Revenue Management &
Distribution
Choice Hotels Scandinavia
Cenium AS
HostecLondon, February 18
Carl Oldsberg, Director of Revenue Management
Agenda
• Short introduction to Choice Hotels Scandinavia (CHS)
• Cooperation between CHS and Cenium AS
• Distribution Strategy
• Rate Strategy
• Using Cenium to support the strategies
• Future developments
• Food for thoughts
Hotels
Vilnius
Estonia
Lithuania
Tallinn
Latvia
Total 158 (20.528 rooms)
(162 incl projects)
Norway 70 (8.708 rooms)
Sweden 70 (8.289 rooms)
Denmark 14 (2.133 rooms)
Finland/ Baltikum
4 (398 rooms)
Brands
Total 158
Comfort Hotels 27
Quality Hotels 59
Quality Resorts 12
Clarion Collection 40
Clarion Hotels 20
Choice Hotels Scandinavia and Cenium
• Cooperation started in 2002
• Choice Hotels Scandinavia one of the owners
• Working in the same building
• Rolled out 102 hotels in between 2005-2007
• Currently 116 installation
DemandVolume
Weekdays
Mon Tue Wed Thu Fri Sat Sun
Capacity
0
Nu
mb
er of B
ookin
gs
Days to Arrival123456789101112
Average Pick-Up (Business Segment)
100% Demand
0
Nu
mb
er of B
ookin
gs
Days to Arrival123456789101112
Average Pick-Up (Leisure Segment)
100% Demand
Distribution Strategy
www.choice.no/se/dkwww.choicehotels.comwww.qualityresort.no/se
www.expedia.comwww.travelocity.comwww.hotels.comwww.hotel.dewww.bookings.net
On-LineOff-Line
Direct to the hotel
Dire
ct
Indire
ct
Call Center
GDS
Dire
ct
Indire
ct
34%
15%30%
Off-Line On-Line
15% 6%
Dire
ct
Indire
ct
83%
2%1%
Off-Line On-Line
11% 3%
Dire
ct
Indire
ct
76%
3%4%
Off-Line On-Line
13% 4%
Dire
ct
Indire
ct
60%
12%10%
Off-Line On-Line
13% 5%
2006
2009
2007
2008
Distribution Strategy
Focus areas
• Channel conversion from traditional to our own website
• Call center
• “Picking” the optimal traffic from intermediaries
• Real time rates & inventory management through our
CRS and GDS
Rate Strategy
Facts
• First hotel chain in the Nordic region to move over to
dynamic pricing
• Over 60% of our customers will go over to dynamic pricing
during 2008
• Cenium allows different rates on different days
• Already seeing results from the switch in rate structure
• Increase Revenues by 38% while the market only saw a 8
% increase
Fixed RatesRate
DaysMon Tue Wed Thu Fri Sat Sun
Rack
Agreement
City High
Hotel High
Normal
Shoulder
Low
Dynamic Rates Rate
DaysMon Tue Wed Thu Fri Sat Sun
RackCity High
Hotel High
Normal
Shoulder
Low
BAR
Dynamic Rates Rate
DaysMon Tue Wed Thu Fri Sat Sun
RackCity High
Hotel High
Normal
Shoulder
Low
BAR
Agreement Rate
Dynamic Rates Rate
DaysMon Tue Wed Thu Fri Sat Sun
RackCity High
Hotel High
Normal
Shoulder
Low
BAR
Agreement Rate
Web
Dynamic Rates Rate
DaysMon Tue Wed Thu Fri Sat Sun
RackCity High
Hotel High
Normal
Shoulder
Low
BAR
Agreement Rate
Web
Cenium as a support to our strategies
Already developed
• One way interface
• Rate query function
• Day by day pricing
• Bucket structure
• Forecast
• Multi property function
Cenium as a support to our strategies
Future development?
• Two way interface
• Optimization system
• Integrated multi property and rate query function
• Distribution hub
• Enhanced CRS functionality
Food for thoughts
Profit
Price Index
Call CenterCall CenterHotel Website
Hotel Website
Third PartyThird Party GDSGDS
Sensitivity of Hotel ASensitivity of Hotel A
Quantity
Contrib
utio
n M
arg
in
Quantity
Contrib
utio
n M
arg
in
Call CenterCall Center
Hotel Website
Hotel Website
Third PartyThird Party
GDSGDS
• Price sensitivity
• Trade relationship
• Channel Conversion
Food for thoughts
Quantity
Contrib
utio
n M
arg
in
Quantity
Contrib
utio
n M
arg
in
Call CenterCall Center
Hotel Website
Hotel Website
Third PartyThird Party
GDSGDS
Food for thoughts
Thank You!