Benchmark Hospitality

Agenda• State of the industry and

current trends

• Benchmark Hospitality performance

State of the Industry

Performance Drivers

Meetings & Planner Insights

The Digital Transformation

Industry Trends & Insights

Group has been good, not great

Group Pace Jan 2017: ▲ 2.1%

2017 Group Occupancy: ▼ 2.3%

Demand declined in:

2017 Group Mix: 32%

Group Pace Jan 2018: ▲ 1.9%

Group ADR Pace: ▲ 1.8%

of the top 25 US markets18

Reduced Business Travel

Source: STR Hotel Data Conference 2017

Conference Board Index of Consumer Confidence (1995=100)

Some of it is the Economy…

Transient: Favorable

Economic Policy Uncertainty Index

Source: policyuncertainty.com

Election

Inauguration

Supply Growth

Supply Growth

Industry Trends

OTAs

Hotel Industry is Under Pressure

Consumer Trends

AirBnB/VRBO

Political Policies Commissionable Channels

New Supply

Economic Cycles

Brand vs Independent

Industry Trends

Alternatives to Travel

Teleconference, Social Networking, Collaboration

SMALL is the new big

73%Less than 50 Rooms

42%Growth in 2 Years

Industry Trends

Concessions

Source: Cvent Planner Sourcing Report 2017

Industry Trends

Planner Personas

Source: Cvent Planner Sourcing Report 2017

Industry Trends

Planner Flexibility

Source: Cvent Planner Sourcing Report 2017

The Digital Transformation

Meetings Have Moved Online…

Even if we haven’t

67% Of the buyer’s journey is now done digitally

Online Sourcing Tool 38%

Search Engine 29%

Direct to Venue 17%

Peer Recommendation 12%

Other 4%

* Cvent Planner Report

Digital Transformation

$50M$600M

$2.4B$3.2B

$4.7B

$6.5B

$8.0B

$9.8B

$11.4B

$14.7B

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Cvent Hospitality Cloud GrowthRevenue Sourced

Benchmark Hospitality

performance

Exposure to New Organizations

300

349

49% OF UNIQUE ORGS WERE NEW TO YOU

New Orgs Repeat Orgs

Source: CSN Jun ‘17 – May ‘18

$34,856,734

$324,939,000

YOU RECEIVED 10% OF THE BUSINESS SOURCED BY THE 300

NEW ORGS

You Market

Demand Generation – RFPs

The demand you received in the last 12 months:

$312M Received

$5B went to your competitors

837K RNs$33M Non-

commissionable

$623K ITYFTY

$58M ITYFTY

Custom Data 2

YOY RFP Production

Source: CSN Data. Awarded reflects RFPs sourced in 2017 and marked Awarded

*Conversion Rate = Awarded in 2017/Submitted Bids in 2017. Does not include RFPs with Peak Room Nights > 500 (City Wides)

Time Range Total RFPs Unique RFPs Room Nights RFP ValueUnique Planner

Orgs

New Planner

OrgsAwarded RFPs

Awarded Room

Nights

Awarded RFP

Value

Jun '17 - May '18 4,116 3,808 837,250 $312,911,665 649 300 285 38,452 $13,675,615

Jun '16 - May '17 3,361 3,119 705,180 $239,486,978 608 293 240 28,102 $12,072,893

% Change YOY 22.5% 22.1% 18.7% 30.7% 6.7% 2.4% 18.8% 36.8% 13.3%

Demand Generation

How did your perform against your competitors?

Ahead21%

Behind69%

Fair Share10%

RFP Share

Demand Generation

21% Ahead

55% Gaining

45% Losing

69% Behind

50% Gaining

50% Losing

10% Fair Share

50% Gaining

50% Losing

Future demand pace

Demand Management – Own your

business

Win more – Lead Response

Performance Metrics

Demand Management

Own your Group Business

How did your hotels respond?

Response Time

Bid Rate

Response Time

20%20%

18%

12%

8%

5%4%

10%

0%

5%

10%

15%

20%

25%

1 2 3 4 5 6 7 8 or More

% o

f A

wa

rde

d P

rop

osa

ls

Rank of Awarded Proposal

Awarded Proposals 2008-YTD 2017 on the Cvent Hospitality Cloud

RESPONSE TIME RANK 1 2 3 4 5 6 78 or

MORE

% OF CONFIRMED BIDS 20% 20% 18% 12% 8% 5% 4% 10%

BID RATE

MORE POWERFUL METRIC!

CONVERSION

Slightly Improving Your Bid Rate →Major Results

• RFPs Received = 400

• Bid Rate = 73.5%

• Conversion Rate = 11.2%

• Awarded Value = $1,336,595

• RFPs Received = 449

• Bid Rate = 35.1%

• Conversion Rate = 16.6%

• Awarded Value = $905,005

Hotel A

Hotel B

Own your Group Business - CSN

Response Rate Bid Rate Turned Down rateTurned Down RFPs where

Planners were Flexible

Jun '17 - May '18 95.1% 66.2% 28.9% 31.0%

Jun '16 - May '17 96.7% 67.5% 29.3% 34.0%

% Change YOY -1.7% -1.9% -1.2% -8.8%

Key Takeaways

• Group is ok, not great

• Must be proactive– it’s getting more competitive out there

• Bid more

• Invest in insight