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VLMDAC September Meeting PresentationVAIL LOCAL MARKETING DISTRICT ADVISORY COUNCIL MEETING SEPTEMBER 21, 2017 AGENDA / •PHOTO/VIDEO SHOOT UPDATE, CACTUS/SITE/SATCHELE/JACK •CREATIVE & DIGITAL UPDATE, CACTUS •REPORT ON ASPEN PEER RESORT VISIT, VLMDAC MEMBERS •REVIEW OF 2018 VLMD SEPT. 19 PRESENTATION, ALL PHOTOS/VIDEO SHOOT UPDATE BRAND PHOTO & VIDEO / GOLF IMAGES BRAND PHOTO & VIDEO / GOLF IMAGES BRAND PHOTO & VIDEO / GOLF IMAGES BRAND PHOTO & VIDEO / GOLF IMAGES CREATIVE & DIGITAL MEDIA UPDATE YEAR OVER YEAR RESULTS (THROUGH 8/31) / Display Video PPC Facebook Instagram 2017 Benchmark: 0.11% CTR Benchmark: 68% VCR Benchmarks: 1.25% CTR $2.50 CPC Benchmarks: 0.65% CTR 20% VCR Benchmarks: 0.15% CTR 8% VCR 0.18% CTR 78.49% CTR 6.45% CTR $1.23 CPC 0.99% CTR 79.39% VCR 0.22% CTR 10.99% VCR 2016 Benchmark: 0.09% CTR Benchmark: 68% VCR Benchmarks: 1.00% CTR $3.00 CPC Benchmarks: 0.25% CTR 15% VCR Benchmarks: 0.15% CTR 15% VCR 0.11% CTR 74.38% CTR 1.22% CTR, $1.93 CPC 1.08% CTR, 14.09% VCR 0.18% CTR, 12.88% VCR DYNAMIC FAMILIES / DIGITAL DELIVERY •IMPRESSIONS DELIVERED: 17.5MM IMPRESSIONS DYNAMIC FAMILIES / DISPLAY CREATIVE PERFORMANCE DYNAMIC FAMILIES / VIDEO COMPLETION RATE BY DEVICE *Industry standard benchmark for pre-roll VCR is 68%. DYNAMIC FAMILIES / SOCIAL PLATFORM DELIVERY DYNAMIC FAMILIES / PAID SOCIAL DELIVERY SUPER BOOMERS / DIGITAL DELIVERY •IMPRESSIONS DELIVERED: 13.5MM IMPRESSIONS SUPER BOOMERS / DISPLAY CREATIVE PERFORMANCE SUPER BOOMERS / VCR BY DEVICE *Industry standard benchmark for pre-roll VCR is 68%. SUPER BOOMERS / PAID SOCIAL DELIVERY ACTIVE PROFESSIONALS / DIGITAL DELIVERY •IMPRESSIONS DELIVERED: 4.8MM IMPRESSIONS ACTIVE PROFESSIONALS / VCR BY DEVICE *Industry standard benchmark for pre-roll VCR is 68%. ACTIVE PROFESSIONALS / SOCIAL PLATFORM DELIVERY ACTIVE PROFESSIONALS / SOCIAL DELIVERY NATIONAL AUDIENCE / SOCIAL DELIVERY •IMPRESSIONS DELIVERED: 4.1MM IMPRESSIONS PAID SEARCH / DELIVERY OVERVIEW •IMPRESSIONS DELIVERED: 762KIMPRESSIONS REPORT ON ASPEN PEER RESORT VISIT •Attendees •Trip Goals •Aspen City Snapshot •Organizations & Partnerships –Aspen Ski Company –Stay Aspen Snowmass –Aspen Institute –City of Aspen –Aspen Chamber Resort Association •Potential Action Steps OVERVIEW ASPEN PEER RESORT VISIT / •Jenn Bruno •John Dawsey •Scott Gubrud •Kelli McDonald •Phil Metz •Laurie Mullen •Skip Thurnauer •Laura Waniuk ATTENDEES / •VLMDAC Strategic Planning Session •Visit competitive resorts to learn about their vision, mission, core values and best practices •Identify trends and opportunities •Plan for Vail’s future proactively •Reciprocate information-sharing TRIP GOALS / •Cohesive approach is not necessarily supported by all organizations in these areas: –Events –Operations/In Kind –Marketing •Overlap but no real synergy between groups (Stay Aspen Snowmass and Aspen Ski Co. are exception). •There are 3 different marketing departments in Aspen: –ACRA –Aspen Ski Co. –Stay Aspen Snowmass ORGANIZATIONS & PARTNERSHIPS / •Altitude: 7,908 feet / 2,422 meters at Aspen’s base elevation •Airline Access: Aspen/Pitkin County Airport (ASE) is the local airport, located only three miles from downtown Aspen. –Aspen is served by United Airlines, Delta Air Lines and American Airlines. •Size and Population: The City of Aspen spans 3.66 