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VLMDAC June Meeting PresentationVLMDAC BOARD MEETING JUNE 16, 2022 Agenda VLMDAC EXECUTIVE SESSION Adjournment to VLMDAC Executive Session - VLMDAC Executive Session, pursuant to: 1) C.R.S. §24-6-402(4) (e) - to determine positions, develop supplemental strategy and instruct negotiators (60 minutes) INFORMATION & DISCUSSION UPDATE •Monthly Financial Report, Carlie Smith, Town of Vail BOARD DECISIONS/APPROVALS •Recommendation to Town Council on the definition of uses for VLMD Tax Revenues, Mia Vlaar, Town of Vail and Board •Vendor Services to put out to bid, Board Chair and Board •Contingency use for 2021 Invoice Payment, Liz Gladitsch, Town of Vail INFORMATION & DISCUSSION UPDATES •Creative & Video Updates, Cactus, SITE, Steep •Summer Asset Acquisition Approach, Cactus •Dashboard, Cactus/BAAG •Research Update, Cactus •2022 Sustainability Image Research, Denise Miller, SMARI Insights •Media Report, Cactus •PR/Influencer Update, MYPR •Groups Quarterly Update, Kim Brussow, Vail Valley Partnership •Summer Marketing Toolkit, Liz Gladitsch, Town of Vail •Town of Vail Updates, Mia Vlaar, Town of Vail •Other Business MINUTES •VLMDAC May 18 Minute Approval •Action Requested of Council MONTHLY FINANCIAL REPORT VLMD TAX REVENUES USE RECOMMENDATIONS VLMD Tax Revenue Use Recommendations Vail Town Council reviewed and discussed the VLMD and House Bill 1117 memo on June 7. The Vail Local Marketing District Advisory Council will return to town council in July for a joint meeting to discuss its recommendation for additional uses of the local marketing district tax revenues. For Discussion ●Maintain current use of funds. ●Reallocate surplus funds to free up dollars in the general fund. ●Use of surplus is a one time proposal for 2023 ●Fund Balance discussion *See packet materials for historic actuals VENDOR SERVICES TO PUT OUT TO BID Vendor Services to Put Out to Bid •Board is planning to publish RFP(s) for VLMD vendor services. •RFP(s) will be published in rotation over the next several years. •Board discussion and decision for which vendor services to put out to bid for 2023 contracts. CONTINGENCY USE FOR 2021 INVOICE PAYMENT Contingency Use for 2021 Invoice Payment ●Lodging Liaison invoices were not processed due to late submission and missed email, missing final closing of books for 2021. ●Invoices amount to $24,000. ○Option 1: use $24,000 of contingency, bringing contingency from $232,760 to 208,760 ○Option 2: Request $24,000 in next supplemental at TBD date CREATIVE & VIDEO UPDATES New Assets Steep x SITE DiscoverVail and Organic Social Media videos: •Scenic •Timelapse •Hiking •Mountain Biking •Fine Dining •Culture •Live Music Longer Content Pieces: •Dining: From the Source, Chef Rosa feature New Assets Steep x Cactus Cactus to share link with live assets during meeting* Upcoming Production ●Capture new hero assets to continue running in campaign materials ○Purchase x3 stock images of floating women (~$3k) ○Will shoot x2 Vail specific plates to use as background ●Scenarios to include fall, on mountain, and town ●Additional dollars in budget will be allocated towards activity/lifestyle-focused asset capture DASHBOARD UPDATE Dashboard Update *Content is FPO and a video of the functioning dashboard will be shared during the board meeting RESEARCH UPDATE Insights Initiatives SMARI RRC CACTUS MEDIA MEASUREMENT CACTUS CONSUMER QUALITATIVE Awareness, Consideration and DSP Yearly web survey intercept Partnering with Ardara to measure lower funnel performance Mobile Video Ethnography & IDIs Summer Qualitative Research RELATIONSHIP TO OTHER STUDIES Adding context to tell the human story behind the data. •Other studies use large sample sets to provide quantitative understanding of our guests and their experiences, where as this approach provides a much deeper look into their end-to-end Vail summer experience from decision making to experience to post-travel reflections. •Research approach allows for rich voice-of-the consumer video diaries in an asynchronous manner that allows for intimate reflection as the actual vacation journey unfolds as well as an in-person component to delve into the themes uncovered in the diaries. •Helps us see the the Vail experience through the eyes of our visitors and their unique expectations (family, couples, etc.) Summer Qualitative Research OBJECTIVE Better understand why our best guests are coming to Vail in the summer, what their travel decision making cycle was, what their experience is like in market, and how we can use that to better inform not only our creative and comms, but also destination development efforts AREAS OF INQUIRY 1.Understand the nuances of