Strategy 2015 2018 v1

STRATEGY

VERSION 1

2015-2018 CPHAPAHI

TABLE OF CONTENTS

1. OUR VISION

2. OUR MISSION

3. OUR VALUES: HOSPITALITY I INTEGRITY I LEADERSHIP I TEAMWORK I OWNERSHIP I NOW

4. OUR CURRENT SITUATION: SWOT I KEY STAKEHOLDERS I MARKET TRENDS I CUSTOMER BEHAVIOUR

5. OUR KEY STRATEGIES: REVENUE GENERATION I USPs I eCOMMERCE I SOCIAL MEDIA I EMPLOYER BRANDING I REWARDS & CELEBRATING SUCCESS I LEARNING & DEVELOPMENT I OPERATING CONCEPTS I TRAVEL WITH PURPOSE I HARDWARE

6. OUR GOALS: FINANCIAL GOALS I REVENUE & COMMERCIAL GOALS I QUALITY GOALS I TM GOALS

7. OUR KEY ACTIVITIES: “BACK PLANNING”

8. OUR ORGANIZATION: ORGANIZATIONAL CHART I SUCCESSION PLANNING I LEADERSHIP CULTURE I LEADERSHIP PROFILING I BLUE ENERGY

1. OUR VISION 2. OUR VISION

WE WANT TO BE THE

BEST/PREFERRED HOTEL FOR OUR GUESTS, TEAM

MEMBERS & OWNERS ALIKE

VISION

2. OUR MISSION

BY 2018 WE HAVE REACHED

THE TARGETS SET IN THIS PAPER

MISSION STATEMENT

3. OUR VALUES

H I L T O N

4. OUR CURRENT SITUATION

SWOT ANALYSIS

Strengths • International & strong brand • Competencies • Service culture • Multi-cultural team (diversity) • Reputation among loyal customers • Strong, dynamic owner (CPH Airport) • Location • Established in the local market • Low turn-over • Modern facilities

Weaknesses • Internal communication • Internet • F&B product • Meeting capacity biggest function room • Nordic co-operation • Non-customer perception/Awareness • Declining conditions

Opportunities • Hampton by Hilton (hotel #2) • Ballroom extension • Use of internal resources • New technologies • Innovation F&B concept • Increasing demand • Local community • Increased awareness/profile marketing, right market

groups • New markets (China, Russia, other?)

Threats • High-quality in-house meeting facilities with corporate

companies • C&E market South Sweden • Domestic regional competition • Copenhagen as convention destination • New facilities at CPH Airport (Regus, restaurants)

FEEDER MARKETS & CHANNEL MIX

2014 2013 Variance (% Change) Variance (TY-LY)

GOB Country Room Nights Room RevenueADR Room Nights Room RevenueADR Room Nights Room Revenue ADR Room Nights Room Revenue ADR

Denmark 32,576 5,829,939$ 178.96$ 30,277 4,989,752$ 164.80$ 7.6% 16.8% 8.6% 2,299 840,186$ 14.16$

United States 12,259 2,633,881$ 214.85$ 12,611 2,635,346$ 208.97$ -2.8% -0.1% 2.8% -352 -1,465 $ 5.88$

Sw eden 9,679 1,877,316$ 193.96$ 9,974 1,893,968$ 189.89$ -3.0% -0.9% 2.1% -295 -16,652 $ 4.07$

United Kingdom 7,294 1,666,246$ 228.44$ 6,789 1,463,697$ 215.60$ 7.4% 13.8% 6.0% 505 202,549$ 12.84$

Norw ay 2,506 565,874$ 225.81$ 2,986 627,848$ 210.26$ -16.1% -9.9% 7.4% -480 -61,974 $ 15.54$

Germany 2,582 526,011$ 203.72$ 2,571 532,498$ 207.12$ 0.4% -1.2% -1.6% 11 -6,488 $ -3.40 $

