COTDI, ZHEANJEE G February 18, 2022

CBMEC 102 T/Th 12:30 PM-2:00 PM HCO

Identify 10 Hospitality/Tourism Companies and discuss three (3) core competencies for each company.

PART 1

1. Marriott International, Inc.

 Communication
Communication is the key to effective marketing strategy as it ensures the success of integrated marketing (Kitchen et
al. 2004). The communication principle of integrated marketing communication connects every aspect of marketing in
ensuring successful marketing in any organization. This can be achieved through a good CRM program such as an
effective salesforce.

Marriott International, Inc. operates in the lodging industry and has numerous properties in more than 70 countries
(Albee 2015). The lodging industry of the world is faced with numerous challenges that affect the profit margins of most
of the players in this industry (Cai & Hobson 2004). Some of the key competitors of Marriott include Hilton Worldwide
Holdings Inc., Accor Hotels, and Intercontinental Hotels Group Plc (Aaker, Kumar & Day 2004).

Despite this, Marriott Inc. has gained a large market share in the global loading industry (Marriott News Center 2015).
Such success in an environment full of numerous players and challenges is attributed to the organization’s effective
marketing communications practices, which ensure that the company’s customers are retained and served a variety
of quality products and services according to their needs and demands (Brier 2016; Boone, Kurtz & Sandburg 2008).

Covey (2016) noted that Marriott runs more than 3000 properties in over 70 countries with its focus being to satisfy high-
end and luxury customers as shown in appendix A. To ensure the success of all these brands, Marriott has effective
communication strategies among its departments as well as for its management. Additionally, the company ensures
high priority is given to its employees and customers for a chance to ensure effective customer service and customer
satisfaction (Marriott International, Inc. 2010). As such, the company has a rewards system for its loyal customers, which
increases the rate of customer retention in Marriott’s facilities.

The rewards systems of Marriott comprise of redeemable points that subscribed members earn upon staying in the
company’s facilities. Such an approach is considered a marketing strategy and is communicated openly in marketing
campaigns, surveys as well as in any other promotional material. The use of a reward system has been successful in
attracting customers as well as in retaining existing ones given that there are more than thirty-five million subscribed
members of the Marriott Rewards program. According to recent statistics of Marriott’s profitability, the rewards program
contributes immensely to the company’s total profit margins.

Marriott puts a lot of effort into its marketing strategies by ensuring the availability of sound marketing communications
practices that serve to create awareness of the company’s brands and attract new and retain existing customers.
Marriott uses various promotional avenues such as websites and the availability of an active global sales office to
coordinate the company’s operations.

Theoretical principles of Integrated Marketing Communications

Several studies have been carried out to examine the emergence of Integrated Marketing Communications (IMC)
following the increased use of IMC among many businesses all over the world (Clow 2010). The adoption of the
Integrated Marketing Communications was based on the need to provide alternative approaches to marketing other
than the obvious advertisement, as well as ensure branding is more powerful and tactically strong (O’Guinn, Allen
&Semenik 2009).

This is attributable to the fact that the adoption of IMC allows marketers to integrate numerous marketing
communication strategies in a single container with the aim of effective development of brand equity (Bowen 2016).
Kliatchko (2008) noted that it does not qualify as a marketing strategy rather it provides an avenue for the delivery of
any given marketing strategy adopted in an organization. Four core principles used in integrated marketing
communications include consistency, community, cooperation, and communication.

Marriott is using mobile messaging to transform visiting a hotel

Connections are made instantly.
Is There Anything Else I Can Request on My Phone? The Marriott Hotels app now has a chat feature that allows
travelers to communicate with Marriott Hotel personnel instantaneously. A drop-down menu featuring the most
often requested services and amenities, such as extra towels and pillows, is also included in Mobile Request.

The Mobile Request service, which launched yesterday at 46 hotels, is designed to make it simple for guests to
request services and amenities through their mobile device. It will debut this summer in 500 Marriott Hotels around
the world, followed by more Marriott International brands after the Marriott Hotels rollout is complete.

To promote the new service, Marriott organized a promotional event in New York, surprising residents with gifts and
services requested via Twitter.
Implementation of global communications
According to Marriott, the mobile chat approach is the largest worldwide communications rollout of its type in the
hotel business.
Marriott Rewards' 50 million members will be able to use the service.
Members who have a future reservation will be able to contact with their hotel via the two-way chat feature,
which will allow them to have real-time chats with staff who can fulfill and confirm their demands. Members of the
loyalty program who have made a reservation can order services and amenities through their mobile devices up
to 72 hours before their arrival.
According to Marriott, tests of the new service show that it is useful for travelers who want to request things like
having a vehicle service meet them at the airport.
According to the hotel chain, 80 percent of visitors who made over 10,000 Mobile Requests during testing chose
the Anything Else? option. Option for a two-way conversation.
 Thinking
Several researchers and scholars have noted that the use of the approach of integrated marketing communications in
the marketing process of many companies is very significant as far as achieving organizations’ marketing goals is
concerned (Madhavaram, Badrinarayanan & McDonald 2005; Moriarty, Mitchell & Wells 2012 ). This is attributable to
the fact that the integrated marketing communications approach can help the delivery of marketing strategies of
concerned organizations (Bin & Chongqi 2015). In the case of Marriott, integrated marketing communications can
improve the planning and implementation of future marketing strategies in the company in some ways.

IMC lays out the pathway to ensure that any given company operates in line with its objectives, goals as well as mission
statement (Eagle, Kitchen & Bulmer 2007). As such, the adoption of integrated marking communications at Marriott will
ensure that the company is consistent in its actions, tasks, goals, and quality of products. Blankson et al. (2013) asserted
that the IMC approach is important in the development of a company’s brand and thus, its adoption at Marriott will
ensure that the marketing strategies of the company are focused on brand equity and development.

The implication is that the planning and implementation of future marketing activities in the company would be
geared towards consistency, effective communication, creation of a robust customer base and enhancing
cooperation among the necessary stakeholders to ensure the achievement of the organization’s marketing goals and
objectives (Challagalla, Murtha & Jaworski 2014). Kailani (2012) asserted that the integrated marketing
communications approach has a very strong impact on the behavior of consumers of any given products. As such, its
adoption in the case of Marriott will influence the targeted customer base of the company greatly with a possible
increase in the rate of customer conversion.

The planning and implementation of marketing strategies at Marriott can be improved through the adoption of the
integrated marketing communications in that the approach allows to the harmonization as well as the integration of
various strategies of advertisement in developing the company’s brand equity, its awareness as well as the image
(Dewhirst & Davis 2005).

How design thinking drives Marriott’s digital strategy

Marriott International has overhauled its mobile application to emphasize personalization and guest services,
underscoring the fact that millennials are driving companies to put digital natives at the forefront of their software
development process. The hotelier has embraced design thinking for the digital era, a key strategy in a
competitive industry loaded with choice, including Airbnb and other home-sharing startups.
Our (upwardly) mobile millennial's
To curry favor with millennial travelers, Marriott has personalized its mobile application so that its home screen
content changes to reflect a guest’s stay journey. A mobile app user with no trips booked will see the booking bar
on his or her home screen. But the content gets interesting after you book a stay.
In the run-up to a trip, the home screen will display any reservations you have made through the app. And the
content offerings expand on the day of the trip, with the home screen showing content related to the hotel,
 including a map and directions, as well as buttons to check-in and make service requests. For example, a simple
thumb tap will allow you to request more towels or extra pillows, for that hotel location.

When you check in using the app you can request room upgrades and receive notification it has been fulfilled
before you arrive. The app is currently available for iOS devices; Marriott plans to release an Android version later
this year.

If the approach sounds like how you would want a hotel app to service you that’s by design. Design thinking, or
human-centered design, places the user at the heart of product development and meshes it with the potentials
of the technology to achieve the desired business outcome. Corbin says Marriott has embraced design thinking
as a way to make its mobile app more of a “warm embrace” for guests. Ideally, such service-oriented changes
will resonate for a guest base that has already proven willing to book Marriott stays through smartphones. In 2016,
$1.7 billion of Marriott’s $13.4 billion ingross online bookings came through the mobile app, up 70 percent from $1
billion in 2015. And while Marriott mobile app users have historically used the app purely to book travel, Corbin
says that two-thirds of the application usage stems from services unrelated to bookings. For example, guests have
logged more than 20,000,000 mobile check-in and check-out requests through the mobile app to date. “It used
to be about the booking but the lines crossed in 2015 and people started to use the app for more than [the]
commerce component,” Corbin says. “Based on research on what customers want, we need to make sure we’re
building out features and services to support them in each of those moments.”

 Personal and Social

Personal Awareness and Responsibility
Who is Responsible? All Marriott associates are responsible for upholding the legal, ethical, and social standards
detailed in this Business Conduct Guide. This Business Conduct Guide applies to the business operations of all
Company-branded hotels and businesses (including The Ritz-Carlton), all Marriott business units, Marriott offices,
departments, and majority-owned subsidiaries. Managers who are responsible for supervising other associates
have a specific responsibility to ensure that associates who report to them understand the expectations
contained in this Business Conduct Guide.
The rules apply whenever Marriott's interests are directly affected. This could include actions taken while on or off
Marriott premises or while on duty or off duty, depending on the circumstances. You must be prudent and apply
good judgment to your own actions and decisions.
Official and Unofficial Communications
This duty applies to communications and disclosures about Marriott in both official and unofficial contexts, such as:
 With friends and family
 Via the Internet
 On social media
 In the news media (e.g., TV, radio, online)
During outside activities and speaking engagements In all situations, consider whether the personal thoughts you
express publicly may be misunderstood as expressing Marriott's official position. Marriott has no desire to interfere
with your private lives or your after work activities, including social networking. However, where such activities
adversely affect your job performance, the job performance of other associates or Marriott's legitimate business
interests, Marriott reserves the right to take whatever action is appropriate, at our discretion, to protect Marriott's
reputation and interests.
 Positive Personal and Cultural Identity
At Marriott, the foundation for diversity and inclusion is promoting “UNITY and Family.” Through UNITY, we create
an inclusive environment that supports the recruitment, retention, and advancement of all employees, and
actively engages in efforts to develop a diverse and inclusive workforce, owner, guest and supplier base.

