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HomeMy WebLinkAbout2014_09_05 Oktoberfest RFP Vail Oktoberfest Vail Commission on Special Events 2014 Event Funding Application Applied for by: 2012 & 2013 Event Marketer Magazine’s “Top 100 Event Agency” 12 Vail Rd. Suite 500, Vail, CO 81657 (970) 476-6797 www.gohighline.com VAIL COMMISSION ON SPECIAL EVENTS 2014 EVENT FUNDING APPLICATION NAME OF EVENT: Vail Oktoberfest PROPOSED DATE(S): September 5-7 & 12-14, 2014 AMOUNT OF CASH FUNDING REQUESTED: $ 85,000 PRODUCING ENTITY: Highline Sports & Entertainment, Inc. 1) President/executive director's name: Jeff Brausch 2) Name/title of person completing application: Jeff Brausch 3) Business Address: 12 Vail Rd., Suite 500, Vail, CO 81657 4) Contact info: Telephone: 970/476-6797 xt.703 Cell: 970/393-2128 Fax: 970/476-6890 E-Mail Address: jeff@gohighline.com 5) Website address: www.gohighline.com | www.vailoktoberfest.com 6) Number of years your organization has been in business __16____ 7) Mission Statement: To foster a culture in which Highline team members are challenged to excel in providing all customers with exceptional service, extensive knowledge and an unwavering commitment to ethical excellence…not only to complete client satisfaction-but beyond all expectations! 8) Organization's tax status: For Profit__X_ Non-Profit*____ Not-for-Profit*____ Non-Profit (501 C-3), or Not for Profit (501 C-6) organizations, please attach current State Department of Revenue Certificate with this application. • Does the event benefit a charity? Yes_X__ No___ • If yes, please name the beneficiary: Children’s Garden of Learning Tax payer ID#: 84-1331831 EVENT DESCRIPTION 1) Brief Description of Event: Traditional Oktoberfest Celebration - A Festival of Beer, Food, Music and Fall in Vail 2) Describe where the event will be located within the Town of Vail: Vail Village & Lionshead 3) Will any portion of the event take place outside of the Town of Vail? i. __Yes _x_No If yes, please explain: 4) Will additional in-kind services be required from the Town of Vail? Yes X No ____ If yes, please explain, including a description of anticipated impacts on Town of Vail services: i.e. bus service, parking, traffic control, street closures, etc.: We will require barricades to control the perimeter of the beer gardens during the event as well as TOV police support for crowd control. 5) Is this a: New event ___ Existing event X 9th year for HSE Number of years in existence: 22 Location(s) of event in previous years: Same locations as proposed for 2013. 6) People: • Number of participants (athletes, artists, exhibitors, etc.) anticipated: 200+ runners for the Oktoberfest Fun Run • Number of volunteers needed 50 Number of event staff 30 • Total Number of spectators/attendees anticipated 50,000 attendees over six event days (completely weather dependant) o Local 41% and 8.5% of those are season residents o In-state (non-local) 19% o Out of State 40% 7) Brief description of potential benefits to the Town of Vail, including an estimated # of incremental room nights and increased spending generated. Estimated Incremental Room Nights and Revenue Generated by the 2013 Vail Oktoberfest 2014 Estimated Incremental Spending Incremental Room Nights Estimated attendance: 50,000 Those who came just for the event: 60% Those staying in Town of Vail lodging: 50% Average nights stay in Vail: 2 Total Incremental Room Nights: 15,000 (double occupancy) Incremental Spending Estimated attendance per day: 8,350 Average amount spent: $100 Event Days: 6 Total Incremental Spending: $5,010,000 Average lodging price per person per night: $100 Incremental room nights: 15,000 (2ppl/room) Subtotal spent on lodging: $3,000,000 Number of days in Vail not for event: 1.0 Number of people staying additional days: 1,000 Average amount spent per day: $100 Subtotal spent on non-event days: $100,000 Total Estimated Incremental Spending: $8,110,000 8) What return on investment should the Town of Vail expect? 