HomeMy WebLinkAboutJoint Mtg 1. Sustaining Economic HealthSustaining Vail’s Economic Health Work Session
RRC Associates
August 19, 2014
RRC ASSOCIATES
Chris Cares
Nate Fristoe
Office: (303) 449-6558
rrcassociates.com
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•The June meeting was about reviewing an expansive fact-
based exploration of Vail’s positioning; today we will be looking
toward the future.
•The overarching finding from the Competitive Analysis is that
the Town of Vail and Vail Resorts are doing most things very
well. Don’t forget that you’re at the top by most measures.
•Continue to improve in the areas where you perform well by
striving for excellence, while also focusing on areas of
opportunity as Vail plans for the future.
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“Where do we go from here?”
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•Colorado population will grow overall, as will population in the mountain
areas.
•Destination Skier and Rider visitation growth presents challenges in light of
demographics and will likely be increasingly weather dependent.
•Summer growth will occur, especially if it is given strategic attention.
•Millennials (the age cohort 34 and under, or between 18 and 33 (22% of
pop.) are the future. There is a need and opportunity to better understand
and plan around this group.
•Transfers of wealth will occur. What will this look like for Vail?
•Climate change is to be expected – creating challenges and opportunities.
Major Themes or Macro-trends included:
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Overview of July 15 Work Session
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•Vail is at or near the top in most competitive economic measures that were
evaluated including winter skier/rider visits nationally, winter and summer
occupancy, winter rate (summer is relatively weaker), sales tax recovery
since 2008, etc.
•Park City is identified as a notable competitive force based on size, product,
proximity to a major airport and the potential for the Interconnect. There are
other lessons to be learned and elements of success found in a variety of
comparable communities including: Aspen/Snowmass, Whistler,
Breckenridge and Jackson Hole.
The Vail Competitive Analysis showed:
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Overview of July 15 Work Session
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•Air service is a concern with significant declines since 2007-08. Also,
summer air service is limited and is a weakness when compared to both
Aspen and Jackson Hole.
•Regarding winter guest perceptions, Vail has extremely strong brand
awareness and the back bowls are iconic. Ratings of the mountain and Town
are generally very positive, but parking, crowding and opinions concerning
cost and value require continued attention.
The Vail Competitive Analysis showed:
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Overview of July 15 Work Session
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•We need to create facilities that support events; Also, again, quality and not
quantity. We’re not designed for quantity.
•We should look at zoning and create opportunities for different types of
businesses—ones that would allow guests to stay out later.
•Develop an understanding of product offerings that respond to the next
generation; Identify needs of Millennials and Gen-Xers.
•Identify physical improvements to be made.
•Maximize natural resources.
•Increase capacity and lift at Eagle Airport to create more opportunity for the
destination guest to travel easily to Vail.
At the conclusion of the meeting the Council identified the following:
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Summary of Meeting Notes from the July 15 Work Session
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•The World’s most connected resort
•Identify needs of the next generation
•New facilities to support multi-day entertainment events and “iconic activities”
•Maximize natural resources
•Expand the vacation experience through technology
•Encourage continuous updating and maintenance of existing facilities and
properties
Upon Prompting at the conclusion of the meeting these “Big Ideas”
emerged:
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Overview of July 15 Work Session
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Technology – Vail becomes a thoroughly “connected” community
•Continue to upgrade phone and digital services throughout the valley.
•Use best available technology to enhance communications with guests and
residents. Build on emerging technology and take full advantage of advances
gained through the World Championships. Additionally, look to enhanced
signage; and up to the minute and state of the art information systems
regarding transportation and parking, lines/crowding (in town and on the
mountain); and other conditions and events to enhance the experience.
•Recognize that Vail Resorts is a leader in using technology to communicate
with guests. Leverage that reputation and other available opportunities (the
GoPro name, etc.) to build the idea that Vail is “tech easy” – Millennials
expect and value it.
Focus Areas for Vail going forward:
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A Seamless Guest Experience – Excellence in all respects
•Customer Service
•Parking and Transportation (in town, from the airports and on I-70)
•Communications – (See above reference to using technology to drive
communications.) Starting in advance of the visit (trip planning, road
conditions, etc. and carrying through the entire visit) enhanced
communications with guests and residents may be used for continuous
improvement of the experience.
•Attention to conditions of crowding and lines
•Perception of value
•Continue to track the opinions of year-round and seasonal residents (using
the Community Survey and other sources); “excellent” ratings are the goal.
Focus Areas for Vail going forward:
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Physical improvements
•Zoning and other regulatory changes
•Continue to improve the overall residential housing stock and lodging product, both in
function and appearance
•Consider design enhancements and physical improvements to address the desires
and demand from the millennial generation – make best use of scarce land
•Recognize that workforce housing (middle income) remains an important concern,
especially among younger members of the community
•Provide enhanced places to gather (plazas, concert venues, meeting spaces, etc.)
•Continue to develop the trail system for pedestrians and bikes. Maps, signage and
other branded tools can enhance Vail’s reputation for trails.
•Protect and maximize natural resources. Green is expected, especially by the
millennial generation.
Focus Areas for Vail going forward:
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Leadership
•Looking to the future, encourage involvement and recruitment from a more
diverse and younger aged resident group
•Encourage new types of training and involvement to cultivate future leaders
•Look for new and better ways to communicate with the younger residents.
Recognize that they are the heavy users of social media – continue to build
the Town’s presence in this area as a bridge to the future.
•In keeping with the Vail Council’s goal for philanthropic participation, work to
expand the trust, relationships and economic support from all of Vail’s
stakeholders – residents, part-time residents, guests and institutions to create
amenities that fulfill long-term economic goals.
