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Home My WebLink AboutVLMD2013OperatingPlan9 18 (2) VAIL LOCAL MARKETING DISTRICT 2013 OPERATING PLAN & BUDGET September 18, 2012 TOWN COUNCIL ECONOMIC GOALS •Improve economic vitality •Embrace an international focus in our destination strategy – flights, events, marketing •Improve the quality of group business •Be proactive in our event partnerships •Advance well-being •Improve the quality of the resort experience and ensure we are on the cutting edge of technology 2012 HIGH LEVEL RESULTS (thru July/August 2012) MTRIP Occupancy: +6.5% Sales Tax: +4.8% Lodging Tax: +7.8% Group Room Nights: +24% Awareness: 89% NPS: 82 (+10 points) Vail.com 700K Visits +31% Overnight visits 77.5% +2.2% Int’l Visits 3% Flat Mexico/Latin America: 35% Destination Visits 55.8% + 8.5% 2013 OBJECTIVES 2013 MARKETING OBJECTIVES Continue the momentum and build on the powerful leadership position of the year-round Vail brand 1.Increase May – October Occupancy 2.Increase Sales & Lodging Tax Revenue 3.Increase Group Occupancy 4.Optimize Visitor Mix 5.Increase Net Promoter Score 6.Increase Vail Brand Awareness 2013 STRATEGIES WHAT’S NEW FOR SUMMER 2013 •Gondola •50th Anniversary •Epic Discovery (Phase I) •New Retail & Restaurants •Welcome Center •Lionshead bus stop & plaza •Refine key brand messages to support world -class outdoor recreation, culture and well -being •Use Burke Brand Research findings to deliver communication of the “reasons to come” – outdoor recreation, friends & family, events, lodging offers •Bring the brand to life in unexpected ways, including non - traditional methods and alignment with events •Continuously deliver fresh content keeping the year -round Vail brand dynamic 2013 STRATEGIES 2013 STRATEGIES •Maximize high traffic periods (Fri – Sun), optimize off peak (Mon – Thurs) periods with groups and events •Continue to leverage the loyal customer •Improve % of Destination and Mexico/Latin American guests while retaining Front Range guests (optimize mix) •Improve the resort experience through guest service initiatives and technology •Lay the foundation for Vail to be relevant to a younger demographic MEASUREMENTS & METRIC GOALS 2013 Goal: Increase YOY Occupancy 3% LODGING OCCUPANCY OCCUPANCY / ON THE BOOKS (MTRIP) 2013 Goal: 3% Overall YOY Increase MAY JUNE JULY AUG SEPT OCT 2011 Actual 14%44%60%51%37%31% 2012 Actual 17%45%63.7%54% 0% 10% 20% 30% 40% 50% 60% 70% +3% +1% +3.7% Total Vail Bed Base: 3,954 short-term MTRIP Represents: +/- 60% +3% SALES TAX REVENUE 2013 Goal: Increase Sales Tax Revenue Exceed annual inflation, as measured by the Consumer Price Index (consistent with the Economic Council goals) SALES TAX REVENUE (As Of: 7/31/12) SALES TAX 2011 ACTUAL 2012 ACTUAL YOY Change YTD INCREASE MAY $473,292 $472,576 -.2% JUNE $898,270 $959,431 6.8% JULY $1,481,239 $1,559,274 5.3% 4.8% $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 MAY JUNE JULY 2011 ACTUAL 2012 ACTUAL-.2% +5.3% +6.8% TOV LODGING TAX REVENUE (As Of: 7/31/12) LODGING TAX 2011 ACTUAL 2012 ACTUAL YOY Change YTD