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Home My WebLink About3. CouncilMay20_Combined_Research Results VAIL LOCAL MARKETING DISTRICT MAY 20, 2014 Business Goals Town Council Areas of Focus Enhance Economic Vitality One of the Town Council’s Areas of Focus in the 2014 -16 Council Action Plan is to enhance economic vitality, as shown on the previous chart. The goal is to grow a vibrant and diverse economy that keeps us at the forefront of our resort competitors for the long -term. A key initiative has been identified to develop a long-term plan to enhance our competitiveness as a resort community. This is the first step in developing that plan with the Vail Local Marketing District Advisory Council. 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 •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 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 2014 VLMD Budget: $2,800,000 CATEGORY INSIGHTS At the outset, we knew some things were working well. But competitors were approaching. And not enough travelers were thinking of Vail for a summer trip. Creative & messaging differentiation are critical to help us win more visits and gain back share. •Our focus is on selling brand Vail, not category benefits •Beautiful scenery and happy people may sell a mountain vacation, but they don’t lean into brand Vail or our icon status •We don’t need to be everything for everyone; we need to demonstrate “Why Vail?” to the right people Vail is an iconic brand, and we need to reflect that in our messaging, artwork and behavior. •We know all the reasons, features, amenities, people and scenic vistas that make Vail, Vail - now we want to better share that with potential guests. VAIL BRAND Category Truth Consumer Truth Brand Truth Consumer Truth I’m seeking extraordinary experiences that give me a sense of mindfulness. Category Truth We’re the premiere mountain getaway with events and activities for the whole family. Brand Truth The substance you seek, the participation you crave, in a one-of-a-kind luxury wilderness experience. Luxury Wilderness High quality Fulfilling Active Participation Sophisticated Do and Be Personal Challenges Substance with Style Pretentious Inauthentic Passive Image-Oriented See and Be Seen Vacation Challenges Style Over Substance WHAT IT IS WHAT IT ISN’T Brand The substance you seek, the participation you crave, in a one-of-a-kind luxury wilderness experience. Consumer I’m seeking extraordinary experiences that give me a sense of mindfulness. Category We’re the premiere mountain getaway with events and activities for the whole family. Goodness Vail. Like Nothing on Earth. Month Date, Year 28 Summer 2014 Campaign – Brand Ads Month Date, Year 29 Summer 2014 Campaign – Brand Ads Month Date, Year 30 Summer 2014 Campaign – Brand Ads Month Date, Year 31 Summer 2014 Campaign – Brand Ads Month Date, Year 32 Summer 2014 Campaign – Digital Banners Month Date, Year 33 Summer 2014 Campaign – OOH Month Date, Year 34 Summer 2014 Campaign – OOH Month Date, Year 35 Summer 2014 Campaign – Event Ads Month Date, Year 36 Summer 2014 Campaign – Event Ads Vail Summer Research The Goals 1) Help us understand how to get maximum impact from our limited budgets. Questions we answered: •Who should we be talking to? •What are their motivations? •How can we use that info to our advantage in messaging, imagery and placement? 2) Complement the Burke and intercept studies to better understand our opportunity customers and how we can get them to convert more frequently. •Looking beyond just our current customer to our potential growth target •Establishing the right message and the right place and at the right time Focus: Destination Travelers •N=1,000 -US National, with priority markets including: Houston, Dallas, Chicago, St. Louis, and New York City -Gender: 50% Male / 50% Female -HHI $100k+ -25%+ $100-149k -25%+ $150-199k -25%+ $200-249k -25%+ $250k+ -Ages 25-64 years old: -10%+ 25-34 -10%+ 35-44 -10%+ 45-54 -10%+ 55-64 •Has visited a North American mountain resort in the past 5 years Sampling •Quantitative •Online •15-20 minute Length of Interaction •Consumer Decision Journey for summer vacation planning •Likelihood of visiting a Vail mountain resort in the summer •Goodness Beauty Contest -12 Driver statements -12 Barrier statements -12 Conversion statements •Media engagement preferences Survey Study Approach Target Identification 4 1 21% 19% 14% 13% 10% 24% 21% 20% 16% 12% 25-34 Years… 35-44 Years… 45-54 Years… 55-64 Years… 65-74 Years… Target Identification - Key Variables How likely are you to consider Vail for your next summer vacation? % Highly Likely (6-7 on a 1-7 scale) 13% 19% 16% 22% Male Female Before Messaging After Messaging 15% 17% 15% 16% 18% 18% 20% 20% $100,000 - $149,999 $150,000 - $199,999 $200,000 - $249,999 $250,000 or more •Females were more likely than males to consider Vail, but both genders were positively affected by messaging. As a result, a slight female skew is recommended. •Age is inversely correlated with consideration; younger consumers are more likely to consider Vail. We recommend focusing marketing resources on the most likely customers - 25-54 year olds. •Although individuals with higher HHI are more likely to consider Vail, the $100- 199k HHI consumers are not far behind. Coinciding with the inclusion of 25-34 year olds, we recommend including all individuals with $100k+ HHI in the marketing target. 