Emerging Markets - BC Hotel Association
Transcription
Emerging Markets - BC Hotel Association
InnFocus BC Hotel Association Emerging Markets Attracting Travellers to your Community & Hotel OVERCOMING LABOUR SHORTAGES Attracting workers fROm new labour pools PM40026059 ENHANCING YOUR ROI WITH OTAs Negotiating the Best Deal for your Property PLUS: SHARPEN YOUR PENCILS > AMERICAN TRAVEL INTENTIONS > INSIGHTS ON SOCIAL MEDIA IN BC Spring 2014 200-948 Howe Street, Vancouver, BC V6Z 1N9 T 604-681-7164 1-800-663-3153 F 604-681-7649 1-866-220-2032 www.bchotelassociation.com @bchotelassoc Vancouver, Coast & Mountains Ross Dyck, Sylvia Hotel, Vancouver Ian Lowe, Crystal Lodge & Suites, Whistler John Kearns, Sheraton Vancouver Guildford Hotel, Surrey David MacKenzie, Pemberton Valley Lodge, Pemberton Joann Pfeifer, Vancouver Marriott Pinnacle Downtown, Vancouver John Sandor, Sutton Place Hotel Vancouver, Vancouver Leonard Wiens, Royal Hotel, Chilliwack Directors at Large Taj Kassam, Sandman Hotel Group, Vancouver Sarah Kirby Yung, Coast Hotels, Vancouver Craig Norris-Jones, Pan Pacific, Vancouver Past Chair David Wetsch, Ramada Downtown Vancouver Kootenay Rockies Brady Beruschi, Regent Hotel, Revelstoke Don Lutzak, Elkford Motor Inn, Elkford Danny Rickaby, New Grand Hotel, Nelson Amanda Robinson, Copper Point Resort, Invermere Cariboo Chilcotin Coast Pat Corbett, The Hills Health and Guest Ranch, 100 Mile House Vancouver Island Rick Browning, Best Western The Westerly Hotel, Courtenay Jonathan Cross, Hospitality Inn Hotel, Port Alberni Reid James, Hotel Grand Pacific, Victoria Kurt Pyrch, Best Western Cowichan Valley, Duncan Kevin Walker, Oak Bay Beach Hotel, Victoria Earl Wilde, Victoria Regent Waterfront Hotel & Suites, Victoria Director at Large Ian Powell, Inn at Laurel Point, Victoria Featured Hotelier Elfriede Schmoll at the BEST WESTERN PLUS Wine Country Hotel & Suites, page 16 Thompson Okanagan Don Brogan, Walnut Beach Hotel, Osoyoos John Douglas, Nancy Greene’s Cahilty Lodge, Sun Peaks Ingrid Jarrett, Watermark Beach Hotel, Osoyoos Gavin Parry, Coast Capri Hotel, Kelowna Tim Rodgers, Best Western Plus Kamloops Hotel, Kamloops Director at Large Heather Bodnarchuk, Prestige Harbourfront Resort & Convention Centre, Salmon Arm Northern BC Colin Bateman, Aspen Inn and Suites, Smithers Sam Mangalji, Inn on the Creek, Dawson Creek Al McCreary, Hudson Bay Lodge, Smithers Rebecca Monsen, Treasure Cove Hotel, Prince George Director at Large Steve Smith, Crest Hotel, Prince Rupert Spring 2014 Executive Committee President, Ingrid Jarrett, Watermark Beach Hotel, Osoyoos Past President, David Wetsch, Ramada Downtown Vancouver Treasurer, Allan McCreary, Hudson Bay Lodge, Smithers Vice President, Jonathan Cross, Hospitality Inn Hotel, Port Alberni Vice President, John Kearns, Sheraton Vancouver Guildford Hotel, Surrey Vice President, David MacKenzie, Pemberton Valley Lodge, Pemberton Vice President, Joann Pfeifer, Vancouver Marriott Pinnacle Downtown, Vancouver Vice President, Kevin Walker, Oak Bay Beach Hotel, Victoria Vice President, Earl Wilde, Victoria Regent Waterfront Hotel & Suites, Victoria Features Columns Opening Doors to Emerging Markets 4 President’s Message 11 Destination BC Update 5 CEO’s Report BCHA Staff 12 Strategies to Overcome Labour Shortages 10 Green Initiatives James Chase, Chief Executive Officer, Vancouver 604-443-4750 Colleen Lamothe, Manager, Comm. and Gov’t Relations , Vancouver 604-443-4751 Louise Thompson, Member Services Coordinator, Vancouver 604-443-4756 16 BEST WESTERN PLUS 10 Marketing Website: www.bchotelassociation.com PUBLICATIONS MAIL AGREEMENT NO. 40026059 RETURN UNDELIVERABLE CANADIAN ADDRESSES TO CIRCULATION DEPT EMC PUBLICATIONS 19073 63 AVENUE SURREY BC V3S 8G7 email: [email protected] InnFocus is published quarterly by EMC Publications - a division of EMC Executive Marketing Consultants Inc. 19073 63 Avenue, Surrey, BC, V3S 8G7 t 604-574-4577 1-800-667-0955 f 604-574-2196 [email protected] www.emcmarketing.com Publisher: Joyce Hayne Design & Layout: Krysta Furioso Copy Editor: Debbie Minke 6 Wine Country Hotel & Suites 23 Names in the News 18 Enhance Your ROI with OTA Best Practices 29 BCHA Member Benefits 24 Sharpen Your Pencils! 30 BC Hospitality Foundation 27 American Travel Intentions and Trends 30 What’s New? 28 Insights on Social Media in BC President’s Message We have seen a busy start to 2014, and there is no sign of things slowing down any time soon. As President of the BCHA, the first order of business in the new year was to gather our newly appointed Executive Committee for an in-person meeting to discuss our plans and priorities for 2014. In early January, we met for a planning session in Victoria and came up with four major areas of focus for 2014. Please share your thoughts on any of the issues below by connecting with me directly at [email protected]. by Ingrid Jarrett market. When compared to the $58 million the Canadian government has allocated to the Canadian Tourism Commission, it is clear that more pressure has been placed on provincial and regional governments to market tourism. In order for BC to succeed in spite of these evolving factors, it is important that marketing initiatives in the province are streamlined. We all understand that funds are limited, and accordingly, in 2014 we will be working to align marketing efforts and work collaboratively and strategically to market BC as a top tourist and business travel destination. Tourism Marketing Coming together is a beginning; keeping together is progress; working together is success. Mark your calendar and let’s CONNECT on November 3-4, 2014 BC’s $13.8 billion dollar tourism industry is now the single largest primary resource industry in the province, generating an annual real GDP of more than $6.4 billion in 2010 - ahead of forestry, mining, oil and gas extraction, and agriculture. The global market for tourism is growing at an astonishing rate; worldwide we saw international tourist arrivals grow by 4% with over a billion people travelling internationally, and revenues surpassing a trillion dollars. In October 2013, it was my pleasure to attend the inaugural CONNECT Food + Drink + Lodging trade show. The event was a great success, bringing together industry leaders and buyers from across Canada. Not only was it an enjoyable trade show, it was also very lucrative for many of us hoteliers as far as buying capital items, upgrading our properties, and learning about new innovative technologies in the marketplace. In BC, 2013 saw international tourist arrivals grow by almost 5% with over 4 million visits to our province. However, while we saw travel and tourism grow in 2013, some key trends are raising growing concern. BC is losing more and more marketshare and is experiencing increased difficulty competing on the international stage. Countries like the US have allocated up to 10% of their $200 million tourism budget to target the Canadian ? 4 InnFocus We had so much momentum to build on from the 2013 show that this year we extended the event by an extra day! I am excited to announce the 2014 CONNECT Food + Drink + Lodging event has been scheduled for November 3-4, 2014. We’re looking forward to showcasing great new products, attending informative educational seminars, and meeting all of you at one of the networking events. Attending the CONNECT trade show will continue to be 100% free of charge for all BCHA Ask an Expert Ask a question about hotel operations or marketing and we’ll ask an expert to respond to it. Email your question to [email protected] members and their staff. Mark your calendar and let’s CONNECT on November 3-4, 2014. I look forward to seeing you there! The Liquor Policy Review Liquor revenue is a critical factor to sustain financial viability for many hotels throughout BC. In October 2013, the BCHA submitted recommendations and met with Parliamentary Secretary John Yap to discuss the government’s Liquor Policy Review. Since then, the BCHA has been working closely with our colleagues at the Alliance of Beverage Licensees (ABLE BC) to ensure the recommendations introduced enhance and do not harm this vital revenue stream. We will continue to monitor the government’s Liquor Policy Review very closely, and will be sure to keep our members informed on any progress. Help Wanted! 100,000 Job Openings in BC Tourism by 2020! BC’s natural beauty is attracting more people than ever to enjoy all that our province has to offer. From snowboarding in the Rockies to enjoying a day at the beach on Vancouver Island, all year round our province attracts visitors who want to enjoy the great outdoors as well as those who seek to enjoy a beautiful vista from the comforts of one of our many resort hotels. With more and more people travelling to BC, we must prepare ourselves for major labour shortages. According to go2hr, there will be over 100,000 job openings in the tourism industry in BC between now and 2020. More than 44,000 of the positions will be new jobs created by our expanding tourism industry, and over 18,000 will be in accommodation services. There are a number of programs and services available to help with new hires. You can learn more about anticipated labour shortages in your region by visiting www.go2hr.ca/regions. CEO’s Report The BC Hotel Association provides a wide range of benefits to our members; most importantly we offer advocacy and member’s programs. United under the association banner, we have a stronger influence as industry leaders, our voice is louder when speaking with government, and we are able to influence regulation and legislation because we are recognized as an integral part of BC’s economic viability. The BCHA is governed by a 34-person board of directors; we have directors from each of the six regions of our province. It is important to maintain an open dialogue with directors in your region. They are your representatives and voice at our quarterly meetings. It is at these meetings where we receive regional updates, vote on resolutions, and determine the strategic goals of the organization. As a BCHA member, you and your hotel also enjoy a number of unique program benefits exclusive to BCHA members. Programs such as the Hospitality Insurance Program and TotalGuard as well as discounts from Esso, RONA, and Staples are just some of the many advantages enjoyed by our members. However, we can always do more, and that’s why at the beginning of every year we do an analysis to evaluate member participation and feedback to understand any dynamics that may be at play. For example, we have offered a natural gas program for many years. Recently the price has been at a record low, meaning it makes no sense to lock-in to potentially save some cost exposure. The current natural gas program is managed by our agent Absolute Energy. Absolute Energy continues to expand member participation by providing a high level of service and savings over FortisBC and gas marketer rates. Larger hotels, including recently registered members on Vancouver Island, have assumed marketbased monthly rates that continue to be 20% lower than FortisBC rates. Members