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December 19 VLMDAC Meeting 2024 PresentationVLMDAC Monthly Meeting December 19, 2024 Agenda 1.Minutes Approval (1 minute) Action Requested of Board: Approve minutes 2.Monthly Financial Report (5 minutes), Jake Shipe, Town of Vail 3.Destination & Media Measurement (30 minutes) Zeek Coleman, Vice President, Tourism Economics, Miles Partnership 4.Strategic Planning Draft (45 minutes) Liz Gladitsch and Board i.Action Requested of Board: Feedback 5.2024 Savings and 2025 Budget (20 minute) Liz Gladitsch and Board 6.Guest Loyalty Tracking (15 minutes) Bob Brown, Brown Analytics 7.2024 Summer Photoshoot (10 minutes) 8.Other Business 9.Public Comment 10.Adjournment APPROVAL OF MINUTES MONTHLY FINANCIAL REPORT DESTINATION & MEDIA MEASUREMENTS Website & Media Impact Calculators  2024 For Optimization & Advocacy Product Design Economics The above leadership is backed by a global Tourism Economics team of 85+ Data Science Interdisciplinary Approach 8 A Real Struggle 1 DMO Challenges 9 Funding Challenge: Maintaining and growing funding faces widespread opposition Hurdles •Assumption that destination marketing is unnecessary •The belief that dollars can be better utilized elsewhere •Elected officials are constantly changing 10 Increased Accountability: Leading to scrutiny of DMOs and leadership Hurdles •Growing demand for transparency •Increased emphasis on measurable outcomes •Concerns over the appropriateness of executive compensation 11 No Cash Register: DMOs struggle to quantify their impacts Hurdles •DMOs market a difficult-to-track product •Beyond campaign metrics, performance is hard to quantify •Transactions take place at hotels, restaurants, attractions and other local businesses 12 How We Help 2 Built On Decades of Expertise 13 Standard-Setting Analysis 40+ Years of Experience 650+ Staff, 20 Global Offices Over 4,000 Clients Worldwide Unique Macroeconomic Modelling Most Accurate Global Economic Forecasts GL O B A L R E C O G N I T I O N Best Overall Forecaster Based on six key macroeconomic indicators: GDP, Fiscal Balance, Inflation, Interest Rate, Exchange Rate and Current Account for 100+ countries 2023 2022 2021 2020 2019 5-year total Oxford Economics 101 115 165 100 111 605 EIU 132 131 119 118 90 582 Fitch Solutions 124 137 115 56 89 486 Capital Economics 64 73 50 85 98 368 Citigroup Global Mkts 58 92 67 83 69 408 JPMorgan 76 82 64 64 43 308 Moody's Analytics 87 68 42 40 43 221 HSBC 68 52 29 49 49 236 Euromonitor International 59 40 56 41 45 239 Standard Chartered 44 40 50 32 41 200 15 Trusted by Clients Worldwide 35 States 500 US and Canada Destinations 30 Countries 15 Industry Trade Associations Client Reach 16 3 The Solution Marketing Attribution for DMOs 17 We link location data to media and website exposures from your ad campaigns… TH E S O L U T I O N Simply put… … to analyze how advertising impacts visitation and delivers spending, taxes and jobs for your community. 18 Mobile devices are tracked, allowing us to monitor visitor movements TH E S O L U T I O N Device Origin & Travel Patterns Recreation Activities Analyze for Research Frequented Restaurants 19 All of these devices are linked to the same household IP address TH E S O L U T I O N IP ADDRESS | 192.168.0.0.468 Pu b l i c P l a c e s E x c l u d e d f r o m Tr a c k i n g 20 Technology allows us to track who visits your website and who sees your ads TH E S O L U T I O N 21 …and then shows up in your destination ... TH E S O L U T I O N 25 Built on over 40 years of globally trusted expertise TH E S O L U T I O N Bringing in the Economic Impact 26 It starts with finding influenced visitor spend … TH E S O L U T I O N Visitor spending calculated based on hard data The daily spending model is based on visitor spending patterns across TE economic impact clients, with detailed analysis of hotel ADR and hospitality sector operating costs. 