Fairmont Hotels & Resorts

Expanding Possibilities

Travel Services
Case Study
Building A Global Brand
Through eCommerce
When does a hotel become more than
a place to stay? Fairmont Hotels &
Resorts knows the answer. And
through the innovative use of electronic
commerce (eCommerce), Fairmont is
ensuring that guests around the world
will soon know the answer, too.
Rather than simply offering
rooms to guests, Fairmont
offers extraordinary guest
experiences in extraordinary
places. This is what sets
Fairmont apart from its
competitors. This is what
lures guests back again
and again. And this is
what drives Fairmont’s
ambitious plans for growth.
Case Study… Accenture And eCommerce Channel Innovation
Formed in 1999 when Canadian Pacific
Hotels acquired Fairmont Hotels,
Fairmont Hotels & Resorts is the
largest luxury hotel management
company in North America, with 37
properties across Canada, the United
States, Mexico and the Caribbean.
However, while many of these properties
have been in existence for a century
or more, Fairmont Hotels & Resorts is a
relatively young brand. In order to meet
its worldwide expansion objectives,
Fairmont recognized the need to build
its brand as a provider of unrivaled
customer service in all markets.
Working with Accenture to develop an
innovative approach to eCommerce,
Fairmont is now poised to build its
brand worldwide and capture greater
international recognition. Today,
Fairmont’s website visitors from around
the world can know what Fairmont’s
guests have long understood — that a
Fairmont hotel is more than simply a
place to stay. It’s a place to experience.
An eCommerce
Solution
The goals of Fairmont’s Internet strategy
were simple: to enhance the company’s
ability to market its properties to indi-
vidual travelers, to persuade potential
guests to choose Fairmont as their
hotel of choice, and to provide its
guests with unmatched online service.
The implementation of this strategy,
however, was much more difficult.
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The hotel’s eCommerce
solution comprised two
major components that were
implemented simultaneously:
developing a new website
and strengthening guest
data warehouse capabilities.
During the analysis of the company’s
operations, it became apparent that a
compelling, user-friendly online expe-
rience would require more than a new
website. A “flashier,” interactive online
presence might draw more traffic to the
site, but it would generate little value
if Fairmont was unable to personalize
the visitors’ experiences and persuade
them to book a room. In other words,
the company needed to develop its
ability to gather and, more importantly,
use guest information to build online
relationships and enhance guest satis-
faction — online and off.
The hotel’s eCommerce solution com-
prised two major components that were
implemented simultaneously: developing
a new website and strengthening guest
data warehouse capabilities.
Case Study… Accenture And eCommerce Channel Innovation
Fairmont’s Website And
Online Booking Engine
Fairmont’s existing website provided general information and
allowed guests to book rooms through a third-party vendor.
But the Fairmont/Accenture team knew an enhanced site
could do much more. One of the first orders of business was
bringing the website in-house, which would allow Fairmont
to integrate the website with the hotel’s central reservation
and guest data warehousing systems. By doing so, the hotel
could begin creating a more personalized, transaction-based
experience for its website visitors.
Next, the Fairmont/Accenture team focused on those features
that would offer the most compelling experience for the
Internet visitor — and the greatest value for the company.
Direct Online Booking — the hotel’s new Web-based applica-
tion allows guests to book rooms through Fairmont’s central
reservation system directly over the Internet. The system
recognizes the visitor when he or she logs on and pre-loads
information stored in the guest’s profile, such as President’s
Club (i.e., the guest loyalty program) status and preferences.
Guests can view rooms, rates, availability and promotional
packages offered at each of Fairmont’s properties. And they
can confirm, update or cancel their reservations in real time,
regardless of their original booking source.
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Figure 1.
Fairmont Hotels & Resorts ©2001
One of the most unique features of the new booking applica-
tion allows guests to sign up for on- and off-site activities
(e.g., restaurant reservations, theater tickets, golf tee times,
ski passes) in conjunction with their stay at a particular hotel.
These requests are directed to Fairmont personnel, who
coordinate and confirm the reservations with the guests. In
addition, the application allows Fairmont to suggest activities
for guests, based on their preferences and previous activity.
Guests can request changes to their activity reservations online
at any time. And if guests cancel their room reservations, the
system generates a reminder that they should also cancel
their activity bookings.
Enhanced Brochureware — Accenture and Fairmont looked
to Red Sky to develop innovative Web pages that would dis-
play compelling visual information and support Fairmont’s
brand image (See Figure 1). Using the latest display and
search technologies, the website now invites visitors to fully
explore the Fairmont “experience.”
In addition, Fairmont can now create a more compelling
online experience through enhanced pictorial views of the
hotel properties and their surroundings. Of particular value is
a content management tool that allows non-technical
Fairmont personnel to continuously update the website as
new images and offerings become available.
Case Study… Accenture And eCommerce Channel Innovation
President’s Club Profile Management
and Personalization — The President’s
Club is Fairmont’s guest loyalty program,
which offers preferential services to
members at all Fairmont properties. The
hotel’s new application allows guests
to sign up for the program online and
personalizes members’ experiences
based on previous booking activity,
regardless of the property or booking
source. By managing the President’s
Club members more efficiently and
integrating their experiences throughout
the hotel chain, Fairmont is able to send
specific messages and promotional
offers that strengthen relationships
with this important market segment.
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 Fairmont’s Guest
Data Warehouse
Fairmont’s previous guest insight and
data warehousing capabilities had
served the company well in its Canadian
market — where its brand and commit-
ment to customer service were well-
known and respected. However, as
Fairmont expanded into the more
competitive global market, it became
clear that the company would also
have to expand its ability to manage
guest information across properties.
Specifically, Fairmont and Accenture
worked to develop guest data ware-
housing capabilities that would allow
Fairmont to:
• Maintain guest profile information
across properties.
• Target guest segments with person-
alized communications, incentives
and discounts.
• Better manage its loyalty program.
• Acquire new guests and build loyalty.
Fairmont is now able to
maximize its revenues by
focusing its marketing and
brand-building efforts on
higher-value guest segments.
Case Study… Accenture And eCommerce Channel Innovation
To achieve these guest data warehousing goals, Accenture
and Fairmont focused on two priority areas:
Individual Tracking — The goal of the guest data warehousing
solution was, first and foremost, to strengthen the hotel’s
ability to track visitors globally across the hotel chain — not
just at the individual property level. In this way, Fairmont
could improve its customer service capabilities by better
understanding their guests’ preferences, booking channels
and spend patterns.
Target Marketing — Secondly, Fairmont needed to develop a
life-cycle view of its guests — from the first time they explored
the Fairmont site to the time they booked a reservation.
Profiling individual behaviors in this way would allow Fairmont
to establish targeted marketing campaigns tailored to the
preferences of unique market segments. Guest profiling has
also allowed Fairmont to pursue cross-selling and up-selling
opportunities with targeted audience groups.
The new guest data warehouse is integrated with Fairmont’s
new website, as well as the hotel’s central reservation and
property management systems, and can gather guest infor-
mation at all touch points. Equally important, the guest data
warehouse helps analyze this data in order to determine
“guest value.” As a result, Fairmont is now able to maximize its
revenues by focusing its marketing and brand-building efforts
on higher-value guest segments. It can also, for the first time,
measure the effectiveness of segmented marketing initiatives.
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 Fairmont Hotels & Resorts: A Century Of Growth And Service

