Hard Rock Hotel - Chicago Full Presentation

Creating Loyalists Hard Rock Hotel Chicago Case Study: 

Creating Loyalists Hard Rock Hotel Chicago Case Study DePaul’s Business Architecture Students + Professor Paul Bodine

Intro: 

Intro Sona Moorthy

Microphone Testing…: 

Microphone Testing… Intro Show Me the Money! Bio (HRHC) Setting the Stage (Base Models) Fast Forward (Group Presentations) Outro

Intro: 

Intro Ten weeks ago, HRHC presented us with the challenge of increasing its market share and profitability by 20%. Acting as a single Business Architecture consulting firm, we accepted the challenge…

Show Me the Money!: 

Show Me the Money! Market Share- Current Occupancy All Chicago Hotels HRHC Total Rooms Available 108,701* 381 Avg. Monday Bookings 65,221 (60%) 229 (60%) Avg. Tuesday Bookings 70,656 (65%) 248 (65%) Avg. Wednesday Bookings 70,656 (65%) 248 (65%) Avg. Thursday Bookings 65,221 (60%) 229 (60%) Avg. Friday Bookings 70,656 (65%) 248 (65%) Avg. Saturday Bookings 76,091 (70%) 267 (70%) Avg. Sunday Bookings 48,916 (45%) 172 (45%) Avg. Weekly Bookings 467,417 1641 Market Share 100% 0.35% *2011 estimate

Show Me the Money!: 

Show Me the Money! Market Share- Future Occupancy (↑20%) All Chicago Hotels HRHC Total Rooms Available 110,901* 381 Avg. Monday Bookings 66,541 (60%) 280 (73.5%) Avg. Tuesday Bookings 72,086 (65%) 302 (79.3%) Avg. Wednesday Bookings 72,086 (65%) 302(79.3%) Avg. Thursday Bookings 66,541 (60%) 280 (73.5%) Avg. Friday Bookings 72,086 (65%) 302 (79.3%) Avg. Saturday Bookings 77,631 (70%) 326 (85.6%) Avg. Sunday Bookings 49,906 (45%) 210 (55.1%) Avg. Weekly Bookings 475,877 2002 Market Share 100% 0.42% *2013 estimate

Show Me the Money!: 

Show Me the Money! Expected Project Returns Total Profit Increase (%): 49.4% Total Occupancy Increase: 17.9% Total Profit Increase ($): $4,000,168 New Occupancy Rate: 82.9%

Bio: 

Bio Challenges Competing with big brands Brand expectations Property awareness Opportunities Converting OTA guests to HRHC’s own Capitalize on HRHC’s F&B outlets Social media

Setting the Stage: 

Setting the Stage Superscape Model Business Model Operations Model Organization Model Governance Model

Setting the Stage: 

Setting the Stage Superscape Model Definition Components Purpose

Setting the Stage: 

Setting the Stage Superscape Model- Future State

Setting the Stage: 

Setting the Stage Business Model Definition Components Purpose

Setting the Stage: 

Setting the Stage Business Model- Future State Current State Profits↑ Market share ↑ Profits↑ Market share ↑ Profits↑ Market share ↑ Profits↑ Market share ↑ Profits ↑ 20% Market share ↑ 20% 2011 2012 2013 2014 2015

Setting the Stage: 

Setting the Stage Operations Model Definition Components Purpose

Setting the Stage: 

Setting the Stage Operations Model- Future State

Setting the Stage: 

Setting the Stage Organization Model Definition Components Purpose

Setting the Stage: 

Setting the Stage Organization Model- Future State Current State Future State

Setting the Stage: 

Setting the Stage Governance Model Definition Components Purpose

Setting the Stage: 

Setting the Stage Governance Model- Future State Current State Future State HRHC Management HRHC (Business and Operations)

Fast Forward: 

Fast Forward Convert OTA G uests Attract M eeting Planners Convert Social M edia F ans Develop R ewards Program

Convert OTA Guests: 

Convert OTA Guests Suite Foundations: Ta Ron Barnes Helen Garrett Chris Gubala Dave Mason Putti Tiasuwan

Mobile Marketing: 

