James Stabler, J.D. Timothy Wahlin, J.D. Kevin Braun, J.D. Beth Giebel Mandel, J.D.
Stuart Greif Vice President & General Manager Global Travel & Hospitality J.D. Power and Associates.
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Transcript of Stuart Greif Vice President & General Manager Global Travel & Hospitality J.D. Power and Associates.
Agenda• J.D. Power and Associates• Travel Industry Satisfaction• 2010 Rental Car Satisfaction• What Travelers Want• Future Traveler Needs
Fiji IslandsFiji IslandsFiji IslandsFiji Islands
KoreaKoreaKoreaKorea
IndiaIndiaIndiaIndia
U.K.U.K.U.K.U.K.
MalaysiaMalaysiaMalaysiaMalaysia
MexicoMexicoMexicoMexico
AustraliaAustraliaAustraliaAustralia
CanadaCanadaCanadaCanadaSwedenSwedenSwedenSweden
GermanyGermanyGermanyGermany
South AfricaSouth AfricaSouth AfricaSouth Africa
IsraelIsraelIsraelIsrael
U.S.U.S.U.S.U.S.
BrazilBrazilBrazilBrazil
ArgentinaArgentinaArgentinaArgentina
ColombiaColombiaColombiaColombiaVenezuelaVenezuelaVenezuelaVenezuela
ChileChileChileChile
FranceFranceFranceFrance
ItalyItalyItalyItalySpainSpainSpainSpain
AustriaAustriaAustriaAustria
BelgiumBelgiumBelgiumBelgium
FinlandFinlandFinlandFinland
NetherlandsNetherlandsNetherlandsNetherlands
RussiaRussiaRussiaRussia
UkraineUkraineUkraineUkraineBelarusBelarusBelarusBelarus
TurkeyTurkeyTurkeyTurkeyJapanJapanJapanJapan
ThailandThailandThailandThailand
ChinaChinaChinaChina
SingaporeSingaporeSingaporeSingaporePhilippinesPhilippinesPhilippinesPhilippines
TaiwanTaiwanTaiwanTaiwan
DjiboutiDjiboutiDjiboutiDjibouti
TanzaniaTanzaniaTanzaniaTanzania
NigeriaNigeriaNigeriaNigeria
New ZealandNew ZealandNew ZealandNew Zealand
BahrainBahrainBahrainBahrain
BruneiBruneiBruneiBrunei
ScotlandScotlandScotlandScotland
SwitzerlandSwitzerlandSwitzerlandSwitzerland
PortugalPortugalPortugalPortugal
U. Arab EmiratesU. Arab EmiratesU. Arab EmiratesU. Arab EmiratesOmanOmanOmanOman
KuwaitKuwaitKuwaitKuwaitMoroccoMoroccoMoroccoMorocco
EthiopiaEthiopiaEthiopiaEthiopia
ZimbabweZimbabweZimbabweZimbabwe
PolandPolandPolandPoland
GeorgiaGeorgiaGeorgiaGeorgiaMaltaMaltaMaltaMalta
UgandaUgandaUgandaUganda
KenyaKenyaKenyaKenya
PakistanPakistanPakistanPakistanQatarQatarQatarQatar
SyriaSyriaSyriaSyria
BeninBeninBeninBenin
EgyptEgyptEgyptEgypt
CroatiaCroatiaCroatiaCroatia
GuatemalaGuatemalaGuatemalaGuatemala
PeruPeruPeruPeru
Hong KongHong KongHong KongHong Kong
IndonesiaIndonesiaIndonesiaIndonesia
Westlake Village, CAWestlake Village, CAOrange, CAOrange, CABoulder, COBoulder, COChicago, ILChicago, IL
Troy, MI Troy, MI Norwalk, CTNorwalk, CT
Washington, D.C.Washington, D.C.
