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VLMDACAprilFINALVLMDAC BOARD MEETING APRIL 18, 2019 AGENDA •Monthly Financial Report, Carlie Smith •Approval of March 21, 2019 Minutes, Board •Update from Town Council Meeting, Board/SITE •Eagle Country Regional Airport, Barry Bratton •Group Sales Update, Kim Brussow •Public Relations Update, MYPR •Email Update, Vail Marketing •Research Update, Cactus •Digital Report, Cactus •Creative Updates, Cactus •DestiMetrics Report & Need Time Tactics, All Partners •Recommendations for Incremental Dollars, All Partners •Other Business AGENDA EAGLE COUNTY REGIONAL AIRPORT AIRPORT Eagle County Regional Airport EGE Runway Length 9,000 feet Current Airline Fleet Mix includes: 757-200, 737-700 and Airbus A319 The elevation at EGE is 6,547’ Capacity, Traffic and Revenue Trends EGE Had Service to 14 Destinations in the 2018-2019 Ski Season; UA Offers Year-Round Service to DEN and AA Offers Summer Service to DFW 151,467 180,343 177,473 0 25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000 2017 2018 2019 177,473 Seats Were Scheduled at Eagle/Vail in First Quarter 2019, a Decline of 1.6% Versus First Quarter 2018, but 17.2% More than First Quarter 2017 Page 8 Scheduled First Quarter Arriving Seats at Eagle County Regional Airport First Quarter 2017-2019 OAG Data Despite Less Airline Capacity, Enplanements Increased 7.7% in the First Three Months of 2019 Versus 2018 Eagle County Regional Airport Enplanements January 2017 through March 2019 35,669 33,350 36,605 4,400 995 3,999 7,193 6,890 4,674 3,573 3,182 18,704 38,589 36,680 41,276 7,235 3,293 5,203 6,779 6,660 5,719 3,988 3,741 19,478 42,029 38,122 45,404 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 J F M A M J J A S O N DEnplanements 2017 2018 2019 Airlines Operated an Average of 1,972 Seats per Day Each Way in First Quarter 2019, American’s Capacity Was down 7.1% and Air Canada Exited the Market Published Eagle/Vail Capacity by Carrier and Market – First Quarter 2019 Versus First Quarter 2018 OAG Schedule Data as of February 3, 2019 Airline Destination Flights per Day Each Way Seats per Flight Seats per Day Each Way Flights per Day Each Way Seats per Flight Seats per Day Each Way Seat Change % Seat Change Air Canada YYZ 1/7 120 13 -13 -100.0% Total 1/7 120 13 -13 -100.0% American DFW 2 3/7 152 367 2 4/7 147 372 5 1.4%JFK 1 176 172 5/7 176 129 -43 -25.0% LAX 1 128 125 1 128 128 3 2.3% LGA 1/7 128 18 18 MIA 1 176 176 1 176 176 0 0.0% ORD 1 2/7 128 168 1 128 128 -40 -23.7% PHX 6/7 70 59 4/7 70 40 -19 -32.9% Total 7 4/7 142 1,067 7 142 991 -76 -7.1% Delta ATL 1 199 197 1 199 199 2 1.1% SLC 1/7 70 5 0 70 2 -4 -71.4% Total 1 190 202 1 196 201 -2 -0.8% United DEN 3 1/7 120 377 3 75 226 -151 -40.1% EWR 1 126 119 1 169 167 48 40.4% IAD 1/7 126 18 4/7 126 63 45 246.2% IAH 6/7 126 109 6/7 126 106 -3 -2.6% LAX 1/7 76 11 11 ORD 5/7 126 84 1 126 132 48 56.7% SFO 1/7 70 14 1 76 75 61 436.8% Total 6 121 721 7 4/7 104 780 59 8.2% All Carriers 14 5/7 137 2,004 15 4/7 127 1,972 -32 -1.6% First Quarter 2018 First Quarter 2019 Eagle County Regional Airport Seats per Day Each Way by Day of Week First Quarter 2019 OAG Data 2,015 1,910 1,740 1,772 1,931 1,950 2,466 0 500 1,000 1,500 2,000 2,500 3,000 Sun Mon Tue Wed Thu Fri SatSeats per Day Each Way Seats per Day Each Way While Airlines Operated an Average of 1,972 Seats per Day Each Way at Vail, Capacity Was 2,466 Seats per Day Each Way on