Worldhotels Annual Conference 2017
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2 Geoff Andrew CEO - WORLDHOTELS
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4 Google - Year In Search
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7 Economic growth assumptions North America 2,4 % 1,5 % 2,0 % Europe 2,2 % 1,8 % 1,6 % Asia 4,4 % 4,4 % 4,4 % Latin America -1,0 % -1,1 % 1,9 % Middle East 2,2 % 2,4 % 2,7 % Africa 3,5 % 2,9 % 3,4 % Southwest Pasific 2,6 % 3,0 % 2,7 % Global 2,6 % 2,2 % 2,6 % Source: Oxford Economics, October 2016
8 Hotel rate forecast Average daily rates % year-over-year North America 3% to 5% Europe Asia Latin America Middle East Africa Southwest Pasific 1% to 3% 0% to 2% 0% to 3% 2% to 4% 0% to 2% 3% to 5% Global 1% to 3% Source: Advito
9 Market Trends: Triple Squeeze
10 Market Trends: Triple Squeeze
11 Market Trends: Triple Squeeze HOTEL CHAINS
12 Consolidation $73 BN $32 BN
13 Loyalty 86 MILLION MEMBERS
14 Consumer Stay Brands Booking Brands Source: Kalibri Labs
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16 Market Trends: Triple Squeeze HOTEL CHAINS
17 Market Trends: Triple Squeeze HOTEL CHAINS OTAs
18 Online Travel Penetration by Region % 50% 45% 40% 35% 30% 25% 20% 43% 41% 25% 20% 44% 27% 21% 47% 45% 31% 23% 52% 50% 45% 45% 37% 34% 27% 25% 15% 10% U.S. Europe APAC Latin America Source: Phocuswright 2016
19 Hotel Bookings, OTAs vs. Hotel Websites/Apps 45% 40% 35% 30% 25% 20% 25% 32% 32% 20% 31% 36% 39% 29% 34% 27% 23% 26% 15% 10% 13% 12% 9% 14% 5% 0% OTA website/app Hotel website/app U.S. U.K. Australia France Germany Russia China Brazil Source: Phocuswright 2016
20 Reasons Travellers Booked With OTAs The website is easy to use 47% I am used to booking travel this way 37% I trust the brand 34% Online travel agencies typically have the best prices 30% Source: Phocuswright 2016
21 Cost of Guest Acquisition US 2015: Commission & Marketing costs grew at DOUBLE revenue growth Hotel revenue inc by 7%; retained revenue by -0.4% $600m lost to the industry in 3 rd party costs Source: Kalibri Labs
22 Market Trends: Triple Squeeze HOTEL CHAINS OTAs
23 Market Trends: Triple Squeeze HOTEL CHAINS OTAs
24 Airbnb Use (Among Travellers) 30% 25% 25% 23% 20% 15% 10% 19% 18% 18% 12% 12% 18% 5% 0% Leisure Travelers E 2016A 2017 Business Travelers Source: AlphaWise, Morgan Stanley Research
25 Market Trends: Triple Squeeze HOTEL CHAINS OTAs
26 Market Trends: Triple Squeeze HOTEL CHAINS OTAs
27 Guest Prof ile Authentic hospitality Unique experiences Excellent service Added value Personal recognition
28 1. Brand of One: Def ine and Deliver
29 Start With Why 100 workshops conducted 20 follow up trainings booked 100 s of measureable results: Guest Reviews Staff Motivation Social media posts Improved Review scores
30 OTA SCORE VS RATE Rate 5,6% OTA Score
31 Quality Quality Experience Program (QEP) New Audit: Quality Experience Benchmark Online Reputation 2017: WHY or QEP?
32 Training New Global Training Department and own resources Dynamic and flexible training curriculum provided through different teaching methods Partnership with
33 2. Your Brand of One: Position and Promote
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35 3. Your Brand of One: Effective Sales 2016: growth in Corporate Programs, Preferred Partnerships, Converted Group Leads, Neg Roomnights 2017: Check 5 Evolution: more focus on priority markets and segments Extend Co-operative funding New Sales presence in Middle East (Dubai)
36 Peakpoints Recruited members 47, ,000 Stays Credited 6,627 12,684 Average growth rate of our Peakpoints member database per month 9% Value of redeemable Peakpoints 200,000
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