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Home My WebLink About16. VLMDAC_August Presentation 8.20.20 v1.14VLMDAC BOARD MEETING AUGUST 20, 2020 Agenda •Monthly Financial Report, Carlie Smith •Approval of July 16, 2020 Minutes, Board •CSE Meeting Update, Skip Thurnauer •Proposed 2020 Supplemental Request: Database Roadmap & Lodging Liaison, Mia Vlaar, Liz Gladitsch, Jim Kellen, Bob Brown •2020 Creative, Cactus •Tactical Asset Acquisition Update, SITE Marketing •Results to Date, Cactus •2021 Budget & Strategic Operating Plan, Cactus & All Partners •Other Business MONTHLY FINANCIAL REPORT CSE MEETING UPDATE PROPOSED 2020 SUPPLEMENTAL BUDGET REQUEST With Database growth as a primary objective for 2021, it is recommended that a Database Roadmap build start in 2020 to best impact 2021 summer marketing efforts. Goal of Database Roadmap and Acceleration: Reference VLMD Data Driven Roadmap Overview in packet for additional details. Budget Outline: –(2020) Roadmap Development -$40K Supplemental Funds Required –(2021) Accelerated data -driven marketing -$30K –(2021) Phase 1 of Roadmap -Assessment and Foundation building -$60 -$100K 2020 Database Roadmap The enhancement of Lodging partners relationships is a primary objective for 2021. To best impact 2021 summer marketing efforts, the addition of a Lodging Liaison starting in 2020 is being recommended. Goal of Lodging Liaison: Create a cohesive voice for the lodging community and create open communication and regular reporting channels between the VLMDAC and the lodging community. Budget Outline: −(2020) 3-month timeframe: $12K Supplemental Funds Required −(2021) 12-month timeframe: $48k Supplemental Funds Required 2020 Lodging Liasion Summer lodging tax collections have outpaced the 2020 amended budget by $198,000. Staff recommends using a portion of these collections to fund these two new projects. Roadmap Development: $40,000 Lodging Liaison: $12,000 TOTAL: $52,000 2020 Supplemental Review The board is asked to approve the following funding reallocations as part of the 2020 supplemental budget 1.$11,400 from Public Relation Expenses to Asset Acquisition –Additional Asset (photo/video) Acquisition: To include patio dining, village lifestyle and social distanced event 2.$2,000 from Intercept Survey to Social Channel Growth –Social Channel Growth is part of our database growth and this will allow for strategic dedication to the channels, year-round 3.$1,500 from Trip Giveaway to Enhanced Website Server –The existing website server has a 5 second load time, creating a poor user experience. Pantheon, a server specializing in Word Press sites, has a less than 1 second load time. 2020 Budget Re-allocation 2020 CREATIVE 2020 Creative 2020 Creative 2020 Creative 2020 Creative Paid Media•Fall digital and traditional efforts in the Front Range 8/24-10/11.•Fall paid media efforts account for approximately 33% of the paid media budget. •Includes fall messaging across all audiences (Boomers, Active Professionals, Families).•Digital banners•Paid social•Paid email, including two added value email placements 9/9 and 9/22•Broadcast and Cable Television spots in the Front Range with over 650,000 impressions Public Relations•Draft/distribute fall tip sheet•Exploring satellite media tour in conjunction with Jennifer Broome•Securing one or two additional influencers for September visits•Assessing hosting Front Range media picnics•Researching virtual fall press trip Fall Initiatives Fall Video/TV Creative https://vimeo.com/steepmotionfilms /review/443428794/00654d9683 https://vimeo.com/steepmotionfilms /review/443425073/c203185868 Password: summer TACTICAL ASSET ACQUISITION UPDATE Patio Dining •Shooting Tuesday, August 18 •Locations: •Sweet Basil •AlpenRose •Demographics: Family, Super Boomer, Active Professionals, include diversity •Showing social distancing, with/without masks Village Lifestyle •Shooting Tuesday, August 18 •Main Gore Creek Drive; view corridor with Gore Range •Demographics: Family, Super Boomer, Active Professionals, include diversity •Showing social distancing, with/without masks Asset Acquisition Event/New Location •Craft Beer Festival “lower bench” location –August 14 •Demographics: Active Professionals, Super Boomers, diversity •Showing social distancing, with/without masks Fall Shoot –Opportunity TBD Based on Budget •Family hiking in fall leaves •Super Boomer golf in fall leaves •Fall dining scene Asset Acquisition RESULTS TO DATE Campaign Goals / KPIs •Optimize every step of the consumer journey towards VLMDAC goals for tax revenue and NPS •Increase consumer engagement to help drive loyalty •Improve Word of Mouth and NPS Score •Determine true ROI, or more appropriately ROAS (Return on Ad Spending) COVID Update •Nearly 6-in-10 agree that planning a vacation for sometime in the next 6 months would bring them happiness*. •Colorado, Alaska and Montana have joined Florida, Las Vegas, California and New York as some of the top destinations Americans are saying they most want to visit in the next year*. •COVID markets –Colorado: spiked in