signed up on one year fixed rates with wholesale partner Bluestream Energy have enjoyed both savings and budget cost certainty. Absolute Energy by James Chase now recommends members consider longer term fixed rates that protect today’s low prices until 2019. Many BCHA members enjoy the benefits of this program, and we recommend you contact our program provider for further details. The BCHA works very hard in this extremely competitive and dynamic environment to present meaningful, unique, and cost-effective programs. Another example is the work we have been doing on credit card merchant discount rates. In the last couple of years we have seen credit card merchant discount rates increasing and becoming a significant expense for hotels across the province. The BCHA has been investigating and piloting new approaches for several years with different providers and processors to determine if we can bring a unique program to members that is specific to the hotel industry. We have had some limited success, however, delivery to the entire province is always a priority and this is where some of our partners had limitations. We will continue to work on this initiative and will keep you updated with the progress. The BCHA telecom program is another longstanding benefit enjoyed by our members. Managed by Globalive Communications, the BCHA telecom program is currently benefitting over 300 of our members. The program offers remarkably low rates, and members never have to change providers. The BCHA telecom program covers regular direct dialed long distance charges as well as the incoming calls for toll-free lines. The Hospitality Insurance Program is owned by the BC Hotel Association and managed by Western Financial Group. The Hospitality Insurance Program, or HIP, is the preferred insurance provider for our members. The program was designed uniquely for hoteliers to provide the right level of coverage through specialized group insurance programs. However, in the past year we saw unprecedented natural disasters and extreme weather in our country. The increased risk of extreme weather is reflected in renewal rates this year. Regardless, the Hospitality Insurance Program is still the leading insurance provider to hotels in BC and we will continue to work on your behalf to ensure you receive the best rates and the best coverage in the province. Members benefits such as HIP as well as the others described above serve as an integral part of the value proposition of the association. As mentioned earlier, we are stronger when we are united, and we all benefit from working towards shared goals both through advocacy as with member benefit programs. Thank you for your continued trust and support as a BCHA member. Next Issue Summer 2013 • • • • Getting Value from your DMOs Online Reputation Management The Evolution of Hotel Amenities Differentiating your Property from the Competition Call 1-800-667-0955 to book your ad by April 25 InnFocus 5 Photo courtesy of Canadian Tourism Commission Opening Doors to Emerging Markets by Kathy Eccles The Canadian Tourism Commission (CTC) reports that Brazilian travellers have the highest average spend among all CTC’s markets and one of the longest stays at 19.5 nights. The Conference Board of Canada is forecasting that, in 2014, BC will experience a 15.5% increase in visitation from China (compared to 2013) and a 3.5% increase in visitors from India. Brazil, China, and India are three emerging markets being arduously courted by the CTC as well as provincial and regional tourism organizations (RTOs) across the country. Canada’s tourism marketers offer a wealth of firsthand knowledge on how hoteliers, tour operators, and suppliers can tap into the growing affluence of these vital international markets. 6 InnFocus Monica Leeck, manager, Market Development Asia for Destination BC, is packing for her fifth trip to India where she will attend Focus Canada - India 2014, an annual CTC trade show. Her colleague at Tourism Vancouver, Dayna Miller, Director of Sales, Travel Trade, will be part of the 50 or so Canadian representatives who’ll spend two hectic weeks meeting with up to 60 tourism buyers, conducting sales calls and training, and hosting events for Indian travel agents and tourism operators. According to CTC research, up to 95% of bookings for outbound travel in India are made through traditional travel agents, so trade shows such as these are a primary way of putting Canada front and centre before the influential Indian travel trade. Leeck, who is responsible for marketing BC to India, China, Korea and Japan, describes Canada’s collaborative national, provincial, and regional marketing efforts as “one big team that works together”. Her advice for hoteliers and others wishing to reach emerging markets: “Stay in touch with your local regional marketing arm. Send out leads to your regions saying, ‘Do keep me in mind.’ It’s so important that they are well-informed.” The other crucial piece in the puzzle, she stresses, is to work with receptive tour operators. She explains that these receptive tour operators “do all the contracting with hotels and suppliers and sell [itineraries] to the tour operators overseas.” She adds that the overseas operators will not buy directly from suppliers, so the receptive tour operators offer a bridge between Canadian companies and the international marketplace. Up to 95% of bookings for outbound travel in India are made through traditional travel agents. Negotiating the Indian Market While In India, Miller will be selling Vancouver’s urban amenities, including luxury shopping, high-end branded properties, proximity to nature, and iconic experiences, like Alaskan cruises, which she says “earn bragging rights” among Indian travellers. Responsible for the markets of India and Brazil, Miller has learned firsthand the importance of “understanding the cultural nuances when dealing with any key international market.” Working in South Asia, she has learned that Indian guests enjoy bartering. “It’s a cultural thing. Large groups and incentive travellers have money to spend, but are price-driven, and they will shop around.” She advises hoteliers and tourism operators to exercise patience as negotiations may take extra time. She further recommends that hoteliers interested in the Indian market meet high service expectations, as many wealthy South Asians have personal drivers and servants. Leeck adds that 60-70% of the nation is vegetarian, and suggests that hotels ensure Indian dishes are available. She notes that some followers of the strict Jain vegetarian diet travel with their own chefs and may request the opportunity to prepare their own food on the premises. InnFocus 7 Brazilian Tourism In 2012, Canada received 78,300 overnight visitors from Brazil, up 4.7% from 2011. With the highest per-trip spend of any of CTC’s 11 markets, these visitors injected $152 million into Canada’s tourism economy, an increase of 9.1% over 2011. The top three things Brazilians like to do when they travel is to explore historical and cultural attractions, sample regional cuisine and enjoy urban activities. They also like to shop, so much that Air Canada increased their baggage allowance to encourage this practice. According to Statistics Canada, the largest segment (29%) of Brazilian travellers to Canada was between 25-34 years old, followed by 24% over 54 years old and 22% under 25. However, it’s the youth travel market that holds sway in terms of future interest. Attracting Brazilians Canadian Hospitality for Chinese Guests >>> Hotel Association of Canada President, Anthony Pollard, holds a Masters in Political Science and International Affairs, and has traveled extensively in China. In his book Canadian Hospitality for Chinese Guests, now in its eighth edition, he emphasizes the importance of nonverbal communication, such as smiling, while at the same time noting that Chinese guests value emotional restraint. Here are more of Pollard’s tips for conducting business and negotiating with the Chinese: >>> Pay close attention to seating arrangements, as the highestranking persons sit opposite each other at the centre of a long table, furthest from the door. >>> At dinner, the best seating place is to the right of the host, the next best to his left. The place of honour is opposite the door, but is far from it, and, if possible, faces south. The lowest-ranking person occupies the most vulnerable place, with the back to the door. >>> Respect the speaking order. Express yourself slowly and in an intelligible manner, without interrupting the other party. >>> Set aside ample time, as haste is ill advised. >>> Understand that Chinese culture expects important information to be revealed only towards the end of any negotiation. >>> Do not continue negotiations during the meal that follows, although this period is essential to the success of the process. >>> Use interpreters who possess an excellent level of language skill and who are trained in the relevant area. Source: Canadian Hospitality for Chinese Guests, Anthony P. Pollard (2011) 8 InnFocus When it comes to appealing to Brazilian travellers, Miller says it’s helpful to provide Portuguese language services, and cater to what research shows is a desire for fine dining, friendly personalized service, highend shopping, and outdoor adventure. “Many Brazilians like to ski and snowboard. Whistler is really well known.” She adds that there is growing opportunity for pre- and post-activities as cities combined with nature are a major attraction for this South American market. Tapping into China Along with India and Brazil, China is a powerhouse among emerging markets. With 54 daily flights from China to Vancouver alone, Leeck notes BC is “getting the lion’s share of capacity” from Mainland China. Since Canada was awarded Approved Destination Status (ADS) by China in 2010, the CTC reports that “overnight arrivals to Canada gained significant momentum, expanding 22.5% in 2011 and a further 15.5% in 2012 to 273,000 trips.” The CTC also discloses, “pleasure travel surged 84.8% in 2012 to capture a 27.5% share of all trips.” Stephen Pearce, Vice President of Leisure Travel and Digital Marketing for Tourism Vancouver, is highly knowledgeable about marketing Canada to Chinese visitors, which he says involves both consumer direct and trade campaigns using social media, public relations, and Chinese celebrities to literally sing Canada’s praises. Tourism Vancouver’s first-ever ambassador is Chinese-Canadian singing sensation Wanting Qu, whose record has gone six-times platinum in China; Pearce explains that her passion for her hometown of Vancouver has struck a chord in China. Set Your Priority, Product & Programming Pearce offers considerable insight into how hotels and hospitality suppliers can tap into the lucrative Chinese travel market. He encapsulates his advice into three Ps: priority, product, and programming. He believes that once a business determines the Chinese market is a priority, the first step is to develop a strategy. Like Leeck, he advocates connecting with trade partners and receptive tour