4 2 23% 13% 24% 17% Has Children Under 18 At Home Does Not Have Children Under 18 At Home Target Identification - Other Variables How likely are you to consider Vail for your next summer vacation? % Highly Likely (6-7 on a 1-7 scale) 15% 16% 24% 19% Single (not living with a partner) Married / living with a partner Before Messaging After Messaging •Despite being less likely to consider Vail before going through our messaging battery, Single individuals were more likely to do so afterward. •We saw a greater difference determined by whether or not an individual has children. Those that do are much more likely to consider Vail - both before and after messaging. •Therefore, we’d like to recommend that our target include those with children, regardless of marital status. 4 3 Recommended Vail Summer Marketing Target •Ages 25-54 •Has children 17 years old or younger living at home •At least $100K HHI •Slight female skew •No other demographic restrictions or skews Driving conversion in a crowded marketplace requires a holistic and detailed understanding of what consumers look for at every stage of the purchase process - from Trigger all the way through the Moment of Truth and beyond. Trigger •Previous Experience •Destination Awareness •Trip Inspiration 4 6 Previous Experience - General Note: Results are shown for the Marketing Target Survey Question: Q10. “What was the last summer vacation destination you visited? Please select one.” 27% 15% 12% 12% 11% 10% 7% 3% 1% 1% Beach vacation Mountain vacation National park City visit in the US Theme park Family visit Country visit outside the US Cruise Nature / Adventure tour Spa / Exercise / Health & Wellness retreat Last Summer Vacation Destination Visited 4 7 Previous Experience - Mountain Resort Destinations Note: Results are shown for the Marketing Target Survey Question: Q30. “When was the last time you visited a mountain resort?”; Q32. “Was your last mountain resort vacation during the winter or summer seasons (as defined below)?”; 25% 40% 17% 6% 5% 7% This year (2014) Last year (2013) Two years ago (2012) Three years ago… Four years ago (2010) Five years ago (2009) Last Mountain Resort Vacation Timeframe 54% 46% Winter (November -… Summer (May - October) Last Mountain Resort Vacation Season •Most of our target audience has visited a mountain resort in the past 18 months, most likely in the winter. 4 8 Destination Awareness & Experience Note: Results are shown for the Marketing Target, sorted by Awareness. Survey Question: Q26. “Which of the following mountain destinations have you ever seen or heard of? Please select all that apply.”; Q27. “Which of the following mountain destinations have you ever visited for a summer vacation? Please select all that apply.” 86% 85% 79% 76% 71% 70% 67% 66% 57% 55% 40% 20% 21% 27% 8% 10% 7% 13% 13% 11% Lake Tahoe Aspen Vail Breckenridge Park City Telluride Whistler / Blackcomb Steamboat Keystone Beaver Creek Mountain Destination Awareness & Summer Experience Awareness Has Visited •Vail is currently in third place among North American mountain destinations in terms of consumer awareness (behind Tahoe and Aspen) and summer experience (behind Tahoe and Breckenridge). 4 9 Note: Results are shown for the Marketing Target Survey Question: Q11. “Where did you learn about or get inspired for summer destinations? Please select all that apply.” 74% 34% 19% 18% 17% 14% 11% Friends and family Travel review sites Travel shows on television Travel magazines Discount travel sites / email alerts Social media Special interest media Learning & Inspiration about  Summer Vacation Destinations Trip Inspiration •Our target audience’s favorite sources to get inspired about vacation destinations is their friends and family, followed by travel review sites (i.e., TripAdvisor). Consideration •Destination Consideration •Decision Factors 5 1 Note: Results are shown for the Marketing Target, sorted by Considered for Last Vacation Survey Question: Q28. “Which of the following mountain destinations did you visit or consider visiting this past summer? Please select all that apply.”; Q29. “Which of the following mountain destinations would you consider visiting for your next summer vacation? Please select all that apply. ” 22% 13% 11% 10% 7% 6% 6% 5% 5% 4% 4% 35% 21% 21% 24% 15% 14% 9% 10% 10% 11% 15% Lake Tahoe Breckenridge Vail Aspen Telluride Steamboat North Carolina… Beaver Creek Keystone Crested Butte Whistler / Blackcomb Mountain Destination Consideration for Past & Next Vacations Considered Last Summer Vacation Considering for Next Summer Vacation Summer Destination Consideration •Similar to the standings for awareness and past visits, Vail ranks third among mountain destinations for summer vacation consideration. 