Overseas Travel Agent Programme - Hong Kong Sevens

Cathay Pacific/HSBC Hong Kong Sevens Overseas Travel Agent Programme Request for Proposal - June 2016

INTRODUCTION The Hong Kong Sevens has over the last 41 years built a reputation as a global marque event that represents the pinnacle of where the worlds of sport and entertainment converge.

Each year Asia’s World City welcomes the world to join this unique event that combines great sporting action, live music, a carnival atmosphere and unrivalled client hosting and business networking opportunities.

The Hong Kong Rugby Union (HKRU) commenced an Overseas Travel Agent (OTA) programme in 1997 to service the growing demand of international fans wishing to attend the Hong Kong Sevens; over the years this has become an important channel to facilitate overseas visitors in support of the Hong Kong tourism industry, enhance the international atmosphere of our event, and provide a significant revenue stream.

REQUEST FOR PROPOSAL The purpose of this Request For Proposal (RFP) is to receive proposals from travel agencies or service providers who believe that they can meet the OTA programme objectives set out in this RFP. The Hong Kong Rugby Union will offer two options in this RFP:

1. Worldwide OTA partner

One exclusive partner to service the global market.

2. Regional OTA partners

Up to four partners broken up into four regions to service the global market.

The Hong Kong Rugby Union intends to award a 3 year contract to the successful vendors.

This contract will include the 2017, 2018 and 2019 Cathay Pacific/HSBC Hong Kong Sevens.

All interested travel agencies or service providers that can meet the HKRU objectives are encouraged to send in a proposal.

OTA PROGRAMME OBJECTIVES The Hong Kong Rugby Union will require the Respondents to meet the following objectives:

Commercial

The HKRU is a non-profit organisation and we rely on the revenue generated from the Sevens for nearly all our funding throughout the year, to facilitate our national and community programmes and objectives. The Hong Kong rugby community has grown strongly over the past decade, and we strive to maximize our revenue to keep pace with the growing demands we face.

We have therefore sought to find a commercial model that both meets our financial goals and offers an attractive opportunity for our OTA partners; a key part of this is the introduction of a minimum guaranteed purchase of the ticket packages as listed in the ticket packages (page 9).

We believe this is an ambitious but achievable goal, and the packages represent an excellent fan experience and good value.

Commercial Requirements

Potential OTA partners will be required to commit to the minimum ticket packages (page 9) in their proposal, and are encouraged to include any other creative approaches that will generate additional revenue for both parties.

Hong Kong Sevens Brand Exposure The HKRU are looking to grow the international footprint of the Hong Kong Sevens brand into new territories and maximize the exposure in current markets.

Marketing Plan

OTA partners will be required to demonstrate their marketing reach by providing a global or regional marketing plan. Marketing Plan to include: Print Ads, Digital Ads, Social Media reach, EDM database

Service to International Fans

The Hong Kong Sevens is a truly international event with over 40% of the attendees from overseas. It is important for the profile of our event that overseas visitors continue to be able to access the Sevens, to be offered the opportunity to engage in different Sevens Week activities where possible, and in general are provided with a world-class travel experience.

Company Profile

Our OTA partners will be expected to demonstrate a proven track record of delivering exceptional service and a strong positive brand reputation.

HONG KONG SEVENS DATES Hong Kong Sevens Tournament in 2017 will be held on 7-9th April. Exact date & time of the tournaments for 2018 and 2019 will be announced in due course by World Rugby.

Hong Kong Sevens is part of the World Sevens Series, which is governed and controlled by World Rugby. Therefore World Rugby reserves all rights to change dates or any other details relating to the tournaments at their discretion.

Hong Kong Rugby Union will in best endeavors try to communicate to all OTA partners at the same time with sufficient lead time.

