-term (10-20 years) strategy of the Town? Discover Vail may want to consider implementing a phased approach to the following comprehensive organizational structure. Why a phased approach? Having a short-term interim organizational structure can be advantageous in the process of working towards a long-term permanent structure for several reasons: 1. Flexibility and adaptability: A phased approach is more flexible and adaptable than moving to a long-term structure. The interim structure can be adjusted quickly to accommodate changing circumstances or goals. 2. Experimentation and innovation: A phased approach allows Discover Vail to experiment and innovate new opportunities. Discover Vail can test new ideas and processes without committing to long-term investments or changes. This allows the organization to identify what works and what does not, allowing for continuous improvement and refinement of the long-term permanent structure. 3. Risk mitigation: A phased approach can help Discover Vail mitigate long-term commitments or investment risks. By implementing the interim structure, the organization can see what works. This mitigates the risk of investing significant resources into long-term structure and personnel that may yield different outcomes. Overall, a phased approach offers Discover Vail the flexibility, adaptability, and opportunity for experimentation needed to achieve their desired outcomes. It enables efficient resource allocation, risk mitigation, and organizational learning, contributing to the overall success and growth of the organization. 21 Short Term (0-18 Months) 1. Name Change Discover Vail is located within the economic development department of the Town of Va il. In the short term, it would make sense to rename the department to emphasize its significant focus on tourism. Vail's economic development efforts differ from classical economic development departments at the municipal level. Much of this is based on the uniqueness of the veil economy and tourism's significant impact. It would be recommended that the town of Vail consider a name change for the department to be more in line, for example, just calling it a tourism department or, at a minimum, a tourism and economic development department. Making that change in the short term begins reframing Discover Vail’s efforts as they evolve over the next several years. 2. Organizational Structure The proposed future organizational structure for Discover Vail is recommended based on several critical criteria. These include being efficient and impactful within a competitive marketplace and revising the structure to best support the broader Town of Vail strategy for the community. Assumptions: • The organizational structure reflects tasks, not necessarily bodies. In some cases, one individual may be doing one or more tasks. • It assumes that some positions may be shared with other departments within the town infrastructure. • It assumes that positions can be phased in based on an appropriate timeline and need. • It assumes the department’s name would change to Tourism and Economic Development to reflect its activities better. In the short term, adding two positions would require a community engagement position and a research and data analyst position. Both positions could be shared with other departments within the town infrastructure as needed. This option includes external vendors/ partners, including group sales, The Vail Chamber and Business Association, public relations, advertising/ creative, research, etc. The community engagement position would serve as a vital link between Discover Vail and the local community. The responsibility would be to develop and implement strategies that foster positive relationships, engagement, and collaboration between Discover Vail and the business and community members and support the implementation of the stewardship and sustainability program. The research analyst position is essential for gathering and interpreting data to inform Discover Vail's marketing strategies and decision-making processes and also providing key data analysis to town departments. 22 3. The VLMAC be Reconfigured as the Board of Directors The Vail Local Marketing Advisory Council would be reconfigured as a Board of Directors and continue its crucial advisory role in developing marketing, public relations, social media strategies, and programs. In configuring the board of directors, The Town Council may want to consider a 9–11- member board with one seat for an elected official and one for Vail Resorts. The remaining seats can be filled with appropriate representation of the hospitality community, special events, recreation, arts, culture, or others. 4. Maintain Current Marketing Programs and Initiatives Maintaining current marketing programs and initiatives while revising the organizational structure over the long term is essential for several reasons: • Continuity and Stability: The town ensures continuity and stability with its marketing efforts by running the current marketing programs and initiatives. This helps to maintain relationships with existing stakeholders, as well as provide a consistent brand experience. • Data and Insights: Continuing with the current marketing programs allows Discover Vail to gather valuable data and insights about your target audience, market trends, and the effectiveness of your strategies. • Risk Mitigation: Implementing a new organizational structure involves inherent risks and uncertainties. The town has a fallback option by maintaining the current marketing programs in case the new initiatives face challenges. This mitigates the risk of a complete disruption in marketing activities during the transitional period. • Resource Optimization: Running the current marketing programs alongside developing a transition plan for the new organizational structure helps optimize resources. It allows Discover Vail to leverage existing marketing assets, relationships, and investments while exploring potential changes in the marketing strategy under the new structure. Maintaining current marketing programs and initiatives while investigating a new organizational structure over the long term helps balance continuity with innovation, mitigate risks, optimize resources, and facilitate a seamless transition toward a more effective and aligned marketing strategy. 