TorontoToronto
LondonLondon
TokyoTokyo
SingaporeSingapore
MunichMunich ShanghaiShanghaiBeijingBeijing
Worldwide offices staffed by over 800 professional analysts, researchers, and consultants
Mexico CityMexico City
São Paulo São Paulo
BangkokBangkok
Regional OfficeRegional Office
Markets ServedMarkets ServedMarkets Served
J.D. Power and Associates
Industries Served• Automotive• Travel & Hospitality• Commercial Vehicles• Recreational Vehicles• Marine • Real Estate• Financial Services• Insurance• Healthcare
• Telecommunications • Utilities• Retailing• Consumer
Electronics • Consumer
Packaged Goods• Media and
Entertainment• Office Products• Professional
Services
7
Core Capabilities
Syndicated Research– Industry Benchmarking, full market visibility
– JDPA designs, executes and owns the data
– Media coverage, Customer Satisfaction Awards
Club Studies– Conducted for several clients, including competitors– Information is co-owned by clients and JDPA– Confidential, no awards or press releases
Proprietary Research– Conducted exclusively for a single client, can
include competitor benchmarking– Client owns the information– No awards or press releases
Brand Strength• Trusted and widely recognized by Consumers
• Integrity and independence of results
• Mark of excellence and distinction
• Voice of the Customer
The Challenge and the Opportunity
“…The airlines have infuriated the customers [with fees]…No wonder they are fed up by the time they come to get to our cars. Let’s put the “customer” back in customer service.”
Bob Barton
President, American Car Rental Association
,January/February 2011
2010 Satisfaction by Industry
Source: J.D. Power and Associates
827
826
778
777
771
763
757
750
750
748
690
673
673
2010 Motorcycle
2010 New-Home Builder
2010 APEAL - Vehicle
2010 Auto Insurance Service
2010 North America Hotel
2010 Self-Directed Investor
2010 Vehicle Sales Satisfaction
2010 Home Insurance Service
2010 North America Rental Car
2010 Retail Banking
2010 North America Airport
2010 North America Airline
2010 Original Equipment Tire
500 600 700 800 900 1,000
Index Score
Travel Industry Satisfaction
Source: J.D. Power and Associates
665
692687
668658
673
689 689
675
690
755 758 756 756
771
744750
734 733
750758
767
600
650
700
750
800
850
2005 2006 2007 2008 2009 2010 2011
Ind
ex
Sc
ore
North America Airline North America Airport
North America Hotel North America Rental Car
Travel Industry Advocacy
Source: J.D. Power and Associates
23%
29%
34%35%
33% 33%34%
30%31%
25% 25%
30%
28%
32%34%
36%
30%
34%
15%
20%
25%
30%
35%
40%
2005 2006 2007 2008 2009 2010 2011
% "
De
fin
itel
y W
ill"
Rec
om
me
nd
North America Airline North America Hotel
North America Rental Car
Travel Industry Loyalty
Source: J.D. Power and Associates
18%
33%
25% 25%
30% 30%
28%
30%
29%
26%
30%
33%
36%
30%31%
26%
34%
35%
15%
20%
25%
30%
35%
40%
2005 2006 2007 2008 2009 2010 2011
% "
Def
init
ely
Will
" R
ent
Ag
ain
North America Airline North America Hotel
North America Rental Car
Rental Car Satisfaction Over Time
500
700
900
1100
1300
1500
1700
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Time
S&
P
500
600
700
800
900
1000
Ove
rall
Ren
tal C
ar
Sat
isfa
ctio
n
S&P Close Overall Satisfaction (Rental Car)
Is The World Really Flat?
