2013 Rental Participants Meeting - Kingsmill Resort · Group Recap . 2012 Year End Revenue Review...

transcript

February 9th, 2013

2013 Rental Participants Meeting

Robin Carson

Welcome

2012 Rental Participants Meeting

Agenda

Rental Participant Meeting

• Welcome and Introductions Robin Carson

• 2012 Year End Revenue Review Michael Shannon

• 2013 Marketing Plan Rich Keurajian

• Update of Ten Year Plan Robin Carson

• Kingsmill Capital Improvements Kevin Kolda

• Kingsmill Real Estate Update Gary Raymond

• Status of Soft Goods Renovation Michael Shannon

• Status of 2015 Contract Michael Shannon

• Dominion Power Update Robin Carson

• Question and Answers Robin Carson

Michael Shannon

2012 Year End Revenue Review

Top Concerns

Commissions, Commissions,

Commissions!

Commissions 2012

• Resort Commission Expense grew by almost 60%

• 58.8% Increase over 2011

• Total Commissions, as a Percent of Sales

• Grew from 2.0% in 2011 to 2.8% in 2012

Group Commissions

• Third Party Bookings

• Companies that Outsource Meeting Planning

• i.e. HelmsBriscoe and Maritz Travel

• These Commissions remain in the Traditional Range of 10%

to 15%

• Accounts roughly 15% of Group Bookings

OTC, Online Travel Company • TravelClick, iHotelier

• Provides a Service as Opposed to Driving Business

• Links Directly to Our Home Page

• Provides the Functionality & Security Required to Book

Online

• Ensures We are Able to Keep Up with Ongoing Technology

Advances

• 2.5% Commission

2012 Year End Review

OTA, Online Travel Agency

• Expedia, Hotels.com, Orbitz, Priceline, and many, many

• Provide a Revenue Stream as Opposed to Providing an

Online Service

• Often Used as a Search Engine

• Many Customers “Shop and Hop”

• These Commissions are in the Range of 15% to 30%

Searches by Destination

Travel Websites

Mobile Phone Travelers

• Tablet Users Travelers Average Booking Window

• 14 Days in Advance of Stay

• Mobile Phone Travelers Average Booking Window

• 1.7 days in Advance of Stay

The Good News!

• Total Leisure Bookings Increased by 13.7%

• Expedia, alone, accounted for 3467 Room Nights

• Expedia Commissions Renegotiated

• From 30% in 2012 to 25% in 2013

• Total Commissions as a per cent of sales

• Remains Under 3%

Group Recap

Leisure Recap

Total Room Recap

Rich Keurajian

VP Sales & Marketing

Sales & Marketing

Market Segments

STR Report

Revenue Management

Key Objectives & Updates

Media Budget

New Ad Agencies

Online Marketing

Website & Social Media

Booking Pace

Kingsmill Championship

Group Segments

2010 2011 2012

3 Year History of Group Rooms by Segment

Corporate SMERF Association Government Weddings

Resort Best Practices

Annual Roundtable January 28, 2013

Marriott Marquis

Revenue Management

• "Hotel pricing in the U.S. market is "price inelastic" on an

industry wide basis for all hotel types. That means

lowering prices will not stimulate enough incremental

demand to make up for the rate reductions; there isn't

enough demand in most markets to compensate -

therefore, the net result of lower rates is lower revenue

levels.”

2012 Distribution Analysis – STR Special Report – Executive Summary

Rate Considerations

Supply and demand

Competitors pricing

Booking pace

Lead time

Booking window

Forecast occupancy

Historical data

Managing Rates

Monitor pace and RMS recommendations on a

daily basis

Factor in current conditions and market

intelligence

Adjust available rates upward whenever possible

Increase deployment of “value added” packages

with perceived high value inclusions

Reduce deployment of “flash sales”

Adjust rates by season and room type

Updates & Initiatives

New Sales & Marketing leadership at Xanterra: Ms. Betsy O’Rourke, Vice President Sales & Marketing