Saturdays Eagle/Vail Is a Highly Seasonal Market; Nearly Two-Thirds of Annual Passenger Traffic Is Generated in First Quarter Eagle/Vail Domestic and International Passengers per Day Each Way (PDEW) Quarterly Data – First Quarter 2016 through Second Quarter 2018 1,006 93 197 285 968 75 165 293 1,061 150 123 9 16 26 117 8 10 26 126 10 0 250 500 750 1,000 1,250 1,500 2016-Q1 2016-Q2 2016-Q3 2016-Q4 2017-Q1 2017-Q2 2017-Q3 2017-Q4 2018-Q1 2018-Q2Passengers per Day Each Way (PDEW) Domestic PDEW International PDEW U.S. Domestic Markets with Nonstop Service During Ski Season Are Large; the New York/Newark Market Size Was 199.0 PDEW in First Quarter 2018 30 Largest Domestic Markets at Eagle County Regional Airport First Quarter 2018 35,815 26,567 14,742 14,456 9,783 9,341 8,934 5,135 4,184 2,893 2,866 2,525 2,333 2,280 1,932 1,859 1,609 1,566 1,550 1,512 1,503 1,447 1,229 1,164 1,076 1,071 1,038 949 867 825 199.0 147.6 81.9 80.3 54.4 51.9 49.6 28.5 23.2 16.1 15.9 14.0 13.0 12.7 10.7 10.3 8.9 8.7 8.6 8.4 8.4 8.0 6.8 6.5 6.0 6.0 5.8 5.3 4.8 4.6 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 LGA/JFK/EWR - 1 DFW/DAL - 3 ATL - 5 LAX/SNA/ONT/BUR/LGB - 7 PHX/AZA - 9 TPA/PIE - 11 AUS - 13 PHL - 15 RDU - 17 RSW/PGD - 19 MSY - 21 SAT - 23 MSP - 25 MEM - 27 PIT - 29 Quarterly O&D PDEW Markets in Latin America Generate Significant Traffic During Ski Season; Mexico City, Sao Paulo and Buenos Aires Are the Largest Latin Markets 30 Largest International Markets at Eagle County Regional Airport First Quarter 2018 3,758 2,565 2,140 1,604 1,136 1,054 845 698 486 459 436 376 367 360 347 296 282 254 250 240 215 188 188 186 160 158 146 120 114 106 20.9 14.3 11.9 8.9 6.3 5.9 4.7 3.9 2.7 2.6 2.4 2.1 2.0 2.0 1.9 1.6 1.6 1.4 1.4 1.3 1.2 1.0 1.0 1.0 0.9 0.9 0.8 0.7 0.6 0.6 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 MEX - 1 YYZ - 3 GIG - 5 SYD - 7 BDA - 9 GDL - 11 SJO - 13 LHR/LGW - 15 PTY - 17 NAS - 19 YVR - 21 SDQ - 23 VER - 25 YUL - 27 SJD - 29 Quarterly O&D PDEW United’s Market Share Increased 5.4 Points to 33.7% in First Quarter 2018 as American’s Share Declined 6.1 Points and Delta’s Share Increased 0.7 Points Domestic Market Share by Carrier First Quarter 2009 through First Quarter 2018 49.9% 52.3% 55.5% 57.9% 59.1% 55.6% 58.0% 59.1% 59.4% 53.3% 30.1% 30.5% 33.1% 29.1% 26.5% 28.8% 29.2% 28.0% 28.3% 33.7% 20.0% 17.2% 11.3% 13.0% 14.4% 15.2% 12.7% 12.9% 12.3% 13.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Domestic Market Share AA/US UA/CO DL/NW Eagle County - Investing in your Airport •2003 $2.2 million Air Traffic Control Tower Annual tower operating budget; $100,000 •2009 $40 million Runway extension and rehabilitation •2013 $636 million Economic Impact to the community New Economic Impact Study in progress Airport Terminal Project The Numbers $35 Million – Total project cost 25,000 square feet addition 120,000 square feet total Better Customer Service Experience Common Use Computer systems for Airlines New paging system Added seating and in-seat charging Larger concession area, kitchen and dining Fireplace Pet relief area Larger private nursing space Jet bridges at Gates 1-4 Ground boarding Gates 5-6 Elevators and Escalators Expansive views of the runway and mountains Page 21 Page 22 For Additional Information Contact Jeff Shroll County Manager Eagle County Regional Airport 217 Eldon Wilson Road Gypsum, CO 81637 Jeff.Shroll@eaglecounty.us (970) 328-8604 GROUP SALES UPDATE GROUP