Loading...
HomeMy WebLinkAbout07. VLMD minutes April 2019 FINALVail Local Marketing District Advisory Council Monthly Meeting Thursday, April 18, 8:30 am Grand View Room AGENDA April Meeting Link In attendance: Laurie Mullen – VLMDAC/WVLM Jessie Klehfoth – VLMDAC/VRD Skip Thurnauer – VLMDAC Jana Morgan – VLMDAC/Sweet Basil/Mountain Standard Esmarie Faessler – VLMDAC/Sonnenalp Amy Moser Harrison – VLMDAC/Four Seasons Yann Benjamin – VLMDAC/Vail Mountain Mia Vlaar - TOV Matt Miano – TOV Hannah Green – Cactus Katie Harker – Cactus Molly Katz – Cactus Chris Romer – VVP Hannah Elfin – Vail Mtn Whitney Brofos – Vail Mtn Jess Sweetin – Vail Mtn Sandra Perrig – VVP Kim Brussow – VVP Marrit Zoll – VVP Kristin Yantis – MYPR Meggen Kirkham – SITE Jordan Halter – Bravo! Vail Susan Proffitt – VVP Jodi Doney – EGE Airport Jeff Shroll – Eagle County Barry Bratton – Eagle County Carlie Smith – TOV Alison Wadey – VCBA/CSE Johnathan Reap – Four Seasons • Monthly Financial Report (5 minutes), Carlie Smith Please see SLIDES in packet; Carlie presented financial report summary. Commented that packet P & L does not include supplemental reallocation of 200k from the Colorado Classic plus the additional 200K in marketing expense approved at the April 2 town council meeting. June’s report will reflect these changes to approved budget. • Approval of March 21, 2019 Minutes (5 minutes), Board Motion – Skip/Second – Jessie/Approval - Unanimous • Update from Town Council Meeting (10 minutes), Board/SITE Meeting and funding approvals went well: quickly and smoothly. No additional comments or concerns, board vice chair expressed thanks. • Eagle County Regional Airport (20 minutes), Barry Bratton Barry is Interim Airport Director. Introduced Jeff Shroll, Eagle County Manager, and Air Service Coordinator Jodi Doney who were also in attendance. Recap: See Eagle Airport is a great facility with the capacity to handle all significant, heavy aircraft, other than wide-bodied aircraft. Currently using mix of Boeing and Airbus aircraft. Main carrier is American, also Delta and United. Last season, provided service to 14 destination cities out of Eagle. Summer service will be offered to DFW and DEN. Please see SLIDES: for breakdown of service details, service by carrier, service by day-of-- week, nonstop service info, international markets, seasonal fluctuations, and daily flight service info (i.e., Tuesday and Wednesday are lightest days.) Scheduled seats showed a slight decline from 2018, but still well over 2017. In spite of lower capacity, there was an 8% increase in enplanements, even with a decline in American service and Air Canada pulling out of the market altogether this past season. United has picked up some of the service gap from AA decline. Please see slides for breakdown: information regarding Eagle county investment, domestic market vs international markets. Discussion re: ongoing opportunities, especially with Mexican airline partners. (Mexico is number one international origin market.) Airport reps have been speaking to AA about the decline. American still loves Eagle so they are optimistic about future opportunities. Improvements, remodel and modifications recapped, please see SLIDES for pictures, explanation of investment, remodel information and the new services and amenities that the airport will provide, including terminal expansion (35 million dollar project.) Includes four new jet bridges, and many facilities specifically requested by airlines. Slides include rendition of terminal expansion and improvements. Remodel will be complete and planned to be fully open for next winter season! Question re: why American Airlines service has declined, and whether this was a service decline in one particular city? Ans: This is a reduction across the board, including reduction of upcoming fall service to DFW. This is not as much of a demand problem; rather it is an issue with the aircraft fit. They tried service with an Airbus aircraft but could not get load factors (losing money with too many open seats.) Tried a regional jet with more appropriate seating numbers, but this aircraft did not perform well at altitude. Barry explained that a 50-seat, high performance aircraft is optimum for Eagle, but American does not have the right aircraft. They are not optimistic about improving reduced service numbers for this coming fall season, but they are working on solutions. Positive comments were that American really loves Eagle and they want to work together to reverse this current decline. Comments and questions: both TOV and VLMD have invested a lot, and desire to continue to be supportive. What is potential to grow and how do we bring more people here? Grow summer service? Increase guarantee funds? Aircraft issues? Combination of all approaches suggested. Incentives and revenue guarantees can be part of this approach, but Barry does not suggest this as the first marketing tool for air carriers. Fleet mix is also a needed element. Altitude and temps strain equipment – not all can operate efficiently in this area, need right mix of appropriate aircraft. Airlines love the Valley, and suggestion is to be proactive in providing information on destination directly to airlines. They find do info in Vail