STR Global Ltd is the exclusive owner of all rights to hotel related data in this presentation and its content. Reproduction of all or a portion of this presentation for any purpose without prior approval of STR Global is strictly prohibited. Accommodation Market update Figuratively speaking Bryon Merzeo STR Global
Who is STR Global? The world s largest source of global hotel performance data Covering over 5,500,000 rooms in over 45,000 hotels, motels, serviced apartments worldwide. Specialist in data collection and reporting Supply, Demand, Revenue, Profitability, Pipeline. (Rooms available in each market, Occupancy, Average Rate, RevPAR, New properties being built) Primary Clients Accor Hilton IHG Starwood Hyatt Marriott Shangri-La Meriton Four Seasons Ascott Choice Hotels Best Western Toga Rendezvous Pan Pacific Oaks Mirvac Rydges Mantra Quest Apartments etc. Other clients AAA & TAA Hotel associations, Tourism Australia, State & regional TO s Development and investment community Hospitality suppliers Consulting firms
Who is STR Global? + + HotelBenchmark TM Local Company Update: 4.5 years with a Sydney office 900+ properties participating in Australia TAA and AAA hotel association support State and regional tourism office support All Major Hotel & Serviced Apartment Brands participating
Full Year 2011 Year End, RevPar year-on-year % change +8.0% +5.8% -1.8% +9.8% North America Europe Middle East/Africa Asia Pac Source: STR Global
Year To Date 2012 YTD March, RevPar year-on-year % change +7.5% +2.5% +9.9% +7.1% North America Europe Middle East/Africa Asia Pac Source: STR Global
Jan-02 May-02 Sep-02 Jan-03 May-03 Sep-03 Jan-04 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 Asia Pacific Rolling-12 RevPAR, Occ, ADR % growth. Jan 2002 - Jan 2012 $100 $90 $80 $70 $60 $50 $40 $30 Source: STR Global 40 30 20 10 0-10 -20-30 -40 Occ % ADR % RevPAR
Select Asian Markets YTD % change, Local Currency. Year to Date, March 2012 Hong Kong Bangkok Jakarta Beijing Singapore Bali Phuket Seoul Sydney Kuala Lumpur New Delhi Tokyo Shanghai Source: Source: STR STR Global Global -30% -20% -10% 0% 10% 20% 30% 40% 50% Occupancy Average room rate
Australia Development Pipeline Over the next 5 years: 26 Hotels & Serviced Apartments Projects = 3,946 rooms Pipeline 2% Current Supply 233,098 rooms Source: STR Global
2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 Occupancy: Jan & Feb 2012 vs. 2011 90 80 70 60 50 40 30 20 10 0 Australia Melbourne Sydney New Zealand Auckland Wellington 180 160 140 120 100 80 60 40 20 0 RevPAR: Jan & Feb 2012 vs. 2011 Key theme: Rate Growth Source: STR Global Australia Melbourne Sydney New Zealand Auckland Wellington
Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Mar-12 Australia Rolling-12 RevPAR and Occ, ADR % change up to March 2012 $140 $130 $120 $110 $100 $90 $80 Dec 2007 $129 May 08 Source: Source: STR STR Global 20 % 15 % $127 10 % 5 % 0-5 % -10% -15% -20% Occ % ADR % RevPAR
Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Select Markets Rolling-12 RevPAR To March 2012 $180 Perth $160 $140 $120 Sydney Brisbane Canberra Melbourne $100 Source: STR Global
Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Select Markets Rolling-12 RevPAR To March 2012 $180 $160 $140 $120 $100 $80 Source: STR Global Darwin Gold Coast Adelaide Hobart
Australia Key Market Performance Full Year 2011 vs. 2010 Source: STR Global RevPAR % Change Australia 4.7 Adelaide -0.3 Brisbane 7.3 Cairns 2.8 Canberra -1.2 Melbourne 3.5 Perth 14.7 Sydney 5.1
Australia Key Market Performance YTD May 2, 2012 Source: STR Global YoY % Change Occ ADR Occ ADR Australia 75% $ 177 2.7% 2.1% Adelaide 2.1% 0.9% Brisbane 1.6% 5.0% Cairns 2.1% 1.1% Canberra -1.7% 5.9% Melbourne -.3% 0.7% Perth 4.5% 12% Sydney -1.1% 1.0%
95 90 85 80 75 70 Sydney Market Seasonality Occupancy % % % % % % 65 60 55 % % % Source: STR Global Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Melbourne ADR by Market Class Past 15 months $300 $280 $260 $240 $220 $200 $180 $160 $140 $120 $100 Top End Upscale Midscale $80 $40 Source: STR Global $110 $50