SALES 1ST QUARTER RESULTS / CONTRACTS = 15 5,698 ROOM NIGHTS $1,442,385 ROOM REVENUE LEADS GENERATED = 64 TRADESHOWS = 5 2,180 PLANNER ATTENDEES 239 APPOINTMENTS SITE TOURS = 1 BOOKED AFTER SITE ADDED TO DATABASE 95 NEW ORGANIZATIONS 112 NEW CONTACTS CLIENT EVENT = 1 29 PLANNER ATTENDEES 1ST QUARTER HIGHLIGHTS / CP YOGA – 636 RNS - JUN19 MAYO - 820 RNS – JUL19 ADP – 1,400 RNS - JUL20 MTS – 2,100 RNS - APR21 SITE TOUR CONTRACTED TODD DERKIN FOR OCTOBER 2019 HOUSTON CLIENT EVENT & OFFICE VISITS 1 CONTRACT COLORADO MEETINGS & EVENTS “BEST OF” AWARD FOR BEST DMO •INCENTIVE & CORPORATE RETREATS •TEAMWORK & COLLABORATION •STRATEGIC PLANNING MEETINGS •HEALTH & WELLNESS •ADVENTURE & ACTIVITIES •NON-TRADITIONAL MEETING SPACE •INCORPORATING THE OUTDOORS •CORPORATE SOCIAL RESPONSIBILITY •ANIMALS (PUPPIES/GOATS) •PROVIDING BUDGETS UPFRONT •COMMISSIONS TO 3RD PARTIES •AIRBNB VS. ROOM BLOCKS •TECHNOLOGY –Facial recognition –Drones for hotspots –Chatbot as personnel –Phygital Events (Physical/Digital) –360º Reporting VVP GROUP SALES/ 1ST QUARTER TRADESHOWS & CLIENT EVENTS FICP - Boston MIC - Denver “Best Of” - Denver IPEC – San Antonio PCMA - Pittsburgh Rodeo Client Event - Houston Connect - Banff SKAL - Tampa •1,690 MEETING PLANNER ATTENDEES •50 ONE-ON-ONE APPOINTMENTS •EDUCATIONAL CONFERENCE WITH NETWORKING OPPORTUNITIES •KEYNOTE SPEAKERS – BILLIE JEAN KING AND GEENA DAVIS A NOTEWORTHY LINE-UP OF SPEAKERS & SESSIONS, FOCUSED ON INDUSTRY TRENDS WITH SEVERAL MEMORABLE NETWORKING EVENTS, TO CONNECT WITH COLLEAGUES •JANUARY 27-29 IN BOSTON, MA •40 FINANCIAL & INSURANCE PLANNER ATTENDEES •32 ONE-ON-ONE APPOINTMENTS •EDUCATIONAL SESSIONS – SECURITY/TECHNOLY TRENDS •FEBRUARY 3-6 IN SAN ANTONIO, TX •50 INDEPENDENT & 3RD PARTY MEETING PLANNER ATTENDEES •31 ONE-ON-ONE APPOINTMENTS •FEBRUARY 27-28 IN HOUSTON, TX •LARGEST EVENT IN HOUSTON •28 PLANNER ATTENDEES •COOP & OFFICE VISITS WITH SONNENALP – REC’D CONTRACT – 255 ROOM NIGHTS – OCT19 •LARGEST INDUSTRY TRADESHOW OF THE YEAR IN DENVER •PRODUCED BY 13 COLORADO CHAPTER MEMBER ASSOCIATIONS •363 MEETING PLANNER ATTENDEES •100 ONE-ON-ONE APPOINTMENTS •COOP WITH SEBASTIAN VAIL AND MANOR VAIL LODGE •POST-TRADESHOW PLANNER DINNER WITH 4 PLANNERS •MARCH 20-22 IN BANFF, CANADA •SPECIFIC TO BUILDING MOUNTAIN RESORT INCENTIVE BUSINESS •THIS INVITATION-ONLY EVENT BRINGS TOGETHER ACTIVE PLANNERS WITH MOUNTAIN RESORT SUPPLIERS FOR GENERAL SESSIONS, PRESET APPOINTMENTS, QUALITY NETWORKING AND PLANNED ACTIVITIES. • 37 MEETING PLANNER ATTENDEES •26 ONE-ON-ONE APPOINTMENTS COLORADO MEETINGS + EVENTS MAGAZINE 2019 READERS’ CHOICE AWARDS MARCH 11 IN DENVER, CO What Are the “Best of” Awards? The annual Best of Awards are designed to honor the cream of the crop in the regional meetings and events industry. The awards are a celebration of the hard work and above- and-beyond service of suppliers who help planners be at the top of their game. How Does Voting Work for the Best of Awards? Every single winner in the annual Best of Awards is hand-picked by the meeting planners, event planners and suppliers who read Colorado Meetings & Events magazines. Readers determine the winners so every vote in each category is influential and important. •VAIL VALLEY PARTNERSHIP –Best Destination Marketing Organization •VAIL MOUNTAIN –Best Attraction Outside Denver Metro •IMPRINT GROUP –Best Meeting/Event Planning Company •ACCESS COLORADO –Best Destination Management Company •EPIC