planning – how and why our best guests chose to visit Vail in the summer, what their travel party looks like, other destinations they considered, what they are excited about, familiarity with marketing, and how the booked 2.Understand the nuances of the Vail Summer experience – identify the most memorable experiences in their vacation, from the more epic adventures to the small moment, discover areas of friction during their experience 3.Understand the nuances of post-trip attitudes – if and why they would return and recommend a summer vacation in Vail, how their Vail experience did or didn’t live up to their expectations, timeline and process for planning their next trip Summer Qualitative Research METHODOLOGY •N = ~10-15 families •Field: late-June to late-July 2022 Mobile Video Ethnography •Process: 4 video diary entries – 1 pre-trip, 2 mid-trip, 1 post-trip; capture 5-10 photos with captions mid-trip of vacation milestones •Platform: Recollective In-Depth Interviews •Process: Follow-up interviews with participants to explore themes identified in the mobile video ethnography. •Platform: Google Meet Summer Qualitative Research RECRUITMENT We will work closely with VLMD lodging partners to get in front of the right families at the right time. This process will involve working with partners to identify and recruit families who are scheduled to visit Vail while our research is in field. •Sample: We will anticipate qualifying 2-4 respondents per lodging partner. •Outreach: Cactus will craft templated email communications that partners can then send to qualifying potential participants inviting them to our study. No further communication/coordination is required from lodging partners. •Insights: In appreciation for their partnership, lodging participants will receive a personalized insight report specific to their property experience as an output of this research initiative. •Incentive: To encourage participation, the respondents will be incentivized by a reward for participation. Ideally, this would be tied to their experience, for instance a spa treatment or restaurant voucher, but could also be neutral gift, Visa gift card or cash. Subsidized by research, not lodging partners. Summer Qualitative Research DELIVERABLES •Research report with video, photo journals, identifying key themes and insights, as well as actionable implications. •3-5 Lodging partner reports with data and insights specific to the participants who stayed at their property. ACTIVATION OF INSIGHTS •Refine / Evolve the Life if But a Dream positioning / platform messaging •Highlight top experiences from our guests in content, marketing, etc. •Directly address areas of friction in Vail summer experience •Refine media and communications plan to better align with travel decision making cycle 2022 SUSTAINABILITY IMAGE RESEARCH Background & Methodology SMARInsights designed this Sustainability Image research study in collaboration with the Town of Vail to provide valuable information in development of the Stewardship Plan. This research was done within a framework of the competitive environment that is unique to this destination. The research was designed to assess the overall image of Vail from the perspective of recent and potential visitors in order to identify key attitudes and perceptions of the destination, including its strengths and weaknesses. Our research in this area focuses on how a destination is positioned in the context of consumer perceptions vis-à-vis those of key competitors. •Data was gathered via an online survey designed by SMARInsights and the Town of Vail. •The surveys were conducted from April 29th to May 5th, 2022. •National sample providers with demographically representative respondents were used so that the research results can be projected to the population. •Respondents were qualified as adult leisure traveler decision-makers with household income of at least $75,000. •A total of 1,204 surveys were completed in the U.S. Competitive Image ●Consumers rated the various destinations under consideration in terms of overall appeal. One of the biggest challenges for Vail is competition. ●The results show that there is not much variation – Hawaii is slightly higher than the other destinations, but the narrow range of ratings indicates that there is a great deal of parity. ●Even when ratings for Vail are considered by trip type, there is not much variation. Vail gets a stronger rating as a place for a winter mountain trip versus a luxury resort trip – but the ratings are fairly similar across the various options. ●In exploring this situation, it will be important to identify ways for Vail to differentiate from the competition. SMARInsights