Cathay Pacfic/HSBC Hong Kong Sevens 7-9 April 2017

OTA PROGRAMME TERRITORIES The Hong Kong Rugby Union will offer the opportunity to OTA partners to send a proposal to be an exclusive worldwide partner and/or a regional OTA Partner. Interested and qualified proposers are welcome to submit multiple applications. The scope of each region is listed below:

1. Worldwide OTA Partner

Global (excluding Hong Kong)

2. Regional OTA Partners Europe & Middle East

Including Rugby Markets: United Kingdom, Ireland,

France, Spain, Portugal, Italy, Belgium, Netherlands, Germany, Switzerland, Russia, Georgia, United Arab Emirates

Australasia & Asia

Including Rugby Markets: Australia, New Zealand, Fiji,

Samoa, Tonga, Papua New Guinea, Singapore, Japan, South Korea, China (excluding Hong Kong)

Africa

Including Rugby Markets: South Africa, Namibia, Zimbabwe, Kenya

North America & South America

Including Rugby Markets: Canada, USA, Mexico, Cayman Islands, Brazil, Argentina, Uruguay

OTA PROGRAMME TICKET PACKAGES OTA Programme Ticket Packages

Each region will be allocated a number of ticket packages that must be guaranteed by the OTA partner (Worldwide partner must commit to the total number).

Sportsman’s Bar

OTA Partner price: HKD $19,950 HKRU Price: HKD $24,950

Premium Sevens

OTA Partner price: HKD $14,950 HKRU Price: HKD $17,950

Essential Sevens - 3 Day Ticket only

OTA Partner price: HKD $3600 The HKRU are currently reviewing the ticket price *Must be sold with an air or travel component and accomodation.

WORLDWIDE OTA PARTNER TERRITORY Worldwide

Sportsman’s Bar 130

Premium Sevens 252

Essential Sevens TOTAL (No. of Tickets) 2218 2600

REGIONAL OTA PARTNERS TERRITORY Sportsman’s Bar Premium Sevens Europe & Middle East 50 96 Australasia & Asia 50 96 Africa 20 40 North America & South America 10 20

Essential Sevens 854 854 340 170

TOTAL (No. of Tickets) 1000 1000 400 200

SPORTSMAN’S BAR Experience Hong Kong Sevens in style with the Sportsman’s Bar. The 3 day package, hosted by Rugby Legends, includes access to the premium dual-floor shared corporate hospitality area, which features complimentary food and beverages.

Sportsman’s Bar offers the best indoor seats in the house, with the exceptional sightlines, impeccable surroundings of the pitch and first class amenities, no other environment provides a more impressive venue for experiencing the Hong Kong Sevens.

Sportsman’s Bar Package

OTA Partner Price HKD$19,950

- 3 day sevens ticket - Shared corporate hospitality space - Food & Beverage - Rugby legend hosts - Official programme

Add on:

- VIP concert ticket (F&B included HKD$899)

PREMIUM SEVENS

BLOCK 123

This year, we are excited to announce the Premium Sevens Package.

As part of the Premium Sevens OTA partner offerings, both Europe/ Middle East and Australasia/Asia will be offered an exclusive reserved 96 seat corporate box on the Main Level of the Hong Kong Stadium.

(Block 123 + 111)

EUROPE/MIDDLE EAST AND AUSTRALASIA/ASIA

The regions of Africa and North/ South America will be offered shared reserved seating in the North Stand. (Block 134)

BLOCK 111 BLOCK 134

AFRICA AND NORTH/SOUTH AMERICA

Enjoy VIP tickets at the HKSevens Kick-off Concert where fans can enjoy a one of a kind music experience.

Our exclusive Friday Brunch/Lunch offers the chance to mix and mingle with the Hong Kong Sevens ambassadors while enjoying an unlimited open bar.

The Premium Sevens includes hospitality access to the Sevens Village. Located directly across from the Hong Kong Stadium, guests will savour 5-star catering with rolling buffets, open bar and champagne lounge throughout the three days. Fans won’t miss the exciting action as every second of the rugby game is broadcast on the giant Big Screen.

Once the final whistle is blown the high energy after party at the Sevens Village comes alive. Dance to hip music and sip exquisite Champagne. This high energy party makes the Hong Kong Sevens experience one to remember!

