ANNUAL REPORT 2015

LETTER FROM THE CHAIRMAN LETTER FROM THE PRESIDENT

It is my pleasure to introduce the Breckenridge Tourism Office (BTO) 2015 Annual Report. It highlights key milestones and achievements that our organization accomplished this past year. Speaking on behalf of the entire Board of Directors, we are very proud of how the BTO has evolved as a destination marketing organization, and more importantly—what it has achieved on behalf of our community. Most notable is the increase in net taxable sales revenue, up nearly 10%* from 2014. We continue making good progress per our Strategic Plan, and remain bullish regarding Breckenridge’s future as a premier, year-round destination. The BTO is well-positioned financially, and we continue to further establish our role as a tourism industry leader. We are a strong partner with our Town Council, Breckenridge Creative Arts, Breckenridge Heritage Alliance, Breckenridge Restaurant Association, Breckenridge Lodging Association, and many other important business groups.

The BTO is fortunate to have a very strong and dedicated Board of Directors, a very committed and proactive management team, along with a very engaged and welcoming community. Breckenridge locals are such an integral part of what makes the ‘Kingdom’ such a consistently desirable destination—thank you all for your part in this.

We look forward to much continued success for Breckenridge!

Richard SosvilleChairman, Breckenridge Tourism Office Board of Directors

On behalf of the entire team here at the BTO, thank you for making our jobs so rewarding. We are charged with inspiring destination guests to visit Breckenridge—one of the world’s most special places, made such by the community’s dedication and welcoming spirit. People come here for the magnificent scenery and recreational opportunities, our casual outdoor lifestyle, and most of all, our local vibe. They keep coming back for more of our authentic experiences, genuine hospitality, and to foster the new friendships they’ve discovered.

You will see solid year-over-year growth in our metrics highlighted on the following pages. We work in very close collaboration with the Town of Breckenridge, Breckenridge Ski Resort, Breckenridge Creative Arts, Breckenridge Heritage Alliance, as well as many local business partners to achieve this growth. We are collectively successful in attracting the right guests at the right time. Our repeat visitor business is a testimony that our community delivers well on guests’ expectations.

Tourism matters in this wonderful town. We all work hard at it. We all benefit. Thank you for your commitment to our community’s success!

Lucy KayCEO/President, Breckenridge Tourism Office

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2015 BRECKENRIDGE TOURISM OFFICE BOARD OF DIRECTORS

ChairmanRichard “Sos” SosvilleRetired, CMO, Dow ChemicalTerm through 6/10/17

Vice ChairRob NeylandPartner/Associate Broker, Breckenridge Associates Real EstateTerm through 6/8/16

Secretary/TreasurerJeff CospolichVP/General Manager, Great Western LodgingTerm through 6/10/17

Town Council RepresentativeWendy Wolfe Town Council appointed through 4/2016

Breckenridge Ski Resort RepresentivePhillip “Phil” MetzDirector of Marketing, Breckenridge Ski ResortBreckenridge Ski Resort appointed

Dick CarletonManaging Partner, Storm RestaurantsTerm through 6/8/16

Bruce HoriiDirector of Sales & Marketing, Beaver Run ResortTerm through 6/8/16

Steve LapinsohnOwner/Breckenridge Ski EnterprisesTerm through 6/8/16

Ginny ViettiVice President of Marketing, Breckenridge Grand VacationsTerm through 6/10/17

2015 BTO Board of Directors (L-R): Dick Sosville, Erin Gigliello (2016), Ginny Vietti, Wendy Wolfe, Jesse Keaveny (2016), Jeff Cospolich, Rob Neyland, Dick Carleton, Lucy Kay (BTO CEO/President), Bruce Horii; not pictured: Steve Lapinsohn, Phil Metz

The Breckenridge Tourism Office is the official destination marketing organization for the Town of Breckenridge. Our Mission is clear: Enhance the economic vitality of Breckenridge…in support of the Community’s unique character and quality of life.

