“ 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 OfficerHershey 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!

Today’s customers expect them

Pros

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 ThemMedia & Travel Partner

Cons

Scrooge!

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

Operational Solutions

Packages Task Force

Bridging the Great Divide

Three potential types:

• Discounting elements• Elements added together not

discounted• Value added

Fully Explore the Types

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 TrottaPresident

International Lifestyles

Packaging• Resorts vs. Cruises• 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, 2nd 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 AntiguaJolly Harbour Villas (EP)     $435Royal Antiguan (AI)     $625Grand Pineapple Beach (AI)     $999St. James’s Club (AI)     $1149 St. LuciaSt. James’s Club, Morgan Bay (AI)     $999Windjammer Landing (AI)     $943 The GrenadinesPalm 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

Chains can place guests where neededLET'S MAKE A DEAL!

You choose a door. We surprise you with the Best Deal in Jamaica!

DOOR #1  DOOR #2 DOOR #3

SuperSurprise(all resorts)

from

$125per person, per night

           to learn more click here

SuperSurprise Plus(exclude 1 resort) 

from

$144per person, per night

           to learn more click here

SuperSurprise Plus, Plus(exclude 2 resorts) 

from

$188per person, per night

           to learn more click here

Over half a million satisfied SuperSurprise contestants since May 1995!

“Dynamic Packaging –

The Future is NOW!”Sal Dickinson, CHME

Dickinson & Associateswww.WOWtravels.com

What is Dynamic Packaging?

I. Integrated packaging [booking engine] of multiple travel distribution businesses

II. It is consumer driven & defined by available supplier options

III. It provides consumers (& travel agents) access to multiple, dynamic & “value driven” travel packages

IV. 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 objectivesIV. 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 RevPac, 1-to-1 and lifetime value

Get Started NOW

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

Q&A