HTNG Executive Briefing Session

For Technology and Distribution Vendors

9 July 2003

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Conference Call Agenda Introduction Discussion of HTNG History and Mission HTNG Governance Structure Specific HTNG Objectives for 2003-2004 Hotel Membership and Participation

Guidelines Vendor Membership and Participation

Guidelines Media Activities Next Steps Q&A

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Introduction Presenters Audience Acknowledgments

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Code of ConductTrade associations are perfectly lawful organizations. However, since a trade association is, by definition an organization of competitors, HTNG officers and members must take precautions to ensure that we do not engage in activities which can be interpreted as violating existing anti-trust or anti-competitive agreements in various parts of the world. For any activity which is deemed to unreasonably restrain trade, the association and its members may be subject to legal penalties, regardless of otherwise beneficial objectives.To ensure that we conduct all meetings and gatherings in strict compliance to any such laws and agreements in any part of the world, the HTNG Code of Conduct is to be distributed and/or read aloud at all such gatherings.There will be no discussion of room rates, surcharges, conditions, terms or prices of services, allocating or sharing of customers, or refusing to deal with a particular supplier or class of suppliers. Neither serious nor flippant remarks will be permitted.Because the members of the organization are expected to behave professionally at all times, which includes acting in accordance with all applicable laws, negative, disparaging or discrediting comments regarding other members, corporations or competitors, or their goods or services, will not be tolerated.HTNG may not issue recommendation on any of the above subjects or distribute to its members any publications concerning such matters. No discussions which directly or indirectly fix purchase or selling prices may take place. Standards or certification requirements for membership must give equal conditions to all similar parties.All HTNG related meetings shall be conducted in accordance with a previously prepared and distributed agenda. Actions inconsistent with the above terms will be considered violations of this Code of Conduct. The Board of Directors reserves the right to take whatever actions it deems necessary to ensure compliance with this Code.

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Brief History

Conceived by a group of hospitality-industry technology influencers at HITEC 2002

Executive Board of hotel executives appointed December 2002

Mission statement developed January 2003 Officers elected March 2003 Executive advisory group appointed March-

June 2003 2003-2004 objectives established at board

meeting at HITEC 2003

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Why HTNG?Despite the best efforts of many vendors, hotels require far better integration of vertical applications

80+ applications – no vendor supports more than a handful

Functional, transaction-oriented processing – little or no customer centricity

Poor support for non-room productsHistorically, integration efforts have been

dismal failures

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Why HTNG? Poor exploitation of modern

technology platforms (as opposed to tools) by hotel companiesLeads to poor support of modern

platforms by technology suppliers• “Platform independence” is a marketing myth

Chicken and egg problem – need to create a forum for agreement

Substantial holdback of capital spending by most hotel companies vs. requirements

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How Will HTNG Help? By providing leadership and a common voice

For customer (hotels) to describe their needs and frustrations to technology vendors

By establishing a forum for sharing of best practices in systems interoperability

By establishing core architectures and platforms that Hotel companies can install and support, or contract

with third parties to operate Provide a common, known environment for application

providers to write to, test, document, and support Provide common services to applications, so that

vendors can focus on core business-logic competencies Facilitate information exchange and consolidation across

time, geography, and application

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HTNG Mission StatementHTNG will facilitate the creation of solution sets for

hospitality that:1. Are modeled around the customer, and allow for a

rich definition and distribution of hotel products, beyond simply sleeping rooms

2. Comprise best-of-breed software components from existing vendors, and enable vendors to collaboratively produce world-class software products encompassing all major areas of technology spending: hotel and leisure operations, telecommunications (PABX), in-room entertainment, customer information systems, and electronic distribution

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HTNG Mission Statement3. Properly exploit and leverage a base system

architecture that provides integration and interoperability through messaging; and that provides security, redundancy, and high availability

4. Target the needs of hotel and leisure companies up to several hundred properties, that are too small to solve the issues themselves

5. Will reduce technology management cost and complexity while improving reliability and scalability

6. Can be deployed globally, managed remotely, and outsourced to service providers where needed.

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What is a “Solution Set?” A set of integrated software products from

one or many vendors thatAddresses a defined set of needs for a target

market or business problemProperly leverages a modern, common base

platform• Operating system and network architecture• Database environment• Deployment model• Common platform services (office automation, messaging,

directory services, security, management)Can be operated either in-house or by a third party

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What HTNG is Not A standards body

Solution set(s) may create de facto standards, but HTNG does not intend to dictate them

Suppliers can make their own business decisions whether and which standards to adopt

HITIS, HEDNA or HFTP A pressure group A think tank Targeted at the needs of all hotels