What is Mobile Marketing? No Clear Definition due to infancy and cutting-edge nature “The use of the mobile medium as a communications and entertainment channel between a brand and an end-user” – Mobile Marketing Association “Distribution of any kind of promotional or advertising messages to customers through wireless networks” “Using interactive wireless media to provide customers with time and location sensitive, personalized information that promotes goods, services and ideas, thereby generating value for all stakeholders HRH Definition: Distribution of packages, discounts, contests, news feeds, and any other Hard Rock information deemed pertinent to loyal patrons via SMS or MMS Mobile Marketing Channels SMS, MMS, In-Gaming, Mobile Web, QR Codes, Bluetooth, Infrared, Proximity Systems, Location-based services Mobile Marketing

Mobile Marketing: 

Mobile Marketing Why a Mobile Marketing Campaign? Text messages have a 95% read rate, so your customers will know what you want them to know Ability to reach customers anytime and anywhere Redemption/response rates are as high as 30% Allows you to communicate directly to those customers that want to hear your message Ability to separate Work Hard customers from Play Hard customers and target relevant messages to them specifically User controlled Opt-In and Opt-Out capabilities builds a level of trust with the customer

Mobile Marketing: 

Mobile Marketing Begin a Mobile Conversation with Consumers Mobile Keywords Text 4 Details Provide small teasers for events, functions, or contest to help gauge traction among consumers and viability by having them reply for more details Text 2 Feedback Consumers can send feedback about experiences and employees giving good reviews for immediate praise or bad reviews for training opportunities Text 4 Link Direct consumers to microsites for banquets, business, travel, amenities or to the HRH website for content or downloads (i.e. Mobile Application) Text 4 Code Offer coupons or promotional codes to consumers for discounts on rooms, food & beverage, and other HRH-C services and amenities Text 4 Callback Great for consumers that don’t want to want on hold or leave a message, but wish to speak to a HRH-C representative or manager

Mobile Marketing: 

Mobile Marketing Possible Marketing Campaigns Bargain Hunters Alert: 25% of all gift shop merchandise. Just show this text at the counter. HRH Video Contest: Submit a video of you and your buddies Rocking out at Hard Rock and enter to win a complimentary 1 night stay. Reply for more details Celebrity Sightings: Guess who is rocking out at Angels and Kings tonight? . . . Give up? Alice Cooper and Mick Jagger ! Guess where YOU need to be? HR Check up: Hey! You haven’t been down to see us in a while. We miss you! To show it, we’re offering YOU a 1 night stay for $99. Click here to book! Spur of the Moment Special: Should I Stay or Should I Go campaign Deal Makers: Rock This Way for Memorial Day from $129/night. Click Here to book Hard Rock 40: Born on 7/14? If so, come celebrate your birthday with the Hard Rock for our 40 th and receive a complimentary 1 night stay. Reply for more details.

Mobile Marketing: 

Mobile Marketing Cost-Benefit Analysis Every consumer that enrolls in the program is more likely to book thru the hotel because the hotel experience is at the forefront of their mind and not Hotel costs Profit Realization: 20-30% profit increase from OTA conversion per guests Advertising of special rates during nonpeak season to 10000 subscribers with 5% annual sell-thru rate Profit Realization: 500 new reservations thru website annually Gauge campaign viability thru vendor reporting analytics to see number of texts in and out, opt-out rates, and invalid phone numbers Profit Realization: Ability to quantify program successes and failures along with improved demographic information about customer base Vendors have Monthly Plans as well as Pay As You Go for as low as $.06/message so cost can be minimal, even on a monthly basis, with little risk as the program can be terminated at any time Cost: $600/month for 10000 messages is $7200 + setup fees

Improve OTAs Visibility: 

Improve OTAs Visibility Problem Hard Rock Hotel Chicago not being listed in Chicago’s Hotel Orbitz Expedia Hotels.com Not listed in Magnificent Mile - River North Hotels Expedia (Loop – Downtown) Price Parity & Integrity OTAs not getting the same rate as Direct booking Being pulled off value hotel list

Improve OTAs Visibility: 

Improve OTAs Visibility Solution Focus on Price Parity & Integrity Have Marketing Department act as a single source to monitor content integrity HRHC.com OTA Sites Advertising Email Social Media SEO Mobile Marketing

