Mortgage: Business Model

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Tim Peter Cendant Hotel Group Using the Internet
to Engage Consumers
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Agenda

• Why Cendant Hotels?
• Why focus on engagement?
• What is CHG doing?

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Cendant Hotel Group
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Hotel Group overview

• Hotel Group booked 4.3 million rooms by
  telephone, 8.3 million rooms by e-commerce and 2
  million by global distribution systems in 2005

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Brand Web sites

• Hosted 40 million unique visitors in 2005 who
  booked 300 million in gross revenue
• Largest central reservations channel
• Third-party recognition
• Most visited hotel Web sites (comScore, March
  2006)
• Lodging Hospitality 2002 Chain Leadership Award
  for Technology for booking engine redesign 

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Why engagement matters

• Loyal and engaged customers
• Stay more often up to twice as many purchases
  (nights)
• Spend more money
• Shop around less

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Consumers shop mercilessly

• Consumers seek value
• Customers start their research on a travel
  aggregator site
• Aggregators serve as search engines
• Property sites (ideally) serve as find engines
• Hours and days are spent researching travel
  online
• All share information with other consumers
  (guests)
• All compare products (hotels)

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Framework for engagement Hotel space

• Collection of brands that they trust
• Location/proximity
• Price/value
• Objective information
• Amenities offered
• Definitive quality ratings
• Will I like it when I get there?

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Travelodge
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Travelodge Search
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Property Merchandising Before
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Property Merchandising After
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E-Commerce engagement

• Think about the end use
• Will I like it when I get there?
• Will I like it when I get it home?
• Answer the consumers questions
• Price/value
• Allow consumers to easily assess value of product
• Ensure objective view of information
• Clearly define quality for consumers in their
  terms

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Friend or foe?
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Tim Peter Director, Internet Product
Development Cendant Hotel Group
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RSS Friend?

• Provide greater distribution
• Require guest to care enough to engage
• Keep brand in front of guest

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RSS Foe?

• Is this the right way to represent a brand?