HTNG Executive Briefing Session

1. HTNG Executive Briefing Session For Technology and Distribution Vendors 9 July 2003

2. Conference Call Agenda • Introduction • Discussion of HTNG History and Mission • HTNG Governance Structure • Specific HTNG Objectives for 2003-2004 • Hotel Membership and Participation Guidelines • Vendor Membership and Participation Guidelines • Media Activities • Next Steps • Q&A Vendor Executive Webcast

3. Introduction • Presenters • Audience • Acknowledgments Vendor Executive Webcast

4. Code of Conduct Trade associations are perfectly lawful organizations. However, since a trade association is, by definition an organization of competitors, HTNG officers and members must take precautions to ensure that we do not engage in activities which can be interpreted as violating existing anti-trust or anti-competitive agreements in various parts of the world. For any activity which is deemed to unreasonably restrain trade, the association and its members may be subject to legal penalties, regardless of otherwise beneficial objectives. To ensure that we conduct all meetings and gatherings in strict compliance to any such laws and agreements in any part of the world, the HTNG Code of Conduct is to be distributed and/or read aloud at all such gatherings. There will be no discussion of room rates, surcharges, conditions, terms or prices of services, allocating or sharing of customers, or refusing to deal with a particular supplier or class of suppliers. Neither serious nor flippant remarks will be permitted. Because the members of the organization are expected to behave professionally at all times, which includes acting in accordance with all applicable laws, negative, disparaging or discrediting comments regarding other members, corporations or competitors, or their goods or services, will not be tolerated. HTNG may not issue recommendation on any of the above subjects or distribute to its members any publications concerning such matters. No discussions which directly or indirectly fix purchase or selling prices may take place. Standards or certification requirements for membership must give equal conditions to all similar parties. All HTNG related meetings shall be conducted in accordance with a previously prepared and distributed agenda. Actions inconsistent with the above terms will be considered violations of this Code of Conduct. The Board of Directors reserves the right to take whatever actions it deems necessary to ensure compliance with this Code. Vendor Executive Webcast

5. Brief History • Conceived by a group of hospitality-industry technology influencers at HITEC 2002 • Executive Board of hotel executives appointed December 2002 • Mission statement developed January 2003 • Officers elected March 2003 • Executive advisory group appointed March-June 2003 • 2003-2004 objectives established at board meeting at HITEC 2003 Vendor Executive Webcast

6. Why HTNG? Despite the best efforts of many vendors, hotels require far better integration of vertical applications • 80+ applications – no vendor supports more than a handful • Functional, transaction-oriented processing – little or no customer centricity • Poor support for non-room products • Historically, integration efforts have been dismal failures Vendor Executive Webcast

7. Why HTNG? • Poor exploitation of modern technology platforms (as opposed to tools) by hotel companies • Leads to poor support of modern platforms by technology suppliers • “Platform independence” is a marketing myth • Chicken and egg problem – need to create a forum for agreement • Substantial holdback of capital spending by most hotel companies vs. requirements Vendor Executive Webcast

8. How Will HTNG Help? • By providing leadership and a common voice • For customer (hotels) to describe their needs and frustrations to technology vendors • By establishing a forum for sharing of best practices in systems interoperability • By establishing core architectures and platforms that • Hotel companies can install and support, or contract with third parties to operate • Provide a common, known environment for application providers to write to, test, document, and support • Provide common services to applications, so that vendors can focus on core business-logic competencies • Facilitate information exchange and consolidation across time, geography, and application Vendor Executive Webcast

9. HTNG Mission Statement HTNG will facilitate the creation of solution sets forhospitality that: • Are modeled around the customer, and allow for a rich definition and distribution of hotel products, beyond simply sleeping rooms • Comprise best-of-breed software components from existing vendors, and enable vendors to collaboratively produce world-class software products encompassing all major areas of technology spending: hotel and leisure operations, telecommunications (PABX), in-room entertainment, customer information systems, and electronic distribution Vendor Executive Webcast

10. HTNG Mission Statement • Properly exploit and leverage a base system architecture that provides integration and interoperability through messaging; and that provides security, redundancy, and high availability • Target the needs of hotel and leisure companies up to several hundred properties, that are too small to solve the issues themselves • Will reduce technology management cost and complexity while improving reliability and scalability • Can be deployed globally, managed remotely, and outsourced to service providers where needed. Vendor Executive Webcast

11. What is a “Solution Set?” • A set of integrated software products from one or many vendors that • Addresses a defined set of needs for a target market or business problem • Properly leverages a modern, common base platform • Operating system and network architecture • Database environment • Deployment model • Common platform services (office automation, messaging, directory services, security, management) • Can be operated either in-house or by a third party Vendor Executive Webcast

12. What HTNG is Not • A standards body • Solution set(s) may create de facto standards, but HTNG does not intend to dictate them • Suppliers can make their own business decisions whether and which standards to adopt • HITIS, HEDNA or HFTP • A pressure group • A think tank • Targeted at the needs of all hotels • Focus is below megachains and above independent hotels Vendor Executive Webcast

