Eye For Travel Conference

Size: px

Start display at page:

Download "Eye For Travel Conference"

Lora Harris
5 years ago
Views:

1 Eye For Travel Conference BIG DATA & PRICING Fernando Vives Senior Vice President, Commercial Strategy & Pricing

2 AGENDA 1 Framework: the New NH Hotel Group 2 The pricing & RM transformation process 3 Our vision on transforming BIG DATA into action 2

4 OUR VISION One day, whenever anyone contemplates a trip to a city for an overnight stay or meeting, for business or pleasure, they will always ask themselves: Is there an NH Hotel at my destination?

5 CLEAR VISION AND CHOICES NH aspires to be the top 2 choice for city/business travellers, offering a different product and service experience NH aspires to be the best option for investors looking to sign a management/franchise contract with a top rate operator in the city/business segment NH seeks to maximise return for shareholders by pursuing three aspirations: ~10-15% ROCE objective ~3-4 x ND / EBITDA ~200M EBITDA 5

6 A CLEAR TIMELINE NH Palacio de la Merced, Burgos The 5 Year Plan has been structured in two phases: The first 3 years are focused on managing and implementing the new value proposition and the new business model. Strong investment in asset refurbishment and limited impact of the Expansion Plan During 2017 and 2018, the Company will boost organic growth (full economic impact in 2020) Review/Adjust 5 Years Plan Objectives Full Phase I: Implement New Business Model Phase II: Boost growth economic impact expansion 6

BRILLIANT BASICS THAT YOU LL WANT TO TAKE HOME During the first months of the year, the implementation of the new brilliant basics has begun.

18,200 high-tech LED Televisions New sleek and premium amenities 16,500 professional hairdryers 105,000 new pillows for extra sleep comfort for our

15 BRILLIANT BASICS THAT YOU LL WANT TO TAKE HOME During the first months of the year, the implementation of the new brilliant basics has begun. By December 2014 we will have worldwide : 20,000 mattresses with the maximum comfort, designed exclusively for NH 27,000 maximum quality Showers 18,200 high-tech LED Televisions New sleek and premium amenities 16,500 professional hairdryers 105,000 new pillows for extra sleep comfort for our guests 5,800 Nespresso machines for a great coffee experience in the room allowing increases in ADR and involving increases in consumers quality perception. Increase in Quality 7,8 7,5 7,9 7,6 7, ,7 7,8 8,1 31,5M investment TA Score Evolution 8,2 8,1 8,2 7,7 7,7 7,7 7,7 8,3 8,3 7,8 8,2 7,9 7,9 Brilliant basics implementation Oct 13 Nov 13 Dec 13 Jan 13 Feb 14 Mar 14 Previous Period Apr 14 May 14 Jun 14 Current Period Jul 14 Aug 14 Sept 14 15

18 INVESTMENT IN MARKETING LOYALTY OF OUR COSTUMERS NEW NH HOTEL GROUP REWARDS As of October 2014, we have surpassed 4 million members 18

20 INVESTMENT IN MARKETING NH THAT S ME CAMPAIGN 20

21 INVESTMENT IN MARKETING NEW CAMPAIGNS Focus on communicating experience& Brilliant basics Focus on communicating NH Collection 21

22 FULL IT TRANSFORMATION Change Back Office management platform: implementation of SAP Change system of the central reservation system (CRS) and hotel management (PMS) Design and implementation of the new website Design and implementation of a Shared Service Center 22

23 IT TRANSFORMATION NEW WEB The new web improves significantly customer engagement, thanks to its more appealing design, more relevant content, new structure and better cross navigation. 23

24 THE PATH TO QUALITATIVE REVPAR GROWTH Inventory Management PRICING STRATEGY PRODUCT & QUALITY CLIENT STRATEGY CHANNEL MIX BUSINESS MIX FEEDER MARKETS VOLUME ADR QUALITATIVE REVPAR GROWTH ORGANIZATION TOOLS & DATA PROCESS SKILLS 24

25 PRICING & REVENUE MANAGEMENT TRANSFORMATION PROCESS 25

26 THE CHALLENGE WITH BIG DATA: FROM DATA TO KNOWLEDGE Pricing Decision 26

27 TOO MUCH DATA? RMS (PMS-CRS DATA & Forecast) Others= Strategic Forecasting Tools / GDS Data RateShopping B2C / Onward Distribution checks Some data sources User Generated Content RateShopping MICE MarketShare & Performance 27

28 OUR PRICING VISION: FROM DATA TO IMPLEMENTATION DATA SOURCES (DEFINE) DATA CONSOLIDATION (DW) KNOWLEDGE (ORGANIZATION) BUSINESS RULES & LOGIC PRICE RECOMENDATION PRICE AUTOMATION (B2C & transient) NEGOTIATION INTELLIGENCE (B2B & groups) MARGIN OPTIMIZATION = PROFITABILITY 28

29 CONCLUSIONS We have always used DATA, now we call it BIG DATA Democratization of SIMPLE DATA not BIG DATA Really important KPI Alerts & Dashboards Keep DATA actionable Challenge: take out the noise and focus on the important Integration of business rules & strategies Working by exception : automation Negotiation Intellingence Right process, systems, tools, organization (skills) and vision 29

30 CONCLUSIONS data doesnotreplace BUSINESS SENSE 30

Optimal Pricing & Market Positioning. Innovations in RM to maximise sales & optimise revenue

Optimal Pricing & Market Positioning Innovations in RM to maximise sales & optimise revenue Starting off on the right path Setting off on the right path Copyr i g ht 2013, SAS Ins titut e Inc. All rights