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Home , Conrad Hotels, Curio (brand), Hilton Worldwide, Hotel, Tru by Hilton

Unlimited The Value of Trade Opportunity An Interview with Dianna Vaughan, Senior Vice President and Global Head, An Interview with Elizabeth Topazio, DoubleTree by Hilton and - A Collection by Hilton, and Executive Vice President, and Hospitality, and Chief Legal Officer, Active Travel Alexandra Jaritz, Global Head, at Madison Beach , Curio Collection by Hilton, in Madison, Connecticut

EDITORS’ NOTE Prior to joining are demanding higher commissions to or receive unrestricted cash from us payable EDITORS’ NOTE A 20-year hospitality veteran, Even though the accommodations and Active in 1994, Liz Topazio was an deliver business. “in-kind” with their hotel accommodations by Dianna Vaughan has held several leadership amenities at some of our brands may have simi- M&A associate at Orloff, Lowenbach Our trading programs help our issuing to us a hotel credit. It’s important to positions at Hilton Worldwide: she’s served as a larities, we do strive for distinct cultures that in New Jersey from 1992 to 1994, hospitality partners countermand some note that we have evolved traditional barter to and Director of Sales, led the really set each brand apart. and at Dechert LLP in Pennsylvania of these challenges. remove historical performance risk by providing global brand performance support team for both Jaritz: The mid-scale segment today – from 1988 to 1992. She’s a mem- What trading programs does the promised goods and services, or cash pay- Hilton & and Embassy Suites by priced, on average, in the $80 to $100 price ber of the New Jersey, New York, Active offer hospitality partners? ment, which is the basis of each barter trade up Hilton, and served as Vice President of Marketing range – is largely inconsistent, with relatively and Pennsylvania bars and gradu- While our trading programs are front to our hospitality partners in exchange for for the Hilton Worldwide portfolio of brands, in undifferentiated product, and with limited for- ated from Villanova University Law varied and customizable, for the hos- the hotel credit. This program delivers needed addition to being the architect behind the Global ward thinking design. The mid-scale segment School in 1988 with a J.D., cum pitality we have available liquidity and allows our hospitality partners to Customer Marketing Promotions team at the hasn’t really evolved much with the changing laude, and Georgetown University, two core trading programs. The first, recapture and monetize the value of their empty company. Recently, she did a tour inside Human consumer demographics and psychographics. Edmund A. Walsh School of Foreign our “Cash Cross Purchase Program,” hotel rooms. Resources, where she worked with the HR con- In the case of Tru, because the mid-scale seg- Service with a B.S.F.S., magna cum Elizabeth Topazio enables our hospitality partners to pur- How is Active able to shift market share sulting and Team Member engagement teams Dianna Vaughan Alexandra Jaritz ment is a sea of sameness, it was relatively laude. She participates in a variety chase goods and services, such as TVs, into hotels? heading up the Hilton Worldwide global culture easy to differentiate and actually be a game of charitable endeavors and is on the Advisory linens, bedding, media, or other items through We trade with all of our clients, most of initiatives including overseeing the diversity and What makes Hilton special for you? changer in that space. Board for Animal Alliance of New Jersey. us at the same pricing, terms, and conditions as whom hold our trade credits. When our cli- inclusion team. Vaughan: I’ve been with Hilton over How far can you go with service when they would otherwise pay on their own. As a ents book their corporate transient and group Prior to joining Hilton Worldwide, Alexandra 20 years. What I’ve loved about working with you’re looking at the $80 to $100 range? COMPANY BRIEF Active International result of our trading transactions with the under- business through us, we allow them to utilize Jaritz held key executive positions with Choice Hilton is the sense of unlimited opportunity. Jaritz: The way we go about developing (activeinternational.com), the global leader their trade as partial payment. This use of trade Hotels International, serving most recently as a On a personal level, I’ve also enjoyed mak- new brands is we look at the return on invest- in corporate trade, consults with Fortune 1000 allows our clients to realize significant finan- Corporate Officer and Senior Vice President of ing lifelong friendships and the opportunity to ment we want to drive – specifically, the cost to companies on ways to leverage their enterprise cial benefits, even when their bookings are at Brand Strategy and Marketing. Additionally, see the world. build and the operating margins. We spend a lot assets, typically excess consumer packaged a hotel’s normal prevailing or negotiated cor- Jaritz brings a unique financial perspective to Jaritz: I have now been with Hilton for a lit- of time looking at not only the prototype costs, goods, real estate, and capital equipment, to porate rates. As a result, our clients are highly Tru by Hilton, having worked as a Real Estate tle over a year. Having the opportunity to inno- but at the whole operations model. purchase pre-budgeted expenses like media, This program delivers incentivized and motivated to book their travel Consultant at Ernst & Young, LLP in the Hospitality vate and build a new brand from scratch backed Labor is one of the biggest cost drivers marketing, events & hospitality, freight services at hotels owned or managed by our Services Group and a Financial Analyst in the by Hilton’s strong brand reputation, its commit- and so we focus on leveraging technology and & logistics, and LED lighting & displays. Active needed liquidity and hospitality partners. Investment Banking Division at Lehman Brothers ment to hospitality, and its powerful commer- streamlining the operations of the hotel where places more than $1 billion in media annu- Are there additional benefits from Inc. She received her Bachelor of Science degree cial engine really excited me to join Hilton. possible, to free up time for our Team Members ally on behalf of its clients and has successfully trading? in Hotel Administration