OUR MISSION

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2015 BRECKENRIDGE TOURISM OFFICE MANAGEMENT

President/CEOLucy Kay

Director of Operations/Business AnalystBill Wishowski

Director of MarketingScott Fortner

Director of SalesDonna Horii

Director of EventsSandy Metzger

Director of Business ServicesJennifer Morgan

Director of AccountingCindy Yarmowich

Executive Assistant/Office ManagerDeb Neyland

Public Relations ManagerRachel Zerowin

Marketing ManagerSteven Stoker

Content Marketing ManagerJessie Unruh

National Sales ManagerStacy Long

Events ManagerGavin Dalgliesh

Welcome Center ManagerJessie Jones

Welcome Center ManagerBeth Brennan

Sales/Service CoordinatorMichael Ellen Neff

Special Events Coordinator/ Permit AdministratorSydney Schwab

BRECKENRIDGE WELCOME CENTER STAFF

Kate Christopher Priscilla LarsonBecca PechinskiMegan PiersonSharon Trumbore

2015 BTO Management (L-R): Jessie Unruh, Donna Horii, Cindy Yarmowich, Rachel Zerowin, Jennifer Morgan, Sandy Metzger, Bill Wishowski, Jessie Jones, Deb Neyland, Scott Fortner, Lucy Kay, Michael Ellen Neff, Steven Stoker, Sydney Schwab, Gavin Dalgliesh

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BRECKENRIDGE EVENTS COMMITTEE (Town/Community Committee)

BTO Board Representatives: Dick Carleton (Committee Chairman)

Town Council Representative:Wendy Wolfe

Breckenridge Creative Arts Representatives: Saam Golgoon, Heather Pease

Breckenridge Ski Resort Representatives: Jordan Cole-Rehfeldt, Peter Osorio

Town of Breckenridge Representative: Kim Dykstra

BTO Staff: Gavin Dalgliesh, Lucy Kay, Sandy Metzger, Sydney Schwab

2015 BRECKENRIDGETOURISM OFFICE COMMITTEES

Business Services Committee Chairman: Kathy Christina Erin GiglielloCorry MihmBTO Board Representatives: Bruce Horii Steve Lapinsohn BTO Staff: Lucy Kay Jennifer Morgan Bill Wishowski Finance Committee Chairman: Jeff CospolichVice Chair: Rob Neyland Lisa GamberMark Martin-WilliamsBTO Staff: Lucy Kay Cindy Yarmowich

Marketing Committee Chairman: Ginny Vietti BTO Board Representatives: Jeff Cospolich Richard Sosville Morgan BastChristine Berwyn Lisa CheekDelia DeocampoJames LeeJulie RathkeBTO Staff: Scott Fortner Lucy Kay

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“One Breckenridge” Guest Service Training

In the fall of 2015, various members of the community convened with the goal of forming a town wide guest service program. This steering committee has identified the areas of guest service that are most important to our guests. Thinking “more with less”, the first phase of “One Breckenridge” focused on training the trainers. In December, the first Guest Service Influencer (GSI) training class was conducted. The goal of providing trainers of organizations with the skills to create their own training programs or to supplement existing training efforts has been realized in a very short time. As a result of these early successes, the GSI group is guiding the next phase of the “One Breckenridge” service program into 2016.

BUSINESS SERVICES2015 was a year of growth in the Breckenridge business community. The quantity of new businesses and the relative tax growth in retail, restaurant, lodging and total tax dollars tells a positive story for Breckenridge’s future.

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Business Benefits

The Breckenridge Tourism office invests in a variety of research initiatives to be shared with the community, including demographic information and occupancy data. Additional benefits include weekly newsletters, a robust Business Directory and Ribbon Cuttings.

Small Business Saturday in Breckenridge

For Small Business Saturday on November 28, 70 retail locations hosted “Ticket to Breckenridge,” a shopping event spearheaded by the owners of Young Colors. With more than 5,000 entries, the event was a success for business owners as well as guests, and it proved to be one of American Express’ Small Business Saturday’s biggest events in the United States.

Block Parties in the Historic District

To facilitate discussion and collect feedback from local retailers, the Business Services department started the “Block Party” initiative and met with retailers block by block over a period of time. The high participation uncovered key insights such as optimum business hours as well as partnership and promotional opportunities, resulting in the highly successful American Express Small Business Saturday.

