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VLMD_JanBoardMtg_v10VLMDAC BOARD MEETING JANUARY 17, 2019 AGENDA / • SWEARING IN NEW BOARD MEMBERS • DECEMBER 2018 MONTHLY FINANCIAL REPORT, CARLIE SMITH • APPROVAL OF DECEMBER 20, 2018 MINUTES, BOARD • GROUP SALES QUARTERLY REPORT, VVP • 2018 RESULTS & 2019 KPI’S, CACTUS – OCCUPANCY/ADR/REVPAR ADDITIONAL DETAILS, CHRIS ROMER • 2019 TACTICS & APPROACH, ALL PARTNERS • OTHER BUSINESS • ADJOURNMENT GROUP SALES QUARTERLY REPORT Creation of Leads Requests for Proposals Prospecting Calls & Meetings Marketing the Destination to meeting planners Monthly Reports Status Updates Site Tours/FAM Results Groups Booked Follow Up Thank You/Repeat Travel/Tradeshows, Events & Office Visits GROUP REPORTGROUP SALES PROCESS / GROUP REPORTMEASUREMENT CRITERIA / • Number of qualified new leads generated • Number of groups booked • Number of planners reached via tradeshows, customer events & sales calls • Increase in mid-week occupancy as measured by DestiMetrics reports • Increase in group occupancy as measured by seasonal lodging outreach • Lodging partner/member relationships GROUP REPORTVVP & SHARED RESOURCES / • Leads Sourced to Lodging Partners • Lead Status Update Reports • Month End Lodging Revenue Reports • Send Site Destination eProposal • Coordinate & Assist with Site & FAM Tours • Site Tour Reimbursement Program • Onsite Marketing Materials for Groups • In-Market Representation & Co-op Opportunities GROUP REPORTKEY PERFORMANCE INDICATORS / 2018 RESULTS TRADE SHOWS ATTENDED: 24 Meeting Planner Attendees: 12,090 One-on-One Appointments: 971 VVP CLIENT EVENTS: 4 Meeting Planner Attendees: 124 SITE TOURS HOSTED: 12 FAM TOURS HOSTED: 4 • Marriott, IPW Vail, Manor Vail Lodge & Destination CO Additionally, each sales manager has attended multiple in-market monthly meetings & events with MPI, CSAE, Destination CO, Rotary, HSMAI, SKAL GROUP REPORTKEY PERFORMANCE INDICATORS / 2018 RESULTS 2015 2016 2017 2018 Leads Generated 162 231 238 247 Groups Booked 54 101 79 91 Conversion Rate 33% 44% 33% 37% Booked Room Nights 7,423 19,821 19,356 17,870 Leads in Pipeline 47 56 55 47 GROUP REPORTCVENT RESULTS 2017 VS. 2018 / Jan- Dec 17 Jan- Dec 18 % Change YOY RFPs in City 482 607 26% Unique Room Nights in City 128,356 177,122 38% Awarded RFPs in City 73 82 12% Awarded Room Nights in City 11,068 9,958 -10% Awarded RFP Value 4,027,956 3,717,581 -7% GROUP REPORTDESTINATION E-PROPOSAL / SEND SITES 2018 RESULTS & 2019 KPI’S 2019 GOALS 2019 PLANNING May – October Timeframe 2018 Results 2019 Goals Sales Tax $9,540,281 +4% Lodging Tax $991,126 +5% Overall Summer Occupancy 47.1% +3 points = 50.1% occupancy Group Occupancy 8,570 Room Nights +5% 2019 INDICATORS 2019 PLANNING May – October Timeframe 2018 Results 2019 Goals Out of State Overnight Visits 62% 63% International Visits 6% 7% In State Overnight Visits 22% 23% Consideration NA TBD Net Promoter Score 58 (web); 81 (on site) 60 (web); 83 (on site) *Data updated as of end of October OCCUPANCY INSIGHTS 2019 PLANNING • For every 1% occupancy, Vail fills 15 more rooms than the aggregate of the western ski resort competitive set • Vail 1% occupancy = 38.23 rooms • Competitive set 1% occupancy = 22.27 rooms • National vacation rental occupancy vs. hotel occupancy (12 mo. basis) • AirBnB average occupancy = 45.85% • Hotel average occupancy = 77.85% • Potential metrics for occupancy measurement: • Average room consumption per month (daily occupancy x avg. days in month) • Assess average room consumption based on total bed base 2019 TACTICS & APPROACH TIMELINE 2019 PLANNING January February March - Present high-level tactical planning - Develop & update brand creative for 2019 season - Final production on initial executions - Present final media/tactical plans - Present creative for feedback and approval - Launch initial tactics to impact known booking window 2019 AUDIENCES PERSONAS Primary: Destination Families with Teens Secondary: Destination + Front Range Boomers Tertiary: Front Range Events (Active