square miles. –Year-round population of the City of Aspen proper is approximately 6,658. –High-season population is approximately 27,000. –The average daily population in Aspen is 20,871.Heaviest days for visitation during the summer are July and early August. •Fast Facts: –Restaurants/Bars: Approximately 80 –Shops/Boutiques: Approximately 235 –Grocery/Convenience Stores: 3 ASPEN CITY SNAPSHOT / •Met with: Pete Hayda - Director of Sales and Marketing, Lodging Division of Aspen Ski Co. –Aspen Ski Co. divided into Hospitality and Mountain Hospitality –Culture of quality service creates a year round economy –Lots of wealth in town (locals and second homeowners) –Aspen has a “real town” feel –Empty retail shops due to high rent pushing out local businesses –Opportunity to offer unique experiences – Snowcat rides/first tracks, 10 guests –Town Council – mostly locals “anti-growth” making it difficult to upgrade –Environmental sustainability is a focus along with public and mental health –Marijuana retail stores have a high end look and feel, fit in with the rest of the town ASPEN SKI COMPANY / •Met with: Bill Tomcich, President –Toured new office call center: Merger with Stay Aspen Snowmass & Aspen Ski Co. –Fly Aspen Snowmass – made up of 4 entities: Snowmass Tourism, Aspen Ski Co., Aspen Chamber and Resort Association and airport –Partnership for airline support is equal. Integrating SAS into Aspen Ski Co., all are marketing and contribute equally to promotions. –Top markets LAX, NY, Chicago – during winter. –Flights – they have no paid guarantees due to demand, fares and profitability. –Plans for airport improvements, terminal building and airfield. Pitkin County project that would be funded by the FAA. –Organization is stronger now with direction and oversight from Aspen Ski Co. –For detailed airport information, see attached presentation STAY ASPEN SNOWMASS / •Met with: Megan Bentzin, Stewardship and Cultivation Associate, Society of Fellows –Founded 1949 - Inspired by its great natural beauty, a gathering place for thinkers, leaders, artists, and musicians from all over the world to step away from their daily routines and reflect on the underlying values of society and culture. –Tour of the grounds – distinctive event venues, indoor and outdoor –Diverse programming and culture – for residents & visitors –Community usage of event venues –meeting space is more than 20K square feet –Easy access to town using bike share (1 mile) ASPEN INSTITUTE / •Met with: Don Taylor - Finance Director, Nancy Lesley - Director of Events and Marketing, Mitch Osur – Parking Director, C.J. Oliver – Environmental Health Director –City budget – just under $100,000,000, they have electric and water utility. –1.5% accommodation tax, contract with ACRA allocated for marketing the city, generates $1.6 million –Events: Permit program, all events that happen in the city run through city employees. They wholly own and operate certain events. They focus on athletic events: tournaments, marathons, half marathons. CITY OF ASPEN / •Parking: 650 spaces in downtown core, 3000 spots in residential area, 311 in parking garage ($5 - $1.50/hr and punch pass), Intercept lot, 6.5 miles outside of town, free shuttle. –Raised parking prices by 50%, $14 to $21, 60% cars parking on streets are employees. –App to pay for parking on