the leader in hospitality merchandising technology€¦ · the leader in hospitality merchandising...

The Leader in Hospitality Merchandising Technology

A cloud-based, mobile-first,data-science approach to

personalized merchandising

The Leader in HospitalityMerchandising Technology

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Nor1 has over 100 million unique guest buyer behavior records and has made over 500 million offers making it the unequivocal leader in upsell data. Coupled with this “Big Data”, Nor1 has multiple patents on upsell merchandising and pricing that provide the foundation for the industry’s only fulllifecycle merchandising platform.

Taking a mobile first, data-driven approach to maximizing revenue and consumer satisfaction for hotel guests worldwide by making highly relevant offers at the time the guests are ready and willing to buy the products and services that will enhance their trips

• Silicon Valley Based • Domain expert & technology leader in Merchandising with a Consulting & Product approach. • Solutions for every Upsell Service Point. • Ability to create large, enterprise scale, customized solutions and applications. • Global Presence Offices in the US, Germany, Mexico and India.

Nor1 Merchandising PlatformCreating Personalized Commerce at the Intersection of Mobile & Artificial Intelligence

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• Predictive modeling engine trained on millions of historical transactions

• Makes real-time decisions on product selection, pricing,and display rank

• Leverages data from consumer and supplier profiles, behavioral observations, real-time transaction information,and inventory availability for offer optimization

• Understands consumer’s willingness to pay and can steer demand on behalf of supplier

2 Patents issued: • “Computer-Implemented

Systems and Methods for Automatic Merchandising”

• “A Method and a System for Simultaneous Pricing and Merchandising”

• Unique buying process that allows merchants to price and merchandise perishable inventory more effectively

• Utilizes PRiME® technology to optimize offers

• Platform that connects travel consumers and decision makers

2 Patents issued: for “Method for Transacting for a Perishable Object Having an Uncertain Availability”

• Create a Front Desk Upsell Brand Standard

• Utilizes PRiME® technology to optimize offers

• PMS Agnostic• Empowers Front Desk staff

to maximize upsell opportunities.

• Agent Portal drives top of mind awareness

• Management Module providing pre-shift intelligence, reporting and administrative tools.

• Scalable, sustainable training

• Upsell / Ancillary Offers across reservationlife-cycle

• Delivery mobile optimized• Room Inventory• Hotel Amenities• PRiME® intelligence

applied to offer sets• API & SDK provided for

broad integration

@ Booking Check-in On-PropertyPre-arrival

• Enables hotels and resorts to make confirmed upsells to their guests based on last-minute inventory

• Delivers upsell offersthat take into consideration eStandby® requests and can be scheduled all the way to day of check-in

• Offer timing, pricing and merchandising all driven by PRiME® (Machine Learning/ Artificial Intelligence)

• Room offers based on real-time inventory access

Global Hotel Partners

Adina American Casino Entertainment Ameron GroupApex Hotels Aqua Resorts art'otel Austria Trend Boyd GamingCandlewood SuitesConradCountry Inn & SuitesCrowne PlazaCurioDanat Hotels & Resorts Denihan Hospitality Destination HotelsDolce HotelsDoubletreeEmbassy SuitesFairmont Far East Hospitality

First HotelFoxwoods CasinosGolden NuggetGreat Wolf ResortsHampton HotelsHilton Garden InnHilton Grand VacationsHoliday InnHoliday Inn ExpressHomewood SuitesHotel du VinIbisIndigoInterContinentalInterstate Hotels & ResortsKarisma Hotels & ResortsKempinskiKerzner International ResortsKimptonLindner HotelsLoews Hotels & ResortsLUX Resorts

Luxury Family HotelsMagnolia Hotels Malmaison Marmara Hotels CollectionMedina MercureMgalleryMillennium HotelsMoevenpickMyhotelsNovotelOne&OnlyPan PacificPark Inn Park Plaza Prince ResortsPrincipal HayleyPullmanQHotels Radisson Radisson BluRaffles Hotels & Resorts