HiddenTreasuresOf Breckenridge.com

The BTO assisted several local businesses in building Hidden Treasures of Breckenridge, a website highlighting tourism-based merchants off Main Street. The site is one example of the many opportunities offered by BTO for businesses to connect with consumers and fellow retailers.

Vendor Day

Twice annually, the BTO conducts “Vendor Day,” a structured opportunity for activity vendors to interact with local concierges and the Welcome Center team. Well-received by attendees and vendors, the new format included panel discussions, each with 4-8 vendors answering consumer-sourced questions.

BUSINESS SERVICES

MARKETING

Goal: Attract destination guests and benefit the tourism community

Right message, right customer, right time Our formula for success included programmatic targeting, data research, paid social and marketing intelligence. Improving technology allowed us to better reach and engage audiences through:• Programmatic targeting• Paid social• Long lead media coverage• Native advertising, including travel resource websites• Social influencers

Tourism Indicators: Yearly results ‘14 vs ’15

^ 3% ”Breckenridge” Keyword Search

^ 55% Web Traffic Counts

^ 5% Advertising Engagement / Interaction

^ 83% Video Views

^ 40% Social Engagement

Forbes: Best Spring Skiing 2016

USA Today’s 10 Best: 10 Best U.S. Destinations for Introverts

Single Track: Top 10 Mountain Bike Destinations, As Chosen by the People

Country Living: 19 of the Best Fall Festivals to Celebrate the Season

Travel + Leisure: America’s Best Towns for the Holidays

The Active Times: Top Cross-Country Ski Destinations Around the World

Jet Setter: #7: 9 Ultimate Weekend Road Trips

USA Today Travel: Ski County’s Best Craft Beer and Spirits Destinations

Wall Street Journal: Snow Cycling in Colorado Ski Country

Destination Recognition

Created translated landing pages and blog content for international visitor

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Winter Marketing Highlights

Winter marketing centered on a brand video featuring user-generated photos and videos. BTO web content saw the largest number of visits ever in 2015—up 25% to the previous year—due to the strong digital advertising campaign and mobile optimization. We continued our always-on display advertising strategy in travel resource sites such as Expedia and TripAdvisor.

Winter web traffic

+16% to 2014

International Winter HighlightsThe BTO worked with agencies to develop targeted campaigns in UK and Mexico.

Facebook ads

in MEXICO reached

1,327,512 usersand generated

41,759 web clicks

Facebook promotion

in UK reached

270,000 usersand generated

3,066 email opt-ins

Worked with UK-based agency Digital Visitor on a giveaway campaign to increase awareness and gather customer data in the UK; reached

250,000 users and generated thousands of email opt-ins

International Summer Highlights

Summer international is a new focus primarily driven by Public Relations

Participated in an international co-op with Brand USA featuring programmatic display advertising and sponsored content on both TripAdvisor and Expedia; markets included Mexico, UK and Germany

Partnership with the Colorado Tourism Office drove an additional 218,000 views of our brand

video, at a cost of less than 2 cents per view.

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Summer Marketing Highlights

The campaign included rich media display and pre-roll targeting audiences interested in road biking, mountain biking, craft beer, dining, adventure and more.

Summer web traffic

+36% to 2014

“Summer Breckenridge” related keyword searches were + 5% to 2014

The 2015 summer campaign featured a full-screen takeover that delivered the highest reach and engagement of any BTO ad to date.

Worked with LMG Management, our German PR agency, to translate landing

pages and run Facebook ads that reached 547,842 users and generated more than

8,700 web clicks

Fall tactic: Influencer Program

• Hosted five highly-targeted influencers— empty nesters, young families, solo adventurers, and women’s travel—who created audience-specific content

• Amplified the discussion with promoted posts and a sponsored Twitter chat

• Additional benefits: best practices, evergreen content, bonus editorial

“Fall Breckenridge” related keyword searches were + 3% to 2014

Fall MarketingHighlights

We increased budget and content creation for fall 2015 and saw a 5.5% increase in September-October occupancy. Messaging focused on the fall events lineup and initiatives included:

• Psychographically targeted media buy

• Native partnership with AFAR

• Influencer program

Sponsored AFAR content included a live Pinterest campaign, custom web articles, photo

slideshows and email blasts. The initiative created an in-depth relationship with the millions

of AFAR readers and contributed to the 27% increase in web traffic.

