Differentiating your resort with creating package rates

“Differentiating your resort with creating package rates”

Our expert panel • Salvatore Dickinson, CHME, Chief Executive, Dickinson & Associates • Kim Schaller, Chief Marketing Officer, Hershey Entertainment • Tom Trotta, President, International Lifestyles

Today’s agenda • Kim & the question “to package or not to package” • Tom & consumer behavior • Sal & dynamic packaging • Q&A from you

“To Package or Not to Package” Kim Schaller Vice President, Chief Marketing Officer Hershey Entertainment & Resorts Co.

665 rooms 100, 000 sq. ft. meeting space

234 rooms 25, 000 sq. ft. meeting space

To Package…or NOT to Package… …THAT is the question. .

Packaging is a 9 letter 4 -letter word @#$!

Customers Want Them vs. We Don’t Need Them!

We Sell More Rooms vs. We Lose Rate

Which came first – the room night or the package?

Everything in life is about balance!

Pros Today’s customers expect them

Competition does them

Public Relations Needs Them

Fabulous Five! • • • Points North Magazine, Atlanta, GA Five exclusive resorts showcased every month Must offer minimum 2 night package Discounted offer for guests Advantages – free, reach 81, 000 readers!

Advertising keeps us “out there in consideration set”

Creates a USP

Partners Request Them Media & Travel Partner

Cons

Scrooge!

• • • Operationally difficult Front Desk hates them Potential guest dissatisfaction They reduce revenues We don’t need them

Operational Solutions Bridging the Great Divide Packages Task Force

Fully Explore the Types Three potential types: • • • Discounting elements Elements added together not discounted Value added

Magic Words “Packages starting at…” “Based on availability”

• Work around operational challenges

Analysis, Results Orientation

PR When you package…you get press! Media calls DAILY!

Niche Opportunities • • • Golf Spa Family Food & Beverage Heritage

Potential for long features

• State of Today’s Media • Meet Short & Long-term objectives • Unique options during conventional time periods

Secret… “I don’t care if you ever sell one – just give me something!”

• • • Dreamy Packaging options Private culinary experiences Tours of chocolate factory Golf lesson with head pro Spa chocolate sampler Back stage access

That about wraps it up!

“From the Customers Perspective” Tom Trotta President International Lifestyles

Packaging • • • Resorts vs. Cruises vs. All-Inclusives Types of All-Inclusives Meal Plans Air Packages Other examples of Packages

Resorts vs. Cruises

Cruises vs. All-Inclusives

Types of All-Inclusives • Strictly All-Inclusive (definition, Club Med, etc. . ) • Ultra, Super, Total – Inclusives • Adults Only (Sandals, Hedonism, Couples) vs. Families (Beaches, Breezes, RIU) • All-Inclusive as an option (receipts, wristbands) (US Chains, Time-shares, etc…) • US (FL, Ski, P. R. , labor costs & liability)

Inclusive Packages • Meal Plans - (EP) European Plan is standard - Breakfast added at Courtyards, Embassy Suites. . . - Manager’s cocktail hours growing in use - Wyndham’s Loyalty Program has preferences for beverages, newspaper, snacks, bed type, etc… - Greenbrier has (MAP) Modified American Plan with Breakfast and Dinner - Spa packages, Golf packages, Casino match play

Air Package Booking Engine

Destination Weddings • Demographics, Budgets, 2 nd Time, Renewals, Gay • Handle in-house or Partner w/ Specialists

Slow Periods Upgrades, Suites, Run of House, Value Adds THE ULTIMATE UPGRADE! Enjoy an upgraded room for the standard room rate! Stay at a participating Elite Island Resort for at least 5 nights in September or October and enjoy an upgrade to an upper category room at the lowest rate at the resort! Per person rates for 5 nights begin as low as Antigua Jolly Harbour Villas (EP) $435 Royal Antiguan (AI) $625 Grand Pineapple Beach (AI) $999 St. James’s Club (AI) $1149 St. Lucia St. James’s Club, Morgan Bay (AI) $999 Windjammer Landing (AI) $943 The Grenadines Palm Island (AI) $1499 HURRY! First come, first served! Call now to reserve your upgrade at these great rates! (800) 345 -0356 Don’t forget to mention you want the Ultimate Upgrade!!

Web Inventory for ROH Special

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“Dynamic Packaging – The Future is NOW!” Sal Dickinson, CHME Dickinson & Associates www. WOWtravels. com

What is Dynamic Packaging? I. III. IV. Integrated packaging [booking engine] of multiple travel distribution businesses It is consumer driven & defined by available supplier options It provides consumers (& travel agents) access to multiple, dynamic & “value driven” travel packages It can provide suppliers with more pricing & inventory control while shielding actual prices from their competitors (opaque vs. transparent)

“On-The-Fly” Packaging of Multiple Components • • Air – Hotel – Car Transportation/Transfers Museums – Theatre – Events Tours – Sports Activities - Dining

How To Get Started I. Understand your current packaging metrics II. Acknowledge non-property complimentary providers III. Set reasonable objectives IV. Employ firms expert in technology

Dynamic Packaging Firms • Neat Product Group – Cendant – Offer air, car and hotel suppliers the dual benefits of a private label booking engine for their own Web sites, as well as expanded distribution through a growing number of Neat channels

Dynamic Packaging Firms • • • Datalex Hospitality Solutions Trisept Solutions Accovia ILOG Inntopia

Get Started NOW • • • Don’t repeat the delayed response our industry made to the Internet Don’t assume dynamic packaging will end the reliance on traditional tour operator products & online intermediaries Avoid “territorial myopia” & an “old world measures”…think Rev. Pac, 1 -to-1 and lifetime value

Get Started NOW Dynamic packaging is not a passing trend, but is being driven by consumer demand technology capability…the train is leaving the station…will you be onboard? ? ?

Q&A