Mr. Michael Gunstanson, Director, Digital Marketing

Mr. Daniel Borovsky, Director of Revenue Management

Ms. Karen Lukanic, Director of Sales

Kingsmill created a Washington DC based Sales Manager position

Kingsmill has outsourced a full time Social Media position

Kingsmill has hired three new agencies Dana Communications – ‘Branding and Offline advertising’

VERB Interactive – ‘Digital Marketing, Website and Social Media’

Weber Shandwick – Public Relations

Dana Communications

Brand Strategy and Development

Core Creative

Research Management

Marketing Digital/Mobile

Traditional

Social Media

Events and Promotions

Media Planning and Placement

Tracking, Analysis and Reporting

Dana’s Clients

Dana’s Alliances

Dana’s Brand Objectives

Conduct Branding Session with Kingsmill Team

Tone & Manner

New Creative to reflect the fun, playful side of Kingsmill

Promote Kingsmill as a destination within a destination

Brand & Service Icons

Develop Kingsmill brand promise and translate to customer

through brand and service icons

Strategic Partnerships

Packaging

Lead Generation

Preferred Hotels

VERB Interactive

VERB Interactive is 100% focused on digital marketing for the travel and hospitality industry providing solutions for resorts/hotels, destinations, major cruise lines, golf

courses and festival/event marketing.

VERB Interactive Clients

Integrated Travel Planning

Online Marketing Approach

Online Consumers

Website Visitors

Shoppers

Conversions

Conversion Funnel Analytics Focus

Track Online Consumer Behavior, by Segment

From Ad Impression thru to Conversion

Focus on Key Metrics

Cost-per-conversion, -click, -lead, etc. Visitors --> Shoppers --> Conversions

Detailed Reporting and Analytics

Ongoing Key Metric Analysis & Trending

Optimization and Scalability

Test Improve Repeat

Digital marketing is more than Internet advertising. Kingsmill will partner with VERB for strategic set up, marketing, ongoing analysis and optimization.

Continually improve performance over time leads to lower cost per conversion.

Offline

Online

Online Marketing Strategy

Develop campaigns that leverage targeted media opportunities and drive measurable, cost-effective, conversion results.

All media drives to the website for measure against conversions including:

1. Visitors –users coming to the site 2. Shoppers – % of visitors accommodations, packages, etc. 3. Conversions – % of visitors taking a desired action

• Reservations • Newsletter, etc

•Virginia

•Regional Drive Market

•Top US Mkts ~DC, Maryland, New Jersey, North Carolina, Pennsylvania, etc.

Geographic

Origin Markets

•Golf Resorts

•Spa Resorts

•Resorts, Suites, etc.

Product Segments

•Seasonal – Spring, Summer, etc.

•Family, Beach Vacations

•Events

Interest Segments

Online Marketing Channels

Search Engine Marketing Reaches the right customer at the right time

Global, targeted, measurable

Additional reach with Content, Image Search, etc.

Utilize all search engines Google, Yahoo, Bing, etc.

Most efficient and effective advertising

Display Advertising Reaches qualified users and provides supplemental reach

Utilize content, keyword and placement specific targeting

Re-targeting enables Kingsmill.com visitors to remain top of mind

Mobile Search Rapidly growing Mobile and Tablet usage

Separate campaigns to optimize conversion

Video Engage consumers on YouTube with cost effective video advertising

:30 spots targeting specific markets and consumer interests

Leverage multiple online channels to maximize reach, measurability, efficiency and effectiveness of online marketing efforts.

Search Engine Marketing

SEM is the most efficient and effective online media option and will form the foundation of the Kingsmill Resort online media plan for 2013

Timing: SEM campaigns launched in January and run for the full year ~ trending would follow consumer research and booking trends peaking in summer

Campaigns: multiple individual campaigns are being developed to specifically target individual groups of consumers (geo, interest, etc.). Campaigns will expand and grow based on performance.

