roger taylor of quadriga presents the changing hotel market

A changing market & Vision…….

Roger Taylor CEOSeptember 2011

Agenda

1. Introduction

2. Changing Market

3. Vision & strategic response

Change...........

“Home” has overtaken “Hotel”

Hotel

Home

“Home” has overtaken “Hotel”

Hotel

Home

“Home” has overtaken “Hotel”

Hotel

Home

Guest behaviour

Technological Content Financial

Guest behaviour

Technological

2

4

6

8

10

HSIA device utilisation / 1m room nights

2006 2007 2008 2009 2010

Wifi

Wired

Source: Nick Price Mandarin Oriental

Guest behaviour

Technological

2

4

6

8

10

HSIA device utilisation / 1m room nights

2006 2007 2008 2009 2010

Wifi

Wired

Source: Nick Price Mandarin Oriental

Content

OTT v PayTV

Guest behaviour

Technological

2

4

6

8

10

HSIA device utilisation / 1m room nights

2006 2007 2008 2009 2010

Wifi

Wired

Source: Nick Price Mandarin Oriental

Content Financial

OTT v PayTV

Interactive system economics

BUT economics do improve with a Bundled Offering

Property skill gap acceleratingC

ompl

exity

Property skill gap

# of hotel technical staffPMS

CRES

HSIA

IRES

VOIP

Smart Room

1995 2003 2005 2008 2010

Source: Nick Price Mandarin Oriental

Corporate dynamics

Procurement Marketing

BrandsOwners

Accelerating

technology cycle

Solutions emerging for the lower and mid-market

0/1* 2* 3* 4* Total No of rooms (000's) 601 1,412 1,832 1,355 5,200

% 12% 27% 35% 26% 100%

Chains 120 269 428 534 1,351Independents 481 1,143 1,404 821 3,849

Approximate market value (€'bn) 4 19 28 31 825% 23% 34% 37% 100%

Quadriga room distributionSensiq 100% 100%Genesis 5% 30% 65% 100%CTV 20% 30% 30% 20% 100%Total 4% 10% 29% 56% 100%

Solutions emerging for the lower and mid-market

0/1* 2* 3* 4* Total No of rooms (000's) 601 1,412 1,832 1,355 5,200

% 12% 27% 35% 26% 100%

Chains 120 269 428 534 1,351Independents 481 1,143 1,404 821 3,849

Approximate market value (€'bn) 4 19 28 31 825% 23% 34% 37% 100%

Quadriga room distributionSensiq 100% 100%Genesis 5% 30% 65% 100%CTV 20% 30% 30% 20% 100%Total 4% 10% 29% 56% 100%

19

WHERE WILL BE IN THE FUTURE?

Vision

Convergence

Double Play / Triple Play

Network

HSIA

Audio visual

Convergence

Double Play / Triple Play

Network

HSIA

Audio visual

Operational efficiencies

Manage the “Bandwidth Challenge”

Seamless guest experience

Extended technological & economic relationship

Before / During / After hotel visit

Guest technology:catch-up or excitement?

Hotel technology:economic excitement

• Free v Fee• Internet (Tiered pricing, Managed bandwidth)

• TV (standalone & features)

• Content• “Technology fee”

• Bundled offerings

• Indirect revenue (in & out of the hotel)

• Hotel services• Advertising• 3rd parties

• Technology future proofing

Differentiated platforms & service

Sensiq

Sensiq-Lite / Net TV

PremiumMid-market

Budget

Smoovie / MyChoice

Wifi & Network

Further thoughts

• Nomadix, Micsystems............

• IP - Self regulation?

Change...........