Competitive Situation Insights ●Key challenges for Vail are the diversity of its image and the competitive situation. Because Vail offers a variety of types of experiences, it is harder to create a cohesive image. ●People are interested in visiting Vail for different types of trips, but that actually increases the competitive pressure. The strongest top-of-mind mentions for Vail relate to winter mountain/outdoor adventure trips and luxury resort experiences. ●The weakest associations are for summer trips. ●But across trip-types there are other destinations that have both stronger top-of-mind image and where consumers are more likely to visit. ●The competitive set varies by trip type – although Tahoe (Lake Tahoe) is a strong competitor across the various trip types and has established both strong top-of-mind presence, as well as high levels of likelihood to visit. SMARInsights Vail – Overall Image ●The positive finding is that Vail’s rating are all in “good” range – except for “is a good value for the money.” ●The strongest ratings are for outdoor winter activities, scenery, luxurious resorts, being upscale and offering lots of outdoor activities. ●But, as shown with the competitive indices, other destinations have a lot to offer also. ●Generally, the indices indicate that there is a great deal of parity in terms of image. ●The areas of comparative strength for Vail include outdoor winter activities, luxurious resorts and being an upscale destination. SMARInsights Mean rating on a 5-point scale Vail Index to Competition Offers outdoor winter activities like skiing, snowboarding, snowshoeing, etc.4.52 109 Has amazing scenery 4.45 100 Has luxurious resorts 4.37 103 Is an upscale destination 4.34 104 Offers lots of outdoor activities like hiking, biking, etc.4.32 100 Has quality food and wine/dining experiences 4.27 102 Is fun 4.25 100 Is safe 4.24 102 Has unique local restaurants/food 4.12 100 Has high quality attractions 4.11 100 Is a place with lots to see and do 4.09 98 Offers outdoor adventure activities like ziplining, kayaking etc.4.06 98 Is a welcoming and friendly place 4.05 98 Has appealing events 4.02 99 Is a good place for families 4.00 98 Is doing a good job protecting its natural resources 3.99 98 Is welcoming to all people 3.96 98 Has small-town charm 3.91 101 Is a unique vacation experience you can’t get at other places 3.88 97 Is an inclusive place 3.84 97 Has a unique history 3.81 95 Has a variety of hotels/price points 3.77 96 Has interesting cultural experiences 3.76 95 Is a good value for the money 3.46 94 The Competitive Landscape SMARInsights Aspen & Vail Tahoe, Park City, Whistler, Telluride, Jackson Hole Yellowstone, Zion, Yosemite, Costa Rica Hawaii •Outdoor Winter Activities •Upscale •Luxurious resorts •Good value for the money •Small town charm •Is a good place for families •Interesting cultural experiences •Unique experiences •Good for families •Good value for the money •Interesting cultural experiences •Unique history •Luxurious resort Travel Motivators Overall ●A key question for this process is to understand the importance of sustainability when consumers are choosing a destination – as well as what sustainability means to consumers. ●To begin to address this issue, consumers were asked to indicate the motivational appeal of a number of factors. ●Only 23% said that a destination’s commitment to sustainability was not motivating – but only 32% said it was “very much motivating.” There are many other factors that are more motivating. SMARInsights Sustainability Motivation - Visitors ●While many travelers indicate that a destination’s efforts in sustainability are not motivating – that is not the case among recent visitors to Vail (2020-22). ●Among this group, 61% indicate that sustainability is very much motivating, with another 34% indicating it is somewhat motivating – and only 5% responding “not at all.” ●Clearly, this is an issue that is important to current Vail visitors. SMARInsights Destination Sustainability Image ●The rating for doing a good job of protecting its natural resources indicates that Vail is below the average of the destinations rated. ●In fact, while the rating itself (3.99) is fairly strong compared to destination ratings benchmarks, other destinations get much higher ratings as shown in the indices on the prior slides. ●The only destinations to get lower ratings for protecting natural resources were Costa Rica and Aspen. SMARInsights Traveler Segments ●Vail has more “sustainable travelers” – almost 3 times the average ●Vail also has more “carefree travelers” – people who are less concerned with their impact on the destination ●A key challenge will be addressing issues of