Phil Andreopoulos Vice President Global Sales Europe Marriott International AIPC conference...
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Transcript of Phil Andreopoulos Vice President Global Sales Europe Marriott International AIPC conference...
Phil AndreopoulosVice President Global Sales EuropeMarriott International
AIPC conferenceAmsterdam, Tuesday July 3, 2012
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• Part One: Impact of the financial crisis on the global lodging industry
• Part Two: Overview of the global lodging industry today
• Part Three: Hotel pricing philosophies
Agenda
R.I.P
The Good
Times?
Part One: How did the global lodging industry fare during the financial crisis?
RevPAR is the hotel industry’s global standard measurement tool.
Revenue per Available Room (RevPAR) is the total revenue generated through
bedroom sales, over a given time period, divided by the total number of bedrooms
available over the same period.
Part One: How did the global lodging industry fare during the financial crisis?
Who are the main players in today’s global market?
Part Two: Overview of the global hotel industry
Source: Otus 2009
1.9m
3.8m
Part Two: Overview of the global hotel industry
While Europe is the largest lodging market in the world, it is highly fragmented
Source: Smith Travel Research
Part Two: Overview of the global hotel industry
Current State
Source: Smith Travel Research
Part Two: Overview of the global hotel industry
Pipeline
Source: Smith Travel Research
Part Two: Overview of the global hotel industry
Pipeline
With so much new supply and growing demand,
how do hotels maximise RevPAR?
Part Three: Pricing philosophies
Group Individual
Part Three: Pricing philosophies
Getting the right balance between Group and Individual travellers
Group Individual
• Often contracts far in advance
• Guaranteed revenue (depending on contract
terms) or can ‘wash out’ (if terms not robust
enough)
• Helps forecasting / rate setting
• Often has Food and Beverage revenue attached
• Provides base business / confidence
• Can create pockets of low occupancy pre and post
• Ability to cancel on day of arrival with no charge
• Established and predictable patterns of demand
• Seasonal – established corporate / leisure
seasons
• Corporate preferred hotel programs
• Wholesaler deals for Leisure segments
• Ability of the hotel to manage demand
Part Three: Pricing philosophies
Getting the right balance between Group and Individual travellers.
Direct
Intermediary
Part Three: Pricing philosophies
s m t w t f s s m t w t f s s m t w t f s s m t w t f s s m t w t f s s mJanuary
FebruaryMarch
AprilMayJuneJuly
AugustSeptember
OctoberNovemberDecember
Single event Multiple event
Fira de Barcelona – 2012 Events Calendar
Source: Fira de Barcelona Website
Part Three: Pricing philosophies
Barcelona Case Study
Source: Barcelona Tourisme
Part Three: Pricing philosophies
Barcelona Case Study
Barcelona rate check during October:
Source: hilton.com
Arrival at the Barcelona Hilton:
Tuesday October 2, 1 night: 191 Euros
Tuesday October 9, 1 night: 341 Euros
Tuesday October 16, 1 night: 191 Euros
Tuesday October 23, 1 night: 216 Euros
Tuesday October 30, 1 night: 191 Euros
Part Three: Pricing philosophies
Barcelona Case Study
Maximising the supply versus demand curve in Barcelona:
- Corporate accounts, lone business travellers
- Group demand from exhibitions
- Group demand from smaller meetings
- The leisure traveller
- Changing / seasonal airlift
Part Three: Pricing philosophies
Barcelona Case Study
Thank you and questions…?