Venky Rangachari CTO, Wyndham Hotel Group

Transcription

1 Venky Rangachari CTO, Wyndham Hotel Group

2 Wyndham Worldwide Overview Wyndham Worldwide is one of the world s largest hospitality companies with over 3.8 Billion of Net Revenues (1) in 2009 World s largest hotel company, based on number of hotels World s largest lodging loyalty program, based on participating hotels Nearly 7,200 hotels and approximately 606,000 rooms 98 million room-nights sold in 2009 Nearly 8% of U.S. hotel room supply 20% of WYN s 2009 combined segment EBITDA(2) World s largest vacation ownership developer and marketer More than 155 vacation ownership resorts with approx. 20,000 units throughout North America, the Caribbean and South Pacific More than 820,000 owners of vacation ownership interests 47% of WYN s 2009 combined segment EBITDA(2) World s largest vacation exchange network and one of the largest global marketers of vacation rental properties More than 65,000 properties in approximately 100 countries 33% of WYN s 2009 combined segment EBITDA(2) (1) Includes Corporate and Other (2) Combined segment EBITDA percentages calculated excluding Corporate and Other

3 Wyndham Worldwide Overview Wyndham Hotel Group franchises hotels in the upscale, midscale, economy and extended-stay segments of the lodging industry and provides property management services to owners of luxury and upscale hotels Wyndham Vacation Ownership markets and sells vacation ownership interests to individual consumers, offers consumer financing in connection with the sale of vacation ownership interests and provides property management services at resorts Wyndham Exchange and Rentals provides vacation exchange products and services to owners of intervals of vacation ownership interests and markets vacation rental properties primarily on behalf of independent owners

4 Competitive Landscape Wyndham Hotel Group is the largest hotel company in the world* # of Hotels # of Rooms Wyndham Hotel Group 7, ,000+ Choice Hotels International 5, ,526 InterContinental Hotels Group 4, ,851 Best Western International 4, ,000 Accor 3, ,975 Hilton Worldwide 3, ,725 Marriott International 3, ,681 Carlson Hotels Worldwide 1, ,077 Starwood Hotels & Resorts Worldwide Top Worldwide Lodging Franchisors ,800 *By number of hotels Source: Hotels magazine, June 2009, Top 50 Hotel Companies

5 Apollo recommendations developed through a thorough, phased process... Create factbase and identify highest potential opportunities Develop business case for each opportunity Build transformation roadmap Analyses conducted: Assessed current financial state of business Conducted interviews with WHG staff and customers to identify pain points Mapped structure of IT systems Conducted deep dive into five identified opportunities: Brand.com CRS Evolution Right Rate OTA International Identified root causes, developed recommendations, and modeled financial impact of recommendations Determined sequence of initiatives within each Mission Created overall roadmap across all Missions and identified interdependencies / risks Modeled near-term P&L impact

6 Business Transformation Introduced Apollo as the Business Transformation Initiative Created a visual roadmap to explain components Created metrics to measure progress

7 What is our WHG Moon? 7

8 8 Apollo has seven new Missions... Drive conversion on Brand websites Improve content to enhance conversion across all channels Compete effectively through CRS evolution Deliver the Right Rate at the right time Improve connectivity and product offering on OTAs Streamline service delivery model to deliver cost effective contact center experience Create a stable International platform for longer-term growth

9 9 Drive conversion on Brand websites Opportunity Improve consumer experience on Brand websites to increase conversion on WHG's largest, fastest growing and most profitable channel Brand websites are a significant, growing and profitable channel today, but conversion lags competitors The situation Many consumers not satisfied with brand website experience and thus less likely to book On the website, 20% of overall visitors rated their experience as Fair or lower Average WHG brand website conversion of ~5% lags competitor average of 10% Brand websites lag competitor hotel and OTA sites in both: User content Guest shopping experience Last major upgrade to Core websites in 2006

10 10 The Opportunity Of consumers intending to book a reservation, those who rate the website good or better booked 2.4 times more % of respondents who intended to make a reservation % (2.4x) 60 Yes I did % 51 40% Started but stopped No I did not 0 Consumers with a fair or lower rating Consumers with a good or better rating

11 Phased Delivery & Cross-Mission Dependencies The Phased Delivery Approach Big-bang deployments are difficult to execute Test and Learn Understanding cross-mission dependencies and design release schedules around them Focus on deliverables associated to the highest NPV and deliver them in logical phases EXAMPLE: Brand.com will deliver critical conversion elements via a rolling approach

12 Phased E-commerce approach Phase I segmentation Phase II Creative Design Phase III Functionality Build Metrics & evaluate decisions at every phase.

13 ecommerce Operating principles test and learn 1. Change one thing at a time in order to measure conversion impact 2. Release little and often in order to test and learn what drives conversion 3. Constant tuning to maximise conversion 4. Relentless focus on metrics around speed, booking path and traffic sources to drive conversion

14 An individual s Hotel / Travel Personality distinctly affects all aspects of travel behavior, from planning through booking Passionate Adventurers Budget-Conscious Planners Casual Weekend Explorers Loyal Road Warriors Travel Minimizers I m very passionate about travel and take quite a few trips and vacations throughout the year though I slightly prefer taking longer vacations. I enjoy traveling just to travel and I do not need to have a destination or goal in mind. When I do travel, the hotel is part of the overall travel experience, and I enjoy looking at the features and amenities offered. I will even go out of my way to stay at special hotels. Since I do travel quite a bit, I do the bulk of my research, planning, and booking online because it s cheaper and brings many reliable sources together for easy comparison. I enjoy traveling, but I don t get a chance to do it very often. I would much rather take fewer, longer vacations rather than more frequent trips. Since I don t get to travel that often, it is very important to be thorough in my planning and sometimes the planning is almost as fun as going on the vacation itself! I book very far in advance and I am fairly price sensitive. The hotel is not usually the focus of my travels and as such, I really just need some basic amenities. I enjoy traveling, but definitely prefer taking shorter, more frequent trips rather than vacations. It s fun to travel with no goal or destination in mind and just take things as they come. I don t really book my hotels ahead of time and I tend to stop at hotels I see along the highway. As such, I don t really have many brand preferences and don t like to be constrained by loyalty programs. The type of hotel doesn t matter to me, I just need a place to sleep. I travel very frequently, with close to a 50 / 50 split between personal trips and business trips. I don t mind traveling, but it is not a passion of mine. Most of the time, I travel by car and I do not really book or plan very far in advance though most of my research is done online. Since I do travel quite a bit, I am very involved with loyalty programs and almost always enroll in them. If possible, I tend to stay at hotels which I am a loyalty member so I can accumulate points / rewards. I also need to make sure I have access to the internet. Beyond that, I am fairly indifferent about all of the other hotel amenities and features. I m not very passionate about travel when I do travel, it s usually to go less than 300 miles from home by car. I take a few personal trips a year and rarely take long vacations. When I stay in hotels, I really just need the basics and I seldom book very far in advance. The hotel is just a place to sleep and price is the most important thing I consider when I book hotels.

15 Wireframes give the information architecture and initial functional direction

16 Importance of Cross Sell to improve contributions ant= All brands automatically checked by default when a search is conducted

17 Q&A Thank You CTO, Wyndham Hotel Group