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Benchmark Hospitality
Agenda• State of the industry and
current trends
• Benchmark Hospitality performance
State of the Industry
Performance Drivers
Meetings & Planner Insights
The Digital Transformation
Industry Trends & Insights
Group has been good, not great
Group Pace Jan 2017: ▲ 2.1%
2017 Group Occupancy: ▼ 2.3%
Demand declined in:
2017 Group Mix: 32%
Group Pace Jan 2018: ▲ 1.9%
Group ADR Pace: ▲ 1.8%
of the top 25 US markets18
Reduced Business Travel
Source: STR Hotel Data Conference 2017
Conference Board Index of Consumer Confidence (1995=100)
Some of it is the Economy…
Transient: Favorable
Economic Policy Uncertainty Index
Source: policyuncertainty.com
Election
Inauguration
Supply Growth
Supply Growth
Industry Trends
OTAs
Hotel Industry is Under Pressure
Consumer Trends
AirBnB/VRBO
Political Policies Commissionable Channels
New Supply
Economic Cycles
Brand vs Independent
Industry Trends
Alternatives to Travel
Teleconference, Social Networking, Collaboration
SMALL is the new big
73%Less than 50 Rooms
42%Growth in 2 Years
Industry Trends
Concessions
Source: Cvent Planner Sourcing Report 2017
Industry Trends
Planner Personas
Source: Cvent Planner Sourcing Report 2017
Industry Trends
Planner Flexibility
Source: Cvent Planner Sourcing Report 2017
The Digital Transformation
Meetings Have Moved Online…
Even if we haven’t
67% Of the buyer’s journey is now done digitally
Online Sourcing Tool 38%
Search Engine 29%
Direct to Venue 17%
Peer Recommendation 12%
Other 4%
* Cvent Planner Report
Digital Transformation
$50M$600M
$2.4B$3.2B
$4.7B
$6.5B
$8.0B
$9.8B
$11.4B
$14.7B
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Cvent Hospitality Cloud GrowthRevenue Sourced
Benchmark Hospitality
performance
Exposure to New Organizations
300
349
49% OF UNIQUE ORGS WERE NEW TO YOU
New Orgs Repeat Orgs
Source: CSN Jun ‘17 – May ‘18
$34,856,734
$324,939,000
YOU RECEIVED 10% OF THE BUSINESS SOURCED BY THE 300
NEW ORGS
You Market
Demand Generation – RFPs
The demand you received in the last 12 months:
$312M Received
$5B went to your competitors
837K RNs$33M Non-
commissionable
$623K ITYFTY
$58M ITYFTY
Custom Data 2
YOY RFP Production
Source: CSN Data. Awarded reflects RFPs sourced in 2017 and marked Awarded
*Conversion Rate = Awarded in 2017/Submitted Bids in 2017. Does not include RFPs with Peak Room Nights > 500 (City Wides)
Time Range Total RFPs Unique RFPs Room Nights RFP ValueUnique Planner
Orgs
New Planner
OrgsAwarded RFPs
Awarded Room
Nights
Awarded RFP
Value
Jun '17 - May '18 4,116 3,808 837,250 $312,911,665 649 300 285 38,452 $13,675,615
Jun '16 - May '17 3,361 3,119 705,180 $239,486,978 608 293 240 28,102 $12,072,893
% Change YOY 22.5% 22.1% 18.7% 30.7% 6.7% 2.4% 18.8% 36.8% 13.3%
Demand Generation
How did your perform against your competitors?
Ahead21%
Behind69%
Fair Share10%
RFP Share
Demand Generation
21% Ahead
55% Gaining
45% Losing
69% Behind
50% Gaining
50% Losing
10% Fair Share
50% Gaining
50% Losing
Future demand pace
Demand Management – Own your
business
Win more – Lead Response
Performance Metrics
Demand Management
Own your Group Business
How did your hotels respond?
Response Time
Bid Rate
Response Time
20%20%
18%
12%
8%
5%4%
10%
0%
5%
10%
15%
20%
25%
1 2 3 4 5 6 7 8 or More
% o
f A
wa
rde
d P
rop
osa
ls
Rank of Awarded Proposal
Awarded Proposals 2008-YTD 2017 on the Cvent Hospitality Cloud
RESPONSE TIME RANK 1 2 3 4 5 6 78 or
MORE
% OF CONFIRMED BIDS 20% 20% 18% 12% 8% 5% 4% 10%
BID RATE
MORE POWERFUL METRIC!
CONVERSION
Slightly Improving Your Bid Rate →Major Results
• RFPs Received = 400
• Bid Rate = 73.5%
• Conversion Rate = 11.2%
• Awarded Value = $1,336,595
• RFPs Received = 449
• Bid Rate = 35.1%
• Conversion Rate = 16.6%
• Awarded Value = $905,005
Hotel A
Hotel B
Own your Group Business - CSN
Response Rate Bid Rate Turned Down rateTurned Down RFPs where
Planners were Flexible
Jun '17 - May '18 95.1% 66.2% 28.9% 31.0%
Jun '16 - May '17 96.7% 67.5% 29.3% 34.0%
% Change YOY -1.7% -1.9% -1.2% -8.8%
Key Takeaways
• Group is ok, not great
• Must be proactive– it’s getting more competitive out there
• Bid more
• Invest in insight
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