THE “RETURN ON OBJECTIVE” OPPORTUNITY THAT SPORTS HOSPITALITY PRESENTS. In December 2013, the official hospitality provider for Rugby World Cup 2015, Rugby Travel & Hospitality Ltd (RTH), appointed YouGov / SMG, a research agency, to undertake a project whereby the benefits of sports hospitality and in particular rugby hospitality could be measured against qualitative marketing metrics.

1. THE BUSINESS OF SPORTS HOSPITALITY
THE “RETURN ON OBJECTIVE” OPPORTUNITY
THAT SPORTS HOSPITALITY PRESENTS.

2. CONTENTS
1. Background
2. Research purpose
3. Methodology
4. Results
5. Implications
6. About

3. 1. BACKGROUND
In December 2013, the official hospitality provider for
Rugby World Cup 2015, Rugby Travel & Hospitality Ltd
(RTH), appointed YouGov / SMG, a research agency,
to undertake a project whereby the benefits of sports
hospitality and in particular rugby hospitality could be
measured against qualitative marketing metrics.
The sports hospitality industry as a whole understands the
intrinsic value of hospitality for both companies that are both
purchasers and receivers. Rugby Travel and Hospitality Ltd along
with group company partner Prestige Ticketing Limited have
strong heritage and history in the hospitality sector, delivering
successful programmes for Rugby World Cup 2007, 2011 and the
Olympics. We have collected positive sound bites and feedback
from attendees at our events for nearly a decade but it has
always been our ambition to accurately measure the benefits of
hospitality for businesses. In a modern, financially accountable
business climate where businesses are more focussed than ever
on return of investment, we set out to identify a clear measure of
return on objective for companies that buy or attend hospitality.
The results made for compelling reading, with some long held
suspicions confirmed and some surprising results surfacing in
regards to brand loyalty and the effectiveness of hospitality
when compared to other marketing initiatives.
The purpose of this project and indeed this report is not to try
and reinvent the hospitality industry. It is our first step in putting
some solid data behind an opinion. We started with a fairly broad
view across sports hospitality as a marketing and business
development channel and then applied that to Rugby specifically
and ultimately to Rugby World Cup 2015 hospitality.
At a macro level, the report results were very positive for
the sports hospitality industry with strong evidence from our
responders that sports hospitality can augment and enhance
business development and relationship management for new and
existing clients across all industries and sectors.

4. 2. RESEARCH
METHODOLOGY
In December 2013, the official hospitality provider for
Rugby World Cup 2015, Rugby Travel & Hospitality Ltd
(RTH), appointed YouGov / SMG, a research agency,
to undertake a project whereby the benefits of sports
hospitality and in particular rugby hospitality could be
measured against qualitative marketing metrics.
This study was undertaken by SMG / YouGov. It was determined
that an online survey would be the most effective way to speak
directly to a time poor audience and would enable us to collect
honest and open opinions from a total of 500 UK companies
(x250 Buyers and x250 Receivers).
We elected to sample the views of corporate hospitality
purchasers and receivers of hospitality who had participated in
this activity in the past 12 months. In order to achieve this, the
survey was split into the two groups with quotas on company
turnover and business industry sectors applied.
Buyers and Receivers of corporate hospitality were asked to
measure corporate hospitality and other marketing tools against
the following metrics. These metrics were chosen as the most
measured and most sought after objectives when undertaking
key marketing and business development initiatives:
• Business Relations
Improved personal relationships between your business
and your clients
• Brand Value
Increased brand value amongst your clients
• Brand Loyalty
Increased brand loyalty from your clients
• Business Spend
Increased spend on your services from your clients
• Recommendation
Increased likelihood your clients will recommend you to others

5. Corporate Hospitality Buyers
Sample 250
Criteria
- Turnover £5 million
- +1 Emplo
50 in Financial Sector
75 in Business Sector
125 in sectors that purchase
corporate hospitality
Corporate Hospitality Receivers
50 in Financial Sector
75 in Business Sector
125 in sectors that purchase
corporate hospitality
Sample 250
Criteria
- Turnover £5 million
- +1 Employee
- Public sector
screened out
250 UK
Companies
250 UK
Companies

6. 3. RESEARCH RESULTS
The first step in our study was to develop an understanding
of the sports hospitality market in general and how these
events worked for business from a marketing perspective.
3.1 Corporate Hospitality and International
Rugby Union matches
As part of our survey we asked RECEIVERS of corporate hospitality:
Which marketing tool is most effective for businesses at
driving brand metrics?
UK senior managers stated that of the marketing tools at a business disposal,
the following activities achieved a rating of ‘very or quite effective’:
The results were resoundingly positive for Corporate Hospitality, with it
out performing all other marketing activity for key marketing objectives
like increasing brand loyalty, recommendations and brand value.
83%
57%
40%
70%
37%
52%
IMPROVING BUSINESS RELATIONS
INCREASING BRAND LOYALTY
INCREASING RECOMMENDATIONS
INCREASING BRAND VALUE
INCREASING BUSINESS SPEND
69%
39%
44%
68%
37%
61%
63%
38%
47%
advertising,
online and print
telephone
calls
corporate
hospitality