Our Company has one of the most diverse and inclusive workforces and we value the differences of our
associates as a strategic business priority. As a result of our efforts, Marriott has been named one of the World’s
Best Multinational Workplaces by Great Place to Work®, the world’s largest annual study of workplace excellence.
As our founder said, success is never final and so we continue to focus on valuing diversity and fostering an
inclusive environment by:

 Empowering our associates to champion diversity and drive inclusion.

 Developing multicultural tools and resources that help managers further understand and build awareness
about cultural differences.
 Engaging with organizations that support and provide opportunities for veterans and people with
disabilities.
 Focusing on the development of multigenerational workforce.
Marriott has been honored by key partners for its leadership in championing diversity and inclusion efforts.
 Social Awareness and Responsibility

Hotels supporting their communities through donations during the COVID-19 pandemic, including food to shelters,
PPE and other helpful items to hospitals, frontline workers and in-need communities, and event space to non-
profits in-need. Marriott was one of the top corporate sponsors of blood drives for the American Red Cross,
holding nearly 500 blood drives which contributed over 14,000 units of blood.

The donation of our human trafficking awareness training to the broader hospitality industry, which in only one
year led to training hundreds of thousands of hotel workers outside of Marriott. In addition, nearly 825,000 Marriott
associates across both managed and franchised hotels have been trained to recognize and respond to potential
indicators of human trafficking since this training launched in 2016.

Building on the company's long history of welcoming all by prioritizing diversity, equity, and inclusion by
collaborating with expert community partners, enhancing internal talent development programs, engaging
associates, and using Marriott’s voice to advance solutions that address barriers to equality and opportunity.

2. Hilton

 Communication

Hilton Management Services assumed management of a focused-service hotel. Within one year, the property
began a major renovation and relaunched into the market. We welcomed existing long term employees into the
Hilton Family as we recruited several management positions. We renegotiated all LNR/CNR contracts, blitzed the
market and signed on $1M+ in groups and new accounts. A new rate strategy was implemented to capitalize on
our unique location. The property grew RevPAR year over year through renovation, while also growing market
share.

Hilton Management Services recruited and hired a seasoned GM and DOS with opening experience and
clustered the sales team with our adjacent property creating options for our clients. We were able to leverage our
past experience and revenue management team to capitalize our pricing through peak season and the high
number of special events, while our sales team remained focused on need dates.

We’re your media liaison, fostering relationships between you and the media.

HMS is an advocate for your community. That’s why we emphasize community partnerships and build relationships
with key industry and local businesses. We align with the visitors’ bureau to enhance your guests’ experiences, and
promote the hotel locally to secure business on-property.

some of our points of focus include:

 Understanding local media and utilizing different outlets for both PR opportunities and reputation and
issues management
 Seamless on-property integration with Hilton Corporate and Brand PR media relations
 Shared media website through the Global Media Center showcasing digital assets

 Thinking

Hilton already is in the hotel businesses, so will not envisage any problems regarding accommodation in the new
gambling + hotel places. Hilton has a recognized brand name so does not need to engage in unneeded
expenditure associated with less known brands and necessity to create theme parks/theme hotels.

Cooperate with major gambling companies if Hilton wants an update on most popular slot machines and card
games. Hilton should penetrate the third world countries of Russia and Ukraine as well as South America and
establish the corporate chain. After a while, open entertainment/gambling place, too.

Target Market is the conclusion that can be derived from the segmentation strategies. Formally it represents the
most likely buyers of the Hilton services that we are marketing. From what we have researched regarding the
Hilton services one can say that the target market for such services is rather large and is growing. The age group
for our various services ranges from 21 to 70 years for gambling/entertainment1, middle class people of
conscientious nature, who also like active life, health, and freedom.
Positioning equals Segmentation plus Differentiation. In order to successfully market the product one needs to slot
the product in the mind of the consumer. The Hilton services have to possess distinctive quality and affordable
price to satisfy the clients from virtually all strata of society not only in the USA but also internationally.
add significant value to entertainment, gambling, hotel services perceived by end-users because of promotion,
learning the new expertise, customer support, phones, etc.
are difficult to duplicate by the competition because for the other hotels it poses high costs than for Hilton that is
able to provide that service. Also the coverage of smaller towns and villages across North America and presence
of Hilton in over 50 countries allows Hilton to remain competitive because of its structure.
work in a wide variety of markets. Certainly it works in over 50 different countries worldwide. It should also work well
in the third world countries and in other countries around the globe.
From the information obtained from the case study and other sources, one can assume that Hilton is qualified
enough to create individual business activities that would be partially sponsored in school. So, yes, Hilton should
pursue the formation of entertainment and gambling facilities in New York, LA, and other larger metropolitan
areas in order to diversify its services and gain new ground for conducting business.
 PERSONAL AND SOCIAL
The social system supports hotel/entertainment industry as the business and leisure travel is the norm.
Building the right culture
With an emphasis on developing the right Hilton culture, Hilton Management Services put an emphasis on
continuous service and management training. Using our proprietary training tools, the Sales team created a
personalized discovery visit and proposal that would allocate meeting space only for the highest yielding revenue
event. Our Food & Beverage team created innovative recipes using The Flavors of Hilton resources library and the
F&B team trained the service staff on the menu items, showing them what makes each item unique and
empowering the servers to share that with guests.

An independent hotel had been operated by a regional hotel management company with moderate success for
many years. Ownership elected to convert to a Hilton branded property and transfer management to Hilton
Management Services.

We generated a property improvement document (PIP), outlining improvements needed to the property. After
the PIP was complete, HMS established systems and processes for the successful transition to management ––
including budgeting, critical path generation, IT planning, employee recruitment and brand training. We worked
closely with owners for financial approval, time frames, license and permit transfers, and signage requirements, as
well as sales and marketing strategies, sourcing staff and more.

Hilton Management Services assumed management of a focused-service hotel. Within one year, the property
began a major renovation and relaunched into the market. We welcomed existing long term employees into the
Hilton Family as we recruited several management positions. We renegotiated all LNR/CNR contracts, blitzed the
market and signed on $1M+ in groups and new accounts. A new rate strategy was implemented to capitalize on
our unique location. The property grew RevPAR year over year through renovation, while also growing market
share.

3. AccorHotels

 COMMUNICATION
Social network communication. Active on YouTube, Linkedin, Facebook, Twitter and Pinterest, Accor this
year won 1st place in the "Social Media" ranking in France and, thanks to its network of community
managers in Asia Pacific, achieved 8th place in this region, just six months after the network was set up.
o
Facebook: More than 40,000 fans, i.e. an increase of 30,000 over 2013
o
Twitter: More than 3000 fans online (1,500 more than in 2013)
o
LinkedIn: More than 90,000 followers
o
Pinterest: 173 followers in four months

Mobile communication. The mobile site m.accorjobs.com, which lists all the Group's job offers but also
videos and news and information about Accor, is continuing to evolve – in a few months, candidates will be
able to apply directly from their smartphones – and has won a place in the top 10 of this ranking in Asia.
The hotel and hospitality industry is changing. Some brands are replacing people with machines, but AccorHotels
is taking a different approach by creating a new business philosophy: From the Heart. This puts people first and
creates genuine personalisation for customers and staff alike, delivered through a cultural transformation across
the group. The move bucks the trend of automation, placing outstanding guest service at the heart of delivering
hospitality and travel experiences in any hotel, from economy to luxury.
The campaign ethos

From the Heart was born from a desire to develop a communications platform that positions the new and unique
service ethos across AccorHotels UK and Ireland, and their core brands of ibis, Mercure and Novotel, as a
compelling reason to book, and ultimately drive business performance.

The campaign brings to life how AccorHotels is bucking the industry trend of increased automation, reinforcing
the importance of people in business, particularly hospitality and service industries, and demonstrates why
technology should be used to enable honest and thoughtful human interaction, not replace it.

The communications campaign stemmed from Heartist, a new, innovative, people-focused philosophy, to help
communicate the heart at the heart of the AccorHotels business; to let the business’ best asset, its people,
reinvent the customer experience.

The campaign has since been used in markets around the world. It is more than a communications platform – it
represents a service ethos and business philosophy across the company. It has also become an internal and
external 360 communications campaign that started with the essence of communication – conversation between
guest and hotel talent.

From the Heart is an example of a communications campaign which has been born from a cultural
transformation within a business – inspired by a genuine insight from the day to day business of welcoming guests
to a hotel. It delivers the message clearly and creatively that AccorHotels will go above and beyond to create
personalised heartfelt gestures for customers in order to make their stay as enjoyable as possible. Business is best
when it uses technology to empower staff to go off script, to stop acting like robots and use emotional intelligence
to put people, staff and customers, first. AccorHotels is utilising its best asset, its people, to reinvent how it
approaches customer service and its brand ethos, and placing this asset front and centre in its consumer
communication.

Create a communications campaign which positions AccorHotels’ core brands as true consumer champions
focusing on delivering market leading customer service. The move bucks the trend of automation, instead
transforming the guest experience by enabling and empowering staff to interact with guests more and offer a
highly personal experience, going off-script and create memorable moments for guests delivered with heartfelt
honesty. A communications campaign which put the art of communicating at its heart.

 THINKING

The communications campaign utilised both above the line and below the line channels. A television commercial
was delivered through data led media planning; an econometric and media mix model delivered a disruptive
core campaign focussed on emotion, a digital and audience strategy to drive an AccorHotels brand message
and a multi brand platform leveraging reach and frequency for 30 and 10 second adverts.

The adverts showcased different acts of personalisation, whether that be an employee timing a guests’ length in
a swimming pool; giving them a personalised cookie or setting up a room with flowers for a couple’s anniversary.
The clear and strong emotional benefits to the guest, and staff, were captured through the film direction.

