Viad Corp (VVI): Business Model Canvas [11-2024 Updated]
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Viad Corp (VVI) Bundle
Understanding the business model of Viad Corp (VVI) reveals how this dynamic company thrives in the tourism and hospitality industry. With a focus on unique travel experiences and comprehensive event management, Viad Corp has cultivated a diverse array of offerings that cater to various customer segments. From partnerships with local tourism authorities to personalized guest services, the company's strategic framework is designed to enhance customer engagement and drive revenue. Discover the intricacies of Viad Corp's Business Model Canvas below.
Viad Corp (VVI) - Business Model: Key Partnerships
Collaborations with local tourism authorities
Viad Corp engages in strategic partnerships with various local tourism authorities to enhance its offerings and attract more visitors to its destinations. These collaborations often lead to joint marketing campaigns and initiatives aimed at promoting local attractions. For instance, Pursuit, a segment of Viad, collaborates with tourism boards in Alberta and British Columbia, which have helped in boosting visitor numbers and enhancing brand visibility.
Partnerships with travel agencies
Viad Corp has established relationships with numerous travel agencies that facilitate the booking of experiences and accommodations. These partnerships are vital for driving customer traffic to Pursuit's attractions. In 2024, Pursuit reported a revenue increase attributable to enhanced travel agency partnerships, contributing to a 4.1% rise in overall revenue compared to the previous year, amounting to $320.7 million for the nine months ended September 30, 2024.
Alliances with hospitality providers
Viad Corp forms alliances with various hospitality providers to offer integrated packages that enhance the customer experience. This includes partnerships with hotels and resorts near Pursuit attractions. For example, Pursuit's hospitality revenue was reported at $131.2 million for the nine months ended September 30, 2024, showing stability despite a slight decline compared to the previous year. The collaboration allows for cross-promotional opportunities, increasing occupancy rates and overall visitor satisfaction.
Relationships with event organizers
Viad Corp maintains strong relationships with event organizers to host various events at its venues. These partnerships are crucial for driving traffic to GES, another segment of Viad. During the three months ended September 30, 2024, GES generated $94.5 million in revenue, a significant increase from the previous year, owing to successful collaborations with event organizers. These events not only provide a revenue stream but also enhance the overall brand presence of Viad Corp in the live event space.
| Partnership Type | Key Outcomes | Revenue Impact (2024) |
|---|---|---|
| Local Tourism Authorities | Enhanced visibility and visitor numbers | Not quantified but significant |
| Travel Agencies | Increased bookings and customer traffic | $320.7 million (overall revenue increase of 4.1%) |
| Hospitality Providers | Integrated packages and cross-promotion | $131.2 million (hospitality revenue) |
| Event Organizers | Increased event traffic and brand presence | $94.5 million (GES revenue) |
Viad Corp (VVI) - Business Model: Key Activities
Managing attractions and experiences
Viad Corp operates its attractions business under the Pursuit brand, which generated $182.3 million in revenue for the three months ended September 30, 2024. This represents a 2.5% decrease compared to the same period in 2023, primarily due to a decline in hospitality revenue driven by the impact of the Jasper wildfires.
The attractions segment saw an increase in visitors, with 3,130,570 visitors recorded in the last quarter, and an increase in revenue per attraction visitor of 4.2%. The FlyOver Chicago attraction contributed $3.3 million during the three months ended September 30, 2024.
Providing hospitality services
The hospitality segment reported a revenue of $79.1 million for the three months ended September 30, 2024, reflecting a 6.3% decline from the prior year. This decrease was attributed to a 13.6% drop in revenue per available room due to fewer room nights sold because of the wildfires.
Key performance indicators for the hospitality business include:
- Room nights available: 483,700
- Occupancy rate: 67.0%
- Average Daily Rate (ADR): $229.08
Offering transportation solutions
Transportation solutions under Pursuit generated $5.0 million in revenue for the three months ended September 30, 2024, showing a 10.0% decline from the previous year. The overall transportation segment has faced challenges but remains a critical part of the value proposition for visitors to the attractions.
Conducting marketing and promotional activities
Viad Corp engages in extensive marketing and promotional activities to drive traffic to its attractions. For the nine months ended September 30, 2024, total revenue from the Pursuit segment was $320.7 million, a 4.1% increase year-over-year, largely due to effective marketing initiatives.
