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HomeMy WebLinkAboutVLMD minutes Aug 22.2019_FINALVail Local Marketing District Advisory Council Monthly Meeting Thursday, August 22 8:30 am AGENDA August Meeting Materials In attendance: Skip Thurnauer - VLMD Beth Slifer - VLMD Amy Moser Harrison – Four Seasons - VLMD Esmarie Faessler – Sonnenalp - VLMD Laurie Mullen – WVLM - VLMD Mia Vlaar – Town of Vail Matt Miano – Town of Vail Jeremy Gross - Town of Vail Jess Sweetin - Vail Mtn. Hannah Eflin – Vail Mtn. Kristin Yantis – MYPR Meggen Kirkham – SITE Marketing Andrew Baker – CACTUS Mike Lee – CACTUS Ainslie Fortune – CACTUS Jenny Viditz-Ward – Vail Resorts Carlie Smith – Town of Vail Chris Romer – VVP Marrit Zoll - VVP Satchele Burns – Deadline Motion Jack Affleck – Affleck Enterprises Monthly Financial Report (5 minutes), Carlie Smith June lodging tax revenues: 138K; through YTD this is up 6.5% However, summer (May and June) is down 14% for lodging tax. Carlie reports that May and June are smaller months compared to the rest of the year, therefore if July comes in strong, this could bring it up to flat. Expenses for the year are at $1.7 million, which is 47% of budget. July, August, and December are the largest months for tax collection. Approval of July 18, 2019 Minutes (5 minutes), Board Motion to approve July 2019 minutes Motion: Skip/ Second: Laurie/ Approval: Unanimous CSE Meeting Updates (10 minutes), Board Member Awaiting info from the board member who was present. Reminder to please keep up the VLMD attendance/representation at this meeting. International Results (15 minutes), Jennifer Viditz Ward Jennifer provided a detailed recap of international efforts– please SEE SLIDES. Reviewed AMEX and groups: room nights booked and AMEX cards distributed. Last year these sold out, this year there are eight remaining. They can be used for next summer if needed. Good wholesaler feedback on this promotion. The cards are given with the caveat that they are “only good in Vail.” Latin America Mission and FAM: please see SLIDE: detailed sales mission recaps. Additional strategic recommendation: linking wholesalers with influencers in order to provide more measurable results. An influencer serves purpose for activation, engagement, and measuring some results. Linking influencer together with a wholesaler is more effective as a call to action; when provided, allows better tracking of ROI. This past week, Jennifer met with the executive team, (which included Jose Louis Suarez, COO) of Volaris airlines, who stayed at the Sebastian. Volaris has 66 weekly direct flights to Denver from cities throughout Mexico, and are doing so well they will be growing that service to 90 flights beginning in October, (operating year round.) Very in tune with working with Vail Resorts. The owner of Frontier Airlines also owns part of Volaris, and has a home in Beaver Creek. Working on setting up additional flights. Jennifer visited 6 cities while in Mexico. Reports a strong foothold in Mexico City. Recommend shift to work on growing Monterrey, Guadalajara, and the Yucatan. Focusing down south for direct flights from Cancun. Wealthy have moved down there for safety and real estate opportunities. Recommend additional activation in Cancun airport for the wide international audience there that includes Argentina, Brazil, all through Latin America, and includes U.S. traveler exposure. Club Med has been promoting SKI in the Cancun airport. Recap of Mexico Influencer FAM, Dominican Republic - see SLIDE. Two FAM tours conducted. Provided influencer campaign details and number of followers. Reports strong results/exposure from these tours but reiterates again the need for wholesalers to be tied to these for measurable results. Panama Summer Marketing – please SEE SLIDE. Provided recap of radio campaigns, sales missions, hosted trainings, consumer events, digital campaigns, and results. Recommendation possibly cutting back on Panama efforts? Have invested for 2-3 last years. Please see SLIDES for details and photographs of influencer campaigns. Just wrapped up hosting top travel agents and wholesalers (agents that produce over $500K per season) from Brazil, Panama, Costa Rica, Argentina, Miami, and Mexico, along with head of American Airlines for Latin America. None had been here in the summertime before. Booked reservations for the winter and they will be promoting next summer as well. Influencer “CusiFIT” (1.2 million followers) posted daily, had huge engagement, and is finalizing a forthcoming report. Reported $15K savings from budget provided. Will consult with Mia regarding this budget savings. Regarding: cutting Panama –this is a suggestion in response to possible budget cuts. In addition, at the annual Mexico press event ($10K - $20K spend), the same participants are seen year after year. Recommend possibly hosting another FAM tour instead of