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Crown Hotel Programme (CHP) Year 2
Kate Wimpeney
Director of Commercial Operations
Today’s Agenda
• 10:30 Welcome & CHP UK
• 11:00 International CHP - HRG
• 11:45 Host hotel presentation & Q&A
• 12:00 Show rounds of hotel and light lunch provided by venue
• Showarounds of local hotels arranged
▫ Here, Millennium Baileys, BW Cromwell, Park
International, Radisson Edwardian Blu Vanderbilt,
• 13:00 HRG guests depart for shawarounds
• Return from lunch for Redfern guests
Agenda
• What is CHP, and what are the benefits?
• The CHP process
• Minimum standards and other considerations
• Rate terms
• Vital statistics
• How to identify Crown rates
• On-going management
• Market performance
• News from the chains
• Market predictions
• Continuous improvement
What is CHP?
• CHP scope was top 75% of locations’ consolidated spend
• It’s the 1st non-commissionable Government hotel programme
• It balances consolidation opportunities with volume delivery and coverage
• RfP once a year, but responsive and ever changing
• Guarantees a number of rooms available at this rate in busy markets
• Flexible cancellation terms
• Breakfast included in most rates (with a few exceptions) – mainly serviced
apartments & Tune Hotels
CHP Benefits
For the department
• Government now buying as one
customer
• Aggregated £ and volume to
ensure lowest rates
• Consistent rate delivery
• Focus on key locations
• Fully supports delivery of
Procurement Policy Principals of
£75/£115
• Aids budgeting
For the traveller
• Consistency of product
• Rate expectations met
• Choice in key areas
• Flexible terms
• Good availability
• Hotels all now familiar with
CHP and requirements
• Fewer payment issues on check-
out
The CHP Process
• Data is collated from both agents and the top 75% of common locations
form the backbone of CHP
• Areas specific to only one agents receives key focus
• Likewise high volume requirements specific to only one department will
be identified and incorporated
• The RfP is issued annually in December so loading can begin as soon as
possible in the New Year for minimal ‘downtime’
• Hotels are selected based on rate, minimum standards, rate terms and
conditions, and a quantifiable demand has been identified
CHP Minimum Standards
• Lockable door and peep hole or door chain • En-suite facilities including shower or bath • Tea/coffee making facilities • Television and remote control • Wardrobe/hanging space • Work area and chair • Non smoking room • Rooms guaranteed for late arrival • 24hr security cover and/or procedures • 24hr reception/concierge cover • Easily accessible dining for breakfast & evening meal • Ironing facilities • Hair drying facilities • Adjustable temperature control/solution
Additional criteria
• Hotels nearest departmental locations are selected where possible
• Proximity to mainline & tube stations
• Ensure event lead cities can still support the demand at peak times
• Value adds and guest comfort - free wifi, food and beverage offers
• GDS connectivity for instant availability and confirmations is desirable
• Established relationship with departments is always considered
• Good track record of service
• Consistent CHP availability
Rate terms and conditions
• All Crown rates include VAT
• All Crown hotels have committed to billback to HRG and Redfern
• If the rates does not say that it includes Breakfast, then it does NOT
include Breakfast (for non-Crown content)
• Most Crown rates are cancellation on the day of arrival
• There are no early departure fees
• Rates are guaranteed for late arrival
• There will be some in more remote/rural locations – independents that
will have less flexible terms
CHP Vital Statistics
• 2159 hotels on the UK programme
• Across 754 towns and cities
• 718 hotels are cheaper this year then last