1 Day and overnight measures (with length of stay) are based on mobile device data for each destination. Influence d day visitors Daily spend per day visitor Daily spend per overnigh t visitor Influence d overnigh t visitors Avg. length of stay = INFLUENCED VISITOR SPENDING 27 To then calculate your total economic impact TH E S O L U T I O N Induced Direct Indirect Visitor spending translates to economic impacts covering business sales, jobs, wages and taxes. Methodology: We use an individualized economic model that reflects each destination’s industry structure and tax rates. IMPLAN is based on BEA data and is an industry standard for impact modeling. 2 The model quantifies total economic impacts Transactions between a travel business and a visitor The local supply chain activity generated by travel businesses The local spending of employees who earn income from visitor spending 3 28 TH E S O L U T I O N 2.7 M CAPTURED IMPRESSIONS 1.0 % INFLUENCED RATE 27 K ESTIMATED VISITORS $29.9 M TOTAL ECONOMIC IMAPCT $2.3 M TOTAL STATE & LOCAL TAXES Let’s break down the journey … How do we get here? 29 TH E S O L U T I O N 2.7 M CAPTURED IMPRESSIONS 1.0 % INFLUENCED RATE 27 K ESTIMATED VISITORS $29.9 M TOTAL ECONOMIC IMAPCT $2.3 M TOTAL STATE & LOCAL TAXES Let’s break down the journey … How do we get here? 30 TH E S O L U T I O N Going deeper, we also compare : Visitation rate of those who saw your ad Visitation rate of those who did not see your ad …to calculate the influenced visitor rate . 31 TH E S O L U T I O N Reveal the true ‘influence’ of your marketing Those who arrived in your destination 32 TH E S O L U T I O N Reveal the true ‘influence’ of your marketing Those who saw your ad and arrived in your destination 33 TH E S O L U T I O N Reveal the true ‘influence’ of your marketing Those who saw your ad, arrived in your destination and would not have come without your advertising influence. 34 35 TH E S O L U T I O N Content Types and Tactics Best Time to Market DMA or Source Market Opportunity Markets Media Partner Now: You Can Evaluate Media and Website Effectiveness Dynamically Over Time ME A S U R E B Y 36 TH E S O L U T I O N Advocate & Illustrate DMO Impact Attribution Solutions •Establish DMO value with the proven economic impact of campaigns •Showcase cross-visitation and spending in communities •Easily share insights with stakeholders •Deliver economic data specific to visitor segments 37 Questions to Ask •Background and expertise of the team? •Does it demonstrate the full value of the campaign? •Does it demonstrate true economic impact?  Is the methodology defensible? •Methodology: Can it be explained? •Control groups: How are they constructed? •Incremental visitation? What is the methodology used to deliver that number? •Is it a cookie-dependent solution? •Precision: Pinpoint data (lat./long from GPS data) to measure visitation, or approx. data (+/- 3 sq. mi.)? •Can you measure down to the POI? •What media is trackable?  •What are the impression minimums and why are they needed? •Do impression minimums change based on campaign type? •Is there flexible report delivery (exportable tables, PPT/PDF reports)? A dynamic dashboard? •What actionable insights can you take from the data? •What is the roadmap for continued development? Thank You STRATEGIC PLANNING DISCUSSION -December 19 VLMDAC Board Meeting ○Review Discover Vail Strategic Plan draft ○Review objectives aligned with 2025 Operating Plan ○Discuss Town Council Jan. 21 meeting -Jan 6 Packet Published for Jan 9 meeting for review -Jan 9 VLMDAC Special Board Meeting -Review and approve or approved with changes, the Town Council on Jan. 21 -January 21 VLMD/Town Council Meeting -Present Strategic Plan and Aligned 2025 Operating Plan -January - February -Develop Action Plan for each Strategic Objective Timeline DISCOVER VAIL STATEGIC PLANEXECUTIVE SUMMARY DISCOVER VAIL STRATEGIC PLANDISCOVER VAILSTRATEGIC PLAN2025 - 2027 DRAFT DISCOVER VAIL STATEGIC PLAN OVERVIEW About Discover Vail Roles and Responsibilities Budget Goals and Objectives 2025 Operating Plan Alignment Alignment to Town Council