operators. “Dial up who is connected and learn from them and work with them.” Next, Pearce recommends reviewing your hotel or business as a product, determining how sensitive your offering is to the Chinese market. He suggests providing room menus in Chinese, hiring Chinese-speaking staff, and putting slippers in the room. He adds that a tea kettle is an important consideration for Chinese guests, stressing “Don’t tell them to use the coffeemaker for tea.” The final P is programming. Pearce notes that Chinese travellers visit Canada “for a whole bunch of reasons, including education and business.” With that in mind, he recommends building brand equity by becoming a local ambassador, finding out about schools, or making referrals to real estate or investment companies. To appeal to Chinese guests, he explains, “shopping is part of their DNA. It is very much a gift-giving culture. Provide helpful tips on where to shop and how to ship back to China.” His philosophy is that if you help your guests connect with local influencers and attractions, they’ll be back. He recalls an escorted group from China that was visiting Vancouver to purchase properties. They later came back to go on an Alaskan cruise. “They found something they didn’t know was here.” Receptive tour operators do all the contracting with hotels and suppliers. Ultimately, relying on the experts from all levels of tourism marketing can open doors of cultural understanding, while at the same time ensuring that guests from India, China, Brazil and other emerging international markets are constantly surprised and impressed with the compelling experiences on offer in BC. Destination BC’s Leeck puts it succinctly: “Our goal is to create a return visitor.” InnFocus 9 Green Initiatives by Joyce Hayne Eco-Friendly Chemicals An increasing number of accommodation providers are searching out and using eco-friendly chemicals. We’ve asked two hotels in BC that have achieved 4 or 5 Green Key Eco-Ratings about their use of ecofriendly chemicals. Q: Where do you use eco-friendly chemicals? A: In our housekeeping department. All the cleaning products - surface cleaners, glass cleaners and air fresheners are eco-friendly. Our room attendants use them for all tub, toilet, and tile cleaning, counter surfaces, etc. Q: How effective are they compared to the standard chemicals? A: They are just as effective as regular chemicals, but need a little more “elbow grease” now and again, especially with hard water stains. Q: How cost-effective is it to invest in eco-friendly alternatives? A: I think the investment is long-term as you are helping to reduce harmful chemicals being introduced into the environment. Since we have been buying the products in bulk, it has translated into a savings in the long run. Harbour Towers Hotel & Suites, Victoria 4 Green Keys Eco-Rating Photo courtesy of the Pemberton Valley Lodge Harbour Towers Hotel & Suites has 189 guestrooms, ranging in size from standard to double-level penthouse suites. The 13‚000 sq. ft. of flexible meeting and banquet space provides ample opportunity to test eco-friendly chemicals. Housekeeping Manager Debbie Titus shared the following: Q: Where do you use eco-friendly chemicals? A: In all the rooms and public spaces. Pemberton Valley Lodge, Pemberton 5 Green Keys Eco-Rating Q: How effective are they compared to the standard chemicals? Pemberton Valley Lodge is a spacious all-suite hotel 25 minutes north of Whistler. The property offers spacious, fully-equipped studios, and one- and two-bedroom hotel suites. Two floors are pet-friendly. Public areas include a pool and hot tub, business centre, meeting room, fitness centre and more. David MacKenzie, Owner & General Manager responded to our questions: Q: How cost-effective is it to invest in eco-friendly alternatives? A: They work just as well as standard cleaners. A: We work on a cost use [basis] with the company that supplies us, so [our calculations are] based on [usage] per occupied room. Eco-friendly/ biodegradable products usually cost more, but having said that, can we put a price on trying to save this planet for future generations? I don’t think so…. It is important that everyone - from the biggest companies to the ma-and-pa businesses and each individual - do their part… to keep the planet healthy and alive. Marketing Twitter Accounts to Follow BC Hotel Association @bchotelassoc Hotel Association of Canada @hotelassoc Tourism Industry Association of BC @TIABC_CA Canadian Tourism Commission @ctcct go2 @go2hr Destination BC @Destination_BC Alliance of Beverage Licensees @ABLEBC 10 InnFocus CONNECT Food+Drink+Lodging Show @ConnectShowBC Green Tourism Canada @GreenTourismCan Canadian Star Quality Accommodation @StarQuality4 BC Hospitality Foundation @BCHospitality WorldHost Training Services @WorldHostBC Link BC @linkbc Emerit Tourism Training Certification @emerit_canada Destination BC Update by Marsha Walden As members of BC’s accommodation industry, you know firsthand how enormously important tourism is to the wellbeing of British Columbians, both in human and economic terms. Travelling fulfills dreams, connects people of the world, and refreshes the human spirit. Tourism also generates $13.5 billion in annual revenue in BC. It’s one of the province’s largest industries, employing over 127,000 people and generating more than $1 billion a year in provincial tax revenues. Since I joined Destination BC late last year, we have been working towards creating real strategic clarity for the organization and focusing the industry levers that truly drive tourism revenue growth in our province. Over the next year and beyond, we will concentrate Destination BC’s energies on the role it is best positioned to play for the collective success of our province: we will inspire people to visit BC and motivate their travel planning. In order to do this, we are developing the organization’s first long-term corporate strategy, which will include a new marketing plan. Over the past 6 months, our team has conducted research on the British Columbia brand in our major markets across North America and around the globe. These insights will help us determine what steps to take to make BC resonate more powerfully with potential visitors and how best to create more compelling reasons for BC to be next on their “must-see” list of destinations. We know that travel decisions are highly influenced by consumer confidence and the underlying economic conditions in our source markets. This has been a difficult hurdle to overcome in recent years. In addition, countries all over the world are increasingly aware of the importance and impact of the visitor economy. As we emerge from the global economic doldrums, we now see aggressive marketing investments by our competitors in the US and Australia, and new competitors from Eastern Europe and Sub-Saharan Africa. While we may not be able to out-spend our competition, we must out-smart them. We have also seen a dramatic shift in how consumers make their travel planning decisions. Self-planning, online recommendations, and real-time sharing of travel experiences through social media are fundamentally changing how businesses and Destination Marketing Organizations interact with consumers and how we market to them. Travellers are seeking new experiences - soft adventure, cultural exploration, and wildlife encounters, to name a few. BC is exceptionally well positioned to deliver these. Winning in this environment will require superb collaboration amongst Destination BC, our counterparts, all levels of government, and our industry partners. This means taking what our province already has - incredible natural assets, good infrastructure, and a renewed customer focus on creating inspiring experiences - and applying these to a clear, cohesive strategy and common goals. Tourism has the power to transform people and BC’s economy. I am truly honoured to have been chosen as Destination BC’s Chief Executive Officer and I look forward to working closely with industry to grow the benefits of tourism. Marsha Walden is CEO of Destination BC. You can learn more about their programs at www. DestinationBC.ca and follow them on Twitter at @Destination_BC. InnFocus 11 Photo courtesy of Treasure Cove Hotel Strategies to Overcome Labour Shortages Improving Economy and Changing Demographics Cause Staffing Challenges by Carol Schram At its core, the hospitality business is all about people. Hiring - and retaining - the right employees can be make-or-break decisions for any operation. 12 InnFocus “The foundation of Marriott service is that we look after the associate, the associate looks after the guest, and the guest looks after our business,” summarizes Vancouver Residence Inn by Marriott General Manager Suzanne Allemeier. It’s a strategy that’s working; Marriott was ranked fourth in Aon Hewitt’s Best Employers in Canada list for 2014. According to a 2013 study by the Canadian Tourism Human Resource Council, the tourism industry is going through a shift in labour availability that will create chronic personnel shortages in the years to come. Hoteliers throughout BC are seeing signs of this trend and taking steps to combat the challenges in their markets. “I’ve noticed that we used to have a lot more students applying for part-time work, but that isn’t the case anymore,” reports General Manager Rebecca Monsen of the Treasure Cove Hotel in Prince George. “They seem to have more options; we now see lots of very young or older non-skilled workers.” Whistler has traditionally relied on an inflow of foreign visitors with work visas but Sundial Boutique Hotel owner David Demers says that supply is dwindling. “There’s a shift in demographics and more employment elsewhere. In countries like Ireland, where employment was bad for a few years, jobs are coming back so people are staying home rather than going abroad. That changes the work force here.” We offer flexibility in scheduling and cross-training from department to department to give [employees] year-round work. with managers looking to alternative demographic groups to help fill the voids. In addition to students, general manager Tamara Turcotte of the Capital City Center Hotel in Victoria hires single parents and retirees, who are typically less transient. “We like to offer maximum year-round hours for our long-term employees,” she explains. “We offer flexibility in scheduling and crosstraining from department to department to give them year-round work. In return, they’re able to schedule around their other obligations while offering us loyalty and dedication.” “One thing that’s glaring is that hiring practices will have to change because the numbers just won’t be there,” Kiely continues, “they’re going to have to start looking not only at managing people and what they’re using as incentives, but starting from the beginning with where they’re finding these people.” For new Canadians, for example, community papers serving specific ethnic groups or local immigration service offices could prove more useful than traditional online job-posting or social media sites. “There needs to be a real look at