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Home My WebLink About04. JulyVLMDACPresentation-FINALVLMDAC BOARD MEETING JULY 21, 2021 Agenda •Monthly Financial Report -Town of Vail, Carlie Smith •Approval of June 16, 2021 Minutes, Board •2022 –Campaign Production Updates, Cactus –Asset Acquisition, Cactus & SITE –Strategic Planning Updates, Cactus •2021 –Digital Media & Website, Cactus –Database & CRM Updates, BAAG –Group Sales Update, Kim Brussow, Vail Valley Partnership –Town of Vail Updates –Mia Vlaar, Jeremy Gross, Town of Vail •Other Business *Requesting specific direction/approval from board MONTHLY FINANCIAL REPORT Lodging Tax Collections An adjusted revenue forecast of $3.3M adds $800K to the VLMD fund balance. The projected Fund Balance at the end of 2021 is $1.7M, 46% of annual “normal” revenues. Discuss with Board: consideration of a third 2021 supplemental based on revenue forecast. 2021 Third Supplemental Request Additional Fund Balance from adjusted forecast $800,000 Total 2021 Third Supplemental Request $250,000 Additional Asset Capture: $100,000 Destination Management Plan:$150,000 Reserve in Fund Balance for 2022 $550,000 2022 CAMPAIGN PRODUCTION UPDATES 2022 ASSET ACQUISITION Tier 2 Asset Acquisition Approach ⮚Team reviewed existing video/photo assets in “Life is But a Dream” lens ⮚Considered what we plan to acquire from brand shoot ⮚Developed all encompassing shot list for next 3 years ⮚Narrowed down to handful of key, quality shots for this summer ⮚Assets will extend brand in digital, social, web, print executions Tier 2 Asset Acquisition Shots Shot 1 -Woman on horseback on mountain/mountains in background, moments with the woman off the horse, petting it’s face, eyes down Shot 2 –Gondola (ideally at night) with girl in the family pressing her face up against the glass gazing out in wonderment. Shot 3 –Woman sitting in window or on a balcony of hotel with Bavarian architecture rooflines out the window at night. Tier 2 Asset Acquisition Priority Shots Shot 4 -Steam rising off of hot tub at night with a couple. Reference doesn’t show the partner, but gives a good idea of the mood and setting. Shot 5 –Woman fully submerged in pool, flipping the perspective. Tier 1 & Tier 2 Assets Next Steps •7/21 -Director Recommendation approval •7/21 -Approval of Supplemental Request by VLMDAC •7/22-mid August -Award and begin Pre-production ○Talent ○Stylist -wardrobe ○Scout/firm up locations •8/3 -Present Supplemental Request to VLMD on August 3 •Mid/late August-September -Schedule shoot for Tier 1 and Tier 2 •TBD -Post-production •TBD -Editing 2022 STRATEGIC PLANNING UPDATES 2022 Business Goals Business Goal: Drive business revenue growth in Vail as measured through lodging and sales tax, doing so through increased customer loyalty and driving visitation Proposed 2022 Marketing Goals Build the Relationship: ●Capture Data: Enable the building of a direct relationship with more visitors or prospects to Vail through growth in breadth (# of records) and depth (amount of information per record) of our owned customer database. ●Engagement & Loyalty: Enhance personalized comprehensive customer journey from dreaming through reminiscing to drive engagement, and ultimately foster and reward loyalty to Vail. Proposed 2022 Marketing Goals Brand Stewardship: Positioning Vail as the Premier International Mountain Resort Community and define, support and deliver on the brand in working with partners with the shared brand with Vail Resorts, businesses and lodging and community at large. Proposed 2022 Marketing Goals Optimize Visitation:Target the right customer to maximize longer stays and higher spend while distributing visitation to lower-demand (off peak) time periods and balance guest acquisition and return visitation. Proposed 2022 Marketing Goals Destination Management Leadership:Ensure tourism adds value to the Vail guest and resident community, while protecting and sustaining our natural assets and resources. Proposed 2022 Marketing Goals Partner Operations:Operate more efficiently and effectively with a long-term marketing personalization and customer analytics plan and vision that all VLMD partners are aligned with and accountable for. Analytics, to be used to continuously optimize and improve. Collaboration tools that drives insight and efficiency. Proposed 2022 Marketing Goals