1. Copyright © 2014, SAS Institute Inc. All rights reserved.
KELLY MCGUIRE, EXECUTIVE DIRECTOR,
HOSPITALITY AND TRAVEL GLOBAL PRACTICE, SAS
BREFFNI NOONE, ASSOCIATE PROFESSOR,
THE PENNSYLVANIA STATE UNIVERSITY
PRICING IN A SOCIAL WORLD

2. Copyright © 2014, SAS Institute Inc. All rights reserved.
@bigredkelly
CONSUMER DECISION MAKING PROCESS
DEMAND
COMPETITOR
PRICE
YOUR PRICE COMPETITOR
PRICE
YOUR PRICE
REVENUE
MANAGER CONSUMER
VALUE

3. Copyright © 2014, SAS Institute Inc. All rights reserved.
@bigredkelly
PRICE & NON-PRICE INFORMATION AT THE POINT OF PURCHASE
VALUE?

4. Copyright © 2014, SAS Institute Inc. All rights reserved.
@bigredkelly
ASSESSING VALUE: HOW DO CONSUMERS CHOOSE?
HOTEL BRAND
REVIEWS
Sentiment, Content, Language
TRIPADVISOR RANK
AGGREGATE RATING
AMENITIES
CLASS OF SERVICE
LOCATION
PRICE

5. STUDY DEMOGRAPHICS: THE LEISURE TRAVELER
49% 51%
Average Age
49.3
1-5
6+
72%
28%
Trips per year
Book online more than
80% of the time
54%
55% Read Reviews
Influenced by
Reviews
65% :

6. Copyright © 2014, SAS Institute Inc. All rights reserved.
@bigredkelly
LEISURE TRAVELER STUDY: KEY TAKEAWAYS
LEISURE TRAVELER
Reviews
Cri*cal
Nega%ve
reviews
remove
you
from
the
Leisure
Travelers
choice
set.
1
2
3
Price
Important
Price
becomes
a
factor
when
all
else
is
equal
for
Leisure
Travelers.
Ra*ngs
Influence
It
can’t
just
be
OK
–
it
has
to
be
great
for
Leisure
Travelers
to
no%ce.

7. Copyright © 2014, SAS Institute Inc. All rights reserved.
@bigredkelly

8. Copyright © 2014, SAS Institute Inc. All rights reserved.
@bigredkelly
LOYALTY PROGRAM MEMBERSHIP: BUSINESS TRAVELER
Loyalty Program Brand
% with
card
Preferred
Brand
Club
Carlson 15% -­‐
Hilton
HHonors 67% 34%
Hyatt
Gold
Passport 38% 12%
IHG
Rewards
Club 21% 11%
Kimpton
Hotels:
InTouch
Rewards 6% 2%
Marriott
Rewards 59% 29%
Starwood
Preferred
Guest 29% 7%
Wyndham
Rewards 18% 7%
I
do
not
have
any
hotel
rewards
cards 8% -­‐
2.38
Average cards held
Belong to non-brand
program
45%

9. Copyright © 2014, SAS Institute Inc. All rights reserved.
@bigredkelly
LOYALTY BEHAVIOR TOWARDS PREFERRED BRAND: BUSINESS TRAVELER
Actual Stay Behavior %
I did not stay with my preferred brand 3%
Less than 25% of the time 13%
25% to 49% of the time 32%
50% to 74% of the time 36%
75% to less than 100% of the time 13%
100% of the time 4%
HOW LOYAL
DO THEY FEEL?
HOW LOYAL
DO THEY ACT?
4.68 ON A 7 POINT SCALE
OVER 12 MONTHS

10. STUDY DEMOGRAPHICS: THE BUSINESS TRAVELER
34% 66%
Average Age
39.6
6-10
11+
47%
53%
Trips per year
Stayed 2+
nights per trip
93%
88%
80% Read Reviews
Influenced by
Reviews

