catch the momentum
DESCRIPTION
Catch the Momentum. If you choose not to act, you have taken a dramatic action. Ah…Life at the Network. 45 Minutes to…. Status of ABCN and “the World” Status of our Competitors (Regus) Identify the ‘next big things’ Create total Industry Transparency Turn your numbers ‘upside down’ - PowerPoint PPT PresentationTRANSCRIPT
Catch the Momentum
If you choose not to act, you have taken a dramatic action.
Ah…Life at the Network.
45 Minutes to…
Status of ABCN and “the World”
Status of our Competitors (Regus)
Identify the ‘next big things’– Create total Industry
Transparency– Turn your numbers
‘upside down’• Monetize our
companies.
So, hang on. It’s a wild ride!
You can only see the ‘tip’
8,000 CentersAsia is aheadEurope is catching upUK has too much $$NA is consolidatingLatin America is …?
“0” net center growth – Landlord exchange
“0” Growth…seems wrong!
“Follow the leader”
There is WS growth
Artificial “High”
Real Growth this year.– Consolidation effect
• Supports pricing
VO, the new – old thing
What does the future look like?
It’s looking really good…
ABCN 600 centers, 35 countries– 15% external growth– 10% internal growth– 1,000 centers, 50 countries, 24 months
Regus 750 centers, 50 countries– 15% overall growth– 1,000 centers, 50 countries, 24 months
What will the outcome be?
Only two real players globally
Only two able to serve the ‘corporates’
Only two able to impact market pricing
Only two able to ‘create’ new products
Only two able to ‘establish standards’
Only two able to extend their brands
Is RGU is ‘friend or foe’?
Competitors or Colleagues?
Are we going to be constructive or destructive forces?
What can we do together if we all band together at ABCN/SON?
What should we do with Regus?– Anything?
Where is Regus’ focus and where should ours be?
Regus – WS GROWTH and top line– Acquisitions at 30% arbitrage– More centralization
• UK Staff all fired last week…same ‘old’ central staff takes over.
ABCN/SON – WS Growth, new products…“bottom line”.– Faster, leaner model that is
fully distributed.– Limited capital, limited
commitment by Members • Must change for success
How will ABCN/SON succeed?
Commit to common goals
Establish standards
Get rid of ‘the box’…
Here’s where we will concentrate…
The Next “BIG” Thing
“Industry Transparency”
We don’t need no stinking WEB BROKERS…or do we?
Sometimes you’re the windshield..
.…Sometimes you’re the bug!.
What is “transparency”?
You need to ‘see everything’ in one place– All parties• Agencies (Brokers)▪ Clients (on the web)
» Hotels (OBC Operators)
Sometimes two industries can learn a lot from one another.– We think the OBC and the Travel industries are such a
case.
Here’s the travel model
120,000
Clients
Clients
Clients
Clients
CorporateAgencies
RetailAgencies
WebAgencies
Direct to Hotel
GDS
SaberGalileoet. al.
PegasusSolutions
PegsPayCommission
Processing, etc
PegsTourNetBooker, etc
RezViewHotel Factory
UtellUnirez
Hotelbook.com
Hotel Properties
PaymentProcessing
PaymentProcessing
PaymentProcessing
75,000
What was the outcome
Increased Visibility– Ease of market differentiation– High Speed decision making– Superior Customer Service and Satisfaction– Faster Payment
Increased Revenue– Price Point Optimization– Instant Inventory analysis
Lower Operating Costs– Reduced Commission rates– Reduced Operations and Administration
Our industry model today
Client
Client
Client
WebBroker,etc.
ConventionalBroker
Direct
Serviced OfficeOperator
Direct Payment
Direct Payment
10
50
Consider a new model
Client
Client
Client
WebBroker,etc.
ConventionalBroker
Direct
Serviced OfficeOperator
OBCSolutions
CommissionProcessing, etc
PegsTour
OBC Factory
UtellUnirez
OBCbook.com
PaymentProcessing
PaymentProcessing
ClientTravel
Agencies
PaymentProcessing
50
10,000
120,000
Net Gains are huge
Visibility– Increased Conventional Brokerage Community
• All Brokerage types would have equal and full access
• All Brokerage types would have instant inventory and communications access for reservations and booking.
– Totally New Travel Agency Community (others)• Entirely new sales channel
▪ Increase usage of conference and meeting rooms» Most productive space if fully occupied
– Established Web Broker Community• Newer Web Broker models at lower commissions
and higher profitability means more successful agencies selling to more clients.
OK, let’s review
A new ‘transparency model’ gives you– Lower costs of sale (commissions)– Lower operating costs– Improved inventory control– Improved (real time) optimized pricing models– Higher client visibility– More sales outlets– New sales channels– Better communications systems
We have the partner…
We have the ‘resources’.
And, plenty of them.
And, if we work together…. …we can do anything…
Even walk on water!
Let’s pick up the pace… and get UPSIDE DOWN!
Even walk on water!
Get UPSIDE DOWN now!
Do You want capital or not?
“May all your wishes come true”…a Chinese Curse
We’ve been on a Road Show
Establish a $$BB investment fund for our Members.– Operating Company Focus – RE Asset sub-focus
Have several offers from ‘top 10’ firms.
Here’s the ‘catch’.– Too expensive– Too restrictive– Too cumbersome– No short term exit
opportunity for anyone.
Turning “Upside Down” isn’t rolling over.
There’s challenging navigation ahead
Here’s what we mean.
What’s your ‘revenue ratio’ of Space to Service?– 60/40, 65/35, 70/30?– Most common is 65/35…and the 35 is going down.
What should it be?– It should be reversed to a 30/70 ratio.
• Why? Turns you into a ‘non-cyclical service company’.• How? By focusing on:
▪ VO…the really big one.
▪ IT…second and rising
▪ HR…hardest to do
▪ Contract Management…least profitable but easy
▪ Accounting Standards… the easiest and fastest.
! 1st let’s Focus on VO
Global ABCN Backbone– Anywhere Office Access– You ‘own’ the client
Dedicated Sales and Marketing– Separate Website
• Separate Optimization
– Separate Marketing Strategy
– Who are potential partners• “Agency Companies”• “Registration
Companies”• IT Companies
Some things you just can’t avoid!
Here’s an example
TOTALLY different site
TOTALLY different staff
TOTALLY global market
2nd Focus on IT and HR…with a dedicated “Client Service Portal”
Focus on HR & Services
Focus on IT Services
We have the ‘resources’…do you have the commitment?
Thanks…
Questions???
Remember, it’s the second mouse that gets the cheese… ABCN?