Focus is below megachains and above independent hotels

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Governance HTNG founders concluded that change

could be driven ONLY by hotelsThey appointed an initial executive board

consisting entirely of hotel senior technology executives

The board itself adopted a governance structure that continues to reflects this requirement

• Only hotel company executives can be elected to board positions

• Six initial board members, with several candidates seeking two open positions

Vendors, consultants, academics, media, and others will have productive and active roles

• But cannot hold board positions

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Governance Board of Directors

Gebhard Rainer – President (Hyatt International) Mark Hedley – Vice President (Wyndham) Matthew Dunn – Secretary/Treasurer (Intrawest) Glenn Bonner (MGM Mirage) Kathleen McIntee (Destination Hotels & Resorts) Nick Price (Mandarin Oriental) 2 open positions

Executive Advisors Daniel Connolly (Univ. of Denver) Jon Inge (Jon Inge & Associates) Doug Rice (Stratus Management Group) Mac Smith (Plexus Partnership)

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Membership Structure Regular Members

Organizations that actively provide hospitality services to end consumers as a primary business, or individuals currently employed by such organizations. Organizations are to be represented by individuals who have technology-related responsibilities.

Industry Partner Members Organizations who provide technology and/or distribution-

related products and/or services to the hospitality industry Allied Members

Individuals whose interest in the industry is fundamentally informational rather than economic, including specifically but not limited to students, academics, and media representatives; but specifically excluding individuals who qualify for other membership categories

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Hotel Membership Participation

Targeted at decision makers and influencers for technology acquisitionTechnicalBusiness

Per-person membership fee ($195/year) Membership provides

Opportunity to work collaboratively in defining platforms and facilitating inter-vendor communication

Early awareness of and access to inter-vendor capabilities created by HTNG-driven activities

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Vendor Membership Participation

Open to all ($1,500/year per company) Membership entitles vendors to

• Pre-publication access to results of customer/vendor workgroup efforts

• Publicity through HTNG of their commitment of the effort • Use of HTNG solution set “endorsement(s)” based on

compliance with workgroup-established guidelines Active participative roles by vendors will require

adherence to “good citizen” rules To be modeled on similar successful efforts in other

industries and technology spaces, e.g. The Open Group Will be communicated in greater detail during August

2003

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HTNG 2003-2004 Action Proposal

Identify core hospitality-industry technology and distribution vendors

Review HTNG mission and implications with senior vendor executives (today)

Obtain startup funding through vendor membership drive

Finalize and communicate the workgroup process model during August 2003

Provide key communications about HTNG in the context of the CIO Summit in early September

Seek vendor commitment to public support of HTNG via press releases during the first two weeks of September, 2003

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HTNG 2003-2004 Action Proposal

Charter specific workgroups with defined objectives and timeframes (3-12 months) at Board Meeting during September 2003

Form customer-vendor workgroups for one or more technology architecture problem setsFacilitate initial working sessions 24-26

SeptemberDefined missions Target outcomes that are achievable in a time

period of three to nine months

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HTNG 2003-2004 Action Proposal

Publish workgroup working papers and outcomes in a forum available to all HTNG members, beginning immediately after the September sessions Non-members will receive this information only in

synopsis form and only after the workgroup has completed its task

Members will have ongoing access to working papers throughout the process

Launch full-scale membership campaign(s) beginning in October, 2003

Deliver first integrated applications from workgroups prior to HITEC 2004

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Vendor Action Steps - #1 Join HTNG

Provide contact & full company information• E-mail to ‘membership@htng.org’ if invoice is

required• Or send check via snail mail to HTNG address,

payable to “Hotel Technology-Next Generation”Electronic enrollment will be available by 1

September at http://www.htng.org/Vendor site will be added to HTNG Vendor

Members rosterAdd HTNG logo/link to your site

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Vendor Action Steps - #2 Publish press release supporting HTNG &

workgroup processRequested of vendors that regularly issue press

releases • Others can use alternative communication modes such

as a letter to customers or prominent website postingRequested release dates: 3-12 SeptemberHTNG will supply boilerplate, which can be

adapted as desiredFurther media coverage to be arranged by HTNG

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Vendor Action Steps - #3 Architect or Senior Technologist

Participation in Integration WorkgroupsInterested vendors should e-mail contact

details to ‘workgroups@htng.org’Size, makeup and participation

• To be limited according to practices adopted from similar organizations

Kickoff September 24-26• Chicago area, details TBA

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HTNG Contact Details Web site:

http://www.htng.org/ Membership questions:

membership@htng.org Mailing address:

Hotel Technology-Next Generation2275 Lake Whatcom Blvd, PMB-223

Bellingham, WA 98226360-715-8741