TCG Cyprus Development Update 2018 · 2018-02-16 · TCG Cyprus Development Update 2018 Joe Seip, Regional Head of Hotel Contracting . ... innovating in travel for nearly 177 years

TCG Cyprus Development Update 2018 Joe Seip, Regional Head of Hotel Contracting

Thomas Cook at a glance

Listed on the London Stock Exchange and member of the FTSE 250

Strong brand presence in our major markets

Strong strategic partnership all around the world

£9bn annual sales

20m customers

93aircraft (incl. 25 long haul)

11th largest airline in Europe by fleet size

190 own branded hotels

One of the world’s leading leisure travel companies,

innovating in travel for nearly 177 years

17 Source Markets

22,000 employees 1st OR 2nd

Page 2

(by revenue) in core UK,

Germany, Northern

Europe markets

Cyprus Tourism

International arrivals from Source Markets where TC operates are continuously increasing

Page 5

Source: Official industry customer volumes data

154,449

1,157,978

106,661

GER/ AUT

100,994

47,037

1,253,839

2016

1,774,810

1,223,846

1,429,947

872,000

110,052

2015

1,575,477

2017

Norway

FR/ NL/ BE

+13%

Sweden

UK

78,394

115,019

2014

144,224

46,644 54,342

89,276

1,041,203

108,600

229,299

100,605

136,725

56,739

Increasing arrival volumes also from other Source Markets like Israel and Lebanon

Page 6

Source: Official industry customer volumes data

16,715

41,087

636,749

68,817

100,949

32,683

897,000

20,351

261,966

98,593

2016

869,900

148,739

2015

48,190

139,534

1,220,296

19,309 50,361

824,494

524,848

50,640

+16%

62,292

17,016 58,273

781,634

160,254

36,976

1,382,986

2017 2014

169,712

Russia

Ukraine Israel

Greece

UAE Lebanon

Strong market demand for upscale and luxury hotels underlines need for further investment

Page 7

Source: TC Group Reporting, WTTC; Global Data, 2018

› Total leisure travel revenue by hotel category (USD millions)

› Inbound tourist expenditures to Cyprus expected to increase over coming years (USD millions):

0

50

100

150

Foodservice Entertainment & Sighseeing

Retail

+11%

Other Transportation Accommodation

9491868278736978611051019295

408392372354338321305344321456375342357

961918875834965994950981

757725686667629604575645588606

854769779

2014 2010 2015

1,034

2011

1,029

2013 2012 2018 (FC)

2020 (FC)

2021 (FC)

+5%

1,005

2016

1,058

2019 (FC)

2017

1,105

2009

Midscale Luxury Upscale Budget

Page 8 Source: Source Markets’ Y&P departments; Group Data Warehouse CW04

TC Tour Operator Customer Volumes +11%

FY18 YTD FY17 EOS

+3% 0%

FY16 EOS FY15 EOS

TC Group with ambitious growth targets supported by expansion plans for Own Brand portfolio

+15% YTD

› Cyprus is currently among top 10 destinations in UK and NE TC Source Markets (based on customers FY18 YTD)

1. Canaries 2. Greece 3. Turkey 4. Balearics 5. USA 6. Spain-ML 7. Cyprus 8. Cuba 9. Mexico 10. Egypt

TC UK TC GER 1. Balearics 2. Greece 3. Canaries 4. Turkey 5. Spain-ML 6. Bulgaria 7. Egypt 8. Dom Rep 9. Thailand … 16. Cyprus

TC NE 1. Canaries 2. Greece 3. Thailand 4. Cyprus 5. Turkey 6. Kap Verde 7. Egypt 8. Portugal 9. Croatia 10. Bulgaria

TC FR/BE/NL

1. Canaries 2. Greece 3. Balearics 4. Turkey 5. Egypt 6. Tunisia 7. Spain-ML 8. Morocco 9. Portugal … 22. Cyprus

Forecasted

Our Own Brand hotel architecture

Page 10

Developed for both families and

adults with consistency in design,

rooms and features

Clear customer segmentation

between families and adults only

Adults only Families

Best

Better

Good

Synonymous with quality and value,

with differences in design and

features across the portfolio

Premium

Budget

Our hotel concepts

Our hotel brands

Some of our current projects

Page 11

Package holidays and hotel rooms sold through umbrella site

and new sites for each brand

Launching in December – roll-out in early-2018

Implement brand standards

Launch first Casa Cook designed for families

Working with play and learning experts to create Casa Cook kids concept

Grow with >5 CC projects for 2019

Our portfolio of Own Brand hotels in 2018

Page 12

Our other Own Brands are located in:

We operate or franchise 190 hotels in 20 destinations

including 12 in Cyprus:

› Austria › Bulgaria › Cape Verde › Croatia › Egypt

› Gambia › Germany › Greece › Italy

› Maldives › Morocco › Portugal › Spain › Thailand

› Tunisia › Turkey › UAE

Source: Thomas Cook Hotels & Resorts

1

3

1

22

3

New Own Brand project: SunConnect Sofianna Resort

Page 13 Source: Thomas Cook Hotels & Resorts

• Paphos, Cyprus

• 4* hotel

• 167 rooms

• TC allotment: 167 rooms

New Own Brand project: Sunprime Protaras

Page 14 Source: Thomas Cook Hotels & Resorts

• Protaras, Cyprus

• 4* hotel

• 110 rooms

• TC allotment: 110 rooms (TC NE only)

Importance of

customer

Customer at our Heart makes us who we are

Page 16

Quality and service focus across all customer touch points

A bold 24-hour satisfaction promise

Introduction of NPS and link to management bonus

Holistic view on customer care and customer contact

Refreshed culture aligned with our 3 customer promises

In 2015, we launched pledge to put our customer back at the heart of all we do

Delivering great holidays that inspire our customers to come back

› More satisfied customers

› Enthusiastic colleagues

› Whole company energised

› Profitable growth engine

In 2016, we launch our three customer promises

NPS IS OUR MAIN CUSTOMER SATISFACTION KPI

Page 19

Net Promoter Score is now our primary KPI and what we are all measured against

• 81% of promoters are more likely to repurchase compared with passives 44% and detractors 15%

• 86% of consumers would be prepared to pay more for a guaranteed better customer

experience

• 95% of dissatisfied Customers frequently tell others about their bad experience

• 66% of Customers who switch brands do so because of a poor customer experience

Source: Qualtrics research 2017

Net Promoter Score

Managing hotel quality through NPS

Page 20

• Continuous feedback loops

• Automated monitoring & flagging

• Rigorous quality management

- New I/M/T process launches this month