Adam Weiss, Allie Bugajski, Jenna Massey, Marsha Pendilton, Sibyl Munoz

SITUATION -analysis-

Hyatt- Key Statistics

• Annual revenue- 2014: $4.42 billion, 2013: $4.18 billion• Compound annual growth rate- 2013-2014 5.7% increase in revenue• Profit/loss- $344 million in profit 2014• Number of employees- 43,167 in the US. 97,000 in 50 countries• Properties- 397 U.S. properties, 587 properties in 50 coun tries worldwide

Hyatt - Brand Positioning

2015 American Customer Satisfaction Index

• Hotel category had a rare t r - ti or first pl - Hilton, Hyatt and Marriott• Suggests an in r i l omp titi ot l in str p rti l rl mon ll-s r i ins • They pro i simil r pro ts n s r i s t simil r pri s

Travel Advisors- Key Statistics

• Approximately 65,000 travel agents in the U.S.- about 0.04% of the US workforce• American Society of Travel Agents - approximately 7,000 members• 2003 to 2014- the number of independent agents working primarily from their homes rose 434% -2013, they eclipse the number of U.S. retail location agents• Less than 10% of industry sales come from independent agents, mostly home-based, measured in dollars (estimated)• Average agent (full and part-time) income in 2013- $37,200

• 30% of Hyatt’s Room reservations are booked through travel advisors

Travel Industry Trends

According to ASTA

• Travel has increased 7% • 2.2% increase in airfare over the upcoming year• The leisure travel industry has become price driven • Travel decisions are now based on cost and convenience • More people are booking closer to their travel dates • People are short on personal time- increases the value of working with a travel advisor

Hotel Industry Trends

• Guests can expect to pay 5 percent more this year

• Room rates are expected to rise by an average 5.3% this year, compared with 4.5% last year

• The Dow Jones U.S. Hotels Index has risen 5.5% so far this year, out performing the S&P 500 index, which has risen 2.7%

Travel Advisor Industry Trends

Notes: • 30% increase over the span of 12 years in hotel booking category -Corporate agencies- 15% of their total sales coming from hotel bookings -Independent agents- 8% of their total sales coming from hotel bookings

Travel Advisor Industry Trends Continued

Payment Structure

• Stopped getting 10% commission from US airline carriers in March 2002• Most agents charge fees- Since 1998, the number of agencies charging service fees on one or more product line has increased from 64% to more than 91% in 2009.• Most common fee charged- $36 service fee for airline ticket procurment (avg fee)• Other service charges- trip research, Amtrak, car rental and hotel-only reservations

• Travel advisors expect a record year in 2015 • 41% of travelers are to the open to idea of using travel advisors• 1 in 5 travelers used the services of a travel advisor in 2014, up from 1 in 8 in 2013

Travel Advisor Industry Trends Continued

Clients want a faster way to connect with their travel advisors.

Travel Advisor Industry Trends Continued

SWOT Analysis

Strengths• Offers top tier travel advisor loyalty program

• Offers a variety of hotel experiences for advisors and their clients

• Rewards are redeemable throughout all Hyatt brands

Weaknesses• Hyatt is not the preferred brand travel advisors book for clients

• Few locations in comparison to other brands

• Multiple brands cause confusion among travel agents who are unclear about the differentiation

Opportunities• 65,000 travel agents in the US

• Advisors drive 1/3 of US travel market

• Travel advisors indicate that their clientele will travel 7% more in 2015 • 46% of travel advisors believe booking levels will increase

Threats• Brands including Hilton, Marriott and Starwood are expanding to include more locations and have competitive advisor packages.

• Third-party sites are becoming more popular, taking market share away from travel advisors

Competitive Overview

Connection Across All Brands

• Consolidated commission across all 9 of Starwood’s brands• “Elite Status” achieved for every 20 nights an advisor books across any Starwood brand

Heavy Discounts and Cheap Rates

• Travel advisors’ preferred brand • “FamTastic” program requires advisors to be a part of the program in order to receive booking discounts• Client bookings starting at $49 per night

Heavy Discounts and Debit Card

• Advisors receive 50% off the regular price of their personal travel across all Hilton brands• Point-based rewards system which Hilton transfers to a pre-paid Visa debit card for advisors to freely use

