travel and luxury hotel market research
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Travel and luxury hotel market researchTRANSCRIPT
TRAVEL CATEGORY & LUXURY HOTEL MARKET REVIEW
Chemistry Meeting – 23rd February
CONTENTS
1. Media trendsa) Travel category by market
b) Hotels category by market
c) Luxury hotels competitive set
2. Summary
3. Detail by Group
TRAVEL CATEGORY SPENDS - UK
USD 940
USD 945
USD 950
Mill
ions 1Oct2009-
30Sept2010
1Oct2010-30Sept2011
0.7%
1Oct2009 - 30Sept2010
Key Insights
• A marginal change in spends with a rise of 0.7%, which is unsurprising as the UK continues to recover from the recession; travel is a disposable luxury
• A decrease in spending against Internet platforms including tourism websites and travel advertisers based online
• Increased spending against overseas holidays, which is likely to be international destinations trying to encourage people away from the “staycation” trend
• European travel was severely affected in 2010 by the ash cloud (April), and in the UK particularly by on-going high profile industrial action from British Airways
• The trend in 2011 is far shorter trips to cut down on spending (World Travel Trends Report 2010/2011)
Source: Addynamix, Nielson Media Research, World Travel Trends Report 2010/2011
1Oct2010 - 30Sept2011
USD 949,235,975
USD 942,427,792
HOTEL CATEGORY SPENDS - UK
Source: Addynamix, Nielsen Media Research
USD 0
USD 30,000
USD 60,000
USD 90,000
USD 120,000
1Oct2009-30Sept2010 1Oct2010-30Sept2011
Thou
sand
s
Other
TV
OOH
Radio
Internet
13.6%
USD 91,755,283
USD 104,276,197
Key Insights• Category dominated by Warner Leisure Hotels with Whitbread Hotels being second, compared to being
first in the last period• Increase in spends in the category as a whole with a marked growth in digital investment
1Oct2010 - 30Sept2011
1Oct2010 - 30Sept2011Warner Leisure Hotels Whitbread Hotel Company
Travelodge Hotels Holiday Inn Worldwide
Hilton Intl Hotels Saga Holidays Ltd
Shearings Park Inn
Intercontinental Hotels & Resorts Marriott Hotels Ltd
Other
TRAVEL CATEGORY SPENDS - US
USD 3,500
USD 4,000
USD 4,500
Mill
ions 1Oct2009-
30Sept2010
1Oct2010-30Sept2011
Key Insights
• An increase in spends with a rise of 7%, which is a positive recovery as we emerge from the recession
• In general the split by sub category has remained consistent throughout the survey period
• An increase in Domestic Airline Passenger Travel spends is explained in part by the substantial expenditure of Americans Airlines and Southwest airlines in 2011, who make up 57% of the “top 10” advertisers expenditure (full Top 10 details not shown but can be added if required)
• The biggest spend is on domestic hotels and resorts in both periods
Source: Kantar Media, World Travel Trends Report 2010/2011
1Oct2009 - 30Sept2010 1Oct2010 - 30Sept2011
1Oct2010 - 30Sept2011Hotels & Resorts, Domestic Tourism Promotion, Domestic (Area)Airline Passenger Travel, Domestic Travel ServicesOnline Travel Services Tourism Promotion, Foreign (Area)Cruise Ship Travel Amusement, Water & Theme ParksHotels & Resorts, Foreign Airline Passenger Travel, ForeignOther
7%USD 4,290,280,600
USD 4,008,035,200
HOTEL CATEGORY SPENDS - US
Source: Kantar Media
1Oct2010 - 30Sept2011USD 1,562,345,200
USD 1,314,776,590
18.8%
Key Insights• A very busy category. Topped by Disney, Universal and Harrahs Casino Hotel/Resort; Disney was 12th in the last period,