Alongside this was a social media campaign #FromTheHeart working with top tier vloggers and influencers. This
involved working with hotel teams to create spontaneous and off script ‘sparkle’ experiences and capture these
as videos and images to support #FromTheHeart. An ibis STYLES Manchester Portland moment generated 552,000
impressions and 199 engagements in the first 48 hours.

A PR campaign was run to cut across all AccorHotel’s channels including direct to consumer, corporate and
trade audiences, with a focus on hotel, hospitality and travel. The consumer campaign was built to highlight the
ways hotel staff go above and beyond to create indelible experiences, polling the nation on their feelings about
technology and highlighting the importance of conversation in modern society.

Before launching From the Heart directly to customers, AccorHotels trained its staff and introduced the Heartist
concept across the business through 27 sessions in 11 UK cities. 7,000 staff working in AccorHotels properties UK &
Ireland were taken on a journey that gave them the power to go off script and create heartfelt gestures to make
a tangible difference to their guests’ stays. The Heartist spirit of employee engagement and well-being has
transformed the staff, hotel and guest experience.

 PERSONAL AND SOCIAL

The hotel and hospitality industry is changing. Some brands are replacing people with machines, but AccorHotels
is taking a different approach by creating a new business philosophy: From the Heart. This puts people first and
creates genuine personalisation for customers and staff alike, delivered through a cultural transformation across
the group. The move bucks the trend of automation, placing outstanding guest service at the heart of delivering
hospitality and travel experiences in any hotel, from economy to luxury.

The essence of the communications strategy was emotion. In hotels employees were now using their emotional
intelligence to go off script and create indelible experiences delivered with heartfelt honesty.

The communications campaign was inspired by real moments between guests and staff – whether that be putting
specific music on to help with a marriage proposal; ordering in a customer’s favourite craft beer or taking their
dog for a walk in the rain, with one episode even featuring a real-life staff member.

With a series of TV and online films at the core, this was an integrated campaign approach utilising multiple
channels including TV & digital advertising, website and owned channels, in-hotel visibility, PR, internal
communications, social, partnerships and HR.

Accor is firmly committed to combating corruption, trading in influence and conflicts of interest by refusing gifts
and personal benefits. The general rule is that no employee should ever receive or offer a gift or personal benefit
as part of a business relationship. The only exception, unless local legislation is more restrictive, is that non-
pecuniary gifts and invitations in the normal course of business relations may be offered or accepted provided
their value is reasonable and they are offered outside of any tender offer or negotiation period.

Accor is committed to prioritising responsible, sustainable relationships with its suppliers and to dedicating part of
its sourcing and procurement to small and medium-sized companies. In France, around 60 % of certified or listed
suppliers have been under contract for at least five years. Similarly, nearly three quarters (72 %) of suppliers are
very small, small or medium-sized companies.

4. Wyndham Hotel Group

 COMMUNICATION
Wyndham Hotel Group, LLC (“WHG”) cares about privacy issues and wants you to be familiar with how we collect,
disclose, and otherwise use (“Process”) information about you. This privacy notice (“Privacy Notice”) describes our
practices in connection with the information we collect through our websites (the “Websites”), social media
pages that we control (“Social Media Pages”), and software applications that we make available for use on or
through computers and mobile devices (the “Apps”), that include a link to this Privacy Notice, and through any of
our offline activities, such as when you provide your information on the telephone via our call centers or in person
(“Offline Activities”) (collectively, including the Websites, Apps, Social Media Pages, and Offline Activities, the
“Services”).
This Privacy Notice does not apply for hotels operated by franchisees (independently owned and operated hotels)
of WHG. and/or its subsidiaries or that are managed but not owned by WHG and/or its subsidiaries (“Hotels”). For
example, Hotels may use e-mail and other methods of marketing communications to contact their guests and
they are solely responsible for these campaigns. Please read each Hotel’s privacy notice to understand how it will
treat your Personal Information.
Our privacy practices may vary among the countries in which we operate to reflect local practices and legal
requirements, such that our practices may be more limited in such jurisdictions.
Our Services may use “cookies” and similar technologies (collectively, “cookies”). Cookies are small text files that
this Website sends to your computer for record-keeping purposes and this information is stored in a file on your
computer’s hard drive. Cookies make web surfing and browsing easier for you by saving your preferences so that
we can use these to improve your next visit to our Website.
One of the purposes of cookies is to simplify the use of the Website. A cookie may save a user’s login details for
example, so that the user does not need to login every time.
Cookies may be either “persistent” or “temporary” (or “session”) cookies. A persistent cookie retains user
preferences for a particular Website allowing those preferences to be used in future browsing sessions and
remains valid until its set expiry date (unless deleted by the user before the expiry date). A temporary cookie, on
the other hand, will expire at the end of the user session, when the web browser is closed.
Cookies are also used for statistical or marketing purposes, to determine how the Website is used. These cookies
are provided by us or by third parties (e.g., advertising partners). While we do not control or have access to the
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Website.
 Google Analytics: We use Google Analytics to help us get a better understanding of how visitors use this Website
and to facilitate interest based advertising associated with your Google Account and other devices you use. The
information generated by the Google Analytics cookie about your use of this Website is transmitted to and
stored by Google. Adobe Marketing Cloud Device Co-op:WHG participates in the Adobe Marketing Cloud
Device Co-op to better understand how you use our Websites across the various devices you use, and to deliver
tailored promotions. When you use or access our Services from a mobile device, we may collect information
such as your unique device ID and your location. If you download and use an App, we and our service providers
may track and collect App usage data, such as the date and time the App on your device accesses our servers
and what information and files have been downloaded to the App based on your device number, as well as
any other Personal Information specified by the App in its terms or notices. In addition to any Personal
Information or other information that you choose to provide to us on the Services, we and our third-party service
providers may use a variety of technologies, now and hereafter devised, that automatically collect certain
website usage information whenever you visit or interact with the Services. This information may include browser
type, operating system, the page served, the time, the source of the request, the preceding page view, and
other similar information. We may use this usage information for a variety of purposes, including to enhance or
otherwise improve the Services. In addition, we may also collect your IP address or some other unique identifier
for the particular device you use to access the Internet, as applicable (collectively, referred to herein as a
“Device Identifier”). A Device Identifier is a number that is automatically assigned to your device, and we may
identify your device by its Device Identifier. When analyzed, usage information helps us determine how our
Services are used, such as what types of visitors arrive at the Services, what type of content is most popular, what
type of content you may find most relevant and what type of visitors are interested in particular kinds of content
and advertising. We may associate your Device Identifier or web site usage information with the Personal
Information you provide, but we will treat the combined information as Personal Information.
We use non-personal information in a variety of ways, including to help analyze site traffic, understand customer
needs and trends, carry out targeted promotional activities and to improve our services. We may use your non-
personal information by itself or aggregate it with information we have obtained from others. We may share your
non-personal information with our affiliated companies and third parties to achieve these objectives and others,
but remember that aggregate information is anonymous information that does not personally identify you. We
may provide our analysis and certain non-personal information to third parties (who may in turn use this
information to provide advertisements tailored to your interests), but this will not involve disclosing any of your
personally identifiable information.
 THINKING

At Wyndham Hotels & Resorts, we are committed to providing places to stay that are socially, ethically, and
environmentally responsible. With a footprint that spans hundreds of communities around the world, we engage
team members, owners and partners to uphold our core values in thinking globally and executing locally while
achieving our economic focus. In our first Social Responsibility Report since becoming an independent public
company (June 1, 2018), we are pleased to showcase how we are building upon the strong foundation of our
former parent company, Wyndham Worldwide. We remain guided by our core values and are consistently
aligning our business and financial performance with the responsible way we operate. Our core values are
Integrity, Accountability, Inclusive, Caring and Fun. Based on Wyndham Worldwides’ legacy of leadership in Social
Responsibility, we are dedicated to valuing diversity and inclusion, protecting human rights, supporting our
communities, and fostering environmental sustainability. With our commitment to acting with integrity in making
hotel travel possible for all, Wyndham Hotels & Resorts was recognized as one of the 2019 World’s Most Ethical
Companies by the Ethisphere Institute. This distinction marked the first global accolade for the Company and
builds upon a robust Wyndham history of recognition by Ethisphere, a leader in defining and advancing the
standards of ethical business practices. As you will see reflected in this report, we achieved significant milestones
in our first year as Wyndham Hotels & Resorts. And we are working to build a strong baseline of integrating Social
Responsibility initiatives into our business practices.
Brand Power

You have choices regarding where and how you build or convert your hotel. So, Why Wyndham? The answer is
simple: we’re focused on making hotel development rewarding for all of our owners.

You want to partner with a hotel company that knows what you need before you need it, and has the
experience, power, and connections to really support you. This is the backbone of what we offer, and it’s at the
heart of the Wyndham Advantage.

The success of our owners is directly related to our focus on continued growth and performance. Our portfolio
includes a wide range of brands with comfortable accommodations and modern amenities to suit the needs of
every traveler and every owner. We’re proud to offer 22 brands in a variety of markets and with an incredible
range of styles to suit every demographic.
When you join us, you get more than the Wyndham name. You gain the support of a global hospitality
powerhouse, with iconic brands united by the simplest and most generous rewards program in the business.

 PERSONAL AND SOCIAL

We have always believed that you can do well by doing good. That’s why Wyndham Hotels & Resorts has worked
to integrate diversity and inclusion, environmental sustainability, human rights and community support initiatives
into our business practices.

Our Social Responsibility Commitments

Human Trafficking

At Wyndham Hotels & Resorts, we are committed to supporting the end to human trafficking. To uphold this
commitment, we have worked to enhance our policies and to mandate training for all of our team members to
help them identify and report trafficking activities. We also make training opportunities available for our franchised
hotels, which are independently owned and operated.

In addition, we support the work of hospitality industry organizations, including the American Hotel & Lodging
Association and the Asian American Hotel Owners Association, in promoting awareness and educating hoteliers
and employees on how to identify and report suspected instances of human trafficking.