Travel Advisor Insights

LIKES

• Easy to use travel rewards programs

• Pepaid debit card Hilton

• Discounted rates and free nights Hyatt, Hilton, Marriott

• Opportunities to visit the hotels advisors recommending to clients

• Working partnership with hotel brand representatives

• 24/7 accessibility to brand representatives Marriott

• Quality customer service Hyatt, Marriott

DISLIKES

• oo in po r in n s t mo nt o tt ntion isors r i rom r n r pr s nt ti s

• st lis in tr st n r l tions ips it tt is r or isors o r n t top s ll rs

• isor p r s rr m n r stri tions Hyatt, Marriott

Client/Traveler Insights

• Advisors get great deals and know best activities at top destinations

• Clients enjoy a full-experience vacation

• Clients utilize advisors for their ability to create an experience, not just a vacation

• Advisors provide vacation “insurance” in case anything goes wrong during their clients’ trip

• Advisors listen to the needs of clients and create an outstanding experience within their clients price range

Overall Insight

tr l isors n tt o r mor n fits n p r s t n t ir omp titors t o l mor li to oo it tt

MEDIA -Strategy-

The Product

Hyatt’s New Advisor Plan

• Rewards online- All in one place and easier to keep track of • 24/7 brand reps for all agents- Each geographic region will have 3-5 brand liaisons in order to build and maintain advisor relationships• Booking discounts -10% commission on room rate -50% off advisor’s personal travel

The Product Continued

Hyatt’s New Advisor Plan

• Visit hotels -Offer advisors highly discounted rates of 65% off on Hyatt hotel accommodations twice a year -Based on slow travel periods and hosted by hotels that have low bookings at that time -“April’s featured getaway: Hyatt Andaz….” -“October’s featured getaway: Park Hyatt ____....”

Target Audience

• There are roughly 65,000 travel advisers currently working in the US industry, with approximately 10,000 corporate travel advisor agencies

• Target the established agencies, as research shows that the independent agents only account for 10% of industry revenue

Target Audience Profile

Julie• 50 years young• Income- $39,000 a year• Works at one of the top travel agencies in California. Retail location with a manager and staff of seven• Handles international and domestic business clients as well as liesure travel clients• She only has two weeks off a year• She mostly travels domestically, but has been out of the country twice• Has her clients’ trust and takes her time learning about their needs• Prefers speaking directly to brand reps so she can address her clients’ needs

Objectives

The goal is to reach 75% of the travel advisor population in the United States with an average frequency of 4.0 exposures per consumer, by the end of our campaign (October 2016).

• Ideally this will lead to an increase in guest advised bookings, which in turn should l to in r s profits

• The secondary goal is to become the leader for agent bookings among the top three hotel chains

Objectives Continued

• Marketing Mix- -direct mail marketing -print advertisements in travel advisor magazines -digital advertising on travel advisor magazine websites -social media posts on Facebook - promoted searches through Google

• Niche market provides a reach to 75% of the target audience with these media outlets

• The plan is to reach this amount of the audience at the end of 12 months occurring over the peak travel periods

Objectives Continued

“Day in the Life” - How our target audience will be exposed to our advertisements

• November- direct mail information brochures -Print and digital ads for our adviser event in February will be launched at this time as well• February- Our hybrid in person and virtual event will be held • April- Special travel days, with heavily discounted room rates for agents• May- another round of direct mailings to travel advisors, just before summer travel bookings• Throughout the Campaign- advertising in print editions of Travel Agent Magazine and Luxury Travel Advisor, along with digital advertisements on their companion websites, and the American Society of Travel Advisors website• Social Media efforts- Facebook promoted ads, promoted search engine ads, and LinkdedIn promotional ads as well

Geographic CoverageNational Coverage with heavy emphasis in:

• California (8,770)• Florida (7,020)• New York (4,970)• Texas (4,570)• Illinois (4,300)

Seasonal Factors

Peak travel times = busy seasons for travel agents ie: Holidays, Summer, Spring Break

Scheduling

• Pulsing for twelve months -Pulse leading into peak travel periods in the spring to summer for vacations then early fall to winter for seasonal travel

Scheduling Continued

Launch Date - November 1, 2015• Peak Travel times - Before Thanksgiving and Christmas, as well as June-August

• Low pulsing January 1, 2016 to March 31, 2016• High pulsing April 1,2016 - June 14, 2016• Low pulsing June 15, 2016 - July 15, 2016• High Pulsing July 15, 2016 - August 30, 2016• Low Pulsing September 1, 2016 - October 31, 2016 for the next travel period

Media Mix

Focus Series with Questex Travel Group • 50,000 subscribers with 100,000 total circulation (including duplication)

Print Ads• Travel Agent Magazine• Luxury Travel Advisor -Full page with advertorial

Media Mix Continued

Digital Advertising • TravelAgentCentral.com (Focus Series)• LuxuryTravelAdvisor.com (Focus Series) -Side advertisements & Banner ads• Travel Agent Facebook Page (Focus Series)• American Society of Travel Agents -ASTA.org reaches travel agents, domestic and international suppliers as well as individuals seeking to enter the travel agent profession. • Hyatt Travel Advisor Facebook Page• Hyatt Travel Advisor Website • Google Search Promotions• LinkedIn Direct Messaging to travel advisors