INCREASE MAY $ 60,012 $ 61,075 1.7% JUNE $210,859 $237,903 12.8% JULY $386,954 $410,142 6.0% 7.8% +1.7% +6% +12.8% $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 MAY JUNE JULY 2011 ACTUAL 2012 ACTUAL GROUP & MEETINGS OCCUPANCY 2013 Goal: 5% Overall YOY Increase GROUP & MEETINGS OCCUPANCY 2013 Goal: 5% Overall YOY Increase 8,957 11,149 0 2,000 4,000 6,000 8,000 10,000 12,000 Room Nights 2011 2012 +24% YOY as of 7/31 Jan. – Dec. OPTIMIZE VISITOR MIX 2013 Goal: Increase In-State Overnight, Out of State and Int’l OPTIMIZE VISITOR MIX Local In-State Day In-State Overnight Out of State Int'l 2007 8.5%3.3%19.2%63.3%5.7% 2010 10.8%13.9%25.2%47.3%2.8% 2012 17.4%5.1%18.9%55.8%2.8% 2013 Goal 11.0%4.0%20.0%60.0%5.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%2013 Goal: Increase In-State Overnight, Out of State and Int’l AWARENESS LEVEL 2013 Goal: Increase Vail’s Awareness from 89% to 96% 2013 Goal: Increase Recent Visitation from 6% to 8% AWARENESS LEVEL (Burke Brand Research 2011) Aspen Vail Beaver Creek Brecken- ridge Keystone Heavenly 4% 6% 8% 2% 8% 4% 0% 96% 89% 96% 54% 86% 65% 30% % Aware % Visiting 2013 Goal: Increase Vail’s Awareness from 89% to 96% 2013 Goal: Increase Recent Visitation from 6% to 8% 2013 Goal: 86 NET PROMOTER SCORE NET PROMOTER SCORE 0 10 20 30 40 50 60 70 80 90 100 2007 2010 2012 2013 GOAL 62 2013 Goal: 86 82 72 2013 PLAN SUMMARY OF GOALS MTRIP Occupancy: +3% Sales Tax Increase Lodging Tax Increase Exceed annual inflation as measured by CPI Group Occupancy: +5% Destination Visits: 60% of Mix International Visits: 5% of Mix Awareness: 96% NPS: 86 OVERVIEW OF BUDGET SHIFTS 2013 BUDGET Lodging Revenue Projections: $2.2 Million VLMD Expenses: Plan A: $2,345,725 (flat YOY) Plan B: $2,571,725 2012 VLMD Budget: $ 2,341,225 $509,000 , 22% $190,500 , 8% $412,000 , 18% $427,500 , 18% $92,000 , 4% $80,000 , 3% $93,425 , 4% $55,000 , 2% $7,500 , 0% $24,500 , 1% $30,000 , 1% $34,800 , 2% $315,000 , 14% $70,000 , 3% Destination International Front Range Groups and Meetings Public Relations Photography/Video Research Web Site Admin Misc Web & Email Marketing Branding Contingency Professional Fees Event Funding 2013 VLMD Budget A: $2,345,725 $463,500 , 19.8% $206,500 , 8.8% $410,000 , 17.5% $427,500 , 18.2% $92,000 , 3.9% $85,00 0 , 3.6% $107,225 , 4.6% $45,00 0 , 1.9% $7,500 , 0.3% $4,000 , 0.2% $25,00 0 , 1.1% $37,500 , 1.6% $335,000 , 14.3% $100,000 , 4.3% Destination International Front Range Groups and MeetingsPublic Relations Photography/Video Research Web Site Admin Misc Email Marketing Branding Contingency Professional Fees Event Funding 2013 VLMD Budget B: $2,571,725 $557,000 , 21.7% $266,500 , 10.4% $410,000 , 15.9% $537,500 , 20.9% $92,00 0 , 3.6% $85,000 , 3.3% $107,225 , 4.2% $45,00 0 , 1.7% $7,500 , 0.3% $4,000 , 0.2% $25,000 , 1.0% $335,000 , 13.0% $100,000 , 3.9% Destination International Front Range Groups and Meetings Public Relations Photography/Video Research Web Site Admin Misc Email Marketing Branding Professional Fees Event Funding QUESTIONS? 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