Tracking: all campaigns are tracked against key performance indicators Spend > Clicks > Shoppers > Conversions (bookings / revenue)

Re-Targeting

Users visit an average of 22 sites over 9 sessions before booking (Google & Compete.com 2010 study)

Tag site visitors and text ads will display throughout the Google Content Network (89% of US Internet users)

Cost per click pricing – only pay for visitors who respond to the advertising

Relatively high conversion rate and low cost per conversion

Re marketing enables Kingsmill Resort to cost effectively remain top-of-mind during the research process

Mobile Search

Smartphone and tablet usage represent one of the most rapidly developing opportunities

Google estimates that by 2013, more than 50% of all searches will be from a mobile device

Opportunity to develop specific, dedicated Mobile focused campaigns

Better performance through granular control over bids, budget and keywords

Create dedicated, mobile optimized ad units, targeting, landing pages and conversion goals

New Opportunities - Video

Online video ad option enables Kingsmill to cost-effectively engage users with video

YouTube is the 2nd largest search engine

Multiple targeting options including:

Consumer geography

Video content

Consumer Interest Segment

Campaigns:

TrueView Video Ad campaign: pay per completed view of promo videos – only pay when the viewer has watched at least :30 seconds of the ad (or to completion if less than :30)

Current costs average $0.10 - $0.20 per completed 30 second view

Tracking: all campaigns will be tracked against key performance indicators

Spend > Consumer Engagement (videos watched) > downstream impact/metrics

Website – Social Media

The Website will serve as a hub for all social activities, as the social strategy is focused

on measurement and conversion.

Engage with current and prospective customers via Social Networks

Focus will be placed on Facebook, Twitter, Pinterest, YouTube and niche blogs/golf communities.

Monthly approved content calendars will be prepared to tell the story of Kingsmill

Content units consisting of in-market advertising, golf, photo/video engagement, all while addressing

“What’s In It For Me?” for the prospective guest.

Primary Outreach to top-tier golf blogs and forums will be a priority.

Secondary outreach to lower-tier golf blogs and more general lifestyle/golf blogs will receive different

messaging/priority

Social Media Monitoring and analysis via Google Analytics will play a key role in the

ongoing success, moderation and enhancements to the social media strategy.

Website – Social Media

It is expected that the Website will empower guests at Kingsmill to:

Upload photos, stories and video to be share with Kingsmill’s audience.

Approve content to be syndicated on a social media focused micro-site.

Approve content to be re-purposed on future initiatives or social channels such as Facebook and

YouTube, or the parent Website.

Syndicate (e.g. “Like”, Pin, Tweet) content from the Website to one’s own Facebook profile, Twitter

account, etc. We want people to share in the Kingsmill experience.

Website will be positioned with consumer driven content and brand supplied content

Consumer Driven Content

Develop a Social Media Hub – one touch point for all social and consumer driven

content (e.g. Legends of Kingsmill).

• The site acts as the hub for all information and can publish tales to custom Facebook applications and

social feeds which talk back and forth to each other

Users submit content on Facebook, it lives on both Facebook and the website and

vice versa.

• Facebook Apps pull content from Website database

• Users authorize content published on Website to be published on Facebook, etc.

• All publishing is 100% moderated.

Inbound links from various social platforms helps to increase the overall visibility of

Kingsmill.com thus improving SEO.

The social media hub becomes the launch pad for all social activities, and supports

overall SEO growth.

Key Metrics

Traffic to Kingsmill.com:

• Direct

• Organic Search

• Search Marketing

• Display Advertising

• Email

• Other Sources

Visitors Shoppers Conversions

Visits to key pre-conversion engagement pages:

• Accommodations

• Packages

Completion of target action:

• Reservations

• Newsletter Signups

Key metrics are tracked and trended on a weekly basis and used to continually optimize marketing campaigns over time.

