LANYON’S CONVERGE 2011 Presented by Mai Meyaart VP and Managing Director.

CONSORTIA PROGRAMS

LANYON’S CONVERGE 2011

Presented by Mai Meyaart

VP and Managing Director

Consortia Value

Maximizing ROI

Future Trends

Travel Agent Business

Rebounding +24.6% Yr/Yr

Higher rated +40%

Repeat business

82% of GDS transactions

come from Travel Agents

Travel Agencies – Why the Turn Around?

Time is more valuable than $$ Arrangements are too complex Consequences of making a mistake are too dire

Too much chaos – too many choices

Hotels are more savvy in discounting through OTA’s

Consortia value

Agency groups joined in a common venture

Multiplier for TA distribution Rate compliance and squatter audit

Monitor and motivate program usage

Effective marketing channels and intel

Consortia Differences

TRAVEL MANAGEMENT COMPANIES VS CONSORTIA

THE TRAVELER

THE TRAVEL AGENT

DECISION MAKER

In the TMC world, the travel manager is the decision maker, and has the greatest point of influence on where the traveler stays

In the consortia world, where there are fewer managed travel accounts, the use of a travel agent is voluntary and travelers use them for their expertise

Consortia Differences

Corporate Leisure

MARKET MIX

BRICK AND MORTARHOME BASED

Be selective – look for the program that offers you corporate and leisure business – weekday and weekend occupancy!

Filling your properties

S M T W T F S

MARKET MIX

Corporate programs fill your hotels midweek, leaving weekends suffering

Filling your properties

S M T W T F S

MARKET MIX

Hotel programs that offer the right mix of corporate and leisure business help fill your property all week long.

Consortia Differences

ADDITIONAL SERVICES

Call Center

Booking Engine

Training and Support

Different consortia offer agencies different services – this directly impact which consortia agencies use

Consortia Crossover

ConsortiaA

ConsortiaB

DU

PLIC

ATE IA

TA

s

Often agencies choose to work with more than one consortia – this is why their IATA number appears on more than one list

Why Travel Agencies Choose Multiple Consortium?

Differences in hotel contento Market mixo Geographic mix

Access to ancillary serviceso Strong block space programo Strong 24/7 supporto Commission collection support

MORE THAN ONE PROGRAM … MORE THAN ONE LIST

Most Corporate

Most Hotel

s Japan

Best Ancillary Programs

Best Reac

h

Some examples of these differentservices

MAXIMIZING ROI

Marketing Tools

Use those tools available to you Run promos that support consortia

rates Take advantage of market intel Create FAM opportunities Act on rate audit results

Rate Loading - Incorrect

Rate Loading - Incorrect

Rate Loading - Correct

Communicate Successes

Share the message down to property level and repeat

Develop relationships at leadership level

Engage other departments Look at total volume by consortia

FUTURE TRENDS

Program Evolution

Increased value on “better than BAR” Parity challenge More value adds More consortia intel

Agent Behavior

Increase in on-line tool usage More At Home agents Social network savvy

Consortia Evolution

Going Global Survival of the Fittest Mobile Strategy ROE – Return On Experience

Consortia Value• Travel Agent

biz is good

• 40% higher ADR

• Repeat customers

• Critical distribution

• Right Market Mix

Maximize ROI• Right market

mix

• Targeted marketing opps

• Attention to rate loading

• Use market intel

Future Trends • Better than BAR rates

• Value Ads

• Globalization

• Survival of Fittest

Q & A

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