HomeMy WebLinkAbout2014 VLMD Operating Plan Memo FINAL
To: Vail Local Marketing District
From: Vail Local Marketing District Advisory Council
Date: September 17, 2013
Subject: Vail Local Marketing District 2014 Operating Plan and Budget
I. BACKGROUND
The mission of the Vail Local Marketing District is to market and promote Vail to attract
overnight destination guests primarily during the May – October time frame, creating
economic vitality by increasing both the visitor base and sales tax revenues. Results to
date show an increase in sales tax collected, room nights and event attendance over
the summer of 2012.
The marketing objectives outlined in the VLMD operating plan are:
Continue the momentum and build on the powerful leadership position of the year-round
Vail brand in order to:
Increase May – October occupancy
Increase sales tax revenue
Increase group occupancy
Optimize visitor mix
Increase net promoter score
Increase Vail brand awareness
II. BUDGET DETAIL
Revenue from lodging tax collections is estimated at $2,600,000 for 2014. The
assumptions for this projection are consistent with the town’s expected sales tax
revenue for 2014. Regarding expenditures, the attached budget proposal includes
$2,800,000 for 2014 programs. The ending fund balance currently present of $946,570
is 36% of annual revenues, Council directive is 25% of annual revenues.
The following shifts are recommended from the 201 3 forecast to the 2014
budget to address recent successes and opportunities and to achieve the outlined
marketing objectives:
Town of Vail Page 2
Destination budget increases 16% to provide emphasis in key markets
domestically in an effort to optimize overnight guests as part of the visitor mix
International budget stays flat, recognizing successes from 2013 and building on
the inroads made in the Latin American/Mexican markets
Front Range budget decreases 11% to shift emphasis to destination overnight
guests
Groups and Meetings budget increases 6% to provide additional emphasis on
medical meetings, corporate meetings and participatory sports tournaments as
well as a new collateral piece for the meetings market trade shows
PR budget stays intact to maintain a prominent presence regionally, nationally
and internationally
Research budget decreases $40,000 because Burke Brand Research study was
done in 2013 and is only scheduled every other year
Photography/video increases by $25,000 (31%) to continue to build the archives
with new and exciting still shots and video opportunities
Branding increases 38% ($30,000), partially due to savings in 2013 and also to
evolve the look and feel for summer to be parallel to and consistent with ski
season branding
Professional Fees increase 2%
Event Marketing increases by 4% for expanded scope of work for the event
liaison and with a placeholder for the USA Pro Challenge
The budgetary changes outlined above reflect the goal of shifting dollars to attract more
overnight destination guests to Vail through additional outreach and programs in 2014.
Town of Vail Page 3
III. ACTION REQUESTED OF VAIL LOCAL MARKETING DISTRICT
VLMDAC recommends that VLMD approve the 2014 Operating Plan and budget of
$2,800,000.
ATTACHMENTS
VLMD 2014 Operating Plan and Budget
VLMD 2014 Strategic Plan