Using Competitive Analytics To Leverage Your Buying Power · 1 Billion room nights sold in 2011 –...
Transcript of Using Competitive Analytics To Leverage Your Buying Power · 1 Billion room nights sold in 2011 –...
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Using Competitive Analytics To
Leverage Your Buying Power
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GOALS
�Understand how to leverage technology to make better business decisions
�Examine metrics to define, measure and report success
�Learn methods to leverage total spend for added meeting value / cost savings
�Demonstrate real meeting value to senior management
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AGENDA
�Definitions – Set the stage
�Brain Break – Group Discussion
�Reporting Examples
�Brain Break – Group Discussion
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Strategic Meeting Management
(SMM) Lifecycle
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CONCEPT
LOGISTIC STRATEGIC
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Definitions
Business Intelligence – Information to help you make better
business decisions.
Data Analysis – The process of evaluating data using analytical
and logical reasoning to examine each component of the data
provided.
Competitive Analysis – Being able to capture business intelligence
that will allow for data analysis that will put you in a position to
compete in the marketplace with a competitive advantage.
“High performing companies are using analytics to beat their competition hands down” – Competing on Analytics
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Four Pillars of Analytical Competition
Distinctive
capabilityEnterprise-wide
analytics
Senior management commitment
Large-scale
ambition
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Example
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Example
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TRENDS – Actualized Spend with ABC Hotel Chain
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Analytical Tools Available
Event Planner Hotelier
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BRAIN BREAK
Sourcing
GROUP DISCUSSIONRFP’S
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SOURCING SCENARIOS
�Always go to the same hotel
�Call a select number of hotels to check availability
�Send out an RFP via Email to your GSO who then distributes the RFP to the hotels
�Send Specs to CVB and get responses
�Use an eRFP engine to manage eRFP’s
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SOURCING – Examples
�Easy access to Previous Meeting Information
�Current Response Rates / Budgets from other RFP’s
�Access to Procurement / Business Travel Room Rates / Spend for comparison
�Planners in your organization are holding space at the same property
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SOURCING – Group Discussion
�How do you Source?
�How do you access information about your meetings?
�Budgets
�Specs
�Contracts
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Reporting
Competitive Analysis – Being able to capture business intelligence
that will allow for data analysis that will put you in a position to
compete in the marketplace with a competitive advantage.
“High performing companies are using analytics to beat their competition hands down” – Competing on Analytics
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Five Stages of Analytical Competition
Stage 5Analytical
competitors
Stage 4Analytical Companies
Stage 3Analytical Aspirations
Stage 2Localized Analytics
Stage 1Analytically impaired
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RFP Response Report
� Side by Side Comparison Grid?
� Include Avg Contracted Rate by supplier by date?
� Include Avg Response Rate from other colleagues?
�Include Pre Negotiated Rate information
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Room Rate and Meeting Space Verification
� How do you know if someone in your organization is not already
holding space at the same hotel over similar dates?
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Previously Contracted Spend Information
� Can you access previously contracted spend at a supplier easily?
� Can you access previously countersigned contracts easily?
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RFP Volume of Opportunity
� Do you know the volume of opportunities you are providing your
Suppliers?
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Contracted Spend by Chain By Year
� Do you know your contracted spend by chain by year?
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Actualized Averages
� Do you know your actualized Averages?
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BRAIN BREAK
Sourcing
GROUP DISCUSSIONContracts
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HOTEL CONTRACTING
�Access to Previous Countersigned Contracts
�Custom Contract Template
�Clauses
�Addendum
�Business Intelligence: Negotiations
�Business Intelligence: Leveraging Spend
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CONTRACTING TRENDS� Forget location – demand, demand, demand
� 1 Billion room nights sold in 2011 – surpassing 2007 record by nearly 20 million room nights
� Average Hotel rate in 2011 - $101.71 – still below pre-recession peak of $107.38 reached in 2008
� RevPar jumped to $61 in 2011, up 8.2% compared to 2010• Biggest increase since 2005 when revenue rose 8.6%
� Increased demand in corporate & association meetings / increased attendance
� Greatly reduced new hotel inventory / sleeping rooms in all brands
� Hotel refocus on revenue management to maximize profitability
Source: LA Times June 2011
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CONTRACTING – Group Discussion
�What tools or resources do you use for your hotel contract negotiation process?
�Do you have a custom contract Template? Addendum? Hotel Contract?
�How do you document your cost savings and risk reductions? Who do you share it with? How do you use this information?
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Resources
Thomas Davenport
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Complimentary Planning Resources
�Hotel Contract Negotiations Top 10 Tips
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Contact
Rob Wilson, MCSEPresident
Meeting Evolution
(913) [email protected]
http://www.meetingevolution.net