The URL can be used to link to this page

Home My WebLink About01. August 15-2024-2025 OPERATING PLAN DRAFT - VLMDAC-BOARD PRESENTATION - V2VLMDAC BOARD MEETING AUGUST 15, 2024 Agenda 1.Minutes Approval (1 minute) a.Action Requested of Board: Approve minutes 2.Monthly Financial Report (5 minutes), Jake Shipe, Town of Vail 3.DMO Update/2025 First Cycle Special Events Funding (10 minutes) Jeremy Gross, Town of Vail 4.2025 Operating Plan (60 minutes) Town of Vail and Partner Group a.Action Requested: Review and provide feedback 5.Town of Vail Updates a.Special Events b.Vail Brand 6.Other Business 7.NEW Public Comment 8.Adjournment MINUTES APPROVAL Minutes Approval Action requested of board: Approve the July 18 VLMDAC meeting minutes. MONTHLY FINANCIAL REPORT DMO / EVENT FUNDING UPDATE Event Sponsorship ●The Town sponsors over 50 events per year. Most of the events have received Sponsorship for many years ●Sponsorship deliverables are focused on data collection, driving traffic to DiscoverVail.com, and marketing impressions that include Discover Vail branding. ●The events are evaluated on their ability to achieve the following goals. ○Audience Fit ○Economic Impact ○Marketing Power ○Sponsorship Benefits ●Events are evaluated in 4 categories with different weights on the above goals. ○Signature Events ○Visitor Draw Events ○Recreation and Tournaments ○Education & Enrichment Event Sponsorship Process ●Staff will publish the RFP for sponsorship and review applications. ○Existing events that are achieving expectations and delivering on their promised rights and benefits may not need to present. ○New events, or events with increased requests may present to staff and ad-hoc members. ○Ad-hoc members will join event funding committee for review of all sponsorship recommendations ●Timeline ○First cycle 2025 RFP Published in August/September ○Staff Review in late September ○Event Funding Committee Review in October ○Present sponsorship allocations to VLMDAC at October meeting ○Notify events of sponsorship and begin contracting in November ○February - update and publish 2nd cycle RFP 2024 CAMPAIGN UPDATE2025 OPERATING PLAN AND BUDGET VLMD Operating Plan / Milestones 2025 Planning Timeline ●7/18 VLMDAC Meeting | Secured board direction on priorities and budget scenarios ●8/15 VLMDAC Meeting | Review Draft Operating Plan ●9/4 VLMDAC Special Meeting | Finalize Operating Plan | Virtual ○9/17 VLMD Meeting at Town Council: Adopt 2025 Operating Plan ●9/19 VLMDAC Meeting | Preparation for Strategic Planning ●10/9 – 10/11 VLMDAC Strategic Planning Off-site ●10/17 VLMDAC Meeting | Regular Meeting ●11/21 VLMDAC Meeting | Regular Meeting ○11/19 Town Council Meeting | First Reading Town of Vail 2025 Budget ○12/3 VLMD Meeting at Town Council: VLMDAC board interviews and appointments Board Action Summary = Feedback and Direction needed for: 1.Revised Business Goals 2.Revised Marketing Goals 3.Budget Scenario A, B or combination for each one time spend Note: “baseline” is noted as part of existing budget for that specific tactic. Final Approval not requested until 9/4 Special Meeting 2025 Preliminary Business Goals May - October Indicator 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 $14,037,837 Flat with 2024 forecast 1.4% VLMD Tax Revenue $931,499 $1,482,956 $1,457,425 $1,433,980 $1,338,457 $1,437,943 $1,437,943 Flat with 2024 forecast Occupancy 45%45%43%43%45%46%47% Group Occupancy 25% 15%24% 22% 25%24%24% 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 *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 % WiFi Goal will be determined at end of 2024 when WiFi visitation has been in place for over 3 years Increase Occupancy 11/15 - 12/20 36.6%37.4%39.3% 5% increase YOY 3% increase over 2024 actuals *4/1 - 4/20 46.0%43.9%NA 49.7% (Easter April 20, 2025) 2025 Revenue Projection $ 5,583,000 ●Lodging Tax revenue is forecasted at $5,520,000 ○This represents an increase 2.3% from 2024 Budget & 1.0% from 2023 ●Interest Revenue is projected at $63,000 2025 BUDGET – SCENARIO A $ 6,183,000 ●Annual Baseline Budget: $5,483,000 ●Contingency: $ 100,000 ●Initiatives Using Reserves $ 600,000 Left