Rixos HotelsRotanaShangri LaSofitel Sonesta CollectionStation Casinos Staybridge SuitesSteigenberger Hotels Tiara Hotels & ResortsTravelodge Tryp Vibe Viceroy Hotels & Resorts Village Urban ResortsWaldorf Astoria Hotels & Resorts Warwick Hotels Wyndham Wyndham Grand Wynn

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Total Countries live: 120 Currencies: 50 Languages 19

Nor1 Global Footprint

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World Class Team: Mix of technologists, data scientists, and travel industry veterans (Priceline, Expedia, Google, Yahoo!, Oracle). Headquarters in Silicon Valley with offices in Mexico, Germany, Singapore and engineering office in Bangalore, India.

What is the Revenue Value of the Upgrade Lifecycle?

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Point of Booking (Including Confirmation Email) Day Before/Of Arrival & At Check-In

• Based on a Standard Hotel: (~350 Rooms; 3-4 Star) – Stats for Luxury and Resort higher

• Based on room inventory upgrades – Stats for other non-room merchandising offers vary, however these offers increase Reservation Shopping Cart percentages: (F&B; Spa; Parking; Early/Late Check-in)

AverageUpgradeAmountNightly:

$33AverageIncrease in Reservation

Shopping Cart:

22%

ConsumerDemand:

20%

AverageUpgradeAmountNightly:

$39AverageIncrease in

Reservation Shopping Cart:

26%

ConsumerDemand:

12%

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State of the Art Intelligence Applied to Every Guest Upsell Transaction

Pricing & Merchandising – Real Time Predictive modeling engine trained on millions of historical transactions that leverage machine learning techniques, starting with a global model then gradually over time matures to an individual property, pricingeach upgrade offer accordingly.

2 PRiME® Patents issued: • “Computer-Implemented Systems and Methods for Automatic Merchandising”• “A Method and a System for Simultaneous Pricing and Merchandising”

Right Product, Right Price, Offered at the Right Time, To the Right Guest

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• Leverages each guest interaction throughout reservation

• Makes real-time decisions on product, pricing – speeding check-in and assuring the right revenue, guest service decision is made

• Predictive modeling engine trained on millions of historical transactions

• Understands consumer’s propensity to “buy-up” and can steer demand on behalf of supplier

Nor1’s Patented Decision Intelligence Engine

Classification Modeling Optimization

Real-time transaction data is merged with historical buyer data and statistically classified in real-time.

Price sensitivities and product preferences are described with simultaneous equations, capturing the interactions between product assortment and price sensitivity.

Millions of possible product and price combinations are evaluated in less than 70 milliseconds, and the optimal pricing and merchandising is returned.

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Unprecedented Analytics in Real-time

Anchoring: The effect of pricing and merchandising sequential in time. Anchoring occurs when the price for one product observed by a consumer at one point in time affects the consumer’s willingness-to-pay for the same product or a related product at a later point in time.

Referencing: The effect of pricing and merchandising adjacent in space.Referencing occurs when the price for one product observed by a consumer at that time is compared to the price of another product at the same time.

PRiME is engineered to observe these two phenomena (among others) and choose a product assortment with prices that maximize profit subject to arbitrary constraints and uncertainty

Incremental

PricingasaProportionofOriginalPurchaseAm

ount

Wou

ld-BeTotalValue

ofU

psoldPu

rchase

OriginalPurchaseAmount

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Two Key Upselling Phenomena Handled in

Merchandising Life-Cycle Intelligence Driven Approach

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All Merchandising Transactions EnterPRiME® the Nor1 DecisionIntelligence Engine

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Universal Upsell Management Portal“One-Stop Shop” for all Upsell Administration

Manage offer content,business rules, or pricing& merchandising intelligencefor any upsell offer acrossthe reservation life-cycle.

* Based on 2016 results, Nor1 data scientists have estimated guest demand for upgraded inventory to be greater than $25 per booking for full service hotels. How much of that demand are you able to convert to revenue?

