Company Presentation Development 2016 - Cenk Ercins
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Company Presentation Development 2016
Corporate Overview
Introduction Louvre Hotels Group has become one One of Europe’s most of the largest hotel chains in the world dynamic players Louvre Hotels Group is a Groupe du Louvre subsidiary run Louvre Hotels Group is harnessing its geographic breadth, by Pierre-Frédéric Roulot. It was established in 1976 and comprehensive brand portfolio and team expertise to joined the Starwood Capital Group investment fund in 2005. consolidate its presence in Europe and venture into target territories such as Russia, Morocco, India, Brazil, Louvre Hotels joined forces with the Golden Tulip the Middle East and China. Hospitality Group in July 2009, when Starwood Capital took over the latter. It now counts more than 1,150 hotels Louvre Hotels Group establishments can be broken down ranging from 1 to 5 stars (6 brands) in 48 countries. into three categories: 22% fully-owned hotels (managed by Louvre Hotels), 29% hotels run under a management Since March 2015, Louvre Hotels Group is owned by Jin agreement (operated by Louvre Hotels Group within the Jiang Group, China’s first hospitality conglomerate, owner, framework of a hotel owner’s mandate) and 49% hotels run developer and operator of hotels across all market as a franchise (managed by the owner). segments. Thanks to this partnership, the group now owns, operates and franchises over 6,000 hotels and over 640,000 rooms in 55 countries, thus making it the 5th international hospitality group. Key figures for Louvre Hotels Group • 6 brands, ranging from 1 to 5 stars • 1 158 establishments in 48 countries • 97 339 rooms • 19 000 employees Figures on 01/01/2016 3
Introduction – Louvre Hotels Group United Kingdom 19 hotels Benelux 1,652 # 61 hotels 4,773 # Germany Poland 16 hotels Austria 18 1 hotel hotels 1,903 # 87 # 1,914# Hungary 1 hotel France 121 # Portugal 3 hotels 832 hotels 203 # 54,810# Switzerland Romania 1 hotel 5 hotels 61# 457 # 5th international group Spain Bulgaria ≈ 6,000 hotels with 8 hotels 1 hotel 640,000 rooms 942 # Italy 8 hotels 90 # 1199 # Europe : 979 hotels with Serbia Cyprus Malta 1 hotel about 69,600 rooms 1 hotel 2 hotels 97 # 327 # 263 # Première Classe Campanile Kyriad Tulip Inn Golden Tulip Royal Tulip Figures on 01/01/2016 Budget Economy Mid-Scale Up-Scale Luxury 4
Introduction - Jin Jiang Group A state controlled company, listed on the Hong Kong and Shanghai stock exchanges. First hospitality group in China and Asia ▪ 1 700 hotels over 11 countries in Asia ▪ 250 000 rooms ▪ New to come : - The Shanghai Tower (632m/2073ft high, 121 floors) will include the first ultra luxurious Premier category J Hotel (84-110 floors, 258 rooms). Opening 2016. - Shanghai Disney Resort. Opening 2016 Other activities: ▪ Transport: Rental car company (10,000 vehicles ) ▪ Logistics: largest cold storage capacity of 500,000 m² in Shanghai ▪ Travel: 3rd travel operator in China (70 travel agencies) ▪ F&B: 480 food and restaurant outlets (owned and franchised) Long term owner with well-established knowledge and expertise in the Hospitality sector Strategic actor in Asia, US and Europe 5
A worldwide network Russia 3 hotels Central Asia 3 hotels Europe 979 hotels North America 1 hotel Middle East 62 hotels Asia Pacific 56 hotels South America 40 hotels Africa 14 hotels 6
Do, dare, dream… Do… Firstly, this "do" culture of action, in-the-field and concrete work, is what drives us every day. It is an ability to act quickly and effectively while providing the top level service that builds our strength and unique character. Dare… We are also characterized by a certain form of audacity, of non-conformism even, a different approach to the hotel trade. I can feel it in our management style, our short-structured operating methods, in the variety of our offers, in the wealth of our brands. We should continue to dare, invent, remain agile and uphold our challenger's spirit. Dream… We are convinced that the expression of our long-term forward-thinking, fuelled by a dream and even certain idealism, will give us the leading edge. 11
The Brands Première Classe Slogan: “The essential for a good stay” 259 hotels Launched in 1989 1 or 2 star* hotels with standardized concept 18 775 rooms Limited service hotels offering good value for money 6 countries 66% of hotels are managed by Louvre Hotels (including 22% owned) Campanile Slogan: “Change the way your stay” 377 hotels Launched in 1976 3 star* hotels with standardized concept 24 935 rooms Full service hotels, including restaurant & meeting rooms 8 countries 77% of hotels are managed by Louvre Hotels (including 47% owned) Kyriad Slogan: “More comfort, less conformity” Kyriad Prestige Launched in 2000 and 2003 respectively 251 hotels 3 and 4 star* hotels, mostly located in France 15 796 rooms Non standardised product 2 countries Kyriad is primarily a franchise brand (6% owned hotels) Figures on 01/01/2016 * International star rating 12
