attracting the new generation of hotel travelers
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Attracting the New Generation of Hotel Travelers
The Solutions GroupTeam: Mike Wahl, Sabrina Fruehauf, Antonio Martinez, Lea VandeZande, and Shane Mooney
Client: Best Western International
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Order of Business
1. Our Team
2. Reasons for being here?
3. Statement of Purpose
4. The Research
5. Facts, Evidence, Results & Recommendations
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Why are we here?
76
46
7580
0
20
40
60
80
100
Tradnl Boomer Gen X Millenial
Population
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Meet the Millennial’s
Demographics
Born between 1977 – 1999
76 million (new baby boom)
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Proven & Cutting Edge Marketing Tools
• Perceptual Mapping
High quality consumer insights into a brand’s current positioning.
Provides direction in satisfying the wants of consumers better
• Conjoint Analysis
Identifies the extent to which a consumer values a particular attribute in his/her purchase decision
Using math to uncover value system behind preference judgments
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Recommendation 1: Make More Adult Friendly
Business Travelers Leisure Travelers
Leisure Travelers
Leisure Travelers Business Travelers
21% 31%
6% 4%
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• Free WiFi - top-rated perk for business and leisure travelers
• Add adult friendly featureso Hotel baro Business centero Gymo Concierge service
• Minimize family-friendly featureso Poolo Kids play areao Hotel restaurant
Recommendation 1: Make More Adult Friendly
96%
60%
56%
39%
Top Consumer Touchpoints
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Recommendation 2: Improve Perception of a Clean, Friendly Hotel for Guests
• What customers prefer: clean hotels that have a feeling of home and friendly staff
• Customer perception of Best Western: opposite of preference
Business Travelers
Leisure Travelers
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Recommendation 2: Improve Perception of a Clean, Friendly Hotel for Guests
How?
• Communicate through marketing and advertisingo The customer's "home away from home"
• Implement corporate wide training for all staff members (at individual hotel level)o Emphasize importance of a clean and friendly hotelo Encourage staff to take the guest journeyo Discuss what your guests expect and how to meet those expectationso Increase expectations
• Evaluate progress - secret shopperso Management shares results with staff
Give guidance, recognition, enforce expectations and reprimand
• Incentivize management and staffo Make it a competition and provide rewards (free hotel stays, gift cards,
etc.)
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Recommendation 3: Increase pricing
Price vs. Preference
Hotel Rates
Business Travelers Leisure Travelers
Income and Marital Status
$0- $50,000
$50,001 - $75,000
$75,001 - $100,000
$100,001 - $125,000
Above $125,000
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Recommendation 3: Increase pricing
Hotel rates from hotel.com (check in 11/9/12, check out 11/10/12)
Hotel rates from hotel.com, requested for 11/9/12-11/10/12
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Recommendation 3: Increase pricing
• 83% of Business travelers make more than $ 50,000 a year (in leisure, it’s more than half of the people surveyed*)
• Most people are single (81% among Leisure, 69% among Business travelers) with over 90% having no children in both segments
Married 19.1%
Not married 80.9%
Marital Status of Leisure Trav-elers
$0-$50,000
$50,001 - $75,000
$75,001 - $100,000
$100,001 - $125,000
Above $125,000
Annual income distribution of Business travelers
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Recommendation 3: Increase pricing
How?
• Phase it into your communication with customers
o Pay more for revamped image of Best Western hotels focused on cleanliness and staff friendliness
o Increase in price goes with an increase in quality
o Increase advertising for “Best Western To Go” App 38% of Business Travelers use their mobile device to book travel 21% of Leisure Travelers
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Recommendation 4: Launch "Free Night" Loyalty Program
Leisure Travelers
Leisure Travelers
Leisure Travelers
# of nights to earn free night
29%
# of nights to reach “elite status”
29%
Program expiration date21%
Elite room upgrades7%
Elite amenities6%
Elite check-in bene-fits2%
Elite perks6%
Overall Feature Importance
Leisure Travelers
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Recommendation 4: Launch "Free Night" Loyalty Program
Elite Perks
Elite Check-in Benefits
Elite Amenities
Elite Room Upgrades
Program Expiration
# of Stays to Earn Free Night
# of Stays to Reach Elite
• A program designed for less frequent hotel travelers
• Program details:o 5 nights earns you a free nighto No expirationo No other benefits
• Simple, attractive program
• Solution for 60% of the guests
• Real, attainable benefits for the consumer
• Low cost for Best Western
• Industry-first program
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Recommendation 5: Launch " Best VIP " Loyalty Program
Business Travelers
Business Travelers
Business Travelers
Type of hotels stayed at during the past year
Business Travelers
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Recommendation 5: Launch “ Best VIP” Loyalty Program
How?
