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HomeMy WebLinkAbout06. Discover Vail Strategic Thinking and Planning Nov 11 DRAFTVersion 1.6 Nov 11, 2024 DRAFT 2024 Strategic Thinking Process www.leadershipoutfitters.com Executive Summary Discover Vail collaborated with Leadership Outfitters on a strategic thinking process. The process began with data collection which is intended to provide feedback that will enhance and inform future ideation. The planning process includes brainstorming around change catalysts and the SOAR (strengths, opportunities, aspirations, and results) framework. This dialog will result in the refinement of existing strategy areas as well as the identification of any emerging strategy areas. Goals and tactics to accomplish those goals will be identified in the next phase of strategic thinking. This report is chronological, listing the data collection first, then brainstorming, followed by the plan document. Data Collection In September 2024, 27 community stakeholders were contacted via email invitation to respond to a quantitative/qualitative blended survey with the intent of capturing advance feedback for the organization’s strategic thinking process. Additional responses were sought by sending a direct link to a variety of stakeholders. The responses under each qualitative question were randomized to ensure greater anonymity. DMO Purpose Statement Brainstorm The Vail Local Marketing District (VLMD) Advisory Council and Town of Vail Tourism & Economic Development Team brainstormed four (4) options to consider which are listed below. The first one listed is a tentative initial version the group is considering. In addition, the group identified the following words that resonated in the brainstorm which were: champion, support, promote, responsible tourism, celebrate, heritage, authentic, and connection. 1. Championing the Vail Experience driving economic growth, community vitality (connection), and responsible tourism. 2. To champion the Vail Experience and to support and promote community, economic vitality, and responsible tourism. 3. Celebrate (Market) Vail’s rich heritage by fostering authentic relationships between visitors & locals creating unforgettable experiences that drive tourism & economic growth. 4. Enhance the Vail Experience by delivering connection, vibrancy, and economic vitality. Additional DMO Board Member Comments Three (3) DMO Board Members were not able to participate on Oct 10-11. The individuals were contacted in advance or after Oct 10-11 for input and feedback Their comments and observations have been integrated with the document along with additional observations included as an addendum with the document. Change Catalysts Change catalyst categories are defined as: society/culture; regulations/legislative; technology/ virtual; and economy/financial. Groups brainstorm in all the areas at different times. The bolded areas represent urgent/top priorities for that section. Society/Culture a) Shift to younger demo visiting Vail; change in desired experiences; what new gens are looking for? b) Decline in skiers – is this due to the cost? Accessibility? c) Increase travel for international d) Differentiation for Vail; unique experiences; increase food diversity events e) Pushback to tourism from local residents f) Visitors less likely to visit same place twice g) Transient workforce (J-1 visas) h) New more nightlife in Vail; 24/7 action; different diverse nightlife i) Political polarization j) Locals experience builds authentic experience for visitors k) Multi-generational travel l) Falling birthrate m) Diversity n) Mexico! International guests o) Vail community shifting down valley p) People who vote in Vail don’t always live in Vail q) Need fun, funky, authentic; Great Race! 4 at 4! r) Vail made the traditions; others copied now we don’t have it s) Create uniqueness at events t) Better partner with Town u) What is the Product?; v) People are coming to the Mountain for more than skiing Economy/Financial a) Growing disparity between guests & locals (income & financial) b) Budgeting: Big projects upcoming but not going to happen without tax alternative or additional revenue c) Changing demographics (short & long term); demographic shifts d) Increasing cost of sport & alternative options e) Flat skier growth (new to sport) f) Who is our next guest? g) Changing consumer behaviors – experiential, virtual, stuff, goods h) If a fire, then what? No snow? i) Overall investment j) Housing k) Seasonality & climate l) Space to expand m) 1.4% tax is limiting n) $4M for events enough? Guest exp o) Working locals and homeowners could be considered more of a plus Legislative/Regulations a) HB 1117 (use of VLMD funds for housing