Global Hotel Programmes Part I Monday, October 13, 10.1511.30 Newcastle

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Global Hotel ProgrammesPart IMonday, October
13, 10.15-11.30 Newcastle
Presented by

• Trevor Elswood
• Dir Account Management

Chris Crowley Dir Corporate Sales
Maggy Sainsbury Dir Glbl Travel Management
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Global Hotel Programmes

• The Process
• Todays World
• Aims
• Solicitation and Positioning
• Managing the Process
• Analysis and Negotiation
• Agreement and Distribution
• Earn Mutual Trust and Integrity

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Global Hotel Programmes

• TODAYS WORLD

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Why?

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Global Hotel Programmes - PREPARATION

• AIMS

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Global Hotel Programmes - PREPARATION
AIMS

• Corporate
• Traveller Safety
• Reduce Costs
• Add value
• Develop Routes
• to Market

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - PREPARATION
AIMS

• Corporate
• Traveller Safety
• Reduce Costs
• Add value
• Develop Routes
• to Market

• Agency
• Deliver the most appropriate procurement model
• Best rate applied
• Leverage buying power
• Corporate and Guest satisfaction

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - PREPARATION

• AIMS

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Global Hotel Programmes - PREPARATION
AIMS

• Corporate
• Traveller Safety
• Reduce Costs
• Add value
• Develop Routes
• to Market

• Hotels
• Revenue Generation
• Market Share
• Long-term partnerships with
• Corporates

• Agency
• Process Efficiency
• Revenue Generation
• Corporate and Guest satisfaction
• Clear Communication

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - PREPARATION
OBJECTIVES

• Corporate
• Vision
• Communication
• Framework
• MI - learn and understand
• Company trends, developments initiatives
• Direction

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - PREPARATION
OBJECTIVES

• Agency
• Customer understanding
• What, where , when
• Market Conditions
• Policy compliant
• Timelines
• Communication

• Corporate
• Vision
• Communication
• Framework
• MI - learn and understand
• Company trends, developments initiatives
• Direction

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - PREPARATION
OBJECTIVES

• Hotels
• Communication
• Research
• Pre-prepare hotels re pricing
• Assign an account management resource

• Agency
• Customer understanding
• What, where , when
• Market Conditions
• Programme Mapping
• Timelines
• Communication

• Corporate
• Vision
• Communication
• Framework
• MI - learn and understand
• Company trends, developments initiatives
• Direction

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - PREPARATION
CONCERNS

• Corporate
• Is it worth it?
• Strategic/tactical
• Hotel Guarantee delivery
• Corporate delivery
• Deadline
• Quality of MI (what am I missing?)

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - PREPARATION
CONCERNS

• Corporate
• Is it worth it?
• Strategic/tactical
• Hotel Guarantee delivery
• Corporate delivery
• Deadline
• Quality of MI (what am I missing?)

• Agency
• Consistency of data
• Timelines
• Volume of work- diluting effect on quality.
• Rate Transparency (local vs global)

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - PREPARATION
CONCERNS

• Corporate
• Is it worth it?
• Strategic/tactical
• Hotel Guarantee delivery
• Corporate delivery
• Deadline
• Quality of MI (what am I missing?)

• Hotels
• Pricing
• Contract delivery
• Servicing the process
• Communications
• Competitor/market knowledge
• Quality of MI

• Agency
• Consistency of data
• Timelines
• Professionalism / Empowerment
• Rate Transparency (local vs global)

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - SOLICITATION AND
POSITIONING

• Solicitation and Positioning

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Global Hotel Programmes - SOLICITATION AND
POSITIONING

• Sourcing Strategy
• Market analysis
• Usage trend profiling
• Business culture and objectives
• Local input and knowledge
• 60 of hotels covered in each city (under current
  usage)
• New projects and need areas
• Office mapping
• Reality check confirms to travel policy
  statements

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Global Hotel Programmes - SOLICITATION AND
POSITIONING
Sourcing - platform
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Global Hotel Programmes - MANAGING THE PROCESS

• Managing the Process

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Global Hotel Programmes - MANAGING THE PROCESS
Diageo programme managed in 2 Stages 1. The
Request for Information (RFI) 2. The Request for
Proposal (RFP)
Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - MANAGING THE PROCESS
1. The Request for Information (RFI)
(Communications)

• Initial development time 1 month (based around
  NBTA format for consistency)
• Issued to hotels 3 months before RFP (in year 1)
• Includes Corporates own brand coverage in hotels
• Hotels only required to advise changes/updates in
  subsequent years