The Future of Upselling - Nor1’s VisionUniversal Upsell Platform that Drives Revenue and

Maximizes Guest Intelligence

The Problem: Most hotel organizations employ a disjointed upsell approach (or none at all!) that leaves significant revenue on the table and additionally loses the opportunity to enhance their guests’ stay (especially highest tier loyalty guests). The Solution: Nor1’s revenue driven solution to this is providing an entire upsell platform that strategically combines and leverages the intelligence from every transaction involving premium inventory. This platform integrates eStandby® Upgrades, Pre-Arrival Mobile Upgrades and Check-in Upgrades (Front Desk or eCheck In). The Nor1 pricing and merchandising engine, PRiME®, provides a central intelligence source across all these transactions, maximizing the revenue value of premium inventory and additionally freeing standard inventory. Nor1 has proven, over a ten year track record and hundreds of millions of transactions, that a tremendous percentage of guests are willing to pay for upgrades - even premium tier loyalty guests. For the guests, this action improves their perceived value and stay satisfaction.

State of the Art Technology Tailored to your specific needs

Nor1’s CheckIn Merchandising™ is cloud based, and can be tailored to the specific needs of each organization. This “buffet approach” allows you to design a solution that fits your existing revenue strategies and your current technologies.

Integration is a key to creating the most powerful solution: CheckIn Merchandising™ can be offered via a variety of integrations from “zero-touch” to a full enterprise (PMS; CRS; CRM; and/or Revenue Management Systems). The higher level the integration (0, 1 or 2 Way), the greater the precision in inventory management and operational efficiency.

Nor1 is a Gold Level Development Partner of Oracle, and is certified by Agilysys.

Leading Technology Tools: Nor1 utilizes a significant array of technology tools to build its upsell platform. SAS 9.4/SAS Visual Analytics, Hadoop, MongoDB, Angular JS, Django, k-means clustering, and Python.

Engineering Firepower: In addition to its product develpment and engineering team located in Silicon Valley, Nor1 maintains an engineering presence and facility in Bengaluru, India. This allows Nor1 to provide project based engineering efforts to support any customization needs you have, large or small.

• Revenue is Optimized. The PRiME® decision engine leverages all eStandby® upgrade offer intelligence to improve pricing at check-in.

• Guests are Managed Correctly. All eStandby® guest transactions are considered when CheckIn Merchandising™ upgrades are created. If a guest has accepted and been awarded an eStandby® upgrade they will not be offered a room upgrade at check in (this is identified to check in agent). This is an ideal opportunity to make a non-room offer.

• “One Stop” for Upsell Strategy. eStandby® and CheckIn Merchandising™ are seamlessly integrated and share the same operational, reportingand intelligence platform. Administering CheckIn Merchandising™ is performed from the same upsell dashboard.

• Integrations are Leveraged. All existing eStandby® integrations can be leveraged to support CheckIn Merchandising™. (This includes any Oracle OXI licenses).

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CheckIn Merchandising™ and eStandby® upgrades fully compliment each other and when used together, create a powerful revenue mechanism.

Integration

Empowering Front Desk agents to make relevant, revenue maximizing offers

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• Drives Optimized Revenue Production with Intelligent Offers & Pricing

– On average $2+ incremental RevPAR for Business Hotels –$4-$6+ Resort/Destination, the majority straight to the bottom line.

• Increases Guest Engagement and Satisfaction

– What is measured is managed and increased. Real-time performance metrics motivate team to engage each and every guest with a strategic merchandising offer with a focus on enhancing the guest experience.

– Surveys have validated that guests who receive upgrades (paid &unpaid) experience a 10%-20% higher level of satisfaction.