etc.) b) Potential increase in lodging tax c) Employee housing EHU requirements; workforce d) Change of TOV Council; needs more institutional knowledge; trust e) Integrating community needs & external marketing f) New development/business opt g) Town Council transition every 2 years h) Water/utility regulations i) Travel/work VISA regulations j) Customs for airport travel k) CAST legislation (2nd home) vacancy tax l) Mountain Rail Coalition & transportation m) Polarizing political climate n) Short term rentals – regulation o) Changing voters in Vail (younger, deed restricted homeowners) p) I-70; commercial vehicles, lanes, etc. q) Immigration & VISA’s r) Post pandemic revenue has continued to decrease s) Workforce housing Digital/Virtual a) AI b) Regulation (cookies, privacy, anti trust); Data capture (in resort data capture, data privacy taken away, guest personalization) c) Guest experience; expectation; generational shifts; augmented reality d) Too much information; tech moving fast; speed of disinformation e) Automation f) Personalization g) Algorithm h) Echo chambers i) Virtual reality j) Digital burnout/print resurgence? k) Younger demographic not traditional social/media l) Virtual travel planning m) Shorter booking windows (plan ahead because more difficult) n) Legislative/Regulatory – Post pandemic revenue has continued to decrease; Workforce housing o) Using AI to supplement the human experience p) Primary focus of AI is to power search q) Destination first/lodging is intent for a trip search SOAR Framework Groups continue their strategic discussions, identifying issues under the four elements of the SOAR Framework – Strengths, Opportunities, Aspirations, and Results as they pertained to the organization. The bolded areas represent urgent/top priorities for that section. Strengths a) Brand positioning work/framework b) DMO structure c) Advisory Council Professionals d) Incredible product/location e) Flexible – nimble so we can pivot f) Foundational blocks – website, CRM/data, social g) Partners/vendors h) Connection to business community i) Town council alignment j) Community confidence & trust k) Great team l) Great assets m) Proximity to HUB (air) n) Vail Resorts partnership o) Vail is internationally recognized p) Economic strength q) Relationship w/VRI Mountain Ops r) History/legacy s) VAIL t) Pedestrian village u) Accessibility v) Flexibility w) Articulated brand strategy x) Who we are in collaboration with Vail Mountain y) Summer Vail/Best Life z) Concerns to be more nimble with new structure aa) Impact on product it creates Opportunities a) Brand – interplay & leverage with Vail Resorts; build on brand framework; leverage partnership b) Revitalization of land use (Dobson, West Vail, Lionshead) c) Community buy-in & engagement & customer experience d) Tax revenue from visitors; lodging tax increase e) Infrastructure (separate villages, etc) f) Cultural center opportunity; city wide g) Expand global awareness of Vail h) Group sales!!! i) Int’l Terminal in Eagle j) Airport/private jet center k) 600 new employee units l) Dynamic business community m) World class cultural center n) New base area/partnership o) Reimagining parking structures p) Changing travel patterns q) Build visitation from new demographics r) Working remotely s) Building on other opportunities t) Template for success u) Are we fully optimizing our spend? v) Always optimizing the spending and budgeting whatever we do Aspirations a) Showstopper events b) Excellent customer service/welcoming – being known for being welcoming; known for #1 in ….” (#1 net promoter) c) Efficient communication/synergy with business community year-round; fill gaps in occupancy, etc. d) “Kick Ass -ed-ness” throughout all demographics/generations e) Town of Vail/Discover Vail – evolve and grow beyond/outside of politics f) The most nimble DMO in the country g) Unique & synergistic relationship with ski company. h) Clear-concise brand i) Premier destination for all seasons j) DMO that aspires to be; leaders in the mountain communities k) Supporting an incredible community & resort l) To become one – Vail + Vail Valley m) Conceptualize and build the brand experience Results a) Visitor arrivals (by region) b) Group business c) Brand lift d) Community surveys/Guest surveys e) Visitor sentiment + net promotor f) International market mix g) Employee satisfaction h) New promoter i) Occupancy/rate (Rev PAR ) j) Destination vs. Day Trippers k) Business sales/lodging tax l) Consumer/local confidence m) Drive vs. Air n) Event impact – ROI o) Accolades p) Event sponsorship impact/strategic alliances Key Strategic Issues, Goals, and Tactics Using the results of the survey data and the brainstorming recorded above, the