The company has also allocated significant resources to digital marketing and partnerships to enhance visibility and engagement with potential customers.
| Key Activities | Revenue (Q3 2024) | Change (%) |
|---|---|---|
| Attractions Management | $182.3 million | -2.5% |
| Hospitality Services | $79.1 million | -6.3% |
| Transportation Solutions | $5.0 million | -10.0% |
| Total Pursuit Revenue | $320.7 million | 4.1% |
Viad Corp (VVI) - Business Model: Key Resources
Diverse portfolio of attractions
Viad Corp operates a diverse portfolio of attractions through its subsidiary, Pursuit. As of September 30, 2024, Pursuit generated revenue of $182.3 million from attractions, reflecting a 1.5% increase compared to the previous year. The total revenue for Pursuit in the first nine months of 2024 was $320.7 million, up 4.1% year-over-year.
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Attractions Revenue | $97,222 | $95,820 | 1.5% |
| Total Pursuit Revenue | $182,257 | $186,940 | (2.5%) |
Skilled workforce in hospitality and tourism
Viad Corp's success in the hospitality and tourism sector is largely attributed to its skilled workforce. As of September 30, 2024, Pursuit employed approximately 3,500 individuals, providing a range of services across its attractions and hospitality segments. The company's hospitality revenue was $131.2 million for the first nine months of 2024, with a slight decrease of 0.6% compared to the previous year.
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Hospitality Revenue | $79,059 | $84,345 | (6.3%) |
| Room Nights Available | 483,700 | 481,121 | 0.5% |
Strong brand recognition
Viad Corp benefits from strong brand recognition across its various attractions and hospitality services. This recognition has been instrumental in driving visitor numbers, with Pursuit attracting approximately 3.13 million visitors in 2024, representing a 4.6% increase from 2023. The effective ticket price for attractions averaged $43.71 in Q3 2024, up 6.7% from the previous year.
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Number of Visitors | 3,130,570 | 2,991,656 | 4.6% |
| Effective Ticket Price | $43.71 | $40.96 | 6.7% |
Financial assets for investment
As of September 30, 2024, Viad Corp reported total assets of $1.2 billion, with total stockholders' equity amounting to $189.7 million. The company had a total debt of $318 million related to its 2021 Credit Facility, bearing an interest rate of 9.1%. During the first nine months of 2024, Viad generated a net income of $60.5 million, reflecting a substantial increase of 53.8% compared to the previous year.
| Metric | Amount (in thousands) |
|---|---|
| Total Assets | $1,195,828 |
| Total Stockholders' Equity | $189,683 |
| Total Debt | $318,000 |
| Net Income (9 months 2024) | $60,499 |
| Net Income (9 months 2023) | $39,314 |
Viad Corp (VVI) - Business Model: Value Propositions
Unique travel experiences in scenic locations
Viad Corp's Pursuit segment offers unique travel experiences through attractions that highlight scenic locations such as national parks and urban environments. As of September 30, 2024, Pursuit reported a total attractions revenue of $176.6 million, reflecting an 8.5% increase compared to the same period in 2023. The number of visitors to attractions reached approximately 3.13 million, with ticket revenue amounting to $136.8 million. A new experience, FlyOver Chicago, which opened on March 1, 2024, contributed $3.3 million in revenue during its initial operational period.
High-quality hospitality services
Pursuit's hospitality services are characterized by high-quality accommodations and dining experiences. For the nine months ended September 30, 2024, hospitality revenue was reported at $131.2 million, with an average daily rate (ADR) of $229.08. The revenue per available room (RevPAR) for the same period was $153.41, and occupancy rates stood at 67.0%. Despite challenges such as the Jasper wildfires impacting room availability and revenue, the segment maintained a focus on quality service.
Comprehensive event management solutions
Viad Corp provides comprehensive event management services through its GES segment, which reported a revenue increase of $94.5 million for the three months ended September 30, 2024. This segment specializes in creating memorable events, with a focus on design, logistics, and execution. The total revenue for GES reached $375.2 million for the third quarter of 2024, indicating significant growth and a robust recovery post-pandemic.
Commitment to sustainability and community engagement
Viad Corp has made significant strides in sustainability, integrating environmentally responsible practices into its operations. As part of its Refresh, Build, Buy growth strategy, the company focuses on creating inspiring experiences while minimizing environmental impact. Notably, the company has recorded insurance proceeds of $3.8 million related to losses from the Jasper wildfires, underscoring its commitment to community resilience. Further, the effective tax rate for the nine months ended September 30, 2024, was 22.4%, reflecting the company’s financial strategy and responsibility.
| Key Metrics | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Attractions Revenue (in thousands) | $176,623 | $162,850 | 8.5% |
| Total Hospitality Revenue (in thousands) | $131,186 | $131,984 | (0.6%) |
| Average Daily Rate (ADR) | $229.08 | $217.09 | 5.5% |
| Revenue per Available Room (RevPAR) | $153.41 | $148.58 | 3.8% |
| Occupancy Rate | 67.0% | 71.6% | (4.6%) |
Viad Corp (VVI) - Business Model: Customer Relationships
Personalized guest services
Viad Corp focuses on delivering personalized guest services across its various attractions and hospitality segments. This includes tailored experiences that cater to individual preferences and needs. The company's commitment to customer satisfaction is reflected in its revenue performance, with hospitality revenue reported at $131.2 million for the nine months ended September 30, 2024, demonstrating a slight decrease of 0.6% compared to the same period in the previous year.