5 2 Note: Results are shown for the Marketing Target Survey Question: Q12. “Why did you choose to go to this vacation destination? Please allocate 100 points across the following options, giving more points to the options that were more influential.” 41% 18% 8% 7% 7% 4% 4% 3% 3% 2% 1% Family – Quality time with family Escape – To get away from it all and relax Activity – To participate in a specific/hobby activity Enrichment – To try new things and learn new things Friends – To spend time with my friends Adventure – To participate in high-adrenaline … Tradition – I go to the same place every year Romantic Getaway – To take a vacation with a … Health & Wellness – To enjoy spas, beauty … Special Event – To attend sporting event, cultural … Nightlife – To explore bars, clubs, and other activities … Summer Vacation Destination Choice Drivers Decision Factors •Our target audience is choosing their destination for quality time with family and for a relaxing getaway - not for the nightlife nor special events. Evaluation •Trip Research •Planning 5 4 Note: Results are shown for the Marketing Target Survey Question: Q36. “What different sources did you review / speak with / visit before you decided to book? Please select all that apply.” 58% 37% 14% 13% 8% 6% 3% Friends and family Travel review sites Travel magazines Discount travel sites / email alerts Social media Special interest media Travel shows on television Research & Discussion about  Mountain Vacation Destinations Trip Research •Similar to how our target audience gets inspired about vacation destinations, the top research/discussion sources are friends & family and travel review sites. 5 5 Note: Results are shown for the Marketing Target Survey Question: Q13. “How long before your vacation did you start planning it? Please select one.”; Q17. “How long before your vacation did you make travel reservations? Please select one.”; Q23. “How long before your vacation did you begin to make reservations for activities and/or amenities? Please select one.” 4% 8% 40% 33% 15% 1% 8% 14% 44% 24% 9% 1% 50% 19% 19% 11% 2% 0% One week or less 2-4 weeks 1-3 months 4-6 months 7-12 months Over a year Summer Vacation Planning  Timeframe Before Trip Vacation Planning Making Travel Reservations Making Activity/Amenity Reservations Planning •The planning window for our target audience is 1-6 months prior to their vacation, while their booking window is 1-3 months prior; however, they don’t usually make reservations for activities or amenities until they are at their destination or in the week prior (50%). Moment of Truth •Destination Selection •Reservations 5 7 Note: Results are shown for the Marketing Target Survey Question: Q14. “Who was responsible for selecting the destination for your summer vacation? Please allocate 100 points across the following options, giving more points to the more influential individual(s).”; Q15. “Who booked the accommodation reservations for the vacation?” 46% 29% 19% 5% 1% 0% 65% 20% 11% 4% 0% 0% Myself My partner / spouse My family member(s) My friend(s) Other member(s) of a special interest group I'm in My co-worker(s) Influence & Action on  Summer Vacation Destination Selection Influence Booking •Our target audience feels that they have nearly half (46%) of the total influence on destination selection, followed by their partner/spouse (29%) and family members (19%); however, our survey respondents were usually the ones to book the reservations. Destination Selection 5 8 Note: Results are shown for the Marketing Target Survey Question: Q16. “How did you/he/she make the accommodation reservations?”; Q37. “What factors influenced your choice of final booking website? Please select all that apply.” 77% 13% 4% 1% 1% Online on a computer By telephone Through a travel agent Online via mobile device In person Summer Vacation  Booking Method 62% 44% 10% 8% 8% Price Information about destination Package deals with activities / amenities Package deals with travel Loyalty program / reward points Mountain Vacation  Booking Method Decision Reservations Experience •Activities 6 0 Note: Results are shown for the Marketing Target Survey Question: Q20. “What activities / amenities did you and / or your travel companions participate in on your vacation? Please select all that apply.”; Q21, “Which, if any, activity / amenity made you choose to visit this particular destination? Please select one.” 70% 64% 36% 7% 56% 30% 15% 11% 7% 7% 7% 69% 17% 15% 9% 59% 14% 12% 10% 7% 5% 59% 10% 8% 6% 19% 18% 8% 5% 4% 4% 2% 1% 1% 1% 1% 1% 1% 1% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Rest / Relaxation Hiking / Backpacking Swimming Pool / Jacuzzi