B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
Attracting the new generation of Hotel Travelers
1. Attracting the New Generation of
Hotel Travelers
The Solutions Group
Team: Mike Wahl, Sabrina Fruehauf, Antonio Martinez, Lea VandeZande, and Shane Mooney
Client: Best Western International
2. Order of Business
1. Our Team
2. Reasons for being here?
3. Statement of Purpose
4. The Research
5. Facts, Evidence, Results &
Recommendations
3. Why are we here?
Population
100
80 76
75
80
60 46
40
20
0
Tradnl Boomer Gen X Millenial
4. Meet the Millennial’s
Demographics
Born between 1977 – 1999
76 million (new baby boom)
5. Proven & Cutting Edge
Marketing Tools
• Perceptual Mapping
High quality consumer insights into a brand’s current positioning.
Provides direction in satisfying the wants of consumers better
• Conjoint Analysis
Identifies the extent to which a consumer values a particular
attribute in his/her purchase decision
Using math to uncover value system behind preference judgments
6. Recommendation 1: Make More Adult Friendly
Business Travelers Leisure Travelers
Leisure Travelers
Leisure Travelers Business Travelers
21% 31%
6% 4%
7. Recommendation 1: Make More Adult Friendly
Top Consumer Touchpoints
• Free WiFi - top-rated perk for
business and leisure travelers
96%
• Add adult friendly features
o Hotel bar
60%
o Business center
o Gym
o Concierge service
56%
• Minimize family-friendly features
o Pool
39%
o Kids play area
o Hotel restaurant
8. Recommendation 2: Improve Perception of a Clean,
Friendly Hotel for Guests
•
Business Travelers
What customers prefer: clean
hotels that have a feeling of home
and friendly staff
• Customer perception of Best
Western: opposite of preference
Leisure Travelers
9. Recommendation 2: Improve Perception of a Clean,
Friendly Hotel for Guests
How?
•Communicate through marketing and advertising
o The customer's "home away from home"
• Implement corporate wide training for all staff members
(at individual hotel level)
o Emphasize importance of a clean and friendly hotel
o Encourage staff to take the guest journey
o Discuss what your guests expect and how to meet those expectations
o Increase expectations
• Evaluate progress - secret shoppers
o Management shares results with staff
Give guidance, recognition, enforce expectations and reprimand
• Incentivize management and staff
o Make it a competition and provide rewards (free hotel stays, gift cards,
etc.)
10. Recommendation 3: Increase pricing
Price vs. Preference
Business Travelers Leisure Travelers
Hotel Rates Income and Marital Status
Above
$125,000
$0-
$50,000
$100,001 -
$125,000
$75,001 -
$100,000 $50,001
-
$75,000
11. Recommendation 3: Increase pricing
Hotel rates from hotel.com (check in 11/9/12, check out 11/10/12)
Hotel rates from hotel.com, requested for 11/9/12-11/10/12
12. Recommendation 3: Increase pricing
• 83% of Business travelers make more than $ 50,000 a year (in leisure, it’s
more than half of the people surveyed*)
• Most people are single (81% among Leisure, 69% among Business
travelers) with over 90% having no children in both segments
Annual income distribution of Marital Status of Leisure
Business travelers Travelers
Married
$0-$50,000
19.1%
Above
$125,000
$100,001 -
$125,000
Not
$75,001 - married
$100,000 80.9%
$50,001 -
$75,000
13. Recommendation 3: Increase pricing
How?
• Phase it into your communication with customers
o Pay more for revamped image of Best Western hotels focused on cleanliness and
staff friendliness
o Increase in price goes with an increase in quality
o Increase advertising for “Best Western To Go” App
38% of Business Travelers use their mobile device to
book travel
21% of Leisure Travelers
14. Recommendation 4: Launch "Free Night" Loyalty Program
Leisure Travelers
Leisure Travelers
Overall Feature Importance
Elite check-
in benefits Elite perks # of nights
Elite 2% 6% to earn free
amenities night
6% 29%
Elite room
upgrades
7%
Program
expiration
date # of nights
21% to reach
“elite
status”
Leisure Travelers Leisure Travelers 29%
15. Recommendation 4: Launch "Free Night" Loyalty Program
• A program designed for less frequent
Elite Perks
hotel travelers
Elite Check-in • Program details:
Benefits
o 5 nights earns you a free night
o No expiration
Elite Amenities o No other benefits
Elite Room
• Simple, attractive program
Upgrades
• Solution for 60% of the guests
Program
Expiration • Real, attainable benefits for the
consumer
# of Stays to
Reach Elite
• Low cost for Best Western
# of Stays to
Earn Free Night
• Industry-first program
16. Recommendation 5: Launch " Best VIP " Loyalty Program
Business Travelers
Business Travelers
Business Travelers
Type of hotels stayed at during the past year
Business Travelers
17. Recommendation 5: Launch “ Best VIP” Loyalty Program
How?