spending on this event. Jen reports getting additional requests for Oktoberfest FAM tours. Comments re: past several years’ focus on Panama has also been because of the direct flights and ease of clearing customs in Denver for guests coming in from Latin America. Laurie Mullen posted question re: What does the AMEX promo cost? Ans. $505 per card. Eight remain. Additional recommendation to consider dropping tours down to 5-night stays from 7-nights. Overall, FAM tours are very successful and yield tangible results. Kristin Yantis: comment re: it would be ideal to have Vail gift cards that can only be used in Vail, keeping the spend local, as well as to track more effectively. Epic pass validity in summer is strong selling point; Vail has largest amount of on-mountain activities after Breckenridge. Vail Summer 2019 Mexico FAM trip – please SEE SLIDE for details. Kristin provided recap of press trip results, media outlet coverage, and examples of articles. Some of the media coverage also incorporated the influencers. Paid Media – please SEE SLIDE. Comments and discussion re: ways to better demonstrate ROI, such as working with AMEX direct. Part of team’s strategic recommendation is to increase the paid media buy. Beth: comment re: makes sense to side step Mexico press event based on feedback, and reallocate $10K - $20K. 2020 Operating Plan & Budget (30 minutes), Cactus Ainslie presented the 2020 plan and budget, including specific data recommendation, then partner budget recommendation, and would like to request board approval. Introduced Mike Lee, Head of Strategy, and Andrew Baker, Head of Creative Technology Please see SLIDE: “Data and Web CONTEXT” Mike reviewed and detailed the strategy recommendations for the VLMD move forward as a “modern marketing organization,” with a data-driven approach. In past years’ partnership with Vail Resorts, corporate constraints have prevented the access to all data levels needed to move forward with an effective data-driven approach, and shifts in marketing trends will create additional future limitations. Presented detailed proposal for VLMD to create their own website, in order to create and own their own data, to use this data to better inform marketing decisions, and move toward a 1:1 marketing approach. Mike provided a review of the traveler decision making process. VLMD is currently collecting and has some limited performance metrics across this process, but does not have all necessary information or connection across all categories. Destimetrics provides occupancy, but not conversion data. Bottom line is VLMD does not have all the data that is needed, and data categories do not effectively “talk to one another.” Building this owned data set will merge the data across all categories through a traveler’s entire planning process, and include possible future real-time response capability. Please see SLIDES for detailed proposal and partner recommendations. First, build website and data stack. See SLIDE: recap of three types of data, and identification of system gaps in current data stack, plan to address, including CRM. Next, a Data Management Platform (DNP is needed to connect the information in the data stack, and make it actionable. Please see SLIDES for detailed analysis of providers, comparison of capabilities, and overall recommendations. Vail Resorts site is built to intentionally prioritize and promote Vail Resorts assets; VLMD needs to shift to have taxpayer dollars, paid activities and marketing efforts devoted to a site that promotes all of Vail, and Vail businesses holistically. VLMD site will represent the whole Vail experience, and simultaneously be able to capture and own its own data. Beth Slifer question re: when VLMD has site and system up and running, will Vail Resorts (Vail.com) covert to only VR assets promotion? Ans. Yes, but they are almost there already. Links will be provided on both sites to send guests and visitors between sites. Hannah: VR intends to maintain close collaboration and are supportive of links between the two. Mia: comment re: transactionally,Vail.com is exclusively Vail Resorts products. They will continue to focus on their own assets, and the new VLMD site will open up transactions/connections to other opportunities. Skip: ? re: ongoing maintenance of site, is this the responsibility of a TOV employee? Answer. They do not wish to create undue burden in this area; the plan is to map out this business process in their discovery planning, and set up technology as required. Goal is to be able to “hand it over.” Additional questions and discussion re: any unforeseen costs, how the day-to-day of the site will be maintained once created. This is still being determined and finalized, in addition to questions of integration with existing technology, such as existing Vail Wi-Fi. Kristin: does this mean creation of a whole new branding effort and