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Home My WebLink About04. 2025 VLMD Operating Plan - Sept 17 2024DISCOVER VAIL VLMD 2025 OPERATING PLAN SEPTEMBER 17, 2024 Agenda DMO Transition Update 2024 Results ●Summer Campaign Performance to Date ●Winter Campaign Performance ●CRM (Database and Email) Data Informs 2025 Strategy ●Quantitative (ADR and Occupancy) ●Qualitative (Survey Results) ●Target Audience 2025 Operating Plan & Budget -Goals & Priorities -Plan & Budget -Action requested of VLMD DMO TRANSITION UPDATE DMO Update On Aug 20, 2024 the Town Council, sitting as the Vail Local Marketing District, passed Resolution No. 2, Series 2024, which granted the VLMDAC with strategic policy direction and oversight of the activities of the town’s Tourism and Economic Development department. ●Strategic Planning retreat October 9 - 11 to develop 3-year plan ●Transfer of special event funding to the purview of the VLMDAC ●New Brand for Vail, while recognizing DMO as Discover Vail ●Continuing pursuit of Town Council strategic planning goals around events, entrepreneurship and experience 8/20: Resolution No. 2, Series 2024 passed -Granted the VLMDAC strategic policy direction and oversight of the activities of the town’s Tourism and Economic Development department. -Transfer of special event funding to VLMD for 2025 -Continued pursuit of Town Council strategic planning goals around events, entrepreneurship and experience 10/9-11: Strategic Planning Retreat to develop 3-year plan The 2025 Operating Plan may adjust based on outcome of 3-year plan 2024 REVIEW & PRELIMINARY RESULTS Summer 2024 Campaign Source: Adara Impact, 5/15/24-8/27/24 3.5k+ Hotel Bookings 2023: 689 146k+ Hotel Searches 2023: 25k+ $2.6M+ Hotel Revenue 2023: $605k+ 50k+ Flight Searches 2023: 84k+ 3.7k+ Flight Bookings 2023: 7k+ 2024 Summer Campaign Performance Early and Late Winter Campaigns ●Focus: drive markets ●Promotion: Lodging Source: Adara Impact 2.3k+ Hotel Bookings 2023: 500 74k+ Hotel Searches 2023: 20k+ $1.5M+ Hotel Revenue 2023: $500k+ Winter Campaign Performance Building Loyalty and Driving Guest Engagement Database Goal Grow Database to 310K Currently at 273K 75% WiFi signups 344 Campaigns +163% YoY Email Performance Content Personalization Exceeding Goals YTD Results YoY as of 07/31 ●Segmentation ○Owned data: location, email/web engagement ○Informed data: family, income, interests ●ChatGPT leveraged for personalized content at scale 2.25M Sends +24% YoY 36.5k Clicks +12% YoY 0.43% Unsub.Rate -0.26 ppt YoY DATA INFORMING THE 2025 STRATEGY Vail Occupancy Normalization Winter 2023-24 Occupancy 56.5% Down 2% Average Daily Rate (ADR) $721 Up 6% May - Oct 24 Occupancy 44.5% Up 5% Average Daily Rate (ADR) $354 Down 1% Overnight Length of Stay increased from 4.1 to 4.4 NPS climbing to 74% this summer vs. 72% last summer 45% of respondents attended an event in Vail. 51% said an event was the main or major reason they visited Summer 2024 In-resort WiFi post visitor survey results through Aug. 26 Summer Visitor Survey Key Takeaways Why the Affluent Traveler Affluent = Net worth between $100k - $1M Arival, “The Affluent Travel Experiences” 75% 3 in 4 say destination activities and attractions are very influential in destination selection. Far more interested in active experiences and adventure Primary Summer Target Markets Outdoor Enthusiast (Young Affluent Traveler) Age: 25-35 HHI: $150K+ Average Stay: 3.7 nights Families Age: 30-44 HHI: $100k - $150k+ Average Stay: 2.8 nights Empty Nesters Age: 50-55+ HHI: $200k - $250k+ Average Stay: 4.6 nights Summer US Geographic Target Markets Seattle San Francisco Los Angeles San Diego Dallas HoustonAustin Miami Tampa Atlanta Chicago Minneapolis New York City Arizona (statewide) Utah (statewide)Denver/Colorado (statewide) Omaha In-State Drive Traveler