Professionals, Super Boomers, Destination Families) DESTINATION DYNAMIC FAMILIES/ KIDS 13-17 PERSONAS • Tend to stay longer, bring more people and in turn spend more for lodging and activities. • Stay 6 nights on average, with 84% staying 3+ nights • 6.2 average people in the party, 1.6 above the overall audience • Experience is catered towards older children and there is a strong affinity for Vail amongst this audience • Reported a higher NPS than average (95% in 2018) • Most likely to return of all audiences • Children aged 13-17 are also a targetable audience • 86% of these RRC respondents cited their teens had an impact on their travel decisions • 67% had previously visited in the winter, making this an identifiable cross-seasonal guest • 7.5M U.S. target audience SUPER BOOMERS / DESTINATION AND FRONT RANGE PERSONAS • Most likely destination travelers to stay longer • 81% were overnight visitors from out of state • Slightly ahead of families in terms of length of stay • Travel during off peak times to take advantage of value and less crowds • Baby Boomers prefer to travel during spring or summer, with fall only slightly less • Retirees have the luxury of traveling when they can find a good rate • Most likely audience to be loyal, repeat visitors • Represented 46% of those who had reported visiting Vail in the summer 10+ times • Top digital media performer for fall in 2018 and 2017 FRONT RANGE EVENTS / ALL AUDIENCES PERSONAS • 70% of summer visitation is from the Front Range • 86% of Front Range visitors reported they were likely to return to Vail in the summer • Most likely audience to book with a shorter booking window • 25% of Front Range guests cited events as their primary reason for visiting Vail in 2018 • Event marketing provides a reason to drive urgency; events target specific personas (Active Professionals, Super Boomers, Dynamic Families) • General awareness/event messaging keeps Vail top of mind and encourages spontaneous visitation • Front Range visitors stayed an average of 3.5 nights in 2018 KEY INSIGHTS FOR 2019 PLANNING 2019 PLANNING We’ve identified some actionable insights to carry into the 2019 strategy, messaging, and targeting, such as: • Continue to target Front Range with event specific and retail messaging to deliver on “Why Now?” • Explore additional teen targeting and content • Determine opportunities for cross-seasonal messaging and targeting, given winter visitor overlap • Encourage the development of events and activities that facilitate peer socialization for teens • Investigate opportunities to reach consumers when they’re most active in searching for / booking vacations PAID MEDIA 2019 PLANNING Media Strategy: Continue to elevate storytelling by delivering multiple, relevant messages to a consistent audience • Maintain control of frequency • Reach targeted persona repeatedly but with a strategic creative rotation PAID MEDIA ECOSYSTEM PAID OVERVIEW TRADITIONAL Digital VideoTV DIGITAL Digital Radio Social Media Mobile Artiﬁcial Intelligence MEDIA CADENCE PAID OVERVIEW FRONT RANGE SUPER BOOMERS DEST. FAMILIES MAR MAY JULY SEPT DIGITAL MEDIA OVERVIEW PAID OVERVIEW Digital Video Digital Radio Mobile Artiﬁcial Intelligence Social Media DIGITAL VIDEO PAID MEDIA Key Insights Addressed: • Explore additional teen targeting and content development • Continue to target Front Range with “Why Now” messaging • Reach consumers when they’re most active in searching for / booking vacations What’s Working? Recommended continuations for 2019 Quality inventory in premium environments Teen specific targeting via short-form video 1 2 What’s New? Potential updates & additions for 2019 Investment in living room devices and live-streaming inventory to complement traditional strategy Additional teen targeting for audience-specific content Using “Book by…”, events, and flight-specific marketing to drive excitement and urgency 1 2 3 DIGITAL RADIO Key Insights Addressed: • Continue to target Front Range with “Why Now” messaging • Highest performer for Super