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HomeMy WebLinkAboutVLMDACCSEJointMeetingFINALJUNEVAIL LOCAL MARKETING DISTRICT ADVISORY COUNCIL CSE JOINT MEETING JUNE 3, 2015 Objectives & Metrics Continue the momentum and build on the powerful leadership position of the year-round Vail brand o Increase Sales Tax Revenue o Increase May – October Occupancy o Increase Group Occupancy o Optimize Visitor Mix o Increase Net Promoter Score o Increase Vail Brand Awareness 2015 Marketing Objectives Summary of 2014 Results & 2015 Goals 5-YEAR STRATEGIC MARKETING PLAN o Goodness mfg. has been contracted to develop a 5-year strategic marketing plan for summer. The overarching goal is to strengthen Vail’s position as the premier international mountain resort community that appeals to a broad audience by elevating summer to the leadership position held in winter. The following slide outlines metrics the plan will drive toward to achieve this goal. 5 Year Strategic Marketing Plan 5 Year Strategic Marketing Plan Metrics 2014 Results Annual Growth 5-Year Growth Sales Tax: +7.9% (+8.5% retail; +10.7% lodging, +6.9% F&B) +3% +15% Destimetrics Occupancy: +5% +2% +10% Group Occupancy: +5% +4% +20% Destination Visits: 55% of Mix +2% of Mix 65% of Mix International Visits: 9% of Mix +1 - 2% of Mix 15% of Mix Awareness: 95% 96% 96% NPS: 75 >75 85 2015 Strategies o Shift from 35 – 64 to 25 – 54 o $100K+ HHI o Expanded family composition o Female skew Media Target Audience o Continue to use data driven findings to refine and optimize communication of brand messages supporting Vail as the premiere mountain getaway with events and activities for the whole family o Focus on conversion and the “reasons to come” to shift perception of the value of the Vail experience: the substance you seek, the participation you crave, in a one-of-a-kind luxury wilderness (vice versa) experience o Shift timing earlier (Feb/March) to build brand interest with events & rates during the planning cycle o Sustain Vail’s relevancy with a younger demographic o Bring the brand to life in unexpected ways, including non-traditional methods o Leverage events’ collective marketing/PR efforts o Maximize high traffic periods (Fri – Sun), optimize off peak (Mon – Thurs) periods with groups and events 2015 Strategies o Continue to leverage the loyal customer o Optimize mix to drive revenue - % of Destination, Front Range Overnight and International (Mexico/Latin American) guests while retaining Front Range day guests o Enhance the resort experience through guest service initiatives and technology o Leverage the 2015 World Championships o Continuously deliver fresh content keeping the year-round Vail brand dynamic 2015 Strategies o Doubles our spend and penetration into our top 3 destination markets, building on our top geographic strengths o Dallas +48% over baseline budget o Houston + 54% over baseline budget o Chicago +76% over baseline budget o With record sales tax collections the last two summers, we need to build on that momentum to maintain our leadership position, ensuring market growth and no slippage o We have increased our percentage of destination guests and need to capitalize by increasing our presence in the top 3 markets. o Allocates dollars strategically where and how we can have the most impact and track Key Performance Indicators/ROI Incremental Funding of $350K Focus o Flight markets opportunities o Houston market is still in development, and marketing investment directly benefits and could reduce our costs on the revenue guarantee o We saw a large increase in local visitation on last year’s Houston flight, which seems to be a reflection of our marketing penetration in that market, with more people knowing about the flight and choosing Vail because of the access o United has non-stop service to 8 cities in Colorado, only 2 of which are mainline jet service, Denver and Vail. We hold the competitive advantage on aircraft service, and need to continue to use this advantage to grow our market share from Houston o Dallas remains a critical market for us to support; if loads decrease, we risk losing service – not something we want. o Houston & Dallas are our primary gateway beyond Texas to key markets in the Southeast and Mexico, where we are trying to grow visitation in the summer Incremental Funding of $350K Focus o Flight markets opportunities continued….. o We know a guest flying into EGE in the summer is a Vail guest, and if our guests fly into Denver, they have many more choices o Chicago is in our top 3 markets with little effort and investing wisely through digital and group efforts will allow us to test and track our impact and determine future opportunity and investment direction o Leverages Vail Resorts winter focus on these markets c Incremental Funding of $350K Focus o VLMDAC provides Marketing support based on the following event criteria: o Demographic fit o Driving overnight guests (Front Range and Destination) o Overall brand fit o Sponsors (current & potential) and added reach o Timing - Need period (midweek, shoulder season) c Event Strategies 2015 VLMDAC Supported Events Outdoor Adventure – Adult GoPro Mountain Games Vail Outlier Off-road Festival Music Bravo! Vail Vail Summer Bluegrass Series Vail Jazz Festival Outdoor Adventure – Kids Vail Kids Adventure Games Culinary Gourmet on Gore Vail/BC Restaurant Week Stand Alone Vail International Dance Festival Vail Oktoberfest tm o VLMDAC Marketing & PR support of events identified includes: o Vail.com o Email inclusion o Digital support (SEO, SEM, Front Range banner message) o Front Range TV o Public Relations Support c Event Strategies o The VLMDAC encourages the CSE to consider the following during 2016 funding allocations o Overall brand fit o Driving overnight guests (Destination and Front Range) o Demographic fit o Timing – need periods midweek & shoulder season: Optimize the calendar o Sponsorships – current & potential – for leverage o Marketing strength o c Event Strategies Spend By Month Media Spend by Month Compared to 2014 Actual Occupancy and 2015 Occupancy to Date (source: DestiMetrics) All months have opportunity to grow occupancy levels Spend levels taper off during months of higher occupancy levels Media Spend by Month Compared to Month Reservations Made (source: Guest Profiler) Most bookings being made in June/July, so spending media dollars in April, May and June is the most appropriate time to impact their planning process. Research & Trends Millennials are an ever more influential travel group o They make up one-third of US travelers, and are the fastest growing age segment in travel. o More than any other age group, approximately one-third of Millennials intend on traveling more in 2015. o 35% of 18-34 year olds in a Hotwire survey plan on taking one or two large vacations in the coming year. Emerging trends in travel Multigenerational Aspirational adventurers bring the whole family o This group doesn’t believe in traveling alone. Rather, they bring the entire family on unforgettable adventures, with a focus on educational and participatory travel experiences. o This target appreciate destinations that accommodate the young – and the young at heart. Emerging trends in travel Foodie Adventurists celebrate cuisine in their travels o Travel is now a way to celebrate and experience cuisine – and in 2015 foodies are celebrating the 250th anniversary of the restaurant. o 21% of travelers in a Travel Guard poll said they would be most excited to attend food and wine festivals. o Some competitors are already taking their culinary offerings to the next level with top tier experiences for foodies looking to plan their next culinary adventure. Emerging trends in travel Research shows that events provide tangible access to culture in ways that other attractions can’t – as long as the event is relevant and compelling. A 2014 Travel Guard poll revealed that an overwhelming 81% of consumers were willing to travel internationally to attend a festival or event of their choice. 85% of travelers polled were also very likely to spend extra time exploring the destination where an event is being held, and another 13% would build in time for additional sightseeing. High profile festivals and artists promote summer destination travel. Thank you! Questions?