Get To A Better Bottom Line
With More "Top Line"
Business Travel Sales Revenue
Maureen Mackey
Executive Director, Worldwide Business Travel Sales
Getting Inspired for 2016
• BTS Process & Timelines
• BTS Tools
• Planning for the Future
BTS Process & Timelines
BTS “Wheel of Fortune”
Q2
RFP Qualifier
Dynamic
Pricing
Q1
Q3
2016 Strategy
RFP Strategy
Planning for
2017
BTS Matrix
Q4
Renegotiations
3rd Parties
BTS Timeline
Voice of the
Customer
Sessions
RFPs
Completed
Rates are
reconciled
and loaded
January
BTS
Account
Planning
for 2016
Wish/Walk
Process Begins
June 4th
Updated
Acct Profile
& Volume
Grids Posted
February
RFP
Qualifier
Training
Calls
March
April
GBTA
Tradeshow
in Orlando
RFP Qualifier
Process
Opens
May 4th
May
Target Account
Webinars
July 25-29
June
July
Acceptances
Announced
RFP
Process
Begins
August
September
Rebid
Process
Begins
October
OnQ SM
Updated
November
December
BTS Tools to Maximize Revenue
The RFP Qualifier Process
What is an RFP Qualifier?
The RFP Qualifier is the process during which your hotel
can submit a business case in order to request an RFP
for a globally managed account
9
RFP Qualifier Process
• Located in OnQ Solicitation Management System
• Opened for Submissions on May 4th
• Conduct sufficient research on targets
• Present benefits along with hotel’s features
• Be Selective...
“Strive for Five”
Dynamic Pricing
What is Dynamic Pricing?
Dynamic pricing, which is also commonly referred to as
time-based pricing, is used by companies to change prices
based on conditions and estimated user demand.
Where is it currently used?
•
•
•
•
•
•
Hotels – chain-wide discounts
Airlines
Online Retailers
Gasoline Stations
Grocery Stores
Utility Pricing
What is Dynamic Pricing?
$400
Best Available
Rate
Static
Negotiated
Rate
Dynamic Discount
$90
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Dynamic Accounts for 2015
Air Products
FNF
Parexel
Altair Global
Applied Materials
Fujitsu
General Mills
Progressive Insurance
Qualcomm
AT&T
Google
Reynolds American
Atkins Global
Illinois Tool Works
SAS Institute
Avon Products
Illumina
Sears Holdings
Blackberry
Kiewit Corporation
Target
BNY Mellon
LDS Church
TD Bank
CA Technologies
Limited Brands
United Technologies
Cameron
Office Depot
Waste Management
Compass
Oldcastle
WR Grace
DirecTV
Oracle
Zoetis & Pfizer
BTS Account Matrix
Data Organization
Displacement
Value
Weighting:
Score
80%
COST
CONTRIBUTION
Y AXIS
X AXIS
Rate Inclusives
(Required)
Value
Wtd.
Avg.
Score
20%
Wtd Avg
CNR to BAR
(Pref. Hotels)
Value
100%
Score
60%
YOY Contracted
Rate Growth
Value
Score
20%
Avg. LOS
Value
Score
20%
2014
Rmnt
Volume
Characteristics
• high revenue / low cost
• below avg. displacement
• strong BAR achievement
• low revenue / high cost
• low BAR achievement
• very high displacement
• high revenue / high cost
• high displacement, but strong BAR
achievement and YOY rate growth
COST
• low revenue / low cost
• low displacement, fewer asks
• low BAR achievement, but solid YOY rate
growth
CONTRIBUTION
COST
Possible Actions
less aggressive
rate
Multi-year %
rate increases
aggressive rate
growth
reduce
inclusives
CONTRIBUTION
performance
incentive
Flexible pricing /
manage pattern
Developing your Pricing Strategy
• What the customer is actually paying
• Displacement Analysis
• Day of Week
• Length of Stay
• Incremental Revenue
2016 RFP Process
3rd Parties and the RFP Process
• May bypass HWS to get what they want
• Success is measured by keeping increases to a minimum
• 3rd Parties brag of a “75% Success Rate” when going direct
• Don’t allow direct contact to cause a sense of panic
• Stay the course!
Additional Resources
Interested in learning more about
Business Travel Sales?
Enroll in our on-line learning modules in
Hilton Worldwide University
BTS 101 – Course ID # - 3850
BTS 201 - Course ID # - 275301
And, Remember,
It’s never too early to...
Start Planning for RFP 2017!
Thank You!