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Pre-Holiday Marketing Highlights

The pre-holiday campaign focused on filling the December 1 – 20 need period and highlighted the charming, holiday-themed experience guests can have prior to peak season pricing and crowds.

Pre-holiday web traffic +11% to 2014

“Pre-Holiday Breckenridge”-related keyword searches +11% to 2014

Breckenridge Ski Resort/BTOMedia Partnership

The BTO partnered with Breckenridge Ski Resort by executing complementary media efforts in two major growth markets—Austin and Philadelphia. This generated a 7.7% increase in BTO web traffic from Austin. We also saw 4,000 conversions (clicks to lodging-related pages or “intent to book” indicators from OTA partners) from display and Facebook advertising, as well as 95,000 video views from people in both cities.

The media buy included short, targeted videos on social media, including YouTube pre-roll,

and generated

over 25,000 conversions (clicks to our landing pages).

Highlights

• Began international PR efforts with agencies in UK (McCluskey International) and Germany (LMG Management)

• UK media hosted included The Independent, The Mirror and Daily Mail. Coverage highlighted wellness, events and activities

• German media hosted included niche fishing and hiking publications. Coverage focused on general summer/fall and events including BIFA and Oktoberfest

• Executed large-scale influencer program integrated with highly successful PR pitching and broadcast opportunities, all in support of fall need period

• Fall coverage highlights included The Weather Channel 3-hour live broadcast featuring fall colors, dog scootering, biking, cocktails, dining and other town segments; Country Living, MSN, Liftopia, Delish, SkiNet, House Beautiful and others

• Sourced long lead winter features and key market content in Nashville Lifestyles, Points North (Atlanta) and Atlanta-based fashion, food and family blogs; fat biking coverage in Boston Globe, New York Times, 5280, Dallas Morning News and more; winter coverage in Houston Chronicle, About.com, Chicago Tribune, and Fox News

• Sourced long lead summer coverage in Outside, Jetsetter.com, The Tennessean, The Points Guy and more; broadcast coverage in LA, New York, Sacramento, San Diego and others; Peter Greenberg live broadcast from Breckenridge

Focus: Generate media coverage about Breckenridge through proactive initiatives including targeted pitching, influencer tours, media hosting, strategic content/message development and visits to key markets

PUBLIC RELATIONS

2,072,176,570 Impressions

+7.7% to 2014

Hosted 76 media

+8.6% to 2014 15

EVENTS

RIGHT EVENT RIGHT TIME RIGHT RESULT

The BTO produces events to deliver on key marketing strategies; primarily media coverage, iconic branding, revenue drivers, and local/guest experience and animation. We maintain the community-wide events calendar and deliver BTO produced special events appealing to a diverse audience, targeting need periods, and striving to attract business to all parts of town.

2015 BY THE NUMBERS

$593,155Event and Sponsorship Revenue

958,304,813Event-driven media impressions *BTO Sourced Only

135,790 Estimated AttendeesLocal/Guest Experience and Animation

Revenue Drivers – events geared to driving revenue during need periods, (media value, and animation are cross-over value)

Oktoberfest • Breckenridge’s Main Street converts to a mini-Munich to host the annual event• Event revenue of $429,399• Event Attendance – 44,000• Signature Sponsors: Paulaner, Breckenridge Brewery, Colorado Lottery, Basecamp Liquors/Liquor Limo, Jagermeister , Republic National Distributing and Colorado Health Op

$2,068,815 economic impact (Source: Intercept Insight)

Spartan Race• New Event for 2015 – Obstacle Race• Collaborative effort between Town, BTO and Ski area to fill a need period in early June

5,200entrants

Media Coverage – event value determined primarily by media coverage, (revenue driver, iconic branding and animation are cross-over value ) Budweiser International Snow Sculpture Championships

