REVENUE MANAGEMENT: Setting your pricing foundation for the 2016 RFP process

CHRIS WILROY, Vice President, Revenue Management Support Services

IVAN CALIL, Director, Revenue Management

BILL STACHLER, Director, Revenue Management

AGENDA

1 Performance review and forecast

2 Tools and resources

3 Game plan

PERFORMANCE REVIEW AND FORECASTWhere have we been and where are we going?

1

2015: U.S. FORECAST VS. RESULTS

FORECAST

Upper Upscale Upscale

ADR +6.6% +7.3%

RevPAR +8.0% +8.8%

Source: PKF

500 accounts solicited

1,533 rounds of rebids

30% below walk

RESULTS

AUDIENCE POLLING

During the 2015 RFP bidding process for all of Hilton Worldwide, what was the difference in rate change (year-over-year percentage) from the initial round of bids to the final round of rebids?

a) - 1.7%b) - 2.2%c) - 2.7% d) - 3.2%

a) - 1.7%b) - 2.2%c) - 2.7% d) - 3.2%

RFP RATE CHANGE

DoubleTree Embassy Hilton0%

1%

2%

3%

4%

5%

6%

7%

8%

7.0%7.4%

6.9%

4.4%5.1%

4.1%

Initial Final

-2.7%

-2.3%

-2.8%

WHAT’S AHEAD IN 2016?

2016 FORECAST

Upper Upscale Upscale

ADR +6.9% +7.8%

RevPAR +7.3% +7.5%

Source: PKF

2011 2012 2013 2014 2015 2016 2017

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

OCC Ac-tualOCC Fu-tureADR Ac-tual

TOOLS AND RESOURCESHow will we get there?

2

WHY CNR GROWTH IS CRITICAL

TOOLS FOR DETERMINING MIX

Have a plan

Know your marketAgency 360

Mix of Sales

STR Report

NEGOTIATED ACCOUNT SCORECARD

Review your hotel’s: Peak night production

DOW production

Sold out night production

YOY occupancy / rate change

GAME PLANHow can you set your hotel up for success?

3

Ownership view Email alerts

Historical data

WISH / WALK: WHAT’S IN IT FOR YOU?

Web-based tool

NEW FUNCTIONALITY FOR 2016 Business goal calculator

Property view Account view

Volume entry Modeling to determine revenue impact for total hotel

Historical data Dynamic accounts data available Preferred / non-preferred by hotel by account Season start / end dates by hotel by account % sold out nights by DOW Mix of business: guest affiliation

WHERE DOES THE DATA GO?(This is not a sinister plot.)

a) May 4b) June 15c) July 6 d) August 3

AUDIENCE POLLING

The 2016 account qualifier process officially started the RFP season. When does the wish / walk process begin?

a) May 4b) June 15c) July 6 d) August 3

CORPORATE PRICING TIMELINE

Jun 15–Jun 30 (3 weeks)

Jul 01–Jul 15 (2 weeks)

May 04–Jun 01 Jul–Nov Aug–Dec

Wish / Walk:Hotel Entry

Wish / Walk:Brand / RM reviewQualifier RFP Season Email Alerts RFP Rebids

TAKE ACTION

Do your homework: ANALYZE your accounts

ENGAGE in the Wish / Walk Process

Don’t lose the rebid battle: HOLD FIRM!

Plan for success: SET A GOAL

Q&A