Sailing / motor boating Whitewater Rafting Camping Spa / Beauty Treatment Zip Line Fishing Horseback riding Yoga / Meditation Scenic Chairlift / Gondola Ride Tennis Summer Vacation Activities / Amenities Participated In Top Driver of Destination Choice Summer Destination Activities •R&R and Sightseeing are the activities that were most influential in destination choice; although people walk, shop, and dine at restaurants on vacation, those activities alone are not driving destination choice. No single activity, other than the broad categories of ‘Rest/Relaxation’ and ‘Sightseeing,’ got even 10% of the vote. •Statements were developed and tested in several categories in order to understand which concepts and phrases resonate with our target audience. -12 Driver statements -12 Barrier statements -12 Conversion statements •The #1-scoring territory does not automatically become the messaging platform; instead, the top-scoring and bottom-scoring territories inform the messaging platform •This methodology ensures that we focus strategy, media and creative on the messaging we know will resonate with, and more importantly motivate our target audience to act. Messaging Testing 6 2 Note: Results are shown for the Creative Target, which includes the Media Target without rejectors (those who indicated they were unlikely to consider Vail. Survey Question: Q39-44. “Why would you/others be interested in visiting Vail in the summer? (Please allocate a total of 100 points, awarding the most points to the one that is more persuasive)” Nature and family-friendly activities were the most motivating drivers, especially when balanced with resort amenities and actio n / adventure - without having to go camping. Sporting events and cultural events were the least motivating drivers. 149 146 110 107 105 97 93 88 81 81 78 65 I want to enjoy the beautiful scenery and commune with nature I want to be somewhere that has activities for the whole family to enjoy – together and independently I want to experience the very best that nature has to offer, with a touch of indulgence. I want the amenities of a resort, but I also like to get my blood pumping outdoors. I love the mountains but I don’t want to go camping I want to take advantage of luxury amenities, spas, and pampering I want to get away and rejuvenate my physical and spiritual self I want an authentic, high-quality vacation without a superficial “see and be seen” atmosphere. I want to enjoy high-quality culinary experiences – on and off the mountain. I want to challenge myself physically with outdoor activities I want to attend cultural events (music, arts, etc.) I want to attend or participate in sporting / athletic events Drivers (Crowd Score) 100 Drivers 6 3 Note: Results are shown for the Creative Target, which includes the Media Target without rejectors (those who indicated they were unlikely to consider Vail. Survey Question: Q39-44. “Why would you/others be interested in visiting Vail in the summer? (Please allocate a total of 100 points, awarding the most points to the one that is more persuasive)” Nature and family-friendly activities were the most motivating drivers, especially when balanced with resort amenities and actio n / adventure - without having to go camping. Sporting events and cultural events were the least motivating drivers. 149 146 110 107 105 I want to enjoy the beautiful scenery and commune with nature I want to be somewhere that has activities for the whole family to enjoy – together and independently I want to experience the very best that nature has to offer, with a touch of indulgence. I want the amenities of a resort, but I also like to get my blood pumping outdoors. I love the mountains but I don’t want to go camping Drivers (Crowd Score) 100 Drivers - Over Index 6 4 Note: Results are shown for the Creative Target, which includes the Media Target without rejectors (those who indicated they were unlikely to consider Vail. Survey Question: Q45-50. “Why would you be hesitant to visit Vail in the summer? (Please allocate a total of 100 points, awarding the most points to the one that is more persuasive)” Anticipated expense is an even larger barrier for Vail than the perception of a winter destination (this holds true even for those with annual household incomes above $250,000). Additionally, the existence of comparable mountain resorts is also a strong barrier, but not nightlife or cultural experiences. 