1. HI Membership Makeover: Membership Savings Programme A consistent approach for 2010 and beyond

2. Who are members? People who have purchased the right to stay in HI Hostels on advantageous terms People who have purchased the right to stay in HI Hostels on advantageous terms People who use services provided by HI Member Associations / Hostels People who use services provided by HI Member Associations / Hostels People who benefit from HI People who benefit from HI Loyal people who often use hostels Loyal people who often use hostels An active database of prospects An active database of prospects

3. Why join HI? Global network of hostels in great locations Global network of hostels in great locations Strong global brand Strong global brand Proven standards Proven standards Global discounts Global discounts Belong to a ‘club’ of like-minded people Belong to a ‘club’ of like-minded people

4. HI Membership today In an ideal world… In an ideal world… Members seeking accommodation = number of beds availableMembers seeking accommodation = number of beds available Members all very loyal!Members all very loyal! In the real world… In the real world… More beds than people looking for themMore beds than people looking for them Customers are not all loyal!Customers are not all loyal! Membership implementation variesMembership implementation varies Value of Membership diminishedValue of Membership diminished

5. Why retain membership? It’s all about building relationships It’s all about building relationships We want more loyal customersWe want more loyal customers We want more champions for the brandWe want more champions for the brand We want to raise vital revenueWe want to raise vital revenue It sets HI apart from the competition It sets HI apart from the competition Members share our values and are reminded every time they see their cardMembers share our values and are reminded every time they see their card

6. What is the “Membership Savings Programme”? HI Membership for the 21 st century: HI Membership for the 21 st century: Adds REAL value for HI Members – but does not exclude non-membersAdds REAL value for HI Members – but does not exclude non-members Protects REVENUE for AssociationsProtects REVENUE for Associations A simpler sale/purchase: A simpler sale/purchase: Same rules worldwideSame rules worldwide Customer-focusedCustomer-focused A win-win situation!A win-win situation!

7. Benefits for HI Members Adds REAL value to HI Membership: Adds REAL value to HI Membership: At least 10% saving on accommodationAt least 10% saving on accommodation Discounts on travel, entertainment, activities and more - worldwideDiscounts on travel, entertainment, activities and more - worldwide

8. Member v Non-member HI is a membership organisation HI is a membership organisation Members enjoy Savings with HI:Members enjoy Savings with HI: At least 10% saving on accommodation (all rooms/dorms) compared to non-members At least 10% saving on accommodation (all rooms/dorms) compared to non-members Additional national/local discounts negotiated by national association/hostel Additional national/local discounts negotiated by national association/hostel Non-members have fewer benefits:Non-members have fewer benefits: May still stay in HI Hostels (if National Association policy allows this) May still stay in HI Hostels (if National Association policy allows this) Pay a higher price than HI members (eg: a supplement on overnight cost) Pay a higher price than HI members (eg: a supplement on overnight cost)

9. Membership messages 1 Key Message: Key Message: As an HI Member you will save at least 10% on HI Hostel accommodation costs compared to a non-memberAs an HI Member you will save at least 10% on HI Hostel accommodation costs compared to a non-member

10. Membership messages 2 Supporting messages: Supporting messages: Hostelling International is the only global hostel network that offers membership with enhanced benefits Hostelling International is the only global hostel network that offers membership with enhanced benefits Hostelling International membership gives you discounts on travel, entertainment, activities, museums and more - worldwide Hostelling International membership gives you discounts on travel, entertainment, activities, museums and more - worldwide Hostelling International is the only global network with Assured Standards for hostels Hostelling International is the only global network with Assured Standards for hostels

11. Membership messages 3 Supplementary messages: Supplementary messages: HI Hostels and the Environment: HI Hostels adhere to the HI Environmental Charter, taking great care to operate HI Hostels in ways sympathetic to the environment – please support this during your stay. HI Hostels and the Environment: HI Hostels adhere to the HI Environmental Charter, taking great care to operate HI Hostels in ways sympathetic to the environment – please support this during your stay. HI Hostels and World Heritage: HI works closely with UNESCO and other organisations to support world heritage sites and cities where HI Hostels are located. Let HI Hostels be your passport to adventure and the discovery of world heritage! HI Hostels and World Heritage: HI works closely with UNESCO and other organisations to support world heritage sites and cities where HI Hostels are located. Let HI Hostels be your passport to adventure and the discovery of world heritage!