3,548,585 paid media impressions• Unique outdoor gallery of snow sculptures hand carved by teams from around the world• Web Impressions – 259,512,067 – Notable coverage included: Time Magazine, HGTV.com, Chicago Tribune and Dallas Morning News. ** All Media Sources• 45,000 attendees• Webpage – Snow Sculpture most trafficked page on GoBreck website – 58,000 unique visitors• Signature Sponsors : Budweiser, Kaiser Permanente, Summit Express, Columbia, Mountain Light, Breckenridge Grand Vacations, Xfinity, Breckenridge Lodging and Restaurant Community

USA Pro Cycling Challenge• 2 stages (Finish and Time Trial)

1,250ft. long shot ski

Iconic Branding – events designed to showcase the character of Breckenridge (media value, animation are cross over value)

Ullr Fest• Week-long celebration to the Norse God of Snow – festivities include: Ullympics, Shot Ski, Crowning of Ullr King and Queen, Parade, Bonfire, Comedy Show and Breck’s Got Talent• Shot Ski Statistics: 777 Shots, 259 Skis, 1,250 feet long – Event broadcast live on The Weather Channel• Signature Sponsors include: Bud Light, Woody Creek, Kahlua and Borealis Kingdom Days• Celebration of the heritage of Breckenridge• Outhouse Races – 2,000 + spectators lined the street to watch Outhouses on wheels racing down Ridge Street

Guest/Local Experience and Animation events geared toward providing animation for locals and guests already in town (media value, revenue driver are cross over value)

July 4 Parade • Old Fashion Fourth of July with Parade (75 parade entries), Concert, Kids Activities and fireworks• Attendance for Parade in excess of 20,000

Lighting of Breckenridge/Race of the Santas• Santa Claus arrives in style to light the Town Tree/Holiday Lights and kick off the season• Over 350 Santas race down Main Street to raise over $3,500 for local charity “Adopt an Angel”

Breck Bike Week• Collaboration with Specialty Sports to promote and showcase Breckenridge bike culture• Events offers women’s clinics, group rides, bike demos, strider course and more —all events are free

These are just highlights, the BTO produced or was involved with over 30 local events in 2015. We work closely with the Breckenridge Ski Resort, BreckCreate and other event producers in the community to ensure cohesive scheduling, marketing, and event logistics planning

In 2015, the BTO took over the SEPA (Special Events Permit Application) from the Town of Breckenridge and processed over 80 event permits

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SALES

Focus: The BTO Sales department is actively marketing and promoting Breckenridge as a premier meeting, conference, and group travel destination. We actively target groups that meet in the spring and fall to assist in filling the need periods. We have consistently worked on providing elevated guest services to our meeting and conference attendees.

Our sales team works to bring together all of the components: lodging, town, ski resort, and the arts and cultural aspects. By providing a greater level of conference services to attendees, we increase their experience, generate more return visits, and work to strengthen the town product!

Sales Highlights and Successes

• Awarded the 2015 Colorado Meetings & Events Magazine Reader’s Choice “Best of ” Destination Management Organization

• Won the bid to host the 2016 annual Colorado Governor’s Conference on Tourism, providing the opportunity to showcase Breckenridge, the town, the people, and our Arts and Cultural District to over 300 of the most influential people in the state’s tourism industry

• Secured new conference for early June to fill a need period, the Success at the Summit, June 9 – 11, 2016, being held at Beaver Run Resort and Conference Center

• Hosted the Fourth Annual Breckenridge Bridal Bash! Showcasing Breckenridge as a premier Destination Wedding Location, securing sales from 95% of attendees

• Provided services for over 20,000 conference attendees in town

• Sales Missions: Denver, Colorado Springs, Fort Collins, Boulder, Northern California, Dallas and Chicago

• Hosted 8 clients during the International Snow Sculpture Client Event

• Meeting Industry Shows attended and exhibited at: Meetings Industry Council (MIC); CSAE Annual; Destination Colorado Front Range Trade Show; University of Colorado Trade Show; Destination Colorado Road Shows in Dallas and Northern California; Colorado Association of Non Profit Organizations; and IMEX

2015 WEDDINGS

$500,000 in lodging revenue

Generated almost $500,000 in lodging revenue, down from just over $1m in 2014 (approx. 3300 room nights in 2015; 7,700 in 2014)

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Continued Programs

• Conference Services continuing to improve, working with groups on teambuilding, group activities, group dining, scavenger hunts, and more

