HomeMy WebLinkAbout06. 1st Budget Supplemental Request PresentationMAY 3, 2022
VAIL LOCAL MARKETING DISTRICT MEETING
Agenda
•Budget Overview Future Considerations
•Strategy and Goals
•Supplemental Tactical Plan & Request
•Request for approval of Supplemental Plan and Budget
BUDGET OVERVIEW & SUPPLEMENTAL REQUEST
First Supplemental Request
Revenues $4.4M
●Total Amended Lodging Tax Revenue of $4.4M; $610K Increase
●Forecast YTD (through March) with remainder of year flat with 2021
Expenditures $4.8M
●Total Amended Budget of $4.8M; $620K increase
Fund Balance $2.3M
●Estimated fund balance at the end of 2022 is $2.3M; 52% of annual
revenues
Fund Balance Distribution Planning
Potential use of the fund balance over a 3-5 year time frame could include funding to
support:
●Vail summer signature events
●Tactical implementation of the Steward Vail, Destination Stewardship Plan
●EGE air alliance contribution toward flight guarantees
●Additional research: on-site visitor behavior ie: trail visitation
Future Considerations for Fund Balance
2022 BUDGET SHIFTS
Contingency Use
Contingency funds in existing budget have been utilized for:
•Destination Stewardship Research: SMARI Visitor Research study to gather
data to inform strategy on value-based marketing.
•Travel Classics Host: In the fall of 2022, the VLMD will sponsor and host the
premier travel media conference in the world, connecting top freelance travel
writers and editors in North America.
•PR Social Influencer Tool: Allow VLMD ability to effectively select and monitor
influencers.
Budget shifts: -$98,000
Paid Media: Shift to Destination Visitors
Reduced Front Range media by 62% YOY, by reducing overall paid media budget by 22% and shifting
to destination
Budget shifts: Moved 18% of budget from Front Range to Destination
KPI’s: Awareness: Impressions Consideration: clicks to website, video completion rate, etc.Engagement:
time on site, pages viewed, etc.
STRATEGY:
DATA DRIVEN MARKETING OPTIMIZES VISITATION
2022 Goals
Maximize longer
stays and higher
spend, gain greater
understanding of
customer through
research.
Optimize
Visitation
Use Data to
understand our
guest to enhance
engagement &
loyalty.
Grow Database +
Build
Relationship
Protecting and
sustaining our
natural environment
and attractions
while elevating the
guest and resident
experience.
Destination
Stewardship
Position Vail as the
Premier
International
Mountain Resort
Community and
work with
community partners
to define, support
and deliver on the
brand.
Brand
Positioning
Drive responsible revenue growth in Vail by focusing on quality of guest, length of stay and guest
spend, while effectively communicating community values. Key Performance Indicators (KPIs)
include lodging occupancy and average daily rate and lodging and sales tax revenues with a focus
on mid week and lower demand time periods.
Business Goal
Data-Driven Marketing Helps Optimize Visitation
IN-RESORT:
Focus on driving more
signups in-resort.
Data-Driven Marketing Helps Optimize Visitation
INCREASE QUALIFIED WEBSITE TRAFFIC:
-Improve web search terms
-Media placement is informed by customer data
-Engaging visuals and unique storytelling content
APPEND 3RD PARTY DATA
Use current customer records and
purchase additional information on
those customers to better inform our
marketing and messaging
Data-Driven Marketing Helps Optimize Visitation
TACTICAL PLAN & SUPPLEMENTAL REQUEST
Data Systems - Growth Since Strategy Shift
Customer Data Today
No demographic data for
95% of records
Future Customer Data
Growth in depth with
robust insights on each record
Sample Profile Today:
●suzie@gmail.com
●Zip: 60657
Sample Profile Future:
●suzie@gmail.com (Susan Smith)
●Zip: 60657 (2900 N. Burling, 3N)
●45-year old married mother of 2
●Income = $350k, NW = $2.5M
●Enjoys beach and ski vacations
●Hobbies are cooking and
gardening
●Reads Wine Aficionado
2022 Goal = 150,000
Data Acquisition and Data-Driven Media
Investment in appended data primarily to existing customers in our database to
enable personalization and better drive conversion.
•3rd Party Data Append
•Data-Driven Media/Measurement Pilot
•Email Acquisition
•In-resort Data-Capture
Budget: $191,500
Business Goal Pillar: Optimize Visitation, Grow Database + Build Relationship &
Destination Stewardship
Key Performance Indicator (KPI): Number of appended records, engagement and
conversion resulting from more personalized informed targeting and communications
Content to Enable Data-Driven Marketing
Enhance Infrastructure
•Web search term optimization
•Content Management System and training
•Updated email templates
Improve Ongoing Content and Communications
•Web search terms to own our space completely
•Content creation including frequent long-form blog creation
•Triple the amount of outgoing emails
•Improve website and user experience management
•Enhanced reporting, and better analytics to manage growth and scale
Budget: $149,350
Business Goal Pillar: Optimize Visitation, Grow Database + Build Relationship &
Destination Stewardship
KPI:
○Improved site metrics (data capture, time on site, pages visited, etc.)
○Top position search results in organic search for identified keywords
Photo/Video Management
Invest in Photo/Video Asset Management Tool, Intelligence Bank, that VLMD controls
with strong sorting system, and easy to manage permissions for
vendors/media/partners. Space to allow for Town of Vail asset sharing as well.
Budget: $18,475
Business Goal Pillar: Brand Positioning
KPI: By providing easier access to content to lodging/merchants/community and
partners, creative campaign and messaging will be extended and strengthened.
Research and Data: Mexico
•In-Market Research
○Understand competition within US mountain resorts,
○Understand where high-end Mexican travelers are going in the U.S., and
what they are looking for in their travel experiences.
○Gauge familiarity with Vail and the level of existing knowledge about the
destination.
•Santander Credit Card Promotion - Partner with Santander, the largest credit
card company in Mexico, for a mid-week fall promotion.
Budget: $19,000
Business Goal Pillar: Optimize Visitation & Destination Stewardship
KPI: Total completed surveys with recommendations for future targeting and
marketing. Reach and total impressions of media buy, number of packages purchased
Social and Fall Media: Mexico
•Social Campaign - Use social media to gauge Mexico visitation in market to
capture data and better target future marketing.
•Fall Media Buy w/Retail Offer - Develop fall retail offer that’s promoted via media
buy to drive September/October business.
Budget: $25,000
Business Goal Pillar: Optimize Visitation, Grow Database + Build Relationship
KPI: Newsletter reach, social sharing and database growth, packages purchased
Influencer Co-Op
Develop a co-op program to offset influencer hosting expenses at hotels. Expenses can
include dining, activities, spa treatment and/or lodging costs. In return, influencers
would be contracted to include DiscoverVail handles and hashtags in posts.
Budget: $20,000
Business Goal Pillar: Brand Positioning
KPI’s: Property participation and social engagement/growth
2021 Reappropriations
Reappropriation for items budgeted in 2021 that were not fully completed rolled
forward to 2022.
●Giveaway items with delayed shipping
●Video and digital production for Dream campaign that wasn’t completed until
January 2022
●Reporting tool subscription renewal in 2021 but is mostly for 2022
Budget: $35,639
Contingency
Replenish contingency for support as needed with
•Crisis budget: natural disasters, public health challenges, etc.
•Opportunity funds
Budget: $200,000
Vail Local Marketing District Advisory Council recommends that the Vail
Local Marketing District approve the 2022 Supplemental Plan and
budget request of $655,964.
Action Requested
THANK YOU