with higher spends from Best Western, Hampton and Sandals hotels• Media channel use remains similar year on year despite a substantial increase in capital spends
1Oct2009 - 30Sept2010Disney Universal Hotel/Resort
Harrahs Casino Hotel/Resort Holiday Inn Hotel/Resort
Hilton Hotel/Resort Hotels.com Hotel/Resort
Cosmopolitan Hotel Resort Westin Hotel/Resort
Best Western Hotel/Resort La Quinta Hotel/Resort
OtherUSD 0
USD 400,000
USD 800,000
USD 1,200,000
USD 1,600,000
1Oct2009-30Sept2010 1Oct2010-30Sept2011
Thou
sand
s
Other
TV
OOH
Radio
Internet
TRAVEL CATEGORY SPENDS - SPAIN
USD 390
USD 395
USD 400
Mill
ions 1Oct2009-
30Sept2010
1Oct2010-30Sept2011
-1%
1Oct2009 - 30Sept2010 1Oct2010 - 30Sept2011
1Oct2009 - 30Sept2010Car Rent Other Transport, Travel and Tourism
Sponsorships and Events Passenger Transport Services
Goods Transport Travel and Tourism
Key Insights
• A slight decrease in spends with a drop of -1%; This is not surprising given on-going concerns over the economic stability of the Eurozone. This trend is expected to be exaggerated in 2011 / 2012
• The vast majority of spend is allocated to travel and tourism in both years; hotels are included in this category
• Spain is the 4th top international tourism destination (UNWTO World Tourism Highlights, April 2011)
Source: Infoadex, UNWTO World Tourism Highlights ( April 2011)
USD 398,091,680
USD 393,262,625
HOTEL CATEGORY SPENDS - SPAIN
Source: Infoadex
1Oct2010 - 30Sept2011USD 38,249,568
USD 32,786,057
Key Insights• Dominated by Melia Hotels International (Spanish heritage international chain) and NH hotels• A significant drop in hotel spends versus total travel category spends, though media splits remain relatively steady
-14.2%
USD 0
USD 5,000
USD 10,000
USD 15,000
USD 20,000
USD 25,000
USD 30,000
USD 35,000
USD 40,000
USD 45,000
1Oct2009-30Sept2010 1Oct2010-30Sept2011
Thou
sand
s
Other
TV
OOH
Radio
Internet
1Oct2009 - 30Sept2010Melia Hotels International S.A. NH Hotels S.A.
GTI Travel Group Paradores Hotels
Iberostar Hotels & Resorts Mediterraneo Hotels S.L.
Barcelo Gestion Hotels S.L. Senator Hotels
Sword Group Accor Inc Riu Hotels SA
Other
TRAVEL CATEGORY SPENDS - FRANCE
USD 500
USD 1,000
USD 1,500
Mill
ions 1 Oct 2009 - 30
Sept 2010
1Oct2010-30Sept2011
-17% Key Insights
• A significant decrease in category spend period on period, with the expectation that this trend will continue given Eurozone instability
• Proportionally the spend against travel agents has lost ground to airlines and tourist offices, which may point to a trend of people building “DIY” holidays as opposed to taking packages
• 2010 has seen as increase in Inbound tourism. The weakened Euro compared with the US dollar sees Russian, American, Indian and Chinese travellers coming to France to capitalise on favourable exchange rates for hotels and shopping
• France has amongst the highest level of domestic tourism in Europe, and the economic downturn has reinforced this trend. Adversities such as swine flu, the volcanic ash cloud and political instability have contributed to a preference for “staycations” (Euromonitor International, April 2011)
Source: The Nielsen Company, Euro Monitor International (April 2011)
1Oct2009 - 30Sept2010
1Oct2009 - 30Sept2010Travel Agents Airlines Shipping Companies
Hospitality Car Rental Tourist Offices
Public Transport
1Oct2010 - 30Sept2011
USD 1,390,236,375
USD 1,153,627,788
