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Home My WebLink About03. 2022 Operating Plan Council - Draft_9.10.21VLMDAC 2022 OPERATING PLAN SEPTEMBER 21, 2021 Agenda •2021 Revenue Update •2021 Accomplishments •2022 Campaign Preview •2022 Proposed Operating Plan & Budget Strategy Shift •Building the DiscoverVail website and database infrastructure allows us to adapt to changing conditions and create stronger 1:1 relationships with the "right" guest (out of state, spend more/stay longer/protective of this place) –Data (database,segmenting, personalization) –Systems (website, software, email, social) –Examples of adaptation: COVID public health crisis, EGE flights, etc. 2021 SUMMARY 2021 Successes •116,480 customer records, up 460% year to date •Significant website enhancements: –Landing pages by audience –Improved content: breadth and depth –Enhanced website functionality and searchability –Improved website visitation –Improved organic search •Data Roadmap: identification of gaps,integration and progress •New Brand Campaign and expanded image library •Events: Integration, Awareness, Attendance and improved NPS •Sustainable Practices Guest Education Campaign 2022 OPERATING PLAN & BUDGET UPDATES Town Council Action Plan •VLMD Continued alignment with on business and marketing to Town Council’s Vision and Mission https://www.vailgov.com/Portals/0/docs/Town%20Council/2018-2020-council-action-plan.pdf 2022 Business Goal Business Goal :Drive responsible revenue growth in Vail by focusing on quality of guest, length of stay, and guest spend, along with effective communication of community values. Measurement continues to be through occupancy and average daily rate, lodging and sales tax revenues, especially during lower demand time periods. 2022 Marketing Priorities Optimize Visitation: Maximize longer stays and higher spend Grow Database and Build the Relationships: Use Data to understand our guest to enhance engagement & loyalty Destination Stewardship:protecting and sustaining our natural assets and resources while elevating the guest and resident experience. Brand Positioning: Positioning Vail as the Premier International Mountain Resort Community and define, support and deliver on the brand in working with community partners. Optimize Visitation •Targeted Guest –Stays longer, spends more, embraces destination values –Target high-value guest who travels further, stays longer and spends more –Conduct new in-depth customer interviews to uncover guest experiences preferences –Continue meeting with lodges to understand the best guest –Increase support of data systems to better understand consumer journey and signals of intent •Targeted Times –focus on mid-week and shoulder seasons –Continue Group efforts to fill in off peak times –Reduction in Front Range media support with focus on driving off peak visitation –Collaborate with Commission on Special Events to optimize event calendar Grow Database & Build Relationships •Grow our Database –Create stronger event partnerships/sponsorships –Enhance collaboration with lodging, restaurant, retail, TOV (parking) •Use Data to Understand our Guest –Optimize efforts based on message and tactic testing –Increase focus on content and 1:1 personalization (web, email, social) – –Loyalty program •Enhance Personalization –Initiate in-resort guest experience enhancements –Focused media •Reduction in overall media with focused guest targeting •Focus on lower demand time periods Destination Stewardship •Welcome Center Programming •Ongoing Sustainability Practices Campaign •Dedicated funding towards Destination Stewardship Plan Brand Positioning •New brand campaign •Community generated asset program •In-resort dream experience •Dream Trips BRAND POSITIONING AND NEW CAMPAIGN THE CHALLENGE Reinvigorate the Vail brand through a campaign designed to provoke consumers to feel excited about and intrigued to visit Vail. To do that, we need to start treating Vail like the badge brand that our guests see it as. We have to act boldly and create both experiences and advertising that people want to talk about. When you’re in Vail, the confines of reality are but a suggestion. The air feels fresher. Life feels lighter. And spirits are lifted to a new high. There is som ething m agical happening in this valley. You feel as if you’re the main character in a story. Just take a walk through the village down to the creek, and you’ll understand. It may seem surreal, but trust us: it’s just Vail. There’s no denying that there is something special about this place, as if it exists specifically as a rem inder to enjoy life. The best way to put it is when you’re here it feels like... CAMPAIGN PLATFORM HOW THIS COMES TO LIFE The Life is But a Dream campaign will extend across all advertising channels/tactics, including our TV, digital, web presence and in-market. As such, in FY21, we produced TV, ambient video and still campaign assets to launch as the next iteration of the Vail brand. We took a tiered approach to capturing and concepting campaign assets. CAMPAIGN TIER SUMMARY BUDGET DETAIL 2022 Proposed Budget 2022 Revenue Projection $ Annual Marketing Budget $ Contingency-Destination Stewardship Plan $ Contingency-Other $ Initiatives Using Reserves $ Total VLMD Budget for 2022 $ Use of Fund Balance $ The proposed budget will use $374,000 of fund balance. The 2022 projected ending fund balance is $1,201,786, 32% of annual revenues. Revenue Projection: + 3% from 2019 3,825,000 3,595,240 100,000 130,760 374,000 4,200,000 374,000 2022 Proposed Budget Expenditure Increase: + 7.6% from 2021 + 15.6% from 2019 9%Web/CRM/Social 1 %Public Relations 6 %Groups 1 %International 5 %FR Overnight 20% Destination Drive Visitation 37% Drive Visitation Overnight & Out-of- State Visitation 49% Strategy/Branding Research Photo/Video Fees 14% Database 27%Trad 73% Digital Media Type Full Budget 2022 Budget Breakout -$4,200,000 45%Trad 55% Digital Media Type 37% Drive Visitation Overnight & Out-of-State Visitation 49% Strategy/Branding Research Photo/Video Fees 14% Database71% Drive Visitation Overnight & Out-of-State Visitation 22% Strategy/Branding Research Photo/Video Fees 7% Database 4%Web/CRM/Social2%Public Relations 17 %Groups 4 %International 8 %FR Overnight 35% Destination Drive Visitation Full Budget 9%Web/CRM/Social 1 %Public Relations 6 %Groups 1 %International 5 %FR Overnight 20% Destination Drive Visitation 27%Trad 73% Digital Media Type Full Budget Budget Comparison 2019 vs. 2022 2019: $3,574,714 2022 Budget: $4,200,000 Thank You and Questions Action Requested of Council:Approval of the 2022 VLMD Operating Plan of $4,200,000 THANK YOU APPENDIX Loyalty Program •Program Goal: –The goal of a Customer Loyalty program is to increase engagement and retention, and eventually drive advocacy. –For the Town of Vail, the goal of a Customer Loyalty program is also to build a direct relationship with visitors that supplements their individual relationships with town partners. •Definition / Techniques / Approach / Description: –Use 2022 to develop and test potential loyalty program components (incentives) to understand what best drives desired behavior. –Longer-term, these behaviors and incentives can be built into a structured program. Planning will focus first on driving sign up and visitation. •KPI –TBD as program is developed Dream Trips •Program Goals: –Build Relationship -Capture Data & Engagement/Loyalty –Brand Stewardship •Definition / Techniques / Approach / Description: –Develop three “Dream Trips” to Vail that illustrate one-of-a-kind, over-the-top vacation experiences. –Promote through integrated marketing efforts -social, electronic marketing efforts and PR. –Each trip also can be given away to drive data capture. •KPIs: –Ad clickthroughs + social engagement –Media coverage –No. of packages purchased