venky rangachari cto, wyndham hotel group · venky rangachari cto, wyndham hotel group. wyndham...
TRANSCRIPT
Wyndham Worldwide is one of the world’s largest hospitality companies
with over 3.8 Billion of Net Revenues(1) in 2009
World’s largest vacation exchange
network and one of the largest
global marketers of vacation rental
properties
More than 65,000 properties in
approximately 100 countries
33% of WYN’s 2009 combined
segment EBITDA(2)
World’s largest hotel company, based
on number of hotels
World’s largest lodging loyalty
program, based on participating hotels
Nearly 7,200 hotels and
approximately 606,000 rooms
98 million room-nights sold in 2009
Nearly 8% of U.S. hotel room supply
20% of WYN’s 2009 combined
segment EBITDA(2)
World’s largest vacation ownership
developer and marketer
More than 155 vacation ownership
resorts with approx. 20,000 units
throughout North America, the
Caribbean and South Pacific
More than 820,000 owners of vacation
ownership interests
47% of WYN’s 2009 combined segment
EBITDA(2)
(1) Includes Corporate and Other
(2) Combined segment EBITDA percentages calculated excluding Corporate and Other
Wyndham Worldwide Overview
Wyndham Hotel Group franchises hotels in the upscale, midscale,
economy and extended-stay segments of the lodging industry and
provides property management services to owners of luxury and
upscale hotels
Wyndham Vacation Ownership markets and sells vacation
ownership interests to individual consumers, offers consumer
financing in connection with the sale of vacation ownership
interests and provides property management services at resorts
Wyndham Exchange and Rentals provides vacation exchange
products and services to owners of intervals of vacation ownership
interests and markets vacation rental properties primarily on behalf
of independent owners
Wyndham Worldwide Overview
Wyndham Hotel Group is the largest hotel company in the world*
# of Hotels # of Rooms
Wyndham Hotel Group 7,000+ 590,000+
Choice Hotels International 5,827 472,526
InterContinental Hotels Group 4,186 619,851
Best Western International 4,000 305,000
Accor 3,982 478,975
Hilton Worldwide 3,265 545,725
Marriott International 3,178 560,681
Carlson Hotels Worldwide 1,013 151,077
Starwood Hotels & Resorts Worldwide
942 284,800
Top Worldwide Lodging Franchisors
Source: Hotels magazine, June 2009, Top 50 Hotel Companies
*By number of hotels
Competitive Landscape
Apollo recommendations developed through a thorough, phased process...
Create factbase and
identify highest potential
opportunities
Develop business case
for each opportunity
Build
transformation
roadmap
Analyses conducted:
Assessed current financial
state of business
Conducted interviews with
WHG staff and customers
to identify pain points
Mapped structure of IT
systems
Conducted deep dive into
five identified
opportunities:
Brand.com
CRS Evolution
Right Rate
OTA
International
Identified root causes,
developed
recommendations, and
modeled financial impact
of recommendations
Determined
sequence of
initiatives within
each Mission
Created overall
roadmap across all
Missions and
identified
interdependencies
/ risks
Modeled near-term
P&L impact
Business Transformation• Introduced Apollo as
the Business Transformation Initiative
• Created a visual roadmap to explain components
• Created metrics to measure progress
8
Apollo has seven new Missions...