2013 Group Booking Pace (contracted rooms as of 2/8/2013)

Q1 Q2 Q3 Q4 Total

2013 Group Prospects (rooms as of 2/8/2013)

Q1 Q2 Q3 Q4 Total

Kingsmill Championship

• 62,000 Spectators

• Extended coverage on Golf Channel – 14 hours

• Jiyai Shin, 2012 Champion

• April 29 - May 5, 2013

Robin Carson

Update of Ten Year Plan

Kevin Kolda

Resort and Condo Projects

2012 Capital – The Big Stuff

• Sports Club Pool Renovation – Spring 2012

• James Landing Grille – opened in July

• New Marina Store – opened in June

• New Resort Pool Complex (pool, lazy river and bar)

- opened in August

• (2) New Event Lawns

• Eagles Bar and Restaurant Renovation

2012 Resort Capital – By Dept.

• F&B Capital Improvements - $62,000

• Eagles bar/restaurant renovation

• Eagles steamer refurbishment

• Eagles cold line refurbishment

• JLG carpet and paint

• Bray Links Tent fence addition

• Sports and Spa Capital Improvements -

$175,000

• Nail salon upgrades

• Sports club pool furniture replacements

• Locker room improvements

• Spa massage table replacements

• Additional towel bins

• ADA pool lift additions

• Marina SandPro replacement

• Golf Capital Improvements – $283,000

• Rough mower replacement

• Greens fans replacements

• Golf course pond repairs

• Golf course tunnel painting

• Golf greens roller replacement

• Woods Golf Course erosion repairs

• IT Capital Improvements - $500,000

• System virtualization

• Anti virus software updates

• PC and printer replacements

• Marina communications wiring upgrades

• Ipads for Sales and Marketing

• Cabling to Cottages on the James

• Wiring closet upgrades

• Infrastructure Capital Improvements - $830,000

• Sports Club roof replacement

• Interior lighting conversions property wide (energy)

• Awning replacements (Sports Club, Tennis & BP)

• Various HVAC system replacements (sports, golf shop)

• Parking lot paving and seal coating (finish in 2013)

• Security camera upgrades and additions

• Wareham’s Pond dam repair (finishing now)

• Exterior lighting additions for safety (still underway)

• Various plumbing repairs and upgrades

• Laundry equipment refurbishments

• Planned Projects

• Entrance Portico Refurbishment - replace glass, replace rotten wood, new fans, paint, freshen up guest arrival experience

• Eagles Sewer System Improvements - underground sewer work to replace aged system

• Spa and Ladies Locker Room Improvements – (closed 2/24 – 3/4) new carpet in spa, hair salon renovation (new furniture, cabinet changes, mirrors, ceiling, lighting), locker room planned maintenance work

• Men’s Locker Room Improvements – (closed 3/4 -3/11) new carpet and planned maintenance

• James Landing Grille Enhancements – (closed 2/26 – 3/7) carpet downstairs, booths up and down, trellis expansion, exterior ambiance lighting on dock and sea wall, fire pit enhancements, walk in cooler

• Handrail Painting – converting all handrails around resort to white

• Marina Water Sports Equipment– jet skis and pontoon boat for rental

2013 Resort Projects

• Planned Projects - continued

• Sports Club Pool Work – kiddie pool removal, landscaping, pool equipment enhancements (complete before spring opening)

• River Pool Enhancements – check-in area cabinets, pump room work and ramp, bar awning and bar security doors, pool vac, additional concrete, etc. (complete before May opening)

• New Outdoor Meeting Space Furniture – new, cast aluminum tables and chairs for meeting space patios

• Eagles Awnings Replacement – new awnings in green and white standard (before LPGA)

• Conf. Space Renovation – add air wall between Yeardley and Wareham for more flexible meeting space

• Banquet Dance Floor Replacement – new dance floor for conference use

• Planned Projects continued

• Banquet Kitchen Equipment – new combi oven, plate racks, heated cabinets, utility carts, etc.

• Tennis Projects – clay court lifts and new rental bikes (before summer)

• Golf Enhancements – new tee signs, new water boxes, new bag drop racks

• Interior Conf. Space Furniture – new soft goods for lobby and pre-function areas, etc.

