1.6 Grow Profitable Market Share RGI (5%) 1. Our Business (40%)
Rationale
RGI premium represent our ability to drive higher RevPAR over a defined set of competitors. Growing RGI year on year, is a measure of our ability to extract more value out of the market and our customers than our competitors. Growing RGI premium demonstrates the value of our strategies to build customer preference and monetize that preference into higher topline returns over defined competitors. As EBITDA is a critical goal with higher weighting, our strategies to drive topline RGI must be profitable and drive incremental profit.
Definitions
Guiding principles
1. RGI Premium • Our RevPAR divided by compset RevPAR. An index over 100% indicates premium against compset. Less than 100% inidcates competitors have preference with customers over our hotel. • RGI premium measures brand preference and our ability to attract more revenue per available room over our competitors. A healthy prmeium is above 115%. • RGI is found on your Smith Travel Market Share report. 2. RGI Growth • Percent change between this year RGI and last year RGI. • Growing our RGI yoy demonstrates our ability to extract more value from our customer and the market than our defined competitive set. • Collective comp set growth can be a proxy for organic growth; growing RGI shows our ability to outperform organic / comp set growth. • RGI growth is found on your Smith Travel Market Share report For the 19 hotels (HJM, MAC, SLBO, SLTN, SLWZ,SLBT, SLCC, SLHH, SLMZ, SLQF, SLQH, SLUB, SBHI, SLDQ, SLGL, SLLS, HJMD, HJP, RSR) that do not have Smith Travel Market Share report, Rate Parity will be used in place of RGI goal.
In hotels’ attempt to drive RGI growth, to minimize risk and undesired fluctuations, we are setting ground rules to prevent drastic changes in the hotel’s segmentation mix: • Comp sets should consist of hotels we directly compete against for customers. The goal is to grow RGI against a proper comp set. Any comp set change is subject to the approval by EVP Revenue Optimization, Regional EVP Operations and IMBD. • Goal is to grow ‘profitable’ RGI that results in incremental profits. Do not sacrifice EBITDA for RGI gains. • Smith Travel Research (STR) reports are official measurement of achievements towards goal. • For hotels that do not have a valid STR comp set, Rate Parity will be used in place of RGI as a goal.
Scoring Mechanism
For a hotel to score points in this metric: • YTD must attain a minimum performance of 80% of the RGI goal (the target) • 80% of the target or above will incrementally receive additional score • Maximum score will be awarded for 110% and above of the target • Dec YTD score will be adopted as the 2019 BSC final result RGI Score ≥ 110% 6.0
Measurement
Every hotel has been provided an individual RGI goal, which is an improvement goal based on current RGI levels and historical growth trends. Please refer to this link for your RGI goal. Your goal is measured off your primary comp set, for hotels that have more than 1 comp set.
100% - 109% 5.0 – 5.9 90% - 99% 4.0 – 4.9 80% - 89% 3.0 < 80% 0
13
Made with FlippingBook - Online Brochure Maker