The Travel Industry “The future leaders of the travel industry will ultimately be those who can strengthen customer loyalty to grow revenues.”Julian Sparks, Partner Accenture, Sept 2002
Hotel Brand – a future leader…. Award winning Loyalty Program 1999, 2000 & 2001. “Innovator Award” October 200213th Annual Hotel Investment Conference Asia-Pacific
Hotel Brand Business Strategy Growth Opportunities• Expand the Companys internet presence and sales capabilities to increase revenue and improve customer service.• Continue to grow the Company’s frequent guest program, thereby increasing occupancy rates while providing the company’s customers with benefits based upon loyalty to the Company’s Hotels.
Hotel Brand Business Strategy Growth Opportunities.• Enhancing the Companys marketing efforts by integrating the Company’s propriety customer databases so as to sell additional products and services to existing customers, improve occupancy rates and create additional marketing opportunities.• Refining the positioning of the Company’s brands to further strengthen brand identity.
Customer LoyaltyLoyalty is the “reward” an organisation earns from their customers through understanding their needs and exceeding them better than their competition.
Understanding the Customer• Hotel Brand have two broad customer groups: Business Travellers Leisure Travellers
Business Travel Market• The world business travel market will generate US$349 billion in 2002. (World Travel and Tourism Council: 2002)• The world business travel market is expected to grow to US$748 billion by 2012 (WTTC: 2002)• The top 10 corporates spent US$4.5billion on non-airline travel and entertainment in 2001• Over a 20 year career a senior business manager may spend in excess US$500k on hotel rooms.
Business Travellers• Hotels offer business travellers a place to – Sleep – Eat – Exercise – Work – Meet Colleagues – Meet Clients• Hotel chains DO NOT address the needs of – Lifestyle – Isolation – Boredom
LifestyleAttributes of most admired Industry LeadersRanking of trait/perception as important or very important (% of respondents) Asian American European % all respondents1 Bus achievement (97%) (94%) (95%) (95%)2 Remuneration (97%) Balanced life (90%) Balanced life (89%) Balanced life (89%)3 100% work focus (95%) Peer Respect (88%) 100% work (89%) 100% work (87%)4 Recognition (89%) Recognition (84%) Peer Respect (89%) Peer Respect (83%)5 Balanced life (87%) 100% work (80%) Public image (81%) Recognition (83%)6 Lifestyle trapping (74%) Public image (68%) Recognition (78%) Remuneration (78%)7 Respect of peers (68%) Remuneration (73%) Remuneration (71%) Public image (76%)8 Public image (65%) Lifestyle trap (59%) Self-promo (59%) Lifestyle trapping (57%)9 Self promotion (55%) Self promo (41%) Lifestyle trap (48%) Self-promo (52%)10 Celebrity status (13%) Celeb status (39%) Celeb status (31%) Celeb status (30%)Source IRN Research For InterContinental Hotels & Resorts.Sample: 150 respondents in 29 countries “It has become obvious that international business leaders are changing and our customers take their work and leisure time equally seriously” Tom Oliver, Chairman - Six Continents Hotels 23rd Sept
Lifestyle• Being an active ********* (golfer, sailor, rambler, theatregoer, shopper etc) I would like to have the opportunity to do this when I have some free time on a business trip.• This may be the only time I visit this city, so how do I get the best out of my short time here.• I hear that ******** is something you should do here, I would like to meet up with other people here on business (or leisure) who may also be interested in trying *****, it is much more fun as a group.
Isolation - Male• I have been in meetings all day and I just don’t want to spend the evening with my clients or colleagues, but I don’t have a good excuse not to.• I don’t enjoy a meal on my own in the restaurant so will order room service and catch up on some work.• I have no incentive to go out so will just stay in my room.
Isolation - Female• I am here on my own and I know I should go out and see a bit of the town but I don’t want to explore alone.• I do not like sitting in the bar on my own as I don’t want to look like I am waiting to get picked up.
Boredom• I am in this great city and I have no idea what to do – I have not bought a guide book, don’t have time for searching online, if I knew someone who lived here or who had been here before I could have got a couple of tips from them.• I don’t want to ask my client or colleague as they may feel obliged to take me or come with me.
Global Lifestyle Manager How was you trip to New York – click HERE to add your travel tips! Earn points for travel tips! GLM News My Travel Log ActivitiesWelcome back, Julie Locations Build your own personal online travel log and organise your global contacts! Special OffersManage your profile HERE! My Destinations My Network You have new mail:Find Active Fun Home Town: London Email Received: Doug 2 messages Favourites: Hong Kong KarenCountry Boston Renae Click here to read Sydney JohnActivity Barcelona Emails Sent: Doug Stockholm JohnThings To Do In…. Karen Lucy GLM BankCountry Currently your GLM accountCity has GLM$500. You can spend them on:Need some inspiration…. My Activities My Diary GLM Gift Vouchers GLM MerchandiseHoliday Weeks Currently do: Sailing Planned Trips: Business 6C Dollars Skiing Leisure GLM Activity discountsActivity Days Contemplating: Golf Previous Trips: Business GLM Holiday discounts Trekking LeisureCountry Charity Hols Click HERE!What do you suggest?ActivityCity Global Lifestyle ManagerCountry About Us Membership Benefits Subscription Costs Affiliates Privacy Terms and Conditions
How will it work? Customer Loyalty Web Site Hotel Web Site Hotel TV Preferred Preferred Guest Guest Travel Tips Program Program External Ideas and Hotel Reservation System Travel Reviews Site People Secure Activity & PDA’s Messaging Leisure Matching System Database EngineCorporate Points Corporate Booking Bank Online Activity Booking System Trip Booking Systems Planner Engine Preferred Preferred Guest Guest Program Program Hotel Offline Intranet Travel Agent Internet
Getting Started…• The service will be triggered by two means: – By booking a room – online, via telephone or ? – By accessing Global Lifestyle Manager personal profile• The service will require minimal information about the user: – Name – Home town – Destinations booked/planned• The service will pass information out to: – Web site – Personal Digital Assistants – Hotel Interactive TV – Online Corporate Booking Systems – High wire, E-travel and Getthere
Why will business travellers use it?• Build a personal global network• Enhance business travel lifestyle• Take advantage of the locations visited in the time available• Participate in “your” sport, activity when travelling• Exchange travel tips with peer group
Implementing the Global Lifestyle Manager • People Matching Engine • Travel Trip Planner • Travel Tips Database • Internal Email • Activity Database • Activity Booking Engine • Points Bank
Benefits to Hotel Brand• Raise the Stakes and Revolutionise Customer Loyalty Programmes• Brand Differentiation• Brand and Lifestyle association• Community based Customer Loyalty Programme• Increased Customer Loyalty – prohibit the promiscuous customer• New Service which addresses the work and lifestyle balance issue of the business traveller.• New Revenue Stream that increases with the success of the service.• Potential profitable Investment Opportunity