Vail Resorts

EpicMixNovember 2, 2011UWSMCCharlie Mayfield

Vail Resorts Publicly Traded Corporation

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Revenue Sources

63% Mountain Operations

18% Lodging

19% Real Estate

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Leisure Travel Sees New Channels of Distribution

Booking curve MUCH closer in On line bookings from many suppliers

Travel agents long gone

Close in deals to generate reservations

Public PERCEPTION of snow conditions a

KEY decision making factor for snowsports resorts

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Cancelled $M’s of ads in national publications Conde Naste Traveler, Outside, Travel & Leisure, Ski, GQ,

Mens Health, Rolling Stone, etc.

Combined advertising, pr, and social media to develop coordinated content across multiple channels

Goal to constantly engage skiing enthusiasts in real time

2009 Vail Abandoned 80% of Traditional Advertising And Went Online

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2010/11 Introduces EpicMix

RF chip embedded in all tickets & passes

RF reader terminals installed at base of all lifts at all resorts

EpicMix allowed a rider to track lift rides and vertical feet ridden at all resorts

Earn “badges” for achieving various on-mountain activities & challenges

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Access & Share Lift Ride Info In Real Time

EpicMix pages, Facebook, smart phone apps 290,000 guest posts to Facebook

Friends Tracker - Where are your friends?

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EpicMix Member Page

EpicMix Has A HUGE Technological Cost

RF reader “archways” at each lift and other various on-mountain landmarks at 6 individual resorts

Data from all RF source points collected and consolidated

On a busy day there could be over 100,000 combined users

Data for each individual sourced and uploaded into individual EpicMix accounts in real time

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Some Other Ski Resorts Use RF Ticket Technology, But Only For Lift Access

No one else has invested in an infrastructure like EpicMix

Proprietary software

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RF Technology Differs From GPS - Based Technologies Like Foursquare

No “opt-in” process required

With RF, everyone is scanned, but only some their access data

200,000 EpicMix members 2010/11 10% - 15% of all guests

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Other 2010/11 Social Media EpicMix Programs

YouTube video contest - $10,000 1st prize Viewers voted for their favorites

Marty Lempkin info-mercial parodies on YouTube

EpicPass infomercial 22,000 views

Goal was to “Keep The Buzz Going”

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2011/12 New Features Enable

Guests To Visually Share Their On-Mountain Experience

VR eliminated traditional on-mountain commercial photo service

VR added 200 new staff photographers at the 6 resorts

Cameras w/ RF connections linked photos to servers and then to each ticket holder’s on-line account(s)

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Guests Can Now Share EpicMix Information & Photos On Sites Like:

- Facebook - Twitter

- Flickr - Snapfish- Shutterfly- iPhone & Droid apps

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EpicMix Website Greatly Expanded

“Buzz” The Buzz Team blogs, Tweets and posts

photos and videos

“Epic Moms” Resort Blogs Customer Service & Comments Snow & weather reports

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Public Concerns

“They” always know where I went and when I went there

Will I be bombarded later with unwanted marketing messages? Will they share my data with 3rd parties? Can I really trust these guys?

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Question:

Is EpicMix an invasion of privacy, or does guest accept the program’s terms and conditions when he/she buys a pass or ticket?

Vail Resorts DOES allow a person to “opt out” of the program and not be tracked via RF if they so request

Its kind of a hassle, though

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Meanwhile, In The Back Room……..?????

EpicMix on-mountain activity data COULD be added to other customer information and purchase histories in the

CID - Customer Information Database Lodging

if booked thru Vail Central Reservations If staying at VR lodging property

Lift ticket purchases Equipment Rentals Lessons, programs, kids ski school Retail purchases (at VR shops) Food & beverage at VR establishments

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“Now They Know All About Me, AND They Have My Picture….!!!

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• How will/could this information be used?

“Ski Pass Defender”

RF-blocking ticket & pass wallet on sale at resorts to “maintain your privacy”!

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EpicMix Has Become A Great Social Media Tool

Real time information to customers 2 Way Interaction w/ Customers

Customer to customer communication

Customers to friends & family, others

Numerous Social Media platforms engaged

Ongoing word-of-mouth buzz

Customer perceived value of (free) EpicMix

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Sources http://www.snow.com/epic-pass/pass-benefits/epicmix.aspx http://www.vailfilmfestival.com/epicmix-contest/ http://buzz.snow.com/videos/buzz_videos/snow_squad/m/snow_squad/

7108.aspx?cmpid=SOC00267 http://mashable.com/2011/08/31/vail-epicmix-2-0/ http://en.wikipedia.org/wiki/Radio-frequency_identification http://mashable.com/2011/08/31/vail-epicmix-2-0/ http://www.fastcompany.com/1777286/why-vail-resorts-is-cannibalizing-its-p

hoto-business http://mtnweekly.com/vail-epic-mix-program-tracks-skier-movement-4309 http://www.contagiousmagazine.com/2010/08/vail_resorts.php http://news.yahoo.com/vail-resorts-adds-photo-features-epicmix-app-191509

666.html http://www.vaildaily.com/article/20110831/NEWS/110909999 http://www.skinet.com/skiing/resorts/2010/09/vail-resorts-announces-epicmix http://www.wired.com/playbook/2011/08/epicmix-lets-you-get-your-hero-on/ http://skipassdefender.com/ http://www.aspentimes.com/article/20110831/NEWS/110839965

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http://adage.com/article/about-digital/social-media-upends-ski-resort-marketing/140710/

http://onetoonetravel.com/vail-resorts-epicmix-and-the-social-networkification-of-skiing/ http://asalesguy.com/2011/03/21/vail-resorts-ceo-rob-katz-on-social-media-sales-and-

whats-changing/ http://www.dr4ward.com/dr4ward/2011/03/how-social-media-has-abruptly-dramatically-

changed-ski-resort-marketing-ceo-video.html http://digitalmarketing101.typepad.com/interactive/2010/03/social-media-for-a-ski-

resort.html http://www.thesnowway.com/2011/03/12/social-media-blogging-skiing http://business.transworld.net/62217/news/vail-resorts-announce-2010-2011-epicmix-

stats/ http://www.elliott.org/blog/can-social-media-improve-customer-service-vail-resorts-

discovers-the-answer-one-run-at-a-time/ http://visitbreck.blogspot.com/2011/04/201011-ski-season-closing-and-epic-mix.html http://mikethomastv.com/?p=4888 http://www.aspentimes.com/article/20110406/NEWS/110409926

Sources (2)

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