13. Governance • HTNG founders concluded that change could be driven ONLY by hotels • They appointed an initial executive board consisting entirely of hotel senior technology executives • The board itself adopted a governance structure that continues to reflects this requirement • Only hotel company executives can be elected to board positions • Six initial board members, with several candidates seeking two open positions • Vendors, consultants, academics, media, and others will have productive and active roles • But cannot hold board positions Vendor Executive Webcast

14. Governance • Board of Directors • Gebhard Rainer – President (Hyatt International) • Mark Hedley – Vice President (Wyndham) • Matthew Dunn – Secretary/Treasurer (Intrawest) • Glenn Bonner (MGM Mirage) • Kathleen McIntee (Destination Hotels & Resorts) • Nick Price (Mandarin Oriental) • 2 open positions • Executive Advisors • Daniel Connolly (Univ. of Denver) • Jon Inge (Jon Inge & Associates) • Doug Rice (Stratus Management Group) • Mac Smith (Plexus Partnership) Vendor Executive Webcast

15. Membership Structure • Regular Members • Organizations that actively provide hospitality services to end consumers as a primary business, or individuals currently employed by such organizations. Organizations are to be represented by individuals who have technology-related responsibilities. • Industry Partner Members • Organizations who provide technology and/or distribution-related products and/or services to the hospitality industry • Allied Members • Individuals whose interest in the industry is fundamentally informational rather than economic, including specifically but not limited to students, academics, and media representatives; but specifically excluding individuals who qualify for other membership categories Vendor Executive Webcast

16. Hotel Membership Participation • Targeted at decision makers and influencers for technology acquisition • Technical • Business • Per-person membership fee ($195/year) • Membership provides • Opportunity to work collaboratively in defining platforms and facilitating inter-vendor communication • Early awareness of and access to inter-vendor capabilities created by HTNG-driven activities Vendor Executive Webcast

17. Vendor Membership Participation • Open to all ($1,500/year per company) • Membership entitles vendors to • Pre-publication access to results of customer/vendor workgroup efforts • Publicity through HTNG of their commitment of the effort • Use of HTNG solution set “endorsement(s)” based on compliance with workgroup-established guidelines • Active participative roles by vendors will require adherence to “good citizen” rules • To be modeled on similar successful efforts in other industries and technology spaces, e.g. The Open Group • Will be communicated in greater detail during August 2003 Vendor Executive Webcast

18. HTNG 2003-2004 Action Proposal • Identify core hospitality-industry technology and distribution vendors • Review HTNG mission and implications with senior vendor executives (today) • Obtain startup funding through vendor membership drive • Finalize and communicate the workgroup process model during August 2003 • Provide key communications about HTNG in the context of the CIO Summit in early September • Seek vendor commitment to public support of HTNG via press releases during the first two weeks of September, 2003 Vendor Executive Webcast

19. HTNG 2003-2004 Action Proposal • Charter specific workgroups with defined objectives and timeframes (3-12 months) at Board Meeting during September 2003 • Form customer-vendor workgroups for one or more technology architecture problem sets • Facilitate initial working sessions 24-26 September • Defined missions • Target outcomes that are achievable in a time period of three to nine months Vendor Executive Webcast

20. HTNG 2003-2004 Action Proposal • Publish workgroup working papers and outcomes in a forum available to all HTNG members, beginning immediately after the September sessions • Non-members will receive this information only in synopsis form and only after the workgroup has completed its task • Members will have ongoing access to working papers throughout the process • Launch full-scale membership campaign(s) beginning in October, 2003 • Deliver first integrated applications from workgroups prior to HITEC 2004 Vendor Executive Webcast

21. Vendor Action Steps - #1 • Join HTNG • Provide contact & full company information • E-mail to ‘membership@htng.org’ if invoice is required • Or send check via snail mail to HTNG address, payable to “Hotel Technology-Next Generation” • Electronic enrollment will be available by 1 September at http://www.htng.org/ • Vendor site will be added to HTNG Vendor Members roster • Add HTNG logo/link to your site Vendor Executive Webcast

22. Vendor Action Steps - #2 • Publish press release supporting HTNG & workgroup process • Requested of vendors that regularly issue press releases • Others can use alternative communication modes such as a letter to customers or prominent website posting • Requested release dates: 3-12 September • HTNG will supply boilerplate, which can be adapted as desired • Further media coverage to be arranged by HTNG Vendor Executive Webcast

23. Vendor Action Steps - #3 • Architect or Senior Technologist Participation in Integration Workgroups • Interested vendors should e-mail contact details to ‘workgroups@htng.org’ • Size, makeup and participation • To be limited according to practices adopted from similar organizations • Kickoff September 24-26 • Chicago area, details TBA Vendor Executive Webcast

24. HTNG Contact Details • Web site: http://www.htng.org/ • Membership questions: membership@htng.org • Mailing address:Hotel Technology-Next Generation 2275 Lake Whatcom Blvd, PMB-223 Bellingham, WA 98226 360-715-8741 Vendor Executive Webcast