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - MANAGING THE PROCESS

• Key RFI content/criteria
• Corporate info summary page
• NBTA format
• Hotel details/facilities
• Personalised data whats important to
  travellers?
• Meeting rooms
• Value added free-text
• Corporate Brands carried
• what information would be latterly displayed

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Global Hotel Programmes - MANAGING THE PROCESS

• Corporate/Agency Develop RFI
  content/format/selection criteria
• Agency Sends RFI to Hotel Account Contact or
  hotel contact
• Hotel Research and submit back to agency
• Agency/Corporate Selection
• Corporate/Agency Empower

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - MANAGING THE PROCESS
2. The Request for Proposal (RFP)
(Communications/Content)

• Required pricing criteria.
• Initial development time 1 month
• Issued to hotels 2 months before deadline

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - MANAGING THE PROCESS

• The RFP
• Define need and your expectation
• Contract length
• Customer profile
• The package being sought- LRA / commission levels
  / extras discount / long stay rate etc..
• Requirement overview (stay length/traveller
  profile/ groups)
• Target number of hotels to be selected
• Optimum price ranges / cap per location
• Negotiation timelines and process

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Global Hotel Programmes - MANAGING THE PROCESS

• RFP distribution Agency
• How does hotel arrive at pricing Hotel
• MI profile back up Agency
• Rate collection Hotel
• Local / global contract maze Agency
• Delivery back to agency Hotel
• Consolidate / proof check / benchmark Agency

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Global Hotel Programmes - ANALYSIS AND NEGOTIATION

• Analysis and Negotiation

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Global Hotel Programmes - ANALYSIS AND NEGOTIATION
Negotiation and agreement
RFP issue
Negotiation to agreement
RFP response

• Initial development time 2 weeks
• Issued to hotels 2 months before programme start
  date
• Coordinated bilateral and trilateral negotiations
  between all 3.

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - ANALYSIS AND
NEGOTIATION
Corporate and Agency Corporate Requirements
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Global Hotel Programmes - ANALYSIS AND
NEGOTIATION
Hotel Initial Proposal
Corporate Requirements








Mr Ms Corporate
Mr Ms Corporate
Long stay rates
Long stay rates
2 year contract
Allocations
Allocations
LRA
LRA
Commission / net
Group Rates
Within indexation
Within indexation
Marketing Funds
Data Provision
FB Discount
F B Discount
Data Provision
Proposed ACCOR
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Global Hotel Programmes - ANALYSIS AND
NEGOTIATION
All Parties - Agreement




Mr Ms Corporate
Long stay rates
Allocations
2 year contract
LRA
Group rates
Within indexation
Signed by Everyone
F B Discount
Data Provision
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Global Hotel Programmes - AGREEMENT AND
DISTRIBUTION

• Agreement and Distribution

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Global Hotel Programmes - AGREEMENT AND
DISTRIBUTION
Distribution

• Corporate
• Internal Communications

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - AGREEMENT AND
DISTRIBUTION
Distribution

• Corporate
• Internal and agency communications of selection
  

• Agency
• GDS - audit
• Global Travel Agencies
• Internal MI exceptions data reports
• Hotels (accept / reject)
• Client (Intranet)
• Self book Tools- audit

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - AGREEMENT AND
DISTRIBUTION
Distribution

• Corporate
• Internal and agency communications of selection
  

• Agency
• GDS
• Global Travel Agencies
• Internal
• Hotels
• Client (Intranet)
• Self book Tools

• Hotels
• Internal / External
• Hotels
• GDS
• TARS/Central Res
• Pegasus

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - SUMMARY - RESULTS
Results achieved over 2 years

• Agency
• BSI savings delivered
• Average room rate down
• Trends identified
• Compliance
• ID new hotel opportunities
• Survey results (602 replies)

• Hotels
• New Accor Hotels on programme
• Business growth
• Increased market share
• Profile recognition within Diageo and BSI
• Route to market

• Corporate
• Hotels 900 to 380
• Improved contracts
• Added value
• 500,000 saving on like for like hotel rates
• Choice of booking methods
• Improved Guest knowledge
• Now - devolved opportunities

Earn Mutual Trust and work with Integrity
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Global Hotel Programmes - SUMMARY - RESULTS
Results achieved over 2 years
Commitment Partnership Flexible understanding,
Programme works on multi-level global and local
basis
Earn Mutual Trust and work with Integrity
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Global Hotel Programmes

• Was it worth it
• .
• Yes
• ... but

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Global Hotel Programmes

• Final thoughts from us all
• Process not for process sake
• Front end effort well spent
• Thank God for email!

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Global Hotel Programmes

• Questions