Premium Sevens Experience Package OTA Partner Price HKD$14,950

- Reserved Seat in the stadium - 3 Day F&B Hospitality over in the Sevens Village - HKSEVENS Kick Off Concert VIP Ticket (F&B Included)

- HKSEVENS Lunch in the Sevens Village - Exclusive Stadium Tour - Merchandise Voucher

SUMMARY WORLDWIDE OTA PARTNER 3 Day Match Ticket 3 day pass to the Sportsman’s Bar

(The largest hospitality space inside the Stadium)

Open Bar with waiter service to your seats (within the Sportsman’s Bar)

3 Day F&B Hospitality inside the Stadium (within Sportsman’s Bar)

Air conditioned seating area Opportunity to mingle with HKSevens Ambassadors Official Programme Exclusive Stadium Tour Reserved Seating in the Stadium 3 Day F&B Hospitality over in the Sevens Village HKSEVENS Kick Off Concert VIP Ticket (F&B included)

Merchandise Voucher HKSEVENS Brunch/Lunch in the Sevens Village (Friday)

Sportsman’s Bar

Premium Sevens

Essential Sevens

LICENCE HKRU will grant to the OTA Partner an exclusive licence to sell Hong Kong Sevens Travel PAckages Worldwide or in a designated region.

The Sportsmans Bar and the Premium Sevens Ticket Package can be sold exclusively without an air or sea travel component and accommodation by the OTA Partner only.

Additionally, The OTA partner has the right to sell the Sportsmans Bar and the Premium Sevens Ticket Package with an air or sea travel component and accommodation package.

The Essential Sevens Travel Package must always consist of a Match Ticket to the Event with accommodation and an air or sea travel component booked or arranged for the purchaser by the Licensee. (The air travel component of a Travel Package may consist of an airline ticket obtained through the redemption of frequent flyer points provided that the OTA provides documents to substantiate the redemption as part of the Travel Package)

OTA Licence Fee The OTA will pay a Licence fee for each Ticket Package. • The OTA will pay 50% of the total payment for the Ticket Packages by 31 October in each Event Year. • The OTA will pay the remaining 50% for the Ticket Package by 31 January in each Event Year.

Please note we can be flexible on the timing of payment but all payment must be secured by 31 January in each Event Year.

OTA Warranties for Designated Regions • It may sell all Ticket Packages, including Sportsman’s Bar, Premium Sevens Package and Essential Sevens Package to other travel agents in the designated region. These Ticket Packages however must be sold with an air or sea travel component and accommodation. They cannot be sold individually as a standalone package. For avoidance of doubt if any Ticket Package is sold prior written consent will need to be granted each time by the HKRU. • It may not sell Sportsmans Bar and the Premium Sevens Ticket Package separately without a travel component or accommodation to

any other travel agent in the designated region. The standalone package (without flights and accommodation) for the Sportsman’s Bar and Premiums Sevens Package is exclusive to the OTA partner only.

• It may endeavour to sell the Essential Sevens Ticket Packages (but not Match Tickets) on Viagogo prior to HKRU approval at all times.

• The OTA must procure that such other travel agents if selling Ticket PAckages do not, claim any association with the Event or use any Event Branding. The OTA will procure that any such travel agents clearly identify on their website or any other materials whose Official Travel Packages they are selling and that they are a subagent of the OTA. • It will maintain accurate books of accounts and within 30 days of the completion of the Event, provide to the HKRU a detailed report summarising (i) the number of Ticket Packages sold by the OTA (ii) the hotels used (iii) the airline used (iv) the ports of departure and arrival of flights and other details as are available and which may be reasonabley requested by the HKRU.

OTA Warranties for Worldwide exclusivity • It may sell all Ticket Packages, including Sportsman’s Bar, Premium Sevens Package and Essential Sevens Package to other travel agents worldwide. These Ticket Packages however must be sold with an air or sea travel component and accommodation. They cannot be sold individually as a standalone package. For avoidance of doubt if any Ticket Package is sold prior written consent will need to be granted each time by the HKRU. • It may not sell Sportsmans Bar and the Premium Sevens Ticket Packages separately without a travel component or accommodation to any other travel agent worldwide. The standalone package (without flights and accommodation) for the Sportsman’s Bar and Premiums Sevens Package is exclusive to the OTA partner only.