2014 Town of Vail Estimated Return on Investment Town of Vail Investment $85,000 Total Value of Media, Public Relations and Event Related Impressions for a top-tier Presenting Sponsor (such as the Town of Vail) (measured by Event Industry-accepted means). This number is based on the projected PR and marketing for this event and estimates from this event last year and other similar events. $200,000 Return on Investment through Media, PR and Event Related Impressions alone: 1.4-to-1 Est. Incremental Room Nights Generated 15,000 (2ppl/room) Incremental Spending Generated $8,110,000 Tax Receipts (Sales - 4%, Lodging-5.4%) $366,400 Return on Investment through Incremental Spending in the Town of Vail: 3.3-to-1 BUDGET 1) Detailed event budget, including all anticipated revenues and expenses. 2014 Event Income Statement (Pro Forma) Revenues: CSE Contribution $85,000 Sponsorship 45,000 F&B & Stein Sales 100,000 Total Revenues 230,000 Expenses: Event Site: Permits 1,275 1,275 Event Equipment & Rental Expenses: Food & Bev. 35,000 Signage, Kids Activ., Steins, Decorations, Supplies, etc. 27,000 Rental Items (dumpsters, porta potties, etc.) 21,000 Bands, Stages, Sound 57,000 133,000 Manpower & Related Expenses: Labor/Announcers 15,000 Town of Vail Police, Security 20,000 35,000 Public Relations/Marketing/Advertising: Public Relations 4,000 Advertising/Marketing 10,000 21,000 Administrative: Proposals/Insurance/Supplies/Phone/Postage 18,000 Management Fee 15,000 33,000 Sponsor Relations: Lodging/Entertainment/Gifts/Transportation 5,000 5,000 Total Expenses: 228,275 Net Income: (loss) $1,725 2) What percentage of the total event budget is CSE being asked to fund? 37% 3) Please describe briefly how you will use the funds that you are requesting from the CSE: To mitigate the marketing and operational expenses associated with the successful production of the event. 4) Should the CSE decide not to support this event, will it still occur? No. As seen in the past, the financial risk is simply too great for us. 5) What is the dollar amount of sponsorships from alternative sources reflected in the event budget? 45,000 6) What percentage of the total event budget do you expect the event itself to generate? 44% 7) If possible, would you intend to host the event in Vail beyond 2014? Yes X No ____ If yes, for how many years beyond 2014? As many as years as it makes sense financially for Highline and to the TOV. 8) Do you anticipate requesting funding from the CSE next year? Yes X No _____ If yes, in what amount? TBD. Highline Sports always has and always will continue to sell sponsorships on its properties to help cover the numerous operating and marketing expenses to make Vail Oktoberfest a success. Additionally, a full-out media blitz will be implemented to generate mass media impressions. ADDITIONAL REQUIRED ATTACHMENTS: 1) References – Highline has been producing events in Vail for more than 15 years 2) What mechanism are you using to direct non-local attendees to Vail lodging options? Non- local attendees will be directed to Vail lodging options via call-to-actions placed in event advertising and collateral materials. These items to include newspaper print ads, web, posters, handbills, social media inclusions and through phone inquiries via phone directing public. 3) Marketing plan and detailed explanation of potential for sponsorships and media exposure. Marketing Plan • An extensive, traditional media campaign will be run for the event featuring outdoor, print, radio and television. The campaign will focus on the following media outlets in the front-range and Vail Valley… An estimated $100,000 in media value will be delivered by this integrated campaign. • A strong regional PR campaign will key on the Oktoberfest good times. The campaign is expected to generate over $100,000 in equivalent media exposure. • Oktoberfest will once again feature a stand-alone web site offering schedules, news and event pics. • Facebook, Twitter and direct broadcast emails will be targeted to our audience. • Numerous collateral and competitor materials will be posted and disseminated throughout the Colorado target region including 4-color Postcards and Posters. 