Through our partnerships with the International Tourism Partnership, Businesses Ending Slavery and Trafficking,
ECPAT-USA, Polaris Project and other organizations that share the same values, we continue to develop resources
and educate our employees and stakeholders across relevant areas of our business and supply chain.

Single-Use Plastics

At Wyndham Hotels & Resorts, we are committed to fostering social responsibility, and we take action each day
to minimize the impact our operations have on the world. We are working on eliminating single-use plastic and will
comply with local laws as required. As part of these efforts, we are exploring viable alternatives to single-use
plastics, including, but not limited to, straws, utensils, containers and packaging to offer our owned and managed
properties while ensuring a positive guest experience. We’re proud of our franchise partners and managed teams
that have already taken action on this commitment.

Cage-Free Eggs

At Wyndham Hotels & Resorts, we are committed to fostering social responsibility, and we take action each day
to minimize the impact our operations have on the world. As part of these efforts, we are committing to provide
our owned, managed and franchised hotels with suppliers of cage-free eggs, in order to source 100% of our eggs
(shell, liquid and egg products) from cage-free sources globally by 2025. While we are at the beginning of this
journey—in 2019, two percent of shell eggs and two percent of egg products (liquid/processed) were cage-free
within our supply chain—we commit to publicly reporting on progress annually and to translating our policy into
key native languages.

A Culture of Diversity & Inclusion

Not only is diversity part of how we do business, we see it as a competitive advantage. Our inclusive culture
infuses different perspectives that reflect our diverse customers and communities around the world.

5. Hyatt Hotels Corporation

 COMMUNICATION
Our purpose, vision, mission, and values are brought to life by our colleagues, whom we refer to as the Hyatt family.
We believe our colleagues embody our purpose of caring for people, including each other, our guests, and
ultimately our owners. This commitment to genuine service and care is what differentiates us and drives guest
preference. The management teams at each of our managed properties lead by example, and we provide them
with the appropriate autonomy to make operational decisions in the best interest of the hotel and brand. We
believe the managers of our franchised properties are experienced operators with high standards who have
demonstrated commitment to our values and our approach to caring for guests to enhance guest satisfaction.
High levels of guest satisfaction lead to increased guest preference for our brands, which we believe results in a
strengthened revenue base over the long term. We also believe engaged colleagues will enhance efficient
operation of our properties, resulting in improved financial results for our owners. Sustained adherence to these
principles is a basis for our brand reputation and is one of the principal factors behind the decisions of our diverse
group of owners and developers to invest in the Hyatt portfolio of properties around the world. We work with
existing and prospective owners and developers to increase our presence around the world, which we expect will
lead to guest satisfaction, brand preference, and new channels for professional growth for our colleagues.
Honest and straightforward communications enable our colleagues, guests, owners, and shareholders to trust us.
To ensure that we are always communicating truthfully, accurately, and consistently about the Company, we only
authorize certain individuals within the Company to speak on the Company’s behalf. We take seriously our
responsibility to protect the Company’s confidential information and never reveal it inappropriately
 THINKING
We prioritize the inclusion of diverse vendors in our supply chain opportunities and evaluate strategic investments
in diverse businesses, such as those of who we employ, support, buy from, and work with as outlined in our
Change Starts Here commitments.
We are committed to sound principles of corporate governance. Our business is conducted by our employees
and officers under the direction of the President and CEO and the oversight of the Board of Directors.
Inspired by the changing landscape of contemporary, multitasking business travelers, Global Hyatt Corporation
today unveiled Hyatt Place™, an innovative hotel concept with a strong appeal to a newly identified target
audience who has successfully adapted to today’s “24/7 lifestyle.” This group of travelers shares a mindset and
way of life that revolves around seamlessly merging personal and professional activities. Hyatt Place, designed to
meet the needs of a new customer segment, caters to this seismic shift in lifestyle and offers travelers a balanced
mix of comfortable and functional guestroom amenities such as: 42inch high definition televisions with next
generation entertainment content; free WiFi access; a comfortable, eight foot sectional sofa sleeper, all within an
oversized, suite like room with 20 percent more space than the average hotel room.
Hyatt Place is a new kind of hotel that is different from, yet complementary to, Hyatt’s full service brands. The
new concept was based in part on the findings of extensive consumer research commissioned by Hyatt* that
uncovered the demands of a new breed of sophisticated travelers who intermingle their professional and
personal lives. The study shows more than 90 percent of traveling respondents surveyed said they do not separate
their lives into personal or professional silos because their work and leisure time overlap. However, while this
audience has adapted to an integrated life by combining their personal and professional lives into one, only 10
percent of study respondents were able to find a hotel that gives them what they want.
This emerging lifestyle trend inspired Hyatt Place to create an environment to foster guests’ productivity,
relaxation and fulfillment with an emphasis on stylish design, innovative services and comfortable amenities that
people find in their everyday lives.
“Hyatt Place is the first hotel of its kind to cater to both the functional and emotional aspects of today’s business
and leisure travelers,” said Tom O’Toole, senior vice president of strategy and systems, Global Hyatt Corporation.
“For many, the separation between professional and personal life is obsolete, but unfortunately, hotels have not
successfully evolved with this trend – until now. Demonstrating that we know what matters most to our guests,
we’ve created a hotel brand defined by a mindset of a whole person who is combining personal fulfillment with
professional growth while traveling.”
Additional findings from the study include:

 Half of the respondents are simultaneously engaging in personal and professional activities. When working at
home, 71 percent also watch TV, 53 percent listen to music and 59 percent use the Internet
 46 percent of all respondents said they have more time to themselves when they travel for business, jumping
to 57 percent among those who have children.
 More than 40 percent said they would forego sex, coffee or use of their cell phone in exchange for a good
night’s sleep on the road.
To stress the importance of going beyond professional efficiency and creating a guest experience that also
encourages personal nurturing, Hyatt Place sought the expertise of Daniel Pink, an award winning author and
business trends enthusiast.
"Business people in general, and business travelers in particular, lead blended lives,” said Pink. “They're
constantly toggling between the personal and the professional. Hyatt Place has identified a gap in the
marketplace and developed a product that brings the two worlds together, that's in synch with how people really
work and live. This is a hotel, an experience and a brand for both sides of the brain."
Pink, a leading business thinker and bestselling author of A Whole New Mind and Free Agent Nation, uncovers
that the future belongs to those who adopt a whole new way of thinking about professional achievements and
personal fulfillment. According to his fundamental philosophy and illustrated by his ongoing research, success will
come to people and companies who seamlessly mix business and pleasure.
Expanding at an unprecedented pace, Hyatt Place already has hotels open in and around Atlanta, Chicago,
Phoenix, Cincinnati, San Antonio, Louisville and Nashville. An impressive 120 hotels will be up and running by
December 2007. Those locations include: Dallas, Phoenix, Tampa, Miami, Orlando and Detroit, in addition to other
key business and leisure markets throughout the country.
Hyatt Place offers distinctive architecture with stylish furnishings that create an atmosphere of casual hospitality.
Every Hyatt Place hotel will feature a wide range of new services and amenities to help guests seamlessly
continue their everyday lives. Similar to what travelers might experience at home, guests can take advantage of
free WiFi access, stretch out on the eight foot Cozy Corner sofasleeper or work at an oversized desk in an
ergonomic chair.
They can also catch the evening news, the big game or the latest feature movies on the 42inch flat panel, high
definition television offering 11 channels of high definition programming in addition to an already impressive
channel selection. Hyatt Place guests will also have access to Hotel Sports Netservice, which includes NFL SUNDAY
TICKET™ and NBA LEAGUE PASS as well as other professional and college sports programming. Hyatt Place guests
can stay connected through the innovative Hyatt Plug Panel™, which allows guests to connect their own
entertainment media to the high definition TV, including laptops, MP3 players, DVD players or any other portable
device. The signature Hyatt Grand Bed™ also ensures guests can enjoy a peaceful night’s sleep in the bedroom
area.
Hyatt Place hotels also feature the Gallery, an innovative welcoming arrival area where guests are personally
greeted by the Gallery Host who assists guests with everything from check in to providing personal tours of the
hotel.
In the Gallery, guests will also find a self registration kiosk, an intimate coffee and wine café and bakery, free
WiFi, a TV den and an e-room with free access to a public computer and printer. Guests at Hyatt Place may
purchase signature hot breakfast entrées along with Starbucks® specialty coffees or enjoy a free continental
breakfast. Hyatt Place also offers a variety of freshly prepared, café quality items, including made-toorder entrées,
sandwiches, soups, salads and pizza which guests can order 24 hours a day, seven days a week via a touch
screen menu in the Guest Kitchen or from the Gallery Host.
To help guests stay physically and mentally productive, they can also utilize the hotel’s swimming pool or
StayFit@Hyatt gym featuring state of the art Life Fitness® equipment.
With the introduction of Hyatt Place, Global Hyatt Corporation is not only integrating the new brand into its
rapidly growing portfolio of properties, but is also offering Hyatt Gold Passport members more opportunities than
ever before to earn points and redeem rewards. Gold Passport members can now earn free nights, credit toward
elite status and enjoy inhotel tier benefits at all Hyatt brand locations worldwide, including Park Hyatt®, Grand
Hyatt®, Hyatt Regency®, Hyatt Resorts®, Hyatt® and now, Hyatt Place™ and Hyatt Summerfield Suites®.
Sterling Brands conducted a quantitative online study among 400 American travelers, ages 2555, who stayed in
hotels 3+ times in the past 12 months. The survey was conducted between December 1215, 2006.

