How an Effective Recovery Strategy Turned the Business around for the Ngong Ping 360. Dr Stella IAAPA Asian Attractions Expo 18 June 2015

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Sheryl Marshall
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1 How an Effective Recovery Strategy Turned the Business around for the Ngong Ping 360 Dr Stella IAAPA Asian Attractions Expo 18 June 2015

2 Topics The Story of NP360 Issue happened in 2012 Impacts of the Issue Strategies to revitalize the brand Our interim achievements 2

The Story of NP360 A Build-Operate-Transfer (BOT)

(Franchisee) Opened in September 2006 NP360 Ltd, the

3 The Story of NP360 A Build-Operate-Transfer (BOT) project (from ) Operating Agreement signed in 2003, between the Govt of HKSAR acting through Commissioner for Tourism and MTR Corporation (Franchisee) Opened in September 2006 NP360 Ltd, the wholly owned subsidiary of MTR Corporation, operates and manages the tourist attraction 3

4 The longest bi-cable ropeway in Asia 5.7 Km Haul & Track Ropes 2 Terminals 2 Angle Stations 8 Towers 108 Cabins 25 min. Ride Ngong Ping Village 4

The Engineering Wonder Mega structures built on the

weather conditions and geological environment Built

elevation at Tower 6 (585m) which is higher than the

Lantau Island Country Park Helicopters + Mules System

6km rescue trail built along the system First-ever

5 The Engineering Wonder Mega structures built on the rocky mountains Built & operated under challenging weather conditions and geological environment Built on the 8 th highest mountain in HK (Nei Lak Shan) Max. elevation at Tower 6 (585m) which is higher than the Victoria Peak Minimised disturbance to the North Lantau Island Country Park Helicopters + Mules System integrated into the environment Longest bi-cable ropeway in Asia (5.7km) Max. span of 1.5km between towers T2B and T3 5.6km rescue trail built along the system First-ever largest glass-bottom cabin (crystal cabin) in the world Discovery Channel Extreme Engineering

6 Ngong Ping 360 6

7 The Amazing Journey Starts. It is an Engineering Wonder blending Culture & Nature 7

8 Chinese New Year 2012 Service Suspension 8

9 9 9

10 About the Issue 3 rd Day of Chinese New Year Peak of the Peak Coldest day in the last 60 years. Stopped for 30 minutes, slow movement on average speed at 1.5 m/s 800 guests on line for 1-2 hours Other guests transported back from Ngong Ping (uphill) to Tung Chung (downhill) 10

11 Impacts of the Issue Damage to the brand name Receive wide range of negative media coverage Loss of public s trust and stakeholders confidence Stop business operation for 2 months for investigation 11

12 Strategies to revitalize our brand (1) Maintenance Regime (2) Marketing & Sales (3) Customer Services (4) Corporate Communication 12

13 A Safe & Reliable Cable Car System 13

14 Strengthen the Cable Car Operations Organisation Strengthen the manpower Competencies and skills People Development Government- recognized Diploma Course 14

15 Asset Management Step-by-Step (5) Equipment Disposal & Renewal (1) Asset Introduction NP360 Asset Management System (4) System Modification & Upgrade (2) Operations & Maintenance (3) Performance Monitoring & Condition Assessment 15

16 Maintenance Management Triangle Preventive Maintenance Safe & Reliable Cable Car Services Corrective Maintenance Condition Based Maintenance 16

17 High Reliability Cable Car Reliability of 2014 achieved 99.83% On average, less than one minute s stoppage for every eight-hour operation 17

18 Marketing & Sales Our Positioning Vision To be the World Class and mustexperience tourist attraction in Hong Kong Brand Positioning The Authentic 360 Culture & Nature Experience Supporting attributes & products An experience that takes you away from the hustle and bustle of this cosmopolitan city 360 Holidays Guided Tour Guided tour To different parts of Lantau Attractions & Sky- Land-Sea Pass Leverages on Lantau s nature & cultural treasures Entertainment Hub Turn NP360 into the visitor info hub for Lantau Island Offers visitors booking service and trip planning advice

19 Products & Promotions - Innovation 19

20 Segmentation Strategy Local Overseas FIT Business Experience Enhancement Reason-to-come events Product bundling MICE & Education markets Digital Marketing Pre-arrival Search Engine Marketing Redemption voucher & bundled product Extend online distribution Post-arrival Expand hotel distribution MICE organizers Tourist publications Travel Agency Business Niche products (e.g. eco tour, hiking, star gazing, Kung Fu camps, ) Local travel agents briefing & engagement Expand the cooperation with HKTB overseas offices Participate in travel exhibitions and consumer fairs 360 Holidays cum MTR Day Pass or other tourist destination product bundling Bulk purchase vouchers Overseas Travel Trade briefing for key markets agents 20

21 Corporate, Education & MICE Markets Education : Visit Sewage Treatment Plant and AFCD Centre in NPV Corporate Team Building Event : Circle K Drumming Event 2013 Education : Mangrove Field Trip in Tai O Workshop : Knitting Fish Net in Tai O Private Charter: TerraLex AGM 2009 Private Charter: Heineken Star Final 2011 Private Charter: Rugby World Cup

