starwood final preso teamcte

8/6/2019 Starwood Final Preso TeamCTE

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Kellogg Business Design

Competition 2011: StarwoodHotels

Team:Calvin TamTyler Evans

Ethan Ambabo


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%ofrevenue

from hotels85.7%

64.7%

Occupancy Rate

Starwood is luxury hotels


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The Problem


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Starwood needs to find ways to increaseoccupancy without reducing the price itcharges per room.

How?

Find the people whotravel most frequently.

Find the peoplewhose loyalty canbe captured.


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What is business travel?

Business Travel

Who are the key stakeholders?Who is the customer?Who is the consumer?What are their real needs?

Hotels


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Whenever I arrive in a new city, Ifeel completely lost. I dont knowwhere to go or how to getanywhere.


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When I leave the office, I usuallyjust stay in my hotel room. I feellonely going out alone.

I want to be comfortable, buthaving a life on travel is difficult.The wrong charges always end upon my expense report. I dont wantmy boss seeing that.


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I want to focus on getting businessdone. Its always planningsomething, getting directions.Calling a cab. Help with this would

make me more productive.

I never bother asking the

conciergethey have no clue what Ilike. Id rather just ask a friend.

Yet, at a good hotel...


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When Im inside the hotel. Im taken care of.


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The Business Travel Routine


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Business travelerssee their journeybeginning in theirhome city, not thehotel.

They want help.They needreservations; acab. Theyre on aschedule.

They want to be wellequipped to dobusiness. Not to haveto worry aboutexpense reports.

When they arrive, theyfeel insecure. Businesstravel is lonely. Theywant to unwind. This isnot home.

?


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Corporate Travel Planners Perspective

We need to keep costs low.

There needs to be better ways totrack expenses. I cant benchmark.

I cant find ways to encourageemployees to come in underbudget.

Consolidating receipts, verifying-this process is too complex.


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$Businesses need to

keep costs low,benchmark, and findthe best deals in astreamlined way.


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What is business travel?

Hotels

Business Travel


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This is a classic two-sided market.

?

$

Business Traveler

Travel Planner


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This solution is not unique to the

business travel industry.

Analogies:


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Starwood needs to transform itself

from a simple hotel, into an integratedbusiness travel platform


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The Starwood Business Travel Platform consists

of 5 new digital experiences that resolve theconflicts in this 2-sided market.

1. Community Concierge

2. OneCard Solution

3. Unified Expense Report

4.Social

Connection

5. Seamless Connectivity


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Its not about spending the money to extendthe hotels services all throughout the city,

but about saving money by pulling all of the

citys services into the hotel.

Starwood Experience

StarwoodHotel


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The New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood PlatformThe New Starwood Platform

BusinessTravelers Employers

HotelRestaurants EntertainmentTransportation


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The New Starwood Platform

BusinessTravelers

Receive:

ConsistencyAmenitiesTransparency

Provide:

Consumer InsightLoyalty

Provide:

Loyalty (Preferred providerstatus)

EmployersReceive:

Consolidated HostingSpending Controls

Provide:

Access FeesTo Starwood

LocalBusinesses

Receive:

Customer TrafficAdvertising channelsConsumer insights

StarwoodPlatform


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1) Community Concierge

SW

My Starwood

My Itinerary >

Concierge >

Expense Manager >

Transportation >

Help Desk >

ExpenseM

anagerallows for easytracking of per diem,business expenses,and budget.

A friend-of-a-friend

relationship between theconsumer and localbusinesses, mediated byStarwood.

Book transportation, getrecommendations basedon your tastes, getdirections. Ask a personfor help.


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2) OneCard solution

Room card + Charge card + Loyalty card + Discount card

Room Card Charge CardLoyaltyCard

DiscountCard

$

SPG ONE CARD


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Travelers and planners can seereports in real time. Feedbacksystem helps benchmark,encourage saving.

12/18 Starbucks

12/18 Taxi

12/18 Il Sole

12/19 Walgreens

12/19 Taxi

12/19 Rogers Deli

Starwood Web Expense Report for:

Joe Smith

$4.08

$25.00

$198.08

$15.01

$38.00

$10.59

B

P

B

B

B

P

Per Diem Spend: 135.25 / 150.00

Client Development: 753.08 / 500.00

$Receipts are no longer anissue. Limits are clear. Datacollection drivesrecommendation engine.

Your saver score: 500 points

3) Unified Expense Report


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?

4) Social Connection

KaleidESCAPEby StarwoodThe Mix is Always Changing!

KaleidESCAPE is aspontaneous, zero-

commitment event club for all currentguests. It organizes simple activitiesbased on a critical-mass ofparticipation. If the activity sounds fun,

jump in.

Get activity alerts

on your smartphone Edit Profile PreferencesLogin:

Group of10 or

more meeting at

REVOG

RILL at7:30 pm.Live music starts at9:30 pm.

Interested No Thanks


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A wireless network card that gives peopleconstant access to the internet, and the hotelsservices, wherever they are in the city.

5) Seamless Connectivity


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Push B2B strategyto target customers

Pull strategy tobring in consumers.

Concept messaging


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THIS IS YOUR HOTE


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Impact

Increase in occupancy: 1-3%

Expected increase in revenue: $250-$750

million / year (5% - 16% increase)


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Additional Opportunities

Gain-sharing of savings created forbusinessesAdvertising and promotional tie-ins on

Community Concierge

starwood final preso teamcte

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