DISCOVER VAIL STATEGIC PLAN ABOUT DISCOVER VAIL The purview of the VLMDAC was recently expanded by resolution to provide strategic direction for the activities of the town’s tourism and economic development department, to include: Organization, promotion, marketing, and management of public events Activities in support of business recruitment, management, and development Coordinating tourism promotion activities Facilitating and enhancing visitor experiences DISCOVER VAIL STRATEGIC PLAN DISCOVER VAIL STATEGIC PLAN TEAM DISCOVER VAIL Added here EXECUTIVE SUMMARY DISCOVER VAIL STRATEGIC PLAN VAIL LOCAL MARKETING DISTRICTADVISORY COUNCIL Name Company Board Position Added Here DISCOVER VAIL STATEGIC PLAN 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. 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. EXECUTIVE SUMMARY DISCOVER VAIL STRATEGIC PLAN DISCOVER VAIL STATEGIC PLAN Championing the Vail Experience, driving economic growth, community vitality and responsible tourism. DMOPURPOSE STATEMENTDRAFT DMO PURPOSE STATEMENT DISCOVER VAIL STRATEGIC PLAN DISCOVER VAIL STATEGIC PLAN DEFININGGOALS Using the results of the survey data and outcome of the strategic session, three key areas were identifi ed that will guide the organization’s strategic future. Each key areas includes a defi nition, goals and tactics to guide the creation of a 3-year action plan. DEFINING GOALS DISCOVER VAIL STATEGIC PLAN ETHOS COMMUNITY VITALITY THE VAILEXPERIENCE DISCOVER VAIL STATEGIC PLAN DISCOVER VAIL STATEGIC PLAN A. Build an effective and nimble structure to expand trust and confi dence and advance the mission of the DMO. A1. Attract and enroll experienced and passionate professionals for DMO board. A2. Defi ne board structure, roles, and responsibilities (e.g., Deploy advisors on an ad hoc basis to support key initiatives). A3. Formulate and successfully execute and report DMO goals and results in the context of a 3-year strategic plan. A4. Maintain a fi scally responsible budget policy that is aligned with Town Council strategic objectives. B. Introduce, through communication, the purpose and benefi ts of the DMO. . B1. Create the DMO’s marketing and communications plan to share with internal and external stakeholders. B2. Create a model to quantify benefi ts of the DMO. ETHOS The Create the culture that guides core character, values, and strategic direction for Vail. GOALS: ETHOS VAIL EXPERIENCE COMMUNITY VITALITY DISCOVER VAIL STATEGIC PLAN C. Elevate the Vail Experience. C1. Develop a strategic event and activation strategy. C2. Coordinate and optimize a seamless guest experience plan. C3. Build a community-wide customer service culture. D. Increase awareness of year-round destination. D1. Establish a PR strategy tied to signature experiences. D2. Develop Best In Class content to leverage non-peak messaging. THE VAIL EXPERIENCE Influence, curate, and deliver authentic and welcoming year-round moments that create loyalty and nurtures a deep connection to Vail. GOALS: THE VAIL EXPERIENCE ETHOS COMMUNITY VITALITY DISCOVER VAIL STATEGIC PLAN COMMUNITYVITALITY Foster an economically thriving and engaged “Vail for Everyone” GOALS: COMMUNITY VITALITY VAIL EXPERIENCE ETHOS F. Increase and cultivate local business engagement. F1. Establish new guest service training program. F2. Create effective business onboarding & retention program. F3. Initiate buy-in from Vail Resorts & Vail Health on development initiatives. F4. Package & communicate resources for entrepreneurs. G. Identify needed infrastructure improvements and share with Town leadership. G1. Study possibilities for cultural/community/nature centers. G2. Identify needed amenities to improve guest/local experience. G3. Observe successes and learn from other communities/destinations. H. Develop a ‘Vail Experience for Everyone. H1. Create journey-maps of key audiences and define needs/opportunities. H2. Define the Vail Experience to better respond to younger demographics. H3. Create a stewardship campaign to