attracting the new generation of hotel travelers
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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
Order of Business
1. Our Team
2. Reasons for being here?
3. Statement of Purpose
4. The Research
5. Facts, Evidence, Results & Recommendations
Why are we here?
76
46
7580
0
20
40
60
80
100
Tradnl Boomer Gen X Millenial
Population
Meet the Millennial’s
Demographics
Born between 1977 – 1999
76 million (new baby boom)
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
Recommendation 1: Make More Adult Friendly
Business Travelers Leisure Travelers
Leisure Travelers
Leisure Travelers Business Travelers
21% 31%
6% 4%
• Free WiFi - top-rated perk for business and leisure travelers
• Add adult friendly featureso Hotel baro Business centero Gymo Concierge service
• Minimize family-friendly featureso Poolo Kids play areao Hotel restaurant
Recommendation 1: Make More Adult Friendly
96%
60%
56%
39%
Top Consumer Touchpoints
Recommendation 2: Improve Perception of a Clean, Friendly Hotel for Guests
• What customers prefer: clean hotels that have a feeling of home and friendly staff
• Customer perception of Best Western: opposite of preference
Business Travelers
Leisure Travelers
Recommendation 2: Improve Perception of a Clean, Friendly Hotel for Guests
How?
• Communicate through marketing and advertisingo The customer's "home away from home"
• Implement corporate wide training for all staff members (at individual hotel level)o Emphasize importance of a clean and friendly hotelo Encourage staff to take the guest journeyo Discuss what your guests expect and how to meet those expectationso Increase expectations
• Evaluate progress - secret shopperso Management shares results with staff
Give guidance, recognition, enforce expectations and reprimand
• Incentivize management and staffo Make it a competition and provide rewards (free hotel stays, gift cards,
etc.)
Recommendation 3: Increase pricing
Price vs. Preference
Hotel Rates
Business Travelers Leisure Travelers
Income and Marital Status
$0- $50,000
$50,001 - $75,000
$75,001 - $100,000
$100,001 - $125,000
Above $125,000
Recommendation 3: Increase pricing
Hotel 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
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
Married 19.1%
Not married 80.9%
Marital Status of Leisure Trav-elers
$0-$50,000
$50,001 - $75,000
$75,001 - $100,000
$100,001 - $125,000
Above $125,000
Annual income distribution of Business travelers
Recommendation 3: Increase pricing
How?
• 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
Recommendation 4: Launch "Free Night" Loyalty Program
Leisure Travelers
Leisure Travelers
Leisure Travelers
# of nights to earn free night
29%
# of nights to reach “elite status”
29%
Program expiration date21%
Elite room upgrades7%
Elite amenities6%
Elite check-in bene-fits2%
Elite perks6%
Overall Feature Importance
Leisure Travelers
Recommendation 4: Launch "Free Night" Loyalty Program
Elite Perks
Elite Check-in Benefits
Elite Amenities
Elite Room Upgrades
Program Expiration
# of Stays to Earn Free Night
# of Stays to Reach Elite
• A program designed for less frequent hotel travelers
• Program details:o 5 nights earns you a free nighto No expirationo No other benefits
• Simple, attractive program
• Solution for 60% of the guests
• Real, attainable benefits for the consumer
• Low cost for Best Western
• Industry-first program
Recommendation 5: Launch " Best VIP " Loyalty Program
Business Travelers
Business Travelers
Business Travelers
Type of hotels stayed at during the past year
Business Travelers
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
“Best VIP "Loyalty program
Best VIP Loyalty Program
# of nights required to earn a free night 10 0.24
Program expiration date 3 years 0.25
# of annual nights to reach “elite status” 25 0.27
Complimentary 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 0.08
Total TPU ( Customer happiness) 1.33
Other elite loyalty programs
Hilton
Expiration time 1 year 0.07 # of nights required to earn a free night 5 0.03 # of annual nights to reach “elite status” 50 0.12
Late check-out 0.08Express check-out, and check-in 0
“Elite status” benefit complimentary drinks at minibar 0.09Executive Floor Lounge Access 0.04
