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Home My WebLink AboutVLMDSept1MeetingfinalVAIL LOCAL MARKETING DISTRICT MEETING SEPTEMBER 1, 2015 Agenda o VLMD 2016 Strategic Plan & Budget o 5 Year Strategic Plan o Trends & Opportunities 2016 VLMD Strategic Plan & Budget Objectives & Metrics Strengthen Vail’s position as a year-round destination that appeals to a broad audience, by elevating the summer brand position. Overarching Goal 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 Monitor Net Promoter Score (due to new methodology) o Increase Consideration percentage as measured by Burke 2016 Marketing Objectives 2015 Goals & Results/2016 Goals (as of 8/20/15) 2015 Goals 2015 Results To Date 2016 Goals Sales Tax Increase: +3% May -4.6%; June +6.9%; +3% July +5.4%; Aug - October TBD DestiMetrics Occupancy: +4% May -2%; June +4%; July +4% +2% Group Occupancy: +6% -15% +4% Destination Visits: 58% of Mix 64% of Mix 60% of Mix International Visits: 10% of Mix 6% of Mix 11% of Mix IS Visits: 20% of Mix 26% 20% of Mix Consideration NA 26% (2013) +2% NPS: 86 83 Monitor due to new methodology 8 % Aware 95% 57% 91% 70% 33% 98% 72% 71% 83% 81% 95% Conv. from Aware to Consider 27% (24%) 14% (16%) 27% (26%) 10% (21%) 6% (15%) 24% (27%) 7% (12%) 11% (19%) 12% (18%) 20% (18%) 22% (26%) % Consider 26% 8% 25% 7% 2% 24% 5% 8% 10% 16% 21% Conv. from Consider to Most Recent 23% (26%) 25% (23%) 40% (36%) 29% (30%) 0% (9%) 38% (15%) 40% (5%) 50% (16%) 20% (28%) 38% (30%) 38% (33%) % Most Recent 6% 2% 10% 2% 0% 9% 2% 4% 2% 6% 8% % Most Likely Next 4% 3% 10% 2% 0% 9% 5% 3% 5% 8% 22% Momentum Destination Travelers Base (Out of Region 2013): n=251 •People coming from out of region considered and choose Vail, Beaver Creek and Breckenridge at rates consistent with 2011. •Aspen, Park City and Winter Park all made significant gains in winning summer visits from out of region travelers. 2011 conversions shown in parenthesis o Shift from 35 – 64 to 25 – 54 o $100K+ HHI o Expanded family composition o Female skew o Geographic Target: Dallas, Houston & Chicago; Front Range; and International Media Target Audience o Strengthen Vail’s position as a year-round destination by unifying the brand message in winter and summer o Leverage Burke Summer research to increase consideration o Focus on core audience while broadening and increasing relevancy with younger demographic o Maximize off peak, mid-week and shoulder seasons o Increase CRM capacity to maintain repeat guests and re-engage lapsed guests o Optimize mix to drive revenue - % of Destination, Front Range Overnight and International (Mexico/Latin American) guests while retaining Front Range day guests o Increase awareness of Vail as a group & meeting destination and to drive quality leads to the lodging community o Support EGE flights with targeted and integrated efforts in flight markets, working with Vail Resorts o Leverage summer events and identify new events to build overnight guests and mid week traffic o Leverage and integrate with Colorado Tourism efforts in key Destination Markets 2016 Strategies 2016 Budget $3,250,000 $1,119,000 34% $220,000 7% $225,000 7% $702,500 22% $103,000 3% $124,000 4% $74,000 2% $101,500 3% $7,500 0% $110,000 3% $343,960 11% $120,000 4% Destination International Front Range Groups and Meetings Public Relations Photography/Video Research Web/Email Admin Misc Branding 2016 YOY Budget Shifts YOY Budget Comp 2015 Budget % of Budget 2016 Budget % of Budget Comments Destination $ 1,236,600 38% $ 1,119,000 34% Reduction in SEM expenses from Volume 9 International $ 215,000 7% $ 220,000 7% Slight increase for Mexico events Front Range $ 196,900 6% $ 225,000 7% Slight increase for print Groups and Meetings $ 605,000 19% $ 702,500 22% Increase for event hosting fees Public Relations $ 103,000 3% $ 103,000 3% Flat Photography/Video $ 115,000 4% $ 124,000 4% Slight increase for new brand images Research $ 157,000 5% $ 74,000 2% Reduction, no Burke study Web/Email $ 52,000 2% $ 101,500 3% Increase for Content Provider Admin Misc $ 7,500 0% $ 7,500 0% Flat Branding $ 95,000 3% $ 110,000 3% Slight