encourage responsible behavior and protect our natural and built environment. DISCOVER VAIL STATEGIC PLAN 2025 OPERATING PLAN DISCOVER VAIL STRATEGIC PLAN The board took the 3-year strategic plan as written and identified objectives that are already contemplated and addressed within the 2025 operating plan. All objectives will be built into action plans as part of the 3-year strategic plan. DISCOVER VAIL STATEGIC PLAN A. Build an effective and nimble structure to expand trust and confi dence and advance the mission of the DMO. ▶A1. Attract and enroll experienced and passionate professionals for DMO board. ▶A2. Defi ne board structure, roles, and responsibilities (e.g., Deploy advisors on an ad hoc basis to support key initiatives). ▶A3. Formulate and successfully execute and report DMO goals and results in the context of a 3-year strategic plan. ▶ A4. Maintain a fi scally responsible budget policy that is aligned with Town Council strategic objectives. B. Introduce, through communication, the purpose and benefi ts of the DMO. . B1. Create the DMO’s marketing and communications plan to share with internal and external stakeholders. B2. Create a model to quantify benefi ts of the DMO. ALIGNMENT TO 2025 OPERATING PLAN ETHOS ▶ INCORPORATING IN 2025 Objectives within the 2025 operating plan. Objectives to be built into the 3-year strategic plan. GOALS: ETHOS + 2025 OPERATING PLAN DISCOVER VAIL STATEGIC PLAN C. Elevate the Vail Experience. ▶ C1. Develop a strategic event and activation strategy. C2. Coordinate and optimize a seamless guest experience plan. C3. Build a community-wide customer service culture. D. Increase awareness of year-round destination. ▶ D1. Establish a PR strategy tied to signature experiences. ▶ D2. Develop Best In Class content to leverage non-peak messaging. ALIGNMENT TO 2025 OPERATING PLAN THE VAIL EXPERIENCE ▶ INCORPORATING IN 2025 Objectives within the 2025 operating plan. Objectives to be built into the 3-year strategic plan. GOALS: THE VAIL EXPERIENCE + 2025 OPERATING PLAN DISCOVER VAIL STATEGIC PLAN F. Increase and cultivate local business engagement. F1. Establish a new guest service training program. F2. Create effective business onboarding & retention program. F3. Initiate buy-in from Vail Resorts & Vail Health on development initiatives. F4. Package & communicate resources for entrepreneurs. G. Identify needed infrastructure improvements and share with Town leadership. G1. Study possibilities for cultural/community/nature centers. ▶ G2. Identify needed amenities to improve guest/local experience. ▶ G3. Observe successes and learn from other communities/destinations. H. Develop a ‘Vail Experience for Everyone. ▶ H1. Create journey-maps of key audiences and define needs/opportunities. ▶ H2. Define the Vail Experience to better respond to younger demographics. ▶ H3. Create a stewardship campaign to encourage responsible behavior and protect our natural and built environment. ALIGNMENT TO 2025 OPERATING PLAN COMMUNITY VITALITY ▶ INCORPORATING IN 2025 Objectives within the 2025 operating plan. Objectives to be built into the 3-year strategic plan. GOALS: COMMUNITY VITALITY + 2025 OPERATING PLAN DISCOVER VAIL STATEGIC PLAN COMMUNITYVITALITY GOALS: ♥ Increase and cultivate local business engagement. ▲ Advance and communicate needed infrastructure improvements. ★ ♦ Develop a ‘Vail Experience for Everyone. THE VAIL EXPERIENCE GOALS: ★ Elevate the Vail Experience. ★ Increase awareness of year-round destination. ETHOS GOALS: ♥ Build an effective and nimble structure to expand trust and confidence and advance the mission of the DMO. ★ ♥ ♦ ▲ Introduce, through communication, the purpose and benefits of the DMO. GOALS ALIGNMENT TO TOWN COUNCIL STRATEGIC PLAN ★ Provide an Authentic Vail Experience: Goals and Metrics for excellent service, Unique Events, Inviting for all ages ♥ Support our Workforce, Leadership Programs ♦ Environmental Sustainability ▲ Create a Strong Community and Create Affordable Housing Opportunities ALIGNMENT TO