phone and increase the time if need (with a 15 minute grace period). –All extra revenue goes to transportation fund to buy buses. –Average parking time is 101 minutes. –Most parking complaints come from visitors. Offset it with Downtowner (electric compact size vehicle). CITY OF ASPEN / ASPEN CHAMBER RESORT ASSOCIATION / •Met with: Debbie Braun – President/CEO, Brittany Zanin - Special Events Manager, Sarah Reynolds Lasser - Director of Sales –Hybrid of traditional chamber with 800 members and 4 visitor centers funded by the c ity. –Member dues, etc. is a little over $1 million. Contract with city and county with guest services - $500k. 2% goes to marketing = $2.4 million. –Lodging tax approved in 2000. In 2010 they were given 1.5% for marketing. –Many groups don’t come back a second year because they change locations. However, there are some great city-wide group buyouts. –Snowmass and Aspen market collaboratively for international trade and media. »Snowmass is more group heavy, rely on events in the summer. »Aspen has more ongoing arts programming. ASPEN CHAMBER RESORT ASSOCIATION / –Produces special events: Food & Wine, 4th of July, Arts Festival, Winter Skol –Short term rental - an entry level point into Aspen for new guests. Market regulates itself. Airbnb’s have to register with the city, they pay a permit fee and lodging tax. –Gondola costs $24 during the summer. –Premier Season Pass - $1,799, early bird pricing, chamber member. Mountain Collective program, 50% off. –Marketing summer starts in early April. Looking at March start next year. –Website is year round. ACRA pushes winter town and Aspen Ski Co. pushes winter mountain. –Market year round, but concentrated in summer. Depends on the outlet for the type of advertising, branding vs events vs retail. POTENTIAL ACTION STEPS / •Continue collaborative relationships and synergy between VLMDAC, CSE, Town of Vail and Vail Resorts. •Explore steps to encourage the chamber to take a greater role in driving guests to retail/restaurant businesses and with special events. •Acknowledge the importance of guest service throughout the town and resort as it relates to transportation, parking and the overall experience. •Continue exploration of opportunities for viable event venues, existing or potential. •Continue peer resort trips to experience competition and share best practices. •Keep Vail in a Leadership Position 2017 SPRING/SUMMER/FALL EVENT DATES / JUNE •6/16‐6/18 FOOD & WINE CLASSIC IN ASPEN •6/18‐6/23 SUMMER WORDS •6/23‐7/1 JAS ASPEN SNOWMASS JUNE EXPERIENCE •6/24‐8/19 THEATRE ASPEN’S SUMMER REPERTORY •6/29‐8/20 ASPEN MUSIC FESTIVAL AND SCHOOL SUMMER SEASON JULY •7/4 ASPEN’S OLD‐FASHIONED FOURTH OF JULY CELEBRATION •7/8‐8/18 ASPEN SANTA FE BALLET PRESENTS SUMMER DANCE •7/19‐22 ASPEN INSTITUTE: ASPEN SECURITY FORUM •7/22 ASPEN ARTS FESTIVAL AUGUST •8/5 AUDI POWER OF FOUR MOUNTAIN BIKE •8/6 ASPEN SCIENCE CENTER’S SUMMER SCIENCE FAIR •8/6‐8/13 RED BRICK PLEIN AIR FESTIVAL •8/12 ASPEN BACKCOUNTRY MARATHON •8/23‐27 MOUNTAINSUMMIT: MOUNTAINFILM IN ASPEN FESTIVAL •8/24‐27 MEN’S VOWS PRESENTS: ASPEN SUMMER HOLIDAY •8/30‐9/4 MOTHERLODE VOLLEYBALL CLASSIC SEPTEMBER •9/1‐9/3 JAS ASPEN SNOWMASS LABOR DAY EXPERIENCE •9/14‐9/17 50TH ANNUAL ASPEN RUGGERFEST •9/23 GOLDEN LEAF HALF MARATHON OCTOBER •10/3‐10/8 39TH ANNUAL ASPEN FILMFEST •10/5-10/7 THE