Attracting the new generation of Hotel Travelers

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Attracting the new generation of Hotel Travelers

  1. 1. Attracting the New Generation of Hotel Travelers The Solutions GroupTeam: Mike Wahl, Sabrina Fruehauf, Antonio Martinez, Lea VandeZande, and Shane Mooney Client: Best Western International
  2. 2. Order of Business1. Our Team2. Reasons for being here?3. Statement of Purpose4. The Research5. Facts, Evidence, Results & Recommendations
  3. 3. Why are we here? Population100 80 76 758060 464020 0 Tradnl Boomer Gen X Millenial
  4. 4. Meet the Millennial’s Demographics  Born between 1977 – 1999  76 million (new baby boom)
  5. 5. Proven & Cutting Edge Marketing Tools• Perceptual MappingHigh quality consumer insights into a brand’s current positioning.Provides direction in satisfying the wants of consumers better• Conjoint AnalysisIdentifies the extent to which a consumer values a particular attribute in his/her purchase decision Using math to uncover value system behind preference judgments
  6. 6. Recommendation 1: Make More Adult FriendlyBusiness Travelers Leisure TravelersLeisure Travelers Leisure Travelers Business Travelers 21% 31% 6% 4%
  7. 7. Recommendation 1: Make More Adult Friendly Top Consumer Touchpoints• Free WiFi - top-rated perk for business and leisure travelers 96%• Add adult friendly features o Hotel bar 60% o Business center o Gym o Concierge service 56%• Minimize family-friendly features o Pool 39% o Kids play area o Hotel restaurant
  8. 8. Recommendation 2: Improve Perception of a Clean,Friendly Hotel for Guests • Business Travelers What customers prefer: clean hotels that have a feeling of home and friendly staff • Customer perception of Best Western: opposite of preference Leisure Travelers
  9. 9. Recommendation 2: Improve Perception of a Clean,Friendly Hotel for Guests How? •Communicate through marketing and advertising o The customers "home away from home" • Implement corporate wide training for all staff members (at individual hotel level) o Emphasize importance of a clean and friendly hotel o Encourage staff to take the guest journey o Discuss what your guests expect and how to meet those expectations o Increase expectations • Evaluate progress - secret shoppers o Management shares results with staff  Give guidance, recognition, enforce expectations and reprimand • Incentivize management and staff o Make it a competition and provide rewards (free hotel stays, gift cards, etc.)
  10. 10. Recommendation 3: Increase pricing Price vs. PreferenceBusiness Travelers Leisure Travelers Hotel Rates Income and Marital Status Above $125,000 $0- $50,000 $100,001 - $125,000 $75,001 - $100,000 $50,001 - $75,000
  11. 11. Recommendation 3: Increase pricingHotel rates from hotel.com (check in 11/9/12, check out 11/10/12) Hotel rates from hotel.com, requested for 11/9/12-11/10/12
  12. 12. Recommendation 3: Increase pricing• 83% of Business travelers make more than $ 50,000 a year (in leisure, it’s more than half of the people surveyed*)• Most people are single (81% among Leisure, 69% among Business travelers) with over 90% having no children in both segments Annual income distribution of Marital Status of Leisure Business travelers Travelers Married $0-$50,000 19.1% Above $125,000 $100,001 - $125,000 Not $75,001 - married $100,000 80.9% $50,001 - $75,000
  13. 13. Recommendation 3: Increase pricingHow?• Phase it into your communication with customers o Pay more for revamped image of Best Western hotels focused on cleanliness and staff friendliness o Increase in price goes with an increase in quality o Increase advertising for “Best Western To Go” App 38% of Business Travelers use their mobile device to book travel 21% of Leisure Travelers
  14. 14. Recommendation 4: Launch "Free Night" Loyalty Program Leisure Travelers Leisure Travelers Overall Feature Importance Elite check- in benefits Elite perks # of nights Elite 2% 6% to earn free amenities night 6% 29% Elite room upgrades 7% Program expiration date # of nights 21% to reach “elite status” Leisure Travelers Leisure Travelers 29%
