HomeMy WebLinkAbout05. 2024 Operating Plan FinalVLMD 2024 OPERATING PLAN
September 19, 2023
Agenda
-2023 Review and Preliminary Results
-2024 Goals
-2024 Objective and Priorities
-2024 Operating Plan
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 Campaign
-Efforts this spring and summer have increased engagement
and resulted in:
26k+
Hotel
Searches
2022: 25k+
689
Hotel
Bookings
2022: 478
$605k+
Hotel
Revenue
2022: $541k+
84k+
Flight
Searches
2022: 398k+
7k
Flight
Bookings
2022: 44k+
Source: Adara Impact, 5/1/23-8/31/23
2022/2023 Winter Campaigns
Early and late winter efforts focused on prospective visitors in
drive markets, supporting lodging specials.
>20k
Hotel
Searches
>500
Hotel
Bookings
>$500k
Hotel
Revenue
Source: Adara Impact
Building Loyalty and Driving Guest Engagement
Continued database growth exceeding goals
●On-track to exceed
2023 goal
●Growing
incrementally
47.5M
Sends
+77% YoY
174
Campaigns
+106% YoY
862k Clicks
+76% YoY
0.57%
Unsub.
Rate
-0.11 ppt YoY
Building Loyalty and Driving Guest Engagement
Email engagement metrics exceeding goals, year to date
2024 OPERATING PLAN
Grow a vibrant, diverse economy and
community and preserve our surrounding
natural environment, providing our
citizens and guests with exceptional
services and an abundance of
recreational, cultural and educational
opportunities.
2024 // A Building Year
-Evolution of the Destination Marketing Organization (DMO)
and exploration of funding alternatives
-2024 Campaign Development
-Brand Development
2024 Goals
May -Oct
Timeframe
2019 Results 2020 Results 2021 Results 2022 Results 2023
Forecast 2024
Preliminary
Goals
4% Sales Tax $9,853,122 $8,889,947 $13,674,538 $14,222,156 $13,182,171 Down 1%from
2023 forecast, flat
with 2022 YTD
actuals
1.4%
Lodging Tax
$931,499 $827,522 $1,482,956 $1,457,425 $1,338,457 Flat to 2023
Forecast
Occupancy 45%30%45%43%43%45%
Group
Occupancy
25% 4%15%24%24% 25%
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 while
educating on
community values.
Optimize
Visitation
Grow customer
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 Proposed Budget
2024 Revenue Projection $5,460,000
●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 $ 5,771,200
●Marketing Budget:$5,521,200
●Contingency:$250,000
●Use of Reserves:$311,200
○
Budget and Reserves Comparison
NOTE:
2023 Budget utilized
reserves transferring to
General Fund of $1.4M:
-Events: $1.2M
-Steward Vail: $200K
Proposed budget
uses $311,200 of the
$1.2 million in
reserves available
46%40%
Building in 2024
2024 is a building year, creating a new brand to grow guest loyalty while
strategically deploying media to drive optimal visitation.
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
●Lodging campaigns to fill need periods
●Grow market share
●Enhance video distribution
●Prioritize Mexico efforts
●Targeted group Marketing
●Stewardship messaging
53% 45%
Visitation budget and % of total
Budget Based on Priority
Build LOYALTY
To grow database and use data to understand our guest to enhance engagement &
loyalty, 2024 strategy includes:●Creating an Analytics Center of
Excellence
●Hyper-personalization in email
●Grow highly-engaged newsletter
signup audience on web and in-market
●Continued testing of loyalty campaign
concepts
●Enhanced video strategy to build upon
owned channels (web, email, social)
24% 28%
Loyalty budget and % of total
Budget Based on Priority
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.
3% 10%
●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
Budget Based on Priority
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
19%24%
Budget Based on Priority
2024 Operating Plan
The VLMD budget resolution is scheduled for the November 7th meeting.
The Vail Local Marketing District Advisory Council recommends that the
Vail Local Marketing District approve the 2024 Operating Plan and budget
of $5,771,200.
THANK YOU