Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation


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Consumers and enterprises want online channels to be highly efficient but few companies have a vision and plan to reach those goals. Hyatt understands how customer experience across all channels builds brand preference and ultimately, revenue. Join to see what worked well for Hyatt and what would change in a roll out.

Bill Bernahl, Vice President, E-Commerce, Hyatt

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Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

  1. 1. Bill Bernahl Vice President E-Commerce Hyatt Hotels & Resorts. Ignite 2010
  2. 2. Any opinions expressed during this presentation are mine and not necessarily those of Hyatt Forward-Looking Statements Statements in this presentation, which are not historical facts, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies, financial performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, the depth and duration of the current economic downturn; levels of spending in the business, travel and leisure industries as well as consumer confidence; declines in occupancy and average daily rate; hostilities, including future terrorist attacks, or fear of hostilities that affect travel; travel-related accidents; changes in the tastes and preferences of our customers; relationships with associates and labor unions and changes in labor law; the financial condition of, and our relationships with, third-party property owners, franchisees and hospitality venture partners; risk associated with potential acquisitions and dispositions and the introduction of new brand concepts; changes in the competitive environment in our industry and the markets where we operate; outcomes of legal proceedings; changes in federal, state, local or foreign tax law; fluctuations in currency exchange rates; general volatility of the capital markets and our ability to access the capital markets. A more complete description of these risks and uncertainties can be found in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We caution you not to place undue reliance on any forward- looking statements, which are made as of the date of this presentation. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
  3. 3. Play “Hyatt You’re More than Welcome” 1:00
  4. 4. 445 Hotels / Resorts >80,000 Associates 45 Countries Park Hyatt Andaz Hyatt Regency Hyatt Hyatt Place Hyatt Summerfield Suites Hyatt Vacation Clubs
  5. 5. >600 Sites 10 Languages Hotels Brands Restaurants Spas Golf Destinations Regions Renovation Press Room Investor Relations Blog …
  6. 6. A Property Site Hundreds of pages
  7. 7. Hyatt Editor – Homegrown Content Manager >400 hotels, 10 Languages
  8. 8. Infrastructure Hosted at AT&T 2 Datacenters Virtualized Linux running on Intel processors Apache, Jboss, ATG, Endeca, Oracle, Day
  9. 9. E-Commerce Vision Best for Customers   Terms – Lowest prices, guaranteed – No booking fees – Loyalty benefits – Policies (refunds, changes, …)  Content / features  Experience / Convenience Best for Hyatt  Most efficient channel  Increased revenue generation  Increased customer engagement through personalization  Experience supports building brand preference Establish Hyatt’s global online properties as the best places to plan, purchase and manage hospitality and travel services with Hyatt
  10. 10. Online Travel US / Europe Maturing, Developing World Accelerating  US total travel market >$280b More than 50% of all bookings now booked online  Leisure and Unmanaged Business Travel Online US >$90b, 5% growth Europe >$70b, 7% growth ASPAC >$40b, 20-25% growth
  12. 12. “Cyberspace, not so long ago, was a specific elsewhere, one we visited periodically, peering into it from the familiar physical world. Now cyberspace has everted. Turned itself inside out. Colonized the physical.” - William Gibson, NYT 8/31/2010
  13. 13. Strong Internet Growth Continues  2,000,000,000 Internet Users  29% of the population is online  Penetration by country US 77% Europe 58% Asia 21% Africa 11%
  14. 14. Mobile Internet Growth Even More Astounding  Mobile phones in use = 60% of the world population  More than 780mm mobile phones in China 1/3 internet devices  Mobile internet growing faster than desktop internet  3G+ population penetration projected to exceed 45% by 2015
  17. 17. Days to Reach 1,000,000 Units Sold 360 74 28 3
  18. 18. Cummulative iPhone Apps Downloads Projected to Exceed Song Downloads by End of 2010
  19. 19. Play “Hyatt Apple iPad Video” 2:49
  21. 21. 2010 Goal: Acquire and Deploy Web Content Management System Key criteria  Flexible content support  Strong international support  Configurable workflow  Open content access  Easy to learn / use  Innovative company Approach  Roll out marketing microsites in 2010  Roll out a brand site in 2010  Address brand / property sites in 2011
  22. 22. Web Content Management System Selection Process Kickoff to Contract: 12 weeks!  Engaged SapientNitro Content Management Practice  Reviewed Research / Conducted Market Scan  Developed Short List  Vendor Presentations / Scorecards  2 Day onsite POCs  Reference / Analyst Checks  Final Selection
  23. 23. Initial Project: Digital Press Room  5 Week “quick strike”  Simple single site / workflow model  Moved existing site with limited changes  Hosted in Amazon cloud  Joint Day / SapientNitro effort
  24. 24. Corporate Blog  New corporate blog  Basic site  Reverse publication  Hosted in Cloud  SapientNitro
  25. 25. Hyatt Place Property Internet Pages  Replace and enhance existing iGoogle capability  >100 single page sites  Widgets  Hosted in Amazon cloud  SapientNitro/ Day
  26. 26. Premier Restaurant Templates  Template for multi-outlet restaurants  Property / Corporate workflow  Hosted in Amazon cloud  HeadStand Media
  27. 27. Hyatt Vacation Club Redesign  Brand site build out  Substantial content but no significant dynamic content  Significant multimedia elements  Hosted in Cloud  SapientNitro
  28. 28. Day CQ5 – Coming Up 2010  Destination pages  Custom landing pages  Content source for property specific mobile content 2011  Migrate Brand sites  Integration with ATG for dynamic content  Move hosting from cloud to AT&T  Migrate existing custom sites (Restaurants, Catering, …)
  29. 29. Lessons Learned / Observations  The “Start Simple / Move Fast” approach worked for us Allowed Hyatt and SapientNitro team to learn system progressively Projects delivered on schedule!  Leveraging the Amazon Cloud a major success  Get the templates right early in the project!  Would have accelerated staff training  Weigh “Out of the Box” components against more customized solutions. Custom rather than OOTB components may provide more flexibility and scalability longer term.