 PERSONAL AND SOCIAL

For more than 60 years, Hyatt has cared for the planet, people, and responsible business. World of Care is
designed to address the pressing challenges faced by our colleagues, guests, owners and communities and
enact meaningful change within its industry.
We embrace our responsibility to create fair, ethical, and transparent business practices, both within and beyond
our company and Hyatt properties. Our approach to responsible business spans policies and procedures around
ethics, security, supplier and partner diversity, and corporate governance globally.
As a Company, our natural propensity to care for others is what differentiates us as the Hyatt family. Hyatt’s
purpose – we care for people so they can be their best – is a palpable feeling that’s been in our DNA for more
than 60 years. That commitment to care for all our stakeholders – colleagues, guests, owners, shareholders and
communities – drives all we do and how we work. It guides how we treat one another, how we protect our
information and assets, how we demonstrate integrity in our business dealings, how we communicate honestly
and transparently, and how we act as responsible professionals. Our Code of Conduct reflects these
commitments and provides a framework for making ethical business decisions. While it will not tell you everything
you need to know about the laws that apply to our business, it will give you an overview of our expectations in key
areas.

From its inception, environmental and socially sustainable initiatives have been an integral part of Park Hyatt
Maldives Hadahaa’s operational culture. This vastly unexplored area is home to stunning coral reefs, indigenous
fish species, and remote islands where the traditional Maldivian way of life centred on the sea and its resources.
The resort is a 50 villa accommodation located in North Huvadhoo, Gaafu Alifu Atoll. The resort includes two
swimming pools, 24 plunge pools, gym facilities, spa, dive and activity centre, two restaurants and a bar. We
acknowledge that a 50 villa island resort with its accompanying infrastructure in the midst of an extremely isolated
and pristine tropical atoll poses a risk to the surrounding area and its people. This has empowered us to dedicate
our resources to protect this unique and fragile environment. Being environmentally conscious is critical not only in
this atoll but also in the Maldives as a whole, since rising water levels would have potentially devastating effects
on this country first and foremost. Park Hyatt Maldives Hadahaa has collaborated with EarthCheck to monitor our
performance in accordance with a stringent internationally recognised approach. We strive to surpass Best
Practice benchmarking levels and continually improve upon the existing environmental and social sustainability
performance within the confines and parameters of a remote location such as ours. As the first resort in the
Maldives to commit to the EarthCheck principles throughout the design, construction and operational stages our
commitment has been unwavering. It was this commitment that allowed us to achieve the prestigious EarthCheck
“Building Planning and Design standard” certified status in August 2008. We continued improving our sustainability
efforts throughout the years and was then awarded the Silver certification followed by the Gold certification by
EarthCheck. In 2017, we were audited by Green Globe and was also certified Gold for our practices. To ensure we
monitor our efforts and strive for improvement, we have appointed our Resident Marine Biologist as the Green
Globe Coordinator, who is responsible for identifying environmental risks, recording and monitoring our
performance through benchmarking, whilst driving the environmental and social initiatives undertaken by the
resort. The unspoilt and remote location of the resort necessitates a symbiotic relationship with the local islands
and their communities. Special consideration is given to employing and empowering local residents and
wherever possible, sourcing local and fair trade products and services. With this in mind, Park Hyatt Maldives
Hadahaa has formed a committee of elected ‘Hyatt Thrive Ambassadors’ to represent the different communities.
Through better connectivity, shared knowledge, development of business skills, and encouragement and
participation from both sides, Park Hyatt Maldives Hadahaa leads mutually beneficial programmes that inspires
sustainable development projects, allows the resort to gather supplies and recruits from nearby islands, and
ensures the local communities develop and prosper. Hyatt Thrive utilizes the knowledge and abilities of
employees as well as the wider communities, in order to give everyone a means, as well as the education, to act
on their concerns.

6. Jin Jiang International Hotel Management Co. Ltd.

 COMMUNICATION
China International Travel Mart (CITM) was held at the Kunming Dianchi International Convention and Exhibition
Center from November 13 to 15, 2015. During the three-day event, Jin Jiang International Hotels (Jin Jiang) in its
role as an exhibitor, displayed its proficiency in professional hotel management as well as its enthusiasm in and
commitment to providing excellent hospitality services at affordable prices, in a demonstration of its core
competencies.

 THINKING
The event, one of the most influential exhibitions in China and across Asia, featured 3,087 booths spread across a
70,000-square meter exhibition space, a record for the annual industry get-together. Representatives from a
record 105 countries and regions took part in the event. Following its acquisition of Louvre Hotels Group in March
this year, Jin Jiang made its debut at the event. With a creative and fashionable yet simple and elegant exhibition
booth, the hotel operator proved to be the show's eye-catcher as a result of the strength of its brand. The Jin
Jiang booth hosted more than 10,000 visitors and received invitations or started discussions with more than 390
buyers. In addition, as a result of a cooperation with TTG China, a travel industry trade magazine that is also the
publication providing official coverage of the event, Jin Jiang and Louvre Hotels Group both received special
media coverage.
China has become one of the largest tourism market following decades of development. Last
year, China recorded 130 million inbound visitors, making the country the third most popular tourism destination
worldwide. China has been popular among foreign visitors for the many destinations known for their historical and
cultural importance and well as for the beautiful natural scenery. China has proven an excellent market for
overseas service providers and buyers.

 PERSONAL AND SOCIAL

Nineteen member hotels of Jin Jiang took part in the event, including the Jin Jiang Hotel, Jin Jiang Tower,
Hua Ting Hotel & Towers, Rainbow Hotel, Shanghai Hotel, Park Hotel, Pacific Hotel, Shaanxi Business Hotel, Paradise
Jin Jiang Hotel, LVGEM Jin Jiang Hotel, Inner Mongolia Jin Jiang International Hotel, Jin Jiang Sun Hotel, Sanya
Royal Garden Hotel, Sanya Jin Jiang Baohong Hotel, Haiyun Jin Jiang International Hotel, Fubang Jin Jiang
Hotel, Kunming Jin Jiang Hotel, Shen Zhen Hotel, and Mingcheng Jin Jiang Hotel.
7. Shangri-La Hotels and Resorts

 COMMUNICATION
Shanghai Jin Jiang International Hotels (Group) Company Ltd (Jin Jiang Hotels) is a hotel group which owns and
manages star-rated hotels, budget hotels, restaurants and undertakes franchising activities. It operates full service
hotels and select service hotels under Jin Jiang, Metropolo, J.Hotel and Jin Jiang Inn brands. Jin Jiang Hotels also
offer logistics and travel agency services. The company operates hotels in countries including the US, Russia, the
UK and Holland. Jin Jiang Hotels also offers catering services, tourism and transport services, food and beverage
services, and is active in trade and finance businesses. Jin Jiang Hotels is headquartered in Shanghai, China.

This business intelligence report presents the key company information, essential to understanding industry
challenges and competitors.

The SWOT analysis identifies the company’s strengths, weaknesses, opportunities for growth and threats. The key
competitors are dissected alongside the larger challenges that the industry is facing.

The company profile relays all current information about the business operations, including key employees, major
products and services, company history, locations and subsidiaries alongside a supporting statement from the
Chairman and Managing Director.
Enhance your understanding of the company and its position within the industry.

Gain insight into the marketplace, including impacting factors and future challenges.

Boost your business/sales activities by utilising competitor breakdown.

Use the data to formulate your strategic planning, marketing, and competitor intelligence functions.
Shanghai Jin Jiang International Hotels (Group) Company Ltd (Jin Jiang Hotels) is a hotel group which owns and
manages star-rated hotels, budget hotels, restaurants and undertakes franchising activities. It operates full service
hotels and select service hotels under Jin Jiang, Metropolo, J.Hotel and Jin Jiang Inn brands. Jin Jiang Hotels also
offer logistics and travel agency services. The company operates hotels in countries including the US, Russia, the
UK and Holland. Jin Jiang Hotels also offers catering services, tourism and transport services, food and beverage
services, and is active in trade and finance businesses. Jin Jiang Hotels is headquartered in Shanghai, China.
Canadean's Shanghai Jin Jiang International Hotels (Group) Company Limited : Travel and Tourism - Company
Profile, SWOT & Financial Analysis contains in depth information and data about the company and its operations.
The profile contains a company overview, key facts, major products and services, SWOT analysis, business
description, company history, key competitors, financial analysis, mergers & acquisitions, recent developments,
key employees as well as company locations and subsidiaries.
 THINKING
The executive committee of the Group has been identified as the chief operating decision-maker. The executive
committee reviews the Group’s internal reporting in order to assess performance and allocate resources.
Management has determined the operating segments based on these internal reports. Upon the acquisition of
81.0034% equity interest in Keystone Lodging Holdings Limited (“Keystone”) and the acquisition of 80% equity
interest in Vienna Hotels, the Board integrated Plateno Group and Vienna Hotels into the former segment “Select
Service Hotels — managed and operated by Jin Jiang Metropolo” to assess their performance, and renamed it as
“Select Service Hotels — managed and operated in Mainland China” segment. The segment “Select Service
Hotels — managed and operated by GDL” was renamed as “Select Service Hotels — managed and operated
overseas”. The executive committee assesses the performance according to seven main business segments as
follows: first Full Service Hotels: ownership, operation and management of full service hotels; second Select Service
Hotels — managed and operated in Mainland China: operation of self-owned select service hotels and provision
of management and franchising to other parties to operate select service hotels, primarily in PRC and under the
brands of Jin Jiang Metropolo, Plateno Group, Vienna Hotels; third Select Service Hotels — managed and
operated overseas: operation of self-owned select service hotels and provision of management and franchising
to other parties to operate select service hotels, mostly in Europe and under the brands of GDL; fourth Food and
Restaurants: operation of fast food or upscale restaurants, moon cake production and related investments, not
including the food and beverage operation in Full Service Hotels and Select Service Hotels; fifth Passenger
Transportation Vehicles and Logistics: vehicle operating, trading of automobiles, refrigerated logistics, freight
forwarding and related services; (6) Travel Agency: provision of travel agency and related services; and (7) Other
Operations: intra-group financial services, training and education, and corporate function. The executive
committee assesses the performance of the operating segments based on profit for the year.

 PERSONAL AND SOCIAL

At Shangri-La Group, we are privileged to operate in some of the most prestigious and pristine environments in
the world.

As we expand into new frontiers, we are honoured to partner with many local leaders and indigenous
communities where we have operations. We place great emphasis on bringing both economic opportunities as
well as creating lasting value for the larger community.

