brazil sales review – 1st quarter 2009

1 Gustavo Syllos - AMLAT April 2009

BRAZIL SALES REVIEW – 1st Quarter 2009

SALES FOCUS


Introduction

Leader in Hospitality in Latin America

Accor = 166 Hotels / Brazil market = 10k Hotels

Known as Corporate Hotel in Brazil and LATAM

Only 3 hotels well positioned as leisure (Foz, Spa do Vinho, Guaruja)

Tour Operators volume decrease in last 4 years

Since 2006, several changes in Sales Structure

Central Sales reduced 25% / high turn over in Hotel Sales

Hotel Sales reporting to Operations until 2008

Since 2007, Sales & RM working together

First Hotel chain to work with dynamic pricing and not to work with Agencies Special Rates (AGV)

Rates grading and CO levels built by RM + Sales


Market Overview – HOTEL BUSINESS

TMC’s: Only in Brazil they are formally organized.

Competition still practices Travel Agencies Rates (AGV). Quite few are developing SBT.

Travel ManagersWell organized in Brazil (NBTA basis)

and Argentina. Pushing for 2 years contract and flat rates.

OLTABiggest are HOTELDO and E-HTL.

Online connection projects still in development.

Tour OperatorsDominate small hotel chains pushing

prices down. Pushing on flat rates

DMC’sDue to dollar devaluation, started to

sell to Corporate. Flat Rates in dollar hard to negotiate. Quite few are online.

• Payment / Remuneration• Comission: 10%• Form of payment: Invoicing for most

countries : Credit Card 50% / Invoicing 45% / Cash 5% (Midscale Brazil)


MAIN COMPETITIVE SET BRAZIL


10 People8 Sales People

8 GSAs

Sales presence of other playersBe

stW

orse

Sales & Presence : Accor vs. main competitorsBrazil - 2008, Based on available data -

Sales (Corporate) Sales (Hotel Sales)Hotels

5 Sales People 36 Sales People16

5 People 50 People25

25 Sales People 100 Sales People65

4 People 10 People4

15 Sales People 100 Sales People144 (87mid)

4

6 Gustavo Syllos - AMLAT April 2009 Opinions collected during sales calls

IMAGE


SALES ISSUES

Market volume Reduction of RN in big Corporate

Accounts- Migration to cheaper hotels / Ibis and

independent competitors

Reduction of International Corporate Travel (Air France – 40%!)

Loading delays for new rates

Tracking CUBES FR x COGNOS BR - Need to define perimeter- Misinformation impacts Performance analysis &

Missing KPI’s unification - RR with governmental taxes (Operations) without

taxes (Sales)- Total Revenue (including F&B, rooms) x RR only

Sales Portfolio & contracting Coverage perception- Left segments without sales attendance

(leisure, government etc)- 23% Hotel refusal in RFPs for 2009

Image Lack of consistent presence in media

and trade publications


LATAM SALES ORGANIZATION


TEAMS RELATIONSHIP AND ACTION


SALES FOCUS

•Midscale / Upscale

Ibis does not provide reporting - impossible to track volume

•Sofitel Alignment with Sofitel Hotel

Sales teams for:- RFP / MICE sales / Intraregional

Sales / Outbound Sales

•Areas New Sales Area Managers to speed

decisions processes and alignment with regional RM and Operations

•Tools ASA to allow shared management

/ performance management

New BI tools to allow Hotel Sales to work in KAM model


CORPORATE PROGRAMS 1st Q 09

0

50

100

150

200

1 2 3 4 5 6 7 8 9 10 11 12

Mês

RN

´s

2007 2008 2009

0

200

400

600

800

1 2 3 4 5 6 7 8 9 10 11 12

Mês

RN

´s

2007 2008 2009


2009 status – Booking Channel Top TMCs 1st Q


PERFORMANCE vs COMPETITION

TMC BRASIL – TOTAL HOTEL SALES – Brazil 2008

Room nights Vendas (R$) Média (R$) %

Accor 432.400 66.438.587,74 153,65 13,86%

Atlantica 312.662 49.591.575,62 158,61 10,34%

Blue Tree 138.177 22.268.693,52 161,16 4,64%

Meliá 99.292 15.059.612,43 151,67 3,14%

Estamplaza 80.679 16.632.964,34 206,16 3,47%

Transamerica 37.224 7.310,438,04 196,39 1,52%

Outros hotéis 2.103.329 302.197.093,45 143,68 63,02%

TOTAL 3.203.763 479.498.965,14 149,67 100,00%

brazil sales review – 1st quarter 2009

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