FamEx Playbook Data Insights

Data Insights

FamEx Playbook 1.0

Why is family travel an important focus for Shangri-La Group?

A recently published Skift Research Take found that the majority of millennial travelers have taken a family leisure trip in the past 12 months

Millenial Parents: The New Generation of Family Travel 2/26/2020

Some of our hotel are delivering excellent experiences to family travelers

Millennial parents tend to also have a higher household income

Millenial Parents: The New Generation of Family Travel 2/26/2020

Multi-generational family travel is becoming a significant travel trend

How are other hotel groups targeting families?

Offerings standardized across a brand and delivered consistently presents an opportunity to make a brand promise to families and be known for it, market, storytell and position ourselves as leaders in this space COMPETITIVE LANDSCAPE

HOTEL BRAND

Rose Buds ®

Family Traditions Kids for all Seasons

ROSEWOOD FAMILY TIME

PROGRAM

Globally consistent, offered in all hotels ; branded Experience around 4 pillars: Land, Water, Environment responsibility, & Culture Comprehensive consumer journey

Global program but kids club only offered in select hotels Branded kids amenities & menu in all hotels

Rose Buds is a children’s program offered across all hotels Program built to inspire 5 senses & experience local environment & culture Family Time is a new program offered in selected hotels to build family bonding

Program & activities tailored to each destination

Global program

Global program , launched in 2019 in selected hotels Program & activities around five pillars : Time to MOVE; Time to PLAY ; Time to QUEST ; Time to CELEBRATE; Time to CARE

•

• •

•

Program & activities tailored to each destination

•

Program includes for younger children and for family

•

Activities vary by hotel

•

COMPONENTS

•

Activities vary by hotel

•

Activities vary by hotel

•

ST. REGIS

CLUB MED Amazing Family

Shangri-La Group FamEx Business Insights

A family traveler’s ALOS is 2.5 days vs an average traveler with 2 days

Family Business Source Markets (2019)

2019 Family Rooms Revenue by Source Market% [yoy%]

2019 ADR and Average Length of Stay (ALOS) for Each Source Market

600

6.0

ADR - USC AFR-Night(USC)

ALOS

Others, 11%

5.1

4.8

China, 25%

500

5.0

4.3

4.1

(+5%)

3.8

3.6

400

4.0

2.5 2019 Average Length of Stay (vs. 2.0)

3.3

(-12%)

3.1

2.8

2.7

Malaysia, 2%

2.6

300

3.0

2.1

2.0

Australia, 9%

1.9

1.8

USA, 4%

200

2.0

(+17%)

Philippines, 5% HK, 4%

(+2%)

100

1.0

(+1%)

S. Korea, 9%

177 199 202 304 271 217 217 235 298 133 228 311 193 244 211 346 390 313 294 164

Singapore, 5%

0.0

(+12%)

UK, 6%

(+14%)

Japan, 6%

(-2%)

(-6%)

(+21%)

Opportunity for Growth: 1.

Key Source Markets : • Top 20 Source Markets Contribute 88.9% of Family Rooms Revenue • China alone contributes 25% of Family Room Revenue, followed by: AU (9%), KR (9%), UK (6%), JP (6%), SG (5%) • China should be our first focus, because of our footprint (>50%) and the domestic travel trend growth is strong • Other markets to explore include UK, EU countries, USA, Saudi Arabia, Russia that have long ALOS and higher ADR

Extend ALOS: Occupancy Shangri-La Family ALOS is better than average guest (but lower than China inbound average of 7.93 days, based on forward keys for ALL travellers).

Target Growth Market: China travelers

Target “higher ADR + higher ALOS” source markets

Source: BluePrint (USD Constant, FY2018, All Hotels);

Family travelers represent

7% of Shangri- La Group’s rooms revenue

but

9% of total overall revenue

Family traveler ADR is 1.4x higher than an average traveler’s ADR

Families typically book 37 days in advance, vs 17 days for an average traveler

Securing an increase in family stays will directly impact a hotel’s EBITDA

Credits – Data Collection and Research

Jaslin Goh

Senior Vice President – Brands Jaslin.Goh@shangri-la.com

Jacqueline Cheng

Manager. Chairman’s Office jacqueline.cheng@shangri-la.com

Odontuya Natsagdorj

Senior Manager - Investment & Asset Management odontuya.natsagdorj@shangri-la.com

Garcia Lam

Manager - Corporate Planning Corporate Planning garcia.lam@shangri-la.com

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