PowerPoint Presentation: 

Adding additional F&B options to guests will increase ROI. Extremely variable and depends on execution, style, etc. China Grill is nice, but why not add value to staying at Hard Rock Hotel Chicago by. . . Joining other existing F&B’s Creating new visually pleasing environments. The key is to get the customers to come back by offering more entertainment options. Improve Visibility

PowerPoint Presentation: 

Improving Visibility by working with Hard Rock Café Synergies between the Hotel and Café in Chicago Adds another food and beverage option to guests Increased revenue for both parties Physically linked through Transportation 20+ seat Hard Rock Party Bus “Work Hard, Party Hard” Bus driving around downtown can double as a moving billboard. Costs & Resources Initial Investment: $70k - $150k Operational: $3,100 per month (16 days a month) Parking, Driver, Gas, Maintenance Moving Billboard: $1600 ( production ) + $800 ( per day ) Pay for itself when considering the advertisement. Has Multi-Purposes: Can serve corporate, weekend customers, added destinations for late night party goers Improve Visibility - Cafe

Front Desk Up-Selling: 

Why an Up-selling Program? Due to the growth in the online booking channel the front desk is often the first person to person interaction a customer has with the hotel OTA websites sell rooms as a commodity and don’t effectively sell the unique features of a hotel that might appeal to different groups of travelers Training front desk agents to sell upgrades and packages can maximize revenue and increase the average daily rate Establishing commissions and sales targets will create a highly motivated staff The Upselling program will support the loyalty program by creating incentives and goals for signing up reward members Front Desk Up-Selling

Increased Revenue: 

Increased Revenue Front desk sales team would receive a 5% commission on the upgrades they sell The commission would only be valid for reservations booked online Example situation A family with children books a standard room on an OTA for $175 a night for 3 nights The front desk agent suggests that the family would be more comfortable in an open suite for $215 a night The front desk agent would receive $6 (5% of $120) The hotel would gain $114 from the increased rate Benefit: Can increase revenue during seasons with lower occupancy rates Rooms Sold ADR Room Revenue 100 $150 $15,000 85 $176.47 $15,000

Program Metrics: 

Program Metrics Front Desk Staff Evaluation Metrics Signing Up Rewards Members Tracking OTA Conversion Through Rewards Cards Most Upsells Highest Dollar Average of Upsells Highest Monetary Amount of Upsells Front desk sales training vendor:

Best Practices: 

Train Staff so that they Thoroughly know the property and opportunities to upsell Know what attributes appeal to different types of guests Vary Sales tactics by room availability and season Sell every guest Consider the process a helpful conversation - if the guest declines then drop the pitch Tailor the pitch to different questions Create opportunities to upsell incrementally A corporate rate should be adjusted so that the next tier is proportional to the basic discounted rate Best Practices

PowerPoint Presentation: 

http://www.youtube.com/watch?v=DHMqAiOm4XY

Destination Management: 

Destination Management How Else can Hard Rock Hotel Chicago Convert OTA Guests?? To Improve Loyalty Improve Profit Margins Margins are 20-30% lower with OTAs v. Direct Bookings

Destination Management: 

Destination Management Time to Get Creative 2 Fundamentals It is easier and cheaper to retain an existing Customer than recruit a new one! The MOST effective referral is by word of mouth!!!!

Destination Management: 

Consider some Lean Manufacturing Principles Creativity before Capital Develop a cultural bias for change Leverage strengths Continuously seek Improvement Destination Management

Destination Management: 

The Solution . . . Many Hotels already have loyalty programs aimed at getting guests to choose one hotel over another A Destination Management Program focuses on how the guest is treated once the arrive on site! Differentiating the experience by segmenting guests Offers unique during-stay advantages Destination Management

Destination Management: 

Destination Management The Benefits . . . Provides an avenue for HRHC to continually get more information about its most important guests Who are HRHC’s loyal direct booking guests What do they want? Where do they come from? Where are they going? Why do the choose HRHC? Information is POWER

Destination Management: 