Compete effectively
through CRS evolution
Create a stable Internationalplatform for longer-term
growth
Deliver the Right Rate at the right
time
Improve connectivity and product offering
on OTAs
Improve contentto enhance
conversion across all channels
Drive conversion on
Brand websites
Streamline service delivery model to deliver
cost effective contact center
experience
9
Drive conversion on Brand websitesOpportunity
Improve consumer experience on Brand websites to increase conversion
on WHG's largest, fastest growing and most profitable channel
The situation
Brand websites are a significant, growing and profitable channel today,
but conversion lags competitors
Many consumers not satisfied with brand website experience and thus
less likely to book
On the website, 20% of overall visitors rated their experience as Fair or
lower
Average WHG brand website conversion of ~5% lags competitor average of
10%
Brand websites lag competitor hotel and OTA sites in both:
User content
Guest shopping experience
Last major upgrade to Core websites in 2006
10
The OpportunityOf consumers intending to book a reservation, those who rate the website
good or better booked 2.4 times more
40%
75%
+35%
(2.4x)
51
26
60
25
0
20
40
60
80
100
% of respondents who intended to make a reservation
No I did not
Started
but stopped
Yes I did
Consumers with a good or better rating
14
Consumers with a fair or lower rating
24
Phased Delivery & Cross-Mission Dependencies
• The “Phased Delivery” Approach– “Big-bang” deployments are difficult to execute
• Test and Learn
• Understanding cross-mission dependencies and design release schedules around them
– Focus on deliverables associated to the highest NPV and deliver them in logical phases
• EXAMPLE: Brand.com will deliver critical conversion elements via a “rolling approach”
Phased E-commerce approach
• Phase I segmentation
• Phase II Creative Design
• Phase III Functionality
• Build Metrics & evaluate decisions at every phase.
1. Change one thing at a time in order to measure conversion impact
2. Release little and often in order to ‘test and learn’ what drives conversion
3. Constant ‘tuning’ to maximise conversion
4. Relentless focus on metrics around speed, booking path and traffic sources to drive conversion
eCommerce Operating principles –“test and learn”
Passionate
Adventurers
Casual Weekend
ExplorersTravel MinimizersLoyal Road Warriors
Budget-Conscious
Planners
An individual’s Hotel / Travel Personality distinctly affects all aspects of travel behavior, from planning through booking
14
I’m very passionate about travel and take quite a few trips and vacations throughout the year – though I slightly prefer taking longer vacations.
I enjoy traveling just to travel and I do not need to have a destination or goal in mind. When I do travel, the hotel is part of the overall travel experience, and I enjoy looking at the features and amenities offered. I will even go out of my way to stay at special hotels.
Since I do travel quite a bit, I do the bulk of my research, planning, and booking online because it’s cheaper and brings many reliable sources together for easy comparison.
I enjoy traveling, but I don’t get a chance to do it very often. I would much rather take fewer, longer vacations rather than more frequent trips.
Since I don’t get to travel that often, it is very important to be thorough in my planning and sometimes the planning is almost as fun as going on the vacation itself!
I book very far in advance and I am fairly price sensitive. The hotel is not usually the focus of my travels and as such, I really just need some basic amenities.
I enjoy traveling, but definitely prefer taking shorter, more frequent trips rather than vacations. It’s fun to travel with no goal or destination in mind and just take things as they come.
I don’t really book my hotels ahead of time and I tend to stop at hotels I see along the highway. As such, I don’t really have many brand preferences and don’t like to be constrained by loyalty programs. The type of hotel doesn’t matter to me, I just need a place to sleep.
I travel very frequently, with close to a 50 / 50 split between personal trips and business trips. I don’t mind traveling, but it is not a passion of mine. Most of the time, I travel by car and I do not really book or plan very far in advance though most of my research is done online.
Since I do travel quite a bit, I am very involved with loyalty programs and almost always enroll in them. If possible, I tend to stay at hotels which I am a loyalty member so I can accumulate points / rewards. I also need to make sure I have access to the internet. Beyond that, I am fairly indifferent about all of the other hotel amenities and features.
I’m not very passionate about travel – when I do travel, it’s usually to go less than 300 miles from home by car. I take a few personal trips a year and rarely take long vacations.
When I stay in hotels, I really just need the basics and I seldom book very far in advance. The hotel is just a place to sleep and price is the most important thing I consider when I book hotels.
Importance of Cross Sell to improve contributions
http://staging.ramada.com/Ramada/control/index?variant=
All brands
automatically
checked by default
when a search is
conducted