The Brands Tulip Inn Mid-scale hotel : 3 star* property (created in 1993) Non standardised hotels 87 hotels Comfortable and functional accommodation along with 9 163 rooms friendly service 28 countries Hotels designed to offer an exceptional value for money Golden Tulip Upper-scale hotels : 4 star*property (created in 1962) Full service hotels, incl. restaurant & meeting rooms 164 hotels Modern facilities, personal service and international 22 996 rooms standards of comfort 37 countries Non standardised product Royal Tulip Luxury hotels : 5 star* property (created in 2006) Non standardised product: security, exclusivity and 19 hotels discrete excellence 5 320 rooms Elegant and luxurious facilities with a deluxe level of 12 countries comfort and refined services, and ultra-modern amenities Figures on 01/01/2016 * International star rating 13
Louvre Hotels Group in images 14
Louvre Hotels Group in images 15
An ambitious development strategy 44% of the Group’s hotel rooms are located outside France, up from 10% in 2007 65 hotels (7 967 rooms) opened in 2015 of which 34 management agreements. Ambitious growth plan targeting more than 100 new hotels next year. Louvre Hotels has already 59 hotels in the pipeline for 2016. Strong growth is coming through the Golden Tulip brand in international market. NUMBER OF ROOMS OPENED EACH YEAR SINCE 2010 12000 10000 NUMBER OF ROOMS 8000 6000 4000 2000 0 2010 2011 2012 2013 2014 2015 16
An ambitious development strategy Louvre Hotels and Magnuson Hotels partnership In order to benefit from the increasing exchanges between Europe and North America, Louvre Hotels Group and Magnuson have sealed a partnership in June 2015, thus creating the biggest distribution platforms on their respective markets. With Jin Jiang, who will be interconnected with Louvre Hotels’ reservation system, the platform will be worldwide. Magnuson Hotels is America’s fastest growing brand and the biggest independent hotels group in the world. • Magnuson aims to provide guests with professional, comfortable, and economy hotels. • In 2015, Magnuson operates more than 1 000 hotels mainly in North America (US, Canada, Porto Rico, Bahamas) • 150 of these hotels are opened three different brands : - Magnuson Grand Hotels : upscale level hotels and resorts - Magnuson Hotels : mid-priced to upper scale hotels and resorts - M Star Hotels : Economy and upper economy hotels 17
Focus on Selected Markets Europe 2nd Largest Morocco China 2nd Largest Largest MENA Indonesia rd 3 Largest Largest East Africa Largest Brazil 3rd Largest Figures on 01/01/2016 18
Total Openings 2015 Other Europe France 2015 : 13 hotels 2015: 1,581 # 19 hotels 1,761 # Asia Pacific Africa 2015 : 2015 : 23 hotels 3 hotels 3,359 # 354 # South America Middle East & North Africa 2015 : 4 hotels 2015 : 654 # 3 hotels 258 # Tulip Inn Andora Delfos Kyriad Desa Gumatti Bogor Andorra Golden Tulip Marseille centre Indonesia 180 rooms Golden Tulip M Hotel Seoul France 150 rooms 210 rooms South Korea Figures on 01/01/2016 430 rooms 19
Recent Hotel Openings FRANCE FRANCE 2014: 2015: 23 new hotels 19 new hotels 1,632 rooms 1,761 rooms Kyriad Prestige Pau Zénith 57 rooms Première Classe Laval 98 rooms Campanile Clermont Ferrand Centre 96 rooms Golden Tulip Marseille Aéroport 106 rooms Figures on 01/01/2016 since Sept. 2014 20
Recent Hotel Openings OTHER EUROPE OTHER EUROPE 2014: 2015 : 2 new hotels 13 new hotels 187 rooms 1,581 rooms Golden Tulip Amsterdam Riverside 132 rooms Première Classe Hannover 74 rooms Première Classe Berlin - Dreilinden 105 rooms Figures on 01/01/2016 since 2013 21
Recent Hotel Openings SOUTH AMERICA SOUTH AMERICA 2014: 2015: 2 new hotels 4 new hotels 360 rooms 654 rooms Golden Tulip Colinas Brazil 126 rooms Tulip Inn Campos dos Goytacazes Brazil 160 rooms Figures on 01/01/2016 Since August 2014 22
Recent Hotel Openings AFRICA MIDDLE EAST 2015 : 3 new hotels 2014: MIDDLE EAST & NORTH AFRICA 354 rooms 6 new hotels 2015: 576 rooms 3 hotels AFRICA 258 rooms 2014: 4 new hotels 641 rooms Tulip Inn Altaif, Taif Saudi Arabia Golden Tulip Essential Lagos Airport 84 rooms Nigeria 75 rooms Golden Tulip La Palisse Kigali Nyamata, Rwanda 189 rooms Figures on 01/01/2016 since 2014 23
Recent Hotel Openings ASIA PACIFIC ASIA PACIFIC 2014: 2015: 12 new hotels 23 hotels 1,898 rooms 3,359 rooms Golden Tulip Manali India 43 rooms Golden Tulip M Seoul, South Korea 430 rooms Golden Tulip Essential, Pattaya, Thailand 98 rooms Figures on 01/01/2016 since 2014 24
Partnership Models