Destination Management What will this signature service program look like & how will it work? Signature Service Treament includes Premium VIP acccess to A&K Club with premium seating Premium Restaurant Seating Premium Lounge Access Discounted Transportation around Chicag Automatic free advice on Chicago Events Free HRHC T-Shirt or Mug Giveaway when they arrive on site

Destination Management: 

Destination Management Benefits cont’d. Automatic ½ off Valet Service Automatic FREE WiFi Automatically earn “surprise giveaways” Bottle of Sparkling Wine Breakfast Taxi Service to a Chicago event Ability to earn extra signature service during stay only points to us on HRHC amenities

Destination Management: 

Destination Management The Main Idea: Clearly distinguish the service level that the loyal direct-booking customer receives

Destination Management: 

Destination Management Make sure loyal guests have access to showcase their experience!! Give free video camera rental with check in rock out & let customers share their experiences Annual Grand Prize for Video Contest- Vegas Stay at HRH all inclusive Monthly winners get free small prizes – Mug/T-Shirt Results & videos are accessible on FB, Touch Taste, YouTube Customers need to create an account to view (more data capture & potential fans)

Destination Management: 

Destination Management This creates Peer to Peer Marketing Opportunities Can create viral Marketing presenc , especially if the movies are funny or dumb Consider . . . YouTube now has 3 billion views a day , a 50% increase over last year YouTube users are also now uploading more than 48 hours worth of video to the site every minute In summary…. People LOVE video …..we even used YouTube as a resource in this Business Architecture Class!

Destination Management: 

Destination Management Rather than charging a fee to join the Signature Service Program… HRHC could donate $10 to a meaningful charity as a gift for each new signature service member that books directly Highlights that HRHC not only cares about music, creativity, & great rock experiences, but it also cares about the world we live in….. Guests could choose from a short list of potential charities. Examples: American Cancer Society Red Cross UNICEF For something more local, consider Bright Promises, Chicago Social Responsibility

Destination Management: 

Destination Management Will need: Training staff on new Signature Service benefits Processes to audit & select video contest winners (how to edit explicit video material?) Triggers for issuing “surprise gifts” to signature service members generated by during stay points Metrics for measuring program success Resources & Costs?

Destination Management: 

Destination Management According to Hotelier’s 2011 top ten internet marketing resolutions Industry Average is 40% OTA Good Target is 25% OTA ~5.3K guests should be targeted for conversion per annum, assuming the typical customer stays an average of 3 days Resources & Costs?

Resources & Costs?: 

Resources & Costs? Annual Profit Increase ~ $480K USD PROGRAM ESPENSES $123,606 USD / YEAR ROI 388% Source: Smith Travel Research Destination Management

Destination Management: 

Destination Management HRHC can use the Signature Service Program to continuously improve the experience for its loyal guests Use the program as the platform for viral/word of mouth marketing Use the program to improve society through charitable donations Create a visible differentiator that makes the OTA guests to want to book through the HRHC website Provides valuable information about HRHC’s guests Signature Services are something that any guest would like to be a part of…. In Conclusion

Random Survey…. : 

Random Survey…. http:// www.322youtube.com/watch?v=9NAbasEB01w

Questions?: 

Questions?

Attract Meeting Planners: 

Attract Meeting Planners Rock’n Revolutionaries: Jennifer Dunneback Charles Lilly Pratul Patel Nancy Wai Mike Wittrup

Today: 

Today Top 3 Business Hotels Hyatt Regency McCormick Place The Westin Chicago River North Four Points by Sheraton Chicago Midway Airport

Tomorrow: 

Tomorrow Top 3 Business Hotels Hard Rock Hotel Chicago Hard Rock Hotel Chicago Hard Rock Hotel Chicago

Meeting Planners: 

Meeting Planners Top Factors in Booking Location Quality Room Rate Promotions/Incentives Demonstrating ROI

Insight #1: 

Partner with meeting planner software companies to attract meeting planners from local businesses. High-volume corporate accounts are generated by local companies. Solution Insight #1

Cvent: 

Cvent Education Exposure Event Title : Cvent Seminars in Chicagoland: 6/13 – 6/22 Session Title : Lunch Seminar at Hard Rock Hotel Chicago Session Start – End Time : 12:00 PM - 1:30 PM

Insight #2: 

Create an online portal to make the process easier for them. Solution Insight #2 Meeting planners need to coordinate many different activities.