12. Membership messages 4 Supplementary messages continued: Supplementary messages continued: Enjoy a comfortable stay with HI: All HI Hostels adhere to industry-leading HI Assured Standards – so you can be sure of a comfortable stay wherever you travel with HI. Enjoy a comfortable stay with HI: All HI Hostels adhere to industry-leading HI Assured Standards – so you can be sure of a comfortable stay wherever you travel with HI. Book your stay at www.hihostels.com: Book your stay at www.hihostels.com:www.hihostels.com One booking covers a whole tripOne booking covers a whole trip Pay just 5% deposit – and the balance on arrivalPay just 5% deposit – and the balance on arrival Check out customer ratingsCheck out customer ratings Read hostel reviewsRead hostel reviews Top tips from fellow travellersTop tips from fellow travellers

13. Benefits for Associations Creates/protects REVENUE stream: Creates/protects REVENUE stream: Simplifies Membership sales Simplifies Membership sales Differentiates the HI Brand Differentiates the HI Brand

14. National Cards:National Cards: Generally sold to domestic members Generally sold to domestic members May be sold to foreign guests subject to certain conditions being met May be sold to foreign guests subject to certain conditions being met International Cards: Generally sold to foreign guests without a valid membership Which card to sell?

15. Key Changes Overnight rates: Overnight rates: Communicate non-member pricesCommunicate non-member prices Offer Members a beneficial rate compared to the non-member priceOffer Members a beneficial rate compared to the non-member price Implement across ALL booking channelsImplement across ALL booking channels Simplified membership: Simplified membership: Sell national and/or international cardsSell national and/or international cards Temporary overnight membershipTemporary overnight membership

16. Supporting materials Implementation resources for staff: Implementation resources for staff: PowerPoint presentationPowerPoint presentation User guideUser guide hiway – download materials, join forumshiway – download materials, join forums Promotional material for customers: Promotional material for customers: 10% saving stickers10% saving stickers www.hihostels.com – membership information, global discounts www.hihostels.com – membership information, global discounts www.hihostels.com

17. Implementation From January 2010: From January 2010: National AssociationsNational Associations Training materials delivered by HI Training materials delivered by HI HI expands resources on hiway HI expands resources on hiway National/regional training seminars begin National/regional training seminars begin Implementation begins Implementation begins

18. Implementation During 2010: During 2010: National Association training and implementation continuesNational Association training and implementation continues To be complete in ALL hostels by end 2010 To be complete in ALL hostels by end 2010 HI continues to support implementationHI continues to support implementation Ongoing hiway communications Ongoing hiway communications Development of hiway resources Development of hiway resources CEO Meeting updateCEO Meeting update Formal adoption at 48 th International ConferenceFormal adoption at 48 th International Conference

19. Implementation Latter part of 2010: Latter part of 2010: Customer implementation materialsCustomer implementation materials Delivered via RDCs and hiway Delivered via RDCs and hiway Customer communications commenceCustomer communications commence Phase 1 mid-2010 Phase 1 mid-2010 “10% savings” banners on hihostels.com for hostels where Preferred Access implemented“10% savings” banners on hihostels.com for hostels where Preferred Access implemented Phase 2 late-2010 Phase 2 late-2010 10 savings” message in monthly e-newsletter10 savings” message in monthly e-newsletter “10% savings” message on hihostels.com“10% savings” message on hihostels.com “10% savings” banners for all key hostel“10% savings” banners for all key hostel