mid-July but new cases have decreased by 20% over the past 2-3 weeks –Dallas: as of 7/20, Dallas has been on the decline since the first time in 2.5 months –KC:cases have been declined 12% in the past two weeks –Chicago: has seen a rise of late July; we will continue to monitor the market –New Mexico: instituted a 14-day quarantine for any individual entering the state * Destination Analysts 8/9 report Example of Monthly Partner Dashboard HIGH-LEVEL ROLLING METRICS Return on Digital Ad Spend+Occupancy Adara Reported $3.50 RODAS = Adara Revenue Produced / Digital spend = Adara Reported RODAS x 1.72 (weighted for 28% of market) Adara Adjusted $6.01 RODAS Seasonal Lodging Occupancy 21.8% Seasonal Short-Term Rental Occupancy 41.5% Destimetrics reported May through July AirDNA Short Term Rental (STR) reported May through June Average Daily Rate Remains Strong Seasonal ADR $206.33 YOY ADRComparison -6.6% Sales & Lodging Tax Seasonal (May-June) Lodging Tax $142,118 (-5% YOY) Database & Social Cumulative Social FollowersCumulative Database 13,453 (+61% over last month) (+50% over last month) 341 A TALE OF TWO TRAVELERS Short Term Rental vs. Lodging Comparison in June 6.8 Avg. Party Size (Adara reported) 2.4 22%16% Short-term Rentals Lodging Properties Avg. Party Size (AirDNA reported) Occupancy (AirDNA reported) Occupancy (Destimetrics reported) 75,154 Estimated Travelers 25,315 Estimated Travelers Short-term rentals in June surpassed hotel bookings •There are approximately 2,000 short-term rental properties available in Town of Vail •In May, the total number of active rentals was at 70% •Short-term rentals benefit when occupancy restrictions are in place •Short-term rentals did not have to reduce to 50% occupancy like hotels and resorts •Short-term rentals surpassed lodges with nights booked (11,052 nights booked for short-term rentals vs. 10,548 nights booked for lodging properties) •Safety concerns •Short-term rentals average over 7 nights booked per property as compared with lodging properties Implication: Trends indicate there is a changing consumer behavior favoring a more controlled vacation experience where they can manage the cleaning upon arrival and avoid common areas such as lobbies and elevators. We’ll continue to evaluate to keep our eye on this trend to understand if it is becoming permanent or COVID related. Short-term rentals in June surpassed hotel bookings Lodging Occupancy is Improving June OccupancyMay Occupancy 4.9% -77% YOY 15% -68% YOY July Occupancy 45.5% -30% YOY Lodging Guest Profile is Consistent with Past YTD Avg. # of Guests 2.3 YTD Avg.Age 39 YTD Avg. HHI $76K YTD Avg. Members in HH 2.5 •Geographic origins of visitors are similar to past years with Colorado as the primary source of visitors followed by Texas, Florida and California. •Of overall responses, 59% are overnight visitors, and 16% are second home owners. •Mexico is a relatively strong market this year according to the survey responses (6%), but with a majority of these of visitors (63%) indicating that they are second homeowners. In-Market Traveler Details Paid Media Delivery Ramps Up in July July % of spend July impressions July clicks 38%18.8M 72.5K 49% of spend through July 31 •11% June •27% August •18% September •6% October 23.2M cumulatively through July 31, increasing impression delivery by 254% MOM 89.3K cumulatively through July 31, increasing clicks by 97% MOM PPC is the top performing media tactic •PPC is performing under CTR benchmark, but is driving the highest hotel booking conversion and highest on-site engagement among all tactics •Front Range is driven by searches for Vail; Destination is driven by searches for mountain vacations •While CTR for branded terms (1.12%) is under benchmark (4.28%), the booking volume and time on-site indicates that these keywords are the best opportunity for Front Range as there is strong awareness for Vail •Not surprisingly, destination travelers are unsure of where they want to go as they are mostly searching “things to do in Colorado” and activities in Colorado •Searches around things to do and activities in Vail are driving a click-thru rate (9.14%) that is 2x higher than the Google benchmark performance for Travel & Tourism (4.28%) •Highest time on site and pages viewed per session among all paid media tactics •Travelers searching general mountain vacation and event terms are spending the highest time on site (2:30 minutes on average) and viewing the most pages per session (2.9 pages on average) •Time on site benchmark for PPC is 2 minutes •Pages per session benchmark for PPC is 2.5 pages Implication: Continue to maximize PPC investment and optimize against cost per click (CPC) and click-thru rate (CTR). PPC is the top performing media tactic Benchmark TOS: Excellent: 3+ min Good: 2+ min Average: 1+ minute Website Insights YTD When WiFi gating, Email, and other traffic is filtered Avg. Session Duration 3:00 3.4918% Benchmark Bounce Rate: Excellent: < 25% Good: 26% -49% Average: 50%-65% Pages per SessionBounce Rate Benchmark P/S: Excellent: 3+ p/s Good: 2 p/s Average: 1 p/s Users are spending time with key content Top pages with top engagement: -7+ Minutes: Vail Strong -5+ Minutes: Open Restaurants -3+ Minutes: Dining, Rafting/Private Tours, Lodging, Rent a bike -2+ Minutes: Shopping, Top 5 Hiking Trails, Events, Gondola, Teens Summer, Epic tubing, SUP Implications: 1.Continue to build and refine relevant content around COVID planning, openings, in-market availability, in-market experience. 