group will identify key areas that will guide the organization’s strategic future. Each key area includes a definition for further clarity. Goals and tactics are written to respond to each key area. Each goal is coded with the following letters to clarify resources needed and alignment with the existing Town of Vail Council Strategic Plan. The plan resource codes are: • O = Can easily adjust to fit into existing budget/operating plan. • I = Fits within existing budget/operating plan. • TC = Direct alignment with Town Council Strategic Plan. Ethos The foundation that guides core character, values, and strategic direction to Vail. 1. Build an effective and nimble structure to expand trust and confidence and advance the mission of the DMO. a) Continue to attract and enroll experienced and passionate professionals for DMO board. Plan resource codes: O a. Lead: Timeline: Ongoing/Annual b) Define board structure, roles, + responsibilities (e.g. deploy ad hoc; advisors within the board). Plan resource codes: O a. Lead: Timeline: Q2 2025 c) Formulate and successfully execute and report/present DMO goals and results (e.g. seasonal/periodic presentations; validate strategic alignment with Town Council). Plan resource codes: O a. Lead: Timeline: Q2 2025 d) Maintain a fiscally responsible budget policy aligned with Town Council (e.g. reserve policy). Plan resource codes: O a. Lead: Timeline: 2. Introduce, through communication, the purpose and benefits of the DMO. a) Create a marketing and communications plan for external stakeholders (e.g. monthly newsletter, 2X a year community meeting). Plan resource codes: O a. Lead: Timeline: b) Create a model to quantify benefits of the DMO (e.g. data). Plan resource codes: I a. Lead: Timeline: c) Incorporate tourism inquiries into current surveys (e.g. community survey, business survey). Plan resource codes: I a. Lead: Timeline: Vail Experience Influence, curate, and deliver authentic and welcoming year-round moments that create loyalty and a deep connection to Vail. 1. Elevate the Vail Experience. a) Develop a strategic event and activation strategy. Plan resource codes: TC, I a. Lead: Timeline: b) Coordinate and optimize a seamless guest experience plan. Plan resource codes: TC a. Lead: Timeline: c) Build a community wide customer service culture. Plan resource codes: TC a. Lead: Timeline: 2. Increase awareness of year-round destination. a) Establish a PR strategy tied to signature experiences (e.g. create pop up events in market). Plan resource codes: I a. Lead: Timeline: b) Develop Best In Class content to leverage non peak messaging. Plan resource codes: I a. Lead: Timeline: 3. Increase loyalty and connection. a) Personalize our marketing to attract repeat visualization through experience story telling. Plan resource codes: I a. Lead: Timeline: b) Build a strategy with lodging and community partners to recognize and reward repeat/loyal visitors. Plan resource codes: I a. Lead: Timeline: c) Enhance our CRM capabilities. Plan resource codes: I a. Lead: Timeline: Community Vitality Fostering an economically and economically thriving and engaged “Vail for Everyone” 1. Increase and cultivate local business engagement. a) Establish new PRIMA Vail/seamless. Plan resource codes: TC a) Lead: Timeline: b) Create effective business onboarding & retention program. Plan resource codes: TC a) Lead: Timeline: c) Initiate buy-in from Vail Resorts & Vail Health on our development initiatives. Plan resource codes: TC a) Lead: Timeline: d) Package & communicate available resources for entrepreneurs. Plan resource codes: TC b) Lead: Timeline: 2. Advance and communicate needed infrastructure improvements. a) Study possibilities for a cultural center; community center; recreation center; nature center. Plan resource codes: O, TC a. Lead: Timeline: b) Identify amenities that don’t exist/are needed that improve guest & locals experience (e.g. air, train, water stations). Plan resource codes: O, TC a. Lead: Timeline: c) Identify communities, resorts, destinations to observe successes and to learn. Plan resource codes: O, TC a. Lead: Timeline: 3. Develop a “Vail Experience for Everyone” a) Defining the Vail Experience to better match younger/newer demo (e.g. amp event, signature event, events at Solaris, AEG). Plan resource codes: TC a. Lead: Timeline: b) Create “stewardship” campaign that teaches guests how to behave like a local (e.g. respect environment; respect employees). Plan resource codes: O, TC a. Lead: Timeline: c) Create journey-maps of our key audiences including locals & define needs/opportunities (e.g. define needs of local young staff). Plan resource codes: O, TC a. Lead: Timeline: Sample Workplan Format/Template The following table is a