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Home My WebLink About01. VLMDAC 2023 Operating Plan, Draft 2VLMDAC 2023 OPERATING PLAN DRAFT 2: SEPTEMBER 6, 2022 Operating Plan Timeline & Discussion -9/2 Board to receive updated operating plan for review via email -9/6 VLMDAC Special Meeting: Board provide final feedback and change requests to plan -9/15 VLMDAC Monthly Meeting: Board to review Operating Plan as will be presented to Town Council. Minor changes can be made. -9/20 Council Meeting: Present Operating Plan for approval from VLMD 2023 Goals May - Oct Timeframe 2019 Results 2020 Results 2021 Results 2022 Forecast 2023 Preliminary Budget 2023 Proposed Goals for discussion Sales Tax $9,853,122 $8,889,947 $13,674,538 $13,725,135 $12,627,712 Flat to 2022 Lodging Tax $931,499 $827,522 $1,482,956 $1,421,808 $1,286,426 Flat to 2022 Occupancy 45.0%30.3%45.1%44%NA 45% Group Occupancy 24.7% 4.3%14.7%20%NA 25% 2023 Proposed Budget 2023 Revenue Projection $ 4,700,000 ●2023 Lodging Tax collections projected conservatively ●$4.7M is a 10% increase from 2021 Actuals and a 10% decrease from 2022 Forecast ●Revenue forecast will continue to be monitored and adjusted through budget process Total VLMD Budget for 2023 $6,100,000 ●Annual Marketing Budget: $4,450,000 ●Contingency: $250,000 ●$1.4M use of Reserves. Funds not managed by the VLMDAC ○~$1.2M One-time transfer for event funding ○~$200K contribution for Steward Vail outcomes 2023 Proposed Budget 35%57% 2023 Budget proposes to utilize reserves of $1.4M towards events ($1.2M) and Steward Vail ($200K) Additional Budget Spend Options There were accounting errors discovered after last meeting and we have two options. Current Budget $ 4,700,000 Current Budget Allocated $ 4,578,000 Available Budget $ 220,000 Recommended Option 1: Allocate $220,000 to Operating Plan. Discuss options: Additional spend to “return to normal” ●Increase Paid Media - Summer Media is flat to 2021 and down 32% from 2019 ●Increase Group Sales Trade Shows ●Add in Group Sales Event Recruitment Additional Opportunities ●Additional production for video and/or enhanced 2024 campaign Increase Contingency from $250K to $300K Option 2: Move $220,000 into fund balance, bringing fund balance from $1.46M to $1.68M BUDGET BREAKOUT BY CONSUMER JOURNEY Other Guest Trad Media Digital / Social PR / Influencer Website Intl Assets / Content Hotel Booking Book Direct Hotel Booking Direct Group SalesWelcome Center Events Town-ow ned Exp Lodging Retail / Rest. Mt / VR WOM Social Survey Email Database Loyalty BookingIn-Market Dreaming / Considering Traditional Media Digital / Social Website PR / Influencer International Assets / Content Hotel – BookDirect Hotel – Direct with property Group Sales Welcome Center Events Town-owned Experience Lodging Retail / Restaurants Mountain / VR 1:1 Direct Marketing Database Loyalty Email Post Trip / Sharing Survey Social Word of Mouth Consumer Journey 2022 vs. 2023 Budget Breakout by Consumer Journey 2022 2023 2023 Total % Budget By Guest Journey Destination: 100% Front Range: 19% Destination: 81% Dreaming/ Considering 61% Booking 8% In-Market 3% Post Trip/ Sharing 4% 1:1 Direct 11% Other 9% Traditional Media Digital / Social Website PR / Influencer International Assets / Content Welcome Center Events Town-owned Experience Lodging Group Sales Survey Social Database Loyalty Email Admin Contingency 2023 total based on current allocated funds, excluding the $220,000 additional funds that make up current budget forecast of $4.7M Dreaming/Considering: Website Item KPI Metric Budget Justification Website Management and Oversight Strategy/Thought Leadership Increase time on site (>2:00) Reduce bounce rate (<65%) Reach 80% new users site traffic $20,000 - Website product vision and road map, digital strategy and leadership such as creative technology consulting and digital ecosystem consulting Analytics/Reporting/Dashboa rds $5,000 - Web data analysis, reporting, insights, and strategic recommendations such as performance testing strategy and implementation, optimizations, monthly reporting UX & Development Updates $33,000 - Development support including front-end, back-end and CMS, UX strategy and design, Visual design, including UI and interaction design as needed Misc Ongoing Web Maintenance $15,000 -Ongoing account management of Wordpress website, management of third-party website tools and subscriptions -Website security and stability, testing and QA General Account Management $17,000 - General account management - Bi-weekly status meetings and document management - Partner/agency status calls - Travel to and from Vail for partner meetings as needed, including monthly board meetings and/or Town Council Meetings - Budget management and monthly billing packet creation *Board requested specific budget breakout of Dreaming/Considering for Website and Assets/Content buckets Dreaming/Considering: Website Item KPI Metric Budget Justification SITE to update/maintain/freshen/audit Discover Vail on an ongoing basis for the year Time on site, pages visited $28,000 Website Software Costs: Service provided and invoice paid $27,000 ●Wordpress: $25 ●Pantheon:$9,000 ●Cloudinary: $3,000 ●HotJar: $950 ●Gravity Forms: $259 ●Connekt: $35 ●Events Calendar: $190 ●If needed increase: $3,766 Software to maintain site Ongoing SEO Services Organic traffic increase Improvement in rankings of identified keywords Above the fold organic placement for top keywords $39,000 Initial increase over 500% in organic traffic #1 or #2 in many critical keywords, improvement across the board 4 blogs per monthOngoing Web Content Engagement and asset quantity $30,000 Baseline Winter Content Development Engagement and asset quantity $7,500 See above results for non-winterWinter SEO Ramp Up Organic traffic increase Improvement in rankings of identified keywords Above the fold organic placement for