Partnership Models To hotel owners, Louvre Hotels Group proposes 2 types of partnerships. 1 - Franchise agreement 2 - Management agreement Franchise services Franchise services + Management and operating assistance 26
Partnership Models - Franchise Through a Franchise agreement, the owner manages the hotel by his own, but benefits from the following services provided by Louvre Hotels Group 1 •The hotel can use one of the Louvre Group brands: hotel signalization, corporate and Brand commercial brochures as well as operational guidelines & manuals, access to the training courses, etc… 2 •The hotel benefits from the global marketing and communication campaigns made by Louvre Hotels Group worldwide. Our national and international sales teams are contracting with large Sales & Marketing corporate and leisure accounts, and participates in all major industry events and tradeshows, thus representing all hotels in the network. 3 •The hotel is part of the centralized reservation system and benefits from all distribution Information System channels and information systems of the Group, including the corporate websites. In addition each hotel has a dedicated hotel website. 4 •Louvre Hotels Group provides quality control of the hotel in order to ensure respect of the Quality brand standards. A system of mystery guests is deployed to test the quality of product and service regularly. 5 •Under Franchise agreement, a dedicated regional area manager from Louvre Hotels Group is Operations assigned to each hotel to support the operational team on management and operational issues. The regional manager visits each hotel on a regular basis. 27
Partnership Models - Management Through a Management agreement, the hotel owner benefits from all Franchise services, plus is supported by Louvre Hotels Group team in the daily operations and commercialization of the hotel. 1 •Personnel management, including selection, hiring, training, assignment, transfer or dismissal of the General Manager of the Hotel. HR Management •Assistance in hotel staff management, including recruitment, salaries, benefits and compensation definition •Supervision of social issues and general social context 2 •Operational training developed and presented by Louvre Hotels Group executives, mainly on the products, hospitality activities and systems of the Group. Training •Support for additional training by functions (finance, quality, reservation) through a large catalogue of available trainings 3 •Technical support and management of the legal issues •Negotiation, preparation of the corresponding legal documents and signature of contracts Legal Support •Initiation of any lawsuits or other appropriate legal actions directly related to the operation of the hotel when necessary 4 •Annual Plan drafting Finance Support •Analysis of financial and marketing reports and financial reporting to the owner 28
Partnership Models - Management 5 •General organisation of the Hotel •Determination of the purchasing policy: selection of goods and materials; setting-up and maintenance of all inventories required for the proper operation of the Hotel; selection of suppliers and negotiation of supply contracts in order to ensure that purchases are made on Operation Support the best available terms •Participation in the purchasing and procurement services of Louvre Hotels Group •Quarterly meeting between Louvre Hotels Group operating team and the Owner to discuss all relevant running matters regarding the operation of the Hotel 6 Pricing & Revenue •Determination of all prices, charges and rates, and in connection therewith, the supervision and control of revenue and income’s collection for all services related to the Operation Management department of the Hotel 29
Partnership Models - Management 7 •Inspection of the Hotel by specialists in hotel management, maintenance and/or technical, finance or Quality legal affairs (including , but not limited to, rooms, food and beverage management, marketing, Supervision laundry, personnel, finance, accounting and audits, insurance and legal issues, engineering, architecture) 8 •Direct assistance in establishing the annual marketing plan of the Hotel, including definition of the sales policy, definition of the advertising policy, preparation of advertising documents and brochures in accordance with Louvre Hotels Group templates, determination of yearly objectives regarding Sales & occupancy, rates, revenue, clientele; determination of credit practices Marketing Support •Setting-up of sales methods and procedures relating to the various clientele segments and analysis of results. •Specific regional marketing actions performed by Louvre Hotels Group regional team 30