HOTEL CATEGORY SPENDS - FRANCE
Source: Nielsen Media Research
0
50,000
100,000
150,000
200,000
250,000
1Oct2009-30Sept2010 1Oct2010-30Sept2011
Thou
sand
s
Other
TV
OOH
Radio
Internet
USD 210,081,045
USD 160,342,421
-23.6%
1Oct2010 - 30Sept2011
1Oct2009 - 30Sept2010Accor Louvre HotelsB&B Hotel Logis De FrancePullman Andre Trigano CorporateMariott TouradventureRelais & Chateaux De France RadissonOther
Key Insights• Absolutely dominated by Accor, the French heritage chain• A more marked decrease in category spend period on period versus total spends in the travel category• Traditional media has been maintained (TV/print), while proportional digital investment has been severely affected POP
TRAVEL CATEGORY SPENDS - ITALY
USD 160
USD 200
USD 240
USD 280
Mill
ions 1Oct2009-
30Sept2010
1Oct2010-30Sept2011
-5.9%
Key Insights
• A decrease in spends, which may be more marked in the next 12 month period due to political instability and the Eurozone crisis
• The shipping/cruise sector accounts for the majority of spending where water-based travel is continuing to boom with a 10% rise for cruise and other ships (World Travel Trends Report 2010/2011). However, it is unknown whether this is industry or leisure driven
• A 128% increase in online tourism spends, where the boom of low cost carriers has increased internet usage among Italian tourists
• Online travel sales are set to increase further as greater accessibility is introduced with the development of mobile internet technologies and m-payment systems where financial transactions are made by mobile phone, (Euromonitor International, April 2011)
Source: Nielson, World Travel Trends Report 2010/2011, Euromonitor International April 2011
1Oct2009 - 30Sept2010 1Oct2010 - 30Sept2011
1Oct2010 - 30Sept2011 Shipping/Cruise International Campaign Airlines Tour Operator Italian Amusement Park Italian Tourist Resort Hotel Chains Overseas Tourist Resort Online Tourism International Airlines Railways Ski Resort Other
USD 279,381,522
USD 262,777,536
HOTEL CATEGORY SPENDS - ITALY
Source: Nielsen Media Research
1Oct2010 - 30Sept2011
USD 0
USD 5,000
USD 10,000
USD 15,000
USD 20,000
USD 25,000
USD 30,000
USD 35,000
1Oct2009-30Sept2010 1Oct2010-30Sept2011
Thou
sand
s
Other
TV
OOH
Radio
Internet
USD 31,140,876USD 32,079,466 -2.9%
1Oct2009 - 30Sept2010Delphina Hotels Palau OT Aurum Hotels NapoliBoscolo Hotels Spa Padova DimHotels Ischia NAPark Hotel Michelangelo Ischia Hotel Mercure RiminiHotel Colle Trinita AccorGetur Hotels Hotel Excelsior PesaroOther
Key Insights• Movement at the top year on year, with highest spends from Delphini and Arum hotels, compared to ATA and Hilton in
the last period • A decrease in spends with an interesting increase in OOH. The category decrease is less marked than travel as a
whole
HOTEL CATEGORY SPENDS - SINGAPORE
Source: Nielsen Media Research
1Oct2009 - 30Sept2010Marina Bay Sands Hotels.com (W)The Shoppes/Marina Bay Sands NTUC Downtown East ResortClub Med Genting Int'l (S) P/L/Genting M'sia BHDHotelclub.com (W) Pan Pacific S'pore HotelAscott Int'l/Ascott Int'l MGMT Marina Bay Sands P/L (Mooncake)Other
1Oct2010 - 30Sept2011
Key Insights• #1 advertiser in 2010, Resorts World Sentosa, not even in the 2011 top 10 list. Other major advertisers, Marina Bay
Sands and hotels.com, have maintained spend levels YOY• Positive growth in the category, with a high level of investment in OOH and increasing commitment to TV
