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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