Daily, etc.; what they need from this group is ‘the rest of the story,” i.e., insider info and suggestions that they are not aware of, insight that is not available easily. Barry encourages the group to feed information to Jodi Doney: events, anything of significance to bring visitors here, please share with air carriers. Jodi will be spearheading effort to get this information to the airlines, particularly in the off season – this is undersold time, and an opportunity. Board expressed enthusiasm and interest in continued support as well as funding; would like additional info regarding the best way to distribute funding across the seasons, i.e., what is best mix of guarantees across Winter/Summer and Spring/Fall? Chris Romer provided additional details of how the seasons and service have been supported. Funds have been distributed across all seasons looking back over the long term but have fluctuated in focus over the seasons. Also noted that historically, distribution started with a focus on summer service, then more winter focus; most recently, year round, spring and fall emphasis. Currently: budgeted guarantees for DC, small amount for Phoenix, and also budget for spring and fall. Summer is free market. Question re: seat chart for international and domestic markets, and how info is sourced for the slide showing origin city. Since many flights originate in locations other than those with direct flight service – helpful to know how this is derived? Barry responded that this is ticketing info, through the hubs, these include connecting flight info, and this is monitored closely. Airlines are provided with (and also watch) this information. Question/discussion re: additional info requested – board would like to see data insights, specifically for originating market info, for Q2 and Q3? (Q1 is on slide.) Question re: lag time on these reports? Answer: 6-9 months to have info available. Comment re: American service decline; United seems to have “woken up” to the opportunity, realized that “Eagle is their backyard” (reference to Denver hub and opportunity with proximity of EGE – not to let AA take all opportunity) Question re: surveying – what can be done to assist with gathering this info, in order to improve upon 6-9 month time frame? Barry willing to work on this and partner on questions asked, etc. Additional discussion re: how VLMD can be additionally supportive; target lower cost carriers for locals; provide info to airlines. Invitation to please communicate these ideas and questions. Question re: what are the marketing plans for getting the word out to people on EGE improvements? Ans. Marketing to airlines is currently ongoing. Many of the improvements were requested by the airlines, so they are aware. Marketing efforts to the public, signage, etc. can be improved – willing to work on this. • Group Sales Update (15 minutes), Kim Brussow Kim presented strong quarter results and many successes. Sales team has changed efforts to “story telling” strategy, had a very strong quarter, please see SLIDES for details re: leads generated, results, and trade show trips. Trade shows have provided invaluable opportunities to be with over 2,000 meeting planners, and set hundreds of individual appointments. Also has greatly added to data base for marketing efforts. One particular recent site tour was a huge success, and resulted in a contract the next day. Sandra described efforts with a group of fitness business owners, which was a great example of how sales team assists partners in securing groups with individual attention and time spent that lodging partners often do not have the time to do. Efforts include personalized tours showing the area, walking through the village, telling stories and showcasing Vail in a manner that is very successful in partnership with on-site location tours. Sales team can assist our partners in this essential way. Houston rodeo event has turned into signature event. Successful co-op with Sonnenalp. Additional 1st Q highlights – please SEE SLIDES. Yoga group in June, Mayo Clinic in July, etc. Best Destination Management award - Congrats to Susan Proffit and VVP team! MTS (Mountain Trade Symposium) coming to Vail in April 2021 Highlights of “what’s trending” slide: Incentive and Corporate meetings on the rise, resulting in trade show focus Technology Non-traditional meeting events (out of board room, bringing the outdoors in, corporate responsibility and charitable partnerships, puppy petting, etc. Providing budgets upfront results in customizing and more fine tuning of catering to these groups 3rd party commissions down 9 Airbnb vs room blocks at hotels Technology – extremely interesting advances; facial recognition, drones for hot spots, etc. (7 million drones in meetings and events by 2020!), combo with physical and virtual attendance improving numbers and attendance rates, event apps on smart phones. Trade show locations and results – please see SLIDES for additional detail and explanation – FICP – primarily financial industry planners, Susan has established and developed relationships IPEC, Houston rodeo, MIC of Colorado (Denver), Connect Mountain Incentive (new effort, does a good job qualifying planners to maximize one on one and networking) Susan