Loyalty programs for frequent visitors
The company has implemented loyalty programs aimed at encouraging repeat visits. These programs are crucial for enhancing customer retention and driving revenue growth. For instance, the number of visitors to Viad's attractions increased to 3,130,570 during the nine months ended September 30, 2024, representing an increase of 4.6% compared to the previous year. The effective ticket price for these attractions rose to $43.71, further indicating the success of these initiatives.
Active customer feedback mechanisms
Viad Corp employs active customer feedback mechanisms to gather insights on guest experiences. This feedback is essential for continuous improvement and adaptation of services. The company reported a net income of $60.5 million for the nine months ended September 30, 2024, an increase of 54.1% from the previous year. This growth can be attributed, in part, to the responsiveness to customer feedback and adjustments in service offerings.
Engagement through social media and email marketing
Engagement strategies via social media and email marketing are integral to Viad's customer relationship management. The company has leveraged these platforms to enhance brand visibility and foster community engagement. The total revenue for Viad Corp reached $1.1 billion for the nine months ended September 30, 2024, a significant increase of 16.9% from the previous year. This growth is reflective of successful marketing campaigns and effective customer engagement strategies.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | % Change |
|---|---|---|---|
| Hospitality Revenue | $131.2 million | $131.9 million | -0.6% |
| Total Visitors | 3,130,570 | 2,991,656 | 4.6% |
| Effective Ticket Price | $43.71 | $40.96 | 6.7% |
| Net Income | $60.5 million | $39.3 million | 54.1% |
| Total Revenue | $1.1 billion | $947 million | 16.9% |
Viad Corp (VVI) - Business Model: Channels
Direct bookings via the company website
Viad Corp has effectively leveraged its corporate website to facilitate direct bookings for its services. In the nine months ended September 30, 2024, the total revenue from the Pursuit segment, which includes direct bookings, was $320.7 million, reflecting a 4.1% increase from $308.1 million in the same period in 2023. This indicates a growing reliance on their digital platform for customer engagement and sales.
Third-party travel platforms
Viad Corp also utilizes third-party travel platforms to expand its reach. The Pursuit segment's attractions revenue was reported at $176.6 million for the nine months ended September 30, 2024, up from $162.9 million in the previous year. This revenue includes sales generated through partnerships with various online travel agencies, enhancing visibility and sales through these platforms.
Travel agencies and tour operators
Collaboration with travel agencies and tour operators remains a crucial channel for Viad Corp. The company has seen a 1.5% increase in attractions revenue, driven by strong visitor numbers totaling 3.1 million for the nine months ended September 30, 2024. This growth is indicative of successful partnerships with travel agencies that promote and sell Viad's offerings as part of larger travel packages.
Social media marketing campaigns
Social media marketing campaigns play a significant role in Viad's outreach strategy. The company reported a total net income of $60.5 million for the nine months ended September 30, 2024, an increase from $39.3 million in the same period of 2023. This growth is complemented by effective social media campaigns that drive traffic to their website and increase direct bookings.
| Channel | Revenue (in millions) | Growth Rate | Visitor Count (in millions) |
|---|---|---|---|
| Direct bookings via website | $320.7 | 4.1% | N/A |
| Third-party travel platforms | $176.6 | 8.5% | 3.1 |
| Travel agencies and tour operators | N/A | 1.5% | 3.1 |
| Social media marketing campaigns | $60.5 (net income) | 54.1% | N/A |
Viad Corp (VVI) - Business Model: Customer Segments
Domestic and international tourists
Viad Corp serves a diverse customer base through its Pursuit segment, which focuses on providing unique travel experiences. In 2024, the Pursuit segment recorded approximately $182 million in revenue. The number of visitors to Pursuit's attractions reached 3,130,570 in the three months ended September 30, 2024, a 4.6% increase from the previous year. The effective ticket price during this period was around $43.71, contributing to a total attractions revenue of $176.6 million.
Families seeking vacation experiences
Families represent a significant segment of Viad's customer base, particularly through its hospitality offerings. In 2024, Pursuit's hospitality revenue was approximately $131 million, with an average daily rate (ADR) of $295.42. The occupancy rate for Pursuit's hospitality services was 70.4%. This segment is aimed at families looking for vacation experiences that combine adventure with comfort, with offerings such as hotels and guided tours.