Build the Relationship: ●Capture Data: Enable the building of a direct relationship with more visitors or prospects to Vail through growth in breadth (# of records) and depth (amount of information per record) of our owned customer database. ●Engagement & Loyalty: Enhance personalized comprehensive customer journey from dreaming through reminiscing to drive engagement, and ultimately foster and reward loyalty to Vail. Brand Stewardship: Positioning Vail as the Premier International Mountain Resort Community and define, support and deliver on the brand in working with partners with the shared brand with Vail Resorts, businesses and lodging and community at large. Optimize Visitation:Target the right customer to maximize longer stays and higher spend while distributing visitation to lower-demand (off peak) time periods and balance guest acquisition and return visitation. Destination Management Leadership:Ensure tourism adds value to the Vail guest and resident community, while protecting and sustaining our natural assets and resources. Partner Operations:Operate more efficiently and effectively with a long-term marketing personalization and customer analytics plan and vision that all VLMD partners are aligned with and accountable for. Analytics, to be used to continuously optimize and improve. Collaboration tools that drives insight and efficiency. 2022 Planning Timeline •To Date: –Developed Marketing goals and identified potential partner KPIs–All partners submitted Start-Stop-Continue and discussed overall annual approach + budget•July 16 Partner Meeting: Review initial budget and tactics and determine what to cut / modify•August 5 Partner Meeting:Final deck and budget review•August 18 VLMDAC Board meeting: Present budget to board for review/approval•September 15 VLMDAC Board Meeting: Present tweaks to budget if needed based on previous board meeting•October 19 Town Council VLMD Meeting: Present budget to Town Council (VLMD) for review and approval 2021 DIGITAL MEDIA & WEBSITE UPDATES Return on Digital Ad Spend (RODAS) For every $1 we spend in digital paid media, we generate an estimated $22.94 in lodging revenue. This is down slightly from $28.85 last month as our media spend fluctuates and we account for trip planning windows impacting our annual booking data averages MoM. Adara Enhanced RODAS = displays full market visibility by leveraging the ADARA Co-op data, in addition to STR Census, STR Occupancy and OAG Flights data. In 2020, Adara RODAS was estimated using only ADARA Co-op data. Adara Enhanced $22.94 RODAS June Booking Trends HIGHLIGHTS: The June average trip planning window is ~48 days from search to arrival. Families made up 59% of all traveler itineraries in June and their average stay was 6.2 nights for ~$461 per night. June Booking Trends June Audience Trends HIGHLIGHTS: Our June Age Distribution was led by visitors age 45-54 at 30% of total bookings, closely followed by visitors age 35-44 at 28.9% of total bookings. The majority of visitors that converted from media in June have a household income between $100k-$149k. 19-24 25-34 35-44 45-54 55-64 65+ <$49k $50k-$99k $100k-$149k $150k-$199k $200k-$249k $250k+ 1.8% 17.4% 30%28.9% 18% 6.7% 4.4% 21.3% 48.3% 19.2% 6.6%0.1% Household Income Distribution Age Distribution Website High Level Performance HIGHLIGHTS: Bounce rate is decreasing. Continuing to increase in average time on site. We are up 7% from last month. Pages per session has slightly decreased, but nothing to be concerned about. We will continue to monitor. We saw a spike in traffic to the site on 6/19 which we attribute to printed collateral that was distributed for the lacrosse games which included a mention of discovervail.com. SEO High Level PerformanceDomain Overview Keyword Overview HIGHLIGHTS: We are showing May 1-June 30 to show improvement over time. Domain Overview shows that the domain authority has improved to 31 which increases our estimated visibility and share of voice. Keyword Overview shows that we are making improvements to keyword ranking and moving up to the top 3 spots for 9 keywords. Nice work content team! Itinerary Landing Pages vs Homepage Dynamic Family Active Professional Super Boomer :58 Homepage 1:00 1:38 1:27 HIGHLIGHTS: This shows the comparison for the average time on site across the three itinerary landing pages and the