USD 0
USD 2,000
USD 4,000
USD 6,000
USD 8,000
USD 10,000
USD 12,000
1Oct09-30Sept2010 1Oct2010-30Sept2011
Thou
sand
s
Other
TV
OOH
Radio
Internet
USD 9,833,169 USD 10,110,497 2.8%
LUXURY COMPETITIVE SET(1st)
(2nd)
Source: Addynamix, Nielsen Media Research, Kantar Media, Infoadex
(7th)
USD 8,155,954
USD 5,811,229
USD 2,535,278 USD 2,384,633 USD 2,328,016USD 1,945,730
USD 1,613,042
USD 1,000,000
USD 3,000,000
USD 5,000,000
USD 7,000,000
USD 9,000,000
Ritz Carlton MandarinOriental Hotel
Group
DorchesterCollection
W Hotels Peninsula Four Seasons Shangri-La
Spe
nds
(3rd)
(5th)
(4th) (6th)
Figure in brackets is previous period ranking)
BROADER COMPETITIVE SET INCLUDING STARWOOD BRANDS
USD 26,283,505
USD 16,257,727
USD 8,155,954
USD 5,811,229USD 4,729,312
USD 2,535,278 USD 2,384,633 USD 2,328,016 USD 1,945,730 USD 1,613,042USD 1,115,026
USD 0
USD 5,000,000
USD 10,000,000
USD 15,000,000
USD 20,000,000
USD 25,000,000
USD 30,000,000
Westin Sheraton Ritz Carlton MandarinOriental Hotel
Group
St Regis DorchesterCollection
W Hotels Peninsula Four Seasons Shangri-La Corinthia
Spe
nds
(1st)
(2nd)
(3rd)
(5th)(9th)
(4th) (6th) (8th) (7th) (10th)(11th)
FOUR SEASONS
USD 5
USD 205
USD 405
USD 605
USD 805
Oct
Dec Feb
Apr Jun
Aug
Thou
sand
s
1Oct2009-30Sept20101Oct2010-30Sept2011
Key Insights• Significant shift towards digital• Shift in the priority media period from October to
Summer, combined with move to digital could indicate pre Summer offer messaging
• A significant increase in spends for Singapore, Italy, and France; USA and UK budgets reduced to fund this
• Celebrated 50 years of hospitality: “New Living Website” launched 04/11 with potentially short term sales messages
• Four Seasons Marrakesh opened in June 2011 • Four Seasons may be active in other markets, not
tracked by Walker Media for MOHG
Source: Addynamix, Nielsen Media Research, Kantar Media, Infoadex
2010
UK
US
France
Italy
Spain
Singapore
2011
USD 1,650
USD 1,750
USD 1,850
USD 1,950
USD 2,050
1Oct2009-30Sept2010 1Oct2010-30Sept2011
Thou
sand
s TV
OOH
Radio
Internet
USD 2,001,456USD 1,977,683-1.1%
ONLINE
ONLINE
MANDARIN ORIENTAL
Key Insights• A slight decrease of 5.5% YOY• Channel selection focuses on online and print• The increase in France was due to support of the
hotel launch in Paris• The Marrakech deal fell through, property rebadged
as a Taj Hotel• Las Vegas hotel launched in 2010 potentially
responsible for increased American expenditure for 2010
USD 0
USD 500
USD 1,000
USD 1,500
USD 2,000
USD 2,500
Oct
Dec Feb
Apr Jun
Aug
Thou
sand
s
1Oct2009-30Sept2010
Source: Addynamix, Nielsen Media Research, Kantar Media, Infoadex
USD 0
USD 1,000
USD 2,000
USD 3,000
USD 4,000
USD 5,000
USD 6,000
USD 7,000
1Oct2009-30Sept2010 1Oct2010-30Sept2011
Thou
sand
s
OOH
Internet
2010
UK
US
France
Italy
Spain
Singapore
2011
USD 6,150,678 USD 5811229
5.5%
CELEBRITY ENDORSERS
CREATIVE REVIEWSTRATEGY: To establish Mandarin Oriental as the hotel of choice for the worlds most discerning customers
METHOD: Via endorsement from high profile celebrities associated with the arts
Each celebrity is dedicated to one hotel, cleverly highlighting local benefits within an international campaign
The endorsements infer that the hotels are a “home away from home” experience with a loyal Clientele based on a combination of location, product and service