191 169 135 108 99 91 87 85 69 60 54 52 It’s too expensive I think of Vail as a winter destination There are many comparable mountain resorts I could visit I don’t know what’s going on at Vail in Summer I can find equally beautiful nature in other places Other mountain resorts have more interesting events/activities There’s nothing/not enough for my family / children to do It’s too hard to get to I prefer my nature experiences to be more wild, less polished The pace of life at Vail is too slow; I’m looking for a buzzy … The nightlife is practically nonexistent I want my vacation to provide a cultural experience Barriers (Crowd Score) 100 Barriers 6 5 Note: Results are shown for the Creative Target, which includes the Media Target without rejectors (those who indicated they were unlikely to consider Vail. Survey Question: Q45-50. “Why would you be hesitant to visit Vail in the summer? (Please allocate a total of 100 points, awarding the most points to the one that is more persuasive)” Anticipated expense is an even larger barrier for Vail than the perception of a winter destination (this holds true even for those with annual household incomes above $250,000). Additionally, the existence of comparable mountain resorts is also a strong barrier, but not nightlife or cultural experiences. 191 169 135 108 It’s too expensive I think of Vail as a winter destination There are many comparable mountain resorts I could visit I don’t know what’s going on at Vail in Summer Barriers (Crowd Score) 100 Barriers - Over Index 6 6 Note: Results are shown for the Creative Target, which includes the Media Target without rejectors (those who indicated they were unlikely to consider Vail. Survey Question: Q51-56. “How much would the following statements motivate you to consider Vail for your next summer vacation? (Please allocate a total of 100 points, awarding the most points to the one that is more persuasive)” The top-scoring conversion statements involved family-friendly activities and the combination of resort amenities and natural beauty; sporting / cultural events and culinary experiences were the least motivating subjects. 140 124 113 112 103 102 98 94 80 79 78 77 Vail offers activities and amenities for the whole family to enjoy. Vail is buzzing all summer long with events and activities. Vail has excellent hiking / mountain biking / outdoor activities. Vail is for families who like to go on active vacations. Only Vail offers the unique combination of top quality resort amenities… Treat yourself to a mountain experience that’s second to none – Vail. Vail possesses pristine natural beauty and a commitment to the finer… Vail has a large music festival this summer. Vail is an elite vacation destination. Vail has several cultural events this summer. Vail offers a breadth of outstanding culinary experiences, from fine… Vail is hosting several sporting events this summer. Messaging (Crowd Score) 100 Conversion Messaging 6 7 Note: Results are shown for the Creative Target, which includes the Media Target without rejectors (those who indicated they were unlikely to consider Vail. Survey Question: Q51-56. “How much would the following statements motivate you to consider Vail for your next summer vacation? (Please allocate a total of 100 points, awarding the most points to the one that is more persuasive)” The top-scoring conversion statements involved family-friendly activities and the combination of resort amenities and natural beauty; sporting / cultural events and culinary experiences were the least motivating subjects. 140 124 113 112 103 102 Vail offers activities and amenities for the whole family to enjoy. Vail is buzzing all summer long with events and activities. Vail has excellent hiking / mountain biking / outdoor activities. Vail is for families who like to go on active vacations. Only Vail offers the unique combination of top quality resort amenities and beautiful natural surroundings. Treat yourself to a mountain experience that’s second to none – Vail. Messaging (Crowd Score) 100 Conversion Messaging - Over Index 6 8 Only Vail offers the perfect blend of beautiful natural surroundings and top-quality resort amenities, with summer activities for the whole family to enjoy. Statistically-Informed Positioning What does this mean for the Town of Vail? Implications 1) We should consider revising our media target. •Shift from 35-64 to 25-54 •$100K+ HHI •Different family composition •Female skew 2) This year's timing and messaging shifts were spot on. •Starting earlier helps us better sync with our destination traveler's trip planning cycle. We should consider starting even earlier •Events are not motivating to destination travelers. Continuing the shift to brand messaging allows us some timing flexibility Implications 3) We're on the right track creatively. •‘Get away from it all and have it all' is a lead overarching message that’s motivating visitation •The nuance is to shift from luxury wilderness, to wilderness luxury •Participation is important as a balance to relaxation and luxury 4) Some of our activities and amenities are good proof points underneath our brand position, but none of them can serve as a standalone lead message. 5) We need to continue selling Vail vs. a mountain vacation. •Top barriers - people consider other mountains comparable; we are perceived to be more expensive •Our unique combination of wilderness and luxury will help establish 'Why Vail' Thank you!