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Home My WebLink About01. 2022 Operating Plan 8.30.21VLMDAC SPECIAL MEETING AUGUST 30, 2021 Agenda •2022 Strategic Plan & Budget (60 minutes), All Partners •Other Business •Adjournment •VLMDAC Executive Session pursuant to: 1) C.R.S. §24-6-402(4) (e) -to determine positions, develop a strategy and instruct negotiators, Re: 2022 VLMD Budget (60 minutes) 2022 Proposed Operating Plan 2022 Proposed Budget 2022 Revenue Projection $3,555,000 Annual Marketing Budget $3,555,000 Initiatives Using Reserves $504,240 Contingency-Destination Stewardship Plan $100,000 Contingency $130,760 Total VLMD Budget for 2022 $4,200,000 Decrease in Fund Balance $649,000 The proposed budget will use $649,000 of fund balance. The 2022 projected ending fund balance is $926,786, 25% of annual revenues. 2022 Proposed Budget Expenditure Increase: + 7.6% from 2021 + 15.6% from 2019 46% Drive Visitation Overnight & Out-of-State Visitation 54% Strategy Branding Research Database Photo/Video Fees 14%Web/CRM/Social 5 %Public Relations 12 %Groups 2 %International 22 %FR Overnight 46% Destination Drive VisitationFull Budget 37% Drive Visitation Overnight & Out-of-State Visitation 63% Strategy Branding Research Database Photo/Video Fees 19%Web/CRM/Social 9 %Public Relations 13 %Groups 3 %International 11 %FR Overnight 41% Destination Drive Visitation 27%Trad 73% Digital Media TypeFull Budget 2021 Budget Breakout 2022 Budget Breakout 19%Trad 81% Digital Media Type Historic Budget Breakout by Category / DSP Guest Trad Media Digital / Social PR / Influencer Website Intl Assets / Content Hotel Booking Book Direct Hotel Booking Direct Groups BookingWelcome Center Events Town- owned 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 Groups-Booking 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 Dreaming 73% Booking 10% In-Market 0% Post 1% 1:1 11% Contingency / DSP 5% 2021 vs. 2022 Budget Breakout by Guest Journey2021 2022 Dreaming 53% Booking 9% In-Market 2% Post 3% 1:1 19% Contingency / Fees 14% 0% Word of Mouth0% Social Media 3% Research / … 2022 Total % Budget By Guest Journey Dreaming 57% Booking 10% In-Market 6% Post 5% 1:1 17% Other 5% 15% Assets / Content 1 % International 7 % PR / Influencer 5 % Website 17 % Digital Media 7 % Traditional Media 0% Hotel –Book Direct2% Hotel –Direct w … 8% Group Bookings 0% Mountain / VR0% Retail / 0% Lodging0% Town Owned 0% Events2% Welcome Center 2% Email 3% Loyalty 13% Database 2% DSP 3% Contingency 9% Fees Front Range: 30% Destination: 70% Front Range: 17% Destination: 83% *Initiatives Using Reserves Start / New KPI Metric Goal Budget *Create PR and Data acquisition worthy experiences -Ad CTR -Social Engagement -Media Coverage -No. of packages purchased -Industry Benchmark CTRs -Establish benchmark for social -12 target media outlets -1 purchase each $60,000 *Developing “Life is But a Dream” Experiences (ie: Dream Pods, dream photo frames/locations, pop up dream “tents” etc.) Installation Engagement 100 Social shares 700 QR Code scans $15,000 *Welcome Center DSP Programming increased visitation Participation in Programing 5% increase TBD on tracking this $90,000 *Conduct in depth consumer interviews Actionable audience insights that advance our personas $75,000 *User Generated Content Program Engagement and submissions 30 tier 2 photos $45,000 *Develop Loyalty Program that builds our relationship with consumers Sign Up, Visitation,In Market Engagement, Show Signals of Intent, Demonstrate Brand Values, Increase Booking Frequency, Increase in-market spend TBD as program hasn’t been created $125,000 *Email automation and personalization, content plan Reduced opt-out rate Increased open-to-click rate Increase # of email campaigns and segments executed 25% reduction in opt-out rate 20% increase in OTC rate 20% more campaigns executed YoY with more than twice the targeted segments $76,640 *Community Brand Kick-off, Education and Incentivization to embrace Community attendance 40%$10,500 Unallocated / Shift to Contingency $7,100 TOTAL $504,240 Dreaming / Consideration Start / New KPI Metric Goal Budget *Create PR and