The charity endorsement seems to be a tag on (evidenced by the absence on the Louboutin ad) and perhaps was a part of the celebrity negotiation/ recruitment process
The art direction is rich, intimate and luxuriant, in keeping with the Oriental heritage and overall brand identity, however the colour palette is dissonant. Colours should be inter-related with the premium, oriental
style of the hotels suggesting deep, rich colours. The pink and caramel feel particularly off brand
Overall the strategy is compelling and distinctive and no doubt appeals to the high end customer
PENINSULA
Key Insights• A substantial 38.7% increase period on period • Traditional channel selection• The early summer push in 2011 may have supported
the 20th Anniversary of Peninsula Beverly Hills in August with reduced room rates and discounts
• UK and USA are the priority focus for ATL communications, with a decrease in UK spends in the current period
• Peninsula Paris opens in 2013• Peninsula may be active in other markets, not
tracked by Walker Media for MOHG
USD 0
USD 200
USD 400
USD 600
Oct
Dec Feb
Apr Jun
Aug
Thou
sand
s
1Oct2009-30Sept20101Oct2010-30Sept2011
Source: Addynamix, Nielsen Media Research, Kantar Media, Infoadex
USD 0
USD 1,000
USD 2,000
USD 3,000
1Oct2009-30Sept2010 1Oct2010-30Sept2011
Thou
sand
s
OOH
Internet
2010
UK
US
France
Italy
Spain
Singapore
2011
USD 1,678,219
USD 2,328,01638.7%
CREATIVE REVIEW
STRATEGY: To position The Peninsula as the group with the best hotel service
METHOD: By showcasing their staff to demonstrate their commitment to the customer experience
Each execution features smiling Peninsula staff as they go about their daily tasks with warm, informal shots offering a window into Peninsula life that gives the brand a human touch
Each portrait lists all of the Peninsula Hotels around the world to reinforce their international presence
The use of black and white with a refined type gives the work a sense of gravitas, however potentially lacks standout and real identity in a luxury market flooded with similar art direction
Overall the strategy is interesting and serves to humanise the brand, however the execution is too generic resulting in glossy wallpaper
ONLINE
DORCHESTER COLLECTION
Key Insights• A significant decrease in spends in the last year (-58.5%) • 2010 Spring surge in ATL investment simply not seen in 2011,
giving a big decrease in spend period on period • No spend in Q1 2011 • Business focus still on US but some shift in spend towards UK
media• Money going behind new creative route (in as many years)• New hotel openings include Le Richemond, Geneva (08/11), 45
Park Lane, London (09/11) and Hotel Bel Air, Los Angeles (10/11) • Dorchester Collection Fashion Prize – New York (2011). The
winner will receive $40,000 and collection displayed at Paris Fashion week (2012) at Plaza Athenee, Paris
• Dorchester Collection may be active in other markets, not tracked by Walker Media for MOHG
USD 0
USD 1,000
USD 2,000
USD 3,000
Oct
Dec Feb
Apr Jun
Aug
Thou
sand
s
1Oct2009-30Sept20101Oct2010-30Sept2011
Source: Addynamix, Nielsen Media Research, Kantar Media, Infoadex
2010
UK
US
France
Italy
Spain
Singapore
2011
USD 0
USD 2,000
USD 4,000
USD 6,000
USD 8,000
1Oct2009-30Sept2010 1Oct2010-30Sept2011
Thou
sand
s
Radio
USD 6,471,270
USD 2,681,957
-58.5%
CREATIVE REVIEW
STRATEGY: To reposition The Dorchester as ‘the’ hotel for fashionable socialites
METHOD: By featuring snapshots of the young and the beautiful, mid night time adventure, at a Dorchester hotel
