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 Curio - A Collection by Hilton, and Executive Vice President, Travel and Hospitality, and Chief Legal Officer, Active Travel Alexandra Jaritz, Global Head, Tru by Hilton at Hilton Worldwide Madison Beach Hotel, 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 General Manager 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 Hotels & Resorts 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 industry 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 retail 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 lodging 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 hospitality industry? 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.