MEETING •CURRENT IMPRESSIONS •PUBLIC/PRIVATE PARTNERSHIPS •WHAT MAKES A PLACE SPECIAL •WHAT ARE THE CHALLENGES •COMMUNITY/BUSINESS/TOWN ENTITIES THAT WORK TOGETHER •CULTURE OF SERVICE •YEAR-ROUND ECONOMY •SUMMER VS. WINTER INITIATIVES •RETAIL DIVERSITY, BUSINESS VARIETY •RETAIL CHANGING: LOSING, STAYING THE SAME OR GAINING AS AN AMENITY AND SALES TAX DRIVER •STRENGTH OF EVENT PLATFORM AS AN ECONOMIC DRIVER - IMPLICATIONS •IMPORTANCE OF REGIONAL AIRPORT – CURRENT PROGRAM, MRGS, GROWTH POTENTIAL, •PRESERVING THE UNIQUENESS AND SPECIAL CHARM OF A PLACE •OPPORTUNITIES AND VISION OF THE COMMUNITY •EASE OF NAVIGATING - PARKING, SIGNAGE AND WAYFINDING •SUSTAINABILITY EFFORTS •LODGING MIX – OCCUPANCY, ADR, REVPAR, TRENDS •TAXES, SPECIAL DISTRICTS RESORT TOPICS VLMDAC PEER RESORT QUESTIONS FOR THE TRIP / REVIEW OF 2018 VLMD BUDGET & OPERATING PLAN SEPT, 19 VLMD PRESENTATION •Creative Review •Goals & Results •Insights & Trends •VLMD 2018 Budget, Strategy & Operating Plan •Discussion/Questions AGENDA / GOALS & RESULTS VLMDAC OVERARCHING GOAL / STRENGTHEN VAIL’S POSITION AS A YEAR-ROUND DESTINATION THAT APPEALS TO A BROAD AUDIENCE, BY ELEVATING THE SUMMER BRAND POSITION. VLMDAC MARKETING OBJECTIVES / CONTINUE THE MOMENTUM AND BUILD ON THE POWERFUL LEADERSHIP POSITION OF THE YEAR-ROUND VAIL BRAND. •INCREASE SALES TAX REVENUE •INCREASE M AY-OCTOBER OCCUPANCY •INCREASE GROUP OCCUPANCY •OPTIMIZE VISITOR MIX •POSITIVELY IMPACT NET PROMOTER SCORE •INCREASE CONSIDERATION PERCENTAGE AS MEASURED BY BURKE 2017 OVERVIEW /BUDGET Drive Overnight & Out-of-state Visitation Mkt Production Branding Research 2017 Budget: $3.750 Million 27% 73% Destination FR Overnight International Web/CRM/Social Public Relations Groups 47% 10% 8% 27% 4% 4% Digital Social Traditional PR 46% 7% 7% 40% 2017 NEW APPROACH & INCREMENTAL $500K / •A ONE -TIME INCREMENTAL BUDGET OF $500K WAS ALLOCATED ACROSS KEY INITIATIVES •SHIFTED STRATEGIC APPROACH FROM A GEOGRAPHIC AND FUNCTIONAL FOCUS TO A CONSUMER BASED FOCUS (DYNAMIC FAMILIES/ACTIVE PROFESSIONALS/SUPER BOOMERS). •NEW STRATEGIC APPROACH BUILDS INTEGRATED TACTICS AROUND PERSONAS IN ORDER TO BETTER ACCOUNT FOR TRAVEL MOTIVATIONS & BEHAVIORS, AS WELL AS MEDIA CONSUMPTION BEHAVIORS. • ALLOWS US TO BECOME HYPER-TARGETED TO PERSONAS IN DIGITAL AND TRADITIONAL MEDIA, WITH INCREASED EFFICIENCY OF DOLLARS AND MESSAGING. •PRIORITIZE HIGH QUALITY PLACEMENTS AND EXECUTIONS THAT WERE PROVEN IN 2016 TO YIELD BEST ENGAGEMENT AND CONSIDERATION OF VAIL. •CONTINUES TO BUILD THE MOMENTUM FOR REACHING ANNUAL AND 5-YEAR GOALS. •ALIGNS WITH VAIL MARKETING WINTER STRATEGIC APPROACH 2017 NEW APPROACH & INCREMENTAL $500K / HOW DID IT WORK 30% budget increase in digital 224% increase in digital video impressions 2X digital video views +71% Content Impressions 38% budget increase in traditional media 70% increase in traditional media top funnel impressions Expansion into addressable TV with data driven one to one targeting (and included Chicago) 9% budget increase in PR More than 1M static impressions and story views through the influencer program 7% budget increase in Groups Increased CVENT engagement resulted in 18.6% increase in leads and 21% increase in room nights generated 39% budget increase in photo/video Accomplished professional brand photo/video shoots speaking directly to personas GOALS AND RESULTS