Focus Areas for Vail going forward:
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Broaden the Sustainable Economy
•Continue to work with the Vail Valley Medical Center to develop a functional
plan that meets corporate and community objectives.
•Work to expand the Eagle Airport in terms of capacity and number of
domestic flights in summer and winter.
•Analyze the potential for “lone eagles” as a component of economic growth
and stability.
•Consider town-owned space for non-profits or other groups that could share
facilities.
•Pay attention to the health of the retail community. Shopping is a vital part of
the guest experience and it can’t be taken for granted.
Focus Areas for Vail going forward:
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Events
•Continue to evaluate the current mix of events and look to strategically
enhance the offerings. Give attention to events that serve multiple purposes
including reinforcing Vail’s brand, reaching out to Generations X and Y, filling
beds midweek, etc.
Focus Areas for Vail going forward:
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•Limited real estate and limited growth potential. The Town is not equipped for major
growth or quantity, and therefore needs to think more about quality of growth. While
physical growth is limited, economic growth is necessary.
•Town needs to focus on midweek capacity and enhancing volume during these off-
peak days, perhaps by turning attention toward groups.
•Summer growth impacts weekend visitation, and therefore, the focus still needs to be
on the destination guest.
•Park City identified as main competitor. Reasons why? Capacity for expansion,
connectivity, access, downtown renovation.
•Discussion of strategic advantage of DIA’s expansion efforts: Could Denver be a
beachhead? Regardless, still need to resolve issues with I-70 because people will
not travel out to Vail if those issues persist.
Town of Vail | 08/19/14
Summary of Meeting Notes from the July 15 Work Session
What we heard from the Vail Council based on
Town of Vail Competitive Assessment Meeting Notes:
Note: The following section includes verbatim comments received from the Council,
staff, and VLMDAC representatives. They are presented in the order that they were
received and they have not been edited for repetitiveness.
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•The consistency of the perceived weaknesses of Vail over the past decade is
a concern. However, Vail being expensive is not as much as an issue for the
resort. Parking, crowding, and lift lines are more important areas of focus.
The goal is to spread guests across the mountain.
•Idea of “inclusive luxury.”
•Beaver Creek is exclusive luxury.
•How will the second homeowner market transition to younger age cohorts?
By inheritance, not by purchase.
•What tools do we have to impact retail variety?
•Jewelry market is getting worse in town. The consumer has changed,
according to some personal contacts, because of fewer upscale clientele
than in the past. There’s also a generational gap with regards for taste for
jewelry—not just income dependent. Vail needs to consider retail sales per
square foot.
What we heard from the Vail Council based on
Town of Vail Competitive Assessment Meeting Notes:
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Summary of Meeting Notes from the July 15 Work Session
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•Our summer visitation is growing, but summer is less expensive than winter
so it’s difficult to create seasonal balance.
•What kinds of events or product tweaks should we be offering?
•Discussion on technology and sharing-economy events.
•Some felt we should move away from athletic events.
•We need to turn our attention toward creating facilities; However, when
attempted with the Golf Clubhouse it really backfired; Need to think about our
needs for the future.
•Technological connectivity.
•Idea of aspirational travel, which is supported by reputation. Maybe the
travelers won’t do every activity while they are in the location, but it’s more
about being in that location itself that is exciting
What we heard from the Vail Council based on
Town of Vail Competitive Assessment Meeting Notes:
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Summary of Meeting Notes from the July 15 Work Session
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•Enclosed, multi-purpose venue; perhaps not a conference center but another
type of facility that meets these demands. New facilities to support
educational, sports, cultural, and multi-day activities .
•Fix infrastructure to expand non-tourism economic opportunities, such as the
Medical Center.
•Define parking issue so that it can be fixed via a strategic plan.
•Leveraging Epic Discovery as an opportunity to attract families.
•Become known as the world’s most connected resort.
•Expanding Epic/interactive experience, perhaps through the application of
technology.
•Encourage continuous upgrading of existing amenities and facilities.
What we heard from the Vail Council based on
Town of Vail Competitive Assessment Meeting Notes:
Town of Vail | 08/19/14
Summary of Meeting Notes from the July 15 Work Session
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•Develop an understanding of product offerings that respond to the next generation.
What do Millennials want, particularly that segment of relatively affluent “up and
comers” that will likely represent our target? How does what this generational
segment wants intersect with what’s already available in Vail and done well?
•Develop iconic, multi-day events that respond to next generational needs. Ideally,
target up to 15 events that respond to these needs.
•Identify physical improvements that respond to the needs and wants of the next
generation. Technology, zoning, new uses, enclosed multi-purpose venue are all
areas for consideration.
•Summer is an opportunity.
•Leverage the convenience of Eagle Airport. Expand summer service.
•Vail Valley Medical Center is an asset. Facilitate the success of the facility.
•Define the parking issue and continue to plan plan for parking.
•Epic Discovery. Already in place and can be an opportunity to attract families.
Takeaways from the July 15th session:
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Summary of Meeting Notes from the July 15 Work Session
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As Vail looks to the future and to opportunities to sustain economic health the RRC
team strongly recommends that the identified Focus Areas receive direct attention.
The findings from this work can be used to underpin community planning efforts across
all areas of Town services. Further, the data presented can be used to refine and
further integrate existing strategic plans (Public Works, Police, Parking, Housing,
Economic Development, etc.) to ensure that Vail is maximizing all its resources to long-
term economic advantage.
Clearly, one consideration that has come from discussions is that the next generations
(Gen X and the Millennials) will be different than the Baby Boomers that helped to build
Vail and to vault the Town and mountain to the forefront of North American
mountain/resort destinations. In considering the sustainable economic future of Vail,
the wants and needs of Generation X and the Millennial Generation should become a
cornerstone of future thinking, to be carefully considered and reevaluated over time.
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Conclusion and Recommendation