• Select the attributes with the highest value for the consumers
• Find attributes that provide an opportunity to satistfy the consumer more with less
• Combine attributes and value to determine the best loyalty program for this target market
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“Best VIP "Loyalty program
Best VIP Loyalty Program
# of nights required to earn a free night 10 0.24
Program expiration date 3 years 0.25
# of annual nights to reach “elite status” 25 0.27
Complimentary amenity free internet 0.2
“Elite status” room upgrades upon availability 0.2
“Elite status” benefit complimentary drink 0.09
"Elite status" check in/out benefits 0.08
Total TPU ( Customer happiness) 1.33
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Other elite loyalty programs
Hilton
Expiration time 1 year 0.07 # of nights required to earn a free night 5 0.03 # of annual nights to reach “elite status” 50 0.12
Late check-out 0.08Express check-out, and check-in 0
“Elite status” benefit complimentary drinks at minibar 0.09Executive Floor Lounge Access 0.04
Free internet 0.2Space-available upgrade to a preferred room 0.2
Total TPU ( Customer happiness) 0.83
Marriott
Expiration time 1 year 0.07 # of nights required to earn a free night 5 0.03 # of annual nights to reach “elite status” 75 0.07
Late check-out 0.08Express check-out, and check-in 0
“Elite status” benefit complimentary drinks at minibar
0.09
Executive Floor Lounge Access 0.04
Free internet 0.2Space-available upgrade to a preferred room 0.2
complimentary amenity welcome bag 0.07Total TPU ( Customer happiness) 0.85
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Project Recap
• Family-friendly = Opposite of Milennials’ Preference
• Improving Perceptions of Cleanliness
• Raise Room Rates. Milennial Stereotype: “Inexpensive = bad”
• What New Leisure Travelers Want
• What New Business Travelers Desire
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Appendix
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Business Travelers Free Amenities
Great for Families
Reasonably Priced
Brand I Prefer
Feeling of HomeFor Business TravelersFriendly StaffCleanRewards Loyal
Customers
Sheraton
Comfort Inn
Best Western
Holiday InnHampton Inn
Marriott Hilton
Hyatt
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Leisure Travelers Free Amenities
Great for Families
Reasonably Priced
Brand I Prefer
Feeling of Home
For Business Travelers
Friendly Staff
Clean
Rewards Loyal Customers
SheratonComfort Inn
Best Western
Holiday Inn
Hampton Inn Marriott
Hilton
Hyatt
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CA Business travelers
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CA Business travelers
Regression Statistics
Multiple R 0.40383014 R Square 0.16307878 Adjusted R Square 0.14799912 Standard Error 1.41869981 Observations 792 ANOVA
df SS MS F Significance F Regression 14 304.729798 21.76641 10.814486 9.43942E-23 Residual 777 1563.875 2.012709 Total 791 1868.6048
CoefficientsStandard
Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 3.01 0.19524213 15.40434 6.371E-47 2.624311202 3.3908403 2.624311202 3.390840313x1 0.92 0.12348197 7.484837 1.944E-13 0.681844636 1.1666402 0.681844636 1.166640212x2 0.41 0.12348197 3.312961 0.0009659 0.166693121 0.6514887 0.166693121 0.651488697x3 0.66 0.12348197 5.337548 1.237E-07 0.416693121 0.9014887 0.416693121 0.901488697x4 0.38 0.12348197 3.067556 0.0022331 0.136390091 0.6211857 0.136390091 0.621185667x5 0.92 0.12348197 7.454162 2.416E-13 0.678056757 1.1628523 0.678056757 1.162852334x6 0.28 0.12348197 2.239316 0.0254176 0.034117363 0.5189129 0.034117363 0.51891294x7 0.17 0.12348197 1.349725 0.1774974 -0.075731122 0.4090645 -0.075731122 0.409064455x8 0.06 0.12348197 0.521485 0.6021779 -0.178003849 0.3067917 -0.178003849 0.306791728x9 0.07 0.12348197 0.582836 0.560173 -0.170428091 0.3143675 -0.170428091 0.314367485x10 -0.10 0.12348197 -0.82824 0.4077888 -0.344670515 0.1401251 -0.344670515 0.140125061x11 0.19 0.12348197 1.533778 0.1254913 -0.053003849 0.4317917 -0.053003849 0.431791728x12 0.22 0.12348197 1.809858 0.070704 -0.01891294 0.4658826 -0.01891294 0.465882637x13 -0.01 0.12348197 -0.06135 0.9510954 -0.249973546 0.234822 -0.249973546 0.234822031x14 -0.06 0.12348197 -0.46013 0.6455492 -0.29921597 0.1855796 -0.29921597 0.185579606
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CA Leisure travelers
intercept. # of nights required to earn a free night 5# of nights required to earn a free night 10
. # of nights required to earn a free night 15 # of annual stays to reach “elite status” 25 # of annual stays to reach “elite status” 50 # of annual stays to reach “elite status” 75
Program expiration date never Program expiration date never 3 years Program expiration date never 1 year
