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CAPA Australia Pacific Aviation & Corporate Travel Summit

Sydney 1 August 2018

Dean EastonTitle, Manager Hotel Sourcing

Email : dean.easton@4dconsulting.com.auWebsite : 4dconsulting.com.au

LinkedIn : 4th Dimension Consulting Australia

Welcome

4D BUSINESS TRAVEL CONSULTING

AGENDA

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A look at our presentation agenda

What we will cover today

FINDING SAVINGS Sourcing savings in a constrained markets

4D MARKETUPDATE

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DISCUSSION

Q&A

BEST DAILY RATESFinding the balance between fixed contracted rates & OTA’s

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Global TeamGlobal Business with experts based around the world

UNITED KINGDOMLondon team experienced

program re-engineering and

sourcing

UNITED STATES

Based in Philadelphia and Boston,

a team of Senior Advisors and

Sourcing Specialists managing

global programs

AsiaTeams dedicated to BI, Data

Analytics, Research and Supplier

Audits.

AUSTRALIA

Located in Sydney & Melbourne a

team of Senior Business Advisors and

Sourcing Specialists managing global

programs

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Inbound Visitors

Australia = 9M75% Holiday & Visiting Friends11% Business & Conferencing7% Education

New Zealand = 4M81% Holiday & Visiting Friends11% Business & Conferencing2% Education

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2017 Hotel Occupancy

89%SYDNEY

86%MELBOURNE

77%PERTH

74%BRISBANE

79%ADELAIDE

80%HOBART

80%QUEENSTOWN

82%AUCKLAND

80%WELLINGTON

75%CHRISTCHURCH

2018 Annualised forecast +2% national average

4th Dimension FocusGlobal Hotel Corporate Purchase Trends

Q2 2018

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Oceania Q2 2018 ARR

$262SYDNEY

Market ARR Analysis

AUSTRALIA Q1 VS Q2 2018 ARR $1 TO AU$197

NEW ZEALAND Q1 VS Q2 2018 ARR -$6 TO NZ$205

$209MELBOURNE

$193PERTH

$188BRISBANE

$180DARWIN

$184ADELAIDE

$186HOBART

$207CANBERRA

$188HAMILTON

$243AUCKLAND

$175CAIRNS

$189NEWCASTLE

$204WELLINGTON

$192CHRISTCHURCH

PERTH

CHRISTCHURCH

BRISBANE

+ $1

- $10

+ $3

SYDNEY

AUCKLAND

MELBOURNE

- $8

- $14

- $3

+ 0.4%

- 4.5%

+ 1.5%

- 3.0%

- 5.2%

- 1.4%

Local Currency ARRVar. Q1 vs Q2 2018

AU$ & NZ$ LOCAL CURRENCY

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Why have a Hotel Program

Discount Savings Preferred Suppliers

Core features of a corporate hotel program

Leakage Care SatisfactionCompliance

Enhance land attachment within reservations

Enhance Duty of Care coverage

Compliance to right rates & leverage future

negotiations

Maximize traveler satisfaction

Maximize hard dollar hotel discount savings

Capture soft dollar rate savings (wifi, shuttle,

breakfast)

Increase preferred property coverage

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0

1

2

3

4

5

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Best RateTravel

Program(Budget)

Rate Caps(decrease

10%)

Best RateTravel

Program(Midscale)

NegotiatedRate

Program(Budget)

Pier DiemAllowance

Rate Caps(increase

10%)

Chain WideDeals

LoyaltySchemes &

Value

NegotiatedRate

Program(Midscale)

Best RateTravel

Program(Upscale)

Rate Caps(increase

40%)

NegotiatedRate

Program(Upscale)

No HotelTravelPolicy

Traveller Satisfaction

Cost Saving

Pros & Cons of Contracted vs Best Rate of Day

Open Hotel ProgramO

PTI

MIS

ATI

ON

SC

ALE

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WHAT IS WORKING WELL

TODAY?

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WHAT IS NOTWORKING WELL

TODAY?

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• Leverage Hotel Partnerships

• Rate Value Adds

• Employee Diversity & Property Choice

• Triumvirate Hotel Rate Choice

• Continuous Sourcing

• Category Management Plan

• Small Meetings & Events Strategy

• RFP Outsource Savings & Value = ROI

4D Optimised Hotel Programs

H HHHH

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Hotel Openings

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Sydney

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How many ways can your traveller

book a room today?

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Client Negotiated Rates

More than just a negotiated rate program

Hotel Rate Options

Chain HotelDiscounted Rates

TMC DiscountedRates

OTA, ConsortiaDistressed Inventory

Hotel BAR

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• Triumvirate Hotel Rate Choice

• Seasonality of rates

• Low Supply & Strong Demand

• Employee Choice

• Continuous Sourcing

• Continuous Program Management

Optimising Hotel Programs

H HHHH

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DISCUSSION

D4

Questions & Answers

CHALLENGE LEGACY THOUGHT AND SYSTEMS TO PROVIDE BETTER SOLUTIONS

Dean.Easton@4Dconsulting.com.au

Website : 4dconsulting.com.auLinkedIn : 4th Dimension Consulting Australia