23/04/20131Revamping Leaders Club: Building loyalty through loyalty  CIT Conference, Benidorm ‐ April 2013Pablo Alcácer – ...
23/04/20132The Leading Hotels of the WorldFar beyond a hotel representation company….We provide the ultimate luxury brand ...
23/04/20133The Leading DifferenceLHW Members • Originals • Authentic/Local • Unique/One‐of‐a‐Kind • Adventure/Discovery• H...
23/04/20134EnhanceWhat do customers want?• Leaders Club Member Surveys• Leaders Club Focus Groups (New York, Paris, Tokyo)...
23/04/20135Enhance (III)• New CRM Platform – Investment needed to capture guest data– Communication to hotel of guest pref...
23/04/20136Invent• Eliminate Complimentary Tier– 100% Paying program– Card Issuing vs. Card Usage– Additional funding for ...
23/04/20137Traditional Membership Model– Annual Membership Fee• $660 per room in 2013– Transaction Fee (per reservation) •...
23/04/20138 +45% LC Revenue to hotels (09 vs. 12’) +60% LC Enrollment renewal+50% Reward Reservations w/ additional nig...
23/04/20139
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Accommodation, leisure & events management: Innovative success stories - Pablo Alcácer

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Accommodation, leisure & events management: Innovative success stories. Revamping Leaders Club: Building loyalty through loyalty. Pablo Alcácer (Leading Hotel of the World)

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Accommodation, leisure & events management: Innovative success stories - Pablo Alcácer

  1. 1. 23/04/20131Revamping Leaders Club: Building loyalty through loyalty  CIT Conference, Benidorm ‐ April 2013Pablo Alcácer – The Leading Hotels of the World, LtdAgenda• Overview Leading Hotels• Leaders Club• Evolution of Loyalty• New Membership Model• Results
  2. 2. 23/04/20132The Leading Hotels of the WorldFar beyond a hotel representation company….We provide the ultimate luxury brand affiliation, top of mind international sales & marketing solutions and state‐of‐the‐art distribution services. We are the marketer for the best independent luxury hotels in the world. Overview Leading Hotels• Established in 1928• 430 Hotels/Resorts• 300 Locations, 80 Countries• Headquarters in New York• 25 Regional Sales Offices• 12 Reservation & Service Centers• Do for Hotels What They Can’t Do As Well for Themselves• Focus on Independent‐Minded Hotels and TravelersPreserve, Enhance, Invent
  3. 3. 23/04/20133The Leading DifferenceLHW Members • Originals • Authentic/Local • Unique/One‐of‐a‐Kind • Adventure/Discovery• Hotels Define Brand• Family‐Owned Luxury for the Individual Chain‐Brand Hotels • Replicas • Imported/Formulaic • Consistent/Sameness • Expected/No surprises • Brand Defines Hotels • Investment/Trust Owned Luxury for the MassesLeaders Club• LHW Signature loyalty program• Two distinct level• Yearly fee (12‐month renewal)• Benefits are received or earned when booking through LHW channelsAccess Annual fee USD 150Unlimited Annual fee of USD 1,200 
  4. 4. 23/04/20134EnhanceWhat do customers want?• Leaders Club Member Surveys• Leaders Club Focus Groups (New York, Paris, Tokyo)• Luxury Consumer Groups• Competitive StudiesEnhance (II)• Complimentary Nights• Continental Breakfast• Internet Access• Room Upgrade (incl. Suites)• Hotel/Resort Credit• Airport TransfersCommon to Luxury Industry?Customers buy benefits not features
  5. 5. 23/04/20135Enhance (III)• New CRM Platform – Investment needed to capture guest data– Communication to hotel of guest preferences– Post‐stay Guest Satisfaction Surveys• Reinvesting 50% of fees – Redemption to hotels of rewards nights @ NET ADR
  6. 6. 23/04/20136Invent• Eliminate Complimentary Tier– 100% Paying program– Card Issuing vs. Card Usage– Additional funding for marketing• Reward redemption made simple– Stay based vs. Point (Miles) based• Hometown benefits– Specific offers to resident members– Provided in key cities worldwide– Unique in industry– Builds loyalty prior to travel• Extension – Leading Golf SocietyInvent (II)
  7. 7. 23/04/20137Traditional Membership Model– Annual Membership Fee• $660 per room in 2013– Transaction Fee (per reservation) • $10 GDS  & Internet • 10% Voice • 7‐11% Group– Minimum Fee = $58,500– 4% Annual Membership IncreaseInvent (III)New Membership Model– 2012 Pilot program (51 hotels)– In‐house LC enrollment– Eliminate Transaction Fees (avg. savings 40%)– Provide 300 // Get 200.000 (potential customers)– Corporate support (training & best practice sharing)– Customized membership kitsBuild loyalty through loyaltyInvent (IV)
  8. 8. 23/04/20138 +45% LC Revenue to hotels (09 vs. 12’) +60% LC Enrollment renewal+50% Reward Reservations w/ additional nights +100 USD ADR Premium Over LHW as industry leaderLHW most cost effective platform  + RevEx Member retentionMember database x3 upon global launch (target)ResultsPRESERVEENHANCEINVENT
  9. 9. 23/04/20139

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