• It may endeavour to sell the Essential Sevens Ticket Packages (but not Match Tickets) on Viagogo prior to HKRU approval at all times.

• The OTA must procure that such other travel agents if selling Ticket PAckages do not, claim any association with the Event or use any Event Branding. The OTA will procure that any such travel agents clearly identify on their website or any other materials whose Official Travel Packages they are selling and that they are a subagent of the OTA. • It will maintain accurate book of accounts and within 30 days of the completion of the Event, provide to the HKRU a detailed report

summarising (i) the number of Ticket Packages sold by the OTA (ii) the hotels used (iii) the airline used (iv) the ports of departure and arrival of flights and other details as are available and which may be reasonabley requested by the HKRU.

RFP PROCEDURE 1. TERMS FOR RECEIVING THE RFP

1.1 - Confidentiality

All information contained in this document is confidential, and it is expected that the Respondent will not disclose all or any part of the document to any person or company outside their organisation. By taking receipt of this document, your organisation agrees to be bound by this requirement of confidentiality.

The Respondent must warrant that its proposed personnel, employees or agents shall not disclose or make public any information or material acquired or produced in connection with or by the performance of the services sought via the Request for Proposal (RFP) without prior approval in writing by the Hong Kong Rugby Union In no event shall this document, or any subsequent document that may be made available in connection with the RFP, be copied, transcribed, or distributed in whole or in part without the specific authorisation of the Hong Kong Rugby Union.

The Hong Kong Rugby Union reserves the right to require the return or destruction of all documents supplied or produced during the proposal process, including extracts, summaries and related notes.

If the Respondent deems that there is a need to disclose all or part of this document to a third party for the purposes of completing the response to this (RFP), the Respondent must obtain prior written permission from the Hong Kong Rugby Union Unauthorised disclosure of the RFP or its contents or failure to observe other specific requirements contained herein may result in disqualification from further consideration in addition to any other remedies the Hong Kong Rugby Union may have under law.

The Hong Kong Rugby Union will maintain strict confidentiality in receipt of and possession of proposal responses including clarifications and other submissions during the RFP process. All material submitted in response to this RFP shall become the property of Hong Kong Rugby Union and may only be returned at Hong Kong Rugby Union discretion.

Hong Kong Rugby Union has the right to use any or all of the information presented in any reply to the RFP. Selection or rejection of any proposal does not affect this right.

1.2 - Disclaimer

The Hong Kong Rugby Union has produced this RFP in good faith. However, the Hong Kong Rugby Union, its agents and its servants do not warrant its accuracy or completeness.

This RFP is a request for proposals only and not an offer document; answers to it must not be construed as acceptance of an offer or imply the existence of a Contract between the parties.

By submission of its Proposal, the Respondent shall be deemed to have satisfied itself as to all conditions and circumstances affecting the proposal and to have fully acquainted itself with and to have accepted the Hong Kong Rugby Union Terms & Conditions of RFP. The Hong Kong Rugby Union makes no representation, warranty, assurance, guarantee or endorsements to the Respondent concerning the RFP, whether with regard to its accuracy, completeness or otherwise and the Hong Kong Rugby Union shall have no liability towards the Respondent or any other party in connection therewith.

1.3 - RFP Terms and Conditions

The Hong Kong Rugby Union is seeking a Respondent who is willing to comply with the content of this RFP. While it is expected that some of the content will be subject to discussion, it is not the intention of The Hong Kong Rugby Union to enter into a contract with a Respondent that takes significant exception to the given content.

The RFP is neither a purchase order nor an offer to contract, but represents a definition of specific requirements and invitation to qualified Respondents to submit a response addressing such requirements.

Issuance of the RFP, your preparation and submission of a response, and subsequent receipt and evaluation of your response by the Hong Kong Rugby Union does not commit the Hong Kong Rugby Union to award a contract to you or any other Respondent, even if all requirements stated in the RFP are met.