“Elite status” room upgrades free suite upgrade upon avalability“Elite status” room upgrades free upgrade to best available non-suite room
“Elite status” room upgrades none complimentary amenity free internet
complimentary amenity free breakfast complimentary amenity welcome bag
"Elite status" check in/out benefits express check in"Elite status" check in/out benefits none
"Elite status" check in/out benefits 8am check in and 4 pm check out“Elite status” benefit complimentary drinks at minibar
“Elite status” benefit Free airport shuttle service “Elite status” benefit access to executive lounge
0.00 0.20 0.40 0.60 0.80 1.00 1.20
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CA Leisure travelersRegression Statistics
Multiple R 0.40383014 R Square 0.16307878 Adjusted R Square 0.14799912 Standard Error 1.41869981 Observations 792 ANOVA
df SS MS F Significance F Regression 14 304.729798 21.76641 10.814486 9.43942E-23 Residual 777 1563.875 2.012709 Total 791 1868.6048
CoefficientsStandard
Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 3.01 0.19524213 15.40434 6.371E-47 2.624311202 3.3908403 2.624311202 3.390840313x1 0.92 0.12348197 7.484837 1.944E-13 0.681844636 1.1666402 0.681844636 1.166640212x2 0.41 0.12348197 3.312961 0.0009659 0.166693121 0.6514887 0.166693121 0.651488697x3 0.66 0.12348197 5.337548 1.237E-07 0.416693121 0.9014887 0.416693121 0.901488697x4 0.38 0.12348197 3.067556 0.0022331 0.136390091 0.6211857 0.136390091 0.621185667x5 0.92 0.12348197 7.454162 2.416E-13 0.678056757 1.1628523 0.678056757 1.162852334x6 0.28 0.12348197 2.239316 0.0254176 0.034117363 0.5189129 0.034117363 0.51891294x7 0.17 0.12348197 1.349725 0.1774974 -0.075731122 0.4090645 -0.075731122 0.409064455x8 0.06 0.12348197 0.521485 0.6021779 -0.178003849 0.3067917 -0.178003849 0.306791728x9 0.07 0.12348197 0.582836 0.560173 -0.170428091 0.3143675 -0.170428091 0.314367485x10 -0.10 0.12348197 -0.82824 0.4077888 -0.344670515 0.1401251 -0.344670515 0.140125061x11 0.19 0.12348197 1.533778 0.1254913 -0.053003849 0.4317917 -0.053003849 0.431791728x12 0.22 0.12348197 1.809858 0.070704 -0.01891294 0.4658826 -0.01891294 0.465882637x13 -0.01 0.12348197 -0.06135 0.9510954 -0.249973546 0.234822 -0.249973546 0.234822031x14 -0.06 0.12348197 -0.46013 0.6455492 -0.29921597 0.1855796 -0.29921597 0.185579606
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Do you stay in hotels at least 2 nights per year for business travel?
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Do you have a college (4 year undergraduate) degree?
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Are you between the ages of 22 to 35?
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During the past year, how many nights have you stayed at a hotel?
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Which of the following hotels have you stayed at during the past year? (Select all that apply)
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Which of the following social media platforms do you use? (Select all that apply)
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Which of the following travel websites have you visited in the past year? (Select all that apply)
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Which of the following sources do you read for entertainment or news? (Select all that apply)
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For which of the following reasons do you use your mobile phone device? (Select all that apply)
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Which of the following television stations do you watch daily? (Select all that apply)
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Which of the following hotel loyalty programs do you currently belong to? (Select all that apply)
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Which of the following devices do you own? (Select all that apply)
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Which of the following TV programs do you watch regularly? (Select all that apply)
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Please indicate your age range.
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Please indicate your gender.
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Please indicate your annual household income. (Optional to answer)
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Please indicate your ethnicity.
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Please indicate your marital status.
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Including yourself, please indicate how many people are in your household.
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Please indicate how many children you have.