Event organizers and corporate clients
The Global Experience Specialists (GES) segment focuses on event organizers and corporate clients, contributing significantly to Viad's revenue. In the three months ended September 30, 2024, GES generated an operating income of $22 million, contributing to a total revenue increase of $94.5 million in this segment. GES serves a variety of corporate clients by providing comprehensive event management services, from planning to execution.
Adventure and nature enthusiasts
Pursuit's offerings are tailored for adventure and nature enthusiasts, particularly through its attractions such as the Columbia Icefield Glacier Adventure and Skywalk. The revenue from Pursuit attractions was reported at $176.6 million for the nine months ended September 30, 2024. The increase in ticket revenue by 11.7% year-over-year reflects the growing interest among adventure seekers. Viad aims to enhance its appeal to this segment by continuously investing in unique and memorable experiences.
| Customer Segment | Key Metrics | Revenue (2024) | Visitor Numbers | Average Ticket Price |
|---|---|---|---|---|
| Domestic and International Tourists | Attractions Revenue | $176.6 million | 3,130,570 | $43.71 |
| Families Seeking Vacation Experiences | Hospitality Revenue | $131 million | N/A | $295.42 |
| Event Organizers and Corporate Clients | GES Revenue | Reported increase of $94.5 million | N/A | N/A |
| Adventure and Nature Enthusiasts | Pursuit Attractions Revenue | $176.6 million | N/A | N/A |
Viad Corp (VVI) - Business Model: Cost Structure
Operational costs for attractions and hospitality
For the nine months ended September 30, 2024, Viad Corp reported total operational costs for its attractions segment amounting to $298.1 million, which includes costs of services. The hospitality segment incurred costs of $65.1 million . The total revenue for Pursuit's attractions and hospitality was $182.3 million for the three months ended September 30, 2024 .
Marketing and advertising expenses
Marketing and advertising expenses for the nine months ended September 30, 2024, increased significantly, with corporate activities reflecting a cost of $17.6 million. This marks a rise from $10.3 million reported for the same period in the prior year . The total marketing expenditure was part of the overall strategy to enhance brand visibility and customer engagement across segments.
Employee wages and benefits
Total employee benefit costs for the nine months ended September 30, 2024, were reported at $5.4 million, with share-based compensation expenses amounting to $10.5 million . The total wages and benefits for employees in the attractions and hospitality segments are critical for maintaining service quality and operational efficiency. Employee-related costs are expected to remain a significant part of the cost structure moving forward.
Maintenance and infrastructure investment
As of September 30, 2024, Viad Corp's total investment in property and equipment was approximately $588.9 million, with accumulated depreciation at $426.9 million . The company allocated a significant portion of its budget towards maintenance and infrastructure to ensure that attractions remain operational and in good condition. Maintenance costs are integral for the longevity and safety of attractions, with additional capital expenditures expected to be necessary for future enhancements.
| Cost Category | Amount (in millions) |
|---|---|
| Operational Costs (Attractions) | $298.1 |
| Operational Costs (Hospitality) | $65.1 |
| Marketing and Advertising Expenses | $17.6 |
| Employee Benefit Costs | $5.4 |
| Share-Based Compensation | $10.5 |
| Investment in Property and Equipment | $588.9 |
| Accumulated Depreciation | $426.9 |
Viad Corp (VVI) - Business Model: Revenue Streams
Ticket sales from attractions
In 2024, Viad Corp reported ticket revenue from attractions totaling $136,842,000, which reflects an 11.7% increase compared to 2023. The number of visitors reached 3,130,570, resulting in an effective ticket price of $43.71 per visitor.
Hospitality revenue from hotels and restaurants
The hospitality segment generated revenue of $131,186,000 in 2024, representing a 0.6% decrease from the previous year. The average daily rate (ADR) for rooms was $229.08, with an occupancy rate of 67.0%.
Transportation service fees
Transportation services contributed $10,311,000 to revenue in 2024, which is a 6.0% decline from 2023. This decline is attributed to fewer room nights sold and a decrease in overall travel demand.
Event management and consulting fees
Viad Corp's event management segment, GES, saw a significant rise in revenue from event management and consulting fees, totaling $551,623,000 for the nine months ended September 30, 2024. This reflects a 23.6% increase compared to the same period in 2023.
| Revenue Stream | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | % Change |
|---|---|---|---|
| Ticket Sales from Attractions | $136,842 | $122,545 | 11.7% |
| Hospitality Revenue | $131,186 | $131,984 | (0.6%) |
| Transportation Service Fees | $10,311 | $10,974 | (6.0%) |
| Event Management and Consulting Fees | $551,623 | $446,146 | 23.6% |
Updated on 16 Nov 2024
Resources:
- Viad Corp (VVI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Viad Corp (VVI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Viad Corp (VVI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.