Free internet 0.2Space-available upgrade to a preferred room 0.2
Total TPU ( Customer happiness) 0.83
Marriott
Expiration time 1 year 0.07 # of nights required to earn a free night 5 0.03 # of annual nights to reach “elite status” 75 0.07
Late check-out 0.08Express check-out, and check-in 0
“Elite status” benefit complimentary drinks at minibar
0.09
Executive Floor Lounge Access 0.04
Free internet 0.2Space-available upgrade to a preferred room 0.2
complimentary amenity welcome bag 0.07Total TPU ( Customer happiness) 0.85
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
Appendix
Business Travelers Free Amenities
Great for Families
Reasonably Priced
Brand I Prefer
Feeling of HomeFor Business TravelersFriendly StaffCleanRewards Loyal
Customers
Sheraton
Comfort Inn
Best Western
Holiday InnHampton Inn
Marriott Hilton
Hyatt
Leisure Travelers Free Amenities
Great for Families
Reasonably Priced
Brand I Prefer
Feeling of Home
For Business Travelers
Friendly Staff
Clean
Rewards Loyal Customers
SheratonComfort Inn
Best Western
Holiday Inn
Hampton Inn Marriott
Hilton
Hyatt
CA Business travelers
CA Business travelers
Regression Statistics
Multiple R 0.40383014 R Square 0.16307878 Adjusted R Square 0.14799912 Standard Error 1.41869981 Observations 792 ANOVA
df SS MS F Significance F Regression 14 304.729798 21.76641 10.814486 9.43942E-23 Residual 777 1563.875 2.012709 Total 791 1868.6048
CoefficientsStandard
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
CA Leisure travelers
intercept. # of nights required to earn a free night 5# of nights required to earn a free night 10
. # of nights required to earn a free night 15 # of annual stays to reach “elite status” 25 # of annual stays to reach “elite status” 50 # of annual stays to reach “elite status” 75
Program expiration date never Program expiration date never 3 years Program expiration date never 1 year
“Elite status” room upgrades free suite upgrade upon avalability“Elite status” room upgrades free upgrade to best available non-suite room
“Elite status” room upgrades none complimentary amenity free internet
complimentary amenity free breakfast complimentary amenity welcome bag
"Elite status" check in/out benefits express check in"Elite status" check in/out benefits none
"Elite status" check in/out benefits 8am check in and 4 pm check out“Elite status” benefit complimentary drinks at minibar
“Elite status” benefit Free airport shuttle service “Elite status” benefit access to executive lounge
0.00 0.20 0.40 0.60 0.80 1.00 1.20
CA Leisure travelersRegression Statistics
Multiple R 0.40383014 R Square 0.16307878 Adjusted R Square 0.14799912 Standard Error 1.41869981 Observations 792 ANOVA
df SS MS F Significance F Regression 14 304.729798 21.76641 10.814486 9.43942E-23 Residual 777 1563.875 2.012709 Total 791 1868.6048
CoefficientsStandard
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
Do you stay in hotels at least 2 nights per year for business travel?
Do you have a college (4 year undergraduate) degree?
Are you between the ages of 22 to 35?
During the past year, how many nights have you stayed at a hotel?
Which of the following hotels have you stayed at during the past year? (Select all that apply)
Which of the following social media platforms do you use? (Select all that apply)
Which of the following travel websites have you visited in the past year? (Select all that apply)
Which of the following sources do you read for entertainment or news? (Select all that apply)
For which of the following reasons do you use your mobile phone device? (Select all that apply)
Which of the following television stations do you watch daily? (Select all that apply)
Which of the following hotel loyalty programs do you currently belong to? (Select all that apply)
Which of the following devices do you own? (Select all that apply)
Which of the following TV programs do you watch regularly? (Select all that apply)
Please indicate your age range.
Please indicate your gender.
Please indicate your annual household income. (Optional to answer)
Please indicate your ethnicity.
Please indicate your marital status.
Including yourself, please indicate how many people are in your household.
Please indicate how many children you have.