with 35% of reserves: $1,900,000 2025 BUDGET – SCENARIO B $ 6,683,000 ●Annual Baseline Budget: $5,483,000 ●Contingency: $ 100,000 ●Initiatives Using Reserves $1,100,000 Left with 25% of reserves: $1,400,000 ○ 2025 Proposed Budget 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 Priority Based Budget Breakout Optimize VISITATION Baseline Strategy (No Use of Reserves) ●Maintain current level of Groups Sales ●Maintain lodging campaigns to fill need periods ●Maintain video distribution ●Paid Media ○Maintain destination markets ○Maintain Mexico efforts ○Maintain Destination and Front Range paid media efforts 51% 42% Optimize Visitation: Paid Media Channel Impressions Flight Search Hotel Search Flight Book Hotel Book Destination & Front Range Media 44,820,457 83,033 167,102 6,388 6,063 International Media 10,664,842 1,300 63,900 57 60 2024 Email 421,940 28 758 5 - ●Discover Vail sits high in a traveler funnel and primarily servers travelers in their awareness and consideration phases of travel planning. ●Paid media drives website traffic (42%) and website events and goals (41%)* ●Adara Impact Pixel Data Sources: * GA4, 1/1/24 - 7/31/2024 ** Adara Impact, 1/1/24 - 7/31/2024 Always accepting anonymized partner data to supplement! Optimize VISITATION - Paid Media One-time Spend Scenarios Scenario A A: $213,789 (including fees) Baseline + A: $1,926,790 Scenario B B: $362,204 (including fees) Baseline + B: $2,075,005 Impacts - Decreased presence/share of voice in Destination markets - Removal of higher priced media markets (NY, LA) - Lower reach/frequency with high net worth guests - Maintain presence/share of voice in Destination markets - Maintain higher priced media markets but at the minimum investment level - Maintain reach/frequency with high net worth guests Impressions 63,713,975 68,725,187 Hotel Bookings 9,357 10,092 Hotel Revenue $4,603,080 $4,965,120 Engaged Site Sessions 161,777 174,501 Event Count 2,408,689 2,598,136 Scenario A A: $120,000 Baseline + A: $320,000 Scenario B B: $240,000 Baseline + B: $440,000 ●2026 campaign concept, production and iteration enhancements highlighting the new brand. ●2026 campaign concept, production and iteration enhancements based on increased media spend. Optimize VISITATION: Campaign One-time Spend Scenarios Scenario A A: $5,200 Baseline + A: $64,300 Scenario B B: $11,000 Baseline + B: $70,300 ●Increase to existing International Media Plan ●Increase to existing International Media Plan Optimize VISITATION: International Media One-time Spend Scenarios Scenario A: $27,700 Specific items not in baseline budget Scenario B: $69,700 Specific items not in baseline budget ●IPW Participation: CTO Co-Op ●Group FAM Client Event ●CTO Mexico Mission November ○Mexico City FAM: Content Creator Rally ●VR International Grand Fam Hosting April ●IPW Participation: Discover Vail Booth ●Group FAM Client Event ●CTO Mexico Mission November ○Mexico City FAM: Content Creator Rally ●VR International Grand Fam ●CTO London Trade/Media Luncheon ●Increased Mexico PR Management Optimize VISITATION: Increase International One-time Spend Scenarios Baseline Strategy (No Use of Reserves) ●Leverage Litmus for continued growth in email hyper-personalization ●Enhance AI-based content versioning within email ●Grow depth of customer database through enhanced data capture and improved 3rd party matching, including exploration of financial and transactional metrics ●Grow highly-engaged newsletter signup audience on web and in-market 22% 25% Loyalty budget and % of total Build LOYALTY: CRM Build LOYALTY: Content Baseline Strategy (No Use of Reserves) ●Grow share of voice through new and higher-ranking keywords: 45% increase in Page 1 keywords YoY ●Continue to populate DiscoverVail.com with high-quality content ○Organic traffic drives the most engaged (53%) and valuable users to the website, with visitors spending 82% more time on the site than other channels. ●Support email program with data-driven content decisions ●Future-proof website by executing SEO fundamentals and AI SEO trends 22% 25% 50%52% Build LOYALTY One-time Spend Scenarios Scenario A $133,311 Specific