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VLMD 2011 Planning: Objectives & Strategies Presented to the VLMDAC August 19, 2010
AGENDA Consumer and Travel Trend Update Competitive Update Sales Tax/Occupancy Update 2011 Objectives & Strategies Next Steps
CONSUMER & TRAVEL TRENDS • Value driven behavior continues to prevail – Must continue to demonstrate that we are ‘listening to the consumer’ through messaging/tonality, offers, products,
etc • Controlling pricing power remains a challenge even though we are seeing both occupancy and rate increases – Increases due the arrival of summer and recession fatigue – Lodging
effort this winter to increase rates • Consumers are beginning to spend more on F&B/discretionary spending
CONSUMER & TRAVEL TRENDS • Close-in booking trends continue but not as significant – Account for about a quarter of bookings • Consumers continue to shop around, price compare, and finally
booking direct – Must provide competitive and compelling offers • Direct VBCR phone conversions successful – Able to probe consumer and offer various packages – A la carte style booking
COMPETITIVE UPDATE • No new breakthrough or differentiating brand positioning • Focused on pure retail and tactical messaging /Minimal brand building efforts • Generic price-driven packages
versus value-driven communication • Summer video content prevalent on very few sites (Aspen, Beaver Creek) • Creative executions remain undifferentiated and generic • Indicators pointing
to Vail outperforming identified competitive set
RESULTS TO-DATE: OCCUPANCY (as reported by MTRIP) On the Books for 2009* On the Books for 2010* May 19% (Actual) May 11% (Actual) June 34% (Actual) June 41% (Actual) July 47% (Actual)
July 52% (Actual) August 35% August 40% September 16% September 22% October 11% October 9% *As of July 31
RESULTS TO-DATE: SALES TAX Actual 2009 Projected for 2010* May $516,182 May $399,187 Actual (-22%) June $717,233 June $872,262 Actual (+22%) July $1,121,860 July $1,104,459 (-2%) August
$1,068,391 August $1,051,819 (-2%) September $753,754 September $742,061 (-2%) October $581,033 October $569,371 (-2%) Total $4,758,453 Total $4,739,159 (-.1%) *As of July 30, 2010
2011 MARKETING OBJECTIVES 1. Drive incremental overnight spring, summer and fall bookings 2. Increase sales tax revenue at 1% above inflation 3. Continue to build long-term brand awareness
that drives short-term sales 4. Increase market share by widening audience reach with Destination and International guests while maintaining loyal guest base 5. Continue to position
Vail as a world-class, year-round destination brand
TARGET AUDIENCE Our target audience is active and interested in pursing passions in a world-class environment. Our demographics include 25-54 active adventurers considering a mountain
resort vacation. Our markets include Destination (with top 5 of TX, CA, FL, IL, NY) and International focus while maintaining Front Range. Our target also includes specific groups &
targeted media.
SUMMER 2011 STRATEGY • Support a world-class infrastructure enabling the physical, emotional and cultural pursuits of passions through leisure travelers and groups/programs/camps • Improve
% of Destination and International guests while retaining Front Range guests • Provide reason to believe followed by reasons to make a decision/purchase
SUMMER 2011 STRATEGY • Promote value message – But never “on sale” – By strengthening the brand – Offering proof points – Provide guests w/compelling lodging/event packages – Sense of
urgency/close the deal • Continue pulsing strategy by making Vail top of mind – Right person, Right offer, Right time • Promote world-class event platform, programs – Offer further proof
and contribute to our economic vitality
SUMMER 2011 STRATEGY • Continue to develop and promote new Vail 360 programs – Using Carmichael as success model • Leverage existing partnerships and ambassadors – Chris Carmichael,
Ellen Miller, Jenny Potter, Brad Ludden • Continue to leverage the loyal customer database, partnerships/programs channels
SUMMER 2011 STRATEGY: REFINEMENTS • Redirect efforts from merchant offers to driving lodging occupancy – Via partner efforts/event & lodging packages • Revisit the Concierge Program
– How to make it relevant? • Assess metrics and data on a weekly basis – Allowing partners to respond and react quicker • Improve implementation and process – Brand foundation set in
2010
NEXT STEPS • Refine Objectives and Strategies • Partners to develop Budget and Tactical Allocations • Present Tactics and Budget to VLMDAC 9/9 • Present to Town Council 9/21