Our sustainability and CSR initiatives are focused on five key areas: community engagement, environment and
biodiversity, employee development, sustainable supply chain, and health and safety.

Community Engagement As an integral member of the local community, we proactively engage all our
stakeholders to understand their needs and to create a greater sense of shared value and ownership. We are
committed to helping advance and positively impact the lives of the people and communities where we operate.
We aim to contribute to the social and economic development of local communities by providing employment
and training opportunities. We provide people with disabilities (PWD) opportunities for upward mobility. We
actively work with at-risk communities to offer training for low-income families to improve their livelihood.

Environment and Biodiversity Shangri-La Group is committed to addressing the impact of climate change in our
operations. We are passionate about conserving the biodiversity of these places and protecting the many
endangered species for future generations to enjoy. We are committed to creating environmentally responsible
and resource-efficient facilities as part of the Group's green policies. This includes reducing our overall plastic
footprint, especially single-use plastics. To protect the environment, we have introduced water bottling plants and
other more sustainable materials across the hotel operations. In other areas, we actively practise smart
technology food waste management, low temperature laundry facilities, composting and the planting of herb
gardens to manage food waste.

Employee Development We have numerous programmes to support employee development and leadership
succession. We provide a conducive working environment which fosters a strong learning culture within the
organisation. We believe in nurturing local talents and are open to listen to ideas and to act on feedback. We
respect and value diversity between people. Such differences help to drive creativity and innovation within the
company. It is also critical in helping to meet the needs of our diverse customer base and the many communities
where we operate.

Sustainable Supply Chain We believe in raising public awareness on sustainable food sources and educating
them to make responsible food choices. In 2012, we were one of the first hotel groups to take shark fin off all our
menus. In 2018, we signed with the Marine Stewardship Council (MSC) to source for sustainable seafood as the first
hotel group in Asia to do so. We practise local and fair sourcing. Wherever possible, our businesses engage local
suppliers and use eco-friendly products to help promote growth and development in the local communities. Our
"Rooted in Nature" initiative launched in 2014 aims to promote the finest locally and ethically sourced ingredients
as part of our unique culinary offerings.

Health and Safety Shangri-La Group has "zero tolerance" on non-compliance of health and safety standards. This
includes ensuring that food safety systems and hygiene, and sanitation are maintained at the highest level. Our
hotels have Occupational Health and Safety (OHS) management system in place to identify and control potential
health and safety hazards in the workplace. We are also vigilant in combating the spread of infectious diseases,
for example, by providing training to minimise the threat of disease transmission.

8. Meliá Hotels International

 COMMUNICATION
A NEW MULTI-CHANNEL AND MULTISTAKEHOLDER STRATEGY The current business environment has emphasised the
need to transmit a sensation of trust and transparency to our stakeholders, showing that we are closer to them
than ever and emphasising our involvement with the community and our company values. Travel companies
suffered the almost total paralysis of our activity and forced closures which also presented an unprecedented
challenge in the way we could communicate with our different audiences.We decided to be proactive and
adapt our strategy based on new strategic communication objectives: keeping our company in the top of mind
of our audience and strengthening engagement during a period in which reputation and trust were above any
commercial concerns, and thus turning the crisis into an opportunity to be seen as an even more leading,
innovative and responsible brand.We had two very important factors in our favour: firstly, our high degree of
digitalisation, which provided us with powerful online communication tools for our customers and other
stakeholders, and secondly, our considerable strength in social media, in which there has been a spectacular
increase in use during the lockdown with 62% of consumers getting their information through these channels.Since
the beginning of this extraordinary situation, internal and external communication through all channels has been
essential in the management of the crisis and the consolidation of the reputation of the Group. That is why we
decided to implement a coordinated strategy across the different corporate and sales communication areas,
focusing on teamwork and alignment with the company’s objectives and needs. The Corporate Communications
management team formed part of the COVID-19 Crisis Management Committee to guarantee alignment, and
both the CEO and the Senior Executive Team were actively involved in communication.Given the poor visibility
and the unexpected nature of the pandemic, an evolutionary strategy was designed, starting with a "shock and
responsible adaptation" stage in March and April, followed by a "building confidence" stage in the 2nd quarter,
and a progressive return to activity and "preparation for recovery ” stage thereafter, which we had to make
compatible with the management of occasional outbreaks of the virus from summer 2020.
We defined five major goals and areas to which all communication should contribute:
To promote our positioning as a solid, responsible and resilient company, building an image of strength in the face
of the pandemic and mitigating any negative impacts. To support the return to activity of hotels and the
destinations in which we are present. To accompany our employees and customers in this exceptional situation.
To affirm our confidence in the renaissance of tourism and in our proposals for the future. To make Meliá, and
particularly our CEO, spokespersons and leaders of the tourism industry through the crisis.This multichannel
communication strategy has allowed us to align all our efforts and investments to amplify our key messages.
Actions such as "Meliá with the Heroes", the "Stay Safe with Meliá" programme and the "Every day matters”
campaign are clear examples of the planning ofpublic relations,social media, corporate communication and
digital marketing activities which have allowed us to create visibility and enhance the value of Meliá Hotels
International and our collaboration with society, achieving excellent results with regards to audience perception.
INTERNAL COMMUNICATION Communication is one of the fundamental factors in our relationship with our
employees. The complex context of 2020 and the impact on employees has forced us to adapt and reinforce our
communication strategy to ensure greater coherence and proximity and ensure “no one gets left behind”,
making everyone feel themselves an indispensable part of this large family in spite of the terrible circumstances.
Teleworking or furloughs for many employees have created a new relationship environment that led us to
strengthen our digital communication to retain our bonds with employees, allowing them to participate in the
changes the company was going through in real time and responding to all their doubts and concerns while
keep them promptly informed about everything that affects them. To do this, we strengthened three fundamental
channels. Firstly, the creation of a new weekly Newsfeed sent to all employees and beginning with a message
from the CEO, who has become our chief spokesperson and strengthened his proximity to employees. The
newsfeed contains the most relevant recent company news, news from hotels and news about new projects
focused on our recovery from the crisis, with a very special emphasis on acknowledging the efforts made by our
teams and their commitment to the company. Within the Meliá Home portal we have also created new sites or
virtual communities that have also been very important in communications about the crisis and changes. Two of
them are particularly important: the creation of the COVID-19 management site for the distribution of all the
protocols and materials created to assist in crisis management, and the creation of the Be Digital 360 site on the
company's digital transformation programme, which accelerated its implementation in 2020 with the launch of
numerous new projects. Finally, the eMelia training platform has been a key tool in reinforcing digital
communication and the bonds with employees. During lockdown, eMelia was opened up to a much larger group
of employees, offering them excellent online learning opportunities to continue developing their talent, skills and
abilities. The tool was also used to carry out numerous internal webinars to share experiences and best practices
between our team members.

A specifically assigned function for defining and updating accounting policies (accounting policy area or
department) and resolving doubts or conflicts arising from their interpretation, maintaining fluid communications
with those responsible for operations at the organization, as well as an up-to-date accounting policy manual
distributed to the business units through which the company operates. (The Annual Accounts and Consolidation
Department is in charge of the definition and updating of accounting policies, as well as the interpretation
thereof, and other accounting regulations that affect the financial statements of the Meliá Hotels International
Group. Among others, the functions of this department are as follows: Definition of the Group’s accounting
policies. Analysis of the operations and individual transactions carried out or to be carried out by the Group to
determine their appropriate accounting treatment. Monitoring of the new regulations planned as well as the
new rules approved by the International Accounting Standards Board (IASB) which are adopted by the European
Union, and analysis of the impact that their implementation will have on the Group's Consolidated Accounts.
Resolution of any doubts of Group companies regarding the application of Group’s accounting policies. The
Meliá Hotels International Group presents its Consolidated Annual Accounts in accordance with the International
Financial Reporting Standards adopted by the European Union.

 THINKING
Internally, the CEO’s communication with our employees was greatly reinforced, understanding that employees
have been strongly affected by the crisis and that proximity and transparency are vital factors in nurturing their
motivation and trust. That is why the CEO has sent a message every week to all employees since March 2020 to
personally communicate the measures in the contingency plan, people management, preparation for the return
to work or digital transformation; key messages in bolstering the cohesion and commitment of our people at such
a critical time for the company, particularly due to the fact that the response of our talent will be key to how we
face the recovery period. Both the CEO and other members of the Senior Executive Team have also actively
participated in transmitting knowledge and supporting team development through several webinars and video-
streaming sessions. Collaboration with influencers on social media was key to communicating, amplifying and
enhancing trust in the Stay Safe with Meliá programme, as well as generating traffic and boosting bookings on our
website. Influencer marketing aimed at generating greater relevance, resonance and authenticity through the
use of professional content generated by the most qualified users. We also used the analytical capacity of
Traackr, a partner specialising in identifying the influencers most closely related to the brand, to measure the
performance and contribution of each collaboration
Meliá Hotels International is committed to a transformation of the sales function to adapt to the new challenges
faced by the tourism industry, maintaining a focus on customer relationships and reinforcing our leadership in the
main leisure and bleisure markets. In a rapidly changing environment, we have adapted our global sales strategy
to the reality in each of the destinations and regions in which we operate with the assistance of specialist teams in
each market segment. In a year in which travel has been severely restricted, stimulating demand has been one of
our top objectives.
The company has an updated accounting policy manual that is reviewed whenever the accounting regulations
applicable to the financial statements of the Group are modified in any significant respect. All personnel
responsible for preparing the financial statements of the companies within the Group have access to this
document through the Intranet. There is a formal communication channel to coordinate doubts about the
interpretation of the accounting policies, consisting of a general inbox for electronic mail managed by the Annual
and Consolidated Accounts Department. Through which the different business areas can ask for advice on
specific issues which, due to their specificity or complexity, may raise doubts about the way they should be
registered in the Group’s accounting books.)

