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Why Holiday Inn is Changing

Why Holiday Inn is Changing. Strongest pipeline in 20 years High levels of brand awareness and usage 100 million stays last year. “There is no question that you either take charge of change or change will take charge of you” Kemmons Wilson Founder of Holiday Inn, 1952. Our Brand Truths.

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Why Holiday Inn is Changing

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  1. Why Holiday Inn is Changing • Strongest pipelinein 20 years • High levels of brand awareness and usage • 100 million stays last year

  2. “There is no question that you either take charge of change or change will take charge of you” Kemmons Wilson Founder of Holiday Inn, 1952

  3. Our BrandTruths Consumer Needs/Wants • Respected as adults, as real people • Manage uptime and downtime • Make conscious price-benefit trade-off decisions • Basics in place • Treated fairly • Safe choice • Trustworthy • Friendly • Honest • Unpretentious • Efficient • Real

  4. When I Am Traveling… I want a hotel that treatsme like a human being—not just a number

  5. Self-sufficiency

  6. Wellbeing • Feeling your best • Better personal health

  7. Style and Design

  8. Community • Online and offline

  9. Authenticity

  10. Championing the Real World Holiday Inn is the only mainstream hotel brand family that understands and respects the real world in which you live

  11. The Design Elements FONT COLORS MONOGRAM • Dynamic • Modern • Fresh • Energetic • Recognizable • Straight, clean lines • Friendly • Simple • Lighthearted and fun • Curvy • Fresh • Young • Down-to-earth

  12. New Signage

  13. Signature Arrival

  14. Current Standards Promote a Cluttered Look

  15. Hotels Guests Love New Service Promise – Stay Real • Be Loved • Keep Promises • Show Appreciation • Make Their Stay • Be Ready • Know our Hotel • Know our Guests • Know our Role • Act • Ask • Think • Do • Care • Notice • Connect • Listen

  16. Fin.: determine plan Finance: secure credit Finance: provide financing/collect repayments Service: Global blueprint Service: reg plan Service: train properties Ideal Timeline Would Suggest That The Repositioning Could Be Largely Completed By Early 2010 2007 2008 2010 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June Jan Case for Change DVD Owner letter Issue standards Conference Issue hallmark standards Regional workshops COMPLIANCE: signage complete Stds: endorsement Testing: hotel-level pilot testing Production rollout Legal: update UFOC Sales: new owner proposition Parity: installation of new bedding/bath (HI) Breakfast bar: rollout (EX) New uniforms: rollout QE: program update QE: train/hire QC QE: 2nd round inspections QE: socialize Basics: addressed based on QE audits Hallmarks: develop & test Hallmarks: spec & source Hallmark: mfr/Install Signs: mfr/Install Signs: prototypes and specs Signs: select vendors/pilot Communications strategy: owner/developer/consumer/internal/other stakeholders Ongoing threshold tracking/measurement

  17. There is a 4-step Rollout Process For Each Property“How To Get The New Sign” 4 INSTALLHALLMARKS 3 MEET OSATTHRESHOLD 2 INITIATE SERVICE TRAINING • Hallmarks cannot be installed until the first three criteria are met • Signs and hallmarks should be ordered at the same time • Goal is for installation to occur together, when possible 1 PASS QUALITY EVALUATION • Properties will be assessed on 12-month rolling average at initial test • A 3-mos rolling average will be used at re-test • Current OSAT threshold levels will remain in place, with ‘action required’ category being eliminated on 1/1/2010 • 80 for HI and 84 for EX • Properties must also not be in any type of default (e.g., PIP) • Properties must have implemented the new bedding standard • Training in the new ‘service culture’ must be completed by every hotel • In order to proceed in the repositioning, hotels must initiate training and complete initial phase (more details to follow) • QE will outline any necessary changesa property must make • Overall and more specifically for ‘the basics’ • Properties will be revisited at pre-defined intervals(~ every 6 mos)

  18. The Ideal Timeline Launches Full-scale By 6/2008And Reaches Critical Mass By 1/2010 2007 2008 2009 2010+ Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 4 1 Supersites 20 Pilot 228 76 New hotels 2005/2006 [old sign] 21 New hotels 2007 [temp sign] 59 149 New hotels 2007 [old sign] 107 New hotels 2008 Q1,Q2[temp sign] 9 New in 2008, Q1,Q2[old sign] 32 32 54 54 54 54 New hotels[June 08 and on] 30 47 Sunspree/Select conversions 11 294 396 298 Other existing properties [Ready now] 298 39 294 Other existing properties [Not yet ready] 98 98 20 200 450 450 450 450 450 387 Quarterly total Cumulative total 20 220 670 1120 1570 2020 2470 2857

  19. “There is no question that you either take charge of change or change will take charge of you” Kemmons Wilson Founder of Holiday Inn, 1952

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