Tim Peter Cendant Hotel Group Using the Internet to Engage Consumers
Agenda • Why Cendant Hotels? • Why focus on engagement? • What is CHG doing?
Hotel Group overview • Hotel Group booked 4.3 million rooms by telephone, 8.3 million rooms by e-commerce and 2 million by global distribution systems in 2005
Brand Web sites • Hosted 40 million unique visitors in 2005 who booked +$300 million in gross revenue • Largest central reservations channel • Third-party recognition • Most visited hotel Web sites (comScore, March 2006) • Lodging Hospitality 2002 Chain Leadership Award for Technology for booking engine redesign
Why engagement matters • Loyal and engaged customers • Stay more often – up to twice as many purchases (nights) • Spend more money • Shop around less
Consumers shop mercilessly • Consumers seek value • Customers start their research on a travel aggregator site • Aggregators serve as search engines • Property sites (ideally) serve as ‘find engines’ • Hours and days are spent researching travel online • All share information with other consumers (guests) • All compare products (hotels)
Framework for engagement – Hotel space • Collection of brands that they trust • Location/proximity • Price/value • Objective information • Amenities offered • Definitive quality ratings • Will I like it when I get there?
E-Commerce engagement • Think about the end use • Will I like it when I get there? • Will I like it when I get it home? • Answer the consumer’s questions • Price/value • Allow consumers to easily assess value of product • Ensure objective view of information • Clearly define quality for consumers in their terms
Tim Peter Director, Internet Product Development Cendant Hotel Group
RSS – Friend? • Provide greater distribution • Require guest to care enough to engage • Keep brand in front of guest
RSS – Foe? • Is this the right way to represent a brand?