• Various IT projects – Opera conversions and associated programs (planned for fall 2013)

• Digital Signage – digital signage for lobby and conf. spaces fro guest communications

• Lighting Upgrades – finish interior lighting conversions, continue exterior lighting additions

• Planned Projects continued

• Resort Infrastructure Projects – various HVAC replacements, 402 guest home windows, JRGB HVAC work

• Golf Infrastructure – replace River Course irrigation pumping system and transfer pumps

• Environmental Projects – erosion repairs at Woods Course, complete Wareham’s pond dam repairs

• River Walk Project – design river walk and boardwalk from River Pool, River Cottages and 18th hole cart path to marina

2012 Condo Projects

• 2012 Condo Improvements by Resort

• Upgrade of Condo TV Service – converted TV service from analog signal to digital signal with HD service and added channels including Golf Channel and others

• Upgraded Internet Service in Condos – installed fiber optic backbone to 17 buildings, upgraded wireless hardware in rooms to commercial grade, switched support service to Global Gossip from Ethostream (doubled bandwidth and significant speed increase)

• Onity Key System Upgrade – hardware and software upgrade of room key system (underway now)

2013 Condo Projects

• 2013 Condo Improvement Plans

• Proposed Condo Exterior Lighting Conversions – convert stairwell and entrance door lights to LED, proposal submitted to Associations for approval (LED drastically reduces flying insects around lights for guest quality improvement, energy savings for Associations)

• Condo Window Replacements – resume window replacements in condos, owners to be notified for approvals

• Continue Wireless Internet Upgrades – continue installation of wireless access points and Global Gossip conversion from Ethostream in remaining buildings

• Onity Security Upgrade – electronic board replacements in all room door locks, cost is $12.50/door (charged to owners)

• Soft Goods Renovation – planned for early March

2012 and 2013 Condo PMs

• Complete 2012 Fall/Winter PMs – 24 buildings are

complete, 11 remaining to be completed by Spring Break

• Includes bi-annual HVAC service

• Lighting retrofits (one time)

• 2013 Fall/Winter PMs – PMs start in October 2013

• Includes bi-annual dryer vent cleaning

• Includes bi-annual chimney cleaning

Prevailing rate in 2013 for maintenance work will remain at $40/hr. for general

maintenance and $50/hr. for skilled (electrical and HVAC) maintenance

Gary Raymond

Winding Road Development

Kingsmill Real Estate Update

Cottages on the James

70 Site Plan

Pools with Model Cottage in Background 71

Model -

Burwell’s Bluff Homes

Location Plan

Burwell’s Bluff Site Plan

Burwell’s Bluff Cardinal

Three Bedroom – 2,262 Square Feet

Burwell’s Bluff Cardinal

Three Bedroom – 2,262 Square Feet

Cardinal - Floor Plan

Three Bedrooms 2,262 Square Feet

Burwell’s Bluff Eagle

Three Bedroom – 2,582 Square Feet 80

Burwell’s Bluff Eagle

Three Bedroom – 2,582 Square Feet 81

Eagle - Floor Plans

Three Bedrooms – 2,582 Square Feet 82

Burwell’s Bluff Heron

Four Bedrooms – 2,782 Square Feet

Heron - Floor Plans

Four Bedroom – 2,782 Square Feet 85

Burwell’s Bluff Osprey

Four Bedroom – 3,290 Square Feet

Front Elevation

Rear Elevation

Osprey - Floor Plans

88 Four Bedrooms – 3,290 Square Feet

Open House

From 12:00 to 6:00 PM

Or drop by the sales center in the Resort

Center open 9:00 AM to 5:00 PM daily

Leanna Williams

Kingsmill Resort

Development

Lisa Gero

Kingsmill

Realty

Michael Shannon

Soft Goods Upgrade

Status of 2015 Contract

Status of Soft Goods Renovation

• The Original Target Start Date was Monday, February

25th, 2013

• Delay with Fabric from one Vendor has pushed back

Schedule Three Weeks

• Units will not be taken out of Inventory over Spring Break

• Be sure to contact Anicio Holmes-Brown Regarding your

Options for Furniture Removal

Status of 2015 Contract

• Current Contract Expires November 30th, 2014

• New Contract Will be Presented at Next Years Rental

Participants Meeting

• Nine Months Before the Existing Contract Expires

Robin Carson

Dominion Power Update

Questions and Answers

2013 Rental Participants Meeting - Kingsmill Resort · Group Recap . 2012 Year End Revenue Review...

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