EHL  EMBA  Capstone  Project  Youjin  Lee  

About the Project

Why

Objective

Methodology

Sharing Economy

Time-share

Condo  

Vacation home

How it Works

Key Drivers

Accessibility  

Social  Graph  +  Reputation  =  Trust  

Frictionless  

Standardization  

“Experience  Economy”  

Community  

Trust  Shift  

Alternative  Consumption  

Financial  Pressure  

Trends

Expansion

Segmentation

Business Travel

Online Residential Rental for Business Travel?

Pros

Cons

•  Location! Everywhere!

•  Value for Money

•  Diverse offerings

•  Meeting a local

•  Inconvenient “Hassle”

•  Unreliable

•  Lack of… everything

else

•  Image of the Brand

Ecosystem

Host  

Not professional … yet

Interaction with guest?

Superhost?

Hotel for Business Travel?

Pros

Cons

•  Convenient all the way

•  Service, Amenity,

Facility

•  Reliable & Consistent

•  Brand & History

•  Boring… seriously

•  Location

•  Not-so-budget-friendly

•  Impersonal

Hotelier  

Behind the desk

Too Professional

Interaction with guest?

Real service?

Why the Gap?

Why the Gap?

30s  +  Veterans  +  Road-­‐Weary  +  Wide-­‐eyed  +  Passionate  high-­‐tech  

Professional Image

Location Amenity/ Facility/ Service

Convenience

Connection Predictability

Budget-friendly

Experience the City

Better than Home

No hassle, just relax

Eat something

nice

Who can fill the Gap?

ORR

Hospitality Standard ? Limitation!

Regulation

Dilution of Image

Who can fill the Gap?

Understand Business Travelers

Physical Infra.

Trusted Brand

Hospitality Culture

Expertise in Accommodation

Management

Network: Reservation,

Procurement, Sales

Hotel

Host    

Additional    Property  

Guest    

Additional  Business    Travelers  

New Revenue Stream

Professional Management

Experience + Reliability

How?

ORR Hotel +

+ +

Online Residential Rental

for Business Travelers Managed by Hotel Co.

How it Works

Accor

Host

Listing

Share the Management (Network, Infrastructure, Expertise) Hospitality Standard Training

Bundle of Services

Accor Booking

Bundle of Services

Share the Hotels (Space, Loyalty Program, Professional Image)

Business Traveler

Local Experience

How it Works

Local Businesses

 Manage:  Evaluation  •  Photo  +  Interview  •  ‘Sign’  &  ‘Key’  Recommend  the  Price  Listing    ➤  Host

Guest Check-­‐out  ➤  

Preparation  ➤  Host

Guest Check-­‐in  ➤  

Guest Stay  ➤  

Guest Booking  ➤  

 Hotel-­‐like    Amenity  

   Hotel-­‐like  Service:  24/7  Customer  Service  •  Concierge  •  Local  Recommendation  •  Experience  booking  •  Breakfast  

 Cleaning  &  Laundry  

Guest Search  ➤      Business  Concierge  

 Instant  Booking  +  Choice:  Amenity,  Service  

 Check-­‐in  Notification  •  ‘Sign  &  Key’  

How it Works

How it Works

Stay Breakfast

Conference Room Gym Business Center

Babysitting service

Local Dining

Night Bar Lobby

Loyalty Program

Business Traveler

Extraordinary Experience for

Business-Travelers-Next-Door

Accor’s customer base Early Adopters Alternative Option

Small/Medium Co.’s Art, Tech, Young

Big Company Names

(Struggling) Vacation rental hosts, B&Bs

Real Estate Agencies, AMC

Offline Promotion Free Trial Traditional Ads

Marketing

Pre-Launch

Facebook YouTube LinkedIn

Social Media

Check out the Local Event!

Community Management

Sales

Host

Travelers

Cost Revenue

Host

Business Traveler

•  Online Platform: IT •  Brand Development: Design

•  Sales & Marketing •  Community Management

•  Cost of Sales??

Service Fee

Service Fee

Sales Forecast

Financial Plan

Account'! 'Year'1'Q1'' ''Year'1'Q2'' ''Year'1'Q3'' ''Year'1'Q4'' 'Year'2'' 'Year'3'' 'Year'4''

'Sales'Revenue'' '€'7'''' '€'7'''' '€'42'125.00'' '€'108'950.00'' '€'982'259.20'' '€'1'501'931.74'' '€'2'304'369.26''

Cost'of'Sales''€'7'''' '€'7'''' '€'7'793.13'' '€'20'155.75'' '€'181'717.95'' '€'277'857.37'' '€'426'308.31''

Salary''€'77'350.00'' '€'112'350.00'' '€'112'350.00'' '€'112'350.00'' '€'460'635.00'' '€'472'150.88'' '€'483'954.65''

IT'Supplementary'cost'''€'10'000.00'' '€'10'000.00'' '€'10'000.00'' '€'10'000.00'' '€'40'000.00'' '€'40'000.00'' '€'40'000.00''

'Sales&Marketing'' '€'7'''' '€'150'000.00'' '€'4'212.50'' '€'10'895.00'' '€'98'225.92'' '€'150'193.17'' '€'230'436.93''

'General&Administrative'''€'8'735.00'' '€'27'235.00'' '€'2'106.25'' '€'5'447.50'' '€'49'112.96'' '€'75'096.59'' '€'115'218.46''

'Total'Investment'''€'96'085.00'' '€'299'585.00'' '€'7'''' '€'7'''' '€'7'''' '€'7'''' '€'7''''

'Total'operating'cost'' '€'7'''' '€'7'''' '€'136'461.88'' '€'158'848.25'' '€'829'691.83'' '€'1'015'298.01'' '€'1'295'918.35''

Operating'Margin'' ' 7224%' 746%' 16%' 32%' 44%'

'EBITDA'''€'7'''' '€'7'''' '€'794'336.88'' '€'749'898.25'' '€'152'567.37'' '€'486'633.73'' '€'1'008'450.91''

'Depreciation'' '€'7'''' '€'7'''' '€'7'''' '€'13'333.33'' '€'13'333.33'' '€'13'333.33'' '€'13'333.33''

'EBIT'''€'7'''' '€'7'''' '€'794'336.88'' '€'763'231.58'' '€'139'234.03'' '€'473'300.40'' '€'995'117.58''

'EBIT'margin''

' '

7224%' 758%' 14%' 32%' 43%'

ROCE!

! !

&12%! &6%! 6%! 12%! 17%!