items not in baseline budget Scenario B $198,096 Specific items not in baseline budget ●Email ADA Compliance ●CRM/Analytics + Ripe ●Website Personalization ●Rebrand implementation into website ●AI Facilitated Workshop and quarterly trends & tests ●Email ADA Compliance ●Launch TikTok ●CRM/Analytics + Ripe ●Website Personalization ●Rebrand implementation into website ●AI Facilitated Workshop and quarterly trends & tests ●Increase Influencer Program Lead STEWARDSHIP 1% 7% Baseline Strategy (No Use of Reserves) ●Launch new brand to build Vail's competitive advantage ●Build brand campaign around true attributes and drive traveler intent. ●Sustain in-market stewardship campaign Scenario A $0 $20,000 in baseline budget Scenario B B: $109,000 Baseline + B: $129,000 ●NA ●Marketing campaign effectiveness study ●Enhance in-resort experiential campaign elements of stewardship campaign Lead STEWARDSHIP One-time Spend Scenarios Baseline Strategy (No Use of Reserves) ●Build a 2025 brand campaign around true attributes and drive traveler intent. ●Strategy, production and launch of new brand in Vail and in key markets BRAND Positioning 17% 21% BRAND Positioning One-time Spend Scenarios Scenario A $100,000 Baseline + A: $231,000 Scenario B $110,000 Baseline + B: $241,000 ●Amplify new brand launch with key market activation ●Amplify new brand launch with key market activation and increased in town. Scenario A+B Overview One-time Spend Scenarios Visitation Media A: $213,789 Baseline + A: $1,926,790 B: $362,204 Baseline + B: $2,075,005 Visitation Campaign A:120,000 Baseline + A: $320,000 B: $240,000 Baseline + B: $440,000 Visitation International Media A: $5,200 Baseline + A: $64,300 B: $11,000 Baseline + B: $70,300 Visitation International A: $27,700 Not in baseline budget B: $69,700 Not in baseline budget Loyalty A: $133,311 Not in baseline budget B: $198,096 Not in baseline budget Stewardship A: $0 $20,000 in baseline budget B: $109,000 Baseline + B: $129,000 Brand A: $100,000 Baseline + A: $231,000 B: $110,000 Baseline + B: $241,000 Request of the Board Provide feedback and direction on Business Goals, Marketing Goals and which one time spend scenarios to present at the September 4 VLMDAC Special Meeting. TOWN OF VAIL AND SPECIAL EVENTS UPDATES Town of Vail Board Appreciation Night Tuesday, August 27, 6-8pm Borgen Plaza at Community Concert VLMDAC, bring a guest for our appreciation of all your hard work. Two beverages and appetizers served. RSVP to Stephanie Kauffman Skauffman@vail.gov Thank you! Upcoming Meetings: VLMDAC Board Meeting Wednesday, September 4, 2024, Virtual Special Meeting Thursday, September 19, 2024, Grand View Room VLMD 2025 Meeting to Approve Operating Plan @Town Council Meeting Tuesday, September 17, 2024, Town Council Chambers APPENDIX Detail on AI Facilitation ●Facilitated Workshop with Miles VP of AI ○Discuss and determine various components of AI guidelines based on organizational goals and risk tolerance. ○Based on a 9-point evaluation created in collaboration with Miles Partnership, Group NAO and Steinhoff Law. ○Ranges from Vision Statement, IP and Continuous Adaptation. ●Quarterly Trends & Tests ○What’s trending in DMO and travel marketing? Implement and measure a new process, strategy or tactic. ●Budget ○Facilitated Workshop: $6,000 ○Quarterly Guidance: $2,500 per quarter Not Included in Budget But Considered: Brand USA Co-Ops ●Proven strategy, tactics and partner while expanding presence in Mexico and beginning to develop the UK ●Programmatic Media Opportunities: Access Brand USA’s first-party data to reach targeted audiences in top international markets and drive travel intent. ●Optimized Audience Campaigns: Leverage multiple touchpoints to influence travelers planning trips using Brand USA’s pre-qualified audiences in MX and UK markets. Channel Cost Deliverables Native (MX, UK)$16,000 2.0M Impressions Display (MX, UK)$16,000 2.2M Impressions Optimized Audience (MX, UK)$58,200 - 1 inclusion in each interactive travel guide - Carousel ad unit pushing to content (5M impressions) - Native ad unit (1.1M impressions) - Expedia media strategy (1M impressions)