22 Vietnam Overseas Promotions India Middle East Taiwan Singapore 22 22

23 Malaysia Overseas Promotions China Thailand South Korea Asia Pac. (others) 23 23

24 A new business model 360 Holidays 360 Holidays Ltd, wholly owned by NP360, is a licenced tour operator that operates guided tours on Lantau Strengthens the NP360 Sky-Land-Sea brand positioning Strategic alliance with different Lantau Attractions 24

25 360 Holidays Operates 6 daily tours & partners with 11 accommodation units on Lantau 360 Sky-Land-Sea Day Pass Afternoon Tea Special Tour Sunset Tour Cultural & Heritage Guided Tour Holiday Flat Package 25

26 Customer Services 26

27 Service Strategy During Incident Reconciling CARing from Heart Connecting Incident Management Plan Atoning Connecting Atoning Reconciling Keep the affected guests feel connected with us Compensate the affected guests physically and psychologically Make effort to maintain the relationship of the affected guests with us 27

28 Incident Handling Guest Care Point & Assembly Point Summer Pack, Winter Pack & Assistant Pack New PA System for cabins 28

29 Change of Service Strategy Service Inside-Out Approach Service Outside-In Approach Inputs Processes Outputs Guest Centric Approach Establish Guest Centric Culture Provide differentiated services Strive for continuous improvement 29

30 Excellent Service 30

31 Service Mission Guest Memory Guest Services Guest Experience 31

32 Ratio Service Performance Ratio per 100,000 guests Per 100,000 guests Complaint Compliment Complaint Compliment 32

33 Corporate Communications Stakeholders Engagement Issue Management Corporate Brand Building 33

34 Key Stakeholders & Engagement Local & Overseas Guests TC EMSD Travel Trade Agents & Partners NP360 & Staff Team HKTB TIC & Tourist Attractions Media & Opinion Leaders Lantau Partners & Tenants 34

35 Increased Transparency in Issue Management Case Study: Involuntary stoppage of service on 27 Nov 2013 Cable car stopped for 18 minutes 200 guests on line approximately 300 guests waiting at the Ngong Ping Terminal 35

36 Increased Transparency in Issue Management Proactively orgainzed media interviews or press conferences to explain the issue Enhanced incident management practices e.g. live broadcasts in cabins Provide a 24-hour media hotline for prompt response to media enquiries 36

37 Increased Transparency in Issue Management Tactic Prompt media response Tactic Enhance communication with guests i-cable 27 Nov 2013 Apple Daily Action News on 27 Nov

38 Results 21 pieces of neutral news coverage 0 media follow-up action on 28/11. Incident died down Guests expressed appreciation 38

39 Media Relations Annual Media Luncheon journalists from 49 local & regional media outlets 60 positive news coverage Sing Pao 03 Feb

40 Corporate Brand Building Interview with MD: Corporate branding The Hong Kong Industrialist 23 Jan 2015 Oriental Daily 11 Jan

41 Corporate Brand Building Interview with Management Team The Standard 5 March 2015 Recruit 27 June

42 Corporate Brand Building Interview with Front-line Staff Hong Kong Commercial Daily 12 March 2015 Jiu Jik 27 December

43 Our Interim Achievements 43 43

44 Visitation On average, Million visitors per annum 44

External Accolades Chartered Institute of Logistics & Transport Award (2014)

Industries: Customer Service Award The Hong Kong Q-Mark Service Scheme 2014

Marketing Silver Award 45th Distinguished Salesperson Award (DSA) Programme

Excellence (IAAPA) Best Soft Good Souvenir HKACE Customer Service Excellence

Individual Award Contact Centre Service Member of Hong Kong Green Purchasing

45 External Accolades Chartered Institute of Logistics & Transport Award (2014) Enterprise Award 2014 Hong Kong Awards for Industries Hong Kong Awards for Industries: Customer Service Award The Hong Kong Q-Mark Service Scheme 2014 Q-Mark Certificate Marketing Excellence Award 2014 Excellence in Search Marketing Silver Award 45th Distinguished Salesperson Award (DSA) Programme 2013 The Outstanding Young Salesperson Award (OYSA) 2013 Brass Ring Retail Excellence (IAAPA) Best Soft Good Souvenir HKACE Customer Service Excellence Award 2013 Bronze Award : Team Award Contact Centre Service Silver Award : Individual Award Contact Centre Service Member of Hong Kong Green Purchasing Charter & 2013 HK Awards for Industries Environmental Performance "Class of Excellence" Wastewi$e Label 45

46 External Accolades 10 of the world s Most Amazing cable car experiences CNN.com February 2015 Daily Telegraph UK June

47 Thank You

Ngong Ping 360 welcomed over 1.62 million visitors in 2015 A series of promotions to be launched to reward guests in 2016

CA07/2016 Ngong Ping 360 welcomed over 1.62 million visitors in 2015 A series of promotions to be launched to reward guests in 2016 (Hong Kong, 1 March 2016) Being recognised as one of 10 of the world