5. New Organizational Strategic Plan Discover Vail organization is at a pivotal juncture where the ever-evolving landscape of travel demands a fresh strategic approach. In a dynamic industry where competition is fierce and traveler preferences continually shift, a new strategic plan is essential for the newly configured organization. By crafting a forward-thinking strategy, the organization can adapt to emerging trends, capitalize on untapped opportunities, and address evolving consumer needs while matching the organization's capabilities. This proactive approach will ensure the organization's sustainability and 23 position it as a leader in destination experiences, fostering economic growth and community development. 6. Develop the Marketing Special Events, Arts and Culture Collaborative Committee Completing this first phase includes forming a marketing, special events, arts, and culture collaborative committee designed to provide Discover Vail with important insight and aid in the formation of strategies and programs designed to achieve both short—and long-term objectives and goals. Long Term 1. Funding Given the current funding sources for Discover Vail, a future consideration from the Towns perspective may be to reduce its funding from the General Fund, approximately $3.7 Million. The current lodging tax instituted in 1999 is 1.4% and has not seen an increase in twenty-five years despite a need for year-round marketing efforts. A comparison with other Colorado resorts also indicates potential room for lodging tax increases: Source: Vail Valley Partnership An increase in the lodging tax could provide supplemental funding. This approach has several issues that need to be considered. It removes taxpayer funds from tourism promotion that could be reallocated within the city budget, saving taxpayer funds. At the same time, there would need to be a lodging tax equal to or more than the current funding level provided by the Town. It would be essential to gain support from the lodging industry to be successful in raising the tax rate. Uh 10.80% 12.25%12.65% 11.40% 17% 11.35% 16.80% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% Vail Breckenridge Telluride Steamboat Springs Winter Park Aspen Crested Butte Comparative Destination Lodging,Sles and Other Tax Rates 24 Phase 3: Organizational KPIs The following objectives must be considered when developing KPIs for an organizational transition. Organizational Key Performance Indicators (KPIs) have several primary objectives, including: 1. Measuring Performance: track the overall execution of the organization and measure ongoing progress. 2. Aligning Goals: Developing the KPIs helps align Discover Vail's objectives and priorities with the Town of Vails's objectives. 3. Driving Accountability: Create accountability for the VLDMAC for Discover Vail's overall performance and contributions to the organization's success. 4. Monitoring Progress: KPIs enable the Town Manager and Twon Council to monitor Discover Vail’s progress towards achieving its short-term and long-term goals, making identifying and addressing deviations from the desired outcomes easier. 5. Communicating Performance: The developed KPIs communicate the organization's performance to stakeholders, such as the Town Council, the Town Manager, industry, and the community. The overarching objectives are to align, measure, and drive performance toward the organization's desired outcomes. KPI Summary Marketing • Continued seasonal implementation of integrated marketing programs to meet goals and objectives. • The development of a new Discover Vail tourism strategic plan. Special Events • Development of a comprehensive particular event strategy. • Support “First Party” town and community-produced events. Increasing events where appropriate. • Attraction of targeted “Third-Party” new special events designed to attract visitors, effectively position the destination, and generate community support. • Assist in special event permitting, easing the process for event promoters. • On an annual basis, identify special events opportunities that meet long-term goals for the town. Community Experience • Support customer training to increase the number of community participants. • Continue to support and increase the recognition and engagement program. Business Development • Support entrepreneurship with information, assistance, and training on working with appropriate Town of Vail Departments for those looking to expand or start new businesses. • Continue engagement and support of the Vail Chamber and Business Association advocacy for local business. 25 • Continue to engage with and support the Vail Valley Partnership in its professional development, advocacy, and research programs.