• Group Welcome/Discount program offering discounts to meeting attendees and providing welcome signs in storefront windows by increased number of participating merchants

• Quarterly Group Sales Meetings in Breckenridge bringing together key players in town involved with group sales and educating all on unique venues and alternative group options, i.e. teambuilding activities, arts and cultural events and venues

• Quarterly Wedding Professionals Meeting bringing together the Wedding Professionals in Breckenridge for networking and to make Breckenridge the premier wedding destination

• Quarterly newsletter distributed to all meeting planner, tour operators and travel agencies in our database—approx. 5000

• Offering information booths at registration areas for groups in house with town information, i.e. restaurants, retail, activities, and happenings in town

• Updates and upgrades to our website pages for Meetings and Group Planners

2015 Meetings and Conferences

+$1,140,000 from 2014

Over $2 million in lodging revenue alone, up from $860k in 2014 (approx. 13,500 room nights in 2015, up from 5,700 in 2014), estimating well over $5m in economic impact. The Spartan Race and increased college ski groups are reflected in these numbers.

WELCOME CENTER

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The Welcome Center Lobby remodel and the installation of new building signage were Breckenridge Welcome Center highlights in 2015. The enhancement of signage on all entry locations of the building highlighted Breckenridge’s heritage to boost visibility of the Welcome Center and Museum. The lobby remodel increased the active floor space of the center, positioning the team for stronger visitor engagement while maintaining the unique historical surroundings of the Welcome Center.

The Welcome Center experienced 342,855 visitors in 2015; over 60,000 more visitors than in any previous year. During the summer season, approximately one-third of our visitor interactions include inquiries on hiking and bicycling trails. Inquiries related to general town information and restaurant/dining inquiries each represent approximately 15% of the visitor interactions. Approximately 20% of the winter season visitor interactions involve restaurant/dining inquiries. The winter visitor inquiries related to outdoor activities other than skiing were the second most popular interaction closely followed by general town information, and each represents nearly 16% of the visitor interactions.

The Welcome Center’s location in the heart of town and adjacent to both the Riverwalk Performing Art Center and the Cultural Arts District provides a place for relaxation, information, relief and shelter from the elements. In addition to the free visitor information and museum; the Welcome Center team is positioned to assist the visitor with booking activities, lodging, historical tours, concerts and events.

2015 Revenue: $149,796

+12% to 2014

2015 Visitation: 342,855

+23% to 2014

2015 BUDGETED REVENUE

2015 BUDGETED EXPENSE

FINANCIALS

2015 BUDGETED REVENUE Town of Breckenridge 81% $3,848,650Special Events 10% $450,000Breckenridge Ski Area 4% $150,000Welcome Center Sales 4% $162,350VR Profit Share 1% $83,000Misc. Income 0% $800OTA/MKT Surcharge 0% $54,000Advertising Co-op 0% $13,000Membership 0% $12,473Sales 0% $0

TOTAL BUDGETED INCOME $4,774,273

2015 BUDGETED EXPENSE Marketing/Internet 43% $1,935,656Special Events 18% $836,528Sales/Group 7% $324,438Welcome Center 8% $346,908Public Relations 8% $330,490Administration 13% $595,369Business Services 2% $114,896Cen Res 1% $64,867

TOTAL BUDGETED EXPENSE $4,549,152

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2015 ACTUAL REVENUE

2015 ACTUAL EXPENSE

2015 ACTUAL REVENUE Town of Breckenridge 79% $3,848,650Special Events 11% $539,155Breckenridge Ski Area 3% $150,000Welcome Center Sales 3% $149,665VR Profit Share 2% $110,053Misc. Income 0% $7,055OTA/MKT Surcharge 2% $85,333Advertising Co-op 0% $16,542Membership 0% $6,149Sales 0% $0

TOTAL ACTUAL INCOME $4,912,602

2015 ACTUAL EXPENSE Marketing/Internet 45% $2,037,722Special Events 19% $876,743Sales/Group 7% $322,264Welcome Center 8% $372,730Public Relations 9% $377,611Administration 8% $346,837Business Services 3% $114,748Cen Res 1% $59,551

TOTAL ACTUAL EXPENSE $4,508,206

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