Smarter meetingsRevenue generator for the hospitality industry

Feb. 2015 Lieven Bertier – Global Marketing Manager

Investment sentiment at all-time high ...

Investor sentiment for trading has surged to an all time high, with positive trading sentiment for all three regions broadly aligned

Source: Jones Lang Lasalle – Hotel Investor Sentiment Survey June 2014

As hospitality market keeps on growing

Source: Euromonitor International, travel and tourism: global hotels

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0Global Business Trips

Global Business and Leisure Trips2011/2016

600

500

400

300

200

100

0

Global Hotel value Sales 2011-2016

Global Leisure Trips 2012 2013 2014 2015 20162011

2011

2016

Business hotels

“In the current market scenario, 40% to 50% of the total revenue is generated through non-room related revenue”.(Dhiraj Trivedi, director - group e-marketing, The Park Hotels, India)

50%room revenue

40-50%non room revenue

Generate more than 50% of revenue from business guests

Your average business traveler will change

67 percent of business travelers are male and more than half of this group are between the ages of 32 and 54.

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Sources: Deloitte: Hospitality 2015, game changers or spectators? – PWC: Room to grow

Mobile everywhere2

Source: Smartbrief Media Services: 10 hospitality technology trends you need to know about

87%Nothing: it should be free

How much are you willing to pay for Wi-Fi?

8% - 15$ or more for premium service

4% - $15

1% - $10

“Guests, especially business travelers, want simplicity. They want to be able to turn something on and go. They don’t want tech for the sake of tech, and we get that.”

Niki Leondakis, CEO of Commune Hotels & Resorts

Simplicity rules3

Employee retention4Hotels will face the challenge of employee retention in the future. Hotel employees have historically been asked to work harder for less money than most other occupations. It is not unusual for the front desk clerk to also be the person that sets up the breakfast buffet, cleans the lobby, does the bookkeeping and also must greet every guest with a big smile. Housekeeping is often asked to clean three or four rooms per hour in an 8-hour day

Source: Deloitte: Hospitality 2015, game changers or spectators?

Think beyond hotel guests5“Most hotels, lobbies and boardrooms, a lot of them sit empty during the day. Why not allow people to come in during the day and allow them to use our space? It creates awareness, generates food-and-beverage sales—all types of things.”

Peggy Roe, VP of global operations services for Marriott

Source: www.hotelnewsnow.com/Article/10727/Non-guests-driving-incremental-revenues#sthash.JJFQqI5m.dpuf

MICE is changing6 Meeting demand is at its peak since 2008 — and growing across all

sectors.

New age technology — Meetings and events are getting more tech-savvy than ever before. Apps downloaded on smart phones and iPads, easily accessible mobile sites and meeting-dedicated Facebook pages are all around. Note taking through iPads, projectors and the latest audio-visual technological tools – events have been totally transformed by technology.

The Meeting Package is back — The last couple of years saw a decline in the meeting package but it has made a strong comeback again this year.

Source: http://www.worldluxurytourism.com/mice/mice-trends-and-its-immediate-future.html

But the one word coming back in every conversation: BRAND differentiation7The next five years will herald the era of a consumer-led brand focus for the hospitality industry. Consumers are changing faster than ever before in both attitude and behaviors.

Source: Deloitte: Hospitality 2015, game changers or spectators?

How to differentiate?

Traditional ways of differentiation are gone

The websites of many top end hotel chains are currently difficult to distinguish from one another, with frequent repetition of the words ‘luxury’ and ‘experience’ and relatively similar messaging. We believe that much greater differentiation will be needed over the next five years to capture the loyalty of the traveller.

Source: Deloitte: Hospitality 2015, game changers or spectators?

The answer to the business traveler: ‘smart’ meeting room packages

ParkInn by Radisson: Smart Meetings and Events

Marriott: ‘inspired by people’ meeting spaces

Meeting@Novotel

Can technology help further differentiate?

8 out of 10 European business leaders expect technology to make meetings more productive

80%Of the European business leaders expect technology to make meetings more productive

30%Find hotel technologyessential

50%Find hotel technologyImportant

Source: Meeting room of the future survey by BarcoSource: Smartbrief Media Services: 10 hospitality technology trends you need to know about

Screen mirroring as one of the exciting technologies

1. Marketing advantage

2. Loyalty driver

3. Cost saver

4. Attracting new customers

5. Revenue generator

Marketing advantage1

Vandervalk, Eindhoven, Netherlands

London Marriott Hotel Kensington

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Loyalty driver2“Many customers are coming back since we updated the meeting package. They’ve experienced the reliability of our systems and the comfort and convenience to hold their meetings here, hassle free and problem free.”

Erich Zuri, General Manager of Marriott München

Cost saver3“Quite often we have customers coming in and asking for a meeting room, immediately. In these cases, there is no time to set up the room or the technology, it just has to be ready… or we lose the client. With ClickShare, we don’t need much time to set up the system or instruct the customer. It is ready and easy to use. We can explain it in three simple steps.”

“During a recent board meeting, a pharmaceutical company had four different types of presentations to show. They were really excited about the flexibility to change presentations during the meeting without interruption or any changing of cables.”

Kathrin Hanisch, Director of Event Management, Marriott Munchen

Attract new customers4 “We’ve all sat outside a coffee shop with free Wi-Fi to be on a conference

call. In hotels there is a lot of underutilized space during the day, and we thought it would be a good way for our hotels to invite people in.”

Marriott’s new Workspace on Demand service allows non-hotel guests, such as small businesses and entrepreneurs, to book meeting space at Marriott properties on half-day or full-day basis. Larger groups can book meeting space that includes audio-visual equipment and Wi-Fi.

Peggy Roe, VP of global operations service for Marriott International

Source: www.hotelnewsnow.com/article/10764/10-trends-in-hotel-technology#sthash.LCYZbazU.s2fhLQ0t.dpuf

Revenue generator5Our focus on Meetings, Incentives, Conferences and Events (MICE) Business has generated an average annual increase in revenue of around 25% since 2004.

Source: www.rezidor.com/phoenix.zhtml?c=205430&p=devrevenue#sthash.z6ELhvI3.dpuf

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