Boomer audience and strong performer for Active Professionals What’s Working? Recommended continuations for 2019 2018 addition of video in the Pandora platform Custom audience targeting 1 2 What’s New? Potential updates & additions for 2019 Exploring additional radio partners and inventory Heavier investment in video 1 2 1 2 PAID MEDIA MOBILE AI Key Insights Addressed: • Continue to target Front Range with “Why Now” messaging • Determine opportunities for cross-seasonal messaging and targeting • Effective in targeting Destination Families with Teens What’s Working? Recommended continuations for 2019 Custom targeting by event category Overlap with PPC keywords to target intent 1 What’s New? Potential updates & additions for 2019 Deeper audience targeting based on 2018 results Potential expansion into the teen audience 1 22 PAID MEDIA PAID SOCIAL Key Insights Addressed: • Explore additional teen targeting and content • Reach consumers when they’re most active in searching for / booking vacations • Continue to target Front Range with “Why Now” messaging What’s Working? Recommended continuations for 2019 High-impact units for storytelling Short-form video via Instagram stories Event focus in Front Range 2 3 What’s New? Potential updates & additions for 2019 Refinement to Canvas ad messaging Deeper audience targeting in Destination and Front Range Using learnings from 2018 Vail App promotion to develop social audience 11 2 3 PAID MEDIA TRADITIONAL MEDIA OVERVIEW Highly Engaging and Efﬁcient TV Placements PAID MEDIA TV Key Insights Addressed: • Continue to target Front Range with “Why Now” messaging • Reach consumers when they’re most active in searching for / booking vacations • Explore additional teen targeting and content What’s Working? Recommended continuations for 2019 Elevated storytelling delivering multiple messages to a consistent audience Event messaging across audiences in Front Range Utilize cross-generational, engaging live programming to gain entire household exposure What’s New? Potential updates & additions for 2019 Use addressable ad copy for cost-efficient delivery of multiple spots Expand placements of spots in of Live Events & Live Sports programming through early March media launch Place air marketing-specific spots in Destination markets 11 2 2 33 PAID MEDIA OWNED MEDIA 2019 PLANNING Owned media efforts, led by Vail Mountain Marketing, work to inspire and support travel for those individuals who are most likely to visit Vail in the summer timeframe. OWNED MEDIA ECOSYSTEM OWNED OVERVIEW WEBSITE FacebookVail.com OWNED SOCIAL Scheduled Blasts Instagram EMAIL WEBSITE Key Insights Addressed: • Reach consumers when they’re most actively searching and booking summer visits What’s Working? Recommended continuations for 2019 Transition Vail.com homepage to summer experience in April 1 What’s New? Potential updates & additions for 2019 Develop robust interior summer landing pages for March launch via vailsummer.com Track effectiveness and optimize summer media landing pages Develop homepage promotional schedule to align with key strategies 1 2 3 1 OWNED MEDIA EMAIL Key Insights Addressed: • Determine opportunities for cross-seasonal messaging and targeting • Explore additional teen targeting and content development • Reach consumers when they’re most actively searching and booking summer visits What’s Working? Recommended continuations for 2019 Regularly segment Destination Dynamic Family audience Regularly segment winter loyalists to cross sell with summer messaging 1 What’s New? Potential updates & additions for 2019 Explore winter cross-sell and early summer messaging in winter post-stay emails Partner with Cactus to explore supplemental, paid e-blasts to target August/September time period 11 2 2 OWNED MEDIA ORGANIC SOCIAL Key Insights Addressed: • Explore additional teen targeting and content development • Continue to target Front Range with “Why Now” messaging What’s Working? Recommended continuations for 2019 Partnering with Deadline Motionworks to