4) PR/Marketing Contacts: PR CONTACT: Missy Johnson, Account Manager, Highline, 970-476-6797 x712, missy@gohighline.com MARKETING CONTACT: Missy Johnson, Account Manager, Highline, 970-476-6797 x712, missy@gohighline.com 5) Previous year's event evaluation, including income and expense statement (if existing event). Vail Oktoberfest included two full weekends, the event took place September 6 - 8 and September 13 -15, 2013, of oom-pah-pah parties in Lionshead and Vail Village. Emulating one of the largest celebrations in the world, the streets of Lionshead and Vail Village were filled with beer, bratwursts, live music and dancing...making it one of the very largest party all year in Vail. German spirit was ever-present during six days filled with Bavarian tunes, yodeling and alpenhorn blowing, and popular activities such as the Klement’s Bratwurst Eating Competition, Adult Keg Bowling Contest and the extremely popular Bavarian Costume Contest and the Stein Lifting Competition. The Hacker-Pschorr beer was a well-received addition. Some of the strengths and weaknesses are as follows: • Strong sponsorship – Vail Oktoberfest was presented by Hacker-Pschorr, Town of Vail and Vail Dentistry, and sponsored in part by Bighorn Toyota, Arrowhead Water, Sonnenalp Hotel, Jägermeister, Klement’s Sausage Company, Loki, Vail Marriott Mountain Resort, Shawls by Veronika, Vail Daily and KZYR the Zephyr • Estimated attendance/visitors in Vail during the weekends of Vail Oktoberfest was 50,000+. The best attended Vail Oktoberfest ever since Highline has produced it. • It was a festive and well-mannered audience. • There was a strong mix of food and beverage options. • The entire venue was further enhanced to meet an authentic look and high quality standards including tents supplied by Highline, additional pageantry as well as branding that complemented the venue from the Hacker-Pschorr sponsorship • Each vendor was supplied with a blue or white tent (and blue table cloth) to create consistency and a sharp look and feel throughout the venue • There was a strong vendor presence with Bavarian food varieties from eight to ten food vendors including two new restaurant vendors • Vendor signage was limited to create a more uniform look throughout the venue including standard menu and restaurant valence signs • Bavarian Costume contest, Stein Lifting Competition and a photo component returned again this year created additional entertainment • The Kids Entertainment was enhanced with the inclusion of a children’s craft area (with coloring, pretzel necklace making) and photo opportunities for families to enjoy in addition to the entertainer tent. • The Oktoberfest Fun Run was well attended and raised much needed funds for the Children’s Garden of Learning. • We were extremely lucky with good weather for the most part. • Highline may consider allowing guests to use credit cards to purchase tokens • Highline was able to increase guest seating this year but if the footprint were to grow, it would be ideal to increase the seating further • Continue to pay close attention to how the garbage and recycling is disposed • Take another look at sponsorship and not including brands that aren’t as relevant to the event • Continue to set standards for all vendors and/or sponsors to fit the Vail Brand and venue standards 6) Past or projected demographics of event attendees and spending. 2014 Projected Demographics Vail Oktoberfest’s audience is expected to attract the older and typical of the much sought after high- end, high-consuming Vail audience. The event is created to capture a wide range of customers to include young singles (21+) as well as couples and families. We anticipate the average age will be 45 with HHI of $150,000++. 7) Organization rosters naming: • All officers and respective positions • Board of Directors and positions Highline Sports & Entertainment, Inc. Roster • Jeff Brausch, President/CEO • James Deighan, Partner Employees: • Peggy Wolfe, Director of Events • Katie Tille, Executive Producer • John McGuire, Executive Producer • Jeff Seme, Senior Event Manager • Missy Johnson, Sponsorship Manager • Chris Dolan, Director of Client Services • Jim Nagy, Account Manager • Kelli Brausch, Controller/CPA • Ryan McNamara, Production Assistant • Dave Cronin, Assistant Event Manager