homepage to gauge customer engagement over the quarter (April-June). Keep in mind that the Family and Boomer pages only went live mid June (this data does include the old layouts). This shows us that users who are directed to more personalized and tailored content will engage more. Itinerary Landing Pages Behavior 1:38 1:27 HIGHLIGHTS: In viewing recordings from user sessions, we can see how each audience consumes the information differently. The Active Professional is reviewing every itinerary type, and the Dynamic Family is selecting a specific itinerary and articles. Hotel Booking Trends HIGHLIGHTS: June arrival data in Desimterics directly correlates to June booking data in Adara. The Colorado (Front Range) is the highest saturated market for both arrivals and trips booked. Visitors from Northeast locations account for 7.1% of total June bookings in Adara. With Northeast locations also attributing to 14.3% of alternate booked hotel destinations after visiting the Discovervail.com site, we can infer that northeast DMAs could be a strong audience to test targeting in paid media. Desimetrics | June Arrivals Adara | June Bookings 2021 DATABASE & CRM UPDATES Understanding Current Data Capture, Quality and Engagement Growth of Email Database •Almost 600% growth in users since September 2020–Steady growth in WiFi capture and newsletter signups–Import of historical MailChimp and VailApp data Roadmap Project Start 62k Records in Aislelabs 108k Records Available to Email Email Database Quality Improvements Customer Data Deliverability (as of 07/13/2021) Customer Data Deliverability (as of 07/13/2021) Email Campaign Engagement (04/13/2021 -07/13-2021) Customer Data Funnel (as of 07/13/2021) GROUP SALES UPDATES YOY Comparison Mid-Year Results 2019 2020 2021 Total Lead Generation 114 96 132 New Lead Generation 110 89 118 Cvent Leads to VVP 67 47 79 Contracted in the Year 25 10 25 Lost Leads 86 104 83 Companies Added to Database 194 90 68 Planners Added to Database 410 148 82 Groups on the Books for 2021 Geographical % of Geographical Vertical % of Vertical Colorado 40%Association 26% Northeast 15%Corporate 19% Southeast 4%Incentive 7% Midwest 15%Medical 26% West 26%SMERF 22% Groups on the Books for 2022 & Beyond Geographical % of Geographical Vertical % of Vertical Colorado 58%Association 42% Northeast 5%Corporate 16% Southeast 5%Incentive 5% Midwest 16%Medical 32% West 16%SMERF 5% Leads in the Pipeline as 6/30/21 Geographical % of Geographical Vertical % of Vertical Colorado 25%Association 20% Northeast 7%Corporate 41% Southeast 12%Incentive 17% Midwest 20%Medical 15% West 34%SMERF 7% International 2% Mid-Year Cvent Results Leads Sourced thru VVP 2019 2020 2021 (Jan-Jun) Total RFPs 158 69 79 Total Room Nights 50,106 16,134 21,004 Total Value of RFP’s $19,423,425 $6,698,846 $6,931,233 Average Room Nights per RFP 317 234 266 Average Value per RFP $122,933 $97,085 $87,737 Mid-Year Cvent Results Leads Sourced to All Vail Properties 2019 (Jan-Dec)2020 (Jan-Dec)2021 (Jan-Jun) Total RFPs 659 287 315 Total Room Nights 16,634 74,048 71,736 Contracted RFPs 98 45 29 Contracted Room Nights 13,814 4,780 2,960 Contracted Value $5,300,719 $1,650,591 $1,305,067 Trends ●Smaller groups (67% of pipeline under 50 on peak, 33% over 100 on peak with only one for 2021 & remainder for 2022 & beyond) ●Travel in general is coming back faster than expected ●One-third of the U.S. hospitality workers will not return to the industry ●Virtual format expands reach for additional attendance but not sustainable -won’t replace in-person meetings/events ●Hotel rates, gas, airfare and car rental pricing continue to escalate ●Compression from rebooked group programs is strongly impacting availability and driving higher rates for our lodging partners ●Historically groups had a much larger booking window and tended look more long term, estimating a booking window 6 months to 2 years out ●Just as 9/11 changed travel, the pandemic will leave travelers more aware of health measures TOWN OF VAIL UPDATES Thank you! Upcoming Meetings: VLMDAC Monthly Meeting, August 18, 2021; Grand View Room/Virtual Via Zoom APPENDIX Paid Media % of Spend in June 6% June Impressions 7.3M June Clicks 36.5K Total spend to date for 2021 is $400K (29%) Overall clicks decreased MoM due to a decrease in media spend but CTR increased across all paid media channels