Data acquisition worthy experiences See Dream Trips content detail $60,000 Improve / Enhance KPI Metric Refine media mix -Decrease all paid media, Decrease Front Range shifting more to Destination RODAS for digital Impressions / reach for Traditional TBD Dest. Digital: $637k Dest. Trad: $198K FR Digital: $128k FR Trad: $90.5K Reduce International to align with priorities $56,000 Improve Website engagement and incorporate Life is But a Dream assets -Further optimizing Things to Do to drive seasonally relevant content -Events Calendar optimization to improve usability Time on site Hot Jar / User feedback Reach / maintain 1:30-2:00 TOS Inclusive of $130k web enhancement Enhancing web content plan (management, creation, execution) SEO Top 5 Inclusive of $130k web enhancement Dream Trips •Program Goals: –Build Relationship -Capture Data & Engagement/Loyalty –Brand Stewardship •Definition / Techniques / Approach / Description: –Develop three “Dream Trips” to Vail that illustrate one-of-a-kind, over-the-top vacation experiences. –Promote through integrated marketing efforts -social, electronic marketing efforts and PR. –Each trip also can be given away to drive data capture. •Ideas: ●Dream Season -In conjunction with Four Seasons. ●Music Package –Exploring a private concert with Edwin McCain or guest conductor during Bravo! ●Dining Package –Exploring a partnership with Nobu Matsuhisa. ●Luxury Backcountry –Package Game Creek & backcountry llama, 10th Mountain overnight. ●Driving Package –Inquiring about Lewis Hamilton’s interest/availability. Dream Trips •KPIs: –Ad clickthroughs –Social engagement –Media coverage –No. of packages purchased Start / New KPI Metric Goal Budget Enhanced messaging and inclusion in lodging pre- arrival (DSP, Toolkit Materials) Lodging partner utilization/participation Number of Lodges participating Enlist 50% of eligible Lodges to participate Inclusive of Lodging Liaison scope, $48k Improve / Enhance KPI Metric Developing booking offers and incentives Redemptions Lodge Participation Provide seasonal promotional opportunities through Discovervail.com Inclusive of Lodging Liaison scope, $48k Refine customer journey and understand signals of intent -Optimization of how users flow through the site driving to key goals (data capture & lodging) -Optimizing data capture with book>direct TBD via Google Analytics funnel report Establish a baseline and develop specific YOY goal inclusive of $130k web enhancement Increase group marketing efforts with CVENT Lead generation & retargeting advertisements Increase lead gen by 5%$165,000 Booking / Pre Arrival Start / New KPI Metric Goal Budget *Developing “Life is But a Dream” Experiences (ie: Dream Pods) See Dream Pod detail on following slides $15,000 *Event Activation Staffing and Materials Attendee engagement / Data collection 30% increase of trip giveaway sign ups $9,000 *Welcome Center DSP Programming Participation in Welcome Center Programing and increased visitation $90,000 Improve / Enhance KPI Metric Ambient programming to better align with VLMD goals by taking in house (TOV) Inclusive of TOV fee, $25K Events contract structure to better align with VLMD goals Increased data collection from events 30% increase in giveaway sign-ups Inclusive of TOV fee, $25k Alignment with VR on content and promotions Increased partnership and collaboration on events/programing/ content Enhanced content on vail.com Inclusive of TOV fee, $95k In-Market Dream Experiences •Program Goal: Incorporate Life is but a Dream campaign into in-resort experience •Definition / Techniques / Approach / Description: -Option 1: Purchase and install hanging chairs on TOV property and brand them as dream pods, encouraging guests to take a moment to #DreamVail -Have tasteful signage encouraging guests to learn more about “DreamVail” -Option 2: photo op zones with dream messaging/art -Option 3: Pop-up ‘dream tents’ •KPI -100 Social shares -700 QR Code scans Welcome Center •Program Goal: -Guest DSP education -Welcome Center visitation increase -Guest data capture •Definition / Techniques / Approach / Description: •Ideas: -Use 2021 In-Market Enhancement