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23/04/2013 1 Revamping Leaders Club: Building loyalty through loyalty CIT Conference, Benidorm April 2013 Pablo Alcácer – The Leading Hotels of the World, Ltd Agenda Overview Leading Hotels Leaders Club Evolution of Loyalty New Membership Model Results

Accommodation, leisure & events management: Innovative success stories - Pablo Alcácer

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Accommodation, leisure & events management: Innovative success stories. Revamping Leaders Club: Building loyalty through loyalty. Pablo Alcácer (Leading Hotel of the World)

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Page 1: Accommodation, leisure & events management: Innovative success stories - Pablo Alcácer

23/04/2013

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Revamping Leaders Club: Building loyalty through loyalty  

CIT Conference, Benidorm ‐ April 2013Pablo Alcácer – The Leading Hotels of the World, Ltd

Agenda

• Overview Leading Hotels

• Leaders Club

• Evolution of Loyalty

• New Membership Model

• Results

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The Leading Hotels of the World

Far beyond a hotel representation company….

We provide the ultimate luxury brand affiliation, top of mind international sales & marketing solutions and state‐of‐the‐art distribution services. 

We are the marketer for the best independent luxury hotels in the world. 

Overview Leading Hotels

• Established in 1928

• 430 Hotels/Resorts

• 300 Locations, 80 Countries

• Headquarters in New York

• 25 Regional Sales Offices

• 12 Reservation & Service Centers

• Do for Hotels What They Can’t Do As Well for Themselves

• Focus on Independent‐Minded Hotels and Travelers

Preserve, 

Enhance, 

Invent

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The Leading Difference

LHW Members 

• Originals 

• Authentic/Local 

• Unique/One‐of‐a‐Kind 

• Adventure/Discovery

• Hotels Define Brand

• Family‐Owned 

Luxury for the Individual 

Chain‐Brand Hotels 

• Replicas 

• Imported/Formulaic 

• Consistent/Sameness 

• Expected/No surprises 

• Brand Defines Hotels 

• Investment/Trust Owned 

Luxury for the Masses

Leaders Club

• LHW Signature loyalty program

• Two distinct level

• Yearly fee (12‐month renewal)

• Benefits are received or earned when booking through LHW channels

Access Annual fee USD 150

Unlimited Annual fee of USD 1,200 

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Enhance

What do customers want?• Leaders Club Member Surveys

• Leaders Club Focus Groups 

(New York, Paris, Tokyo)

• Luxury Consumer Groups

• Competitive Studies

Enhance (II)

• Complimentary Nights

• Continental Breakfast

• Internet Access

• Room Upgrade (incl. Suites)

• Hotel/Resort Credit

• Airport Transfers

Common to Luxury Industry?

Customers buy benefits not features

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Enhance (III)

• New CRM Platform 

– Investment needed to capture guest data

– Communication to hotel of guest preferences

– Post‐stay Guest Satisfaction Surveys

• Reinvesting 50% of fees 

– Redemption to hotels of rewards nights @ NET ADR

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Invent

• Eliminate Complimentary Tier

– 100% Paying program

– Card Issuing vs. Card Usage

– Additional funding for marketing

• Reward redemption made simple

– Stay based vs. Point (Miles) based

• Hometown benefits

– Specific offers to resident members

– Provided in key cities worldwide

– Unique in industry

– Builds loyalty prior to travel

• Extension – Leading Golf Society

Invent (II)

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Traditional Membership Model

– Annual Membership Fee

• $660 per room in 2013

– Transaction Fee (per reservation) 

• $10 GDS  & Internet 

• 10% Voice 

• 7‐11% Group

– Minimum Fee = $58,500

– 4% Annual Membership Increase

Invent (III)

New Membership Model

– 2012 Pilot program (51 hotels)

– In‐house LC enrollment

– Eliminate Transaction Fees (avg. savings 40%)

– Provide 300 // Get 200.000 (potential customers)

– Corporate support (training & best practice sharing)

– Customized membership kits

Build loyalty through loyalty

Invent (IV)

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+45% LC Revenue to hotels 

(09 vs. 12’)

+60% LC Enrollment renewal

+50% Reward Reservations w/ additional nights 

+100 USD ADR Premium

Over LHW as industry leader

LHW most cost effective platform 

+ RevEx

Member retention

Member database x3 upon global launch (target)

Results

PRESERVE

ENHANCE

INVENT

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