• Creates Operational Efficiency & Reduces Expensive Overhead – Transforms all front desk agents into empowered, engaged upsellers – Real-time offer generation saves significant effort of Agent/Team at

Check-in. – Management System – Saves hours and effort of team, so they can

focus on serving guests17

Benefit Summary

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• Various types/levels of Integration (PMS Agnostic)• Designed to drive agent behavior via Education, Gamification,

Incentification• Powered by Nor1’s PRiME® Pricing & Merchandising Intelligence

Platform – Real Time Offers provided to CheckIn team• Complete integration with eStandby®, eXpress Upgrade™ and

eReach™• Corporate Level Transparency & Management• “One Touch” - Goal, Incentive, Commission & Audit Management• Hotel Outlets (Restaurant, Spa, Bar) merchandised along with

Room Inventory

Feature Summary

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Real-time Individual Performance Tracking and Team Comparison is key to consistent agent motivation.

Today’s Arrivals: • Find guests easily and quickly• Instantly identify recommended action for

each arrival• Facilitates intelligent and effective guest

communication

Empowering, Motivating, Educating Your Check-in Agents

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Agent Upgrade Details – Total Revenue Revenue is automatically reconciled between the PMS and CheckIn Merchandiser.

• When the revenue is finalized in the PMS, the value is displayed in blue in the Total Revenue column.

• If the revenue has not been finalized and could change in the future

o Because the guest has not checkedout yet. – OR –

o Because the guest has already checked out and the revenue is missing in the PMS, the value is displayed in gray.

Agent Upgrade Status Clicking on an agent’s upgrade status will display the Upgrade Details for all of that individual agent’s successful upgrades

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Agent Upgrade Details – Error Notification The column with the eyeball icon (highlighted) displays icons to notify agents and program managers when there is an error or inconsistency with an awarded upgrade, either in CheckIn Merchandiser or the PMSwhich affects revenue or commissions

Agent Upgrade Status Clicking on an agent’s upgrade status will display the Upgrade Details for all of that individual agent’s successful upgrades

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Error Notification Icons: • Missing Revenue in PMS – Occurs when an

Agent doesn’t post the charge in their PMS– OR – A charge was removed in the PMS but the upgrade was never changed from “Accepted” to “Another Time” in CheckIn Merchandiser

• Unassigned Agent – Occurs when an Agent does not use the CheckIn Merchandising® app to award the upgrade

• Assigned Agent did not use the app – Occurs when a Program Manager manually assigns an Agent to an upgrade that was previously Unassigned

• Mismatching Revenue – Occurs when an adjustment to the upgrade charge is made in the PMS – OR – Agent doesn’t post the correct charge in the PMS

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Unassigned Upgrade Details Note the column with the eyeball (highlighted) displays Unassigned Agent icons to notify agents and program managers when an upgrade was not awarded in the CheckIn Merchandising® app.

Unassigned Upgrades Status

Clicking on unassigned upgrade status will display the Upgrade Details for all Unassigned upgrades

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Unassigned Agent Dropdown

Clicking on Unassigned for each upgraded reservation will display a dropdown containing the names of Agents for the Program Manager to assign the upgrade to when appropriate

CheckIn Merchandiser™ allows exclusionof certain guests (elite loyalty tier, groupor VIP), so you don’t have to worry about breach of marketing or brand agreements, and can focus on creating greater guest satisfaction and driving repeat business.

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Nor1’s CheckIn Merchandising™ provides you with the best of both worlds. Statistical precision with the PRiME® Decision Engine generated offers assuring optimization of revenue, and the flexibility for each property to control the types of offers they provide to their guests, based on an intimate understanding of their property and guest’s needs.

• Decision Engine Offers – Employs Machine Learning and Artificial Intelligence methodology, along with Business Rules to present 2 room inventory offers that are next in the upgrade path

• Limited Inventory Offers – These manually defined offers will be presented once inventory of all room categories falls below a set value. These offers can be room or non-room products, including F&B, Vouchers, Spa, Bar, etc.

• Staff Recommended Offers – Are ideal for identifying specific segments of guests (Loyalty; Business/Leisure; Groups) or timing related segments (Day of week; Time of day; Coming soon). Employing business rules, SROs are manually defined and can be inventory or non-inventory offers.