recapped “Best of” awards outside of Denver (small venue, large venue, etc.) Reflects messaging and relationships, random nomination received, and readers vote. Up against Breckenridge, Front Range, Winter park, etc. and therefore Vail’s success here is great reflection of work of Kim, Susan, Sandra and team! Kim explained upcoming plans for Q2, upcoming trips in April –July. CVENT leads recap: great results, closing business and revenue increases. YOY increases and positive result on return for investment. • Public Relations Update (15 mins), Kristin Yantis Kristen recapped PR results for quantitative and qualitative results for Q1. (Q1 winter update, already reported detailed visits and results to board.) Looking ahead, many press trips are scheduled. Upcoming trips scheduled with Hotel Talisa, Four Seasons, four confirmed, and in process of working on additional visits for summer. Please see SLIDES. Comp set scaled back this summer in favor of more targeted quality versus quantity. Kristen shared additional info of the quality events being covered, as compared to Breck and Aspen, i.e. Vail Dance, also included in “Best places to go each week of the summer.” Recap of the types and numbers of messaging mentions. Continue to push teen messaging. Discussion re: influencer program, partnered with Cactus. Secured one more visit with additionally approved funding. Harder to find families with teens than active professionals, but have secured three additional family influencer visits for each month this summer. Breakdown and explanation of influencer details, content, how many followers, engagement, etc. MYPR focusing on people with the right followers, as opposed to just numbers, in order to secure the best value for this investment. Using CLEAR criteria to vet and choose participants. Manor Vail has stepped up to offer lodging and/or discounted lodging for these influencer visits. Not as many properties have stepped up to participate, thanks expressed to Manor Vail. Questions re: transportation and arrival. For press trips, goal is to get media into Eagle, for influencers arriving into Denver, effort made to use private van transportation to cut down travel time getting to Vail. Discussion re: best activities and influencer responses to plan and set up the best activities, meet specific itinerary requirements and push them into focus areas. Average budget spend target, between $1,000 and $2,000, try not to go over $2K. Contract specifies content, posts, stories they are required to provide for trip. Hashtags are provided for them, as well as media tool kit with social media info, and they are required to use specific hashtags. Discussion re: trails opening late – how to offset this and encourage use of biking path and lower elevation trails, etc. A specific questionnaire document is used to plan these trips and to suggest specific activities, etc. Discussion re: hotels not hosting and selection process, ability to change dates, how to spread out visits and giving lodging partners opportunity to bid. Best deal, discount, etc. is large consideration in booking properties, (not as much the dates, though midweek is encouraged.) Deliverables – please see slide Question re: providing Bravo! Tickets • Email Update (10 minutes), Vail Mountain Marketing, Hannah Update from corporate team, detailing strategy shifts. Focus is one broader message, less targeted for summer, yet increasing the number of recipients of the summer messaging. Question and discussion re: email audience targets and breakdown, new platform switches from old system, question re: database used by Cactus, can someone explain the segments? SEE SLIDES – Images with messaging, creative elements explained, and strategy for specific destination targets vs. “remaining audience” messages. • Research Update (15 minutes), Cactus, Hannah Molly Katz introduced. Recap of destination audience research and remaining audience messages. – SEE SLIDES Deeper research questions and discussion: specific qualifiers in place to be invited to study. Recollective project/timeline – will be shared with board at May 16 meeting. Phase we are in now, April 12 – 26, community guide development and finalization. Burke Research update, provided by Hannah Discussion re: Burke and other research tactics – Burke done every other year, online survey, most valuable are funnel metrics (see slide for these specifics.) • Digital Report (10 minutes), Cactus, Katie Provided updates for March performance. 