Advantages of a Partnership Direct impact from internal marketing campaigns and corporate sales efforts Marketing campaigns, loyalty programs, sales A recognized and respected brand worldwide representation, international exposure Strong core values Broad multimedia exposure across the world Dedicated staff trainings A Training Academy providing local hotel staff with high- Expertise and track record level hospitality and functional trainings Over 50 years of hotel operations experience More than 1 100 hotels in 46 countries High-quality standards An ambitious worldwide expansion plan supported Brand standards are implemented to maintain Louvre by financial means Hotels Group position of quality brand provider Constant growth of portfolio Quality Assurance and brand manual are available to help the hotel achieve its goal. Strong focus on international development A tangible and close support to the operational Global company, local presence and expertise team Expertise and global tools developed at central level to Direct assistance on the support functions, such as HR support each hotel operation and performance management, Finance, Legal, Procurement Local teams to better understand each market and local Operational support to improve hotel’s operational and culture, and better support hotels in each region financial performance Local marketing plan defined per region Efficient fully-integrated reservation systems Proven results Counting with the most powerful reservations systems Louvre Hotels Group commercial value drivers (sales, connecting your hotel to global distribution systems, marketing and reservation tools) add measurable value call centers, e-commerce website bringing significant growth in revenue. 31
A choice of 6 brands from 1 to 5 star 32
The Brands
Summary of our Brands Kyriad + Kyriad Brand Royal Tulip Golden Tulip Tulip Inn Campanile Première Classe Prestige Logo International Standards, Local Flavours More Comfort, Less Change the way you The essential for a Hotel Description Full service luxury Upscale comfort with Uncomplicated and Conformity stay good stay accommodation local flair convenient Star Rating Luxury Upscale Midscale Midscale Midscale Economy International N# of Hotels 19 Hotels 164 Hotels 87 Hotels 251 Hotels 377 Hotels 259 Hotels N# of Rooms 5,320 Rooms 22,996 Rooms 9,163 Rooms 15,796 Rooms 24,935 Rooms 18,775 Rooms N# of Countries 12 Countries 37 Countries 28 Countries 2 countries 8 Countries 6 Countries Hotel Design Non-standardised Non-standardised Non-standardised Non-Standardised Standardised Standardised Data as per 01/01/2016 34
The brands Tulip Inn
International standards, local flavours Created in 1993, Tulip Inn hotels are 3 star* properties in convenient locations, usually in city centers or close to major access routes. Each hotel offers its own individual character, whilst reflecting the flavours of its location. A growing international network in 27 countries 87 hotels More than 9,160 rooms Brand proposition: Comfortable, Welcoming, Value for money The functional hotel lay-out and friendly service will suit the business traveller and leisure guest alike. All hotels are designed to offer business and leisure travelers an exceptional value for money. Hotels are non-standardized Figures on 01/01/2016 36
Gallery 37
Tulip Inn Key Features 3-star “plus” full-service hotel Minimum of 60 rooms Minimum room size : 18 m² including bathroom Estimated GFA: 32-34 sqm per room (depending on project) Air-conditioning required Flat-screen TV with choice of international channels + Pay-TV Free wireless internet access throughout the hotel Restaurant and bar area depending on location. Can be fitted with the Branch concept but flexible to interpretation in line with the local environment Meeting rooms optional depending on local market. “Simply Meet” concept (flexible and fully equipped) Secure private parking would be recommended in suburban locations. Business corner in the lobby Leisure facilities are optional Tulip Inn can be divided into 2 types of properties: Typical Tulip Inn room lay-out Hotel: short stay business or leisure Suites: long stay for business guests in city centre 33.5€ RvPAR 38
Tulip Inn Bedrooms & bathrooms Efficient and functional design Young but timeless look and feel Use of natural materials Functional large working area with adequate lighting Flat screen TV and internet access in the room High quality showers rather then baths Composed by flexible elements so that the guest can easily arrange the room to fit its needs 39