Proposals received in the proper time frame and composition from Respondents, who, in the Hong Kong Rugby Union sole discretion, are competent and have the necessary facilities, experience, organisation, and financial capacity to fulfil the requirements stated in the RFP, will be considered.

Proposals submitted may be reviewed and evaluated by any person, except for competitors, at the discretion of the Hong Kong Rugby Union, regardless of statements contained within or the Respondent’s request for confidentiality Neither receipt of proposal nor failure to reject proposal shall constitute any legal obligation on the Hong Kong Rugby Union. No reason will be given for the acceptance or rejection of all or part of any Proposal

1.4 - Cost of Proposal

Respondents are expected to fully acquaint themselves with the conditions, requirements and specifications before submitting Proposals. Each Respondent assumes all risks for resource commitment and expenses, direct and indirect, of proposal preparation and participation throughout the RFP process. The Hong Kong Rugby Union is not responsible directly or indirectly for any costs incurred by Respondents.

1.5 - Changes to the RFP

The Hong Kong Rugby Union reserves the right to modify these and other RFP requirements. Any changes or modifications to this RFP shall be made by a written addendum issued by the Hong Kong Rugby Union. Respondents will be informed of any changes or modifications. The Hong Kong Rugby Union at its sole discretion, reserves the right, to • Request additional information from all or any Respondent.

• Reject or accept any RFP without disclosing the reason therefore.

• Enter into further negotiations with all or any Respondent.

• Extend the RFP process, including calling for new RFP’s.

1.6

Contact with the Hong Kong Rugby Union

Procedural or other enquiries concerning the RFP process at any time should be addressed only through the contact details provided below: Sam Pinder Head of Hong Kong Sevens Phone: +852 6697 9794 Email: sam.pinder@hkrugby.com

Alex Staff Head of Legal and Corporate Sales Phone: +852 2504 8307 Email: alexandra.staff@hkrugby.com

Any form of canvassing by the Respondent, of any member of the Hong Kong Rugby Union staff or supplier, for purposes of influencing the award of the contract, will automatically disqualify the Respondent from the evaluation process.

Respondents shall not offer or give any consideration of any kind to any employee or representative of the Hong Kong Rugby Union as an inducement or reward for doing, or refraining from doing, any act in relation to the obtaining or execution of this or any other contract with the Hong Kong Rugby Union

2. EVALUATION OF THE PROPOSAL Throughout this RFP process, the Hong Kong Rugby Union is committed to utilising a highly analytical approach to evaluating the vendor options.

The Hong Kong Rugby Union intends to base its decision on the commercial value of each Respondent’s RFP; the proposed Hong Kong Sevens OTA marketing plan; and the ability and proven track record of the Respondent providing a world class travel experience.

Proposals submitted may be reviewed and evaluated by the Hong Kong Rugby Union . Any and all Respondents may be asked to further explain or clarify areas of their Proposals during the evaluation process.

The Hong Kong Rugby Union reserves the right to award the business on a regional or global basis as determined through the evaluation and subsequent negotiations.

No reason will be given for the acceptance or rejection of all or part of any Proposal.

In addition, the Hong Kong Rugby Union reserves the right to: • Verify any information contained in a proposal; • Not to appoint any Respondent; • Vary, alter, and/ or amend the terms of this RFP, at any time prior to the finalisation of its adjudication hereof, with the written consent of all respondents; • Cancel or withdraw this RFP at any time, without attracting any liability; • Appoint one or more Respondents, separately or jointly (whether or not they submitted a joint proposal).

The Hong Kong Rugby Union’s decision on proposals received shall be final and binding.

2.1

Contractual Relationships

The Respondent or respondents selected by the Hong Kong Rugby Union will be required to enter into a written contract with the Hong Kong Rugby Union in a form approved by the Hong Kong Rugby Union’s legal advisors.

The Hong Kong Rugby Union intends to award a 3 year contract to the successful vendors. This contract will include the 2017, 2018 and 2019 Cathay Pacific/HSBC Hong Kong Sevens.