MOUNTAIN EXPRESS –Best Transportation Provider COLORADO MEETINGS + EVENTS MAGAZINE 2019 READERS’ CHOICE AWARD WINNERS WHAT’S NEXT FOR 2ND QUARTER July 14-16 - Denver July 17-19 – Vail Sales Trip April 10-13 – Park City, UT CVENT LEADS – 1ST QUARTER YEAR OVER YEAR – 2018 VS. 2019 JAN-MAR 18 JAN-MAR 19 % CHANGE YOY TOTAL LEADS REC’D BY VVP 30 40 33% TOTAL ROOM NIGHTS 9,672 14,161 46% TOTAL RFP VALUE $3,339,172 $5,793,744 74% AVG ROOM NIGHTS PER RFP 322 354 10% AVG VALUE PER RFP $111,306 $144,844 30% TOTAL RFP’S FOR VAIL 165 171 4% TOTAL ROOM NIGHTS VAIL 49,904 44,362 -11% AWARDED RFPS TO VAIL 19 28 47% BOOKED ROOM NIGHTS 2,394 3,665 53% AWARD RFP VALUE $1,019,752 $1,240,186 22% PUBLIC RELATIONS UPDATE PR UPDATE QUARTERLY UPDATE In-Market Media Visits: •New York •Los Angeles Visiting Journalists Program: •June 19-22 in partnership with Hotel Talisa •Confirmed freelance writer for American Way, Robb Report, Hemispheres, Private Clubs, etc. •Writer on assignment for Sherman’s Travel •Sept. 13-16 in partnership with Four Seasons Resort & Residences Vail •Individual Visits •4 confirmed including a writer who is on assignment for a year-round feature on Vail in the San Diego Union Tribune PUBLIC RELATIONS MEDIA COVERAGE Performance Against Comp Set PUBLIC RELATIONS Breckenridge 16 Aspen 97 Vail 126 KEY MESSAGES PUBLIC RELATIONS Hotels/Hotel Packages 33% Arts, Music & Festivals 30% Events 26% Outdoor Activities 8% Family 3% SAMPLE MEDIA COVERAGE PUBLIC RELATIONS SAMPLE MEDIA COVERAGE PUBLIC RELATIONS FAMILIES WITH OLDER CHILDREN @KidsAreATrip •30.4K Followers •3.25% Engagement Rate •981 Average Engagement Per Post PAID INFLUENCERS @WorldisaBook •22.9K Followers •1.1% Engagement Rate •270 Average Engagement Per Post @AThoughtfulPlace •66.1K Followers •1.25% Engagement Rate •871 Average Engagement Per Post FAMILIES WITH OLDER CHILDREN Deliverables: •Minimum newsfeed pictures: 5 •One carousel style of at least 3 pictures •Two daily posts of minimum 1 photo •Minimum stories: 9 •Option to purchase additional images Content: •Family in the village •Family dining •On-mountain activities such as mountain biking •Hiking •Fun “stay and play” imagery e.g. pool time PAID INFLUENCERS EMAIL UPDATE EMAIL EMAIL STATUS UPDATES What’s Working? Regularly segment Destination Dynamic Family audience Regularly segment winter loyalists to cross sell with summer messaging Continue from 2018 What’s New? 1 Explore winter cross-sell and early summer messaging in winter post-stay emails Partner with Cactus to explore supplemental, paid e-blasts to target August/September time period 1 2 2 1 Key Takeaways: •Determine opportunities for cross-seasonal messaging and targeting •Explore additional teen targeting and content development •Reach consumers when they’re most actively searching and booking summer visits EMAIL MARKETING SUMMER DATES EMAIL MARKETING May 1. Teen Family 2. Remaining Audience June 1. Full Audience July 1. Full Audience August 1. Full Audience 1. Full Audience 1. Full Audience Colorado Destination 5/1 6/11-17 TBD TBD TBD Vail email list Paid Cactus efforts 6/18-26 TBD Annotation 5/1 6/11-17 6/18-26 TBD TBD MAY 1 CREATIVE EMAIL MARKETING 1 2 Remaining Audience Family with Teens MAY 1 CREATIVE CONTINUED EMAIL MARKETING 3 Destination RESEARCH UPDATE 2019 RESEARCH DESTINATION AUDIENCE RESEARCH / ACTION PLAN Research Objectives: •Illuminate the overall travel decision making process of our target