The images look like fashion stills, with warm lighting, a soft lens and models styled with high-end couture “edge”
The campaign appears to target a younger, trendier audience potentially to try to overcome their traditional, old fashioned reputation and reinvigorate the brand
The reopening execution reinforces this with the swan imagery – speaking to the ugly duckling transformed
Clearly The Dorchester is trying to move beyond its existing Clientele. However the executions are so removed from category that they would potentially become lifestyle “wallpaper” in a glossy magazine
Overall the work doesn’t deliver a reason to choose The Dorchester above any other
SHANGRI LA
USD 0
USD 100
USD 200
USD 300
Oct
Dec Feb
Apr Jun
Aug
Thou
sand
s
1Oct2009-30Sept20101Oct2010-30Sept2011
Key Insights• Substantial increase period on period (62.5%)• Interesting shift against digital spends, with losing share to print • Erratic spending patterns month by month and year on year• Q4 2010 up weighted where spends were low in 2009• Greater priority given to US in 2011 over UK and Singapore• New openings include Manzhouli, China (04/11)• “It’s Our Nature” global campaign launched 05/10• Double Indulgence Summer Promotion: Double award
points/qualifying nights with any two consecutive qualifying nights’ stay during 1/06/11 – 30/09/11 at any Shangri-La, Kerry or Traders hotel worldwide
• Shangri La hotels may be active in other markets, not tracked by Walker Media for MOHG
2010
UK
US
France
Italy
Spain
Singapore
2011
USD 0
USD 500
USD 1,000
USD 1,500
USD 2,000
1Oct2009-30Sept2010 1Oct2010-30Sept2011
Thou
sand
s TV
OOH
Radio
Internet
USD 1,613,042
USD 992,528
Source: Addynamix, Nielsen Media Research, Kantar Media, Infoadex
62.5%
ONLINE
ONLINE
CREATIVE REVIEW
STRATEGY: To establish the unique warmth and welcome of Shangri-La hotels
METHOD: By creating a campaign that references their beautiful and stylish hotel experience
The use of flare and long lens in the images gives the executions a detached feel, perhaps to convey privacy and “escape”
The colour palette of black, white and gold is distinctive and premium with a clear brand identity
Whilst the campaign has a consistent feel there is a contradiction between the messages of warmth and hospitality and the cold, clean, “distant” art direction
Overall the creative messaging has been lost in the visual delivery resulting in a confused campaign that doesn’t stand out as an engaging piece of comms
RITZ CARLTON
Key Insights• An overall decrease of -29%, with channel split maintained
period on period, with some growth in digital • Significant seasonal shift in Spring and early summer 2010, not
repeated in 2011; this tactically ties in with the opening of Ritz Carlton Los Angeles in Spring 2010, and Hong Kong in May 2010
• Business focus on US• Some growth in spend against France and Singapore in 2011,
but still small investments • New openings include Riyadh (Saudi Arabia) (Summer 201)
and Abu Dhabi Grand Canal (Late 2011); planned openings include India (Bangalore) (2012), Cairo (Egypt) (2013) and Los Cabos (Mexico) (2014)
• Peninsula may be active in other markets, not tracked by Walker Media for MOHG
USD 300
USD 800
USD 1,300
USD 1,800
Oct
Dec Feb
Apr Jun
Aug
Thou
sand
s
1Oct2009-30Sept20101Oct2010-30Sept2011
Source: Addynamix, Nielsen Media Research, Kantar Media, Infoadex