3. RFP DESCRIPTION OF REQUIREMENTS This section details the Hong Kong Rugby Union’s requested requirements to be included in this RFP. Your proposal must cover all sections outlined below;

SECTION 1 – EXPERTISE OF ORGANISATION

1.1 Authorised representative information

Provide contact details of the authorized representative that will be representing the Respondent’s company in this RFP procedure (name, postal address, telephone number, email address)

1.2 Brief Description of the Respondent as an entity:

Provide a brief description of the organization / firm submitting the proposal, its legal mandates/authorized business activities, the year and country of incorporation, types of activities undertaken, number of sales outlets and locations, and approximate annual budget, etc.

1.3 Track Record and Experience

Provide information regarding travel service experience within the last five (5) years which are related or relevant to this RFP.

1.4 Management Structure

Describe the overall management approach toward planning and implementing the OTA service. Include an organization chart for the management of the project describing the relationship of key positions and designations

1.5 Problem and issue management

Describe your process for problem and issue management including details on: • Problem logging; problem resolution; the tracking of unresolved problems; the escalation procedures; and general problem reporting practices.

SECTION 2 – DETAILS OF PROPOSAL

2.1 Worldwide or Regional

Provide a clear indication as to the territory or worldwide partnership the proposal will focus on. For example: Regional Territory – Europe and Middle East.

Note: There are no restrictions as to the number of territories a Respondent may submit a proposal for. Respondents may submit a joint- proposal to focus on multiple territories or a worldwide partnership.

2.2 Sublicensing

Explain whether any ticket packages would be sub-licensed, to whom, how much percentage of the ticket packages, the rationale for such, and the roles of the proposed sub-licensees.

SECTION 3 – COMMERCIAL

3.1 Minimum Ticket Packages

Provide confirmation that the Respondent understands that the minimum ticket package numbers can be met and accepted.

3.2 Sales Forecast

Indicate the expected number of sales for each package.

3.3 Additional Revenue

Provide details of any creative approaches the will generate additional revenue for both parties.

SECTION 4 – MARKETING

4.1 Marketing Reach

Demonstrate the marketing reach of the Respondent’s company and details of any previous marketing campaigns that have relevance to this RFP.

4.2 Marketing Plan

Provide an overview of a marketing plan for the Hong Kong Sevens Ticket Packages within the selected territory.

SECTION 5 – SERVICE TO INTERNATIONAL FANS

5.1 Product Plan

Provide details of the travel packages that would be offered for the Hong Kong Sevens. Indicate estimated price range of travel packages.

5.2 Operational Plan

Provide details of the operational plan for servicing the traveling parties whilst in Hong Kong.

5.3 Additional Services

Provide details of any additional services provided to international fans travelling to the Hong Kong Sevens.

SECTION 6 – POINT OF DIFFERENCE

6.1 Extra Benefits

List any additional benefits that would be provided to the Hong Kong Rugby Union as part of the OTA partnership.

4. GUIDELINES & INSTUCTIONS FOR SUBMITTING PROPOSAL RESPONSES

Timeline and Deadline for Submission

The Hong Kong Rugby Union has issued the RFP to interested parties on the 27th May 2016.

Each Respondent will have two (2) calendar weeks to complete their RFP. The deadline for submission of the RFP is Friday 10th June, 2016 (23:59 GMT+8 – Hong Kong Time)

All proposals must be sent via email to the following addresses:

Sam Pinder – sam.pinder@hkrugby.com

Alex Staff – alexandra.staff@hkrugby.com

Confirmation of the proposal being received will be returned via email. We will attempt to reply within 12 hours, however, if you have not received confirmation please follow up accordingly.

Selection Process

The selection panel will review and evaluate the proposals the week of June 13th-June 17th.

The completed RFP may provide the basis for further negotiations at Hong Kong Rugby Union election. Hong Kong Rugby Union may at its sole discretion, select how many travel agencies are requested to participate in this process.

Timing of the Requested Summary

The following table summarises all of the deadlines, submissions and responses necessary to fulfill the requirements of this RFP

Description of Requirement

Deadline Date

RFP Issued

27th May 2016

Submit Completed RFP

10th June 2016

Evaluation of Proposals

13th June - 17th June 2016