Backstage Pass: 

Backstage Pass Robust, Interactive Event Planning Portal Enables event planners to seamlessly coordinate meeting events online Offer discounts for bookings generated through this channel Photos and videos of event spaces Gives event planner’s a backstage pass to planning their event at HRHC

Design in 3D: 

Design in 3D Select room layout Select setup style Identify number of attendees Place furniture View virtual tour Event planners have a “backstage pass” to online design and customization tools for their event needs

Insight #3: 

Create meeting spaces where businesses can innovate. Solution Insight #3 We live in a dynamic environment where innovation is necessary for businesses to succeed.

Amped-Up Meetings: 

Amped-Up Meetings Soon Mo Kang

PowerPoint Presentation: 

Information about Audio Visual Discount . . .

Insight #4: 

Create an environment which promotes health and wellness. Solution Insight #4 Frequent travel is correlated with obesity and poor health.

PowerPoint Presentation: 

We offer healthy meals & snacks as well as guided stretching breaks

Bottom Line: 

Bottom Line Quality and service expected in business hotel PLUS… Meeting planning tools Environment for innovation Health & Wellness

PowerPoint Presentation: 

The following video clip that you are about to see is a simulation of an interaction between a meeting planner and her boss. Intermission Rock’n Revolutionaries: Jennifer Dunneback Nancy Wai Mike Wittrup Pratul Patel Charles Lilly

Convert Social Media Fans: 

Convert Social Media Fans Rolling Stones: Nina Abraham Michael Howard Mohammed Hossain Chris Koralik Michael Zureich

Social Media Initiatives: 

Smartphone app, that enables users to locate places of interest, using the GPS in their phone. Professional network, allowing businesses and business professionals to communicate and share contact information. A means to communicate with others via instant messaging, which is limited to 140 characters. Social networking program that allows users to share profiles, pictures, videos and to communicate to others. Deal-of-the-day website, that allows users to find deals in their local markets. Deals based on minimum demand. Daily deals offered on unique experiences, which are shared with friends and family. Social Media Initiatives

Social Media – Foursquare Overview: 

Social Media – Foursquare Overview Over 8 million users worldwide – 35K new users added per day Over 2.5 million check ins per day Check ins at HRHC – 3400+ Check ins at Angels & Kings – 250+ Check ins at Angels & Kings on Clark St – 1118

Social Media – Foursquare Competitive Landscape: 

Social Media – Foursquare Competitive Landscape Check ins at theWit Hotel – 2500+ Check ins at ROOF on theWit – 4600+ Special for ROOF – The Mayor receives immediate entry and no cover w / a guest. All other users receive 1 complimentary small plate w/ purchase of a signature cocktail Check ins at the Affinia Hotel – 650+ Check ins at C-View 360+ Special for both the Hotel & C-View – Complimentary dessert when you check in

Social Media – Foursquare Recommendations: 

Social Media – Foursquare Recommendations Create Specials that are both rewards program specific specials as well as for the general public Place links to Facebook, Twitter, & LinkedIn pages on Foursquare info page Use Foursquare as a testing ground for new deals and specials – Allowing HRHC and A&K to track success of new deals while reaching a geo-targeted consumer group

Social Media - Foursquare : 

Social Media - Foursquare Recommendations Hotel Room upgrade (if available) for any loyalty club member upon check-in Could also add discounts or coupons to A&K and/or China Grill in order to increase on property spending Angels & Kings $50 comp tab when on your 25 th check-in 1 Free Cocktail for Mayor upon check-in China Grill Free Appetizer on 10 th Check-in 20% off of bill upon 20 th check-in

Social Media: LinkedIn: 

Social Media: LinkedIn Business-Oriented Social Networking Site Over 100 million registered users globally; 44 million US users Biggest Internet Company IPO Since Google New Member almost every second Allows you to follow companies You can see who your connections are following

LinkedIn: Current Homepage: 

LinkedIn: Current Homepage

LinkedIn: Seminole Hard Rock Hotel Homepage: 

