1.5 Drive E-direct (5%) 1. Our Business (40%)
Rationale
E-direct channels have been identified as our most profitable and efficient channel. In Jul – Dec 2018, our combined average contribution of the E-direct channel was 13.4%, compared to our competitor benchmark of 14% and same period previous year 9.8%. We have identified book direct as our company-wide strategic initiative and this year we want to focus on the E-Direct business under Retail segments. With all the investments enhancing digital platforms, marketing and loyalty programs, our hotels should be able to increase their share of E-direct business and drive more profitable business.
Definitions
Guiding Principles
1. E-direct channels • Desktop and mobile website – Shangri-La.com, Hoteljen.com • Shangri-La app • WeChat Interfaced Platforms • E-Partnership, e.g. Fliggy
In hotels’ attempt to drive E-direct, to minimize risk and undesired fluctuations, we are setting ground rules to prevent drastic changes in the hotel’s segmentation mix: • Share is calculated based on Retail & Discount market segments to make sure hotels spend their effort to push the right segments • Hotel’s monthly E-direct share shall be reported and monitored by SLIM Revenue Optimization team monthly • Hotels are expected to maintain a steady uptrend on the E-direct share instead of taking drastic measure to push E-direct business in a particular period • Hotels will be given discipline goals on rate parity which will help drive the E- direct share • For potential ways to increase your share of e-direct. Details will be shared later. • This document will be constantly updated by HQ digital marketing team and should be followed in conjunction with the revenue optimization teams strategies For a hotel to score points in this metric: • YTD growth (YTD – 2018 E-Direct) must attain a minimum performance of 80% of the “2019 Growth Target” • 80% of the growth target or above will incrementally receive additional score • Maximum score will be awarded for 110% and above of the growth target • Dec YTD score will be adopted as the 2019 BSC final result E-Direct Score ≥ 110% 6.0 Scoring Mechanism
2. Retail and Discount room revenue • Retail & Discount room revenue in constant USD for 1 January 2019 – 31 December 2019, as reported on Blueprint, submitted by 7 January 2020 • Retail & Discount segments (under TravelClick Demand 360 definitions) include
Market Segments Public Rates (RAC) Packages (PKG)
Market codes ADV, SMR, RKO
PBC, PCS, PVR, PKG, PGL, PKO
Wholesale Online (IWS) Negotiated Rates (COR)
IWS COT LSG
Long Stay (LSG)
Individual Others (OTH)
OTH, GCR
• For monthly reporting, actual Retail & Discount room revenue in constant USD submitted and made available on Blueprint by 7 th day of the following month
3. Retail and Discount room revenue generated via E-direct channels • Retail and Discount room revenue in constant USD for 1 January 2019 – 31 December 2019 generated from E-direct channels as reported on Blueprint, submitted by 7 January 2020 • For monthly reporting, actual Retail & Discount room revenue generated via e-direct channels in constant USD submitted and made available on Blueprint by 7 th day of the following month
4. E-direct share • E-direct share = Retail & Discount room revenue generated via E-direct channels ÷ Total Retail & Discount room revenue
100% - 109% 5.0 – 5.9 90% - 99% 4.0 – 4.9 80% - 89% 3.0 < 80% 0
Measurement
Every hotel is provided an individual E-direct share target, which is an improvement goal based on their actual 2018 E-direct share of Retail & Discount room revenue. “2019 Growth Target” (i.e. 2019 E-direct Share Target – 2018 E-Direct) per hotel can be found in this link. 12 “YTD Growth Target” is provided for easier tracking (i.e. 2019 Growth Target divided into 12 months and by Dec, hotels are expected to achieve their “2019 Growth Target”).
12
Made with FlippingBook - Online Brochure Maker