751773
762751
767 768789
777 773 770786
701 710 702690
725 716
746731
709686
713
600
650
700
750
800
850
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Time
Ove
rall
Sat
isfa
ctio
n (
Ren
tal C
ar)
Rental Car Variation vs. Other Industries
701 706732
618
713
610
739690
579
751
810
886
822786
861899 877
768
708
786
727685
625
739
500
600
700
800
900
1000
Ren
tal
Car
Ho
tel
Insu
ran
ce
Au
to
Ban
kin
g
Uti
liti
es
Ren
tal
Car
Ho
tel
Insu
ran
ce
Au
to
Ban
kin
g
Uti
liti
es
Ove
rall
Sat
isfa
ctio
n
2000 2010
Rental Car Brand Variation Financial Implications
40.1%31.9%11.5%11.9%Market share
38%27%19%16%Repurchase
772753719705Index
2010200220102002
Top 2Bottom 2
40.1%31.9%11.5%11.9%Market share
38%27%19%16%Repurchase
772753719705Index
2010200220102002
Top 2Bottom 2
Why Satisfaction Matters!Increased Advocacy
Increased Loyalty
Increased Usage
Greater Pricing Leverage
Lower Costs
Increased Market Share
Superior Operating Results
Superior Customer
Satisfaction
2010 Rental Car Satisfaction Study
• Study Overview• Study Insights
– Key Findings
– Business vs. Leisure
– Wait Times
– Problem Incidence and Recovery
Study Overview
• Study in its 15th year• North America airport locations• Measures critical components
that drive satisfaction• Establishes importance of each
factor to overall satisfaction• Fielding from September 2009
to September 2010
• Unique and proprietary approach• Based on what matters most to Rental Car customers• 1,000 points equals perfection• 6 key measures:
– Reservation Process– Pick-Up Process– Rental Car– Shuttle Bus/Van– Return Process– Costs & Fees
• Comprised of 27 detailed attributes
J.D. Power and AssociatesRental Car Satisfaction Index Model
Reservation
Pick-Up Process
Rental Car
Shuttle Bus/Van
Return Process
Costs & Fees
Rental Car Satisfaction Index Model
Reservation
Pick-Up Process
Rental Car
Shuttle Bus/Van
Return Process
Costs & Fees
Rental Car Index Model - Attributes
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
Reservation
Pick-Up Process
Rental CarShuttle Bus/Van
Return Process
Costs & Fees
Phone Reservation Website ReservationEase of getting through to a representative Ease of navigationCourtesy of telephone reservation staff Appearance/design of the websiteEase of booking Ease of bookingAvailability of booking options/travel packages Availability of booking options/travel packagesKnowledge of telephone reservation staff Usefulness of the information on the website
Cleanliness of rental facilityClarity of explanation of rental contract terms/chargesCourtesy of the counter personnelProfessionalism of exit-gate personnel upon leaving lotKnowledge of counter personnelSpeed of rental pick-up process
Appearance/cleanliness of rental car receivedPerformance of rental car receivedAmenities in rental carComfort of rental car receivedRental car smell
OVERALL Shuttle Bus/Van Experience
OVERALL Cost & Fees
Convenience of rental car return locationAmount of time need to get from rental car facility
to terminalEase of getting rental car returnedCourtesy of rental car staff during drop-offKnowledge of rental car staff during drop-offSpeed of rental car return process
• Each ranked rental car brand improved performance from 2009
• Most companies returning to pre-recession levels of satisfaction
• Loyalty and advocacy rates increased for business and leisure
• Incidence of significant problems has decreased and remained in the 9%-11% range over the past 5 years
Key Findings
Satisfaction by Customer Type
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
750758
740
720 724
738
771
758
744 740
759
750
733734
767
650
700
750
800
850
2006 2007 2008 2009 2010
Ind
ex S
core
Total Industry Business Leisure
Satisfaction by Customer Type
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
¹Based to those who made a reservation themselves, by calling the rental car company or visiting the rental car company's website to make the reservation.²Based to those who used the shuttle bus/van service.
738
795
765741
709
770
679
759
802
765 767744
791
712
500
600
700
800
900
1,000
OverallSatisfaction
Index
ReservationProcessIndex¹
Pick-UpProcess Index
Rental CarIndex
ShuttleBus/VanIndex²
ReturnProcess Index
Costs & FeesIndex
Ind
ex
Sc
ore
Business Leisure
550 600 650 700 750 800 850 900Index Scores
Reason for Selecting Rental Car Company
Business Leisure
Primary reason you selected the rental car company¹Price 30% 52%Corporate policy 17% 1%Previous experience 16% 15%Rewards program 13% 7%Convenience 10% 8%Reputation 8% 9%Package deal 2% 4%Recommended by someone 2% 2%Other 1% 1%
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
¹Based to exclude 'Don't know.'