Serviced Apartments & Hotels Room Count by market Source: STR Global Brisbane Adelaide Gold Coast Perth Melbourne Sydney
Serviced Apartments vs. Hotels: Occupancy & Rate 2011 data Apartments = Occ + $12 Rate Perth Apartments + 2% Occ $ -3 Rate BrisVegas Source: STR Global Apartments + 5.4% Occ + $22 Rate SYDNEY Apartments +.5% Occ - $8 Rate Melbourne Apartments +3% Occ = Rate Auckland
Occupancy Occupancy Occupancy Occupancy Average Rate Sydney YTD 2012: day of week Performance 90 % Source: STR Global $210 85 80 % % High Demand, why not rates? $205 $200 75 % $195 70 % $190 65 % $185 60 % Sunday Monday Tuesday Wednesday Thursday Friday Saturday $180
Occupancy Occupancy Occupancy Occupancy 90 Brisbane $210 Darwin 85 80 75 % $200 $190 70 65 60 55 % Contract Rates? % Sunday Monday Tuesday Wednesday Thursday Friday Saturday $180 $170 $160 Contract Rates? High Demand, Rate Opportunity? % % Adelaide Source: STR Global 100 95 90 85 80 Perth $250 $230 $210 % 75 70 Sunday Monday Tuesday Wednesday Thursday Friday Saturday $190 All data: YTD 2012
Sydney variations by region YTD Occupancy and ADR North Sydney 80% $179 Sydney CBD 88% $213 Outer Sydney 75% $154 Source: STR Global
Daily Yield Management Opportunity Greater Sydney Top Occ days vs. Top rates Past 365 days Source: STR Global Date DOW Occupancy ADR 11/26/2011 Sat Elton John & Stereosonic 98.2 227.09 11/09/2011 Wed Tiger Woods & Kings of Leon 98.1 209.93 03/10/2012 Sat Mardi Gras, Taylor Swift + 98.0 229.83 02/15/2012 Wed Rod Stewart 98.0 219.55 12/02/2011 Fri Eminem, ALP, ACIS Conference 98.0 236.64 11/12/2011 Sat Tiger Woods 97.9 221.11 11/15/2011 Tue Florence+Machine,Cruise Ship 97.8 210.02 02/25/2012 Sat Roxette, Winefest, Sydney Zombie Walk 97.7 232.75 12/03/2011 Sat Homebake music festival 97.7 246.41 11/10/2011 Thu Equestrian + Cold Chisel 97.7 210.64 03/27/2012 Tue Faith Hill + Duran Duran 97.6 211.83 02/14/2012 Tue Rod Stewart 97.4 218.53
Daily Yield Management Perth Top rates Past 365 days Source: STR Global Date Day Event Occupancy ADR 10/26/2011 Wed Queen s Visit 96.9 324.09 10/25/2011 Tue 97.1 318.52 10/27/2011 Thu 94.6 316.94 10/24/2011 Mon 96.3 314.51 02/21/2012 Tue Oil & Gas Expo 96.7 310.60 02/22/2012 Wed 96.6 305.95 10/28/2011 Fri Queen s Visit 88.2 298.91 02/23/2012 Thu 95.5 294.59 10/29/2011 Sat Queen s Visit 90.0 292.27 10/30/2011 Sun Queen s Visit 87.4 283.66 02/20/2012 Mon 94.4 275.95 03/20/2012 Tue 95.7 275.11 03/14/2012 Wed Mining Expo 96.2 272.61 03/13/2012 Tue 95.6 268.55 02/15/2012 Wed 96.0 266.64 * Rolling Year Average Rate $212
Daily Yield Management Perth Top Occ days vs. Top rates Source: STR Global Past 365 days Date Day Event Occupancy ADR 08/10/2011 Wed 97.6 232.50 08/09/2011 Tue 97.5 227.81 11/09/2011 Wed Wild 97.5 241.35 10/19/2011 Wed Wednesdays 97.3 253.57 11/16/2011 Wed & 97.2 246.70 08/17/2011 Wed several small 97.2 224.53 08/16/2011 Tue events 97.2 224.67 08/11/2011 Thu 97.1 228.94 11/23/2011 Wed 97.1 248.38 10/25/2011 Tue Queen s Visit 97.1 318.52 11/22/2011 Tue 97.0 247.53 11/15/2011 Tue 97.0 245.90 10/18/2011 Tue 97.0 251.57 11/08/2011 Tue 96.9 246.89 10/26/2011 Wed Queen s Visit 96.9 324.09 * Rolling Year Average Rate $212 148 rooms unsold in Perth- Yet 70 th Best rate
Sydney CBD is nearly Sold Out! (Often) 75 Days above 95% Occupancy... Less than 920 rooms available! Source: STR Global On these 75 days, Average rate was: $222 Average rate for year: $198
Brisbane Darwin 43 Days above 95% Occupancy... Less than 348 rooms available! 69 Days above 90% Occupancy... Less than 261 rooms available! Adelaide Source: STR Global Perth 36 Days above 95% Occupancy... Less than 257 rooms available! 74 Days above 95% Occupancy... Less than 309 rooms available! -All stats on past 365 days
Sydney Rate Segmentation by client type: group, contract, transient $300 $280 $260 $240 $220 $200 $180 $160 $140 $120 $100 $70 Contract Rates Source: STR Global Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
$220 Key theme 3: Rate growth opportunities Dynamic Pricing vs. Static rate $200 $180 $160 $140 $120 $100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Tools for Hotel Buyers: Full suite of reports Illustrative data only
