Accommodation, leisure & events management: Innovative success stories. Revamping Leaders Club: Building loyalty through loyalty. Pablo Alcácer (Leading Hotel of the World)

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Revamping Leaders Club: Building loyalty through loyalty
CIT Conference, Benidorm ‐ April 2013
Pablo Alcácer – The Leading Hotels of the World, Ltd
Agenda
• Overview Leading Hotels
• Leaders Club
• Evolution of Loyalty
• New Membership Model
• Results

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The Leading Hotels of the World
Far beyond a hotel representation company….
We provide the ultimate luxury brand affiliation, top of mind
international sales & marketing solutions and state‐of‐the‐art
distribution services.
We are the marketer for the best independent luxury hotels in
the world.
Overview Leading Hotels
• Established in 1928
• 430 Hotels/Resorts
• 300 Locations, 80 Countries
• Headquarters in New York
• 25 Regional Sales Offices
• 12 Reservation & Service
Centers
• Do for Hotels What They
Can’t Do As Well for
Themselves
• Focus on Independent‐
Minded Hotels and Travelers
Preserve,
Enhance,
Invent

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The Leading Difference
LHW Members
• Originals
• Authentic/Local
• Unique/One‐of‐a‐Kind
• Adventure/Discovery
• Hotels Define Brand
• Family‐Owned
Luxury for the Individual
Chain‐Brand Hotels
• Replicas
• Imported/Formulaic
• Consistent/Sameness
• Expected/No surprises
• Brand Defines Hotels
• Investment/Trust Owned
Luxury for the Masses
Leaders Club
• LHW Signature loyalty
program
• Two distinct level
• Yearly fee (12‐month
renewal)
• Benefits are received or
earned when booking
through LHW channels
Access
Annual fee USD 150
Unlimited
Annual fee of USD 1,200

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Enhance
What do customers want?
• Leaders Club Member Surveys
• Leaders Club Focus Groups
(New York, Paris, Tokyo)
• Luxury Consumer Groups
• Competitive Studies
Enhance (II)
• Complimentary Nights
• Continental Breakfast
• Internet Access
• Room Upgrade (incl. Suites)
• Hotel/Resort Credit
• Airport Transfers
Common to Luxury Industry?
Customers buy benefits
not features

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Enhance (III)
• New CRM Platform
– Investment needed to capture guest data
– Communication to hotel of guest preferences
– Post‐stay Guest Satisfaction Surveys
• Reinvesting 50% of fees
– Redemption to hotels of rewards nights @ NET ADR

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Invent
• Eliminate Complimentary Tier
– 100% Paying program
– Card Issuing vs. Card Usage
– Additional funding for marketing
• Reward redemption made simple
– Stay based vs. Point (Miles) based
• Hometown benefits
– Specific offers to resident members
– Provided in key cities worldwide
– Unique in industry
– Builds loyalty prior to travel
• Extension – Leading Golf Society
Invent (II)

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Traditional Membership Model
– Annual Membership Fee
• $660 per room in 2013
– Transaction Fee (per reservation)
• $10 GDS & Internet
• 10% Voice
• 7‐11% Group
– Minimum Fee = $58,500
– 4% Annual Membership Increase
Invent (III)
New Membership Model
– 2012 Pilot program (51 hotels)
– In‐house LC enrollment
– Eliminate Transaction Fees (avg. savings 40%)
– Provide 300 // Get 200.000 (potential customers)
– Corporate support (training & best practice sharing)
– Customized membership kits
Build loyalty through loyalty
Invent (IV)

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 +45% LC Revenue to hotels
(09 vs. 12’)
 +60% LC Enrollment
renewal
+50% Reward Reservations
w/ additional nights
+100 USD ADR Premium
 Over LHW as industry leader
LHW most cost effective
platform
 + RevEx
 Member retention
Member database x3 upon
global launch (target)
Results
PRESERVE
ENHANCE
INVENT

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