LinkedIn: Seminole Hard Rock Hotel Homepage

Social Media-LinkedIn: 

Social Media-LinkedIn Update Homepage Promote Events & Rewards Get More Followers Benefits Outweigh Costs More Business Customers=More Revenue

Social Media-Twitter : 

Social Media-Twitter There are more than 30 million Twitter users The largest Twitter demographic is the 45 to 54 bracket , closely followed by 25-34 year-olds

Social Media-Twitter : 

Social Media-Twitter Hotel Hyatt HRHC Followers 4,974 3,622 Tweets 5,403 1,275 We need 3,000 Followers per month to not only catch up with followers number but also to increase 20% web traffic on many website that will save HRHC the OTA fees

Social Media-Facebook: 

Social Media-Facebook Over 500 Million Active Users Hard Rock Hotel Chicago Likes: 4,665 Check-ins: 2,264 Angels and Kings: Likes: 2,268 Check-ins: 38 Competitors : Hotel Likes Check-ins Hyatt Chicago 5,399 4,068 Trump International 5,638 541 Palmer House 1,045 2,278

Social Media-Facebook: 

Social Media-Facebook

Social Media-Facebook: 

Social Media-Facebook Strengths Weaknesses 1. Completely Filled Out Profile 1. Few Professional Photos 2. Business Account Used 2. Deals= posted on wall and no special tab 3. Interactive Wall: updates posted & discounts/ package deals 3. Homepage= wall, lacks conversion capability 4. Show Personal Side to Company 4. Customers cannot post on wall 5. Allow customers to post pictures 5. No incentive to “like” or “check-in” 6. Page updated regular basis 6. No Polls/ asking questions to customers 7. “Like” pages relative to HRHC business 7. No connection to other social media outlets: Twitter, LinkedIn, Reviews at Yelp & Trip Advisor 8. Post upcoming events & links to website 8. No Facebook Vanity URL

Social Media-Facebook: 

Social Media-Facebook

Social Media-Facebook: 

Social Media-Facebook

Facebook Recommendations: 

Facebook Recommendations Homepage Book Your Reservation Now Rock ‘n’ Roll Feel Professional Photos Increase Quantity Rooms, Suites, Wedding Receptions, Famous Guests, Events

Facebook Recommendations: 

Facebook Recommendations Deals Make Own Tab Include on side of Homepage Exclusive deals for followers Connection to other Social Media sites Twitter alerts LinkedIn page R eviews from Trip Advisor & Yelp Special Retreat Packages Show available packages Business Romantic Getaways Bachelor/Bachelorette Parties

Social Media – Financial Analysis: 

Social Media – Financial Analysis Investment: Social Media Expert Estimated Salary: $45,000 Conversion Rate Months 1-3: 1.5% occupancy increase Months 4-12: 3% occupancy increase Goal Followers at End: Current HRHC Current Hyatt Goal State Twitter 3,622 4,974 5,974 LinkedIn 43 200 300 Foursquare 3,469 5,593 6,593 Facebook 4,665 5,399 6,399

Social Media – Financial Analysis: 

Social Media – Financial Analysis Obtain 50% of Goal Followers (3,755) within 3 months Obtain remaining 50% in Months 4-12 (3,755) Average Revenue per Conversion: $300 Deal for one night stay: $100 (Groupon, LivingSocial ) Average Stay Period: 3 days Total Followers (All Outlets) New Followers (All Outlets) Conversion Rate New Occupancy Rate Months: 1-3 15,545 3,755 1.5% 66.5% Months: 4-12 19,300 3,755 3.0% 68%

Social Media – Financial Analysis: 

Social Media – Financial Analysis Sales Increase Months 1-12: 3.8% Expense Increase: 0.2% of total costs

Questions?: 

Questions?