Shuttle Bus/Van Wait Times
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
764
708
672
751
702
665
632
577
648654
500
550
600
650
700
750
800
850
1 to 5 minutes 6 to 10 minutes 11 to 15 minutes 16 to 20 minutes 21 minutes or more
Shuttle Bus/Van Wait Time
Ind
ex S
core
To Rental Counter To Airport
Car Pick-Up Wait Times
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
738
708
682
643
577
500
550
600
650
700
750
800
850
1 to 5 minutes 6 to 10 minutes 11 to 15 minutes 16 to 20 minutes 21 minutes or more
Pick-Up Wait Time
Ind
ex S
core
Car Return Wait Times
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
726
665
633618
600
500
550
600
650
700
750
800
850
1 to 5 minutes 6 to 10 minutes 11 to 15 minutes 16 to 20 minutes 21 minutes or more
Return Wait Time
Ind
ex S
core
Significant Problem Incidence
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
11%
9%10%
11%
9%
0%
5%
10%
15%
20%
2006 2007 2008 2009 2010
% E
xper
ien
ced
a S
ign
ific
ant
Pro
ble
m
Top 5 Problems Experienced
2010 2009 2008
Problems with this rental car experience?¹Pick-up process 38% 39% 39%Billing 24% 22% 18%Customer service 20% 22% 22%Return process 20% 15% 15%Vehicle 19% 23% 21%
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
¹Based to those who experienced a significant problem.
How you resolve problems matters!
Source: J.D. Power and Associates' North America Rental Car Satisfaction Study
¹Based to those reporting a problem.²Based to those whose problem was resolved.
*CAUTION: Small sample size (n=30-99).
762
635
694
559526
662
796
888
500
600
700
800
900
1,000
Ind
ex
Sc
ore
550 600 650 700 750 800 850 900Index Scores
Had Significant Problem
Problem Resolved¹
Problem Resolution²
Convenience and comfort consistent with their lives outside of travel
Home, Work, Society
Airport Airline
HotelRental Car
Expectations
Expectations
Rental Car Customer Trends• Green – electric / hybrids• Fractional usage – companies / individuals• Technology integration - personal devices, apps, location
– I want to listen to my music
– I want to use my phone hands free
– I want to use my navigation and other apps
• Customization and individualization (arrange pre-rental)• Address and integrate across the overall travel experience
The bigger picture• How can you better solve customer pain points?• How can you differentiate your product and service?• Technology as key enabler - opportunities and threats• Think expansively
– Reservation
– Pre-arrival
– Shuttle bus / van
– Pick-up
– Rental car
– Customer destination
– Car return
– Post-return travels
Address Pain Points
Examples of innovative thinking
Car sharing; Car Rental Cos; P2P
Point-to-point, boarding process, gate area seating,
outlets….
On-board entertainment options, JFK terminal….
Guaranteed baggage delivery
Air Travel
Room service app
Online check-in, seat selection,
kiosks, alerts, apps, digital boarding
passes
Redefining budget Customer service
Enduring Truths
• You must deliver– each and every customer – each and every time– Product AND Service
• Culture, staff and service as competitive advantage
• Innovation is critical and ongoing– Today’s innovation = tomorrow’s expectation
• E.g., Navigation Systems Integrated into cars Mobile devices– Commoditization
• Continue to find ways to address pain points and add value, convenience, comfort, save time and save $ for your customer
Summary Takeaway
“One of the profound lessons I have learned is that customer satisfaction is a moving target. You can never
declare victory.”
Source: J.D. Power III
Satisfaction – How Every Great Company Listens to the Voice of the Customer
February 2006
Stuart GreifVice President & General Manager, Global Travel and Hospitality
J.D. Power and Associates(805) 418-8661
Matt HollandManager, Global Travel and Hospitality
J.D. Power and Associates(805) 418-8869
Contact