Food & Beverage concept The Branche concept has been specifically designed for the Golden Tulip Hospitality Group and was shaped to offer our guests a place where they can feel comfortable at any time. Branche is a turnkey concept which can be adapted on every market and is mainly inspired by nature with relaxing and comfortable furniture. It traditionally displays 3 open but identifiable modules: a restaurant, a bar and a lounge. The restaurant offers both international classics and local specificities revisited in an healthy style with essential elements in every restaurant: Different type of tapas Classic dishes Gourmet desserts Branche Lounge Concept Branche Bar, Golden Tulip Warsaw Branche Restaurant, Golden Tulip Essential Denpasar 40
Celebrating diversity Tulip Inn Zaragoza, Spain Tulip Inn Marne la Vallée, France Tulip Inn Rotterdam, Netherlands 41
Tulip Inn in Images Oman, Muscat 42
Tulip Inn in Images Savassi, Brazil 43
Tulip Inn in Images Denpasar, Indonesia 44
The brands Golden Tulip
International standards, local flavours Created in 1962, Golden Tulip is a brand of 4 star* properties by means of modern facilities, personal service and international standards of comfort. Each hotel offers its own individual character, whilst reflecting the flavours of its location. Core brand of the “Tulip” family 164 hotels More than 22,990 rooms In 35 countries across Europe, the Middle East & Africa, the Asian Pacific Region and the Americas Brand proposition: Excellence, Authenticity, Comfort The hotels enjoy perfect situation in business or leisure destinations, aiming to exceed guest expectations. Figures on 01/01/2016 46
Gallery 47
Golden Tulip Key Features 4-star full-service hotel Minimum of 60 rooms Minimum room size : 22 m² including bathroom (33m² for Suites) Estimated GFA: 36-38 sqm per room (depending on project) Air-conditioning required Flat-screen TV with choice of international channels + Pay-TV Free wireless internet access throughout the hotel Mini-bar International press on offer Restaurant and bar area with the “Branche” concept but flexible to interpretation in line with the local market environment Meeting rooms optional depending on local market. “We’ll meet again” concept (flexible and fully equipped) Executive lounge and business center At least one leisure or extra service offered (fitness, tennis, spa, pressing, etc….) Secure private parking required Golden Tulip can be divided into 3 types of properties: Typical Golden Tulip room lay-out Hotel: short stay business or leisure Resort: short or long stay leisure Suites: long stay for business guests in city centre 48
Bedrooms & bathrooms Golden Tulip Elegant & luxurious design with modern but classic look and feel Use of natural materials and colors Functional large working area with adequate lighting Flat screen TV and internet access throughout the room High quality bathroom fit out, spacious and clean atmosphere Composed by flexible elements so that the guest can easily arrange the room to fit its needs. 49
Food & Beverage concept The Branche concept has been specifically designed for the Golden Tulip Hospitality Group and was shaped to offer our guests a place where they can feel comfortable at any time. Branche is a turnkey concept which can be adapted on every market and is mainly inspired by nature with relaxing and comfortable furniture. It traditionally displays 3 open but identifiable modules: a restaurant, a bar and a lounge. The restaurant offers both international classics and local specificities revisited in an healthy style with essential elements in every restaurant: Different type of tapas Classic dishes Gourmet desserts Branche Lounge Concept Branche Bar, Golden Tulip Warsaw Branche Restaurant, Golden Tulip Essential Denpasar 50
Celebrating diversity Golden Tulip Millénaire - Saint-Priest Lyon Golden Tulip Opera de Noailles Paris Golden Tulip Farah Casablanca 51
Celebrating diversity Golden Tulip Brussels Airport Golden Tulip Le SIlmandé, Burkina Faso Golden Tulip Connext, Belém, Brazil 52
Golden Tulip in Images Cannes, France 53
Golden Tulip in Images Farah Tanger, Maroc 54
Golden Tulip in Images Paris France 55
Golden Tulip in Images Noordwijk, The Netherlands 56
Golden Tulip in Images Accra Ghana 57
Golden Tulip in Images Rio Vermelho, Brazil 58
Golden Tulip in Images Seminyak Bali, Indonesia 59
The brands Royal Tulip
Created in 2006, Royal Tulip encompasses 5 star properties offering the most elegant and luxurious facilities with a deluxe level of comfort and delicate service. Brand proposition: Rare, Faultless, Discerning An exclusive group of hotels: 19 hotels 5,320 rooms Situated in gateway city centres and business districts, all hotels are equipped with ultra-modern amenities to ensure an exceptional stay. Royal Tulip hotels also provide inspired gourmet dining outlets that offer guests a truly unforgettable culinary experience. Royal Tulip hotels provide the discerning traveller with security, exclusivity and discrete excellence. Figures on 01/01/2016 61
Gallery 62