2010
UK
US
France
Italy
Spain
Singapore
2011
USD 0
USD 4,000
USD 8,000
USD 12,000
1Oct2009-30Sept2010 1Oct2010-30Sept2011
Thou
sand
s Other
OOH
Radio
Internet
USD 11,456,153
USD 8,089,110
-29%
ONLINE
ONLINE
ONLINE
CREATIVE REVIEW
STRATEGY: To establish the Ritz Carlton as the most tailored, exquisite hotel experience
METHOD: By asserting that the customer can dictate their needs and wishes
The line “Let us stay with you” is a warm and welcoming message that positions the Ritz in a deferential light
The supporting messages for this are specific and insightful – showing the importance they place on understanding their audience and attention to detail
The accompanying art direction is clean and carefully composed with beautiful, detailed high resolution shots
However the overall concept is too contrived, the imagery focuses on conveying “the detail” to the exclusion of the human “personalised” experience that they seek to own
The result is a beautiful campaign that fails to land the key message as the visual outtake is too clinical and cold
W HOTELS
Key Insights• An overall decrease, but media split strategy is only marginally
impacted with a slight move towards digital• There is no clear seasonal pattern, or year on year seasonal
trends• Potentially driven by hotel specific messages• Business focus on US, with $2,292,000 spent on US compared
to $24,281 in France. This could indicate a build up for the Paris opening to increase visibility
• New W hotels opened in St. Petersburg (04/11) and Washington D.C. (Summer 2011)
• Planned openings include W Paris (02/12), W Singapore, Sentosa Cove (04/12), W Guangzhou (05/12) and W Bangkok (08/12)
• W Hotels may be active in other markets, not tracked by Walker Media for MOHG
Source: Addynamix, Nielsen Media Research, Kantar Media, Infoadex
2010
UK
US
France
Italy
Spain
Singapore
2011
USD 0
USD 1,000
USD 2,000
USD 3,000
1Oct2009-30Sept2010 1Oct2010-30Sept2011
Thou
sand
s TV
OOH
Radio
Internet
USD 50
USD 150
USD 250
USD 350
USD 450
Oct
Dec Feb
Apr Jun
Aug
Thou
sand
s
1Oct2009-30Sept20101Oct2010-30Sept2011
USD 2,824,313
USD 2,384,633-15.5%
ONLINE
OTHER
OUTDOOR
CREATIVE REVIEW
STRATEGY: To establish W Hotels as the coolest hotels in the world
METHOD: By positioning them as a fast growing, ahead of the curve, “now” hotel offering
The line “The Worldwide Wow” factor implies that they deliver glamour and luxury that is best in class globally
Each execution highlights new openings around the world indicating that they are a successful brand-of-the-moment, using minimal, snappy copy to deliver a fast paced, “movers and shakers” tone of voice
The accompanying art direction is clean and stylish with an art deco edge delivered in a modern, premium way
The heavy use of black with the cut out “W” speaks to the brand cutting through with a glimpse of the glitz and glamour inside the W experience and an nod to the fact that not everyone can access it
The overall impression is of a coherent, captivating brand offering exclusive, VIP experience for trendsetters
CONCLUSIONS
Ritz Carlton is the highest spender in our luxury hotel group
The US is the priority market for all of our competitors
There has been some movement to digital in the current period for key competitors
Though accurate tracking still remains problematic for this channel
New hotel openings next year (2012):
W Hotels: Paris, Singapore and Bangkok