from Cornell University Will you both talk about the brands you to deliver our Tru Spirit hospitality. Are we go- helped many of the world’s leading brands allows our hospitality Yes. In addition to those mentioned above, and received a Master of Business Administration lead, and how hard is it to differentiate today? ing to deliver it differently than a Waldorf or recover value, reduce costs, and increase mar- from an acquisition cost perspective, since we degree from Duke’s Fuqua School of Business. Vaughan: Each Hilton brand caters to a dif- Curio? Absolutely, but we’re leveraging different ket share. Providing a dynamic financial tool don’t charge any commissions or fees, have our ferent type of guest and we work very closely tactics to free up Team Members’ time to focus and creative marketing solutions, Active has partners to recapture own internal reservation center that allows us COMPANY BRIEF Hilton Worldwide (hilton with each brand head to ensure we stay on delivering Tru Spirit. For example, we will helped its clients improve their business perfor- to book direct with the hotels, and can often worldwide.com) is a leading global hospitality aligned with each brand identity. For example, be deploying digital key and a self-service mar- mance, delivering $1.5 billion in economic ben- and monetize the deliver group RFPs directly, avoiding usage of company, spanning the sector from lux- Curio – A Collection by Hilton, is a global set of ket payment system. We’ve also simplified our efit since 1984. Active International is based in on-line event management systems, our book- urious full-service hotels and resorts to extended- hotels hand-picked for their distinctive character guest rooms and made them much more effi- New York and has offices in 16 countries. ings have lower acquisition cost. Additionally, stay suites and mid-priced hotels. For nearly 100 and personality. The hotels selected to join the cient to clean and maintain so we have time for value of their empty we maintain rate parity and, notwithstanding our years, Hilton Worldwide has offered business Curio collection themselves define the brand – better service in other areas. Finally, we’re also What are some of the challenges impacting clients’ use of trade when paying us, we always and leisure travelers the finest in accommoda- we don’t have a prescriptive build design. Most creating a team culture characterized as being the ? insure each hotel is paid in accordance with tions, service, amenities, and value. The com- of these hotels are in that upscale luxury sector one Tru Team full of LIFE (loveable, imagina- One of the biggest challenges facing the hotel rooms. their respective trading program with us, i.e. pany’s 13 brands are comprised of more than and appeal to passionate travelers seeking lo- tive, fearless, and energetic). As part of our one hospitality industry is developing customer 100 percent in cash under our Cross Purchase 4,700 hotels and time-share properties, with over cal discovery and authentic experiences. This Tru Team approach, our Team Members will acquisition strategies and creating loyalty in a Program, or 100 percent in hotel credit under 775,000 rooms in 104 countries and include lux- is just one set of guests in this sector, and then cross-share roles. marketplace with increasingly fragmented dis- our Hotel Credit Program. Further, our experi- ury brands, Waldorf Astoria Hotels & Resorts and there will be other luxury-minded guests who Is the Curio collection well understood tribution channels. Similar to many other enced sales team markets and promotes our & Resorts; lifestyle brand, Canopy are more attracted to the type of luxury offered today and how do you define what the true industries, the impact of digital has created lying suppliers of such goods and services, we hospitality partners’ hotels to our clients on a by Hilton; full-service hotel brands, Hilton Hotels by Waldorf or Conrad. luxury experience is? an environment that has disrupted distribu- are able to provide additional value with each high-touch basis, as a no cost extension of their & Resorts, Curio – A Collection by Hilton and DoubleTree by Hilton, on the other hand, Vaughan: For Curio, we’re really in that tion channels and made it difficult for hotels to purchase in the form of a guaranteed future internal sales teams, and further pre-clears all DoubleTree by Hilton; focused–service hotel is a fast-growing, global collection of more than upscale luxury space and the consumer under- control rising acquisition costs as they seek to revenue stream in cash room bookings at their group business to insure it constitutes “new” brands, Hilton Garden , , 465 upscale hotels in gateway cities, metropoli- stands what collections are today better than maintain and/or increase ADR and occupancy, hotels. Our cash booking commitment is typi- business to each hotel, driving additional value and Tru by Hilton; all suites brands, Embassy tan areas, and destinations. DoubleTree they did five years ago. and build a loyalty base to assure repeat busi- cally 10 percent or more of the pre-tax purchase and avoiding any sales channel conflicts with Suites by Hilton, Homewood Suites by Hilton and differentiates itself with its CARE Culture, which We know that our consumers really want ness. Further compounding matters, the sharing price of the goods and services purchased. hotel sales teams. ; and vacation ownership is focused on ensuring guests receive human to have that local experience, which is what it’s economy has been siphoning business in key The second, our “Hotel Credit Program” (or Ultimately, our business model provides brand, Hilton Grand (HGV). It has touch points during each part of their stay, start- all about today. So we’re focused on ensuring metropolitan markets while, at the same time, traditional barter), enables our hospitality part- additional value and benefits to participants, more than 55 million members in its award–win- ing with the presentation of a warm chocolate that the Curio experience is authentic to where OTAs and on-line event management systems ners to purchase needed goods and services, which is a win-win situation for everyone.• ning customer , Hilton HHonors. chip cookie upon arrival. each individual property is located.• VOLUME 40, NUMBER 1 POSTED WITH PERMISSION. COPYRIGHT © 2017 LEADERS MAGAZINE, INC. LEADERS 159