Sw itzerland 1,561 338,527$ 216.87$ 1,553 312,155$ 201.00$ 0.5% 8.4% 7.9% 8 26,373$ 15.86$

Turkey 2,805 340,552$ 121.41$ 2,556 305,168$ 119.39$ 9.7% 11.6% 1.7% 249 35,384$ 2.02$

France 1,187 255,061$ 214.88$ 1,136 239,872$ 211.15$ 4.5% 6.3% 1.8% 51 15,189$ 3.72$

Canada 1,151 241,081$ 209.45$ 1,194 233,317$ 195.41$ -3.6% 3.3% 7.2% -43 7,763$ 14.05$

Netherlands 996 232,483$ 233.42$ 1,200 241,053$ 200.88$ -17.0% -3.6% 16.2% -204 -8,570 $ 32.54$

Japan 1,373 223,865$ 163.05$ 1,821 248,562$ 136.50$ -24.6% -9.9% 19.5% -448 -24,697 $ 26.55$

China 712 119,642$ 168.04$ 853 153,196$ 179.60$ -16.5% -21.9% -6.4% -141 -33,554 $ -11.56 $

Russia 342 80,950$ 236.70$ 495 95,880$ 193.70$ -30.9% -15.6% 22.2% -153 -14,930 $ 43.00$

Room Nights

Web Direct

HW

Reservation

Centers

Property

Direct

OTA

(Merchant

& Retail)

Wholesale /

FIT (Direct

Connect)

GDS

(Consortia)

GDS

(Travel

Agency)

Other

19.00% 2.79% 45.20% 15.82% 0.69% 15.55% 0.96% 0.01%

Channel MIX by vol.

PEST ANALYSIS

Political • Increased international competitive advantage >

Hotel VAT deduction 100% from 1st of January 2015

• Business travels to become 15,8% cheaper • Hilton sell-off (IPO) • Sustainability regulations • EU regulations

Economics • GDP growth Europe – forecast 2015

Social • Infrastructure/Accessibility –> CPH expanding,

development of new flight routes into CPH, Metro-ring development

• Segments -> change of travel patterns, “Millenials”, rising markets (China, Russia)

Technology • A major factor influencing the market and consumer

behavior (websites & hotelbooking) • Up-to-date information and booking systems • Electronic media –> “Wearables” (Google Glass,

iWatch etc.) • Social Media Platforms -> FB, LinkedIn, Twitter etc.

Source: Forbes Magazine XX. 2014, The Economist & Horesta

http://www.economist.com/blogs/graphicdetail/2014/08/european-economy-guide




GDP GROWTH FORECAST 2015

USA +3%, China +7%, Russia +0,5

MARKET KPIs

Expanding CPH/world class hub - most important traffic point in north of Europe. Expected growth in passengers 2014-2019 from 20mill to 40 mill

Growth in international guests (RN) 2014-2017 + 10% = 2.200 RN in CPH. DK total 2014 YTD 6.010. DK total national guests YTD 6.922

New hotel projects 2015-2017 (see back up)

New local venue projects 2015-2017 – ’Royal Arena’ with capacity for up to 15.000

New business park ’soundport’ April 2017 – Vestas and Ferring as largest corporate clients

Hotel capacity (Bedrooms greater Copenhagen) 2015-2017. 2014 approx 16.800 Hotel rooms expected growth towards 2017 is 10%

Congresses 2015-2017 (planned YTD – see sep. slide)

Sources: Horesta, Dansk statistik, WOCO, VisitDK, CPH Airport

CONVENTION BUSINESS 2015-2017

Topic Congress Start Date Number of Delegates Room Nights Venue_Congress

2015

EWEA OFFSHORE 2015 10/03/2015 10,000 30,000 Bella Center A/S

DELL FRS 2015 25/03/2015 2,500 7,500

European Congress of Clinical Microbiology and Infectious Diseases - ECCMID2015 25/04/2015 10,000 30,000 Bella Center A/S

16th International Inner Wheel Convention - IIW 2015 05/05/2015 2,500 10,000 Tivoli Congress Center