sustainability and issues of behavior in the destination SMARInsights Sustainability Programs - Visitors 36SMARInsights Program Overall Recent Visitors Difference Availability of locally sourced food and beverages 59%75%16% Refilling stations for reusable water bottles 47%72%25% Destination has a plan to manage its natural and built environment for future generations 50%72%22% High percentage of destination's power source is renewable energy 38%68%30% Walkable, bikeable destination 58%68%10% Support businesses that participate in local sustainability efforts 48%67%19% Availability of recycling 53%67%14% Easy access to electric vehicle charging ports 33%66%33% Ways to reduce carbon footprint through conservation of heating/lighting and other energy uses 42%64%22% Wildlife protection programs, such as seasonal trail closures 52%64%12% Availability of electric vehicle rentals 29%62%33% Destination has a Climate Action Plan 36%61%25% Reusable shopping bag program (disposable plastic bag ban)41%60%19% Destination has received Sustainable Destination Certification recognized by Global Sustainable Tourism Council 31%57%26% Destination has been Top 100 Sustainable Destination designation 31%57%26% Electric buses for visitor use 32%57%25% Opportunity to participate in adopt-a trail programs such as trail cleanup or building opportunities 32%55%23% E-bike share program 24%47%23% Vail & Sustainability ●A positive finding is that the rating for how Vail is doing at protecting its natural resources is increasing over time. ●Looking at people based on past visitation and when it occurred, there is a clear upward trend in the rating for protecting natural resources. ●This suggests that visitors are noticing what Vail is doing, and that this is being reflected in the image of the destination. SMARInsights Motivating Visitation SMARInsights ●Among sustainable travelers is a different set of messages that are linked to increased interest in visiting – although there is significant overlap. Protecting natural resources is important to this segment – although being inclusive and welcoming are stronger motivators: ○Is an inclusive place ○Is a good place for families ○Is welcoming to all people ○Has high quality attractions ○Has appealing events ○Is a unique vacation experience you can’t get in other places ○Is doing a good job protecting its natural resources ●By promoting the image of a charming, upscale destination that is also welcoming and inclusive – and focused on sustainability, Vail has the opportunity to improve its competitive position, while still maintaining differentiation from key competitors. Recommended Next Steps ●Complete the Community Input sessions and assess community input and its impact on marketing/targeting ●Review recommended messaging/targeting strategy and identify benefits and challenges to pursuing this strategy ●Assess current marketing and how well it communicates key messages identified in this research ●Develop recommendations on refinements to marketing efforts and materials based on this research, and community input SMARInsights MEDIA REPORT Recap: YOY Media Strategy Changes ●Emphasize high impact tactics that allow for strong visual storytelling (e.g. social stories) ●Shift measurement to focus on top funnel KPIs, specifically clicks & cost-per-click ●Increase % of media spend allocated to Destination; decrease % allocated to Front Range ●Expand Destination markets from core, historical DMAs (i.e. Chicago, Houston, & Dallas) to include additional DMAs that skew High Net Worth (i.e. NYC, San Fran, Boston, Seattle, & Washington D.C.) ●Consolidate audiences from Boomers, Families, & Active Professionals to Families and Empty Nesters ●Refine Paid Search strategy, focusing on non-brand vacation terms instead of high-cost lodging keywords, and consolidate campaigns to national vs region-specific for efficiency Paid Media Summary (4/1-5/31) Net Digital Spend Impressions Clicks Cost-Per-Click $155K 9.3M 114K $1.37 -23% YOY -13% YOY +66% YOY -48% YOY While budget has decreased YOY, shifts in our strategic approach have yielded a large increase in clicks, driven primarily by paid search & social 28% of Total Budget Spent (Digital & Traditional) $1,010,000 Budget Impact of YOY Destination Changes Core = Chicago, Houston & Dallas New = NYC, SF, Boston, Washington D.C., Seattle FY22 Spend by Market Destination Cost-Per-Click YOY (Display, Video, Social) -23% YOY Expanding to additional destination markets increased our audience size YOY. New markets have seen a $2.13 CPC; 15% lower than Core Markets and 32% lower than YOY Destination Channel Breakdown Clicks by Channel Cost-Per-Click YOY Click-Through-Rate YOY ●CPC has decreased