Canadian Pacific (CP) Fairmont Hotels

The lavish Mount Stephen House 1886

opens along the newly constructed
Canadian Pacific Railway.

CP opens three additional luxury 1888-93

hotels across Canada.
1907 The Fairmont San Francisco opens.

1945 The Fairmont San Francisco is pur-

chased by Benjamin Swig, who later
acquires six additional U.S. properties
CP purchases Canadian National Hotel 1988 under the "Fairmont" name.
chain, making Canadian Pacific the
largest owner-operated hotel company
in the country.

CP purchases Princess Hotels, with 1998

properties in Mexico, Arizona,
Bermuda and Barbados.

Canadian Pacific Hotels 1999

purchases Fairmont Hotels
and changes the name to
Fairmont Hotels & Resorts.
2000 Fairmont adds four proper-
ties to its portfolio in
Vancouver, Santa Monica,
Kansas City and Maui.

Fairmont launches an 2001

eCommerce initiative to 2001… Fairmont continues its
drive international expansion expansion, based on the
and brand building. long-standing principles of
its founding companies:
providing exceptional services
in distinctive surroundings.

Case Study… Accenture And eCommerce Channel Innovation 6


Integrating The
eCommerce
Solution
In developing this eCommerce solu-
tion, the Fairmont/Accenture team
delivered the technical solution ele-
ments, as well as assessed and
redesigned the company’s affected
business processes (e.g., marketing and
activity booking). And they imple-
mented organization-wide changes,
particularly in governance and skill
development, that would be required
to support the new capabilities.
Specifically, the eCommerce solution
involved integrating:
• New roles, skill sets and training
programs that would teach
Fairmont employees how to use the
new systems.
• Comprehensive communications
programs that would generate buy-in
and feedback from Fairmont’s
affected workforce.
• Incentive and performance measure-
ment programs that would encourage
Fairmont’s employees to use the
new systems correctly.
• Program management skills that
would allow Fairmont to sustain the
project’s success.
These programs formed the basis for
managing and sustaining workforce
improvements and employee buy-in
that were critical to the overall success
of the program.
Case Study… Accenture And eCommerce Channel Innovation
The Value Of eCommerce
Fairmont is now well on its way to achieving its corporate
objectives of global expansion and revenue growth. With its
eCommerce solution now in place, Fairmont is:
• Strengthening relationships with, and increasing the loyalty
of, individual travelers via personalized offers.
• Attracting new guests (and revenues) via the Internet.
• Increasing sales through last-minute Web-based promotions.
• Migrating existing guests from low to high cross-chain use.
• Reducing marketing, call center, President’s Club fulfillment,
promotion and brochure costs.
These new capabilities are further distinguishing the company
as a leading hotel operator — one that truly “knows” its guests
and provides unparalleled luxury services that address their
unique needs. Equally important, by integrating the company’s
guest data warehousing system with its new website func-
tionality, Fairmont is building its brand globally through
direct relationships with its guests.
For further information, please contact:
E. Edwin Ramm
Accenture, Airlines practice
+1 727 897 4500
e.edwin.ramm@accenture.com
Visit us at
www.accenture.com/travel services
©2001 Accenture
All rights reserved.
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