tailoring the strategy to different groups,” he recommends. Hiring Incentives New Labour Pools The CTHRC study asked employees and their employers to rank the importance of various non-wage benefits that can influence which jobs workers choose and how long they stay. “There were some pretty big discrepancies about where they ranked those benefits,” Kiely points out (see chart below). As the population ages, many Canadians over 55 have been looking to change careers or re-enter the workforce. While the YWCA’s Job Options Older Workers Employment Program is currently on hold due to a change in government funding, job developer Christine Glendinning is quick to tout the The Provision and Importance of Selected Non-Wage Benefits Benefit Young Workers More Scarce “The 18-24 demographic is incredibly important in the tourism industry,” explains Jon Kiely, Vice President of Product Innovation and Marketing for the CTHRC. “That group represents about 34% of the entire workforce in tourism, whereas in the general economy, it’s only about 15%.” Statistics Canada projects that there will be 7.3% fewer Canadians aged 18-24 in 2022 than there were in 2010 - a loss of some 242,000 potential young workers. Employers will need to compete harder than ever if they hope to attract and retain those workers. Monsen uses job fairs at her local postsecondary institutes in Prince George to attract young staff. Social media channels from LinkedIn to Craigslist can also be effective tools. However, the tide is changing, % of Employers Providing Benefit Employer Ranking 51% 31% 38% 44% 19% 48% 92% 17% 73% * 50% * 22% 55% 22% 10% 34% 21% 31% 4 11 8 7 16 6 1 17 2 * 5 * 13 3 14 19 9 15 10 Employee Ranking of Importance (based on provision) Health/dental plans Short term disability Long term disability Employee life insurance Registered pension plan Flex time/flexible hours Training Group RRSP Employee discounts/free services Sales bonuses and/or commissions Company car/mileage allowance Profit sharing plan Maternity/parental leave Communications technology Telecommuting/home-based work On-site amenities Association memberships Job sharing Tickets to events 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Source: 2012 Canadian Tourism Sector Compensation Survey, August 2013. Canadian Tourism Human Resource Council. InnFocus 13 benefits of hiring older workers. “It’s a misconception that they’re not energetic. They’ve got a really diverse background of experience and a lot to offer.” Rebecca Monsen has had great success slotting older workers into her staff. “Our breakfast-attendant position has worked out really well. We have a couple of close-to-retirement age women who work in that department. It’s a customer service position where you’re talking to lots of guests, and people in that age group are really good at connecting with customers. Our guests have gotten to know Jane and appreciate the familiarity. That adds value to our hotel.” Monsen has tried a number of programs to bring new types of workers into her hotel. She’s had the best success with the Foreign Worker program. “We have a girl from Lithuania who has done very well - she’s been here for almost a year. She comes to work, does her job, and communicates well. We’re in the middle of renewing her application right now. She’s been fabulous, so that [program is] starting to show some payoff. We’re going to apply for another sponsored Labour Market Opinion (LMO) worker this year.” Engagement and Loyalty SilverBirch Hotels & Resorts operates the Vancouver Residence Inn by Marriott and the Harbour Towers Hotel & Suites in Victoria as part of its portfolio of more than 20 properties nationwide. They received the 2013 Hotel Company of the Year award from Hotelier magazine and were named one of the 50 Most Engaged Workplaces in Canada by Achievers. “They’re two completely different awards, but in my mind they’re connected,” says SilverBirch Senior Vice President of Human Resources Christine Maassen. “Having an engaged workforce is a key way of driving results.” SilverBirch has increased its engagement levels even as it’s gone through a very disruptive period - selling and closing properties and, in the case of the Vancouver Residence Inn, closing for renovations from September 2011 to July 2012. “The existing team, some of whom had been with the hotel for 20 years or more, were laid off for the renovation,” explains Suzanne Allemeier, General Manager. “When we did the callback, we got 96% of the old team back. It was fantastic.” During the closure, some employees took advantage of SilverBirch’s education benefit. Up to 50% of program costs are covered for staff members who wish to upgrade their skills, whether it’s a wine course, upgrading computer skills, or a Bachelor’s degree in hospitality management from Vancouver Community College. Keep Staff Happy and Feeling Valued Vancouver Residence Inn by Marriott employees who planned to return after the closure were able to keep their health benefits active, and management maintained a Facebook page to keep employees abreast of the renovation progress and to keep them connected with each other. “My biggest strategy for a mitigating labour shortage is a retention strategy,” affirms Maassen. “You develop them and create a future for them and engage in a very honest conversation, and they see where they fit.” At Treasure Cove in Prince George, a positive work environment also keeps the good people around. “We’re locally owned and operated and we’re No. 1 in occupancy in our market, which is an anomaly,” Monsen says with pride. “In the last two years, we’ve run a lot of engagement programs, which have been a huge success. We run a health and fitness challenge every three months and I had 50% engagement in my last round, which is astronomical. We have a really friendly work group, with good people who like each other.” 14 InnFocus 1-855-382-3992 BEST WESTERN PLUS Wine Country Hotel & Suites Hospitality at Its Best in West Kelowna by Terri Perrin The BEST WESTERN PLUS Wine Country Hotel & Suites in West Kelowna couldn’t be in a better location. It is perched on a hill overlooking Okanagan Lake, with views of Kelowna Mountain and Mount Boucherie, and it is close to all of the region’s major tourist attractions. Within a few minutes drive you can be at the mountains or the lake, with all of the outdoor recreational pursuits they offer. Nine wineries, several golf courses, and restaurants and shopping are also nearby. The hotel has 99 well-appointed rooms and offers an abundance of free amenities including parking, continental breakfast, coffee, local calls, and wireless high-speed Internet as well as an exercise room, water slide, indoor pool, and hot tub. Business travellers welcome the conveniences of the hotel’s business centre and meeting rooms that can accommodate up to 65 people. Those travelling with companion animals appreciate that one 16 InnFocus entire floor is dedicated as “pet friendly” and pets receive a gift upon arrival. The property was built in 2009 and is owned by Rod and Judy Hazard of the Braemar Group of Hotels, which includes two properties in BC, one in Alberta, and two in Saskatchewan. The West Kelowna location is the only one that operates under the BEST WESTERN PLUS banner. Austrian-born Elfriede Schmoll was hired as general manager in 2012. She oversees the day-to-day hotel operation and management of a staff of 25 to 50 employees. “Aside from the great location, amenities, and newness of this property, it is interesting to note that because West Kelowna is not part of the City of Kelowna, and the hotel is on First Nations’ land, we do not charge a tourism tax,” explains Elfriede. “That is always a pleasant surprise for our guests!” Like most properties in Canada, the BEST WESTERN PLUS Wine Country Hotel and Suites, is not immune to the highs and lows of seasonal travel. Fortunately, Kelowna is home to many sports tournaments - soccer in summer and hockey in winter - and Elfriede has been successful in marketing to attract team stays. There is also a considerable amount of development in the area and many construction-related contractors make the Wine Country Hotel their home away from home. Elfriede has also worked closely with the wineries, ski hill and other local recreational attractions to offer attractive Stay and Play packages. Elfriede believes that all businesses today have to make a determined effort to be green and the hospitality industry is no exception; especially if you want to market to government travellers. The hotel has a 3.5 Green Key rating from the Hotel Association of Canada and is working to earn a 4 Key rating this year. “We have done everything, from the mundane - like placing blue recycling boxes in all rooms, Elfriede Schmoll, General Manager to changing the light bulbs and having low flush toilets - to being more innovative and using disposable dishes made of potatoes, not Styrofoam, at the breakfast bar,” describes Elfriede. “While all guests are conscientious about recycling and energy use, I find that our European guests are even more aware and demanding. Again, you have to know your market and cater to their needs. Ecofriendly initiatives are certainly one of them!” “It all comes down to knowing your community and its events, and knowing how to promote your hotel to specific types of travellers. We use all the traditional methods of advertising, but over the past couple of years, we have started using more social media. A dedicated staff member coordinates social media for all five Braemar properties.” That confidence in knowing her market is something that comes quite naturally to Elfriede. She has hospitality industry experience that goes back to when she was a child! From age 11 through 18, whenever family friends needed extra help at their hotels, her parents “volun-told” her to lend a hand. She worked as a housekeeper and on the front desk. “I didn’t like it back then!” she recalls. “So, I went to university, earned a degree in Organizational Behaviour, and eventually immigrated to Canada. I worked in a totally different field for 16 years before I realized that I really missed working in the hospitality industry. Twenty years ago, I secured a job at a hotel in Niagara Falls and I have never regretted that decision. At that time, most of the hotels in Niagara closed from November through Easter. The one I worked at was one of a few that stayed open, so the skills I learned there are serving me well in my new role in West Kelowna. I also worked at a hotel in Toronto and the Sandman Group in Victoria. In these positions, I was fortunate to gain a great deal of international sales experience and made many industry connections. I was offered this position in West Kelowna through those connections and I absolutely love it here!” Elfriede and her team focus on offering guests a positively memorable experience with superior customer service. In April 2012, they were recognized for their efforts with a BEST WESTERN International Housekeeping Excellence Award. To qualify for the award, the hotel must maintain a minimum overall rating of 80% of brand quality assurance inspections and it incorporates guest service scores into the overall tally. “Knowing that our guests’ comments factored into the scoring made winning this award even more meaningful,” concludes Elfriede. InnFocus 17 Enhance Your ROI with OTA Best Practices by Kenneth Svejkovsky The secret to enhancing your ROI is really no secret at all. Every business owner knows that the very simple and non-changeable equation for enhancing your ROI is to increase revenues and/or decrease expenses, hopefully achieving both at the same time. There is no easier, more effective way to increase revenue than by developing, executing, and monitoring a sound revenue management strategy. As part of this strategy, a very viable - though much debated - opportunity to do this effectively is through the partnership with Online Travel Agencies (OTAs). 