Out-of-State Drive Traveler Out-of-State Fly Traveler 2024 CAMPAIGN UPDATE2025 OPERATING PLAN AND BUDGET 2025 // Poised for Change Discover Vail is transitioning: -Destination Marketing Re-organization (DMO) -Strategic Plan Development -Marketing -Special Events -The Vail Experience -Business Development -Town Council Strategic Planning Objectives -New Brand -Setting aggressive goals Destination Marketing Communications & Public Relations Research & Data Analytics Special Events The Vail Experience Community/ Engagement Business Development NE W wi t h DM O 2025 Preliminary Business Goals May - October Indicator Results 2019 Results 2021 Results 2022 Results 2023 Goal 2024 Forecast 2024 Goals 2025 4% Town of Vail Sales Tax Revenue $9,853,122 $13,674,538 $14,222,156 $14,016,278 $14,222,156 Flat with 2022 YTD actuals $14,037,837 $14,739,728 +5% to forecast 1.4% VLMD Revenue $931,499 $1,482,956 $1,457,425 $1,433,980 $1,338,457 $1,437,943 $1,509,840 +5% to forecast Occupancy 45.0%45%43%43%45%46%47% Group Occupancy 24.7% 15%24% 22% 25%24%25% 2025 Objective & Priorities Drive responsible year-round revenue growth in Vail by targeting overnight guests who stay longer and spend more, while effectively communicating community and brand values. Areas of focus include increasing mid-week and lower demand time period stays. Business Objective Target high net worth guests, maximize longer stays and higher spend and 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 VISITATION: Campaign & Media Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Summer Fall Early Winter Paid Search Late Winter Consistent Paid Media Approach -Focus on Key Destination Markets -Increased budget allows for larger metro markets: New York, Los Angeles -Winter Campaigns: Early and Late Season -Results-based responsive strategy Campaign Timing VISITATION: Expand International ●Why We’re Doing it: International visitors spend 3-5 times more than a domestic visitor - for destinations looking for high-value, these visitors spend more, tend to be more highly-educated, and aware of stewardship of a destination ●They are mid-week visitors, tend to be in the state longer than other visitors ●Secret fact: while the international visitor crowd is small (~2% of CO's overall visitation), our goal is for them to be 10% of overall tourism spend for the state by 2025 ●The winter visitor, particularly, both domestically and internationally, spends about 140% more per person, per visit than a year-round visitor. Very important to a destination like Vail. ●I don't need to mention to you the high percentage of homes in Vail owned by Mexican families....the Mexican skier is now Colorado's #1 skier, more skiers from Mexico than ever in the past. International Travelers Spend 3-5 X More $ than a domestic visitor Fill our need periods Stay Mid-Week & Stay Longer Australia and UK -Partner with Colorado Tourism Office & Vail Resorts IPW Chicago: June 2025 -IPW: World's Leading US Inbound Travel Trade Show - Independent Discover Vail Presence (brand) Enhance Mexico Efforts -Paid Media -Public Relations -In-Mexico Missions *First Year of Multi Year Strategy Email ●Hyper-personalization growth ●Enhance AI-driven email content versioning ●ADA compliance Database Growth ●Increase newsletter sign-ups on web and in town ●Using new lodging data from new booking platform ●Event data increase through Ripe 22% 25% LOYALTY: Build CRM Click the blue links above to view examples of personalization based on what we know about the customers in our database. Personalization Examples: August Family Non-Family Music Dining Sightseeing Arts & Culture Outdoor Golf Interest LOYALTY: Enhance Content Increase Social Media ●Boost influencers ●Build TikTok Grow Content and Search ●Grow keywords ●Enhance content ●Organic website traffic ●Data-driven