hyatt hotels: a vision for e-commerce and online travel innovation

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Bill Bernahl Vice President E-Commerce Hyatt Hotels & Resorts. Ignite 2010

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Consumers and enterprises want online channels to be highly efficient but few companies have a vision and plan to reach those goals. Hyatt understands how customer experience across all channels builds brand preference and ultimately, revenue. Join to see what worked well for Hyatt and what would change in a roll out. Bill Bernahl, Vice President, E-Commerce, Hyatt

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Page 1: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Bill Bernahl Vice President E-Commerce Hyatt Hotels & Resorts. Ignite 2010

Page 2: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Any opinions expressed during this presentation are mine and not necessarily those of Hyatt

Forward-Looking Statements Statements in this presentation, which are not historical facts, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies, financial performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, the depth and duration of the current economic downturn; levels of spending in the business, travel and leisure industries as well as consumer confidence; declines in occupancy and average daily rate; hostilities, including future terrorist attacks, or fear of hostilities that affect travel; travel-related accidents; changes in the tastes and preferences of our customers; relationships with associates and labor unions and changes in labor law; the financial condition of, and our relationships with, third-party property owners, franchisees and hospitality venture partners; risk associated with potential acquisitions and dispositions and the introduction of new brand concepts; changes in the competitive environment in our industry and the markets where we operate; outcomes of legal proceedings; changes in federal, state, local or foreign tax law; fluctuations in currency exchange rates; general volatility of the capital markets and our ability to access the capital markets. A more complete description of these risks and uncertainties can be found in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this presentation. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

Page 3: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Play “Hyatt You’re More than Welcome” 1:00

http://www.youtube.com/watch?v=HoeAwOzR1f4

Page 4: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

445 Hotels / Resorts

>80,000 Associates

45 Countries

Park Hyatt

Andaz

Hyatt Regency

Hyatt

Hyatt Place

Hyatt Summerfield Suites

Hyatt Vacation Clubs

Page 5: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

>600 Sites 10 Languages Hotels

Brands

Restaurants

Spas

Golf

Destinations

Regions

Renovation

Press Room

Investor Relations

Blog

Page 6: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

A Property Site Hundreds of pages

Page 7: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Hyatt Editor – Homegrown Content Manager >400 hotels, 10 Languages

Page 8: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Infrastructure

Hosted at AT&T

2 Datacenters

Virtualized Linux running on Intel processors

Apache, Jboss, ATG, Endeca, Oracle, Day

Page 9: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

E-Commerce Vision

Best for Customers   Terms

– Lowest prices, guaranteed – No booking fees – Loyalty benefits – Policies (refunds, changes, …)

 Content / features  Experience / Convenience

Best for Hyatt  Most efficient channel

 Increased revenue generation  Increased customer engagement through personalization

 Experience supports building brand preference

Establish Hyatt’s global online properties as the best places to plan, purchase and manage hospitality and travel services with Hyatt

Page 10: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Online Travel US / Europe Maturing, Developing World Accelerating

 US total travel market >$280b

More than 50% of all bookings now booked online

 Leisure and Unmanaged Business Travel Online

US >$90b, 5% growth

Europe >$70b, 7% growth

ASPAC >$40b, 20-25% growth

Page 11: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

EVERYONE’S ONLINE EVERYONE’S MOBILE�

Page 12: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

“Cyberspace, not so long ago, was a specific elsewhere, one we visited periodically, peering into it from the familiar physical world. Now cyberspace has everted. Turned itself inside out. Colonized the physical.” - William Gibson, NYT 8/31/2010

Page 13: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Strong Internet Growth Continues

  2,000,000,000 Internet Users

  29% of the population is online

  Penetration by country US 77% Europe 58% Asia 21% Africa 11%

Page 14: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Mobile Internet Growth Even More Astounding

  Mobile phones in use = 60% of the world population

  More than 780mm mobile phones in China 1/3 internet devices

  Mobile internet growing faster than desktop internet

  3G+ population penetration projected to exceed 45% by 2015

Page 15: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

THE SITE IS THE NETWORK�

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RATE OF CHANGE ACCELERATING�

Page 23: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Days to Reach 1,000,000 Units Sold

360 74 28 3

Page 24: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Cummulative iPhone Apps Downloads Projected to Exceed Song Downloads by End of 2010

Page 25: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Play “Hyatt Apple iPad Video” 2:49

http://www.youtube.com/watch?v=gmNSACEntSs

Page 26: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

CONTENT MANAGEMENT�

Page 27: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

2010 Goal: Acquire and Deploy Web Content Management System

Key criteria  Flexible content support  Strong international support  Configurable workflow  Open content access  Easy to learn / use  Innovative company

Approach  Roll out marketing microsites in 2010  Roll out a brand site in 2010  Address brand / property sites in 2011

Page 28: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Web Content Management System Selection Process Kickoff to Contract: 12 weeks!

  Engaged SapientNitro Content Management Practice   Reviewed Research / Conducted Market Scan   Developed Short List   Vendor Presentations / Scorecards   2 Day onsite POCs   Reference / Analyst Checks   Final Selection

Page 29: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Initial Project: Digital Press Room

 5 Week “quick strike”

 Simple single site / workflow model

 Moved existing site with limited changes

 Hosted in Amazon cloud

 Joint Day / SapientNitro effort

Page 30: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Corporate Blog

 New corporate blog

 Basic site  Reverse

publication  Hosted in

Cloud  SapientNitro

Page 31: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Hyatt Place Property Internet Pages

 Replace and enhance existing iGoogle capability

 >100 single page sites

 Widgets  Hosted in

Amazon cloud  SapientNitro/

Day

Page 32: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Premier Restaurant Templates

 Template for multi-outlet restaurants

 Property / Corporate workflow

 Hosted in Amazon cloud

 HeadStand Media

Page 33: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Hyatt Vacation Club Redesign

 Brand site build out

 Substantial content but no significant dynamic content

 Significant multimedia elements

 Hosted in Cloud

 SapientNitro

Page 34: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Day CQ5 – Coming Up

2010   Destination pages   Custom landing pages   Content source for property specific mobile content

2011   Migrate Brand sites   Integration with ATG for dynamic content   Move hosting from cloud to AT&T   Migrate existing custom sites (Restaurants, Catering, …)

Page 35: Hyatt Hotels: A Vision for E-Commerce and Online Travel Innovation

Lessons Learned / Observations

  The “Start Simple / Move Fast” approach worked for us Allowed Hyatt and SapientNitro team to learn system progressively Projects delivered on schedule!

  Leveraging the Amazon Cloud a major success   Get the templates right early in the project!   Would have accelerated staff training   Weigh “Out of the Box” components against more customized solutions. Custom rather than OOTB components may provide more flexibility and scalability longer term.