Royal Tulip Key Features 5-star full-service luxury hotel with state of the art equipment Minimum of 60 rooms Minimum room size : 26 m² including bathroom (39 m& for Suites and 78 m² for Royal/Presidential Suites) Minimum of 20% baths and bath + shower in the suites Air-conditioning required Flat-screen TV with choice of international channels + Pay-TV Free wireless internet access throughout the hotel Mini-bar International press on offer Iron board with iron, coffee & tea making facilities Restaurant concept can be chosen from any of the Golden Tulip concepts or defined in line with local market and hotel design Executive lounge and business center At least three leisure or extra services offered (fitness, tennis, spa, golf, pressing, hairdresser, etc….) Secure private parking required 63
Bedrooms & bathrooms Royal Tulip Design inspired, deluxe interior Lush and elegant, but reserved and calm Use of natural tones and ingredients Spacious room, but not too empty High technology with smart features Inviting, natural bath room giving each guest an individual spa experience 64
Royal Tulip in Images Alvorada, Brasilia Brazil 65
Royal Tulip in Images Almaty, Kazakhstan 66
Royal Tulip in Images Zhujiajiao, Shanghai, China 67
Advantages of a Partnership Louvre Hotels Group Offers
Our Commitment Our mission is to be the leading multi- branded hotel chain, with an excellent care for customers and staff, in those markets where we choose to operate Therefore, the group's common objective is to maximize revenues and profits for our hotels by utilizing all opportunities and synergies the chain offers and through full implementation of the brand formula. Louvre Hotels Group is fully committed to build a strong and efficient partnership with hotel owners, helping them to develop their business In order to do so, we deploy a full set of offers and actions for the benefit of each hotel. 69
Franchise package: a toolbox to be used by the hotelier Quality Brand Distribution SOPs channels Support functions 70
Advantages of a Partnership Distribution channels
Distribution Landscape Payment of commissions Applications RFP Tool Brand Sites Internet Call Centers GDS Direct Connect 72
Value Drivers GoldRes GoldRes is the most comprehensive worldwide reservations system offering access to all major GDS systems and Utell voice reservations centers worldwide, as well as giving you the opportunity to apply sophisticated yield management techniques to maximize business Goldres is Golden Tulip’s central reservation system for all distribution channel • Global distribution systems (GDS) • Call centres • Internet Through Goldres, all hotels are exposed to • Over 1.000.000 travel agent terminals, • 1.500 Internet sites and travel agency portals, • 700 partner websites and • 45 call centers around the world. The benefits • Update rates & availability immediately in one platform • Real-time availability • Dynamic reports for revenue and rate analysis 73
Value Drivers GoldRes Goldres = Innovations Pegasus, the system on which GoldRes is built, has been in the past shareholder of the Golden Tulip chain. This privileged relationship allows Golden Tulip to be at the forefront of technology, to benefit from new innovations and to test systems from Pegasus. Golden Tulip has created a strong brand image within the travel trade and with bookers, being the first hotel chain to: Offer instant connectivity of rates and availibility with GDS Guarantee rate parity across all channels Offer « total pricing » strategy Offer flexible pricing structure and clear commission indicators Total Pricing Seamless cancellation policy Commission indicator 74
Websites & E-commerce General Public Corporate web site + 5 dedicated brand websites presenting the network Cross-brand reservation service which enables the customer to see the maximum number of offers close to his/her destination Driving directions which enable the user to organise a trip and receive a personalised map A maximum number of special offers only available on the web Corporate web site Professionals An innovative and high-performance B2B website Secure access to negotiated individual rates Possibility to request an on-line quotation Presentation of our full offerings, organised by customer segment New Brand websites since May 2014 75
Smartphone application “Hotel For You” for iPhone, Blackberry and Smartphone Book your hotel room from your mobile device in real time at the best available rate…all in only 4 clicks ! 5 features to gain time: Find the nearest hotel instantly thanks to geo- localisation Check availability in real time and get the best available rates Discover all the characteristics and available services of your hotel (address, pictures, route description) Check on the map the most direct itinerary to get to the hotel Save your favourite hotels in personalised lists 76