Develop Rewards Program: 

Develop Rewards Program Drummers: John Hewitt Manish Khosla Youlin Li Daniel Sierra Marek Sliwiak Ying “Robin” Tsou

Outline: 

Outline Current Program Market Assessment Voice of Customers Reward Program Recommended Financial Analysis Reward Program Benefits Reward Program Implementations Summary

Existing Rewards Program: 

Existing Rewards Program 10% off the standard minimal blackout dates Exclusive business travelers email promotions Complimentary 24-hour business center (keycard access) Free membership Some blackout dates

Competitors Rewards Programs: 

Marriot 30,000 points for purchased membership 5 points for each dollar spent at Marriot locations 2 points for $1 spent at partners Hyatt 5 points for every $1 spent at Hyatt locations No blackouts Point conversion to Travel Partner miles Hilton 10 Base points per $1 of eligible purchase 1 point airline miles per stay with partner airlines Starwood 1 point for every $3 spent No blackout dates Gift certificates for membership, conferences and retail purchases. Competitors Rewards Programs

Proposed Strategy: 

Proposed Strategy HRHC Rewards Program Compete On: Price (free membership) Discounts (10% off each stay through point earning/redemption) Perks (e.g. easy to redeem, free Wi-Fi, earlier check-in, etc.) *May form alliance with other HR hotels and independent, up-scale hotels e.g . Global Hotel Alliance, in the future. HRHC Does Not Compete In: Access (only 1 location) Point Accumulation Through Purchases (Room Stays Only) Point Accumulation Through Partnerships*

Voice Of Customers : 

Voice Of Customers

Customer Preferences : 

Customer Preferences Feature Market Presence Cash Back 56% Point/Miles Redeemable for Merchandise or Upgrades 47% Prepaid/Gift Cards 30% Free Merchandise or Upgrades 27% Discounts for Merchandise or Upgrades 17% Members Only Benefits 14% Rebates on Gas Purchases 13% Money Added to a Prepaid/Gift Card 8%

Rewards Program Features: 

Rewards Program Features Earn Points : 10 points for each $1 spent on qualified room rates Redeem Points : $ 1 = 100 pts at low season (1 night free/10 nights stay ) $ 1 = 120 pts at high season (1 night free/ 12 nights stay) Incentive for signing up program (membership card) Points earned/Redeemed for: HRCH free nights and room upgrades China Grill and Angels & Kings bar Performances at the HRHC No black out dates Earned points transferable (to family, friends, colleagues, etc .)

Impact of Program on Revenue: 

Grocery Chain Impact of Program on Revenue Example 1 Example 2

Financial Analysis Assumptions: 

Financial Analysis Assumptions Occupancy increase due to rewards program: 6% Occupancy at low season < 90% No cannibalization for points redeemed at low season Occupancy at high season: ~ 100% Rooms for point redemption at high season limited 5% Investment due to reward program (e.g. IT, etc.): $10,000 0.5 headcount to manage rewards program

Financial Impact Analysis: 

Financial Impact Analysis

Other Benefits to HRHC: 

Other Benefits to HRHC Rewards Program: Improve CRM, and leading to Customer Loyalty Capture data on customers’ trends and preferences Improve HRHC brand name awareness in the long run When designed and implemented properly: An important building block of CLV (Client Lifetime Value); Create an asset vs. liability for the company.

Rewards Program Best Practices: 

Rewards Program Best Practices Focuses on experience and familiarity vs. shifts of cost, habits and customization. Develop Dynamic tiers - Provide flexibility in redemption intervals and choices Effective web support Integration with Four Square to offer spontaneous/unexpected on-property rewards Integrate rewards program access into iPhone apps. Working with social media solution to promote this rewards program

Rewards Program - Summary: 

Rewards Program - Summary Suggested Program Earn Points: 10 points for each $1 spent; Points earned for: HRHC, China Grill and Angels & Kings, and performances at the HRHC; Incentive for signing up program (membership card); No black out dates; Earned points transferable; Integrate rewards program access into iPhone apps. Next Steps Marketing group to run pilot test; Update Web Site to support rewards program; Investigate the impact of joining independent hotel Alliances, e.g. GHA, Leaders club, Stash hotel rewards, etc. Investigate Multi-Industry Align strategy -- Allied with multi-industry business, e.g. Car rental, Banks, Department stores, etc.

Financial Impact - Summary: 

Financial Impact - Summary

Questions?: 

Questions?

Outro: 

Outro Sona Moorthy

PowerPoint Presentation: 

Worked Hard… Time to Play Hard!