develop strategically aligned video content Continue emphasis on real-time event coverage to drive awareness among Front Range audience 1 What’s New? Potential updates & additions for 2019 Explore a boosting strategy to target teen related content to teen followers Track performance metrics by content category to gain better insights into top performing content mix 11 2 2 OWNED MEDIA SUMMER TOOLKIT Key Insights Addressed: • Explore additional teen targeting and content • Determine opportunities for cross-seasonal messaging and targeting What’s New? Potential updates & additions for 2019 • Development of a comprehensive “toolkit” for the use of lodging partners, event producers, etc. • Including summer images, video b-roll, produced social pieces, logo suite, brand copy, persona definitions, teen- specific content, event information, EGE information, and need time/targets from a 60 day outlook • Encourage community stakeholders to use in the marketing of summer efforts, as well as cross-marketing efforts to winter guests • Specifically feature summer teen assets, audience-specific copy, and “best in class” examples of teen destination marketing OWNED MEDIA EARNED MEDIA 2019 PLANNING EARNED MEDIA ECOSYSTEM EARNED OVERVIEW Traditional PR Online PR Groups GROUP Key Insights Addressed: • Build occupancy during the shoulder season periods • Impact mid-week occupancy • Attract new group business from key vertical and geographic markets What’s Working? Recommended continuations for 2019 Maintain focus in Colorado market Host in-market planner events (CO, IL, TX, NY, GA, CA, AZ) Site tours, FAMs, coops with lodging partners 1 2 3 What’s New? Potential updates & additions for 2019 Front Range Tradeshow with Vail lodging partners GMITE & IMEX Tradeshows CONNECT Mountain Vail FAM Tour 1 3 4 2 OWNED MEDIA OPPORTUNITIES 2019 PLANNING 2019 OPPORTUNITIES 2019 PLANNING • The VLMDAC has the unique opportunity to re-allocate the $200,000 no longer ear marked for the Colorado Classic Event • These dollars are approved as part of our 2019 budget and could be re- allocated into hard working dollars • Following are three tactics/options that take into account various key insights that we could achieve using these dollars REALLOCATING $200K – RETAIL/CRISIS PLAN PAID MEDIA Key Insights Addressed: • Continue to target Front Range with event specific and retail messaging to deliver on “Why Now?” • Investigate opportunities to reach consumers when they’re most active in searching for / booking vacations Summer Retail/Crisis Plan: $50K - $75K • Easily accessible funds that can be used as part of a nimble, integrated communications plan should any sort of crisis and/or substantial time period(s) arise 1 REALLOCATING $200K – WARM UP HUT PAID MEDIA Key Insights Addressed: • Determine opportunities for cross-seasonal messaging and targeting, given winter visitor overlap • Explore additional teen targeting and content 2 Winter Warm Up Hut: $150K • “Pop-up” summer promotion shop during the March spring break timeframe, using interactive methods such as VR to create excitement • Excellent opportunity for engagement and shareability REALLOCATING $200K – POTENTIAL OPPORTUNITIES PAID MEDIA Key Insights Addressed: • Continue to target Front Range with event specific and retail messaging to deliver on “Why Now?” • Explore additional teen targeting and content • Determine opportunities for cross-seasonal messaging and targeting, given winter visitor overlap • Encourage the development of events and activities that facilitate peer socialization for teens • Investigate opportunities to reach consumers when they’re most active in searching for / booking vacations Potential Opportunities • Funds held for new opportunities that may present themselves throughout the season. These opportunities may help us achieve our goals and take into account our key insights. • Dude Perfect Vail Trick shot partnership 3 3 TIMELINE 2019 PLANNING January February March - Present high-level tactical planning - Develop & update