13th Congress of the European Association for Palliative Care - EAPC 2015 08/05/2015 2,500 7,500 Bella Center A/S

20th International Conference on Composite Materials – ICCM20 2015 19/07/2015 2,000 12,000 Bella Center A/S

Eurospine 2015 - Spine Society of Europe 02/09/2015 3,000 9,000 Bella Center A/S

International Congress of the European Academy of Dermatology and Venereology - EADV 2015 08/10/2015 8,000 32,000 Bella Center A/S

2016

22nd Wonca Europe Conference 2016 16/06/2016 3,500 10,500 Bella Center A/S

Forum of European Neuroscience Societies - FENS Forum 2016 02/07/2016 8,000 40,000 Bella Center A/S

XXXIV Congress of the European Society of Cataract and Refractive Surgeons - ESCRS 2016 10/09/2016 9,000 45,000 Bella Center A/S

Congress 2015 2,000 6,000 Bella Center A/S

Congress 2016 3000 12000 Bella Center A/S






2017




126,250 519,500

MICE - MARKET, BUYER & SUPPLIER

Marketplace Buyer Supplier

Price will continue to be a strong factor

in the decission making process

Buyers expect more for same price

(quality/value for money)

Increased competition, new range of

products, faster development

Meeting products and facilities will

increasingly be seen as a standard

product in the industry

Centralization and professionalisation as

well as outsourcing will become more and

more commen in the buyers organization

Increased expectation to vendors

identity, caracter, energy and atmosphere

The competition from the profitable

niches in the meeting market will

become stronger

Meetings will become shorter as well as

the numbers of delegates will be at a min.

More established brands and vendors will

seek growth via acquisitions

Increased focus on security and growth in

"secure" destinationsIncreased focus on return on investment

Increased focus on insourcing (meetings)

and learning competences

Increased need for confidence-building

meetings

less focus on "investment" in the

surroundings

New alliances - office hotels, sport

arenas, museeums, etc

More interactive facilitation and self-

organization

Many "small" 3rd parties will have access

to the market

all delegates wil be linked together in

mobile networks

chain wide - the marketing efforts will

strongly increase - recognition is key

Increased focus on measureable criterias -

this even before quality

The "process" in the meeting will be faster

and more dedicated, ambitious and

measurable

Mega brands from other industries will

make an even stronger foot print in the

industry

The winners of the future will be those

who master the process of creating

virtual relations formation

The physical and virtual meetings will

merge together (video conferences)

Existing chains/venues will integrate DMC

for better and stronger distribution

Economical context

Social context

Technological

context

25 Trends in the Meeting Market

AVERAGE SPEND OF A MEETING GUEST

1 Attract more international meetings guest as this will boost our business 2. Make sure that our local/ national meeting guests stay loyal

USP’s

Location Only 5-star property in the airport Unique location vis-a-vis Øresundsbroen (ideal for car launches) & Sweden Close to leisure facilities (Den Blå Planet, Amager Strand) Direct Metro & train lines

Team Experienced team Loyal team Diversity of team – multicultural Multi-lingual staff

Brand/Product/Services Brand name/recognition in the industry Brand standards (consistency in product) Established in the market (within our category) Hilton Meetings concept Top-floor Executive Lounge Award-winning hotel Award-winning Ni’mat Large guest rooms Hilton Hhonors rewards program

Value/Customer Perception Efficient Hassle-free Creative Flexible Convenient Comfortable – quality Service culture

How do we stand apart from our competitors? What are our competitive advantages?

From “Hyper-Connected” to “Digital Elite” Travelers

The traveler is online 24/7

Wearables to enhance this trend

Mobility counts! “I want to book whenever I can and wherever I can”

Use of multiple devices for researching, booking and purchasing

Rise of the “Digital Elite Traveler” -> using at least 2 devices in the booking process

Be the best to answer -> Communication and Marketing must be “OMNICHANNEL”

Customers expect to find consistent information on smartphones, tablets, laptops etc.