 PERSONAL AND SOCIAL

The Melia Hotels & Resorts brand features the Balance by Melia program, which is based on the Mediterranean
diet and makes use of top-notch fitness facilities. Melia Hotels and Paradisus Resorts offer YHI Spa, providing
treatments that nourish, revitalize, rejuvenate and relax the body.

Gran Melia Hotels and Resorts and ME by Melia collaborate with Clarins and Skin Inc., respectively, as specialist
partners to supply guests with a luxurious spa experience. Sol Hotels & Resorts has designed a Body & Sol
rejuvenation concept at its Sol Beach House properties, situated in idyllic beach settings. In general terms, we are
committed to maintaining employment in all countries to the extent that operations allow, with special attention
to critical groups and personnel on development programmes. In each country, we have observed the specific
employment regulations implemented due to the pandemic. In 2020, the active workforce was reduced by 50%,
mainly due to the reduction in the number of open hotels due to the pandemic. Despite this, the company has
chosen to maintain employment as far as possible in all markets, adapting to openings and closures at all times.
The workforce decreased compared to the previous year as a result of the non-renewal of temporary contracts
and the absence of recruitment in seasonal hotels due to the decrease in operations. Through which the different
business areas can ask for advice on specific issues which, due to their specificity or complexity, may raise doubts
about the way they should be registered in the Group’s accounting books.)
(The definition and review process of the organisational structure is regulated by the Group's Human Resources
Regulations and applies to all the Group companies. According to the provisions of such Regulations, the Human
Resources Department is responsible for ensuring equity, balance and the optimisation of the Company’s
organisational structure and its periodic review. The heads of the different areas within the Group must ensure that
the size of its staff is appropriate and optimal to address the department and business unit operations. Any
change in the organisational structure, as well as the appointment and dismissal of senior executives and their
compensation, must be proposed by the Appointments and Remuneration Committee and approved by the
Board of Directors. Likewise, the Organisation area, which reports to the Human Resources Department, is
responsible, together with the different areas within the Group, for the analysis and determination of processes, as
well as the job descriptions, functions and responsibilities, including positions related to the preparation of financial
reporting. The group’s organizational chart is currently being restructured due to the development and
implementation of the new organizational model. With regard to the process of preparing financial information, in
addition to detailed organizational charts, there are rules and instructions that establish the specific guidelines
and responsibilities of each closure in which the main tasks are explained, both at the corporate level and at the
branch level.)

9. InterContinental Hotels Group PLC (IHG)

 COMMUNICATION
We operate hotels in three different ways – as a franchisor, a manager and on an owned and leased basis. We
focus on the mainstream, upscale and luxury segments of the hotel industry and have a targeted portfolio of
brands individually tailored to meet guests’ needs and occasions.Whether we franchise to, or manage hotels on
behalf of third-party hotel owners depends largely on market maturity, owner preference and, in certain cases,
the particular brand. Mature markets, such as the Americas and Europe, predominantly follow a franchise model,
while a managed model is typically used in emerging markets, such as Greater China.

Due to our asset-light approach, the number of owned, leased and managed leased hotels we have has
dramatically reduced from over 180 hotels 18 years ago, to just a handful today

Franchisees want to be in business for themselves but not by themselves. Our franchisees can brand their hotel
with one of our well-known and popular brands, and benefit from a powerful loyalty programme and strong
reservation system. We also provide a comprehensive set of tools such as revenue management and marketing
programmes to drive business and new demand.

Our franchise fee growth is driven by three levers – room growth, revenue per available room (RevPAR) and
royalty fees. The franchise agreement is generally a standard contract, with some variation across the world. A
sample contract would normally have a royalty fee of 5-6 per cent of rooms' revenue. However this can vary by
brand and country.

Some third-party owners want their hotel managed for them, and expect a high standard of service which we
provide across the world.

We manage the hotel but ownership of the physical building remains with a third-party owner. Typically, the senior
management like the General Manager and the Financial Controller are IHG employees, who have oversight to
build a successful team.

Management contracts can be bespoke but usually include two separate fees: base and incentive. The base fee
is typically 1-3 per cent of a hotel’s total revenue. However, the percentage does vary by country and brand. The
incentive fee is a share of profits, which is in place to align our interests with those of the property owner and to
reward us for running the hotel profitably.
Our global network of hotel owners is one of IHG’s greatest strengths. Our success lies in matching owners with the
right brands and markets, and in working together to use our scale and resources to drive strong returns.

From meeting to discuss a new project, to planning every facet of a hotel's operations, to the opening itself, we
focus on building businesses. Once open, we support owners with world class, brand specific resources that help
drive hotel employee performance, improved guest satisfaction and increased revenues.

 THINKING
Our ambition to deliver high-quality, industry-leading net rooms growth is unchanged, driven by continued
investment in enhancing our guest and owner offer and developing our brands at scale in high-value markets.
Over the long term, with disciplined execution, this drives sustained growth in cash flows and profits, which can be
reinvested in our business and returned to shareholders.

What has evolved is how we execute against our strategy, in terms of what we prioritise, the behaviours we
champion, and the purpose that guides us. Listening to stakeholders, we’ve evaluated what’s most important, not
just to IHG’s growth, but how we grow, taking into account all we’ve learnt from dealing with Covid-19 and
planning for a strong recovery over time.

Our evolved priorities put our brands at the heart of our business, and our owners and guests at the heart of our
thinking. They recognise the crucial role of a sophisticated, well-invested digital approach, and ensure we meet
our growing responsibility to care for our people and make a positive difference to our communities and planet.

 PERSONAL AND SOCIAL

Building on a culture of investing in our people, we’ll focus on promoting wellbeing in the workplace, respecting
and advancing human rights, and providing equality, inclusion and fairness for all.

We’ll champion these values in our communities, and throughout our hotels globally, help drive social and
economic change through skills training, volunteering and supporting people in times of need.

Building on our culture of investing in our people, we continue to act respectfully and responsibly to ensure a safe,
fair and inclusive workplace for all. We’re proud that our hotels and resorts are at the heart of local communities
all around the world and we’re here to support those around us when they need it most.
Creating an inclusive culture that nurtures and celebrates diversity is something we genuinely strive for at IHG, but
we know we need to do more to support our Black employees and communities. We have made a number of
commitments in the Americas, which will also help shape our response in other markets, such as continuing to
deliver ongoing inclusive leadership learning programmes and developing an Inclusion Index to track perception
of culture and behaviour in our employee engagement survey. We have also committed to supporting education,
employability and empowerment in the community through US partnerships with the National Urban League, the
National Center for Civil and Human Rights, and Jobs for America’s Graduates.As we celebrate and invest in our
diverse and inclusive culture, we seek to work with suppliers that share the same mindset. In 2020, our spend with
diverse suppliers in North America was $51 million. The top three highest spend diversity categories were minority-
owned businesses, women-owned businesses and small businesses. Following a review of our supply chain in 2019,
we identified suppliers working in the textiles industry as a priority for our attention, given they play a big role in our
hotels. In 2020, in partnership with CARE International UK and our key suppliers, we continued our programme to
create a more gender-inclusive workplace, with the aim of creating more productive, resilient and secure supply
chains. We will keep collaborating with specialist organisations to continue this work.At IHG, we have various ERGs,
where employees can come together over shared characteristics, life experiences or common needs. Our ERGs
help directly support the organisation through driving a more inclusive culture, encouraging creative thinking
through ‘think-tank’ type groups and advocating for allies. The ERGs cover areas such as gender, sexual
orientation, disability, wellbeing, race and ethnicity, Age, Generations, Parents and Carers, as well as virtual and
remote-working. Numerous ERGs have multiple office locations, including Out & Open which is present in the
Americas, Philippines and UK. The IHG Rise Initiative was launched across EMEAA in 2020, welcoming a total of 128
hotelbased female leaders to the programme. During 2020, mentors and sponsors supported our aspiring female
General Managers in a number of ways, including mentoring sessions, career development workshops, high-
impact learning modules and empowering conversations. In November, the Americas celebrated inclusion week
and put together a packed agenda of various events to get colleagues involved. This included ‘Mindfulness
Monday’, where a yoga session was carried out with the help of the Diverse Abilities Wellbeing Network (DAWN).

10. NH Hotel Group

 COMMUNICATION
An excellent customer experience starts with a superior employee experience. Our highly-skilled team of data
scientists and developers design, build, implement and service the solutions you need to exceed expectations at
every touchpoint.
An excellent customer experience starts with a superior employee experience
Data Analytics Services and Artificial Intelligence Services empower employees to deliver hyper-personalised,
contextual experiences faster and more conveniently, while significantly reducing the cost of serving customers.
Reach peak engagement
Our highly skilled team of data scientists and developers help you exceed customer expectations at every touch
point. We design, build, implement and service the right solutions, giving your employees what they need to
create powerful, long-lasting impressions.
Our Digital Experience Solutions provide the tools and insight you need to improve your business performance and
accelerate growth.
We’re living in a time when many businesses face the commodity trap. Too many products and services are similar,
making it hard to stand out. In many ways, customer experience has become the only way to make a difference.
But it can be difficult to measure the ROI of customer experience. Even though decision-makers recognise the
importance of keeping customers happy and satisfied, they often won’t invest in customer experience without
proof of its value.
Research shows that customers who enjoy positive experiences are likely to spend 140% more than customers who
report negative experiences. And delivering positive customer experiences can reduce the cost of serving
customers by up to 33%.
A positive customer experience is not always anchored in a customer-facing platform; it can also be delivered
through an internal digital experience that puts data at the fingertips of employees, empowering them to work
smarter and serve customers better.
The NH Hotel Group, which operates over 380 hotels in 30 countries with 59,000 rooms, is looking to improve guest
experience and business efficiency by implementing new and smarter working practices. Ricoh's collaborative
meeting room services, which include a web-based booking system and digital room signage, are already being
used on a regular basis to help hotel groups collaborate more effectively. "We are devoted to innovation at NH
Hotel Group. Ricoh's digital expertise, flexible approach, and worldwide reach are assisting us in driving group-
wide productivity and agility benefits."