• Show All Offers – Priced by PRiME®, Show All Offers are conditioned solely on available inventory and displays all available Room Inventory Offers not previously displayed for this guest in addition to the Decision Engine Offers and SROs already displayed.

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Offer Types Overview

Offer Sets may be comprised of: • Only Decision Engine Offers (If no

LIOs or SROs have been created) • Only LIOs (An offer set cannot have

both Decision Engine Offers and LIOs)

• Decision Engine Offers AND SROs • LIOs AND SROs • Only SROs

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Decision EngineOffers

Limited Inventory Offers

(LIO)

Staff Recommended

Offers (SRO)

Show All Offers

Pricing ML* ML or Manual ML orManual ML

Item Selection ML Best Offer Set Manual Manual ML Max

Offer Set

Conditioning

Inventory Based

Business Rules Engine



Inventory Based

Agent Notation None

Textual and Red Ribbondisplayed

Green Ribbon displayed None

*ML = Machine Learning

Offer Types Overview

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PRiME® Decision Engine Offers

• Employs Machine Learning and Artificial Intelligence methodology

• May contain Business Rules* which should be capped at no more than 3 conditions

• Offer quantity is currently capped at 2 offers

*Business Rules are standard if/then expressions utilizing data fields including By Date (arrival, stay, departure); By Day of Week; By Code (Booked Room, Current Room, Rate Code, Loyalty, VIP, etc.)

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• Can be set for any value. Once inventory of each room categories reaches that value or lower, the condition is met.

• Multiple Offers can be defined for this condition. All offers defined will be displayed when condition is met.

• Manual Pricing is achieved by narrowing the constraints (Ceiling; Floor) to a specific price.

• Manual Item Selection requires user/manual creation of specific offer.

• LIO can be room or non-room products. This includes F&B; Vouchers; Spa; Bar offers.

• Red Ribbon Labels Offer type for Agent


Staff Recommended Offers

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• Business Rules* should be capped at no more than 3 conditions. ie: If this is true and this is true and this is true

• SRO can be inventory or non-inventory offers. Because of the nature of conditioning; they are ideal for identifying specific segments of guests (Loyalty; Business/Leisure; Groups) or timing related segments (Day of Week; Time of Day; Coming Soon).

• Green Ribbon Labels offer for Agent.

*Business Rules are standard if/then expressions utilizing data fields including By Date (arrival, stay, departure); By Day of Week; By Code (Booked Room, Current Room, Rate Code, Loyalty, VIP, etc.)

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Decision Engine Offers


Sample Combination Offer Set Decision Engine & Staff Recommended Offers

“Show All” Button Displayed only when additional room inventory is available

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Sample Combination Offer Set Limited Inventory & Staff Recommended Offers



Sample Combination Offer Set Decision Engine, Staff Recommended & Show All Offers

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Decision Engine Offers


Show All Offers

Show All Offers

• Displays available Room Inventory Offers not previously displayed for this guest in addition to the Decision Engine Offers and SROs already displayed

• Priced by PRiME® Decision Engine • Conditioned solely on Room Inventory

available

Once offer has been verbally communicated to the guest, module requests the outcome. Either the

guest accepts or not.

Collection of the guest decision is a critical element in measuring the effectiveness of every offer so PRiME® will have access to the information for future offer creation.

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Once the front desk agent upgrades the guest in the Check-in Merchandiser, a fixed charge will be added to the reservation in Opera

“1 Click” Fixed Charge Posting


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Exclusion Management:• Can be set

by bulk or individual

• Make offersto those who should receive offers

Pricing Override (authorization-based):

• Agents may offer a different rate

• Allows the agent to respond immediately to guest reaction to offer

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Comments can be entered for a specific reservation. This is helpful in making note of special requests from guest that can be used to better serve the guest later in the stay. Additionally, this is where information is collected from agents that is used to help improve system functionality and operational efficiency.

CheckIn Merchandiser™ ModuleEmpowering, Motivating, Educating

Your Check-in Agents

Constant Improvement Every screen has a link that provides users the ability to communicate their thoughts and suggestions directly with the Nor1 Product team. We work together with our clients to constantly refine and evolve the solution.