logo? Ans. This is one of the conversations needed. Esmarie: comment on URLs, and request for list as to the current domain options. Breck has a similar site and relationship structure, no branding on site at all. Romer comments re: other mountain towns also have similar sites. Discussion: perhaps general information could be exchanged among these towns. Mike detailed the additional components missing from current system, (please SEE SLIDE - highlighted in red, “data system gaps”) and provided analysis of partner options to address these gaps, with comparisons. This will be finalized; overall recommendations include partnerships with ADARA, AirDNA, Sales Force Social Studio, and Salesforce Marketing Cloud (for DNP and CRM). Kristin: will the VLMD have their own social media websites and components? Not required, but can be discussed further. Next steps and budget: Ainslie, Andrew. Discussion of cost analysis and timeline. The process will take 4-6 months to build out website and establish partnerships. Based on this, recommend requesting incremental funds in 2019, to go ahead and start work in October, with goal to go live in March. Andrew also recapped what is included in each phase of the process - please see SLIDES (Design and Implementation timeline) for details, website build steps, SEO phase, design and prototype, software development, testing, training documents, and launch. Request 303k incremental funds in 2019. A major component is licensing. Please see SLIDE for breakdown of request. Paid from fund balance. Additional costs will fall into 2020. Total $414,500 includes additional $112k in January-February 2020 for additional development and licensing. All data and site will be owned formally by VLMD, with Town of Vail support. 2020 Strategic Plan and Budget recommendations – Ainslie Please see overview SLIDE – summary of board direction and board approved goals. Partner review meeting of collective goals in July was a great conversation with productive decisions. First, re: recommendation for funding for the data build, partners agree that data-driven marketing is key for all. Each partner will look at where we obtain data, how we generate data, and how we use data, to merge plans accordingly. Second, discussion re: how to do a better job of developing “Annual theme.” Third, identifying and focusing “unique differentiators,” such as leaning into the Bavarian flavor of Vail. Budget review and summary: with requests in 2019, 2020 budget will remain flat at $3.5 M. Please see SLIDES for details of budget shifts / additions / savings. Beth ? re: 400k currently to Vail Resorts, will this amount still be included in 2020 budget? Discussion re: some specific budget shifts; Vail resorts funding will go from about $400k to $100K. There are ongoing conversations about handling international components. Discussion before vote, re: supplemental $302k to proceed with data project. Motion to approve $302 supplemental funds to proceed with data project. Motion: Skip/ Second: Amy/ Approval: Unanimous Discussion re: the $302 coming from reserves, to remain at 27%? Skip; ? re: confidence in maintaining 27%? Carly reports that yes, there is confidence. Motion to approve 2020 $3.5 million budget to be presented to council on Sept. 3. Motion: Laurie/ Second: Skip/ Approval: Unanimous Motion passes with clarification that there may be additional budget shifts. Email, Web, Organic Social & SEM Update (15 minutes), Vail Marketing Please see SLIDES: June and July email performance, July SEM July Social performance, and Vailsummer.com metrics. Did not have information last meeting due to issue between Adobe Campaigns and Adobe Analytics in moving platforms, so they looked at visitation during the time the email was deployed. Results are whole numbers, not percentages. Sites have about half the visitations when content was not deployed. Able to look at unique visitors to site. Volume YOY – looked at average of all of sends last summer, but this is not an apples-to-apples comparison, as they cannot pull volume for each segment. This is all of email sends. Open rate is about 23% in summertime. Cannot share exact number of opens – this is proprietary info – but can share that they are happy with the numbers. Visitation strong to Vailsummer.com. Volume slightly down YOY as they address platform move issues. Events received a lot of visitation. Again volume is down, but comparison is against average from send to entire database, not segments. Strong click through rate reported. Events message strong, bookings message slightly down from their expectation. July SEM – due to budget amounts, shifted funds from non-branded to branded search terms as this area showed stronger interest. Cost per click up only slightly YOY, but very strong showing against June numbers, Impressions down slightly with spend slightly down 9%. Click through rate up 