Tim PeterTim PeterCendant Hotel GroupCendant Hotel GroupUsing the Internet to Engage Using the Internet to Engage ConsumersConsumers

AgendaAgenda

• Why Cendant Hotels?Why Cendant Hotels?• Why focus on engagement?Why focus on engagement?• What is CHG doing?What is CHG doing?

Cendant Hotel GroupCendant Hotel Group

• Hotel Group Hotel Group booked 4.3 booked 4.3 million rooms by million rooms by telephone, 8.3 telephone, 8.3 million rooms by million rooms by e-commerce e-commerce and and 2 million by 2 million by global global distribution distribution systems in 2005 systems in 2005

Hotel Group overviewHotel Group overview

Brand Web sitesBrand Web sites

• Hosted 40 million unique visitors in 2005 Hosted 40 million unique visitors in 2005 who booked +$300 million in gross who booked +$300 million in gross revenuerevenue

• Largest central reservations channelLargest central reservations channel• Third-party recognitionThird-party recognition

• Most visited hotel Web sites (comScore, Most visited hotel Web sites (comScore, March 2006)March 2006)

• Lodging Hospitality 2002 Chain Leadership Lodging Hospitality 2002 Chain Leadership Award for Technology for booking engine Award for Technology for booking engine redesign redesign 

Why engagement mattersWhy engagement matters

• Loyal and Loyal and engaged engaged customerscustomers– Stay more often – Stay more often –

up to twice as up to twice as many purchases many purchases (nights)(nights)

– Spend more Spend more money money

– Shop around lessShop around less

-50.0-25.00.025.050.075.0100.0125.0150.0175.0200.0225.0250.0275.0300.0

Consumers shop mercilesslyConsumers shop mercilessly

• Consumers seek valueConsumers seek value– Customers start their research on a travel Customers start their research on a travel

aggregator site aggregator site • Aggregators serve as search enginesAggregators serve as search engines• Property sites (ideally) serve as ‘find Property sites (ideally) serve as ‘find

engines’engines’– Hours and days are spent researching travel Hours and days are spent researching travel

online online – All share information with other consumers All share information with other consumers

(guests) (guests) – All compare products (hotels)All compare products (hotels)

Framework for engagement – Hotel Framework for engagement – Hotel spacespace

• Collection of brands that they trustCollection of brands that they trust• Location/proximityLocation/proximity• Price/valuePrice/value

– Objective informationObjective information– Amenities offeredAmenities offered– Definitive quality ratingsDefinitive quality ratings

• Will I like it when I get there?Will I like it when I get there?

TravelodgeTravelodge

Travelodge SearchTravelodge Search

Property Merchandising – Before Property Merchandising – Before

Property Merchandising – After Property Merchandising – After

E-Commerce engagementE-Commerce engagement

• Think about the end useThink about the end use– Will I like it when I get there?Will I like it when I get there?– Will I like it when I get it home?Will I like it when I get it home?

• Answer the consumer’s questionsAnswer the consumer’s questions

• Price/valuePrice/value– Allow consumers to easily assess value of productAllow consumers to easily assess value of product– Ensure objective view of informationEnsure objective view of information– Clearly define quality for consumers in their termsClearly define quality for consumers in their terms

Friend or foe?Friend or foe?

Tim PeterTim PeterDirector, Internet Product Director, Internet Product DevelopmentDevelopmentCendant Hotel GroupCendant Hotel Group

RSS – FRSS – Friend?riend?

• Provide greater distributionProvide greater distribution• Require guest to care enough to engageRequire guest to care enough to engage• Keep brand in front of guestKeep brand in front of guest

RSS – Foe?RSS – Foe?

• Is this the Is this the right way right way to to represent represent a brand?a brand?