Media Mix Continued

Direct Mail• Sending out direct mail advertisements to travel advisor agencies throughout the U.S. • Inform travel advisors about Hyatt’s new travel rewards program as well as the n fits t r i omin p rt o t is r r s pro r m

Media Mix Flow Chart

ACTIONS & -Deliverables-

Events

Hybrid Event

• $300,000 Remainder of budget• Invitethe top 10% of the 10,000 corporate agencies. Roughly 1,000 people • February 19-21, 2016 Hyatt Regencies in Huntington Beach, CA.

Events Continued

In Person Event Details

• Friday: Cocktail Hour from 6:00pm- 8:00pm at the Lighthouse Courtyard• Saturday: Breakfast buffet with Opening Remarks from 10:00am - 11:30am in the Grand Ballroom• Event begins at 1:00pm

Events Continued

Online Event Details

• Onstream Media’s MarketPlace365 allows for different “rooms” to be created in the virtual event, which will be used to create different spaces for each of Hyatt’s brand

Events Continued

Courtesy Thank You

• The gift box includes a Hyatt Rewards Pass

• i t rtifi t to n tt r n sp omp ni t o o t ils t t hotel bar (to be redeemed at any Hyatt)

PR

• Press releases explaining the new plan, events, and travel days will be released to: - TravelAgentCentral.com -LuxuryTravelAdvisor.com -Asta.org -Hyatt Travel Advisor Facebook Page -Hyatt Travel Advisor website

Digital Ads

Ads on Facebook and LinkedIn, as well as promoted Google searches

Digital Ads Continued

Print Ads

They say good advice is hard to come by

And yours is better than most. It’s why people trust you to help them make memories, and it’s why we listened when you told us what you needed. Whether you want to add a personal touch to a client’s room, or simply ask a brand liaison a question, Hyatt has you covered.

For more information about the new advisor plan, or to make a reservation, visit HyattTravelAgents.com

Have a seat,stay a while

Everyone needs a break sometimes. And if you take one with us, you’ll understand why your clients always feel more than welcome here. Our commitment to showing you all we have to offer has been taken to new heights. So come, join us. The water’s fin

For more information, or to make a reservation, visit HyattTravelAgents.com

The trademark HYATT and related marks are trademarks of Hyatt International Corporation. (C) 2014. Hyatt International Corporation. All rights reserved

Print Ads Continued

They say experience is the best teacher

From the beaches in Maui to Emerald Bay in Lake Tahoe, Hyatt locations vary as mcuh s o r li nts o n t tt r to onfi ntl r omm n tt t n to p ri n it yourself ? No matter where you choose to visit, our commitment to make you feel more than welcome will never change.

For more information, or to make a reservation, visit HyattTravelAgents.com

The trademark HYATT and related marks are trademarks of Hyatt International Corporation. (C) 2014. Hyatt International Corporation. All rights reserved

BUDGET

Budget

Media Budget Allocation

• Direct Mail $50,000• Focus Series (Print and Digital) $129,000• Digital (Website Banner Ads) $259,950• LinkedIn Promotion $98,500• Facebook Promotion $51,000• Search Engine Promotion $109,550

Budget Continued

Budget Continued

Media: $700,000 • Focus Series -$129,000 net total for two advertisements in print and digital ads on magazine websites

• Digital -American Society of Travel Advisors 120,000 unique site visitors every month -Homepage Banner 12 months - $10,500 per ad -Internal Pages Banner 12 months - $16,500 per ad -Facebook Promotion $1.70 cost per click -3 months leading up to event 25,000 clicks - $51,000 -Google Search Promotion $3.13 cost per click -12 months full campaign 35,000 clicks - $109,550

Media: $700,000 (continued)

• Digital (continued) -LinkedIn Promotion - $100,500 -Direct Mail - $50,000 Materials, mailing, and labor -Redesign Website - $2,000

• Special Events -Hybrid Event January 2016 - $300,000 $150,000 Event Spaces (tables, chairs, posters, banners) plus budget for virtual events $50,000 Gift Bags $50,000 Food/Cocktail -Early Bird Special Package (Brand Promotional Materials) Travel Advisor Travel Days - February 2016

Budget Continued

EVALUATION

• Survey 5% of travel agents in the U.S. to conduct post-campaign evaluation

• We will use questions from our primary research to determine if travel advisors are now aware of Hyatt’s new travel advisor program

Works Cited

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