increase for new creative Professional Fees $ 347,000 11% $ 343,960 11% Slight decrease Event Funding $ 137,500 4% $ 120,000 4% flat TOTAL EXPENSES $ 3,267,500 100% $ 3,250,460 100% o Epic Discovery expansion o New Events o New retail & restaurants o Betty Ford Education Center o Skate Park o Wayfinding o Upgraded Technology o Maintain what we have at world class level 2016 What’s New Keeping Vail A Leader Town Council Three Focus Areas Our Mission - Grow a vibrant, diverse economy and community, providing our citizens and guests with exceptional services and an abundance of recreational, cultural and educational opportunities. o VLMDAC •Enhance web site and information systems for vacation planning and while here Technology – Vail Becomes a Thoroughly Connected Resort o VLMDAC •Enhance perception of value •Continue to track guest opinions •Focus opportunity on International Markets A Seamless Guest Experience – Excellence in All Aspects o VLMDAC •Market flights to EGE •Continue partnership with VR to take advantage of synergies Broaden the Sustainable Economy o VLMDAC •Continue to market events that drive destination guests •Continue collaboration with CSE Events VAIL LOCAL MARKETING DISTRICT 5-Year strategic plan 5-Year Summer Marketing Goals 2014 Results 2015 Results To Date Annual Goal 5-Year Goal Sales Tax: +7.9% +8.5% retail; +10.7% lodging; +6.9% F&B May – 4.6%; June +7%; July +5.4%; Aug – October TBD +3% +15% Destimetrics Occupancy: +5% May -2%; June +4%; July +4% +2% +10% Group Occupancy: +5% -15% +4% +20% Destination Visits: 55% of mix 64% of Mix +2% of mix 65% of mix International Visits: 9% of mix 6% of Mix +1-2% of mix 15% of mix Consideration: Among Destination Travelers 26% (2013) TBD Mid-September upon completion of Burke study +1-2%% +5 - 8% NPS: 75 83 Monitor with new methodology Monitor with new methodology The Travel Industry is Booming. Source: NY Times, 2015, Fiscal Times 2015. In 2015, there will be 2.1B domestic trips, and 78%+ will be leisure travel. International travel to the US is expected to increase by 4% to 75.1MM. And with it, Luxury Travel. Source: NY Times, 2015, Fiscal Times 2015. Nearly 30% of travelers agree that “Luxury is an integral part of the life I want to live.” Leisure travel is expected to grow the most among all luxury spending categories, increasing by 15.9% in 2015 to $115.2B. 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 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 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 BOOMERS AND MILLENNIALS ARE LEADING THE CHARGE. Millennials will become the largest generation in 2015, overtaking Boomers. •Boomers: 74.9MM •Gen X: 65.8MM •Millennials: 75.3MM Not Only Due to Their Large Population Size. Source: Pew Research 2015. Boomers control 70% of all disposable income in the United States, and spend$120B on travel. 80% of all luxury travel is taken by Boomers. Millennials set aside $226B for domestic and international travel, making travel a priority despite their relatively lower income. Also Due to Their Purchasing Power, Especially when it comes to Travel. Source: TravelPulse 2014, Hotwire 2014. They are Still Interconnected with Boomers, sharing the same sense of adventure and value of family time. o Millennials are not our core audience now, but they are becoming more important o As we move forward, we must ensure we create space for them – while staying authentic to our brand Implications for Vail 1 Leverage our existing consumer base (Boomers) to build affinity with younger consumers (Millennials) by appealing to Multi-Generational travelers. 2 Present a consistent brand across the town and mtn. Use one voice and one look to deliver a seamless, effortless experience. 3 Engage our winter guests to drive trial and loyalty in summer. 4 Market & present exceptional, curated experiences that deliver on Luxury Wilderness and lean in to trends that Millennials value. 5 Market an iconic and uniquely Vail event concept that serves as a tent pole, driving destination visitation, word of mouth, buzz, and earned media. Opportunities Thank you!