Download - Starwood Final Preso TeamCTE
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Kellogg Business Design
Competition 2011: StarwoodHotels
Team:Calvin TamTyler Evans
Ethan Ambabo
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%ofrevenue
from hotels85.7%
64.7%
Occupancy Rate
Starwood is luxury hotels
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The Problem
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Starwood needs to find ways to increaseoccupancy without reducing the price itcharges per room.
How?
Find the people whotravel most frequently.
Find the peoplewhose loyalty canbe captured.
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What is business travel?
Business Travel
Who are the key stakeholders?Who is the customer?Who is the consumer?What are their real needs?
Hotels
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Whenever I arrive in a new city, Ifeel completely lost. I dont knowwhere to go or how to getanywhere.
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When I leave the office, I usuallyjust stay in my hotel room. I feellonely going out alone.
I want to be comfortable, buthaving a life on travel is difficult.The wrong charges always end upon my expense report. I dont wantmy boss seeing that.
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I want to focus on getting businessdone. Its always planningsomething, getting directions.Calling a cab. Help with this would
make me more productive.
I never bother asking the
conciergethey have no clue what Ilike. Id rather just ask a friend.
Yet, at a good hotel...
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When Im inside the hotel. Im taken care of.
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The Business Travel Routine
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Business travelerssee their journeybeginning in theirhome city, not thehotel.
They want help.They needreservations; acab. Theyre on aschedule.
They want to be wellequipped to dobusiness. Not to haveto worry aboutexpense reports.
When they arrive, theyfeel insecure. Businesstravel is lonely. Theywant to unwind. This isnot home.
?
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Corporate Travel Planners Perspective
We need to keep costs low.
There needs to be better ways totrack expenses. I cant benchmark.
I cant find ways to encourageemployees to come in underbudget.
Consolidating receipts, verifying-this process is too complex.
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$Businesses need to
keep costs low,benchmark, and findthe best deals in astreamlined way.
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What is business travel?
Hotels
Business Travel
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This is a classic two-sided market.
?
$
Business Traveler
Travel Planner
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This solution is not unique to the
business travel industry.
Analogies:
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Starwood needs to transform itself
from a simple hotel, into an integratedbusiness travel platform
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The Starwood Business Travel Platform consists
of 5 new digital experiences that resolve theconflicts in this 2-sided market.
1. Community Concierge
2. OneCard Solution
3. Unified Expense Report
4.Social
Connection
5. Seamless Connectivity
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Its not about spending the money to extendthe hotels services all throughout the city,
but about saving money by pulling all of the
citys services into the hotel.
Starwood Experience
StarwoodHotel
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The New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood Platform
BusinessTravelers Employers
HotelRestaurants EntertainmentTransportation
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The New Starwood Platform
BusinessTravelers
Receive:
ConsistencyAmenitiesTransparency
Provide:
Consumer InsightLoyalty
Provide:
Loyalty (Preferred providerstatus)
EmployersReceive:
Consolidated HostingSpending Controls
Provide:
Access FeesTo Starwood
LocalBusinesses
Receive:
Customer TrafficAdvertising channelsConsumer insights
StarwoodPlatform
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1) Community Concierge
SW
My Starwood
My Itinerary >
Concierge >
Expense Manager >
Transportation >
Help Desk >
ExpenseM
anagerallows for easytracking of per diem,business expenses,and budget.
A friend-of-a-friend
relationship between theconsumer and localbusinesses, mediated byStarwood.
Book transportation, getrecommendations basedon your tastes, getdirections. Ask a personfor help.
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2) OneCard solution
Room card + Charge card + Loyalty card + Discount card
Room Card Charge CardLoyaltyCard
DiscountCard
$
SPG ONE CARD
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Travelers and planners can seereports in real time. Feedbacksystem helps benchmark,encourage saving.
12/18 Starbucks
12/18 Taxi
12/18 Il Sole
12/19 Walgreens
12/19 Taxi
12/19 Rogers Deli
Starwood Web Expense Report for:
Joe Smith
$4.08
$25.00
$198.08
$15.01
$38.00
$10.59
B
P
B
B
B
P
Per Diem Spend: 135.25 / 150.00
Client Development: 753.08 / 500.00
$Receipts are no longer anissue. Limits are clear. Datacollection drivesrecommendation engine.
Your saver score: 500 points
3) Unified Expense Report
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?
4) Social Connection
KaleidESCAPEby StarwoodThe Mix is Always Changing!
KaleidESCAPE is aspontaneous, zero-
commitment event club for all currentguests. It organizes simple activitiesbased on a critical-mass ofparticipation. If the activity sounds fun,
jump in.
Get activity alerts
on your smartphone Edit Profile PreferencesLogin:
Group of10 or
more meeting at
REVOG
RILL at7:30 pm.Live music starts at9:30 pm.
Interested No Thanks
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A wireless network card that gives peopleconstant access to the internet, and the hotelsservices, wherever they are in the city.
5) Seamless Connectivity
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Push B2B strategyto target customers
Pull strategy tobring in consumers.
Concept messaging
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THIS IS YOUR HOTE
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Impact
Increase in occupancy: 1-3%
Expected increase in revenue: $250-$750
million / year (5% - 16% increase)
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Additional Opportunities
Gain-sharing of savings created forbusinessesAdvertising and promotional tie-ins on
Community Concierge