Dec. 14th Board of Directors Workshop
RSCVA Strategic Plan
12.14.06
Board Workshop
Meeting Notes
Group Input Exercise on RSVCA Core Services and Budget Allocation Percentage
Non-Fixed Costs Current % Group Input % Facility Operations 41.8% 13.6% Golf Operations 11.9% 0% Special Events 1.9% 15.5% Convention Sales 17% 35.5% Tourism and Marketing 15% 29.1% Room Tax Collections 1.7% 1.8% General and Administration 0% 1.8% Visitor Centers/Services 0.7% 2.7% Draft Planks:
Based on public meetings following are the recognized key issues that the RSCVA Strategic Plan will focus on as well as some example measures of success.
Increase Convention Sales and Marketing – Top priority to sell destination as place to do business (i.e. conventions, tradeshows and meetings), while also leveraging the group facility assets to book maximum hotel room nights.
Sample Measures of Success:
Immediate
· Achieve or exceed convention sales goals for the RSCC, REC, RSLEC and NBS
Beginning 2009
· Book one RSCC city-wide event per month
Increase Tourism Sales and Marketing – Increase individual traveler and group traveler business for Reno-Tahoe by marketing regionally, nationally and internationally.
Sample Measures of Success:
· Achieve or exceed Travel Industry Sales goals
· Develop a 10 year plan for International tourism marketing
Develop Capital Improvement Program – Create a reasonable phased capital improvement plan for the RSCVA owned facilities to ensure they remain safe and competitive with industry standards.
Sample Measures of Success:
By 2011
· Establish an annual capital budget allocation of 1% of the insured value of the facilities that can be used each year for the highest priority capital expenditures
· Establish a capital reserve of .5% of the insured value of the facilities that is available to address emergency and unforeseen but essential capital improvements
Efficiently Manage Assets – Increase facility occupancy levels at competitive rates, while simultaneously focusing on efficient operations, to reduce facility subsidies and maintain high quality operations and service, and ultimately increase bottom-line revenues.
Sample Measure of Success:
Immediate
· Strong customer satisfaction ratings for each facility
By 2009
· Reduce subsidy percentage for RSCC
· Eliminate subsidy for golf properties
Develop Special Events Funding Philosophy – Develop and implement a reasonable special events philosophy and funding system that ties to increasing room nights and ADR and/or measurably increases brand awareness and propensity to visit Reno-Tahoe.
Sample Measures of Success:
Immediate
· Establish consistent funding levels with the RSCVA budget
By 2008
· Develop a special events network resource that will assist special events with technical advice/assistance and establish a special events community committee that will meet monthly to discuss issues.
Address Average Daily Rate – Hold educational activities and provide occupancy tools which will help area hotel properties make wise pricing decisions. An increased ADR will positively impact the RSCVA budget providing increased dollars to sell and market the destination and enhance the customer perception of Reno-Tahoe, as well as make it possible for area properties to continue to renovate/expand, and increase the likelihood of attracting traditional national convention business brand hotels to the marketplace.
Sample Measures of Success:
Immediate
· Annual ADR increase for cash occupied rooms
By 2009
· Annual ADR average at least mid range with competitive convention cities and approaching the Federal Per Diem reimbursement rate for Reno-Tahoe
Discussion:
Group A
· Golf – How do we get out of it? Political ramifications? Who owns them? RSCVA does not own the land at Northgate, but does at Wildcreek.
· Convention Sales – Depends on how effective Ellie’s team and individual hotel sales teams are … must start showing results.
· Do we have enough quality rooms?
· ADR – stop giving it away. Reminder – it’s not our choice and not that easy to just raise the ADR.
· Lift – need more options for flights.
· Capital improvements – RSLEC must be renovated quickly. Must come up with a capital improvement program.
Group B
· ADR – We must make it a top priority. Ellie being new must preach to the operators that we have got to change it. Can’t have collusion in pricing. If everyone went back and increased all rates by $5 – if we all did it – our competitive edge would not change against each other – our competitive advantage to other cities would still be lower, but an impact to the RSCVA bottom-line would be tremendous.
General Feedback:
· Reno-Tahoe, America’s Adventure Place – Silver Legacy is going to open the Adventure Desk, a place where people can find out about other activities available in the market.
· Research? Has there been any to validate that it is working? Men’s Journal indicated our destination was the #2 best adventure destination. Giving us an umbrella that is working and we are now evolving it to apply to the meetings & convention market. How do we make the connection between the adventure destination and meeting destination? Just starting to get traction. We should be sensitive to not changing the brand at this time.
· NCOT – micro study of the city of Elko – the outdoor adventure is the competitive advantage. They have proven that there are positive impacts associated with the change in how they market the destination capitalizing on the outdoors.