• Select the attributes with the highest
value for the consumers
• Find attributes that provide an
opportunity to satistfy the consumer
more with less
• Combine attributes and value to
determine the best loyalty program
for this target market
18. “Best VIP "Loyalty program
Best VIP Loyalty Program
# of nights required to earn a free night 10 0.24
Program expiration date 3 years 0.25
# of annual nights to reach “elite status” 25 0.27
Complimentary amenity free internet 0.2
“Elite status” room upgrades upon availability 0.2
“Elite status” benefit complimentary drink 0.09
"Elite status" check in/out benefits 0.08
Total TPU ( Customer happiness) 1.33
19. Other elite loyalty programs
Hilton Marriott
Expiration time 1 year Expiration time 1 year 0.07
0.07
# of nights required to earn a
# of nights required to earn a free night 5 0.03
free night 5 0.03 # of annual nights to reach “elite
# of annual nights to reach 0.07
0.12 status” 75
“elite status” 50
Late check-out 0.08
Late check-out 0.08 Express check-out, and check-
Express check-out, and in 0
check-in 0 “Elite status” benefit
“Elite status” benefit complimentary drinks at minibar
complimentary drinks at 0.09
minibar 0.09 Executive Floor Lounge Access
Executive Floor Lounge 0.04
Access 0.04 Free internet 0.2
Space-available upgrade to a
Free internet 0.2 preferred room 0.2
Space-available upgrade to complimentary amenity welcome
a preferred room 0.2 bag 0.07
Total TPU ( Customer Total TPU ( Customer
happiness) 0.83 happiness) 0.85
20. Project Recap
• Family-friendly = Opposite of Milennials’ Preference
• Improving Perceptions of Cleanliness
• Raise Room Rates. Milennial Stereotype: “Inexpensive = bad”
• What New Leisure Travelers Want
• What New Business Travelers Desire
22. Business Travelers Free
Amenities Brand I
Prefer
Feeling of Home
For Business Travelers
Friendly Staff
Clean
Rewards Loyal
Customers
Holiday Inn
Hampton Inn
Marriott Hilton
Hyatt
Great for
Sheraton
Families
Reasonably Priced
Comfort Inn
Best Western
23. Leisure Travelers Great for Free
Families Amenities
Holiday
Inn
Hampton
Inn Marriott
Reasonably
Priced
Feeling of
Home
Brand I
Prefer
Hilton
Comfort Inn
Sheraton Clean
Hyatt Friendly Staff For Business
Travelers
Best Western Rewards Loyal
Customers
26. CA Leisure travelers
“Elite status” benefit access to executive lounge
“Elite status” benefit Free airport shuttle service
“Elite status” benefit complimentary drinks at minibar
"Elite status" check in/out benefits 8am check in and 4 pm check …
"Elite status" check in/out benefits none
"Elite status" check in/out benefits express check in
complimentary amenity welcome bag
complimentary amenity free breakfast
complimentary amenity free internet
“Elite status” room upgrades none
“Elite status” room upgrades free upgrade to best available non-…
“Elite status” room upgrades free suite upgrade upon avalability
Program expiration date never 1 year
Program expiration date never 3 years
Program expiration date never
# of annual stays to reach “elite status” 75
# of annual stays to reach “elite status” 50
# of annual stays to reach “elite status” 25
. # of nights required to earn a free night 15
# of nights required to earn a free night 10
. # of nights required to earn a free night 5
intercept
0.00 0.20 0.40 0.60 0.80 1.00 1.20
Communication is key!!!Strengthen your rapport with dedicated customers. Thank them for their business with complimentary services or products. Transparency For many customers: expensive=good, yStress the “6th night free” offer for leisure travelers Emphasize the special treatment at Best Western hotels (VIP Platinum Loyalty Program) ou get what you pay for. Higher price usually reflects higher quality