YOY across display, SEM & social ●SEM benefited from consolidating to national campaigns and by shifting focus away from competitive lodging terms which saw CPCs from $4.50 to $5.50 in 2021 ●2022 creative has resonated strongly with guests, as CTR has increased by 2x across display and social Creative Top Performers (Family) Display Social - Newsfeed Social - Stories All creative exceeded YOY click-through-rates “Giveaway” creative performed strongest in display (0.34% CTR vs 0.09% benchmark) “Embrace” carousels performed strongest in paid social newsfeed, while “Embrace” cinemagraphs performed strongest in Stories Creative Top Performers (Empty Nester) Display Social - Newsfeed Social - Stories All creative exceeded YOY click-through-rates “Hot Tub” creative performed strongest in display (0.35% CTR vs 0.09% benchmark) “Embrace” video resonated strongest in paid social newsfeed, while the “Embrace” cinemagraph was still the strongest performer in Stories What’s Coming Up? ●Mid-Week creative launched on 5/31! ●Data-driven media test with Epsilon Core Transact data launching in late June ●Private deals with Trip Advisor and Adara recommended to launch in late June ●Air Marketing and EGE media launching in Late June/Early July PR/INFLUENCER UPDATE Public Relations Update KEY ACTION ITEMS/ACCOMPLISHMENTS •Annual Vail PR Partners Meeting •Development of 6 Dream Trips •Secured Travel Classics West Sept. 22-25, 2022 •Partner Outreach/Meetings MEDIA OUTREACH •What’s New Media Tipsheet •Dream Trips Press Release •Individual Pitching –Sustainability Messages –Outdoor Adventure –New Dining/Outdoor Dining –Events Public Relations Update VISITING JOURNALISTS PROGRAM •3-5 individual visits •4 pre/post TCW Trips TRAVEL CLASSICS WEST •44 freelance writers/waitlist •Travel Editors - AFAR, National Geographic Travel, Departures, Westways, Hemispheres, Shondaland, Monocle, Fodors, Saturday Evening Post, Sierra, Food & Wine, Virtuoso, Conde Nast Traveler, AARP, Travel & Leisure, Garden & Gun, Men’s Journal •Additional Editor Outreach - Robb Report, GQ, Harper’s Bazaar, TripSavvy, Vogue, BBC Travel •Needs & Observations Q1 Media Coverage Q1 Media Coverage ASPEN •Event information with details on several summer happenings including Aspen Music Festival and Theater Aspen. •Summer flight information for travel to the Aspen Airport. •Approval and enhancements at Buttermilk and Snowmass. BRECKENRIDGE •Stories on congestion in town. VAIL •Most coverage was of summer event announcements including Vail Craft Beer Classic, Bravo!, GoPro Mountain Games and Vail Dance. Dream Trips Coverage MEDIA COVERAGE •394 placements •195M audience reach •Upcoming Placements –Peak Magazine –Luxury Travel Magazine –HotelInteractive.com Sample Placements Sample Placements Sample Placements Sample Placements ●Vail Dance Festival ●Bravo! ●Vail Wine Classic Influencer Update MACRO INFLUENCER @goanniewhere •137K followers •11% engagement rate •HIGH authenticity score •Dream Trip: Four Seasons Dream Retreat w/Knapp Ranch •Cost: $3,000 MEGA INFLUENCER @jess.wandering •916K followers •2.76% engagement rate •HIGH authenticity score •Dream Trip: Sonnenalp Photography Adventure •Cost: $10,000 Influencer Update DELIVERABLES •Two influencers, one trip giveaway •One in-feed post to announce the Dream Trip giveaway •Minimum 5 total story slides w/campaign tags •One blog post promoting the trip giveaway w/in two weeks of visit •Option to purchase images - asset program OTHER •Influencer w/environmental focus/message •Hotel co-op program GROUPS QUARTERLY UPDATE Group Sales Pipeline •Increase in larger/villagewide leads •As of June 1, there were 110 leads in the active pipeline –46% for 2022 (primarily July, Aug, Sept) –43% for 2023 –12% for 2024 & beyond 2019 (Jan-May) 2020 (Jan-May) 2021 (Jan-May) 2022 (Jan-May) Total Leads Generated 99 81 104 191 Total Leads in Pipeline 45 31 52 110 Group Sales Trends •Travel demand remains strong •Planners are being more flexible with dates/pattern •Booking window still very short term - hesitancy to sign too far out •Rising travel costs and inflation (hotel rates, gas, airfare) are starting to impact group travel –Reduction in amount of meetings and shorter duration –Keeping closer to corporate headquarters or returning to same location/multi-year contracts •Labor shortages still impacting hospitality industry –Employees have gotten used to working remote/from home –Hours and pay aren’t attractive enough to return to frontline positions SUMMER MARKETING TOOLKIT Vail Summer Marketing/Business Toolkit DiscoverVail.com/BusinessToolkit TOWN OF VAIL UPDATES Thank you! Upcoming Meetings: VLMDAC Monthly Meeting, Thursday, July 21, 2022; Grand View Room