18 InnFocus As the importance of this distribution channel has grown, so has the mounting frustrations for hoteliers working with OTAs. There are lyrics from a famous song that go “You can’t live with ‘em, you can’t live without ‘em. There’s something irresistible-ish about ‘em.” And, though the original reference to this song is the relationship between men and women, these words might easily apply to the relationship between hoteliers and the fastest growing distribution channel for hotel rooms - OTAs. Regardless of the frustrations felt within the industry, the reality is that whether you are a branded hotel with substantial marketing resources or an independent hotel with very limited marketing resources, it is highly unlikely that either will ever have the financial means to compete in the marketing arena where the top four OTAs alone have combined sales that exceed $26 billion and combined marketing budgets that exceed $3 billion per year. It is projected that OTAs will control over 30% of the entire world travel revenue by 2014. Rather than feeling frustrated and trying to compete directly, it It is projected that OTAs will control over 30% of the entire world travel revenue by 2014. might be a far better strategy to recognize the importance and potential of the OTA partners, enthusiastically embracing the “irresistibleish-ness about ‘em”. With that in mind, here are 8 proven best practice strategies, which when utilized consistently, can help managers, operators, and owners, enhance their ROI: Commit The first requirement for successful results with OTA partners is to develop the relationship as a long-term strategy and commitment. Though there are specific promotions and opaque selling opportunities on certain OTA sites that can help fill distressed space, in order to achieve sustainable results, total commitment is required. You have to want to work with the OTAs and need to see the long-term benefits in developing these relationships. It is not necessary to work with every OTA in the marketplace. Review each business model - including payment policies, associated costs, potential net return to the hotel, and propensity to attract guests - that best matches your hotel’s target market(s), and then decide which might be the best fit for your property. Unless you are running at 100% occupancy, there are likely opportunities available to you with all or most OTAs. One recommended best strategy is to participate wherever you can with whomever you can, often referred to as the Billboard Effect, where the more exposure you have through the Internet, the greater the propensity for increasing unique visitors to your own website - thereby increasing top-line revenue. However, there may be valid reasons to pick and choose which OTAs you prefer to work with. For example, a luxury brand may not wish to expose its product on a InnFocus 19 presented by each OTA. You may not wish to participate in every promotion, but it will help your rankings on that website over time. When determining if a promotion is a good fit for your property, don’t be afraid to ask your Account Manager for modifications to the promotion if one small detail doesn’t work for you. For example, in a recent 24-hour 50% off promotion opportunity, the original booking dates ran from January 30 to March 31. As this is a time frame where inventory is historically abundant for most Vancouver properties, this might be a good fit. However, when the OTA adjusted the booking dates, requiring dates be included through the end of April over a traditionally sold out holiday week, the promotion no longer makes sense. A simple call to your Account Manager requesting participation with restricted dates is usually attainable. Revise Content Regularly Develop the relationship as a long-term strategy and commitment. discount site in fear of eroding reputation and potentially average daily rate (ADR). Or, a small independent boutique hotel may not have the human resources to properly manage multiple OTA relationships, and therefore choose to work with a select few. Each property, each chosen revenue strategy, and each OTA value proposition is unique, so do some research and determine which OTAs best meet the needs of your property. Once determined, jump in with both feet and commit for the long term as a strong OTA partner. You can demonstrate your commitment and ensure opportunity optimization by doing a few key things that can be accomplished with a minimum investment of time and human resources. Ensure inventory is always loaded for 18 months or more. Set restrictions and/or close inventory only when absolutely necessary to optimize revenue. Maintain price parity across all channels, no matter how tempting it may be not to. Though the intricacies of improving ranking, and therefore sales, are unique to each OTA, constant availability, rate parity, and content are important with every OTA. 20 InnFocus Engage OTA Account Managers are experts in their field. Use their market intelligence to help make the best decisions for your property. Engage them in conversations on a continuous basis. They will tell you exactly what you need to do to get better results and can be a tremendous resource in regards to what is happening in the marketplace at any given time. Many OTAs include statistical information on demand in the marketplace directly on their consumer websites. These percentages are based only on the overall inventory loaded on their website for a given marketplace, but are a good indication of what dates indicate heavy demand and which dates show lighter demand. Although it’s not the only way to determine demand for your individual property, it is a great generic indicator that can be used to help determine dates where rates and restrictions may need to be adjusted for revenue optimization. Another part of being engaged is to participate in promotions and marketing opportunities One challenge for OTAs that many Account Managers convey is that a hotel loads content and photos when they sign up and then never reviews this information again. The algorithms used by the OTAs in ranking are dynamic, so content that may have been very effective one day is no longer effective the next. Schedule regular reviews and update content as needed. Check your competitors’ content to ensure that you are clearly conveying your unique value proposition. Review reports on the amenities and services most important to guests and ensure that information is clearly conveyed in your introductory paragraph on each OTA listing. Update Photos Often The world of social media has made consumers visually reliant. Your best marketing investment is in high quality, diverse photography. Show different room types and make sure you include photos of the television(s), bed(s), and bathroom(s) for each room type. Add any photos that might enhance the guest experience, including public areas and local attractions that are within walking distance. Recreate as much of the guest experience as you possibly can within the guidelines allowed by each OTA, and update them as often as required. At a minimum, you should change your lead photo each season. For example, in a recent case with one OTA, after a property worked diligently to achieve a 100% content score for optimal ranking, suddenly changes were made to the content requirements. The content score dropped significantly with these changes, but when revisions were made, the score returned to 100%. Regular monitoring and updating is required to ensure that your property ranking is retained. It is recommended that you monitor your listing at least on a monthly basis, or you risk missing out on selling opportunities. Know Your Competitors Intimately Often the competitive set perceived by the team at the property level may not be the same those perceived by a guest when making a buying decision. Each OTA site may represent a different competitor set for your property, and those properties can change based on a number of different factors including time of year and the primary market segment purchasing at any given time. Many OTAs will list the most recent competitors for your property on their Extranet. Review these frequently as possible so you can highlight your property’s unique features. Stick to Your Strategy At times, particularly when rooms are sitting empty, it can become very challenging to stick to whatever revenue strategy your property has established. However, prior to making any major changes to your strategy, research the marketplace and determine if the challenge is price, demand, or positioning related. Then, compare the historic booking patterns for your property for any given point in time, making adjustments that support - rather than erode - your overall revenue strategy. Personal experience and market research conveys that demand is not generated by simply dropping prices. The best practice is to drop prices only when doing so will actually create demand. Social media sites such as Groupon, Living Social, and Travelzoo have proven their ability to create demand and can provide a substantial boost to occupancy during need periods. However, merely dropping the price a few dollars, or even a substantial amount, when it will not create new demand only results in a sale that most likely would have been made at the higher selling price. One great example of this was in Vancouver in July 2013. The booking pace for that period was behind by about 50%. Many properties panicked and slashed rates to off-season levels. Recognizing historically that July delivers, other properties maintained their revenue strategies and finished the month at record ADR and RevPAR levels. The demand was delayed, but there was no indication that dropping prices would create new demand for this period. Execute Without Fear The three areas that tend to hurt OTA rankings most are closing inventory, placing too many restrictions, and not pricing appropriately within the competitive set of each individual OTA. It is sometimes a challenge to avoid these past practices. However, if your OTA goal is to help enhance ROI, you must execute that strategy without fear. InnFocus 21 Do not be fearful when you leave inventory open with your OTA, even when you are sold out