Workshop Are you FIT? Mark Smith, Joanne Scurr – Best Western Kevin Sharp – BWI THINK BIG, START SMALL, ACT NOW! Are you FIT ? THINK BIG, START SMALL, ACT NOW! Agenda • • • • • What is FIT? Leisure Pricing Overview Domestic FIT Overview Key Operators Discussions THINK BIG, START SMALL, ACT NOW! Who currently offers FIT rates? Every Best Western Hotel offers FIT, the X2 rate is compulsory. THINK BIG, START SMALL, ACT NOW! What is FIT? • FIT is a leisure rate used by Tour Operators and Ground Handlers • What does FIT stand for? There are a variety of answers to this question including fully inclusive tour, foreign independent traveller, flexible independent travel THINK BIG, START SMALL, ACT NOW! Who are our Domestic FIT clients? • There are 64 operators contracted by Best Western Great Britain who have agreed to the terms and conditions of our Domestic FIT programme • The top operators include: – Superbreak – Gallia bvba – Discover Travel & Tours – AC Tours – Buro ScanBrit THINK BIG, START SMALL, ACT NOW! Domestic FIT Terms and conditions What is the cancellation policy? 6 pm the day prior to arrival How will the hotel receive payment for these bookings? Please do not charge the guest, you will be paid automatically by Best Western for the B&B cost Please do not disclose the rate to the guest Is the rate commissionable to the client? No the rate is net What rate code will bookings be made on and how will bookings be received? Bookings will be made on the 8M and received via memberweb What is the Best Western Distribution fee 5.05% THINK BIG, START SMALL, ACT NOW! Leisure Pricing Overview THINK BIG, START SMALL, ACT NOW! Rate Plan Discount Type Distribution Channels FI 20% min, tax inclusive 20%, taxable static B2C, B2B dynamic B2C, B2B 25% min, taxable 31% min, taxable 20-50%++, taxable dynamic B2B dynamic B2B, Opaque Room Allotment / Freesale All X2 Z9 D2 Direct Contract THINK BIG, START SMALL, ACT NOW! Australia Austria Belgium China Denmark Finland France Germany Great Britain Total Properties FI FI % Z9 Z9 % D2 D2 % 177 65 49 34 23 42 309 188 150 22 47 33 23 39 160 186 85% 34% 96% 97% 100% 93% 52% 99% 177 35 12 34 23 39 36 1 100% 54% 24% 100% 100% 93% 12% 1% 158 19 43 19 23 23 309 187 89% 29% 88% 56% 100% 55% 100% 99% 276 217 79% 154 56% 142 51% Greece India Ireland 44 24 11 0 2 11 0% 8% 100% 29 8 11 66% 33% 100% 24 24 11 55% 100% 100% Ireland (Int'l Ops) Italy Korea Mexico Netherlands Norway South America Spain Sweden Switzerland Thailand Turkey 25 177 8 78 40 28 27 23 83 34 64 15 25 177 2 0 36 0 27 0 46 12 1 15 100% 100% 25% 0% 90% 0% 100% 0% 55% 35% 2% 100% 25 121 2 36 38 27 27 16 83 9 35 15 100% 68% 25% 46% 95% 96% 100% 70% 100% 26% 55% 100% 22 141 4 42 39 26 27 19 81 34 24 15 88% 80% 50% 54% 98% 93% 100% 83% 98% 100% 38% 100% THINK BIG, START SMALL, ACT NOW! Revenue % FY 2013 FI Z9 20% 1% D2 22% X2 57% THINK BIG, START SMALL, ACT NOW! Revenue by Region % FY 2013 N. AMERICA 56% INTL 44% THINK BIG, START SMALL, ACT NOW! Business to Best Western GB Hotels by Rate plan FY13 (Dec-Nov) RATE RATE_DESC RNS REVENUE FY14 (Dec-Jul) RNS REVENUE D2 NET RATE TIER 2 3,695 $320,358 2,497 $242,088 FI FIT-NET TO CLIENT 2,077 $243,983 2,029 $271,145 X2 NET RATE AND DYNAMIC TOUR PROGRAM 5,277 $655,843 2,682 $340,350 Z9 VIP DYNAMIC RATE PLAN 1,837 $171,714 1,644 $170,849 12,886 $1,391,898 8,852 $1,024,432 Grand Total THINK BIG, START SMALL, ACT NOW! Global Net Tour Rates Solicitation • FI: Feb 2015 for 2016/2017 program year, option to back-fill 2015/2016 • Z9: Feb 2015 • D2: Not annually solicited • X2: Mandatory load for all properties THINK BIG, START SMALL, ACT NOW! Leisure NET Rate - Key Partners • • • • • Key Partners – D2 / Z9 GTA HotelBeds Tourico Transhotel Go Global • • • • • • • Key Partners – FI / X2 British Airways Holidays – UK Hotels 4U (Thomas Cook) – UK Exit Reizen – Netherlands Alpharooms – UK Destinations of the World – Dubai Miki Travel – UK Jetair (TUI) – Belgium THINK BIG, START SMALL, ACT NOW! GTA is a World leader in the provision of ground travel products and services to the fully independent travel (FIT) industry • • • Process over 21,000 bookings every day and Sell 12 million room nights every year 86 offices in 38 Countries THINK BIG, START SMALL, ACT NOW! As part of the Kuoni Group GTA now handles all of the FIT business for the entire Group THINK BIG, START SMALL, ACT NOW! GTA ELECTRONIC CHANNEL: Global Partnership with BWI since 2010... • Pegasus Electronic Booking Channel • Z9 and D2 Leisure Net Rates • Virtual Single Use Credit Card Payment Terms THINK BIG, START SMALL, ACT NOW! GTA • PRODUCTION YTD 2014 BY REGION (ALL CHANNELS) REGION Western Europe North America/Canada Scandinavia Far East Eastern Europe Middle East Australasia South America %age 53% 27% 5% 5% 4% 4% 2% 1% THINK BIG, START SMALL, ACT NOW! Hotelbeds a part of TUI Travel • Global market presence selling product and services in over 150 countries • 12m customers • 23m room nights THINK BIG, START SMALL, ACT NOW! Accommodation brands THINK BIG, START SMALL, ACT NOW! Hotelbeds current situation • BWI Global agreement • Booking channel HBSI • Rate plans : X2, Z9, D2 leisure net rates • Payment via Virtual single use Credit Top ten countries booked via connectivity: • USA • Germany • France • Great Britain • • • • • • Netherlands Mexico Brazil Sweden Italy Canada THINK BIG, START SMALL, ACT NOW! Hotelbeds current situation • 2014 Direct agreements performance YTD Europe +11% North America +29% Latin America +37% Meapac +60% Direct= 88% of total volume THINK BIG, START SMALL, ACT NOW! Performance 2014 vs 2013 YTD Top 10 Destinations Orlando London Prague Los Angeles Rome Paris Milan Venice New York Madrid Total Top 10 Destinations %Growth 61% 24% 1% 64% 19% 22% 5% 63% 164% -9% +30% THINK BIG, START SMALL, ACT NOW! 38% Top Ten vs Total Any Questions? THINK BIG, START SMALL, ACT NOW!