1) Live streaming – resonated with audience 2) Mobile AI info 3) New tactic this year Paid social messaging recap – see slide – recap of March messaging performance to different audiences, and engagement results. “Book by June 1” lodging offer call to action message is believed to be driving stronger click-to- site performance. Data reported thus far is on video. Question and discussion re: which video messages are performing. • Creative Updates (15 minutes), Cactus, Hannah Explanation provide of strategy and how events are segmented into categories, outdoor, culture, and culinary. Gave examples of Front Range ad spots. Questions RE: “Stella: logo appearing in photos – can this be covered up. (So it does not look like a Stella ad spot.) • DestiMetrics Report & Need Time Tactics (20 minutes), All Partners, Chris Chris gave recap and explanations. Summer bookings are currently down by 15%. ADR is up by 2% with occupancy down. Past 6 months reporting: rates down, occupancy up, current 6 months: rates up, occupancy down. SEE SLIDE Chris gave specific details, context to keep in mind for explanations of some of the shifts in booking patterns, to better understand data (i.e. Lacrosse shoot out date change). Overall bookings down across industry (not a Vail specific problem). Discussion re: multitude of reasons, no consensus yet on any one particular issue. Last year’s wildfires are of specific concern, but no real data yet to pinpoint one issue. Not time to panic yet but concerns and patterns are being closely watched. (Ideas for issues raised: tax return uncertainty, fantastic winter snow- people still in “ski mode,” wildfires, politics, SEE SLIDE – details for summer booking trends by month. March not a great booking month for summer but reiterated that this data reflects a similar patter across the entire industry for summer. Pacing trend of guests booking vacations closer in (especially for summer travel) makes this data harder to evaluate. Keep in mind that Colorado residents make up most of summer business, they book even closer to departure, so following data closely, but more information, time and context is needed. Bookings in March for March were up 5%. June -August also showing similar pattern of ADR up, with occupancy down. From a community standpoint, a better balance is healthier, with ADR and occupancy closer together and within a few percentage points. Larger gaps create more off kilter results; some lodging will step in to take a larger market share rather than maintaining a healthier balance for entire community. • Recommendations for Incremental Dollars (30 minutes), All Partners SEE SLIDE: Opportunities for Incremental dollars and ongoing discussion: Crisis/retail budget 44k allotted, discussion re: tactical plan to use these funds. Opportunity to brainstorm for Memorial Day weekend messaging. Meggen K. presented discussion/opportunities to use the 44k; recommendations for incremental tactics up to 150K. See Slide for opportunities, detailed: 1) Summer occupancy; 18K is on top of 44K for crisis/retail mgmt. 2) Expand influencers 3) Grow Search Engine Marketing efforts 4) Test teen focused events Comments re: Art in Public Places – commissioning artists to create mural in Vail, such as visible spot, farmers market area, parking structure exit near la Tour. Discussion re: increasing spend efforts to the “right size” (part of spend being considered/recommended by marketing team is to bring budget back up to where it was in years past, before more recent reductions. April to Oct timeline suggestion – see SLIDE. Comments re: using the funds for marketing rather than programming. Suggestion to allocate funds to numbers 1 and 3 (important – please SEE SLIDE) for summer occupancy efforts and SEM efforts and focus through entire summer. Questions and comments on funding allocation: (see slide – Opportunities for request to council for additional $150K). Raising motion today on 150K additional request? How specific does board need to be re: info presented to council, what is appropriate? Comment re: dollar amounts with specific details attached as presented here in this proposal is appropriate. Additional considerations and discussion: if funds are added to contingency/retail plan, other paid media channel tactics can be discussed to add to strategy suggestion #1 Comment re: proposed spend #1 also helps with proactively addressing situations such as wildfire concerns, etc. Motion to approve proposals #1 and #3 above for potential additional $150K request to town council Motion: Skip/Second – Amy/ Approval - Unanimous Implement early messaging shift right away; detailed messaging plan in May. Comment re: Q1 reporting great in market earlier, great job on this! Thank yous from Laurie and Mia for all partners and their work on this! • Other Business For approved incremental dollars, contract addendum regarding plans for additional funds should be drafted and submitted to Mia by each partner. Mia is available to help guide and assist. Meeting with Forest Service re: hiking trails experiencing over use issues, numbers, parking. Vail Mountain, Walking Mountains, and Forest Service working together to manage. Suggestion to also work with concierges to educate guests, spread people out. Many trails experiencing the problems are within the TOV limits. This year’s focus on education, monitoring, and promoting respectful trail etiquette. Discussion re: hiking maps provided, availability of information. VLMD and CSE meetings – reiterated that attendance is encouraged on both sides! Thanks to Jana (and anyone else not mentioned!) who has been at several CSE meetings. Matt will send a reminder to encourage sign ups. Next CSE meeting is May 1st. Announcement re: today’s event producers meeting following VLMD, all are invited to stay. May CSE meeting volunteer: Yann June CSE meeting volunteer: Esmarie • Adjournment Motion – Jessie/ Second – Skip/Approval - Unanimous Next VLMDAC Monthly Meeting, Thursday, May 16, 2019, Grand View Room