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HomeMy WebLinkAboutVLMD2014Sept17PresentationFINALFINAL VAIL LOCAL MARKETING DISTRICT MEETING September 17, 2013 2014 STRATEGIC OPERATING PLAN & BUDGET “Skate to where the puck is going, not to where it has been.” - Wayne Gretzky Situation Assessment 2013 Results To Date (thru Sept. 2, unless noted) 2013 GOAL RESULT YTD Sales Tax Exceed annual inflation +3.3% (May, June & July) Destimetrics Occupancy +3% +2% (thru August) Destination Mix 60% 43% (down from 56%) International Mix 5% 2% (flat) IS Overnight Mix 20% 19% (flat) Total Overnight Visits NA 64% (down from 78%) Group Room Nights +5% +5% Awareness 96 89% (2012 result) NPS 86 80 (flat) Business Goals 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 Marketing Objectives 2014 Marketing Objectives Continue the momentum and build on the powerful leadership position of the year-round Vail brand 1.Increase Sales Tax Revenue 2.Increase May – October Occupancy 3.Increase Group Occupancy 4.Optimize Visitor Mix 5.Increase Net Promoter Score 6.Increase Vail Brand Awareness 2014 STRATEGIES What’s New For Summer 2014 •Gondola One •Adventure Ridge (Epic Discovery Phase 2) •New on-mountain activities include Zip Line and Ropes Courses •2014 activities include summer tubing and Rock Climbing (Pending Forest Service approval) •New Retail & Restaurants •New Events & Activation (Feast Vail, Vail/BCRestaurant Week, King of the Mountain, 4th of July, Guided hiking & biking) •Deeper integration of Health & Wellbeing into brand positioning and messaging across all disciplines •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 2014 Strategies 2014 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, Front Range Overnight and Mexico/Latin American guests while retaining Front Range day guests (optimize mix) •Improve the resort experience through guest service initiatives and technology •Lay the foundation for Vail to be more relevant with a younger demographic 2014 METRICS & MEASUREMENTS Sales Tax Revenue 2014 Goal: Increase Sales Tax Revenue 5.2% (2013 Goal: Exceed annual inflation, as measured by the Consumer Price Index; consistent with the Economic Council goals) TOV Sales Tax Revenue SALES TAX 2011 2012 2013 YOY Change MAY $473,292 $489,056 $518,088 +5.9% JUNE $898,270 $964,989 $1,013,678 +5.05% JULY $1,481,239 $1,576,016 $1,597,747 +1.38% AUGUST $1,311,048 $1,337,341 SEPT. $890,383 $949,214 OCTOBER $624,457 $562,168 TOTAL $5,679,778 $5,929,931 +5.9% +5.0% 2014 Goal: Increase Sales Tax Revenue 5.2% +1.38% $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 MAY JUNE JULY AUGUST SEPT OCT TOTALS 2011 2012 2013 2014 Goal: Increase YOY Occupancy 4% (2013 is up 2% May - August; 2012 was up 6.7%) Lodging Occupancy Occupancy/ On The Books (DestiMetrics as of August 31, 2013) 2014 Goal: 4% Overall YOY Increase +31% 2011 14% 44% 60% 51% 29% 10% 2012 17% 44% 62% 53% 34% 12% 2013 21% 46% 57% 53% 34% 13% Total Vail Bed Base: 3,954 short term DestiMetrics Represents: +/- 60% September & October are YTD/pace YOY numbers +4% -8% +.2% -1.9% +18% Group & Meetings Occupancy 2014 Goal: 8% Overall YOY Increase in Room Nights (2013 was Increase of 5% YOY) Group & Meetings Occupancy 2014 Goal: 8% Overall YOY Increase 0 2000 4000 6000 8000 10000 12000 14000 2011 2012 2013 8,957 11,814 11,149 Group Occupancy/Room Nights based on calendar year Optimize Visitor Mix 2014 Goal: In-State Overnight to 32% Out of State to 50% International (Mexico) to 3% Optimize Visitor Mix (thru Sept. 2, 2013) 2014 Goal: Increase In-State Overnight, Out of State and Int’l Local In-State Day In-State Overnight Out of State International 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 STD 30.0% 6.0% 19.0% 43.0% 2.0% 2014 Goal 11.0% 4.0% 32.0% 50.0% 3.0% MSA-PMSA (Excluding Colorado) (thru Sept. 2) Three of the top ten MSA-PMSAs of Vail summer visitation are in Texas. MSA-PMSA (Including Colorado) (thru Sept. 2) Awareness Level 2014 Goal: Increase Vail’s Awareness to 96% Same Goal as 2013 Awareness Level (Burke Brand Research 2011) Aspen Vail Beaver Creek Brecken- ridge Keystone Heavenly 96% 89% 96% 54% 86% 65% 30% % Aware 2014 Goal: Increase Vail’s Awareness from 89% (2011) to 96% 2014 Goal: Increase NPS Score to 86 Same Goal as 2013 Net Promoter Score Net Promoter Score (thru Sept. 2, 2013) 62 82 72 0 10 20 30 40 50 60 70 80 90 100 80 2014 Goal 86 2007 2010 2012 2013 2014 2014 Summary of Goals Sales Tax Increase: +5.2% Destimetrics Occupancy: +4% Group Occupancy: +8% Destination Visits: 50% of Mix International Visits: 3% of Mix IS Overnight Visits: 32% of Mix Awareness: 96% NPS: 86 OVERVIEW OF BUDGET 2014 Budget Lodging Revenue Projections: $2.6 Million VLMD Expense Budget: $2.8 Million *Additional funds coming from fund balance, potential 2013 lodging tax revenue increase and/or a combination of 2013 savings 2013 VLMD Budget: $2,671,725 2014 VLMD Budget: $2,800,000 2013 Amended 2014 Plan Destination 577,850$ 21.6%692,342$ 24.7% International 242,500$ 9.1%262,000$ 9.4% Front Range 424,843$ 15.9%380,000$ 13.6% Groups and Meetings 537,500$ 20.1%570,000$ 20.4% Public Relations 92,000$ 3.4%92,000$ 3.3% Photography/Video 80,000$ 3.0%105,000$ 3.8% Research 110,725$ 4.1%70,158$ 2.5% Web Site 49,000$ 1.8%49,000$ 1.8% Admin Misc 7,500$ 0.3%7,500$ 0.3% Branding 80,000$ 3.0%110,000$ 3.9% Savings 19,807$ 0.7%0.0% Professional Fees 335,000$ 12.5%342,000$ 12.2% Event Funding 115,000$ 4.3%120,000$ 4.3% 2,671,725$ 100%2,800,000$ 100% 2013 vs. 2014 Budget Comparison Questions? Thank you!