Tim Peter Cendant Hotel Group Using the Internet to Engage Consumers

Agenda Why Cendant Hotels?Why Cendant Hotels? Why focus on engagement?Why focus on engagement? What is CHG doing?What is CHG doing?

Cendant Hotel Group

Hotel Group booked 4.3 million rooms by telephone, 8.3 million rooms by e-commerce and 2 million by global distribution systems in 2005Hotel Group booked 4.3 million rooms by telephone, 8.3 million rooms by e-commerce and 2 million by global distribution systems in 2005 Hotel Group overview

Brand Web sites Hosted 40 million unique visitors in 2005 who booked +$300 million in gross revenueHosted 40 million unique visitors in 2005 who booked +$300 million in gross revenue Largest central reservations channelLargest central reservations channel Third-party recognitionThird-party recognition Most visited hotel Web sites (comScore, March 2006)Most visited hotel Web sites (comScore, March 2006) Lodging Hospitality 2002 Chain Leadership Award for Technology for booking engine redesignLodging Hospitality 2002 Chain Leadership Award for Technology for booking engine redesign

Why engagement matters Loyal and engaged customersLoyal and engaged customers –Stay more often – up to twice as many purchases (nights) –Spend more money –Shop around less

Consumers shop mercilessly Consumers seek valueConsumers seek value –Customers start their research on a travel aggregator site Aggregators serve as search enginesAggregators serve as search engines Property sites (ideally) serve as ‘find 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 trustCollection of brands that they trust Location/proximityLocation/proximity Price/valuePrice/value –Objective information –Amenities offered –Definitive quality ratings Will I like it when I get there?Will I like it when I get there?

Travelodge

Travelodge Search

Property Merchandising – Before

Property Merchandising – After

E-Commerce engagement Think about the end useThink 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 questionsAnswer the consumer’s questions Price/valuePrice/value –Allow consumers to easily assess value of product –Ensure objective view of information –Clearly define quality for consumers in their terms

Friend or foe?

Tim Peter Director, Internet Product Development Cendant Hotel Group

RSS – F riend? Provide greater distributionProvide greater distribution Require guest to care enough to engageRequire guest to care enough to engage Keep brand in front of guestKeep brand in front of guest

RSS – Foe? Is this the right way to represent a brand?Is this the right way to represent a brand?