and risk overbooking. Be prepared by having alternative options available to walk a guest in the event of overbooking, but keep inventory open. Increase the rate, add minimum stay restrictions, create a Run-of-House category that provides room assignment flexibility, make the rate advance-pay, no-refund, but maintain at least one available room each and every night for a minimum of 18 months out. Pricing Strategies Review pricing of the hotels in your competitive set and the pricing of hotels ranked one star below and one star above your direct competitive set. Don’t be afraid to push the pricing envelope. If you have a unique selling feature that has demand for a specific market segment, stick to your revenue strategy and hold out for top dollar. For example, if you have rooms or suites that can accommodate 6-8 guests, while other properties don’t, there is a large market for family and multi-generational travel. You may wish to charge a premium on these accommodations in the summer, even if the market demand and marketplace pricing in general is soft. This strategy may hurt your OTA rankings in the short term, but guests seeking these unique accommodations will find you through sorting options, and you will have a competitive edge allowing you to buck whatever current pricing trend there may be for standard types of accommodations. Price according to the demand for your individual property, regardless of meeting the requirements of the OTA. Your goal is optimizing revenue. The goal of most OTAs is transactional. Again, stick to your strategy. Find the Passion Optimizing incremental revenue through OTAs is not for the faint of heart. It can be a tedious job of daily research and replication. The key to success is finding that one or two perfect personalities and skill sets within your organization that will help, plan, execute, and continuously monitor sites with endless passion and drive. This individual may not be the typical person who handles revenue management, as the skill sets needed are unique and can have a huge positive impact on hotel revenue. Select carefully and make sure that you see them foaming at the mouth every time they talk about OTA strategy. Your OTA success requires commitment and passion unlike any other strategy. Over the past 5 years, having religiously practiced these strategies, I have personally witnessed properties of varying shapes and sizes double their OTA bookings each year, improve their RevPAR by up to 68%, increase their Net Operating Income or Gross Operating Profit by 52%, and enhance their overall Return on Investment (ROI) by over 500%. Here’s hoping you find your personal “irresistible-ish” OTA strategy and achieve similar results for your property. Kenneth R. Svejkovsky, CHA, CTC, MCC, MBA, is General Manager/Ambassador of Fun and Prosperity at the Rosellen Suites at Stanley Park. Quick Tips >>> Set your revenue strategy and change it SLOWLY if needed. >>> Schedule monthly meetings with each OTA Account Manager. >>> Post photos of tv(s), bed(s), and bathroom(s) for each room type. >>> Update photos seasonally. >>> Revise content quarterly. >>> Highlight content that matters most to guests. >>> Ensure your Unique Selling Proposition (USP) is appropriately positioned in content. >>> Position different USPs against each unique competitive set. >>> Control the controllables. >>> Determine if empty rooms are a result of price, demand, or positioning. >>> Discount ONLY when it can create demand. >>> Participate in promotions if it supports your revenue strategy. >>> NEVER close inventory. >>> Overbook without fear. >>> Limit restrictions except where essential for revenue optimization. >>> Create a run-of-house category. >>> Implement a property-wide upsell program. >>> Use auto responders for post-stay follow up with exclusive repeat guest offers. >>> Train OTA specialists who will plan, execute, and monitor with passion. 22 InnFocus Names in the News by Debbie Minke Congratulations to the following new general managers: Darren Aylward, Ramada Hotel Downtown Prince George; Ron Johnson, Ramada - Kamloops; Parm Kooner, Comfort Inn - Surrey; Fernanda Ladeira, Penticton Slumber Lodge; Calvin Neal, Econo Lodge, Fort St. John; Michael Pye, The Fairmont Hotel Vancouver; Annabel Saunders, Best Western Plus Austrian Chalet, Campbell River; Matt Scheibenpflug, Prestige Hotel Kelowna; Sandra Shaw, Best Western Plus - Prestige Inn Radium Hot Springs; Ravi Sidhu, Days Inn Vancouver Airport; Arthur Wong, The Beach Club Resort, Parksville; and Dallas Worthington, Best Western Plus Sands Hotel, Vancouver. Philippe Gadbois is the new Chair of the Hotel Association of Canada’s Board of Directors. Gadbois has over 40 years of varied experience in the hotel industry, including senior positions at Atlific Hotels, Realstar Hospitality Corp, the ownership of a fully integrated hotel consulting firm, and Hilton International. He is Senior VP Operations and Senior VP Sales, Marketing and Development at Atlific Hotels and Resorts. Paul Nursey is the new President of Tourism Victoria. He previously served as Vice-President of Strategy and Corporate Communications for the Canadian Tourism Commission. Steve Halliday was awarded the Lifetime Achievement Award by Hospitality Sales and Marketing Association International’s BC chapter (HSMAI BC). Halliday was selected for his work defining standards for excellence in hospitality management as well as his lasting contributions to Vancouver’s hotel industry. Prior to his retirement last August as Managing Director of the Rosewood Hotel Georgia, Halliday spent 26 years in senior positions within Pan Pacific Hotels Group, most notably as Vice President and General Manager of Pan Pacific Vancouver for more than 10 years. Rick Antonson, President & CEO of Tourism Vancouver, was awarded Skål International Vancouver’s 2013 Bill Rowe Memorial Tourism Award for his role in contributing to the success and growth of tourism in Vancouver and BC. Skål International Vancouver also inducted Norman Mastalir , Managing Director of The Fairmont Chateau Whistler, and Gary Collinge, General Manager of the Hilton Vancouver Airport, as new members. Mastalir has held numerous positions with Fairmont Hotels and Resorts around the world since he joined the company in 1978. Collinge has been in his current position since 2011, and prior to that was General Manager of the Georgian Court and Hampton Inn & Suites in downtown Vancouver and other hotels in Calgary and Victoria. The Board of the Canadian Tourism Commission (CTC) has appointed Greg Klassen, CTC Senior Vice-President, Marketing Strategy and Communications, as its Interim President and CEO. The appointment follows the successful 10-year tenure of Michele McKenzie, who announced her departure in fall 2013. Norman Mastalir (centre), Managing Director of The Fairmont Chateau Whistler, was inducted as a new member of Skål International Vancouver by Angus Wilkinson (left) and Ivano “Coach” Corazza. Photo courtesy of Mark Kinskofer, Vision Event Photography The luxurious Rosewood Hotel Georgia has been ranked at No. 16 on TripAdvisor’s 2014 Travellers’ Choice list of the top 25 hotels in the world. The Tigh-Na-Mara Seaside Spa Resort & Conference Centre in Parksville has captured the Hotel Association of Canada’s 2013 Hall of Fame Award of Excellence in the Humanitarian category. Starwood Hotels & Resorts and SilverBirch Hotels & Resorts have been named as two of the 50 Most Engaged Workplaces™ in Canada by Achievers. This annual award recognizes top employers that display leadership and innovation in engaging their workplaces. Canada’s second Marriott Autograph Collection property, Civic Hotel Surrey City Centre, will be Surrey’s first mixed-use hotel and residential project. The luxury hotel in the emerging City Centre project will boast 144 rooms, a lobby based café, fine dining, fitness and pool facilities, a large convention space, and catering services. Construction has begun and completion is projected for fall 2016. Set to open in May, the Skwáchays Lodge in Vancouver is being billed as the first Aboriginal arts hotel. Six hotel interior designers have donated their services and have teamed up with seven aboriginal artists/designers to create 18 unique rooms with the installation of original carvings, blankets and paintings. Each floor has its own animal spirit - Raven, Eagle, Bear, Wolf and Orca. The Lodge also has a sweat lodge and a number of gathering places including an artists’ workshop, a smudge room and library. A traditional northern longhouse sits atop this heritage building with a 40.5 foot totem pole. SilverBirch Hotels & Resorts raised more than $44,000 in their 2013 Friends in Need campaign. Ten SilverBirch-managed hotels participated, raising money for local charities including BC Children’s Hospital Foundation, Ronald McDonald House, Canadian Red Cross, Food Bank and Missing Children Network. If you have any noteworthy community contributions, please send the details to [email protected]. InnFocus 23 Sharpen Your Pencils! Cost-Saving Initiatives that Offer a Return on Investment by Terri Perrin To the average person, comparing a balance sheet to an income statement and coming up with a cost ratio may be just a number on a page, but to hotel managers and owners it is the Holy Grail of fiscal measurement. Ever-increasing labour and energy costs, combined with seasonal highs and lows - and the resulting feast or famine cash flows - make managing cost ratios an ongoing challenge for the hospitality industry. There is no doubt that to keep close tabs on both fixed and variable costs and to determine employee-to-room ratios and profitability, you need to be creative. 