TO DATE / 2016 Results 2017 Goals 2017 Results 2018 Goals 5 year Goals Sales Tax May - Oct. +7% May - Oct +3% May - 1%; June +3.3% May - Oct. +3% Overall +15% DestiMetrics/ Occupancy May - Oct. +5% (49% overall) May - Oct +2% May - Oct. +.43% May - Oct. +2% Overall +10% Group Occupancy 30% 4% 6% 4% 20% Out of State Overnight Visits 49% of mix 60% of mix 49% of mix 60% of mix 65% of mix International Visits 5% of mix 11% of mix 6% of mix 11% of mix 15% of mix In State Visits 25% of mix 20% of mix 24% of mix 20% of mix 20 - 25% of mix Consideration measure in 2017 55% in 2015 results in October 2% increase 5 - 8% increase Net Promoter Score 80 84 in 2015 84 mid summer (intercept only) 83-84 84-85 5 YEAR RESULTS TO DATE / 2014 Baseline 2015 Results 2016 Results 2017 Goals 2017 Results YTD 2018 Goals 5 year Goals 2014-2016 Results Sales Tax $7M May - Oct + 8% May - Oct. +7% May - Oct +3% May - 1%; June +3.3% May - Oct. +3% Overall +15% +15% DestiMetrics/Occupancy 43% occupancy May - Oct May - Oct - 1% May - Oct. +5% May - Oct +2% May - Oct. +.43% May - Oct. +2% Overall +10% +6% Group Occupancy 8,570 room nights down 15% up 30% up 4% up 6% grow 4% grow 20% +15% Out of State Overnight Visits 55% of mix 58% of mix 49% of mix 60% of mix 49% of mix 60% of mix 65% of mix 54% International Visits 9% of mix 9% of mix 5% of mix 11% of mix 6% of mix 11% of mix 15% of mix 7% In State Visits 19% of mix 19% of mix 25% of mix 20% of mix 24% of mix 20% of mix 20 - 25% of mix 22% Consideration NA 55% 55% in 2015 55% in 2015 results in October 2% increase 5 - 8% increase 55% Net Promoter Score 75 84 80 83-85 84 mid summer (intercept only) 83-84 84-85 82 INSIGHTS & TRENDS 2018 INSIGHTS / •Net promoter scores (NPS) are strong in general •Geographic origins remain similar to those observed in past years –International is our top out-of-state market (6%) –Mexico is a top out of state market for first time •30% of respondents are on their first visit to Vail •More direct bookings at the expense of OTA bookings •30% of overnight stays are 1 or 2 nights •Recommendations are cited from friends/family, Google searches, and review sites and destination sites 2018 INSIGHTS / Each audience has a unique source of travel inspiration and influence Mobile’s influence on travel continues to grow Visual information is on the rise and a key part of all parts of the travelers decision making process 2018 INSIGHTS / •80% of Gen Zs and 74% of Millennials report that social media influences their shopping habits •76% of consumers believe the content people share is more honest than advertising • Millennials are particularly receptive to user-generated content over traditional marketing •54% of female consumers purchased a product/service after seeing it recommended by an influencer 2018 OPERATING PLAN, STRATEGIES & BUDGET •Strengthen Vail’s position as a year-round destination by unifying the brand message in winter and summer •Leverage Summer research to increase consideration •Focus on core audience while broadening and increasing relevancy with younger demographic •Maximize off peak, mid-week and shoulder seasons •Increase Customer Relationship capacity to maintain repeat guests and re-engage lapsed guests 2018 STRATEGIES / •Optimize mix to drive revenue: Percent of Destination, Front Range Overnight and International (Mexico/Latin American) guests •NEW - Develop Content Marketing plan to provide new ways to reach consumers with key Vail messages •Increase awareness of Vail as a group & meeting destination and to drive quality leads to the lodging community •Support EGE flights with targeted and integrated efforts in flight markets •Leverage summer events and identify new events to build overnight guests and mid week traffic 2018 STRATEGIES / • I-70 Vail Underpass will be completed 2017 ski season and will relieve congestion along frontage roads and roundabouts. • Expanded summer bus service to continue, servicing East Vail, Vail Golf Course and Sandstone neighborhoods •New accommodations: Hotel Talisa, The Lion, Doubletree Hotel •New restaurants/retailers •New/expanded events: Taste of Vail Fall Food & Wine Discovery, Craft Beer Festival • Continued expansion of Vail Epic Discovery 2018 WHAT’S NEW / SUMMER BUDGET Drive Overnight & Out-of-state Visitation 2018 Budget: $3.4 Million ($350,000 REDUCTION YOY) 79% Destination FR Overnight International Web/CRM/Social Public Relations Groups 47% 8% 8% 28% 3% 5% Digital Content Traditional PR 44% 6% 2% 43% 2018 OVERVIEW / BUDGET Mkt Production Branding Research 21% Other 5% 2018 VS. 2017 BUDGET COMPARISON Budget by Category 2018 BUDGET % of Budget 2017 Budget % of Budget 2018 vs. 2017 %Change 2016 BUDGET % of Budget 2018 vs. 2016 %Change Destination Efforts $ 1,257,348 37% $1,285,500 34% -2% $1,119,000 34% 12% Front Range $ 222,000 7% $264,000 7% -16% $225,000 7% -1% International $ 226,552 7% $241,000 6% -6% $220,000 7% 3% Branding/Production $ 146,000 4% $168,000 4% -13% $110,000 3% 33% Groups $ 756,375 22% $752,965 20% 0% $702,500 22% 8% PR $ 85,200 3% $115,000 3% -26% $103,000 3% -17% Research $ 84,365 2% $136,088 4% -38% $74,000 2% 14% Photo/Video $ 112,000 3% $185,000 5% -39% $124,000 4% -10% Web/Email/Social $ 125,200 4% $110,500 3% 13% $101,500 3% 23% Professional Fees/Admin $ 359,960 11% $366,947 10% -2% $351,460 11% 2% Event Support $ 25,000 1% $125,000 3% -80% $120,000 4% -79% TOTALS $ 3,400,000 $3,750,000 -9% $3,250,460 5% 2018 BUDGET SHIFTS •ADDING: •New content/influencer strategy •Vail app maintenance and expansion •Group PlanIt initiative •ADJUSTING: •Savings in professional fees with efficiencies and reduced scopes of work •Right sizing all addressable TV markets, resulting in the reduction in spend •Reduction in TV/video productions and asset gathering; focus on capitalizing on 2017 video and photo efforts •Reduction in research with off-year of Burke Brand research •Shift Cactus agency fees by maintaining current “For Those Who” creative platform with refreshed executions showcasing new photography, video and headlines. Savings will be used to support new initiatives 2018 BUDGET SHIFTS •ELIMINATING: •Front Range print - Destination print Official State Vacation Guide participation (will still maintain presence with Lodging co-op) •Front Range TV brand messaging (will keep Event TV that includes some branding) •Special Event line item – No budget for this 2018 line item because no event has been identified. Should an opportunity arise, dollars from the fund balance would be utilized. THANK YOU!! NEXT MEETINGS: VLMDAC MEETING, OCTOBER 19, 8:30 – 11:30 AM, ANTLERS LODGE VLMD 2017 BUDGET RESOLUTION, OCTOBER 17, 2017, TIME TBD, TOWN COUNCIL CHAMBERS