TOWN COUNCIL STRATEGIC PLAN DISCOVER VAIL STATEGIC PLAN COMMUNITYVITALITY Foster an economically thriving and engaged “Vail for Everyone” GOALS: Increase and cultivate local business engagement. Advance and communicate needed infrastructure improvements. Develop a ‘Vail Experience for Everyone. THE VAIL EXPERIENCE Influence, curate, and deliver authentic and welcoming year-round moments that create loyalty and nurtures a deep connection to Vail. GOALS: Elevate the Vail Experience. Increase awareness of year-round destination. ETHOS Create the culture that guides core character, values, and strategic direction for Vail. GOALS: Build an effective and nimble structure to expand trust and confidence and advance the mission of the DMO. Introduce, through communication, the purpose and benefits of the DMO. NEXT STEPS: ACTION PLAN ACTION PLAN In the coming months, all objectives will be built into action plans as part of the 3-year strategic plan. DISCOVER VAIL STATEGIC PLANEXECUTIVE SUMMARY DISCOVER VAIL STRATEGIC PLAN THANK YOU 2024 & 2025 BUDGET SAVINGS These 2024 estimated savings will increase the 2025 fund balance by $495,000+ Options for 2025 Estimated Savings: -Shift to fund balance -Leave operating plan as it is and any access will go into the fund balance if not pursued. Any shift will be brought to Town Council as a supplemental shift. Estimated 2024 & 2025 Savings 2024 Estimated Savings Vail Brand Launch $100,000 Vendor Expenses $150,000+ Contingency $245,000 Photo / Video Capture $150,000 2025 Possible Savings Brand Launch $260,000 IPW Stand Alone Booth $25,000 LOYALTY/REPEAT VISITATION TRACKING Return Rate Methodology Evaluated 6 different methodologies, varying # of seasons for return and Summer or Summer + Winter 1 Season Return Rate Methodology Evaluated 6 different methodologies, varying # of seasons for return and Summer or Summer + Winter 2 Seasons Return Rate Methodology Evaluated 6 different methodologies, varying # of seasons for return and Summer or Summer + Winter 3 Seasons Potential Return Rate Metrics The table below compares the 6 different measures of return rate/loyalty. We recommend using the 2 Season Summer or Winter metric (1) to align with visit patterns Return Rate by Segment Return rates vary significantly by geography (1) and Ski Interest (2) (though Ski Interest is a small sample) Return Rate by Segment As Net Worth increases up to $750k, return rate increases (1) Interest in Sustainability correlates with a slightly higher return rate (2) Return Rate by Segment Cultural Event Interest and Presence of Children do not correlate with return rate Engagement of Returning vs. Lapsed Guests For all Geo segments, returning guests engage more with emails than lapsed guests. The lift is highest for Fly and lowest for Local Summer vs. Winter Visitors Most guests have visited only 1 season, with 60% winter and 40% summer (1) As # of seasons increases, guests are more likely to visit both summer and winter (2) Summer vs. Winter Visitors by Geo The same general visit patterns hold true across geos, with Local skewing slightly more toward multi-season and winter+summer visitation than other geos (1) Return Rate of Summer vs. Winter Visitors Return rate is significantly higher for a guest that visits both winter and summer (1) Summer only return rate is slightly higher than winter only (2) ADRIAN AWARD Discover Vail Awarded Adrian Award Bronze Miles submitted the Discover Vail Multi-Channel Content Strategy on our behalf for the category Content Marketing. See packet materials for full submission. HSMAI Adrian has released this year’s winners, and we are thrilled to announce that Discover Vail Multi-Channel Content Strategy won Bronze. See packet materials for full submission. OTHER BUSINESS & PUBLIC COMMENT Thank you! Upcoming Meetings: VLMDAC Special Board Meeting Thursday, January 9, 2024, Virtual VLMDAC Board Meeting Thursday, January 16, 2024, Grand View Room VLMD / VLMDAC Joint Meeting Tuesday, January 21, Town Council Chambers