2%. VailSummer.com dashboard has been shared with Cactus. Cannot compare to prior years’ data as the site is new; recommend looking at summer traffic at mid-point of season, as well as a full summer recap. Average page views is 1.25; they report that 2 page views is a really strong number, for comparison. Number one “most clicked off to” page is activities; deals is second. Web performance by audience breakout, top performing content, and organic social media performance – please SEE SLIDES. Social is consistently performing well with consistent posting cadence. Plan to continue this strategy through next year. Satchele – hiking videos - a few changes to Piney SUP video. • Influencer Program Report (10 minutes), Cactus Kristin provider influencer recap – 4 active professionals, 3 families; still have a few more visits. Review of influencer visits thus far and social media results, posting results, reach. Asked to look at media value against media dollars spent; will discuss with Cactus. Total cost for influencer program is $30 - $40K. Highest performers, engagement rate, please see SLIDES. Thank you to Four Seasons for hosting influencer over the Vail Film Festival. • Asset Acquisition Update (20 minutes), Cactus, SITE, Jack Affleck Review of 2019 brand shoot goals, took place in July. More ethnic diversity represented. On mountain and in village asset capture. More to share in September. Review of shoots: “village editorial:” see example pictures capturing the “verdant village.” Captured excellent assets to replace outdated and smoky shots. Some challenges with Vail Mtn access; shifted to Vail Pass shots and new angles with a drone. “Music events;”’ and “Farm to table” asset capture examples. ? re: access under the tent for farm-to-table event. Angela has her own photographer with in –tent access. Discussion re: biking asset captures. Suggestions for more casual biking shots, e-bikes, less intense biking for urban dwellers, “any city person can do it,” type assets. Discussion re: moving the $15K from international budget savings; suggestion to compile list of specific additional venues with families, and mix of buildings to define the location, show where they are, rental bike venues. Motion to allocate up to $7 from international savings to capture some additional casual, more accessible experiences. Motion: Skip/ Second: Amy/ Approval: Unanimous • Summer Occupancy Update (10 minutes), Chris Romer Review of occupancy reports through Aug.15. Please see SLIDES. August and September show big peaks and valleys; October is flat. Laurie: ? re: Vail RevPAR down as compared to industry? Numbers look better from occupancy standpoint. Will continue to review reports. Comments re: the contingency/ retail crisis plan funds were already spent. Discussion re: fall season has been pushed in front range market, but travel in fall is more globally appealing, do we need to re-examine target for fall, keep this in mind with new website development? Suggest also looking at weekend versus full week travel, booking windows. September 3rd – next Town Council meeting to go over supplemental. September 17th – council meeting unlikely; time will be used to interview town manager candidates; 16th and 17th – public sessions, candidate forum. October 1st – Mia will not be in attendance at town council meeting Request for many members as possible to please attend the September 3rd meeting. Discussion re: presentation for Sept. 3rd meeting. Request for Skip to present, plus as many attending as possible, with slides from Cactus. At Town Council meeting on Tues., there was discussion re: definition of VLDM’s purview as outside of the ski mountain operating dates; dates shift slightly depending on opening and closing. Esmarie: comment re: opportunity for occupancy increases in October and May to continue to focus on. Vail resorts has had expertise in winter mountain marketing, VLMD will continue focus in time frame around the mountain, particularly in May and October, and also re-target opportunities in August and September before discussing expanding responsibilities, in cooperation with Vail resorts. Other Business Reminders: next VLMD meeting September 19th, location TBD. Thanks to Matt for his service! Mia hiring for this position. Amy will be at the next CSE meeting. Thanks for their attendance today. September 24th – first Vail community potluck. Not just for locals, hoping visitors will join, still some space at tables. VailSocial.com. – please visit to reserve tables. New hiking website to help people make good decisions for accessing East Vail trails, working with Forest Service, communicate information re: hiking and crowding in specific areas. HikeVail.net –hiking information – please visit. • Adjournment Motion to Adjourn Motion: Laurie/ Second: Skip/ Approval: Unanimous Next VLMDAC Monthly Meeting, Thursday, September 19, 2019, Grandview Room