Key Priorities & Activities

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Key Priorities & Activities

Olivier Jacquin

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FORWARD LOOKING STATEMENTS

This presentation includes forward looking statements relating to the prospects and growth strategy of Rezidor. These forward-looking statements generally can be identified by reference to future periods or by phrases such as Rezidor or its management “believes”, “expects”, “anticipates”, “foresees”, “forecasts”, “estimates” or other words or phrases of similar import. Similarly, statements in this document that describe Rezidor’s business strategy, outlook, objectives, plans, intentions, scenarios or goals are also forward-looking statements. The information should not be interpreted as guarantees of the future occurrence of such facts and data. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. These data, assumptions and estimates may change as a result of uncertainties related to the economic, financial, competitive or regulatory environment.

financial, competitive or regulatory environment.

The forward-looking statements contained in this document are made only as of the date here of. Rezidor expressly disclaims any obligation or undertaking to release publicly any updates of any forward-looking statements contained in this document to reflect any change in its expectations or any change in events, conditions or circumstances on which any forward-looking statement contained in this document is based. Rezidor operates in a competitive and rapidly changing environment. It is therefore not in a position to predict all of the risks, uncertainties or other factors that may affect its business, their potential impact on its business, or the extent to which the occurrence of a risk or a combination of risks could have results that are significantly different from those included in any forward-looking statement. None of these forward-looking statements constitutes a guarantee of

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Always tuned in to Revenue Generation

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 OSLO COLOGNE BERLIN OSLO PARIS FRANKFURT BRUSSELS LONDON STOCKHOLM LONDON

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January February March April May June

M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S

Important Dates 2011

Building the Revenue Pillars

*

Carlson Global

Business

Conference

- Orlando

Global Sales

Appointment and

GRC organisation!

Asia

US

July August September October November December

M T W T F S S M T W T F S S

M T W T F S S M T W T F S S M T W T F S S M T W T F S S

- Orlando

Global Revenue Council

– Brussels

Global

Revenue

Council

-London

Rezidor

Board

Meeting

Sales Mission

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EMEA

Revenue Generating Goals

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Global Revenue Generating Goals

Total Point Increase 9.4 End State Annual Incremental Brand Websites Revenue Optimization Travel Intermediaries Loyalty Program Sales 2.9 Points 1.9 Points 0.8 Points 1.8 Points 2.0 Points Incremental Revenue USD 414 Million RevPAR Index USD 128 Million USD 83 Million USD 36 Million USD 80 Million USD 87 Million

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Rezidor Revenue Generating Goals

2011

2015

Rezidor RGI

(points)

Incremental Revenue

Loyalty Program Sales 30 MEUR 2 points RGI 15 MEUR 1 point RGI 15 MEUR 1 point RGI 30 MEUR 2 points RGI 30 MEUR 2 points RGI

Incremental Revenue

Brand Websites Revenue Optimisation Travel Intermediaries

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Brand Website

Objectives by 2015

+2 pts RGI

(30 MEUR Incremental Revenue)

23% of Room Revenue

via Brand Web

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I still haven’t found what I’m looking

for…

SEARCHES A MONTH

(The 10th most searched travel word)

RESULTS

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SEM

… but we’re working on it!

1. Search Engine Marketing



5.1 Million

visits



Revenue

33.4 MEUR

2. Search Engine Optimisation

SEM

SEO

SEM

SEO

2. Search Engine Optimisation



18.3 Million

visits



Revenue

54.5 MEUR

3. Affiliate Marketing



Increasing our reach

FY December 2011 vs FY December 2010

50%

of web revenue is

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Ongoing Website Development



2011: More than 60 web projects launched

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Revenue Optimisation

Objectives by 2015

+2 pts RGI

(30 MEUR Incremental Revenue)

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The right price @ the right time …for the

next 120 days

Full integration of Stay Night Automated Pricing (SNAP)

 Automated price-setting for any given stay night

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Travel Intermediaries

Objectives by 2015

+1 pt RGI

(15 MEUR Incremental Revenue)

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Search

Strengthening partnerships through preferred

agreements

KEY ACTIVITIES



Improving production through existing partners

Hotel

Flight

Hotel + Flight

Car Hire

Cruise



Doubling our share with Carlson Wagonlit Tavel



Adding other 3rd party e-commerce partners

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+1 pt RGI

(15 MEUR Incremental Revenue)

Loyalty Program

Objectives by 2015

2.5M members in EMEA

by 2015

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Global

13 M

Key Activities:



Aggressive enrolment at

property level

2015 Targets

Driving new enrolments and promoting

‘active’ loyalty

EMEA

2.5 M



Dedicated member

campaigns



Launch of SME Program

Global

7.8 M

EMEA

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Higher value proposition

Higher customer loyalty



New member enrolments



Greater share of occupancy

+19%

+56%

+429,000

+2 points

FY December 2011 vs 2010



Increasing room redemptions



Member vs non-member ADR



Strong Elite Contribution:

5%

of membership,

48%

of the business

+60%

+44 USD

+15,600

182 USD

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Extensive Loyalty Program

1. Meetings & Events: Meeting Planner Program



10,000 members in EMEA



10,000 members in EMEA



Total Revenue

22 MEUR

2. Small & Medium Enterprises: Club Carlson for

Business



Launch

Q1 2012

but …

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+2 pts RGI

(30 MEUR Incremental Revenue)

Sales

Objectives by 2015

200 MEUR MICE +

128 MEUR Corporate

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Full integration of online tools

… the World’s Leading Sales Applications

1. Salesforce.com - Globally aligned sales support system

with

integration between GSO and property, roll-out by Q2 2012

2. Automated online lead referral and response tool for

business groups

integration with Brand Websites, Third Party sites

business groups

integration with Brand Websites, Third Party sites

and Salesforce.com

Accounts & Contacts Marketing & Leads Opportunities & Quotes Workflow & Approvals Social Monitoring Jigsaw Clean Data

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Top 100 Key Accounts



1.1 Million

room nights (+15%)

Expansion of Key Accounts through new Global PCR Program

Massive Small & Medium Enterprises (SME) development through Club

Carlson and new partnerships

Growing contribution from our Key

Accounts

Carlson and new partnerships

FY December 2011; Room nights Like for Like

Trend:

>

90% of Top 50 RFPs completed

>

Forecast 2% RFP rate increase

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Total MICE



20%

of Rezidor revenue



118 MEUR

confirmed through GSOs

(+17%)

Focus on ‘Pharma’

Securing ‘Preferred Partner’ agreements

Driving the Meetings & Events segment

Industries MEUR

Pharmaceutical/Medical 39 Manufacturing/Transport

/Construction 13 Finance & Consulting 9

Securing ‘Preferred Partner’ agreements

Building on SME

Trend:

>

45 day booking pattern

>

More events, on a smaller scale

Entertainment/Sports 8

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+300 events & tradeshows in 2012

Largest

ever!

segments

markets

National

international

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Middle East UK Germany Russia Turkey+ S.E. Europe Baltics France Norway

Revenue Generating FTEs Survey 2011

by Hotel Region

0 50 100 150 200 250 Poland Benelux Africa - South CH & IT Sweden Ireland Denmark Africa - North Iceland Other

2,204 positions

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Revenue Generation Organisation 2012

Largest

addition of

people ever !

Revenue Optimisation =

4.5

Marketing & CRM =

6.5

Sales =

14 26 New FTEs

people ever !

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Revenue Generation Organisation 2012

Total FTEs

Including 3 locally funded FTEs; excluding 6 GSR members; including FTEs funded by Carlson (CRM)