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!