audience of Destination Families with Teens from consideration to visitation •Understand the relationship between parents and teens when making travel decisions •Identify the best ways to communicate with parents and teenagers from both a messaging and media standpoint for most effective outreach •Gain a deeper understanding of the brands/destinations that teens and parents are most loyal to, and why Methodology: •Leverage online community platform, Recollective, to engage 15 parents and 15 teens from the same qualified HH’s in key destination markets to participate in a 3 day qualitative, Cactus-moderated study •Each day will be structured to achieve specific objectives, keeping participants engaged and interested •Cactus will ask the participants agreed upon questions and moderate accordingly throughout the course of the study AUDIENCE RESEARCH DESTINATION AUDIENCE RESEARCH / ACTION PLAN Timing: •April 11th: Project approach / budget approval •April 12th: Screener Development •April 15th – April 26th: Research participant recruitment •April 12th – April 26th: Community guide development and finalization •April 29th – May 3rd: Community open to participants •May 6th – May 9th: Analysis and crafting of final presentation •May 10th: Share-out of takeaways, multi-media presentation •May 16th: Board presentation of takeaways AUDIENCE RESEARCH BURKE RESEARCH 2019 Methodology Updates: •Better reflect targeted media audiences •More closely aligned with visitor demographics •Determine true awareness funnel metrics by removing 100% aware as a qualifier •Expanded resort list to include close competitors AUDIENCE RESEARCH Study Sample All groups have visited the Rocky Mtn. West within the part two years or plan to visit in the next two years. Group Destination Families Super Boomers Front Range Definition Parent of a teen (13- 19), HHI $100K+, non- CO nationwide Ages 55+, HHI $100K+, nationwide CO Residents with HHI $100K+ Total Sample n=100 n=100 n=100 DIGITAL UPDATE DIGITAL DIGITAL MEDIA ECOSYSTEM DIGITAL MEDIA Digital Video Social Media Mobile Artificial Intelligence In the first month of the campaign, we saw success across these tactics: DIGITAL VIDEO: MARCH PERFORMANCE Overall digital video completion rate (VCR) is up +2% YOY •Heavier investment in premium content and platforms Mobile AI is driving a 1.45% CTR overall, exceeding benchmark performance for the tactic •Currently delivering air and brand messages Cross-device video efforts with mobile AI and TV/Cable retargeting are delivering a 81% VCR •Exceeding the industry average VCR by +4% •Chicago is driving the strongest VCR and click through rates for the TV/Cable air marketing retargeting tactic DIGITAL MEDIA PAID SOCIAL: MARCH PERFORMANCE “Rites of Passage” brand spot is driving the strongest performance •87% VCR for Destination Families “Early Season” spot is most likely to generate clicks to the site with a 0.46% CTR •Currently promotes the “Book By June 1st” message to Super Boomers Houston is the top performing market across Destination Families and Super Boomers •Dallas is the top performing market for Destination Teenagers 2x CTR performance YOY across all brand and early season videos •Likely due to the “June 1” message pushing urgency across video end cards and social copy DIGITAL MEDIA CREATIVE UPDATE CREATIVE DESTIMETRICS & NEED TIME TACTICS OPPORTUNITIES OVERVIEW OF SUMMER OCCUPANCY & ADR •On the books Summer