Intrawest: One Step Ahead of the Travel and Leisure Market BCAMA Breakfast Series Presentation March

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Intrawest One Step Ahead of the Travel and
Leisure MarketBCAMA Breakfast
SeriesPresentationMarch 31, 2004

• Linda Denis VP Customer Relationship Marketing
• Jane Osler Executive Director Market Development

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TREMBLANT
STRATTON
MOUNTAIN CREEK
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Non-Mountain Operations

• LODGING
• Approximately the same number of rooms as the
  Quality Inns, Hotels and Suites brand
• RETAIL
• Based on revenues we would be of a similar size
  to Athletes World in Canada
• FB
• Almost 1.5 times the size of the total quick
  service restaurant business conducted in the
  state of Wyoming

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Case for Change

• Financial
• ITW Capital Investments Villages, CRM, Web,
  Lodging
• Investment community looking for more free cash
  flow
• Aggressive revenue, skier visit, room night
  growth
• Growing bed base in our existing resorts
• Heightened demand for demonstrable return on
  Marketing and Sales expenditures
• Ski market flat share of the population
  declining

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Case for Change

• Competition
• Blurring of the lines traditional
  non-traditional competitors
• New travel currency loyalty points/miles
• Web Transparent Accessible
• lowering pricing effect 2003 US ?26K
  rooms/night ? 1.3B lowering pricing effect
• (Pricewaterhouse Coopers US Lodging Industry
  Study 2003)
• Standardization of technology aligned
  processes to deliver on improved operational
  cycle time
• 12 of lodging reservations on the web
• CRM, Web, E-Commerce Call Center enhancements
  to deliver on improved customer relevancy

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Case for Change

• Guests
• 5 Million individuals identified in ITW database
• Guests want improved ease and speed to value
• Rise of the informed guest need for more
  knowledgeable sales and service staff enabled by
  technology
• Customer Lifecycle Opportunities
• Lead?New?Existing?Most Valuable?Lapsed
• Youth
• Customers for Life, Animation for Resorts,
  Ethnic Diversity
• Aging Baby Boomers
• Largest transfer of wealth, Skiing longer but
  not enough to fill gap
• New middle class markets emerging China
  India
• Not typically historical hot beds for skiing

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Rethinking Everything

• Most Valued Guests
• Youth Marketing
• Multi-Resort Marketing
• Building our CRM Capabilities
• Whistler 2014

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Loyalty Programs

• Standard pass and card programs
• Geared to local skiers who are passionate about
  the sport, and a particular resort (resort
  advocates)
• Frequent skiing does not necessarily translate to
  high spending
• Highest spending customers are often destination
  guests who purchase lodging, tickets, ski school,
  equipment rentals

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Loyalty Programs

• Corporate Role
• Initial analysis
• Tool box of ideas and how-tos
• Review and measure
• Research
• Corporate campaigns/programs

• Resort Role
• Decided upon the specific tactics

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Youth Marketing

• How it began
• Guest Experience Team identified a need
• Corporate and Resort Roles
• What did we do?
• Research and Development
• How did we sell it?
• Packaged findings into programs that they could
  implement gave them a turnkey operation
• Flexibility in programming
• Launched the program
• Provided ongoing corporate support and ensured
  sharing of programs/best practices

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Multi-Resort Marketing

• The Situation
• Initially unwilling to share customers trying
  to attract and retain customers at their resort
• Impetus for Change
• Research
• Identified that customers were going elsewhere
• In warmer Eastern markets customers looking for a
  snow guarantee, and ideally a longer season
• Changed environment and senior management support
• 2000/01 Whistler Blackcomb had a slow start to
  the season
• Senior management requested support for Whistler
  Blackcomb
• Need for good lists

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Multi-Resort Marketing

• What we did
• Developed new resort products/product benefits
• Mountain Creek extended the season with free
  early season skiing at Stratton
• Cooperative marketing
• Multi-resort brochure in rooms where we operate
  lodging
• All resorts put a banner with a special offer for
  early and late season skiing at Whistler
  Blackcomb on their websites
• Mountain Creek invited other resorts to set up
  tables at their resort
• Invite destination customers of one resort to be
  regional customers of another
• Developed x-resort benefits for full pass holders
• 50 off lift tickets special website
  www.intrawest.net/passholder
• Based on success expanded to homeowners and
  cardholders this season
• Developed partner programs

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CRM Travel Leisure Industry

• a travel company lacking a CRM strategy
  possesses a one-way ticket to failure. Its not
  a matter of if CRM is right for your firm, but
  rather which approach will work best for you.
• CRM drives our business activity?
• CRM is part of our larger strategy?
• CRM plays a minor role here?
• During the next two years
• Existing competencies will become commonplace
• today only larger firms can afford CRM by 2005
  travel companies of all sizes will be able to
  afford at least basic CRM applications
• Offer management will become more tailored
• Customer recognition will become more subtle
• Best Practices in Travel CRM
• Continental Airlines, Hertz, Hilton Hotels,
  Wyndham International
• Forrester Research Best Practices in Travel CRM
  December 2003

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CRM Value Disciplines
Value Leadership The Discipline of Market
Leaders M. Treacy - Blue Best Practices In
Travel CRM Forrester Research December 2003
- Red
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Our CRM Roadmap
Best In Class Customer Optimization Customer
CampaignTesting Analytics Build/Buy/Implemen
t Capabilities Hire CRM Personnel CRM Vision
Quantify CRM Potential
Knowledge Based Customer Optimization
3-5 yrs
2-3 yrs
1-2 yrs
Gut Feel Customer Optimization
0-2 yrs
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Consolidated Customer-Centric View
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CRM Change Process Direct Mail Knowledge
Transfer
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Direct Mail Testing
Brand Conversion Rate 18
Direct Conversion Rate 22.5
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CRM Guest Lifecycle Mgmt
Acquire Leads Steal Market Share Opt-in
Partner Programs
Grow Existing Cross-Sell Up-Sell
Retain Most Valuable Loyalty Programs Profile
Driven Offers
Winback Lapsed Winback Offers
Guest Value
Stimulate Usage
Data Capture
Surveys
Spending with ITW Growth Potential
Interested in ski elsewhere
Full Share
Fewer trips/defection Less spend within a visit
Time
CRM can enable push-button shelf campaigns for
every stage of the customer lifecycle
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CRM Space
DistributionPartner
Call Center
Campaign Management
CallBehavior Analysis
CustomerValuation
BehavioralModeling
Segmentationand Profiling
CustomerService
Sales Force Automation
ProfitabilityAnalysis
WebIntelligence
NeedsAnalysis
SalesAnalysis
EPOS
E-CommerceWEB
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Connecting with Intrawest Guests

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What does the future hold?

• Watch the market identify trends early and
  build on them
• Snowboarding our resorts have been at the
  forefront of this trend
• Expansion in the non-ski season
• mountain biking
• hiking/alpine walking
• Continued expansion of non-ski activities
• Village amenities and activities means there is
  something for everyone in the family
• Loyalty programs that build on the Intrawest
  network

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How will Intrawest grow?

• Future growth will come through alignment of
  product offering (business opportunity) with
  customer needs, no matter what aspect of our
  customers leisure time it relates to.
• This customer centric approach leads to a vision
  where
• We own our customers leisure experiences.
• From taking a trip to one of our resorts, to
  participating in an adventure vacation, investing
  in timeshare/interval ownership or purchasing a
  second home.

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ENJOY AN INTRAWEST EXPERIENCE TODAY