Crown Hotel Programme

Transcription

1 Crown Hotel Programme (CHP) Year 2 Kate Wimpeney Director of Commercial Operations

2 Today s Agenda 10:30 Welcome & CHP UK 11:00 International CHP - HRG 11:45 Host hotel presentation & Q&A 12:00 Show rounds of hotel and light lunch provided by venue Showarounds of local hotels arranged Here, Millennium Baileys, BW Cromwell, Park International, Radisson Edwardian Blu Vanderbilt, 13:00 HRG guests depart for shawarounds Return from lunch for Redfern guests

3 Agenda What is CHP, and what are the benefits? The CHP process Minimum standards and other considerations Rate terms Vital statistics How to identify Crown rates On-going management Market performance News from the chains Market predictions Continuous improvement

4 What is CHP? CHP scope was top 75% of locations consolidated spend It s the 1st non-commissionable Government hotel programme It balances consolidation opportunities with volume delivery and coverage RfP once a year, but responsive and ever changing Guarantees a number of rooms available at this rate in busy markets Flexible cancellation terms Breakfast included in most rates (with a few exceptions) mainly serviced apartments & Tune Hotels

5 CHP Benefits For the department Government now buying as one customer Aggregated and volume to ensure lowest rates Consistent rate delivery Focus on key locations Fully supports delivery of Procurement Policy Principals of 75/ 115 Aids budgeting For the traveller Consistency of product Rate expectations met Choice in key areas Flexible terms Good availability Hotels all now familiar with CHP and requirements Fewer payment issues on checkout

6 The CHP Process Data is collated from both agents and the top 75% of common locations form the backbone of CHP Areas specific to only one agents receives key focus Likewise high volume requirements specific to only one department will be identified and incorporated The RfP is issued annually in December so loading can begin as soon as possible in the New Year for minimal downtime Hotels are selected based on rate, minimum standards, rate terms and conditions, and a quantifiable demand has been identified

7 CHP Minimum Standards Lockable door and peep hole or door chain En-suite facilities including shower or bath Tea/coffee making facilities Television and remote control Wardrobe/hanging space Work area and chair Non smoking room Rooms guaranteed for late arrival 24hr security cover and/or procedures 24hr reception/concierge cover Easily accessible dining for breakfast & evening meal Ironing facilities Hair drying facilities Adjustable temperature control/solution

8 Additional criteria Hotels nearest departmental locations are selected where possible Proximity to mainline & tube stations Ensure event lead cities can still support the demand at peak times Value adds and guest comfort - free wifi, food and beverage offers GDS connectivity for instant availability and confirmations is desirable Established relationship with departments is always considered Good track record of service Consistent CHP availability

9 Rate terms and conditions All Crown rates include VAT All Crown hotels have committed to billback to HRG and Redfern If the rates does not say that it includes Breakfast, then it does NOT include Breakfast (for non-crown content) Most Crown rates are cancellation on the day of arrival There are no early departure fees Rates are guaranteed for late arrival There will be some in more remote/rural locations independents that will have less flexible terms

10 CHP Vital Statistics 2159 hotels on the UK programme Across 754 towns and cities 718 hotels are cheaper this year then last Many rates held year 1 to year hotels in London 152 rates 115/< 78 between Over half of Redfern current bookings are booked on Crown rates

11 How to identify a Crown Rate? You can search for just Crown hotels by checking this box on the search screen On the results page the 1 st star indicates a Crown hotel, the 2 nd star next to the rate name indicates Crown rates Always check cancellation policy in the full rate information and ensure if flex is required, flex is booked

12 On-going management Rate audits to ensure good availability Ensure only approved room types loaded Allocation uptake monitored Data share with HRG with allocation redistribution if required Take up any instances of reported payment challenges with hotels/chains Take action with hotel (block for example) if CHP availability is a challenge Remove hotels from programme if measurable complaints received in a short period

13 Top 20 Cities by Nights - Redfern Nights London Manchester Birmingham Leeds Bristol Liverpool Newcastle Sheffield Edinburgh Cardiff Nottingham Croydon Glasgow Southampton Coventry York Reading Plymouth Blackpool Oxford

14 Top 20 Cities by Nights - HRG London Bristol Glasgow Birmingham Portsmouth Edinburgh Cardiff Plymouth Liverpool Manchester Salisbury Farnham Gloucester Leeds Aberdeen Exeter Witney Bournemouth York Blackpool Nights

15 How is CHP Performing? All Locations Market Share ARR Advanced Non- Flex 2% BAR 26% CHP 56% Budget Brands 14% Overall Prices are excl. VAT

16 How is CHP Performing? London Market Share ARR Advanced Non-Flex 2% BAR 21% CHP 49% Budget Brands 28% Provinces Market Share ARR Advanced Non-Flex 2% BAR 27% CHP 57% Budget Brands 15% Overall Overall 63.48

17 How is the market performing? The expected post Olympic slump has not manifested London has sustained the additional bedstock for 2012 Business buoyant, with record occupancies in August Already BOB is for September and October is strong Rates this up in many provincial areas YOY this summer Aberdeen has seen the highest rate increases in the UK Oxford, Reading, Exeter, Peterborough, Worcester and Cambridge remain difficult markets to achieve 75 B&B in Sheffield, Cardiff, Blackpool and Nottingham remain softer

18 The Olympic hangover that never was Jan Feb Mar Apr May Jun Jul Aug

19 News from the chains Travelodge have completed refurbishment at over 80 hotels incl. Covent Garden, City Road, Southwark and Waterloo This summer has seen the opening of 3 new hotels in Bham Hampton by Hilton, Holiday Inn Express and Ibis Styles Premier Inn announce The Hub, a new generation of compact, city centre hotel Accor opened a new Adagio (extended stay brand) in Liverpool Ibis Euston communal area refurbishment complete Travelodge have opened London Vauxhall 148 beds Grange Wellington trial until end Dec 13 London Indigo Kensington opened Dec12

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21 Market Predictions We will not see any softening in the London market now until Jan Hotels in the capital will be looking to increase rates next year to regain ADR 75 will become even more challenging in the key provincial areas that have performed well in 2013 The new openings in Bham, Ncastle, Sheffield, Lpool will see rates remain lower Departments will need to exclude hotels previously used to drive down ARR with some favourites exceeding budget in buoyant provincial locations