2.Reintroduce the lodgings page with links to short-term rentals for expanded insight tracking 2021 BUDGET & STRATEGIC OPERATING PLAN EXPERIENCE SHARING / WOM ADVERTISING AWARENESS 2019 –1 Year Ago We were missing a large part of our data story and we set out to find solutions to fill in this missing information. BOOKING CONVERSION EXPERIENCE SHARING / WOM ADVERTISING AWARENESS 2020 -Today Today we have multiple sources of data inputs and outputs that we can utilize to impact our tax and NPS goals BOOKING CONVERSION BOOKING CONVERSION EXPERIENCE SHARING / WOM ADVERTISING AWARENESS 2021… Moving forward we will use the data collected to make informed and rapid optimizations that will impact our goals EXPERIENCE Approach The partners have worked together over the past two months to establish a strategic plan and budget that will help us recover from the impacts of COVID and set us up for years to come. Continue to build out available data to drive efficient and personalized content that leads to conversion Data-Driven Marketing Continue to drive and amplify efforts to get the right audience into our database so we have 1st party data available for future use. Database Enhancement Use data to identify and prioritize content needs within our website and social channels Content Refinement Key Benefits of this approach 1.Data-driven decision-making: transparency into efficiency & effectiveness, regardless of budget 2.Complementary, synergistic growth and optimization across ecosystem 3.Evaluation tool for strategic planning across all verticals, tactics, strategic, and creative development 4.Performance evaluation based on primary goal return vs. industry benchmarks or KPI’s 5.Long-term protection from 3rd party data changes 2021 Budget –Overview •Plan A Level “50% of 2019 revenues” •Total Budget $2,044,024 •$527,976 reduction from 2020 crisis level budgeted expenses •$1,455,976 reduction from 2020 original level budgeted expenses •Uses $200,000 from reserves, resulting in 18% Fund Balance Traditional vs. Digital Media •Minimum investment of $75K for Front Range would only result in a 35% reach with an average frequency of 3.3 •Digital media allows for shorter lead times for planning and materials making it more flexible •Digital media can be tracked from media performance metrics to directional impact on bookings •Digital has a lower impression cost and can be purchased on cost per action helping to stretch dollars further Traditional vs. Digital Media •Digital reaches all audiences including 55+ •Social media accounts for the largest share of time spent online among adults 55+ nationally (source: Global Web Index, 2019) •A55+ in Denver-Boulder spend the most online time using social media followed by news content, according to Nielsen-Scarborough data •Spend an average of 22-44 hours weekly on social media (source: Nielsen, 2020) •Spend an average of 10-22 hours weekly consuming online news (source: Nielsen, 2020) •Super Boomers in the Front Range were the top performing audience on Facebook/Instagram in 2019 •In 2019, they had the top CTR at 0.33% and highest VCR at 92% Groups –Background •Events and gatherings (groups) have been severely impacted by COVID social distancing requirements and gathering sizes •Historical DestiMetrics reports show group business exceeds leisure business in Town of Vail in the months of May, June, September, and October •We understand the budgetary reductions and restrictions and will work to ensure a strategic shift within VLMD budget allotment to position group sales for a strong rebound when conditions merit Groups –Trends •Many 2020 group programs have rebooked to 2021 or beyond •Smaller group programs expected (with exceptions such as Mountain Travel Symposium, still planning on April 2021) •Site tours and group leads are still coming in, albeit at a lower pace Groups –Strategic Shifts •Shift efforts from traditional group sales (travel trade, lead generation) to a hybrid group sales-group marketing-destination support role at the request of the VLMDAC –Focus on industry relationships with group & meeting industry on behalf of the brand –Strengthen local lodging community relationships –Position Vail for a quick recovery when group & meeting business rebounds •Lead community marketing services (primarily CVENT) to increase brand awareness and group consideration of Vail –Ensure we are targeting meeting planners and promoting Vail and Vail lodging partners as a group destination, with leads sent direct to lodging partners Groups –Tactical Shifts •Focus on database 1,705 Colorado meeting planners with key message: Vail is Open for