Tuesday, October 21, 2008

Best Western gets aloha spirit


Even with the global economy facing historic challenges and consumer confidence taking a wipeout, “Best Western will continue to grow and prosper,” Dave Francis, chairman of the board for Best Western International, assured the 2,500 attendees at the 2008 convention at the Hawaii Convention Center in Honolulu. “Why? Because we are the owners of this company.”

With that comes responsibility for the guest impressions of over 400,000 guests every night, Francis said. He encouraged members to participate in the company’s direction by voting and attending regional meetings.

The soothing Hawaiian trade winds helped take some of the edge off, but talk during breaks kept returning to holding rates steady, especially with neighboring hotels higher on the chain scale dropping theirs.

“Learn from the past,” said David Kong, president and CEO (pictured with convention attendees during a break). “The worst thing to do is panic and cut rates.”

In the past 30 years, occupancy declined 16 times, ADR declined twice and RevPAR declined only three times, Kong said, and discounting rates indiscriminately likely will cause a RevPAR drop. “Yield management is more important than ever.”

While many hotel companies are focusing on product, BWI will focus on customer service, Kong said. The national advertising campaign features the members as what makes the hotels special.

Dorothy Dowling, senior VP of marketing and sales, told attendees to not just ride the waves of change but to rock them. She said steps to face the economic headwinds will include new approaches for more leisure and corporate wins, which includes the launch of Best Western Business Plus, and loyalty program improvement, including a new name: Best Western Rewards (formerly Gold Crown Club International). The company also is spending a whopping $43 million on advertising, a move Kong called contrarian.

Ron Pohl, VP of brand quality and member services, talked about short-term initiatives that will move BW to its long-term goal of becoming the preferred brand in its tier. Improving the breakfast presentation, more training for guest satisfaction and green initiatives are on the list.

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