Intercontinental Hotels Group Plc · LSE:IHG
Intercontinental Hotels — Bass Hotels & Resorts — Investor Presentation (2000)
32 slides from Intercontinental Hotels's investor presentation, 2000
Slide 1: e-Commerce
e-Commerce
Slide 2: Agenda
Agenda n Introduction n BHR’s e-Commerce Strategy n Progress update & Demo 2 Bass Hotels & Resorts e-Commerce
Slide 3: Executive Summary
Executive Summary n e-Commerce certain to have major impact w Significant upside w we will remain flexible, responsive; lead changes n BHR: Leading position in the industry n Heavily involved in an aggressive action programme n Also new media, new revenue streams n Best-placed hotel company to take
Slide 4: A major e-Commerce player
A major e-Commerce player Estimated quarterly e-Commerce revenues £m £20 £15 £10 £5 £0 v e te L s s er in u QX Ba e es tm Fr las Note: Bass includes direct revenue for BHR only. Quarter to 31/3/00. Lastminute data is quarter to 31/3/00 (announced 4/5/00). QXL is an estimate for gross auction value f
Slide 5: Agenda
Agenda n Introduction n BHR’s e-Commerce Strategy n Progress update & Demo 5 Bass Hotels & Resorts e-Commerce
Slide 6: Sector well-suited for e-Commerce
Sector well-suited for e-Commerce Delayed Information - Gratification Intensive n Remote purchasing is normal n Better market-clearing n No physical fulfilment issues n Can expand entire market 6 Bass Hotels & Resorts e-Commerce
Slide 7: Our approach
Our approach Structural Focused Bottom-line Advantages Actions Gains 7 Bass Hotels & Resorts e-Commerce
Slide 8: Bottom-line Gains
Bottom-line Gains n Loyalty and the Customer Franchise n Incremental Sales n Business Efficiencies and Cost Reduction 8 Bass Hotels & Resorts e-Commerce
Slide 9: Focused Actions
Focused Actions n Excellence in own sites w and encourage use of Internet channel n Use new-model intermediaries to our advantage n Integrated solutions for B2B customers n In leading pack on new media n Business efficiencies for hotels n Flexible and open on new business streams 9 Bass Hotels & Res
Slide 10: Seven Structural Advantages
a Seven Structural Advantages a t n n Size v a n Scope n Coverage v d n Customers / Cardholders d n Brand A n Inventory A n Specialisation 10 Bass Hotels & Resorts e-Commerce
Slide 11: Seven Structural Advantages
Seven Structural Advantages n Size Almost 3,000 hotels n Scope Spread costs over many units n Coverage n Customers / Cardholders n Brand n Inventory n Specialisation 11 Bass Hotels & Resorts e-Commerce
Slide 12: Seven Structural Advantages
Seven Structural Advantages n Size 5 core brands Same back-end, tailor front-end n Scope Cross sell by occasion n Coverage n Customers / Cardholders n Brand n Inventory n Specialisation 12 Bass Hotels & Resorts e-Commerce
Slide 13: Seven Structural Advantages
Seven Structural Advantages n Size Almost 100 countries Global Infrastructure n Scope Easy to localise n Coverage n Customers / Cardholders n Brand n Inventory n Specialisation 13 Bass Hotels & Resorts e-Commerce
Slide 14: Seven Structural Advantages
Seven Structural Advantages n Size n Scope Over 9m card-holders 1:1 communication n Coverage HI: 50% of US travellers n Customers / Cardholders n Brand n Inventory n Specialisation 14 Bass Hotels & Resorts e-Commerce
Slide 15: Seven Structural Advantages
Seven Structural Advantages n Size n Scope n Coverage n Customers / Cardholders Undisputed #1 lodging brand n Brand 50-year rich, deep heritage People shop trusted brands n Inventory n Specialisation 15 Bass Hotels & Resorts e-Commerce
Slide 16: Seven Structural Advantages
Seven Structural Advantages n Size n Scope Access to all inventory Use channels & business models n Coverage selectively to own advantage n Customers / Cardholders n Brand n Inventory n Specialisation 16 Bass Hotels & Resorts e-Commerce
Slide 17: Seven Structural Advantages
Seven Structural Advantages n Size 70% of US stays: no air, no car rental n Scope TAs: <10% of trips w/ no air or car rental Our expertise re-inforced n Coverage n Customers / Cardholders n Brand n Inventory n Specialisation 17 Bass Hotels & Resorts e-Commerce
Slide 18: Four strategic arenas … currently