11. Copyright © 2014, SAS Institute Inc. All rights reserved.
@bigredkelly
STUDY DEMOGRAPHICS: THE BUSINESS TRAVELER
Primary Industry %
Communications, entertainment & media 5%
Education 10%
Energy & natural resources 5%
Financial Services 11%
Government/Public sector 4%
Healthcare, pharma & biotech 6%
IT & technology 18%
Manufacturing 11%
Professional Services 18%
Retail/Wholesale 8%
Transportation 4%

12. Copyright © 2014, SAS Institute Inc. All rights reserved.
@bigredkelly
ATTRIBUTE IMPORTANCE
1. Review Sentiment
2. Price
3. Rating
4. TripAdvisor Rank
5. Brand
1. Review Sentiment
2. Brand
3. Rating
4. Price
5. Review Language
BUSINESS LEISURE

13. VALUE BY ATTRIBUTE LEVEL
Review
Tone
[Negative]*
Price
[$195
-­‐
$235]*
Price
[$235
-­‐
$295]
Rating
[2.8
–
3.5]*
Rating
[3.5
–
4.8]*
Review
Content
[Physical]
Review
Language
[Descriptive]*
Ranking
[Low
-­‐
Mid]
Ranking
[Mid
-­‐
High]
Brand
[Unknown
-­‐
Known]*
Brand
[Known
-­‐
Preferred]*
-­‐0.5 -­‐0.4 -­‐0.3 -­‐0.2 -­‐0.1 0 0.1 0.2 0.3 0.4

14. Copyright © 2014, SAS Institute Inc. All rights reserved.
@bigredkelly
ASSESSING VALUE
Positive + Preferred Brand + 2.8 + $195 + Descriptive = 0.87
Positive + Preferred Brand + 4.8 + $195 + Descriptive = 1.52
Positive + $195 + High Rank + 4.8 + Known Brand = 1.95
Positive + Preferred Brand + 4.8 + $295 + Descriptive = 1.25
Positive + $295 + High Rank + 4.8 + Known Brand = 0.46
Negative + Preferred Brand + 4.8 + $195 + Descriptive = 0.69
Negative + $195 + High Rank + 4.8 + Known Brand = 0.01
Positive + Unknown Brand + 4.8 + $195 + Descriptive = 0.91
BUSINESS TRAVELER LEISURE TRAVELER

15. Copyright © 2014, SAS Institute Inc. All rights reserved.
@bigredkelly

16. Copyright © 2014, SAS Institute Inc. All rights reserved.
@bigredkelly
BUSINESS TRAVELER STUDY: KEY TAKEAWAYS
Reviews
Ma9er
Business
Travelers
want
to
know
what
their
experience
will
be.
Loyalty
Ma9ers
Business
Travelers
will
put
up
with
good
enough
for
points.
Price
Ma9ers
Business
Travelers
s%ll
recognize
a
good
deal.
1
2
3
BUSINESS TRAVELER

17. Copyright © 2014, SAS Institute Inc. All rights reserved.
@bigredkelly
LEISURE TRAVELER VS. BUSINESS TRAVELER
Reviews
Ma9er
Business
Travelers
want
to
know
what
their
experience
will
be.
Loyalty
Ma9ers
Business
Travelers
will
put
up
with
good
enough
for
points.
Price
Ma9ers
Business
Travelers
s%ll
recognize
a
good
deal.
1
2
3
LEISURE TRAVELER BUSINESS TRAVELER
1
2
3
IMPACT OF USER GENERATED CONTENT ON PURCHASE DECISIONS
KELLY MCGUIRE & BREFFNI NOONE
Reviews
Cri*cal
Nega%ve
reviews
remove
you
from
the
Leisure
Travelers
choice
set.
Price
Important
Price
becomes
a
factor
when
all
else
is
equal
for
Leisure
Travelers.
Ra*ngs
Influence
It
can’t
just
be
OK
–
it
has
to
be
great
for
Leisure
Travelers
to
no%ce.

18. THANK YOU!
KELLY.MCGUIRE@SAS.COM
@BIGREDKELLY
The Analytic Hospitality Executive Blog:
blogs. sas.com/content/hospitality
*