Expectations of the personalized and consistent customer experience to make it local & memorable

Digital Travel Trends

40% consumers plan trips on smartphones and tablets

32% of business travelers under the age 30 use

smartphones to book their travel

74% of travel consumers who use

tablets are under the age of 45

7.5% of all online travel bookings are from tablets

Hyper-connected travelers spend 30% more than less-connected

travelers

Digital Travelers

http://www.tnooz.com/article/connected-travellers-monetate






Fragmented Consumers

Tomorrow’s traveler motivations will become increasingly fragmented and diverse and harder to segment into clearly definable customer groupings:

Millenials - GenY

Adventurers

Bleisure Travelers of Tomorrow

Foodies

Multi-generationals

LGBT

?

OTA Booking Trends

Changing booking patterns across OTA’s:

Demand for flexibility, easy real-time access to information and a seamless booking process

Leisure and business worlds are blending -> “same traveler, different needs”

Loyalty rewards from OTA loyalty clubs capture the traveler

Bookings moving from Sundays to Tuesdays

Fast Future

Customers will increasingly be demanding velocity and precision in all processes related to travel:

Fast booking

Fast purchasing

Fast travel from A to B

Fast check-in/Fast check-out

Fast responses in customer service

Fast(er) Wi-fi

“WOW me…

…in a personalized and innovative way!”

Extreme personalization The guest of the future will prefer to tailor every aspect of their experience including technology, hotel services, the bedroom, the journey, pricing and communications

Innovative experiences The guest of the future will require intelligent furniture, adaptive room environments, personalized entertainment, individually tailored nutrition and ‘thought control’ of guest facing systems and appliances.

Google Traveler Study 2014

Highlights 26% of travelers go to a search engine first to research accommodations vs. 18%

go to branded sites and apps

Travelers use a variety of branded -> e.g. “Hilton in Copenhagen” and non-branded -> “e.g. Hotel in Copenhagen” terms throughout planning

The majority of business and leisure travelers consider multiple brands when researching and 1 in 3 travelers do not perceive clear differences between hotel brands

The research phase is a clear branding opportunity for hotels

Mobile is critical at all stages and influences booking decisions; smartphones used for “snacking” -> booking is done via another channel

75% of leisure hotel bookers switch between devices to complete a booking

50% of travelersuse online videos to make a decision regarding accommodations


Inspiration (Re)search Booking & Payment

The Hotel Booking Journey

Travelers rely on social/video/photo sites and search engines. 42% of travelers are inspired to travel by YouTube content

The path to purchase is still (too) complex

Social Media

Customers will be demanding:

Interaction with the hotel – “listening skills required”

Personalized responses to reviews-complaints-comments -> NOW

Social media and mobile will be inseparable

Facebook is still the largest social media network with 82% of all internet users (excl. China) in the age from 16 to 64 having an account

Instagram is the fastest social media with a growth rates of 25% for new registrations

LinkedIn users are typically between 30-64 years of age + hold a college education

KEY STAKEHOLDERS

Guests • Excellent service • Personalized stay /flexibility • High problem resolution rate • Hassle-free/simplicity • Comfort - internet, room, tm • (value for money)

Team Members Leadership Development Benefits-motivates Respect/Responsibility/Empowerment Hygiene factors improvement

Owners • Superior returns • Quality • Value to their company • Professional management

Hilton Worldwide • Achieve results • Commercial growth • Positive owners relationship • Open the market for Hilton • Brand standard/quality focus

4.4 CUSTOMER BEHAVIOUR

7. OUR ORGANISATION

6. OUR ORGANIZATION 4. OUR KEY STRATEGIES

TRAVEL WITH PURPOSE

Community

Purpose: image creation => business opportunities

More attractive as an employer Open for anybody

Activities:

• Use local produce • Involve locals to guide us

• (FB we love Amager) • Around the World in a day

• Global Week of Service • Day care center

Charity:

Find 1 (or more) new charity partner(s) Find a corporate co-host

Youth opportunity/Career Development

Purpose: Attracting enough potential TMs • Have qualified team members

• Focus on attitude • Problems: Level of interest for hospitality/Lack of awareness

for Hilton/Training/Succession planning • Attract/Select/Train

• Hotel schools/General PR/Competition/International/Select • Hire attitude (attitude to be defined) • Testing/assessment/group interviews

• Peer interview/Train/Review introduction

Wellness

Purpose: Reduce absenteeism • Work/life balance

• Possibility to work from home (HODs) • Work stress

• Employee meals, nutrition • Rüdiger: FUEL YOUR FIRE

• “Social exercise” • Health checks

TRAVEL WITH PURPOSE

Sustainability

Purpose: Really living sustainably => Save the planet and save money

Activities: • Food waste

• Do something on our own • Local produce • Renovation

• Make our efforts visible to guests

•Multi-skilled Team Members

•Cross lateral development

•Promote before recruiting

Development

& recognition

•HCF Activities

•Travel With Purpose

•Flex, seniors & disability

Social Resonsibility

•Build on digital voice (social media)

•External promotion of skilled TMs

•GM - voice of Hilton Communication

•Structured competency development plans

•Provide extraordinary opportunities

•International exposure

Apprenticeship focus

EMPLOYER BRANDING

Challenges The growth of an aging population in many Western countries will result in fewer people of working age and increased

competition across most sectors. Limited talent-pool to recruit from in Denmark combined with the fact that the image of the hotel/service business not the

best Knowledge of HCA as a great workplace + career opportunities are limited How do we want to present Hilton Copenhagen Airport as an attractive workplace? What positions/roles in the hotel will be the most critical for future success and thereby to fill/develop/recruit for?

EMPLOYER BRANDING

Actions

Best in class recognition programme -> incentivizing performance

Build on culture of recognition -> recognizing because you want too make a difference

Swap / exchange positions between departments -> promotions vs. side-steps

Best in class internal progression plan -> incentivize HODs to promote internally

EMPLOYER BRANDING

Actions

Contribute to the labour market diversity -> action-based policy

Engage in TWP activities with passion that makes sense -> making clear business justified

decisions of which event to take on board



EMPLOYER BRANDING

Actions

Prioritize HCF Activities for maximum impact -> visibility & TM engagement

Engage in TWP activities with passion that makes sense -> making clear business justified decisions of

which event to take on board

Strategy to focus on the more personal side of the workplace. Posts on “TM life at HCA” to engage

current and potential TMs. All TMs to be part of this.

LinkedIn as a recruitment platform?



6. OUR GOALS

FINANCIAL GOALS

2015 2016 2017 2018

HILTON

Rooms revenue 132,683 136,663 130,000 136,000

F&B revenue 75,553 77,442 75,000 79,000

Other revenue 2,510 2,535 2,500 2,500

TOTAL REVENUE 210,746 216,640 207,500 217,500

Departmental expense 90,346 92,255 91,000 91,287

Departmental profit 120,400

124,385 116,500 126,213

Overhead expense 49,353 50,340 49,500 49,000

GOP 71,047

74,045 67,000 77,213

33.7% 34.2% 32.2% 35.5%

FINANCIAL GOALS

2015 2016 2017 2018

HAMPTON

Rooms revenue 55,029 66,952

F&B revenue 3,985 4,850

Other revenue 830 957

TOTAL REVENUE 59,844 72,759

Departmental expense 19,526 22,463

Departmental profit 40,318 50,297

Overhead expense 12,807 14,000

GOP 44% 47,9%

REWARDS/CELEBRATION

• Helping to build examples of values, mostly Hospitality • Take up in HOD meetings • HODs to nominate in meetings • HIGH5 – make it alive! • More Celebrating Success on departmental level • Celebration idea pool- HODs empowered

6. OUR KEY ACTIVITIES

6. OUR ORGANIZATION

Strategy 2015 2018 v1

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