7. 3.1 Corporate Hospitality and International
Rugby Union matches
We then asked BUYERS of corporate hospitality specifically about Rugby Union:
How effective is corporate hospitality for buyers of corporate
hospitality at international rugby union matches?
UK buyers of hospitality, when asked, stated that the corporate hospitality at
international rugby union was ‘very or quite effective’ at:
As has been the perception at the outset of our research, “Improving business
relations” is easily the most effective role of hospitality. Being able to spend
quality face time with your most valued clients is the best way to improve your
relationship and drive increased loyalty and consideration.
After establishing that hospitality delivers Improved Business Relations we decided
to delve deeper into the audience experience and see if there was any preference
towards a specific type of sport hospitality that they would consider purchasing
over the next 12 months.
At which of the following events would you consider purchasing
corporate hospitality for a client?
International Rugby Union matches were by far the most popular hospitality
purchase with 41% of responders indicating their interest in purchasing hospitality
for this type of sport in the next 12 months.
89%IMPROVING BUSINESS RELATIONS
INCREASING RECOMMENDATIONS
INCREASING BRAND VALUE
INCREASING BRAND LOYALTY
INCREASING BUSINESS SPEND
59%
57%
52%
50%
41%INTERNATIONAL RUGBY UNION
CLUB FOOTBALL MATCH
INTERNATIONAL FOOTBALL MATCH
HORSE RACING
TENNIS
36%
24%
22%
20%

8. 3.2 Corporate Hospitality at RWC2015
After the strong results in favour of hospitality, and Rugby in particular, we asked
our audience specifically about their opinion on Rugby World Cup 2015 Official
Hospitality. The same sample was used across both Receivers and Buyers of
hospitality, and the questionnaire focussed on the benefits of hospitality from
a marketing objectives perspective.
How effective would corporate hospitality would be for buyers
of RWC 2015 corporate hospitality?
UK buyers of hospitality when asked stated that the corporate hospitality
at international rugby union was ‘very or quite effective’ at:
How effective do you think purchasing corporate hospitality for
the RWC 2015 will be?
UK buyers of hospitality stated that the corporate hospitality at RWC 2015 would
be ‘very or quite effective’ at achieving the following marketing objectives:
International Rugby Union matches were by far the most popular hospitality
purchase with 41% of responders indicating their interest in purchasing hospitality
for this type of sport in the next 12 months.
93%IMPROVING BUSINESS RELATIONS
INCREASING BRAND LOYALTY
INCREASING RECOMMENDATION
INCREASING BRAND VALUE
INCREASING BUSINESS SPEND
86%
83%
82%
71%
81%IMPROVING BUSINESS RELATIONS
INCREASING BRAND VALUE
INCREASING BRAND LOYALTY
INCREASING BUSINESS SPEND
INCREASING RECOMMENDATION
64%
61%
57%
56%

9. 4. WHAT DOES THIS
MEAN FOR SPORTS
HOSPITALITY
The benefits of sports hospitality for both audiences that
buy and receive the experience is clear. Selecting the right
event and matching this to an audience offers brands the
chance to spend quality face time with new and existing
clients and develop stronger relationships against the
backdrop of world class sport with first class service.
According to our audience, what is most important is the ability
for Sports Hospitality to deliver a “Return on Objective” and
not just a “Return on investment”. Many of the benefits of
sports hospitality cannot be measured in a simple calculation of
investment vs revenue generated. It is important to be aware of
the qualitative measurement of activities like sports hospitality.
The measures that seem to resonate with survey participants
include both branding and positive sentiment, which according
to our research are affected greatly by sports hospitality and
in particular Rugby hospitality. The ability to spend up to six
hours with your most important clients, at the biggest sporting
events in the finest hospitality experiences should not be
underestimated.

10. 5. ABOUT
Rugby Travel & Hospitality Ltd is the exclusive provider of
official hospitality for Rugby World Cup 2015 TM©
RWC Ltd
1986
SMG Insight is an independent research consultancy specialising
in the business of sports and sponsorship fields. The company
has many years of experience of working in the rights marketing
environment, and in the development and application of
sponsorship valuation models.
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the prior written permission of SMG Insight Limited. Written
permission must be obtained before any part of the report is
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reserved by SMG Insight Limited.
The opinions, conclusions, projections, evaluations and estimates
in this report are based on more than 40 years of experience in
the media, sports and lifestyle research industry. However, whilst
great care has been taken in the preparation of this document,
SMG Insight cannot guarantee the accuracy of the information
contained herein and disclaims all liability for any loss or damage
from reliance there upon.