 THINKING

NH Hotel Group presented a new Strategic Plan for 2017-2019 at its first Investor Day, a gathering of investors and
analysts of the Company that included the participation of the members of the Management Committee and
the Co-Chairmen of the Company.

In this way NH Hotel Group is in a position to complete its most profitable two-year period. This year and the next it
will reap the fruits of the important competitive advantages obtained following a period of transformation marked
by a significant investment in repositioning and in improving the experience which the Group has completed in
these years.

The new NH Hotel Group Strategic Plan is based on its current strengths, and is built on six major levers aimed at
creating value, and 15 objectives each of which have specific goals.

During the 2017-2019 period, one of the Company’s goals will be to highlight the efforts made in areas related to
brand development and segmentation, revenue management, quality and repositioning, while driving its
efficiency and continuing with debt reduction.

One of the levers of the new plan is based on continuing the process of concentration on the image of brands in
the high-end segment, extending the portfolio of the NH Collection and nhow brands.

NH Hotel Group is a leader in the field of revenue management, maximizing hotel incomes and the profitability of
the business and establishing the following priority actions:

 A Revenue Management team headed by a variety of internationally renowned professionals with vast
experience in Revenue Strategy and Hostelry. In turn they have a state-of-the-art NH Revenue Academy
to train, develop and retain the team.
 Use of state-of-the-art systems and tools that make it possible to forecast demand, room price, food and
beverages and functional area rates, as well as monitor results in real time. All this has made it possible to
automate prices in 2017: centralised price recommendation through distribution using different channels,
thanks to a tailored revenue administration system (NH Game Changer), which allows Revenue
Management teams to offer a manual price only “exceptionally” and focus on strategic tasks.
 Open Corporate Rate (OCR). In a market where dynamism is the key to the future, NH Hotel Group has
decided to take a step further this year. OCR lets corporate customers benefit from an unprecedented
discount range that will vary according to demand. In this way, all our customers will benefit from exclusive
rates. These exclusive rates will always have a guaranteed minimum discount and will be available 365
days a year.
  Meetings & Events Quotation Tool. This tool will provide a strategy focused on M&E customers with a total
revenue management vision that offers ad-hoc quotations at an excellent speed and, therefore, an
increase in satisfaction levels.NH Hotel Group believes that one of keys for company sustainability is a
consistent and continuous training. This year, as in the past 5 years, we have conducted our Global
Commercial and Pricing Seminars, con special focus in one of our growth pillars, commercial/revenue
management. These seminars aim to align in market trends, new strategies and touching edge
technologies to our Hotel General Managers, Marketing and Commercial teams across our 29 countries
and hotels.

 PERSONAL AND SOCIAL

NH Hotel Group’s culture, inspired on its vision and a clear calling to serve the customer, is what has set the Group
apart in the sector from the very beginning.

In 2017, this culture has made it possible to begin evolving from a management model to a leadership model that
incorporates the principles that guide the day-today activities of directors and employees and is reflected in the
Company’s eight beliefs:

1. We are obsessed with delivering memorable experiences for our customers

2. We are proud to serve
3. We strive to be the best, even if we are not the biggest
4. We are responsible for our results
5. We are for our employees. Our employees care for our guests
6. We are active in the communities where we live
7. We have a young mindset
8. We enjoy what we do … and we do everything with a smile

PART 2

1. Discuss the sources of competitive advantage.

Competitive advantage is a superior ability or resource that allows one firm to out compete all others in some area.
There are 6 sources of competitive advantage.

1. People
People are the driving force behind most competitive advantage. If your people are better at innovating,
creating, producing and establishing relationships you may achieve competitive advantages.

Your competitors may be able to copy your products but they'll never be able to copy your people (although
they might poach them). It's common for much of a firm's competitive advantage to be safely locked up in
the tacit knowledge of its employees.
2. Organizational Culture & Structure

Organizational culture is the shared habits, behavior, beliefs, mission, norms and symbols of your organization.
You could have the best and brightest workforce on the planet — it's not going to matter if they have no common
mission. If your people put all their energy into negative politics or resisting change you'll be ineffective.
An effective culture focuses the energies and abilities of your people on producing meaningful results.

3.Processes & Practices

If you have superior methods of producing results you may enjoy competitive advantages. Processes and
practices can be difficult for competitors to replicate.

4. Products & Intellectual Property

The design of your products can be a competitive advantage. However, this is typically easy for competitors to
replicate. Intellectual property laws can protect your rights to product, technology and process designs.

5. Capital & Natural Resources

Capital and access to natural resources were traditionally the source of most competitive advantage. The
importance of capital has declined over time. For example, capital is the primary competitive advantage in old
industries such as transport. If you own a railway that has exclusive routes, it's difficult for the competition to build a
route to compete. New industries such as information technology are less capital intensive.

6. Technology

Technology rose as a major factor in competitive advantage with the industrial revolution. At first, technology
included industrial machinery, transportation technology, energy, office equipment and consumer products. In the
20th century information technology and biotechnology emerged as major factors.

2. Explain comprehensively the Service Profit chain. Site an example.

The American economists W. Earl Sasser Jr. and Leonard A. Schlesinger and American businessman James L.
Heskett, published their ground-breaking book “The Service Profit Chain – How leading companies link profit and
growth to loyalty, satisfaction and value” in 1997, including an explanation of the Service Profit Chain.

The basic principle of the Service Profit Chain theory revolves around the fact that customer satisfaction starts with
good staffing and treatment of ones own employees. Committed employees are sociable and convey this to the
customer.

The Service Profit Chain is all about connection

As it turns out, successful companies remain at the top because they manage their Service Profit Chain well.
Apparently, there is a link between service on the one hand and profit on the other.

This connection consists of links; hence the name ‘chain’. Such companies have a quantifiable set of relationships
that directly link profit and growth to the many aspects of service.

The Service Profit Chain involves customer loyalty, customer satisfaction, employee loyalty, employee satisfaction
and productivity. This way, strong links develop between:

1. Profit – Customer loyalty

2. Employee loyalty – Customer loyalty
3. Employee satisfaction – Customer satisfaction
Based on the concept of the service-profit chain, a company should establish a link between employees and
customer experience on the one hand and create profit and growth on the other. The different relationships
reinforce each other; satisfied customers contribute to employee satisfaction, loyal employees contribute to
customer loyalty, and this customer loyalty will eventually result in profit.

Service Profit Chain Steps

The Service Profit Chain shows that a company’s profitability and growth are a result of customer and employee
satisfaction. The model consists of sequential links that lead to success. Each link consists of so-called KPIs; Key
Performance Indicators.

In other words, these are crucial performance indicators; variables that are used to analyse the performance of a
company, brand or product. The success of an organisation is measured with KPIs.

These links can be compared to steps that need to be taken. The goal of these steps is to make a company
successful. Each step can, as it were, be increased or decreased. A correct ‘volume setting’ will result in profit and
growth for a company. It involves the following seven steps:

Step 1 – Internal: service quality

The first few steps of the Service Profit Chain involve employees. An organisation can only be successful if it invests
in its own employees. This means that a safe work environment should be created, employees should be involved
in the decision making process and should work together in a pleasant atmosphere.

A company can achieve this by investing in their employees, to support, train and invest in the development of its
employees. All to an extent that hiring, remuneration and development policy are important components of this
first step. New employees with the right attitude, can contribute to the internal service quality.
By rewarding employees, they are motivated to be actively engaged in the organisation. With training, education
and course options, employees are in a better position to be fully committed to a company. The internal service
quality will subsequently lead to employee satisfaction.

Step 2 – Employee satisfaction

One step cannot be achieved without the other. To satisfy employees and keep them satisfied, the same amount
of attention must be devoted to them as is devoted to customers. Engaged employees are more productive,
enabling them to provide a better service.

They pass on their enthusiasm, leading to a positive image. Their job satisfaction has a positive effect on attracting
and retaining customers. This so-called customer value can only be generated by satisfied employees. This results
in loyal and productive employees.

Step 3 – Loyal and productive employees

Committed employees are loyal to their company, department and colleagues. They feel closely involved in the
organisation and its joint goal. Therefore, they are more productive and feel very responsible for any end result.

In this context, every employee is an ambassador of the organisation and passes this view on to the customers.
The deeper need of each individual employee is important in order to make them even more loyal and
productive, so they can perform their job with pleasure.

Step 4 – Value proposition for the customer

The external value proposition for the customer is also referred to as the customer value.

Why does a customer choose a specific product or brand or to only do business with a company the customer is
already familiar with? Of course, the product or service itself is important, however the customer value is mainly
created by the employees of the company in question.

They ensure a customer values the way he/she is assisted and addressed. Satisfied employees truly care about the
company and are able to convey this to their customers in a good and honest manner. As a result, the service
they provide will increase and their attention will be sincere. Customers appreciate this.

Step 5 – Customer satisfaction

Step 5 and 6 are related and are directly linked. Customer loyalty is a result of customer satisfaction; a dissatisfied
client will not be loyal and will not place a new order.

The more satisfied a customer, the greater the chance that the customer will return for repeat business or place
larger orders. Satisfied customers are seen as free publicity; they are ambassadors of the company and can
recommend products and/or service in their environment with full enthusiasm.

Step 6 – Customer loyalty

A customer is loyal if he/she goes to the same company for a subsequent purchase, irrespective of whether or not
the product or service is provided cheaper by a competitor.

The customer deliberately chooses to do so and wishes to be helped by the company he/ she is already familiar
with and has had positive experiences with. This customer loyalty will subsequently result in more growth and a
higher profit for the company. If all customers are assisted well and are provided with the right service, this would
be an excellent investment for the future. Customers will continue to return by their own accord.

Step 7 – Profit and growth

Profit in the Service Profit Chain is not the goal, it is the result. As you can conclude from the previous steps, all
additional purchases will ensure that the company will make a profit and grow. Satisfied customers have the
strength of word of mouth advertising; they contribute to the positive image of the company.

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