top keywords $3,250 *Board requested specific budget breakout of Dreaming/Considering for Website and Assets/Content buckets Dreaming/Considering: Assets/Content Campaign Production Item KPI Metric Budget Justification Dream Campaign Execution - FY23 assets (OOH, digital, native, social, print, production hard costs) Completion of deliverable, media performance $185,000 ●Hard costs: $45,000 ●Fees: $140,000 Build on the brand expression in concepts and assets. In line with 2022 deliverables (over 350 assets) and includes air marketing and DSP executions. Dream Campaign Concepting - for use in FY24 (concepting, execution, production hard costs) Completion of deliverable, media performance $225,000 ●Hard costs: $140,000 ●Fees: $85,000 Build on the brand expression in concepts and assets. Dream Campaign Seasonal Guidelines Completion of deliverable $10,000 Provide tools for the community to help deliver on the “Dream” campaign *Board requested specific budget breakout of Dreaming/Considering for Website and Assets/Content buckets Dreaming/Considering: Assets/Content Photo/Video Item KPI Metric Budget Justification New Photo Portal $15,000 Winter Assets: shooting assets/producing videos $100,000 Asset Acquisition & Production: User Generated Program/3rd Party Asset purchasing, photo & video content acquisition, Video Production of Summer/Fall web/social videos, content pieces, management fees Completion of deliverable $299,000 Build on the brand expression in concepts and assets *Board requested specific budget breakout of Dreaming/Considering for Website and Assets/Content buckets SHIFTS IN CONSUMER JOURNEY INITIATIVES Discontinued Item Description Action Research Cactus in depth consumer interviews SMARI Stewardship and International surveys One time projects Travel Classics In-market support and hosting of Travel Classics Removed due to one time opportunity Test and Learn Budget set aside to dedicate test and learn. Media is constantly iterating and adjusting and separate budget is not needed Removed Brand Campaign Community Brand Kick-off, Education and Incentivization to embrace New campaign Campaign launched and repurposing for 2023 In Resort Installation AIPP have long lead plans for funded efforts. A non-permanent solution was put in place in 2022. Removed 2023 funding to allow for other more concrete tactics The following 2022 initiatives will be discontinued with funding shifted to new initiatives New Initiatives: Winter Need Period Item KPI Metric / Goal Budget Winter asset (photo/video) acquisition Winter web/social film production/distribution Ensure content on owned channels delivers to brand promise $100,000 Winter website enhanced content and SEO Ramp-up SEO to support winter. Adding net-new SEO baseline. $10,750 Late season (April) and early season (Nov-Dec) paid media and creative Benchmark performance or above. Increased paid media to promote lodging offers during need time periods. $221,000 2023 winter initiatives for winter need time period support lodging. Not inclusive of ongoing initiatives (owned channels and year-round support) New Initiatives Item KPI Metric / Goal Budget New York in-market media visit Stories generated and quality of placement, bringing back a successful pre-COVID strategy $15,000 Mexico Spring in-market event/activation Stories generated and quality of placement, bringing back a successful pre-COVID strategy $25,000 Group Travel/Trade show attendance Increase top of funnel awareness of Vail as a group marketing during non-ski season.National presence for Vail brand at key industry shows & travel trade events $30,000 Social Audit Deliverable of plan and implementation with social is the next owned channel area of focus. $40,000 Purpose: A social audit will showcase the biggest opportunity on social channels and help uncover the types of content that our audience loves and is most likely to engage with – leading to a stronger brand relationship. Deliverables: -Social Situation Audit - Analysis of current social media channels including competitive + category audit. -Audience Profiles and “Right Space” - Provides analysis of existing audiences and outlines recommendations for future social media audiences, and defines the role our brand should play for consumers and culture in social. -Integrated Social Strategy - Social media playbook including editorial authority, channel plan and measurement frameworks. Social Audit + Strategy Improve/Enhance Item Description Action Mexico Press trips Stories generated No. and quality of attendees $10,500 CVENT and Group Marketing Efforts Develop Village Wide messaging and generate group leads for Vail with focus on non-ski months and winter shoulder seasons via industry marketing tools, video retargeting, and increased consideration. Increase group market share and push mid-week and spring/fall occupancy $30,000 2024 Campaign In preparation of 2024, increase creative and production costs for the evolution of LIBAD. $225,000 Additional Budget Spend Options There were accounting errors discovered after last meeting and we have two options. Current Budget $ 4,700,000 Current Budget Allocated $ 4,578,000 Available Budget $ 220,000 Recommended Option 1: Allocate $220,000 to Operating Plan. Discuss options: Additional spend to “return to normal” ●Increase Paid Media - Summer Media is flat to 2021 and down 32% from 2019 ●Increase Group Sales Trade Shows ●Add in Group Sales Event Recruitment Additional Opportunities ●Additional production for video and/or enhanced 2024 campaign Increase Contingency from $250K to $300K Option 2: Move $220,000 into fund balance, bringing fund balance from $1.46M to $1.68M Board Approvals -Approval of Option 1 with spend direction or Option 2 for use of additional $220,000 -Approval of 2023 Operating Plan with requested changes for final approval at September 15 Board meeting Thank you