sample workplan format/tempate to assist in moving forward building tactics and an action plan for each tactic with leads and due dates. Strategic Issue: Ethos Goal: Build an effective and nimble structure … Tactics Actions Champion/Lead Timeframe a. Continue to attract professional DMO Board 1) Mia meets with TC to educate. Mia 10/15 to 12/15 2) Outreach to ideal members. Mia, ES, Theron 10/15 – 12/15 3) b. 1) 2) 3) c. 1) 2) 3) NEXT STEPS: The next phase will be to build out the action to execution plan which will identify action steps, champions, measures, and deliverable dates. ADDENDUM Additional Comments from those not able to attend General Observations • The phrase “responsible tourism” (Mission/Vision Statement Reference) is loaded with local discontent. It also assumes there is “irresponsible tourism” • Events should not be coupled to a demographic and should be multi-generational • Business development and understanding the audience – events are a product • How do we encourage the creation of entrepreneurs for a “kick ass” event? • We don’t need more money. We need to target marketing dollars for business development (e.g. rent subsidies for new business in Vail). Additional Train Whistle Comments • Society/Culture – Values based; I have owned my bars for 9 and 6 years now.. when I talk about them down valley, I always hear locals (down valley locals) saying “Oh I never go to Vail anymore.” This is not good. If we can’t attract people who live 15 minutes away, what are we doing to those who live thousands of miles away? Main reasons I believe to be: parking, competitive restaurants/culture throughout valley now & reputation of Vail being too crazy/a zoo. Young affluent travelers are who are spending the big bucks now. We just learned this at last meeting and we have nothing for them in Vail. At least not compared to Aspen, Jackson, etc in terms of nightlife or events or culture. • Economic/Financial – Election uncertainty; Measure against comp set; Summer Breck (OCC) down 18%; Who the heck knows. But I do know that we are incredibly expensive. And I don’t believe we always deliver the value the guest deserves. Our restaurants are B+ at best, our nightlife is a C, our events are a B, our parking is a C, our mountain is an A, our arts & culture for old people are an A. For young people it’s getting better but not A yet. This summer has showed that the customer will fight back if pricing gets out of hand but with lodging controlling rates and thus how many people come here, what do retail, restaurants, other small businesses do with less volume and only a certain kind of guest? This relates back to down valley locals not even wanting to come here. We have to be aligned and work together which I think the DMO can do. • Legislative/Regulatory – STR legislation (local, not CO); Town code changing to increase vibrancy (in council strategic plan) could be huge here. Noise, public drinking areas, etc. As for others, working with state representatives because what may work in Denver will most likely not work up here in a resort community. • Digital/Virtual – Harnessing AI; This is not my world so I don’t really know. I do think our marketing videos are a little Disney-esque. Let’s keep it real, just like Vail. I also believe there will be a giant shift soon AWAY from social media/phones/etc, its all over the news about the removal of them in schools & the effect on the brain/emotions/etc. What if we were ahead of that and leveraged our town’s innate ability to keep you entertained without those things!? Rather than deep diving ad spend on TikTok and influencers. Additional SOAR Comments • Strengths – Marketing & hospitality expertise; Representing all business interests; We are excellent for families. We are excellent at access to nature/skiing/hiking/biking. Our walkable town is like no other. • Opportunities – Aspire to be the best at guest experience all times of the year; Build repeat visitation; Art, Health & Wellness, off season booming business because of new Dobson & other facilities (TBD as to what we need). • Aspirations – Add lodging wholesale division to better represent all lodges and better target international guests; Have a year-round economy; To be a year-round awesome destination that both locals & tourists love, not phases of one vs the other. Everyone should be proud to be in Vail. • Results – Measure alignment with all key partners including Vail Resorts; Measure occupancy vs. Comp Set vs. YOY occupancy; Breck & Steamboat down this summer and us up slightly is a win – keep that momentum going; Occupancy percentages that vary by say no more than 20% from high to low season. Increased local population. Increased visitation by down valley locals.