phil andreopoulos vice president global sales europe marriott international aipc conference...
TRANSCRIPT
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Phil AndreopoulosVice President Global Sales EuropeMarriott International
AIPC conferenceAmsterdam, Tuesday July 3, 2012
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<< insert video >>
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• Part One: Impact of the financial crisis on the global lodging industry
• Part Two: Overview of the global lodging industry today
• Part Three: Hotel pricing philosophies
Agenda
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R.I.P
The Good
Times?
Part One: How did the global lodging industry fare during the financial crisis?
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RevPAR is the hotel industry’s global standard measurement tool.
Revenue per Available Room (RevPAR) is the total revenue generated through
bedroom sales, over a given time period, divided by the total number of bedrooms
available over the same period.
Part One: How did the global lodging industry fare during the financial crisis?
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Who are the main players in today’s global market?
Part Two: Overview of the global hotel industry
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Source: Otus 2009
1.9m
3.8m
Part Two: Overview of the global hotel industry
While Europe is the largest lodging market in the world, it is highly fragmented
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Source: Smith Travel Research
Part Two: Overview of the global hotel industry
Current State
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Source: Smith Travel Research
Part Two: Overview of the global hotel industry
Pipeline
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Source: Smith Travel Research
Part Two: Overview of the global hotel industry
Pipeline
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With so much new supply and growing demand,
how do hotels maximise RevPAR?
Part Three: Pricing philosophies
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Group Individual
Part Three: Pricing philosophies
Getting the right balance between Group and Individual travellers
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Group Individual
• Often contracts far in advance
• Guaranteed revenue (depending on contract
terms) or can ‘wash out’ (if terms not robust
enough)
• Helps forecasting / rate setting
• Often has Food and Beverage revenue attached
• Provides base business / confidence
• Can create pockets of low occupancy pre and post
• Ability to cancel on day of arrival with no charge
• Established and predictable patterns of demand
• Seasonal – established corporate / leisure
seasons
• Corporate preferred hotel programs
• Wholesaler deals for Leisure segments
• Ability of the hotel to manage demand
Part Three: Pricing philosophies
Getting the right balance between Group and Individual travellers.
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Direct
Intermediary
Part Three: Pricing philosophies
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s m t w t f s s m t w t f s s m t w t f s s m t w t f s s m t w t f s s mJanuary
FebruaryMarch
AprilMayJuneJuly
AugustSeptember
OctoberNovemberDecember
Single event Multiple event
Fira de Barcelona – 2012 Events Calendar
Source: Fira de Barcelona Website
Part Three: Pricing philosophies
Barcelona Case Study
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Source: Barcelona Tourisme
Part Three: Pricing philosophies
Barcelona Case Study
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Barcelona rate check during October:
Source: hilton.com
Arrival at the Barcelona Hilton:
Tuesday October 2, 1 night: 191 Euros
Tuesday October 9, 1 night: 341 Euros
Tuesday October 16, 1 night: 191 Euros
Tuesday October 23, 1 night: 216 Euros
Tuesday October 30, 1 night: 191 Euros
Part Three: Pricing philosophies
Barcelona Case Study
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Maximising the supply versus demand curve in Barcelona:
- Corporate accounts, lone business travellers
- Group demand from exhibitions
- Group demand from smaller meetings
- The leisure traveller
- Changing / seasonal airlift
Part Three: Pricing philosophies
Barcelona Case Study
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Thank you and questions…?