occupancy is -15.5% YOY; while historic actual occupancy is +2.6% YOY •On the books ADR is +2.2% YOY; while historic actual ADR is -3.6% YOY •On the books RevPAR is -13.6% YOY; while historic actual RevPAR -1.1% YOY •As a measure of RevPAR summer is now -13.7% underperforming last year *Based on Reports as of March 31 SUMMER OUTLOOK DESTIMETRICS OCCUPANCY REPORT OCCUPANCY SUMMER BOOKING TRENDS BY MONTH •May gained +2.2% as an absolute measure of occupancy in March •Bookings made in March for May -33.5% YOY •June gained +2.5% as an absolute measure of occupancy in March •Bookings made in March for June -63.7% YOY •July gained +2.5% as an absolute measure of occupancy in March •Bookings made in March for July -61.9% YOY •August gained +2.1% as an absolute measure of occupancy in March •Bookings made in March for August -59.4% YOY •September -1.5% in occupancy YOY at this time •There are no months currently showing an occupancy gain over last summer season •June, July, August, and September are all showing ADR gains over last summer •Competitors experiencing same results to date SUMMER OUTLOOK ADDRESSING NEED TIME FRAMES Opportunities: •It is only April; we are nimble & flexible to react and implement new tactics now! •Send a strong message to lodging community encouraging lower rates, with little/no restrictions for entire summer to boost demand and steal market share •Develop & implement incremental tactics using “crisis/retail budget” and/or incremental budget to address “entire summer” need times. Ideas to date include: •Aggressively message lodging offers and sense of urgency with “Book By June 1” •Develop and promote Memorial Weekend messaging through PR, online and social efforts •Tell “Kick off to Summer” story by leveraging Go Pro Mountain Games through PR •Increase SEM investment to directly impact our ability to target new guests, drive bookings during need period and potentially retarget them with additional media •Expand Paid Email efforts focusing on need times •Possible Airline partnership/marketing opportunities •Expand Teen influencer program OPPORTUNITIES RECOMMENDATION FOR INCREMENTAL DOLLARS OPPORTUNITIES OPPORTUNITIES FOR INCREMENTAL $150K OPPORTUNITIES 1 Tactics Addressing Summer Occupancy: $18K (+ $44K previously allocated) •Expand Paid Email Marketing efforts to focus on need times •Explore Airline Partnership Opportunities 2 Expand Influencer Program: $25K (estimate) •Teen specific influencers; researching costs/availability •Art in Public Places partnership 3 Right Size & Heavy Up Search Engine Marketing Efforts: $77K (max) •Increase lower-mid funnel impression share from 7% to 35% •Increase upper – mid funnel impression share from 9% to 25% •The incremental investment would give us approx. 28K additional leads/clicks 4 Test Teen Focused Events with seed money: $30K (estimate) •Silent Disco •Movie Night(s) NEXT STEPS & TIMELINE 2019 PLANNING April May June - October -Board agreement on direction for addressing occupancy needs -Board agreement on direction for $150K incremental request -Implement plans to address Memorial Weekend/Early June -Present detailed plans/tactics to address June – August occupancy needs -Present detailed recommendations for $150K incremental budget -Launch remaining tactics -Monitor Occupancy trends and make ongoing adjustments/optimizations to tactics THANK YOU! Next VLMDAC Monthly Meeting, Thursday, May 16, 2019 Grand View Room