Loyalty program Ambassador Club The Golden Tulip Ambassador Club is the company’s own loyalty scheme for bookers of corporate room nights and business meetings. The programme is specially designed to reward people in charge of accommodation or meeting reservations. The member database of the Golden Tulip Ambassador Club offers the hotels an excellent communication tool, whilst providing a tool for optimizing client retention 77
Loyalty program Flavours Flavours is Golden Tulip’s loyalty program for frequent guests, in which they save points for the monetary value of their bookings. Points can be redeemed for hotel stays or exchanged for frequent flyer Miles of airlines partners and gifts through the Flavours gift Shop 78
Loyalty program Connections The Golden Tulip Connections program provides access to the members of 9 frequent flyer loyalty programs by allowing members to collect bonus miles when staying at a Golden Tulip or Tulip Inn hotel and vice versa allowing Golden Tulip to offer special offers and promotions to these members via the frequent flyer publications. 79
Corporate Offering A dedicated sales team to help companies make the most of their professional trips. A dedicated B2B internet site: http://b2b.louvrehotels.com World-wide key account contracts Helho Pro: a payment card and a management tool for companies to help them optimise travels expenses and avoid loosing time (centralized payments across the whole network, invoice dematerialization). Seminars: to help companies organise their business meetings in France and Europe, we provide a fully-dedicated team for: 600 destinations, 20 to 200 guests staying full-board or half-board, or for day-seminars. Special reductions and programs for associations and corporate events. 80
Leisure Offers A European team specialised in the management of individual customers or groups Group offers Central reservations team which pays attention to your requirements for over 600 destinations in Europe (Paris, Warsaw, Barcelona, Loire Valley, etc.) Tour operators and coach companies: we welcome your groups of 20 to 200 guests in our hotels most of which have their own car parks and are located close to main road connections. Sports offers For your individuals and teams’ sports trips, the “Welcomsport” program offers numerous advantages (www.welcomsport.com) Dedicated rates or retrocession of part of expenses at the end of the season Specific services Program available for Campanile, Kyriad and Kyriad Prestige 81
Value Drivers Central Meeting Line Golden Tulip’s Central Meeting Line is a reservation service to facilitate the booking of meeting facilities at hotels. Specialized booking agents assist personally in identifying the hotel facilities that best meet the needs and criteria of the booker. The special needs per booker are registered and stored to facilitate future bookings. 82
Value Drivers Leisure Marketing Leisure Marketing Golden Tulip’s Leisure Marketing develops and launches promotional packages and rates towards the leisure guests Prepay & Save Stay more, save more American Express Offers These offers are promoted through the Golden Tulip channels (website, e-newsletters, hotels), through printed advertisements and through partners 83
Quality
Quality Program In order to safeguard the consistence of the brand across the network, Golden Tulip has a contract with BDRC for several years The UK based BDRC is the largest independent agency specialised in hotel consultancy and quality audits. The firm realizes assignments in more than 50 countries across all hotel categories. Based on these results, in each region one hotel is awarded “Hotel of the Year”. 85
Quality Program How it works Each hotel is visited by a Mystery-Guest every year and receives a very detailed report stating all the quality check-points verified during the visit This report comes together with an audio-tape of the telephone contact during the reservation The visit is then followed up by an in-depth interview with the Franchise Service Manager or Regional Operations Manager to define the action plan put in place, to improve the non-performing issues Subject to two negative quality reports where a hotel achieved below average score, the hotel risks being excluded from the network 86
Support functions and SOPs
Value Drivers Marketing tools Hotels and regions can benefit from different tool kits enabling them to promote either the chain, one of our brands, a specific hotel, any promotion… Personalized materials (hotel brochure, factsheet…) Printed materials (Hotel directory, chain posters…) Templates for guideline (advertising….) Moreover, the Marketing department circulates newsletters every two months in 6 different languages to promote the hotels, offers or destinations. Newsletters are being sent to large client base, segmented as follows Corporate Leisure Ambassador Club Members Flavours Members 88
