praes lehnert

2. Konferenz Europäischer Regionen: 

2. Konferenz Europäischer Regionen „The Role of a First Class Operator in Developing European Markets“ Markus Lehnert 21. August 2006

Agenda: 

Agenda Selection Criteria for Hotel Guests Selection Criteria for Hotel Operators Selection Criteria for Hotel Investors The Reservation System The Loyalty Program The Product Distribution – the Local Factor The Hotelier´s Ambassadorial Role Summary

First of all.....: 

First of all..... Before Hotels can play a role in developing markets, it is important to understand which criteria drive the development of Hotels in the first place? Guests, Operators and Investors are the drivers

Selection Criteria for Guests: 

Selection Criteria for Guests Location Desirable location The more central, the more attractive Product Facilities, services (shuttle, concierge) Safety (the not-seasoned traveller) Attainability (easily bookable) Price & Marketing Target marketing for business, leisure and group business

Selection Criteria for the Hotel Operator: 

Selection Criteria for the Hotel Operator The Hotel operator´s clients go there... The Hotel can develop an appropriate business mix The development project is real (planning, site ownership) The investor is in place (with specialist local knowledge?) The construction company is of international repute and locally well-versed The project has a good chance of being successfully realized

Selection Criteria for the Investor: 

Selection Criteria for the Investor Operating experience of Hotel operator Balance sheet of Hotel operator Product distribution of Hotel operator Loyalty program controlled by Hotel operator Reservation system of Hotel operator The last three points in particular are relevant to the role a Hotel operator can play in the development of new markets

Reservation System: 

Reservation System The Reservation System reaches potential customers worldwide, for instance... Marriott´s Reservation System... Has 3000 reservation center associates Handles 70 million reservations per annum, 168 million Room Nights Refers USD 280 million in cross sales Internet bookings are 20 million per annum e-commerce represents USD 6.8 bn – and growing 20% of all GDS bookings worldwide are for Marriott brands

Loyalty Program: 

Loyalty Program A loyalty program is a special tool to understand the customer and apply target marketing, in particular in connection with local destination marketing or extending business travellers to leisure travellers......... Marriott REWARDS has 24 million members worldwide 2.2 million members in Europe, growing at 20% per year 85 % of members will go out of their way to stay at a Marriott brand

Product Distribution – The Local Factor: 

Product Distribution – The Local Factor Increased product distribution: increases cross selling increases brand awareness in the domestic market increases the diversity of the product offering Initially the demand for international hotel accommodation in the domestic segment is often limited. Subsequent product diversification supports market growth of the domestic market segment and leads to the establishment of a solid mid-tier supply

The Hotelier´s Ambassadorial Role: 

The Hotelier´s Ambassadorial Role The Hotel operator can induce additional travel through marketing and product offering Business travellers Return business travel Meetings and conferences Business traveller returns as leisure traveller Leisure, tour groups, incentive travel, packages Tailored trips for mid- to large sized groups

Summary: 

Summary Hotels are providers of infrastructure and security for travellers in a foreign environment Hotels can channel visitors to destinations through their systems and specific marketing Hotels work together with local destination marketing, Airports, sights, congress- and tourism centers to round up the profile of a destination Hotels should become part of the fabric of the offering of a destination, enhance its diversity and support its development into an established destination