content for emails ●Future-proof with SEO and AI trends Social + Travel Planning Young Affluent Traveler 34-36% Use Instagram, TikTok and YouTube to travel plan 75% of all travelers rely on social media for inspiration — b Magazine 48% of TikTok-using travelers visited the destination — Future Partners Lead STEWARDSHIP 1% 7% Launch in-market stewardship campaign ●Interactive environmental installations, ●Materials for reference in Welcome Centers and throughout town ●Inspire action towards Destination Stewardship goals. Stewardship Integration 100% Vail owned channels include stewardship messaging 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. Improve BRAND Positioning Strategy/Production Launch Brand Campaign Development Pop-up shop / immersive display In-town amplification Website refresh Monitor and Measure Success 2025 new brand campaign Build upon 2024 campaign with more dynamic storytelling. Behind the scenes of 2025 campaign shoot: Launch new brand TBD NEW BRAND 10 Year Revenue and Expenditure Comparison -Prior to 2020, annual revenues and expenditures totaled around $3.5M; revenues averaging 6% annual increase -Revenues appear to be normalizing after COVID; new “normal” lodging tax revenue projected at $5.5M Transfer to GF 10-Year Reserves History 2025 Revenue Projection $ 5,581,000 ●Lodging Tax revenue is forecasted at $5,518,000 ○This represents a 1% increase from 2024 Forecast & 1% increase from 2023 actuals ●Interest revenue is projected at $63,000 2025 Revenue Projection 2025 Proposed Operating Budget $ 6,503,000 ●2% decrease from 2024 Amended Budget; 29% increase from 2023 actuals (excluding transfer to GF) ○Annual Baseline Budget $ 5,483,000* ○Contingency $ 100,000 ○Initiatives Using Reserves $ 922,000 *Includes $65,827 in expenses absorbed from General Fund 2025 Proposed Operating Budget 2025 Proposed Special Events Placeholder $ 3,000,000 ●The 2025 Budget reflects the transition of accounting and oversight of event funding and spending from the Town’s Marketing Fund to the Vail Local Marketing District Fund ●$3.0M placeholder for event funding (includes $17.5K administrative fee; 5% of BL Fee Revenue) ○Funded by $350,000 of Business License Fees Revenue ○$2,650,000 transfer from the General Fund * Special Events budget reduction from 2024 amended budget: $177,658 2025 Event Funding 2025 Proposed Operating Budget $ 6,503,000 2025 Proposed Special Events Placeholder $ 3,000,000 TOTAL EXPENDITURE BUDGET $ 9,503,000 PROJECTED ENDING FUND BALANCE: $1,588,628 29% of annual revenues 2025 VLMD Operating Plan Action Requested of the VLMD Vail Local Marketing District Advisory Council recommends the Vail Local Marketing District approve or approve with changes, the 2025 VLMD Operating Plan and Budget of $9,503,000 to present to the Vail Local Marketing District on September 17. THANK YOU Traveler Familiarity & Destination Preference Our Target Audience 25% of Colorado visitors are familiar with things to do in the state. 70% of Mountain Travelers prefer familiar destinations over new ones. 2025 Proposed Operating Budget $ 5,753,000 ●13.3% decrease from 2024 Budget; 24% increase from 2023 actuals (excluding transfer to GF) ○Annual Baseline Budget $ 5,483,000* ○Contingency $ 100,000 ○Initiatives Using Reserves $ 172,000 *Includes $65,827 in expenses absorbed from General Fund 2025 Proposed Operating Budget (less 750K) 2025 Preliminary Business Goals May - October Indicator Results 2019 Results 2021 Results 2022 Results 2023 Goal 2024 Forecast 2024 Goals 2025 4% Town of Vail Sales Tax Revenue $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 to 2024 forecast 1.4% VLMD Revenue $931,499 $1,482,956 $1,457,425 $1,433,980 $1,338,457 $1,437,943 $1,437,943 Flat to 2024 forecast Occupancy 45.0%45%43%43%45%46%46% Group Occupancy 24.7% 15%24% 22% 25%24%25%