Value Drivers Operational value drivers Monthly reporting reports Golden Tulip provides hoteliers Golden Tulip offers various cost extensive hospitality technological saving possibilities such as solutions and recommendations agreements with credit card and simplifying procedures and insurance companies. increasing effectiveness of Furthermore the central operations procurement system offers Technological developments made competitive prices for food and available for hotels include: non-food items from global Preferred agreements with suppliers through chain-wide selected third party vendors collective agreements Revenue management systems Property management, rate comparison systems (Internet rate Tracking software) Search engine optimisation Brochure production software 89
Support Systems Support Dedicated Franchise Service Manager Commercial Business Support Sessions Continuous Business Analysis Coordinated Sales Support Activities Toolkits and manuals Golden Tulip Training Academy On-line access to all materials and systems via GoldNet Golden Tulip’s FSMs Training in Paris on February 2014 90
Brand standards and Operating procedures Brand standards and procedures Each hotel has direct online access to internal operating procedures and brand standards Ledesk.com to access SOPs 91
Dedicated teams & tools for hotel management Strategy and action plan elaboration A weekly newsletter on business with LHG support teams (Sales, news: “l’Actu” Marketing, Pricing, HR, Purchase) Supervision and support for food Revenue Management safety: instruction manual and audits Cost control and financial reporting Budget & Accounting 92
Louvre Hotels Group University In 2012, Louvre Hotels Group launched its new corporate university, called U, in order to promote the integration of the Group’s 19,000 employees worldwide and to improve their skills, using increasingly innovative teaching methods. Teaching 100% of employees every year using innovative & entertaining methods: From the basic trades all the way to advanced expertise, every one at Louvre Hotels Group beneficiates from a personal training adapted to its needs and tailored for its individual career path. Trainings focused on innovation in the hotel & catering industry: In keeping with Group strategy and priorities, U is committed to training its employees for the changes in the hotel & catering professions and to open up all of the programs and courses to its franchised partners. U provides bespoke programs that aim to cover all of the new skills sets: Revenue Management, Distribution, Sales, Customer Relations In order to facilitate everyone’s progress, U also dispenses comprehensive learning courses, such as: Integration courses like “Fast & Curious” for young graduates who want to become Hotel Managers; Qualifying courses , like the “Operations Assistant Professional Qualification Certificate”; Learning paths to enhance employee skills and progress within their position like “One Step Beyond”, which successfully trains about thirty Hotel Managers every year with a 95% success rate. 93
Revenue Management Diagnosis Alarm Expertise Diagnosis of the hotel Monitor the rate Advocate a pricing situation & needs positioning strategy for hotel Provide assistance Supervise rate Audit for hotels in and training on the parities and opening difficulties use of RM tools of channels Provide a monthly Support for the The use of inventory report with various implementation of restrictions statistics budgets The use of promotion Provide recommendations and answer any questions (dedicated E-mail box) Revenue Managers make diagnosis of hotel situation and then intervene as trainer, alerter and expert. 94
Purchase PURCHASE INTRANET An information tool containing the All hotels (franchise/management/subsidiary) can benefit from inventory of suppliers and fresh news products & services with negotiated prices on recurring purchase. LHG can handle the whole purchase process, from the need expression to the contract drafting for non recurring purchase. THE STORE A purchasing system of approved suppliers for hotels 95
LHG Technical Services Our Value Proposition: Optimize investments (Control the investment cost, management of operations and functions) Respect of Louvre Hotels Group brands standards Management of risks and of legal conformity Energy performance & maintenance Our Technical Department offers 3 different services: • Hospitality Technical Assistance • Project Management Assistance • Project Management Supervision 96
For more information, please also visit our website: www.louvre-hotels.com
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