24 InnFocus Turning Trash into Cash When David McKenzie, General Manager at Pemberton Valley Lodge, analyzed his costs, waste disposal expenses stood out. His property is located in a remote region, where all garbage is trucked out of the area, so this represented a significant monthly expense in transportation and tipping fees. By investing in a trash compactor and implementing a hotel-wide recycling program, he was able to reduce waste collection - and billings - from twice a week to bi-weekly. “During slow times, we also reduce costs by booking guests into lower level floors first,” says McKenzie. “When you limit the use of the upper floors, there is a measurable reduction in utility use, not just from heating and lighting, but also the elevator.” McKenzie has all of his employees on board with cost-saving measures by turning off lights, shutting down computers when not in use, and using the stairs rather than the elevator. He has also replaced six printers throughout the building with just two, and the lodge has gone virtually paperless. “Using email to send guest receipts has reduced the need for ordering office supplies from weekly to monthly, saving us money on shipping, paper, toner, equipment maintenance, and time” notes McKenzie. While not all cost reductions have the spin-off benefit of being seen as eco-friendly, those that do make you look good in the eyes of your guests as well as your accountant! Go Green to be in the Black The Hotel Association of Canada’s Green Key eco-rating and Green Tourism Canada’s audit and certification programs are both designed to help the hospitality industry meet a growing consumer demand for environmentally responsible business practices. The spin-off benefit is considerable operational savings. Being green can also help keep you in the black. “Look beyond easy fixes, like reducing hot water consumption and changing light bulbs,” says Green Tourism Canada’s CEO, Angela Nagy. “In many cases, significant savings can be realized with very simple initiatives. For one hotel group in BC, with 10 locations and a total of 1,000 rooms, we determined that operating their mini-bar fridges 24/7 was costing over $25,000 a year,” she explains. “Fridges are now unplugged when rooms are vacant. A little sticker on each fridge explains the cost-saving initiative to guests, inviting them to ‘plug it in’ if they want to use it. The estimated operational savings will be $10,000 a year - and all for the cost of a thousand stickers!” Analyze Your HVAC System Arno Ricci, Chief Operating Officer of Ontario-based Gordon R. Williams Corp., believes that hotel operators should also be knowledgeable about advances in the energy efficiency of heating, ventilation, and air conditioning (HVAC) systems and how they can be coupled with computerized wireless (or hard-wired) thermostatic controls and other devices. “Packaged Terminal Air Conditioning (PTAC) units represent the highest energy expenditure for any property,” says Ricci. “There may be a need to do some reshaping in order to install new, more energy-efficient units, but thankfully, it is usually an easy retrofit. It is a case of having to spend money to save money. Some utility providers offer incentives for upgrades and your immediate return on investment through rebates can be as high as 25%.” Ricci adds that some individual computerized thermostat gauges are so sophisticated that a connection to the front counter POS system tells it when a room is rented and whether or not the guest is actually in the room, adjusting the temperature accordingly. The system can also be connected to lighting control, turning on the lights when someone enters the room and shutting them off if the room is vacant. The amount of money a property can save through this type of automation is immense. “There are other efficiencies that the property gains with network technology,” adds Ricci. “This includes electronic door locks, doorbells, chimes, and many other things that, from a guest’s perspective, make them feel like they are in a high-end hotel. These enhancements offer small savings, but savings nevertheless.” Advanced network technology also enables a property to participate in and financially benefit from electrical load shedding programs, which automatically reduce energy consumption by a degree or two during peak times, so the utility company can export power to other locations. Savings from Utility Suppliers William Mbaho, Senior Media Relations Advisor, BC Hydro Power Smart commercial programs, reports that the utility company has identified numerous electricity savings for the hospitality industry. In some cases, there InnFocus 25 are also incentive programs to help with the cost of implementation. He says that the average hotel in BC could make significant energy-efficient upgrades and realize baseline savings on their annual electricity costs. (See sidebar.) The Best Western Plus Uptown Hotel in Vancouver is a stellar example. The property saved $1,800 on its annual electricity bill by switching to LED lighting. With four light bulbs per guestroom, and more in common rooms and staff areas, switching out 332 incandescent bulbs (40-60w) for LED screw-in bulbs was a big investment, but it has paid off for them. Light Bulb Moments Avril Matthews, Director of Marketing and Sales for Victoria’s Inn at Laurel Point, is proud to say that her property is the first (and only) carbon neutral hotel in BC. Their environmental initiatives extend from changing light bulbs - which resulted in an 86% reduction in energy consumption and a savings of $8,000 per year - to encouraging staff to take public transit, car pool, or ride their bikes to work. “With the help of an energy auditor, we evaluated our exterior lighting and discovered that our old driveway lighting had 18 lamp posts and we were using 5,490 watts of power per hour,” explains Matthews. “We installed new LED lighting on seven lamp posts and now use only 467 watts per hour. The lighting is brighter and we shouldn’t need to change light bulbs for five years. We also removed a large rooftop neon sign and replaced it with an LED sign. There was an immediate and dramatic reduction on our utility bill.” BC Hydro’s Estimated Savings on Annual Electricity Costs Lighting • Upgrade incandescent/halogen bulbs to LED: 50-80% savings • Replace incandescent or CFL exit signs with LEDs: 80-95% savings • Upgrade outdoor signage to LED with photocells: 80-90% savings Plug Load, Appliances & Refrigeration • Use Energy Star/Efficient Commercial Cooking Equipment: 10-60% savings, depending on the appliance and usage • Upgrade refrigerated cases (motors, lighting (LED), anti-sweat controls): 50-80% savings Heating, Ventilating and Air Conditioning • Add demand ventilation controls to kitchen exhaust hoods: Up to 50% savings, depending on kitchen utilization For details on BC Hydro’s Product Incentive Program, visit: www.bchydro.com/powersmart/business/product_incentive_program.html Matthews also paid close attention to staff scheduling, saying that this is one area where it is easy to become complacent. “You put a schedule in place and then let it go on auto pilot,” she describes. “When we analyzed our housekeeping staff, for example, we realized that there were blocks of time when we had too many people and not enough work for them to do. Keeping each employee’s number of weekly hours the same, we factored in the dates and times of day when we needed to have more staff available and introduced a schedule with six-hour shifts. This was well received by employees, many of whom were juggling family commitments. Making the change took work, but it worked!” The Inn on Laurel Point is also engaging the community as a founding member of ViSTA - the Victoria Sustainability Tourism Alliance. They meet with other like-minded community partners to share marketing power and resources in an effort to meet the ever-increasing demands of their eco-savvy customers. Their collaborative efforts are helping to increase sales and reduce operating costs. Whatever expense-reduction measures you put in place, in order to recognize a return on investment of your time and effort, staff training and motivation is key to ensure the cost-saving initiatives are fully understood and implemented as planned. 26 InnFocus American Travel Intentions and Trends by MMGY Global or has declined. Travellers are interested in visiting approximately 10% fewer destinations now than in 2012. Americans intend to take as many or more vacations during the coming year as they did last year, although their list of preferred destinations is smaller and they remain cautious about discretionary expenditures. This is according to the newly released MMGY Global/Harrison Group’s 2013 Portrait of American Travelers®. The survey revealed a 3% increase in active travellers planning to take more trips in the year ahead (now 18% of all travellers), while 64% of travellers are planning to take the same number of trips this year as they did last year. This compares with 15% who are planning to take fewer trips. Notwithstanding their concern about household budgets, leisure travellers in all annual household income segments expect to spend slightly more on travel/vacations in 2013 than they did in 2012, a good sign that travel continues to be a priority for Americans when they think about their discretionary spending. While the recession technically ended in June 2009, Americans’ travel behaviour reflects a lingering concern about the impact of the Great Recession on consumer spending, both discretionary and otherwise. Specifically, six in ten travellers are still looking closely at every spending category, including travel services, seeking ways they can save. The level of interest in visiting several popular, domestic destinations is also flat “Technological advances and additional sources of information are also factoring heavily into the decision-making process, as travellers are attempting to make smarter choices, seeking better value and good deals,” explains Steve Cohen, Vice President of Insights at MMGY Global. “But we are encouraged to see that travellers are planning to spend more on travel and vacations, and that 82% are planning to take as many or more trips in the coming year as they did in the previous year.” Additional insights from the 2013 Portrait of American Travelers® include: • The Search for Travel Deals. Comparison travel shopping sites such as Kayak and Dealbase have gained in popularity and are now used to make travel reservations by 28% of travellers, up from 15% in 2010. Meanwhile, 58% typically use an online travel agency (OTA) such as Expedia, Travelocity or Orbitz to research travel, yet the incidence of the utilization of OTAs to make travel reservations is down from 66% in 2010 to 58% in 2013. • Vroom with a View. With travellers’ cautious attitude toward spending, it comes as no surprise that automobile travel is on the rise. Although the modes of transportation used by travellers remain unchanged since 2010, the incidence of travel by personal automobile has increased from 65% in 2010 to 69% in 2013. • Have Smartphone, Will Travel. Smartphone usage among travellers has nearly tripled since 2010, and the act of downloading travel-related applications has also increased dramatically - from 19% in 2010 to 36% in 2013. Among travellers who have downloaded travel-related apps, 54% have downloaded airline branded apps, followed by hotel branded apps (38%), and destination guides (27%). • Word of Mouth. 