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Home My WebLink AboutVLMDAC Mar 1 Supplemental FinalMARCH 1, 2021 VLMDAC SPECIAL BOARD MEETING Agenda •Budget Overview •Supplemental Strategy & Priorities, Cactus •Supplemental Plan Considerations -All Partners, Town of Vail •Discussion of 2021 Goals •VLMDAC Vote on Supplemental Budget Level to be Presented to VLMD on April 6 (or March 16) •Other Business BUDGET OVERVIEW YOY Budget Comps 0% 20% 40% 60% 80% $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 2019 2020 Original 2020 COVID 2021 Original 2021 Level A 2021 Level B Budget Fund Balance 2019 2020 Original 2020 COVID 2021 Original 2021 Level A 2021 Level B Budget $3,634,714 $3,500,000 $2,572,000 $2,184,024 $3,184,024 $3,654,024 Fund Balance 36%29%18%59%34%25% SUPPLEMENTAL STRATEGY & PRIORITIES Supplemental Strategy •Continue investing in website with robust content and enhancements that tell a more complete story, increase demand and drive conversion •Continue investing on Data Systems in order to collect more data and improve our marketing efforts ultimately increasing demand and driving conversion •Drive overnight visitation; with pent up demand for travel, Vail should lead the fight for share among CO mountain resorts in Destination and Front Range markets •Invest in the future Vail brand and positioning; laying the groundwork for 2022 and beyond Supplemental Priorities Driving Demand and Increasing Conversion 1.Content Plan and Execution 2.Website Enhancements 3.Data Systems Investment 4.Increase Paid Media 5.Vail Branding –Positioning, Creative, Assets, Execution 6.Public Relations Situation Dependent 7. Contingency SUPPLEMENTAL PLAN CONSIDERATIONS 1. Content Plan & Execution •UX enhancements identified through audit •SEO 9-month plan •Landing page design, dev, QA and deployment by persona •Content plan with mapped deliverables through 2021 •Itinerary concepting •Editorial content collaboration •Content implementation •On-going content delivery •On-going content population Budget: $156,500 Current Budget: NA –coming out of TOV fees Timing: March-Dec ROI/KPI’s: •Improved site metrics (time on site, pages visited, etc.) •Organic search position PLAN A and PLAN B 2. Website Enhancements •Website imagery resizing tool •Google map integration with some interactivity Budget: $8,068 Timing: March-May ROI/KPI’s: Improved site metrics (time on site, pages visited, etc.) PLAN A and PLAN B Data Systems Continue to evolve the critical building blocks upon which a long-term, effective, efficient, and measurable data-driven marketing strategy is built and operationalized Organizational Collaboration: Identify and fill as needed any skill gaps, and establish the processes within the coordinated partner group to run targeted, personalized, and relevant campaigns across multiple guest touchpoints Marketing Data: Continue to increase the percentage of guests that pass-through Vail who sign-up for and provide personal data in exchange for free Wi-Fi, and if identified, integrate second party data from our partners in retail/hospitality/F&B Analytics/Insights: Ensure that all outbound marketing efforts across touchpoints are measured for engagement at the individual/segment level, and define customer lifecycle segmentation using data to indicate where in their journey our guests are Marketing Strategy: Continue to refine our capabilities to target guests within key phases of their journey, and implement one manual multi-channel data-driven campaign to act as a basis to seed the ROI model for potential future investment Execution: Refine the current outbound capabilities of touchpoint-by-touchpoint distribution of content/marketing messages to enable channel consistency, accuracy, and reportability Budget: $136,400 Timing: July-Dec KPI: Long term foundation for database enhancement to increase demand and driving conversion PLAN A and PLAN B 4. Increase Paid Media Strategy, planning, buying, and reporting Destination Air •Destination Air Marketing in Dallas Digital •Increase destination support in Houston and Chicago •Add 5280 partnership for Front Range Traditional •Destination Traditional media (TV) supporting Dallas market Timing: March -September Budget: $304,000 ROI/KPI’s: Impressions, clicks, Adara PLAN A PLAN B (Inclusive of A) Destination Air •Additional Dallas digital tactics Digital •Targeted new market testing with top performing Adara markets like NYC, SF, or Austin •Market agnostic digital branded content Traditional •Destination Traditional media expanded in Dallas (add OOH) and/or secondary market (Chicago) •Traditional Front Range (TV only) Timing: March -September Budget: $720,000 ROI/KPI’s: Impressions, clicks, Adara Front Range vs. Dest Paid Media % 53% 47% 2021 A Budget (includes already approved budget) Front Range Destination 44% 56% 2021 B Budget (includes already approved budget) Front Range Destination 62% 38% 2020 Front Range Destination 42% 58% 2019 Front Range Destination Destination Front Range 68% 32% 2021 A Budget (includes already approved budget) Digital Traditional 61% 39% 2021 B Budget (includes already approved budget) Digital Traditional 75% 25% 2020 Digital Traditional 54% 46% 2019 Digital Traditional Digital vs. Traditional Paid Media % Traditional Digital 5. Vail Branding –Positioning, Creative, Assets, Execution Belief + Behavior Design Process •Competitive audit •Primary and secondary research review and analysis •Travel / cultural trend analysis •Brand strategy workshops •Map development and presentation with the concise Vail “sharp idea” •Meetings/Workshops with board and partners 2022 Branding Production Budget: $305,000 Timing: March-August KPI/ROI: Long term, laying the groundwork for 2022 and beyond PLAN A •Enhanced tactical production and execution for 2022 roll out Budget: $380,000 Timing: March-August PLAN B (Inclusive of A) 6. Public Relations •Newswire •Influencer Trip Giveaways (2) & Data Collection •Test trip giveaway concept with one influencer in each target persona - families with older kids and young professionals to garner database info Budget: $12,500 Timing: May, Early Summer KPI’s: •Expanded media reach, summer opening announcement •No. of database entries PLAN A and PLAN B 7. Contingency Dollars •Market contingent efforts •Mexico, destination air/drive markets •Expand asset acquisition •Crisis budget •Opportunity funds Budget: $77,532 PLAN A •Market contingent •Mexico, destination air/drive markets •Expand asset acquisition •Crisis budget •Opportunity funds Budget: $56,532 PLAN B (Inclusive of A) VLMDAC 2021 Supplemental Breakout Current Budget Plan A A Total % Increase Plan B B Total % Increase Content Plan and Execution New Initiative $156,500 NA $156,500 NA Website Functionality Enhancements $10,000 $8,068 81%$8,068 81% Data Systems Investment $100,000 $136,400 136%$136,400 136% Increase Paid Media $717,165 $304,000 42%$720,000 100% Vail Branding –Positioning, Creative, Assets, Execution $74,000 $305,000 412%$380,000 514% Public Relations $50,000 $12,500 25%$12,500 25% Contingency $0 $77,532 NA $56,532 NA TOTAL Budget $2,184,024 $1,000,000 46%$1,470,000 67% New Budget $2,184,024 $3,654,024 VLMDAC 2021 Business Goals (May –October) May –October (Non-winter months) 2019 AND Pre COVID 2020 Goals 2019 Results 2020 Results 2021 Original Goal Δ From 2020 Actuals 2021 Plan A Goal Δ From 2020 Actuals 2021 Plan B Goal Δ From 2020 Actuals Sales Tax +4%+.89%-11%+3%+4%+6% Lodging Tax +5%-6%-11%+8%+9%+12% Overall Summer Occupancy 50.1% +3% 45% (down 6%) 31% (down 31%) +21%+22%+23% Group Occupancy +5%24% (up 9%) 4.3% (down 82%) No Group Goal No Group Goal No Group Goal Next Steps •Board Discussion & Vote on Supplemental Budget Level •Discussion of 2021 Goals •Next Board Meeting: Wednesday, March 17 •Supplemental Budget Level to be Presented to VLMD (Town Council) on Tuesday, April 6 (or Tuesday, March 16) Thank you! APPENDIX Strategic Approach The partners have collaborated to develop a strategic plan that will help us recover from the impacts of COVID and set us up for years to come. Continue to build out and use available data to drive efficient and more personalized content that leads to desired behavior Customization Amplify efforts to get the right audience into our data systems so we have 1st + 2nd party data available for future use Data Acquisition Use data to identify and prioritize seasonal content needs for use across channels including our website and social accounts Refined Content YOY Budget Comps 2019 2020 Original 2020 COVID 2021 Original 2021 Level A 2021 Level B Budget Change from 2019 NA -4%-29%-40%-12%+.5% Budget Change from 2020 COVID NA NA NA -15%+24%+42% 2021 Lodging Tax Goals 2019 Actual 2020 Actual 2021 Goal % from 2020 % from 2019 2021 Plan A % from 2020 2021 Plan B % from 2020 May 57,001 89,257 $ 80,000 -10%40%$ 80,000 -10%$ 80,000 -10% Jun 138,364 52,861 $ 90,000 70%-35%$ 90,000 70%$ 90,000 70% Jul 266,247 180,156 $ 200,000 11%-25%$ 210,000 17%$ 240,000 33% Aug 216,996 187,878 $ 200,000 6%-8%$ 200,000 6%$ 200,000 6% Sep 174,190 227,397 $ 230,000 1%32%$ 230,000 1%$ 230,000 1% Oct 78,702 89,973 $ 90,000 0%14%$ 90,000 0%$ 90,000 0% TOTAL 931,499 827,522 890,000 8%-4%900,000 9%930,000 12% 2021 Sales Tax Goals 2019 Actual 2020 Actual 2021 Goal % from 2020 % from 2019 2021 Plan A % from 2020 2021 Plan B % from 2020 May $ 763,756 $ 502,266 $ 600,000 19%-21%$ 650,000 29%$ 650,000 29% Jun $ 1,606,748 $ 1,032,848 $ 1,132,848 10%-29%$ 1,132,848 10%$ 1,132,848 10% Jul $ 2,480,292 $ 2,078,303 $ 2,100,000 1%-15%$ 2,100,000 1%$ 2,300,000 11% Aug $ 2,237,050 $ 2,134,944 $ 2,198,000 3%-2%$ 2,198,000 3%$ 2,199,000 3% Sep $ 1,600,100 $ 1,757,603 $ 1,757,603 0%10%$ 1,757,603 0%$ 1,757,603 0% Oct $ 1,165,176 $ 1,273,735 $ 1,273,735 0%9%$ 1,273,735 0%$ 1,273,735 0% TOTAL 9,853,122 8,779,699 9,062,186 3%-8%$ 9,112,186 4%$ 9,313,186 6% 2021 Occupancy Goals 2019 Actual 2020 Actual 2021 Goal % from 2020 % from 2019 2021 Plan A % from 2020 2021 Plan B % from 2020 May 20%4%12%200%-40%12%200%12%200% June 50%24%38%58%-24%40%67%45%88% July 65%46%58%26%-11%58%26%58%26% August 56%50%53%6%-5%53%6%53%6% September 46%41%44%7%-4%44%7%44%7% October 31%30%31%3%0%31%3%31%3% 45%33%39%21%-12%40%22%41%25%