St. Regis: Abu Dhabi and Mauritius
Sheraton: Redding-California, King of Prussia-Pennsylvania and Coraopolis-Pennsylvania
Ritz Carlton: Bangalore (India)
ADDITIONAL DETAIL ON STARWOOD BRANDS
ST. REGIS
USD 0
USD 2
USD 4
USD 6
Mill
ions 1Oct2009-
30Sept2010
1Oct2010-30Sept2011
USD 0
USD 200
USD 400
USD 600
USD 800
USD 1,000
USD 1,200
Oct
Dec Feb
Apr Jun
Aug
Thou
sand
s
1Oct2009-30Sept20101Oct2010-30Sept2011
2010
UK
US
France
Italy
Spain
Singapore
2011Key Insights• A major increase in spends in the current
period • High spends reported in May this year, which
could be partly explained by the opening of St. Regis Bangkok at that time
• Spends in the UK, US and Singapore only in both periods, with a decrease in Singapore spends in the current period
• Planned openings include St. Regis Abu Dhabi, St. Regis Mauritius (both Spring 2012)
USD 1,519,140
USD 4,729,312
211%
Source: Addynamix, Nielsen Media Research, Kantar Media, Infoadex
ST REGIS - ONLINE
SHERATON
USD 0
USD 10
USD 20
USD 30
Mill
ions 1Oct2009-
30Sept2010
1Oct2010-30Sept2011
USD 0
USD 1,000
USD 2,000
USD 3,000
USD 4,000
USD 5,000
Oct
Dec Feb
Apr Jun
Aug
Thou
sand
s
1Oct2009-30Sept20101Oct2010-30Sept2011
2010
UK
US
France
Italy
Spain
Singapore
2011
USD 23,056,736
USD 16,257,727
-29%
Key Insights• Absolutely driven by US investment. All other
surveyed markets report spend albeit at very low levels. The UK is only reported in 2011, not 2010
• New hotels in 2011; Nebraska (08/11), Ohio (09/11)
• Planned openings include Redding, California (2012), King of Prussia, Pennsylvania (06/12), Coraopolis, Pennsylvania (08/12)
Source: Addynamix, Nielsen Media Research, Kantar Media, Infoadex
ONLINE
WESTIN
USD 20
USD 22
USD 24
USD 26
USD 28
USD 30
Mill
ions 1Oct2009-
30Sept2010
1Oct2010-30Sept2011
USD 1,000
USD 2,000
USD 3,000
USD 4,000
USD 5,000
USD 6,000
Oct
Dec Feb
Apr Jun
Aug
Thou
sand
s
1Oct2009-30Sept20101Oct2010-30Sept2011
2010
UK
US
France
Italy
Spain
Singapore
USD 28,601,726
USD 26,283,505
-8.1%
Key Insights• Dominated by US driven investment, with a shift in priority
of secondary markets;• 2010 France, Italy and Singapore• 2011 UK, Spain and Singapore• Interestingly no spends from France reported in the latest
period (previous investment USD 170k)• May 2011 saw the opening of The Westin Lima Hotel &
Convention Center in Peru, the first Westin in South America• Planned openings include Chongqing-China (10/12), Xiamen-
Fuji (02,12), Haikou-China (12/12), Shanxi-China (08/12), Alabama-US (2013)
Source: Addynamix, Nielsen Media Research, Kantar Media, Infoadex
2011
OUTDOOR
Herald Square area in New York
ONLINE
ONLINE
CORINTHIA
USD 0
USD 100
USD 200
USD 300
USD 400
USD 500
Oct
Dec Feb
Apr Jun
Aug
Thou
sand
s
1Oct2009-30Sept20101Oct2010-30Sept2011
USD 1,115,026
Key Insights
• The only brand considered not to skew their media investment towards the US
• The London Corinthia opened in April 2011. ATL media spending in last 2 periods focused on this property, with significant investment in the UK, including tactical activity around the Royal Wedding
• January 2011 saw the launch of the new corinthia.com website, with the introduction of a “mega sale” offering 50% discount on featured hotels
2011
USD 5,520
Source: Addynamix, Nielsen Media Research, Kantar Media, Infoadex
2010
UK
US
France
Italy
Spain
Singapore
USD 0
USD 400
USD 800
USD 1,200
Thou
sand
s
1Oct2009-30Sept2010
1Oct2010-30Sept2011
20099%
ONLINE