  15. 15. Recommendation 4: Launch "Free Night" Loyalty Program • A program designed for less frequent Elite Perks hotel travelers Elite Check-in • Program details: Benefits o 5 nights earns you a free night o No expiration Elite Amenities o No other benefits Elite Room • Simple, attractive program Upgrades • Solution for 60% of the guests Program Expiration • Real, attainable benefits for the consumer # of Stays to Reach Elite • Low cost for Best Western # of Stays to Earn Free Night • Industry-first program
  16. 16. Recommendation 5: Launch " Best VIP " Loyalty Program Business Travelers Business Travelers Business Travelers Type of hotels stayed at during the past yearBusiness Travelers
  17. 17. Recommendation 5: Launch “ Best VIP” Loyalty Program How? • Select the attributes with the highest value for the consumers • Find attributes that provide an opportunity to satistfy the consumer more with less • Combine attributes and value to determine the best loyalty program for this target market
  18. 18. “Best VIP "Loyalty programBest VIP Loyalty Program# of nights required to earn a free night 10 0.24Program expiration date 3 years 0.25# of annual nights to reach “elite status” 25 0.27Complimentary amenity free internet 0.2“Elite status” room upgrades upon availability 0.2“Elite status” benefit complimentary drink 0.09"Elite status" check in/out benefits 0.08Total TPU ( Customer happiness) 1.33
  19. 19. Other elite loyalty programsHilton MarriottExpiration time 1 year Expiration time 1 year 0.07 0.07 # of nights required to earn a # of nights required to earn a free night 5 0.03free night 5 0.03 # of annual nights to reach “elite # of annual nights to reach 0.07 0.12 status” 75“elite status” 50 Late check-out 0.08Late check-out 0.08 Express check-out, and check- Express check-out, and in 0 check-in 0 “Elite status” benefit“Elite status” benefit complimentary drinks at minibarcomplimentary drinks at 0.09minibar 0.09 Executive Floor Lounge Access Executive Floor Lounge 0.04 Access 0.04 Free internet 0.2 Space-available upgrade to aFree internet 0.2 preferred room 0.2 Space-available upgrade to complimentary amenity welcome a preferred room 0.2 bag 0.07Total TPU ( Customer Total TPU ( Customerhappiness) 0.83 happiness) 0.85
  20. 20. Project Recap• Family-friendly = Opposite of Milennials’ Preference• Improving Perceptions of Cleanliness• Raise Room Rates. Milennial Stereotype: “Inexpensive = bad”• What New Leisure Travelers Want• What New Business Travelers Desire
  21. 21. Appendix
  22. 22. Business Travelers Free Amenities Brand I Prefer Feeling of Home For Business Travelers Friendly Staff Clean Rewards Loyal Customers Holiday Inn Hampton Inn Marriott Hilton HyattGreat for SheratonFamilies Reasonably Priced Comfort Inn Best Western
  23. 23. Leisure Travelers Great for Free Families Amenities Holiday Inn Hampton Inn MarriottReasonably Priced Feeling of Home Brand I Prefer Hilton Comfort Inn Sheraton Clean Hyatt Friendly Staff For Business Travelers Best Western Rewards Loyal Customers
  24. 24. CA Business travelers
  25. 25. CA Regression Business travelers StatisticsMultiple R 0.40383014R Square 0.16307878Adjusted RSquare 0.14799912Standard Error 1.41869981Observations 792ANOVA df SS MS F Significance FRegression 14 304.729798 21.76641 10.814486 9.43942E-23Residual 777 1563.875 2.012709Total 791 1868.6048 Standard Coefficients Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 3.01 0.19524213 15.40434 6.371E-47 2.624311202 3.3908403 2.624311202 3.390840313x1 0.92 0.12348197 7.484837 1.944E-13 0.681844636 1.1666402 0.681844636 1.166640212x2 0.41 0.12348197 3.312961 0.0009659 0.166693121 0.6514887 0.166693121 0.651488697x3 0.66 0.12348197 5.337548 1.237E-07 0.416693121 0.9014887 0.416693121 0.901488697x4 0.38 0.12348197 3.067556 0.0022331 0.136390091 0.6211857 0.136390091 0.621185667x5 0.92 0.12348197 7.454162 2.416E-13 0.678056757 1.1628523 0.678056757 1.162852334x6 0.28 0.12348197 2.239316 0.0254176 0.034117363 0.5189129 0.034117363 0.51891294x7 0.17 0.12348197 1.349725 0.1774974 -0.075731122 0.4090645 -0.075731122 0.409064455x8 0.06 0.12348197 0.521485 0.6021779 -0.178003849 0.3067917 -0.178003849 0.306791728x9 0.07 0.12348197 0.582836 0.560173 -0.170428091 0.3143675 -0.170428091 0.314367485x10 -0.10 0.12348197 -0.82824 0.4077888 -0.344670515 0.1401251 -0.344670515 0.140125061x11 0.19 0.12348197 1.533778 0.1254913 -0.053003849 0.4317917 -0.053003849 0.431791728x12 0.22 0.12348197 1.809858 0.070704 -0.01891294 0.4658826 -0.01891294 0.465882637x13 -0.01 0.12348197 -0.06135 0.9510954 -0.249973546 0.234822 -0.249973546 0.234822031x14 -0.06 0.12348197 -0.46013 0.6455492 -0.29921597 0.1855796 -0.29921597 0.185579606