Plan to -Incorporate Walking Mountains Educational Programing -Continue DSP quiz promotion -Create DSP / Love Vail informative, interactive installations -Print •KPI -5% visitation increase to Welcome Centers -Guest participation in Educational Programing Start / New KPI Metric Goal Budget *Conduct in depth consumer interviews Actionable audience insights that advance our personas $75,000 *User Generated Content Program Engagement and submissions 30 Tier 2 photos $45,000 Post Trip / Sharing User Generated Content Program •Program Goal: -Brand Stewardship •Definition / Techniques / Approach / Description: -Generate asset options by calling on local photographers to capture assets following the new brand asset direction/guidelines, with the possibility of the VLMD purchasing these assets for unlimited use in our Marketing/PR efforts •Ideas: -Reach out to local photographers directly with phone/email -PR/Marketing/Social campaign reaching out to local photographers -Provide complete creative direction to ensure submitted shots follow guidelines •KPI –Acquire at least 30 images with 10 winter focus, 20 summer/fall 1:1 Direct Marketing Start / New KPI Metric Goal Budget *Develop Loyalty Program that builds our relationship with consumers See Loyalty on following slides See Loyalty on following slides $125,000 Improve / Enhance KPI Metric *Email automation and personalization, content plan Reduced opt-out rate Increased open-to-click rate Increase # of email campaigns and segments executed 25% reduction in opt-out rate 20% increase in OTC rate 20% more campaigns executed YoY with more than twice the targeted segments $76,640 Enhancing email and web content plans (management, creation, execution) Engagement and asset quantity $41,000 Loyalty Program •Program Goal: The goal of a Customer Loyalty program is to increase engagement and retention, and eventually drive advocacy. For the Town of Vail, the goal of a Customer Loyalty program is also to build a direct relationship with visitors that supplements their individual relationships with town partners. •Definition / Techniques: –A Customer Loyalty program is a structured strategy that builds a stronger relationship between brands and their customers –A Customer Loyalty program is NOT necessarily a points-for-rewards program. –Combines use of communication, software, hardware, gamification (in some cases), commercial incentives, marketing tactics, event planning etc. –Uses these techniques to drive particular desired behavior. The key for successful programs is that there is value to the company provided (behaviors, spend, data) in exchange for value to the customer provided (rewards, benefits, status) •2022 Approach: Use 2022 to develop and test potential loyalty program components (incentives) to understand what best drives desired behavior. Longer-term, these behaviors and incentives can be built into a structured program. Planning will focus first on driving sign up and visitation. Loyalty Program Desired Behavior Benefit ●Sign Up ●Visitation ●In Market Engagement ●Show Signals of Intent ●Demonstrate Brand Values ●Increase Booking Frequency ●Increase in-market spend ●Giveaway (swag) ●Preferred Access (early entry, exclusive, etc.) ●Added Value / Upgrades ●“Inside” information ●Ease of booking/planning Loyalty Program Ideas: •A/B/C Reward Test: Drive sign up –Understand lowest possible incentive price with highest perceived value –Test a variety of incentive types (giveaway, added value, etc) to understand implementation effort and scalability •In Market Redemption: Signals of Intent –Understand if offering an in-market swag item for program sign up can be an indication of visitation intent. •Engage and Earn:Emphasize value of content and planning insight –Provide targeted content where engagement (download, survey response, etc.) can earn benefits available on trip (access, discount, etc.) •Sustainability Rewards:Earn value for aligning with sustainability values –Plant a tree, pick up trash, attend a sustainability event, etc. and earn benefits (access, discount etc.) For Feedback / Approval insert / DSP Other Business