Business –We’re Ready When You Are. –Efforts to focus on drive market, SMERF events, and being flexible to adapt to industry trends as needed to drive group business •Reduced budgets for direct sales, travel/tradeshow, industry memberships, site tour/FAM tour, and event recruiting 2021 Budget –Decreases •Overall partner fees have been reduced by 43% with reductions in scopes of work and movement of responsibilities to the TOV •Overall creative/branding and production reduced by 65%, as 2021 ccreative and branding will be a refinement of current creative, rather than new development and overall production budgets are reduced by using existing assets •Asset Acquisition reduced by 66% with the removal of a large scale “Brand” asset acquisition and instead brand and tactical assets being captured using local partners, talent and production. 2021 Budget –Decreases •Traditional media advertising in Destination and Front Range markets cut entirely •PR reduced BY 32% by reducing in market media travel and community relations and eliminating media gifts, PR Newswire distribution and online media center expenses •Groups budget reduced by 64% by cutting Direct sales, travel/tradeshow, industry memberships, site tour/FAM tour, and event recruiting •Mexico efforts reduced by 95% to maintain basic exposure/awareness 2021 Budget –Decreases •Burke Brand Research has been removed •Social video decreased by 87% by minimizing production, using existing assets and produced pieces •Data Capture removal of trip giveaways •Omitting the development and distribution on the master summer/winter •No “Contingency” line item in budget 2021 Budget Maintenance •Database/Warehousing Solutions •Adara, SalesForce Audience Studio, SalesForce Marketing Studio, SalesForce Social Studio, AirDNA. •Digital advertising efforts in Destination and Front Range markets will remain, however at a 10% reduction from 2020. •Influencer Program returns to pre COVID levels •Group Sales efforts shift from traditional group sales (travel trade, lead generation) to a hybrid group sales-group marketing-destination support role. •Tactical Asset Acquisitions 2021 Budget –Increases/ New Initiatives •Database Roadmap Development/Acceleration Initiative with a 30% increase in budget allocation •Lodging Task Force/Liaison Initiative with a 100% increase in budget •Continued support and investment in discovervail.com with a 47% increase in budget allocation •Website UX Audit •SEO Audit 2021 Budget –Level B Initiatives Should 2020 revenue exceed forecast and additional budget becomes available, we would consider scaling up the following based on budget as well as market conditions: •Increase paid media (prioritize traditional in Front Range) •Reinstate Public Relations in-market travel and Newswire •Increase Mexico Efforts TBD based on travel restrictions •Partner Fees returning to “more normal” levels •Evaluate Group Sales strategy and tactics •Research –Burke and/or other brand research NEXT STEPS 2021 Planning Timeline July 16 Sept 15 Develop 2020 Draft Budget & Operating Plan Partners Planning Session Aug 20 Present Plan to VLMDAC Refine & Finalize Budget & Operating Plan Present Plan at Town Council Thank you! Upcoming Meetings: VLMDAC Monthly Meeting, September 17, 2020 APPENDIX Campaign Goals / KPIs INSPIRATION CONSIDERATION BOOKING PLANNING EXPERIENCING SHARING Paid Media Performance: Digital Traditional Evaluate digital media: Messages Audiences Tactics Devices Time + day Seasonality Behavior Tracking: Competitive set interest Search (events, weather, dining, etc.) Channel behavior Web behavior (new vs previous visitation, time on site, pages visited, onsite actions, content searched, database sign up, etc.) Understand and optimize: BookDirect (onsite action through booking conversion) Adara (booking timeline and trip details like length of stay, how much $, party size) Other sources (lodging reports, Destimetrics, etc.) Search behavior via Google Owned activity engagement: Website Social In-market businesses In-market data: restaurants Movement through Vail Points of interest NPS Real-time problem solving Recognition Reward, Amplification Organic social monitoring: Engagement Sentiment Sharing Shareable moments that can inform the journey Encourage re-visitation Website Results for July 2020 Site Visitors Avg. Site SessionSite Sessions 92.4K 79.5K 0:53 184.45%increase in Site Sessions in July. 32.5k June 189%increase in site visitors in June. 27.4k June -38%decrease in site visitors in July. 1:25 June Website Engagement July 2020 Lodging SearchesEmail Sign-ups 185 Lodging Referral Clicks *Referrals = click on property in search results page to be directed to property page. 1,1771,565 101% increase in newsletter sign-ups in July. 92 June 43% increase in lodging searches in June. 1091 June 49% increase in referral clicks in July. 792 June Adara Results July hotel searches July average length of stay July hotel bookings 12,804 254 2.8 days Unadjusted Adara Return on Digital Ad Spend (RODAS) is $3.50 reflecting only 28% of available hotel inventory