  26. 26. CA Leisure travelers “Elite status” benefit access to executive lounge “Elite status” benefit Free airport shuttle service “Elite status” benefit complimentary drinks at minibar"Elite status" check in/out benefits 8am check in and 4 pm check … "Elite status" check in/out benefits none "Elite status" check in/out benefits express check in complimentary amenity welcome bag complimentary amenity free breakfast complimentary amenity free internet “Elite status” room upgrades none“Elite status” room upgrades free upgrade to best available non-… “Elite status” room upgrades free suite upgrade upon avalability Program expiration date never 1 year Program expiration date never 3 years Program expiration date never # of annual stays to reach “elite status” 75 # of annual stays to reach “elite status” 50 # of annual stays to reach “elite status” 25 . # of nights required to earn a free night 15 # of nights required to earn a free night 10 . # of nights required to earn a free night 5 intercept 0.00 0.20 0.40 0.60 0.80 1.00 1.20
  27. 27. CA Leisure travelers Regression StatisticsMultiple R 0.40383014R Square 0.16307878Adjusted RSquare 0.14799912Standard Error 1.41869981Observations 792ANOVA df SS MS F Significance FRegression 14 304.729798 21.76641 10.814486 9.43942E-23Residual 777 1563.875 2.012709Total 791 1868.6048 Standard Coefficients Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 3.01 0.19524213 15.40434 6.371E-47 2.624311202 3.3908403 2.624311202 3.390840313x1 0.92 0.12348197 7.484837 1.944E-13 0.681844636 1.1666402 0.681844636 1.166640212x2 0.41 0.12348197 3.312961 0.0009659 0.166693121 0.6514887 0.166693121 0.651488697x3 0.66 0.12348197 5.337548 1.237E-07 0.416693121 0.9014887 0.416693121 0.901488697x4 0.38 0.12348197 3.067556 0.0022331 0.136390091 0.6211857 0.136390091 0.621185667x5 0.92 0.12348197 7.454162 2.416E-13 0.678056757 1.1628523 0.678056757 1.162852334x6 0.28 0.12348197 2.239316 0.0254176 0.034117363 0.5189129 0.034117363 0.51891294x7 0.17 0.12348197 1.349725 0.1774974 -0.075731122 0.4090645 -0.075731122 0.409064455x8 0.06 0.12348197 0.521485 0.6021779 -0.178003849 0.3067917 -0.178003849 0.306791728x9 0.07 0.12348197 0.582836 0.560173 -0.170428091 0.3143675 -0.170428091 0.314367485x10 -0.10 0.12348197 -0.82824 0.4077888 -0.344670515 0.1401251 -0.344670515 0.140125061x11 0.19 0.12348197 1.533778 0.1254913 -0.053003849 0.4317917 -0.053003849 0.431791728x12 0.22 0.12348197 1.809858 0.070704 -0.01891294 0.4658826 -0.01891294 0.465882637x13 -0.01 0.12348197 -0.06135 0.9510954 -0.249973546 0.234822 -0.249973546 0.234822031x14 -0.06 0.12348197 -0.46013 0.6455492 -0.29921597 0.1855796 -0.29921597 0.185579606
  28. 28. Do you stay in hotels at least 2nights per year for business travel?
  29. 29. Do you have a college (4 year undergraduate) degree?
  30. 30. Are you between the ages of 22 to 35?
  31. 31. During the past year, how manynights have you stayed at a hotel?
  32. 32. Which of the following hotels have you stayed at during the past year? (Select all that apply)
  33. 33. Which of the following social media platforms do you use? (Select all that apply)
  34. 34. Which of the following travel websites have youvisited in the past year? (Select all that apply)
  35. 35. Which of the following sources do you read forentertainment or news? (Select all that apply)
  36. 36. For which of the following reasons do you use your mobile phone device? (Select all that apply)
  37. 37. Which of the following television stations do you watch daily? (Select all that apply)
  38. 38. Which of the following hotel loyalty programs do you currently belong to? (Select all that apply)
  39. 39. Which of the following devices doyou own? (Select all that apply)
  40. 40. Which of the following TV programs doyou watch regularly? (Select all that apply)
  41. 41. Please indicate your age range.
  42. 42. Please indicate your gender.
  43. 43. Please indicate your annual household income. (Optional to answer)
  44. 44. Please indicate your ethnicity.
  45. 45. Please indicate your marital status.
  46. 46. Including yourself, please indicate how many people are in your household.
  47. 47. Please indicate how many children you have.

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