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Partial Stay Awarding:CIM accounts for changes made to upgrades: 2nd day upgrades andIn-stay room moves.

Nor1/OperaOperational Steps

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1. Look up the Guest Name in Opera / Verify upgrade options in CheckIn Merchandiser

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2. Make the most appropriate offer from choices provided

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3. Record Response: Accepted (Posts Fixed Charge)

Decline (Makes Stronger Future Offers)

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4. Update the room type in Opera if upgrade accepted and check the guest in

1. Look up the Guest Name in Opera / Verify upgrade options in CheckIn Merchandiser

2. Make the most appropriate offer from choices provided

3. Record Response: Accepted (Posts Fixed Charge) Decline (Makes Stronger Future Offers)

4. Update the room type in Opera if upgrade accepted and check the guest in

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Opera Operational Steps

This dashboard provides “Real-Time” detailed insight into agent, team, property, group, cluster, and brand performance: agent-by-agent; shift-by-shift, day-by-day.

This insight allows agents and management to understand trends, gaps and opportunities by time period, inventory type and agent, presented consistently and transparently.

All of Nor1 Operational Performance stats are maintained securely in the “cloud” and generated via our web application and SAS.

Note: All reporting is top-down driven with a wide variety of configurations possible. Chain, Brand, Region; & Cluster level reporting are all possible and easily administered.

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Performance & Operations Dashboard What’s measured is managed. . .

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GM 60-Second Snapshot

Each standard report has been created by assessing very closely the role of the intended user, that user’s operational objectives and decisions they need to make in order to be successful.

The GM’s 60 Second Report has been designed to provide updated status of both CheckIn Merchandising as well as eStandby, status of goals, and the names of high performing team members. All in less than 60 seconds.

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Program Coordinator Report

Snapshot of CheckIn Merchandising™ & eStandby® Revenues

Tracks MTD Agent Activity

Breaks out MTD Commission

Used to balance

Break down by Rate Code Number of Check-ins by Hour

Arrival Volumes Check In Heat Map

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Examples of Advanced Reporting

Education vs. TrainingBehavior Modification ToolsCustomized To The Needs Of Each Property –

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• On-Site: Procedural and Skill-based launchtraining, customized to client needs

• On-Time: Improvement training provided regularlyby Nor1 Instructors & Support Staff

• On-Demand: Knowledge Base integrated directlyinto Upsell Portal

• On-Call: Nor1 Account Managers provide support as needed on an “on call” basis.

Most importantly to a sustainable and scalable check-in solution, Nor1 education also occurs real-time and directly as part of the CheckIn Merchandising™ application (Agents learn/reinforce learning the more they use the system).

Education Approach & Philosophy

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State of the Art corporate training theory is based onan evidence based approach referred to as “70/20/10”where true learning and education occurs based onthe following:

• 70% from real life and on-the-job experiences,task and problem solving.

• 20% from feedback and from observing and working with others.

• 10% from formal training such as classes or courses (both face-to-face and online)

The Nor1 Solution follows this powerful education paradigm, assuring that all your front desk staff are efficiently and continuously trained.

WeMakeMerchandising

Company Confidential.Do Not Copy or Distribute© 2016 Nor1 Inc. All Rights Reserved

“Nor1”, “Powered by Nor1”, “Nor1 Upgrade Your Life”, “eStandby”, “eStandby Upgrade”, “Nor1 Upgrade”, “PRiME”, “Front Desk Integration”, “eFDU”, “CheckIn Merchandising”, “eXpress Upgrade”, and “eReach” are representative of some of the logos and trademarks registered by Nor1, Inc.

Copyright © 2004-2017 Nor1, Inc. All Rights Reserved

The Nor1 system and/or its use is covered by Patents 7,249,062, 8,170,925, 8,271,337, 8,285,599 and other patents pending.

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the leader in hospitality merchandising technology€¦ · the leader in hospitality merchandising...

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