Four strategic arenas … currently Target Customer Purpose Example • Customer Relationship & Own Individual Loyalty Programme www.interconti.com Consumer • consumers Info www.holiday-inn.com websites • Bookings 18 Bass Hotels & Resorts e-Commerce
Slide 19: Four strategic arenas … currently
Four strategic arenas … currently Target Customer Purpose Example • Customer Relationship & Own Individual Loyalty Programme www.interconti.com Consumer • consumers Info www.holiday-inn.com websites • Bookings Own B2B • Integrated service Business customers Several in development sales (not just boo
Slide 20: Four strategic arenas … currently
Four strategic arenas … currently Target Customer Purpose Example • Customer Relationship & Own Individual Loyalty Programme www.interconti.com Consumer • consumers Info www.holiday-inn.com websites • Bookings Own B2B • Integrated service Business customers Several in development sales (not just boo
Slide 21: Four strategic arenas … currently
Four strategic arenas … currently Target Customer Purpose Example • Customer Relationship & Own Individual Loyalty Programme www.interconti.com Consumer • consumers Info www.holiday-inn.com websites • Bookings Own B2B • Integrated service Business customers Several in development sales (not just boo
Slide 22: Multiple axes of development
Multiple axes of development Buyers / Users Occasions / Places Media 22 Bass Hotels & Resorts e-Commerce
Slide 23: Agenda
Agenda n Introduction n BHR’s e-Commerce Strategy n Progress update & Demo 23 Bass Hotels & Resorts e-Commerce
Slide 24: Internet revenue growing rapidly
Internet revenue growing rapidly Direct Revenue Only $14 $12 $10 $8 1999 $m 1998 Revenues $6 1997 $4 $2 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Note: Revenue includes direct bookings only 24 Bass Hotels & Resorts e-Commerce
Slide 25: Internet revenue growing rapidly
Internet revenue growing rapidly Direct Revenue Only $14 $12 $10 2000 $8 $m 1999 Revenues 1998 $6 1997 $4 $2 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Note: Revenue includes direct bookings only 25 Bass Hotels & Resorts e-Commerce
Slide 26: BHR's own consumer sites
BHR’s own consumer sites Key Points The The Sites Sites www.holiday-inn.com www.holiday-inn.com w Allow citywide search for only available hotels www.hiexpress.com www.hiexpress.com www.crowneplaza.com w Virtual tours & Concierge Confidential www.crowneplaza.com www.interconti.com www.interconti.com
Slide 27: Our Websites
Our Websites n More visitors than any other chain n All sites re-launched twice in 1999 n Top consumer ranking (as certified by Bizratetm) n Over 13m page views per month n holiday-inn.com first website with CRS direct booking - since 1995 n InterConti.com is world’s fastest hotel site 27 Bass Hotel
Slide 28: Integrated B2B Service
Integrated B2B Service The The Sites Key Points Sites www.meetings.basshotels.com www.meetings.basshotels.com w Launch of site aimed at corporate corporate intranet intranet sites sites conference / meeting planners SME SME intranet intranet sites sites w RFP support, property detail, destination de
Slide 29: Proactive Use of Intermediaries
Proactive Use of Intermediaries The The Sites Sites (examples) Key Points (examples) www.expedia.com www.expedia.com w Key agreements / partnerships www.travelocity.com www.travelocity.com www.travelweb.com www.travelweb.com • Expedia www.previewtravel.com www.previewtravel.com www.priceline.com www
Slide 30: Services to owners / franchisees
Services to owners / franchisees The The Sites Key Points Sites www.hionline.com www.hionline.com w Strategic hotel management tool www.exonline.com www.exonline.com www.cponline.com www.cponline.com w 99% US Participation www.ssonline.com www.ssonline.com www.bhronline.com www.bhronline.com w 40K p
Slide 31: Executive Summary
Executive Summary n e-Commerce certain to have major impact w Significant upside w we will remain flexible, responsive; lead changes n BHR: Leading position in the industry n Heavily involved in an aggressive action programme n Also new media, new revenue streams n Best-placed hotel company to take
Slide 32: e-Commerce
e-Commerce