brand creative for 2019 season - Final production on initial executions - Present final media/tactical plans - Present creative for feedback and approval - Launch initial tactics to impact known booking window APPENDIX 2018 CAMPAIGN AT A GLANCE 2018 RESULTS 2018 2017 2016 Sales Tax Revenue $9,540,281 $8,451,471 $8,132,456 Lodging Tax Revenue $991,126 $829,992 $760,914 Total Occupancy 47.1% 48.8% 49% Total Average Daily Rate $231 $228 $222 FIT Occupancy 29.3% 30.3% 29.5% FIT Average Daily Rate $273 $283 $244 Group Occupancy 24.8% 26.8% 27% Group Average Daily Rate $210 $208 $202 Paid Media Budget $1,024,359 $1,197,348 $1,020,935 Paid Media Impressions Delivered 61M 79M 97M *all figures are 5/1 – 10/31 DESTINATION FAMILIES WITH TEENS RRC RESEARCH Net Promoter Score; +11% over the 2017 NPS for this audience 95% Many of our findings in the RRC insight exploration validated our ongoing strategic focus on this primary audience. Average number of people in the party; 1.6 above the overall average In winter visitation crossover, with 67% having previously visited in the winter 6.2 #1 3.5 Lowest satisfaction rating, identifying that the opportunities for peer social activities is a potential area of growth FIRST TIME VS. REPEAT VISITORS RRC RESEARCH 30% of those surveyed were first time visitors to Vail, giving reason for a deeper dive into this audience. Average months ahead of trip that repeat visitors book, but first timers were the most likely audience to book 1-2 months out 3-4 Of first time visitors reported that they would probably return, vs. ≈55% of repeat visitors saying they’ll definitely return First time visitors are the most likely audience to be single with no children 54% #1 7.2 Average number of nights visited by those who have visited Vail in the summer more than once FRONT RANGE VS. DESTINATION RRC RESEARCH Some of the geographical audience insights reaffirmed our hunches, while others may surprise. Net Promoter Score for both audiences ≈85% Of Destination visitors reported they were staying in a townhome or condo rather than a hotel, vs. 36% for in state visitors Average nights Destination visitors stayed in Vail, vs. 3.5 for in state visitors 55% 8.7 1.4 Times more that in state visitors said they were likely to return, as opposed to Destination visitors. MEDIA CADENCE 2019 PLANNING Media placements will begin early/mid March to support insight that guests are shopping and booking EARLIER. Traditional Media Front Range • Flight media around specific events being supported by the VLMDAC; spanning early June – late September. (exact events to be confirmed) • Fall specific messaging late August - September Traditional Media Destination • In market early/Mid March through early/mid July with summer message. • Pulsing media with show hiatus periods allows us to extent spend through Mid July with limited loss of ad and brand recall. • Late July through August with fall message. CROSS-SEASONAL MESSAGING AND TARGETING 2019 PLANNING Tactics for cross-seasonal messaging and targeting, given winter visitor overlap Summer “Tool Kit” • Including summer images, video B-Roll and produced social pieces, Vail App & Sustainability logos, Brand copy, Events, EGE information, Persona definitions, need time/targets defined (60-day outlook) • Distributed to lodges, event producers, key stake holders in January - March; encourage to use in marketing of summer efforts and cross marketing efforts to winter guests • Possible one on one meetings with specific entities EXPAND TEEN CONTENT & TARGETING 2019 PLANNING Tactics to target explore additional teen content & targeting Summer/Teen Focused “Tool Kit” • Including summer/teen images, video B-Roll and produced social pieces, Vail App & Sustainability logos, Brand and teen centric copy, Events, EGE information, Persona definitions, need time/targets defined (60-day outlook), teen business starter ideas • Distributed to lodges, event producers, key stake holders in January - March; encourage to use in marketing of summer efforts