HomeMy WebLinkAbout01. 2024 VLMD Operating PlanVLMD 2024 OPERATING PLAN
September 7, 2023
2023 REVIEW & PRELIMINARY RESULTS
2023 // A Transition Year
-Introduction to Winter
-First time content created for winter promotion
-Campaigns to support early and late season
-Stewardship Roadmap implementation
-New brand creation in process
-2024 campaign strategy: New concept to better align
with community values while the new brand is in
development
-
2023 Summer Campaigns
AT A GLANCE: Life is but a Dream campaign is continuing to perform
well in 2023
-Over 36 million impressions generated through July through an
omni-channel effort against high net worth and travel-interested
audiences in key markets through an omni-channel effort
●Digital
●Social
●Video
●Streaming radio
●Search
●Print
●Out of Home
●High Net Worth Empty
Nesters
●High Net Worth
Families
●Travel Intenders
LA, San Fran, Seattle,
Phoenix, Miami, NYC,
Dallas, Houston, Austin,
Chicago, Minneapolis,
Omaha, Oklahoma City, and
Kansas City; Arizona, New
Mexico, Utah & Colorado
2023 Summer Campaigns
-Efforts this spring/summer have generated increased action,
turning prospects into visitors
21k
Hotel
Searches
>550
Hotel
Bookings
>$420k
Hotel
Revenue
58.6k
Flight
Searches
4.8k
Flight
Bookings
2022/2023 Winter Campaigns
Introduction to Winter: First time in market to support early and
late winter efforts
-Focused efforts in to prospective visitors in drive markets,
supporting lodging specials
These learnings will be used to enhance and build the
2023/2024 winter campaigns
>20k
Hotel
Searches
>500
Hotel
Bookings
>$500k
Hotel
Revenue
Building Loyalty and Driving Guest Engagement
Continued database growth and engagement improvements in email
On-track to exceed annual database
growth goal by September – ⅔ of
contacts engage regularly with email
Leveraging demographic data appends
to personalize content and drive
engagement
-Sent 65% more campaigns YoY (30%
goal)
-Total clicks up 60% YoY (35% goal)
-Unsubscribe rate down 25% YoY (flat
goal)
Transitioning to 2024
2023 work and results will impact and enhance the work to be
done in 2024
-Evolution of the Destination Marketing Organization (DMO)
and exploration of funding alternatives
-Brand Development
-2024 Campaign Development
GOALS AND RESULTS
2024 Preliminary Goals
May - Oct
Timeframe
2018
Results
2019
Results
2020
Results
2021
Results
2022
Results
2023
Forecast
2024
Preliminary
Budget
2024
Preliminary
Goals
4% Sales Tax $9,733,322 $9,853,122 $8,889,947 $13,674,538 $14,222,156 $13,182,171 $13,609,221 Down 1% from
2023 forecast,
flat with 2022
YTD actuals
1.4% Lodging
Tax
$991,125 $931,499 $827,522 $1,482,956 $1,457,425 $1,338,457 $1,379,226 Flat to 2023
With Marriott
Occupancy 47.9%45.0%30.3%45.1%43.2%43%NA 2023 goal: 45%
Group
Occupancy
24.8%24.7% 4.3%14.7%24.1% 24.1% NA 2023 goal: 25%
Goals for discussion:
-Group occupancy during low demand timeframes
-Non-Winter mid-week occupancy
For board discussion
2024 OBJECTIVE & PRIORITIES
2024 Objective & Priorities
Drive responsible year-round revenue growth in Vail by targeting overnight guests who stay longer and
spend more, while effectively communicating community and brand values. Areas of focus include
increasing mid-week and lower demand time period stays.
Business Objective
Target high net worth
guests, maximize
longer stays and
higher spend, gain
greater
understanding of
customer through
research.
Optimize
Visitation
Grow database and
use data to better
understand guest to
enhance
engagement &
loyalty.
Build
Loyalty
Develop and deliver
upon a brand position
that reflects
community values,
differentiates Vail
in ways that build its
competitive edge, and
inspires all to care for
Vail.
Lead
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
2024 OPERATING PLAN
Building in 2024
2024 is a building year, creating a new brand to grow guest loyalty while
strategically deploying media to drive visitation with the optimal guest.
Optimize VISITATION
To target high net worth guests, maximize longer stays and higher spend and
gain greater understanding of customer through research, 2024 strategy
includes:
●Grow destination markets
●Focused lodging campaigns to fill need
periods
●Ramp up efforts to take market share away
from competitors via competitive conquesting
●Enhance video distribution
●Continue to prioritize Mexico efforts
●Targeted group marketing
51% 42%
Visitation budget and % of total
Build LOYALTY
To grow database and use data to understand our guest to enhance engagement &
loyalty, 2024 strategy includes:
●Analytics Center of Excellence to provide
insights on channels beyond email and
database
●Hyper-personalization in email, enabled by
AI-based content versioning
●Grow highly-engaged newsletter signup
audience on web and in-market
●Continued testing of loyalty campaign concepts
to inform loyalty strategy
●Enhanced video strategy to build upon owned
channels (web, email, social)
22% 25%
Loyalty budget and % of total
Lead STEWARDSHIP
To develop and deliver upon a brand position that reflects community values,
differentiates Vail in ways that build its competitive edge, and inspires all to care for
Vail, 2024 strategy includes:
Stewardship is woven throughout all 4 priorities however these are the strategies guided
specifically by the Stewardship Roadmap.
1% 7%
●Launch new brand to build Vail's competitive
advantage
●Build a brand campaign around true attributes
and drive traveler intent.
●Create an in-market stewardship campaign
●Build diversity equity inclusion strategy
Stewardship budget and % of total
To position Vail as the Premier International Mountain Resort Community and work
with community partners to define, support and deliver on the brand, 2024 strategy
includes:
●Build a brand campaign around true attributes
and drive traveler intent.
●Strategy and production for 2025 brand launch
●Create board mission for VLMD to guide
strategy
BRAND Positioning
Brand budget and % of total
17% 21%
●Primary: High-Net-Worth with a focus on Empty Nesters and Families
●Secondary: Travel Intenders not included in primary target audience
2024 will introduce Adara Consortium, giving the ability to build first-party-data audiences
that can engage Vail’s loyal user base to increase repeat visitation.
Audiences
2024 Proposed Budget
2024 Revenue Projection $ 5,430,000
●2024 Lodging Tax collections projected conservatively. Revenue is forecasted
down 2% for next year, but is anticipated flat due to the new Marriott
Residence Inn
●$5.4M is flat with 2022 actuals and flat with the 2023 forecast
●Revenue forecast will continue to be monitored and adjusted through budget
process
2024 Proposed Budget $ 5,721,200
●Marketing Budget: $5,471,200
●Contingency: $250,000
●Use of Reserves: $291,200
○
Budget and Reserves Comparison
NOTE:
2023 Budget utilized
reserves transferring to
General Fund of $1.4M:
- Events: $1.2M
- Steward Vail: $200K
46%41%
Proposed budget
uses $291,200 of the
$1.2 million in
reserves available
Marketing Budget Comparison
2024 Operating Plan
Request of the board: Approve or approve with changes, the 2024 Operating
Plan of $5,721,200 to bring to the VLMD / Town Council for approval on
September 17, 2023
THANK YOU