Should you be interested in the data/reports used to create this presentation, please contact me: Bryon Merzeo Bmerzeo@strglobal.com Direct:+61 04 1522 9200 www.strglobal.com STR Global, Ltd is the exclusive owner of all rights in this presentation and its content. Reproduction of all or a portion of this presentation for any purpose without prior approval of STR Global is strictly prohibited. Any views represented are from my personal observations of the data only and not to be used as consulting advice.
Access to inventory through online booking tools Chris Waite OBT Hotel inventory Accessing the right content and keeping in policy Business Travel in Context 1
Access to inventory through online booking tools Chris Waite Hotel inventory through online booking tools Who uses an online booking tool and why? Where does OBT hotel content come from and why do I care? How do I get my negotiated rates into my OBT? How can an OBT help me save $$$? What s next for OBTs? Business Travel in Context 2
Access to inventory through online booking tools Chris Waite Who uses an online booking tool? Business Travel in Context 3
Access to inventory through online booking tools Chris Waite Why use an online booking tool? Time saving Improves travel policy compliance Save $$$ Duty of care Broad range of content in single POS Business Travel in Context 4
Access to inventory through online booking tools Chris Waite Where does OBT hotel content come from and why do I care? Majority of content comes from the GDS Why? 110,000+ hotels Can be cancelled in the OBT without contacting third party Usually flexible booking conditions 95%+ participate in best available rate (BAR) Single PNR view hotel booked & managed alongside air and car Dynamic inventory and rates direct from the hotel Corporate negotiated rates distributed in OBT via rate code Business Travel in Context 5
Access to inventory through online booking tools Chris Waite And then there are aggregators who provide complimentary content to what is available from the GDS Business Travel in Context 6
Access to inventory through online booking tools Chris Waite How do I get my negotiated rates into my OBT? Nego;ate rates with hotel Request rate code via GDS/ TMC Request hotel to load rates against rate code Check rates and last room availability (LRA) loaded correctly Set up rules in OBT If you already have a rate code Business Travel in Context 7
Access to inventory through online booking tools Chris Waite What if? The hotel hasn t loaded my rates or last room availability correctly? My preferred hotel isn t in the GDS? Non-preferred hotels keep loading squatter rates against my rate code Business Travel in Context 8
Access to inventory through online booking tools Chris Waite How can an OBT help me save $$$? Define and manage your hotel policy carefully to improve compliance and limit booking of higher rate, non-preferred content When no in-policy options available, define the out of policy rules to limit abuse Manage travel policy to drive volumes in the right places Business Travel in Context 9
Access to inventory through online booking tools Chris Waite The future of OBT hotel Applying the Amadeus Altea air concept to hotel IT Focus on customer experience and assurance Stronger relationships between GDSs and aggregators Business Travel in Context 10
Access to inventory through online booking tools Chris Waite Key Take-Aways It s in your best interest to have travellers booking via an OBT Your preferred hotels and negotiated rates should be in the GDS Use your OBT travel policy cleverly to maximise volumes and cost savings Business Travel in Context 11
Access to inventory through online booking tools Chris Waite Thank you Business Travel in Context 12
Jakki Temple Echo Entertainment Group Business Travel in Context
A Hotelier s Perspec9ve Hoteliers perspective can vary! Does the hotel want your business? How empowered is your Hotel Sales Rep? What value do you bring to the negotiating table? Opportunity for Dual rate strategy? Are your objectives aligned? Form a partnership Business Travel in Context