• Many rates held year 1 to year 2
• 175 hotels in London
▫ 152 rates £115/<
▫ 78 between £116 - £125
• Over half of Redfern current bookings are booked on Crown rates
How to identify a Crown Rate? You can search for just Crown hotels by
checking this box on the search screen
On the results page the 1st star
indicates a Crown hotel, the 2nd star
next to the rate name indicates Crown
rates
Always check cancellation policy in the
‘full rate information’ and ensure if
flex is required, flex is booked
On-going management
• Rate audits to ensure good availability
• Ensure only approved room types loaded
• Allocation uptake monitored
• Data share with HRG with allocation redistribution if required
• Take up any instances of reported payment challenges with hotels/chains
• Take action with hotel (block for example) if CHP availability is a
challenge
• Remove hotels from programme if measurable complaints received in a
short period
Top 20 Cities by Nights - Redfern Nights
76696
19676
17812
14673
13874
10915
13515
6774
6635
6221
6130
5697
4919
4212
4172
4049
3762
3491
3291
2976
London
Manchester
Birmingham
Leeds
Bristol
Liverpool
Newcastle
Sheffield
Edinburgh
Cardiff
Nottingham
Croydon
Glasgow
Southampton
Coventry
York
Reading
Plymouth
Blackpool
Oxford
Top 20 Cities by Nights - HRG Nights
57564
12625
11363
8380
5124
4934
4926
4398
4260
4239
4121
3383
3364
3336
3216
3015
2850
2741
2679
2633
London
Bristol
Glasgow
Birmingham
Portsmouth
Edinburgh
Cardiff
Plymouth
Liverpool
Manchester
Salisbury
Farnham
Gloucester
Leeds
Aberdeen
Exeter
Witney
Bournemouth
York
Blackpool
How is CHP Performing?
All Locations
Market
Share ARR
Advanced Non-
Flex 2% £ 73.42
BAR 26% £ 72.27
CHP 56% £ 68.37
Budget Brands 14% £ 65.89
Overall £ 70.42
Prices are excl. VAT
How is CHP Performing?
London Provinces
Market
Share ARR
Advanced
Non-Flex 2% £ 119.35
BAR 21% £ 104.54
CHP 49% £ 101.70
Budget Brands 28% £ 79.97
Overall £ 99.65
Market
Share ARR
Advanced Non-Flex 2% £ 65.29
BAR 27% £ 76.00
CHP 57% £ 61.92
Budget Brands 15% £ 56.65
Overall £ 63.48
How is the market performing?
• The expected post Olympic ‘slump’ has not manifested
• London has sustained the additional bedstock for 2012
• Business buoyant, with record occupancies in August
• Already BOB is for September and October is strong
• Rates this up in many provincial areas YOY this summer
• Aberdeen has seen the highest rate increases in the UK
• Oxford, Reading, Exeter, Peterborough,
• Worcester and Cambridge remain difficult markets to
achieve £75 B&B in
• Sheffield, Cardiff, Blackpool and Nottingham remain
softer
The Olympic hangover that never was
£-
£20.00
£40.00
£60.00
£80.00
£100.00
£120.00
£140.00
£160.00
Jan Feb Mar Apr May Jun Jul Aug
2012
2013
News from the chains
• Travelodge have completed refurbishment at over 80 hotels incl.
Covent Garden, City Road, Southwark and Waterloo
• This summer has seen the opening of 3 new hotels in Bham – Hampton
by Hilton, Holiday Inn Express and Ibis Styles
• Premier Inn announce – The Hub, ‘a new generation of compact, city
centre hotel’
• Accor opened a new Adagio (extended stay brand) in Liverpool
• Ibis Euston – communal area refurbishment complete
• Travelodge have opened London Vauxhall – 148 beds
• Grange Wellington - £102 – trial until end Dec 13
• London Indigo Kensington opened Dec12
Market Predictions
• We will not see any softening in the London market now until Jan
• Hotels in the capital will be looking to increase rates next year to
regain ADR
• £75 will become even more challenging in the key provincial areas
that have performed well in 2013
• The new openings in Bham, Ncastle, Sheffield, Lpool will see rates
remain lower
• Departments will need to exclude hotels previously used to drive
down ARR with some ‘favourites’ exceeding budget in buoyant
provincial locations