82% of travellers express confidence in the recommendations of friends and family members when considering vacation destinations, while 58% turn to online advisory sites such as TripAdvisor. com. 41% are confident in reviews read on a blog, while slightly less (39%) are confident in articles found in newspapers, magazines, TV, and radio. • Medical Tourism on the Mind. Travellers are significantly more likely to be familiar with the concept of medical tourism than in previous years (61% in 2013 versus 50% in 2010). When asked about their interest in having a medical procedure done in a foreign country, assuming comparable quality, 22% would go “under the knife”, compared with 17% in 2010. Interestingly, the top destinations travellers are interested in visiting to receive medical treatment are those that offer universal healthcare coverage: Canada (29%), United Kingdom (23%), Germany (21%) and Sweden (19%). Cost savings (87%) are cited as the most popular reason why, followed by comparable or better quality of care (66%), and access to procedures not covered by their domestic insurance (52%). • Going Green for Green. Though 79% of leisure travellers describe themselves as environmentally conscious, just 10% are willing to pay higher rates/fares for environmentally-friendly travel services, and only 11% have actually selected an environmentally-friendly travel service supplier who has demonstrated environmental responsibility. MMGY Global is the world’s largest and most integrated global marketing firm with more than 35 years of experience in the travel, hospitality and entertainment industries. For more information, visit www.mmgyglobal.com. InnFocus 27 Insights on Social Media in BC Despite rumours of Facebook’s impending decline, the social media giant is still dominant: the majority (67%) of BC adults visit Facebook at least once a week and 50% use it daily; also 24% are using it more often than 6 months ago (54% the same, 21% less often). A recent Insights West and 6S Marketing online poll surveyed 838 BC adults regarding their social media use and found that Facebook still leads the social media landscape by a significant margin. Two-thirds of British Columbians (67%) use Facebook at least once per week, and half (50%) use it daily compared to only a fraction of that who use Twitter (13%), Instragram (5%), Pinterest (4%), or LinkedIn (3%) on a daily basis. When it comes to social networking sites other than Facebook, Twitter is BC’s second most-used social network. Fresh from celebrating its seven-year anniversary, Twitter receives weekly visits from one-fifth (21%) of British Columbians, and daily visits from 13%. Half as many visit Pinterest (11%), LinkedIn (9%) and Instagram (9%) at least weekly and fewer than 5% use each of these daily. still the most popular social networking site among those aged 18 to 29 (88% at least weekly, 76% daily), this group is also experimenting with other social networks. The majority (60%) have used Twitter, and 36% use it at least weekly. 41% have used Pinterest and Instagram (37%), with one-in-five using these sites at least weekly (17% Pinterest and 22% Instagram). 30% have used Tumblr, with 10% using it at least weekly. Facebook is the only social media platform where British Columbians are reporting positive momentum. More people report spending less time (18%) on Twitter in the past six months than those who report more time (13%). The same applies for Pinterest (20% less versus 9% more), Instagram (18% less versus 5% more), LinkedIn (21% less versus 10% more), Tumbler (20% less versus 2% more) or Snapchat (18% less versus 1% more). Insights West is a Western-based, full-service marketing research company. 6S Marketing supports businesses through the use of digital marketing. With the exception of LinkedIn, use of all social networking sites is higher among the younger generation (18 to 29 year olds). While Facebook is VISIT US ON THE WEB! • • • • Marketing Tips Past Issues Editorial Schedule Advertising Rates emcmarketing.com 28 InnFocus BCHA Member Benefits Green Key Eco-Rating Program For more than 15 years, the Hotel Association of Canada’s (HAC) flagship program - the Green Key Eco-Rating Program - has been evaluating and certifying properties in North America and beyond on the extent of their sustainable initiatives. The Green Key Eco-Rating Program is a graduated rating system designed to recognize hotels, motels, and resorts that are committed to improving their environmental and fiscal performance. The ratings range from 1 key to the highest rating of 5 keys, and is based on the results of a comprehensive environmental selfassessment. The program reviews the five main operational areas of a property and covers nine areas of sustainable practices. To support their efforts, members are provided with guidance on how to reduce utility consumption, waste emissions, and operating costs. Additionally, assistance is given for employee training, staff and customer enhancement, supply chain management, and community involvement. Upon completion of the program and being awarded a Green Key Rating, an onsite inspection may be conducted to confirm the rating. by Louise Thompson Approximately 250 of our hotel members have signed up for this program, with more joining on a regular basis. Companies who wish to register ten or more properties may be eligible for a discount. Email [email protected]. Hospitality Insurance Program (HIP) In partnership with the BC Hotel Association (BCHA), Western Financial Group Insurance Solutions is proud to be the provider of a specialized insurance program (uniquely designed for our members) with risk management services for BCHA members across the province. Western Financial Group Insurance Solutions specializes in helping Canadian associations, buying groups, and independent businesses save money while providing the right level of coverage through specialized group insurance programs. HIP will provide each member with immediate premium savings from a trusted, professional company. Claims are handled with control adjusters and lawyers under Western Financial Group Insurance Solutions’ direction on behalf of the BCHA. A number of natural disasters, like the floods in Alberta, made 2013 a tough year for insurance companies, however, a large number of BCHA members have found the program is competitive and is a great benefit of BCHA membership. In addition to insurance coverage, Western Financial Group Insurance Solutions also offers invaluable tips on how to keep your property risk free throughout the year. HIP is available to all BCHA members in good standing. Visit www.westernfgis.ca/bcha. Telecom - Long Distance Program A large number of our members have replaced their current long distance program with the BCHA Long Distance Plan. The rate is just 3 cents/min for all calls within North America, using your phone, toll-free line, or fax line. There are no contracts, no sign up fees, and you don’t have to change your current long distance provider. Many of our members have taken advantage of great savings by joining the BCHA long distance plan and adding their restaurant, pub, or LRS in addition to their hotel lines. To apply, contact Diane Forch, BCHA Billing & Telecom Customer Service at 1-800-663-3153 ext. 754 or 604-443-4754. InnFocus 29 BC Hospitality Foundation From Delta Sun Peaks Resort in the Interior to the Coast Plaza Hotel & Suites and Coast Coal Harbour Hotel in Vancouver to Westin Bear Mountain Golf Resort & Spa in Victoria, more hotels and inns throughout BC are embracing the cause and extending their support to the BC Hospitality Foundation (BCHF) and its ongoing Tip Out To Help campaign. “We see Tip Out To Help as a wonderful initiative for everyone in our resort to participate and help out those who work in similar roles as us. While you hope that it never happens to anyone, medical emergencies often create financial hardship,” says a spokesman for Delta Sun Peaks Resort, where staffers raised several hundred dollars for Tip Out to Help, the foundation’s annual fundraiser aimed at raising awareness for its work at the staff level. Vancouver Island hoteliers have also shown strong support for the BCHF, with the Westin Bear Mountain Golf Resort & Spa raising a whopping $4,000 for Tip Out to Help. This was also the case at Chateau Victoria on Vancouver Island when various departments challenged each other to see who could raise the most money in its most recent campaign. The Maintenance, Administration, Front Desk, Housekeeping, and Food and Beverage departments took on the challenge. By press time, these generous and dedicated staffers had raised more than $1,000 - money that will go directly to help those in our industry who need it. “I continue to be inspired most by our beneficiaries. It’s incredible to see the difference that we make to them,” describes by Renee Blackstone BCHF board chairman Bing Smith, who spent 24 hours washing dishes at a Vancouver Denny’s Restaurant to raise more than $6,000 for the BCHF. Other Island hotels are doing their bit as well, including Victoria’s Hotel Grand Pacific, which is offering a special industry rate to individuals in hospitality and will donate 5% of these sales to the BCHF. Downtown Victoria’s Magnolia Hotel & Spa is offering a similar rate to hospitality employees. “We hope our friends in the hospitality industry will support them by taking these properties up on their generous offer,” says BCHF executive director Alan Sacks. Meanwhile, long-term supporters of the Foundation, Vancouver’s Coast Coal Harbour Hotel fundraised for the BCHF again in October with a Jelly Bean Count Challenge, pancake & waffle breakfast, and more. They raised more than $900 while their corporate partners, Coast Plaza Hotels and Suites, generated more than $3,200. A new event in Tip Out To Help this past year - called Skills and Spills - drew an enthusiastic crowd of participants, and promises to be bigger and more fun this year as word spreads about the Olympics-style games that had teams cracking eggs, hustling through the coat-check challenge, and racing through a gruelling obstacle course to the finish line. The event raised in excess of $20,000 this past fall. Do you know someone in the hospitality industry that needs help? Call 1-877-6512236 or visit www.bchospitalityfoundation. com to find out how to assist a friend in your industry. Follow the conversation on Facebook and Twitter (@BCHospitality). Renee Blackstone is a freelance journalist who sits on the BCHF Advisory Board. What’s New? by Debbie Minke WorldHost® Training Services, Destination BC’s internationally recognized customer service training program, recently launched their third online course, “Remarkable Service in the Age of Social Media: Frontline Staff”. This course is designed to give frontline service industry workers the knowledge and skills required to provide service that compels customers to endorse, review, and recommend your business on social media channels like TripAdvisor, Yelp, Facebook, and Twitter. Rather than a “how-to” course on social media administration, this course focuses on creating on-location service experiences that shape online reviews, commentary, and reputation. It is the first of three online courses related to service and social media that WorldHost will be releasing over the next year. Visit www.WorldHosttraining.com. Advertisers BCHA (membership) 29 BC Hospitality Foundation 30 Chemistry Consulting 14 Coldstream Commercial Sales BC CONNECT 21 Encore Draperies 19 Haddon Equipment & SalesIFC MJB Law 25 Northwest Stoves 22 30 InnFocus Sealy Canada Shaw Communications Tex-Pro Western Trafco TrustYou Western Financial Group Insurance Solutions 19 IBC 28 26 9 15 Up to 15 Mbps dedicated in-room WiFi* *Translation: “More positive web reviews than you can shake a pillow mint at.” Shaw Business can keep you and your guests connected with: • In-room guest WiFi • Crystal-clear phones • Ultra-fast Internet • Corporate connectivity • Tons of HD channels solutions Learn more about how WiFi impacts your business at www.shaw-business.ca/hospitality