and cross marketing efforts to winter guests • Possible one on one meetings with specific entities REACH CONSUMERS AT THE RIGHT TIME 2019 PLANNING Tactics to reach consumers when they’re most active searching / booking vacations Media Strategy: Continue to elevate storytelling by delivering multiple messages to a consistent audience • Maintain control of frequency • Reach targeted persona repeatedly, but with a creative rotation Media Tactics: • Live Events & Live Sports (Ex’s: NCAA Basketball Tournament - March Madness, XXXX) are maintaining and even growing viewership and exposure to entire household • Addressable TV is still one of the most targeted and impactful mediums Destination Media Messages: • Book By (excitement/urgency), Brand with EGE support, Fall CONTINUE TO TARGET FRONT RANGE 2019 PLANNING Tactics to target Front Range with event specific and retail messages to deliver on “Why Now?” Media Strategy: Continue to elevate storytelling by delivering multiple messages to a consistent audience • Maintain control of frequency • Reach targeted persona repeatedly, but with a creative rotation Traditional Media Tactics: • Live Events & Live Sports (Ex’s: NCAA Basketball Tournament - March Madness, NBA, NHL, Soccer, MLB, Golf & FIFI Women’s World Cup) are maintaining and even growing viewership and exposure to entire household • Addressable TV is still one of the most targeted and impactful mediums • Front Range Interconnect Addressable Ad Copy – allows up to 5 messages at the same time for cost of 1 spot, giving us message flexibility with events targeted to specific personas CONTINUE TO TARGET FRONT RANGE 2019 PLANNING Tactics to target Front Range with event specific and retail messages to deliver on “Why Now?” Front Range Traditional Media Messages: • Events & Fall WEBSITE Key Insights: • Investigate opportunities to reach consumers when they’re most actively searching and booking summer visits Continued Tactics: • Continue to transition Vail.com home page to summer experience in April New Tactics: • Partner with Cactus to develop robust interior summer landing pages for promotion as early as March via www.vailsummer.com • Partner with Vail Resorts Analytics team to track effectiveness and optimize of summer media landing pages • Develop home page promotional schedule in alignment with key strategies EMAIL Key Insights: • Explore additional teen targeting and content development • Determine opportunities for cross season messaging and known winter audience targeting, given visitor overlap Continued Tactics: • Continue to regularly segment Destination Dynamic Family audience • Continue to regularly segment winter loyalists to cross sell with summer messaging New Tactics: • Explore winter cross sell and early summer messaging in winter post-stay emails • Partner with Cactus to explore supplemental paid e-blasts to target August/September time period SOCIAL Key Insights: • Explore additional teen targeting and content development • Continue to target front range with “Why Now” messaging, such as event specific messaging and retail offers. Continued Tactics: • Partner with Deadline Motionworks to develop strategically aligned video content • Continue emphasis on real-time event coverage to drive awareness among Front Range audience New Tactics: • Explore a boosting strategy to target teen related content to teen followers • Track performance metrics by content category to gain better insights into top performing content mix 2019 GROUP EFFORTS VVP Group Sales Advertising • Destination CO Banner Ads • MPI Rocky Mountain Chapter Directory • MPI Global Buyers Guide • Tiger Oak Publications – Online Monthly Banner Ads • FICP Membership Directory • ASAE Directory • CSAE Directory VVP Group Sales Marketing Resources • Sales Force Database • Send Sites Destination eProposal • Cvent Lead Generation & Video Retargeting • Knowland Group • ConventionPlanit VVP Group Sales Travel & Tradeshows • CO – 10 • East Coast – 7 • Midwest • West Coast/TX – 7 • Canada – 1 OWNED MEDIA