The Oak Bay Beach Hotel
Transcription
The Oak Bay Beach Hotel
BC Hotel Association Summer 2012 PM40026059 PM40026059 The Oak Bay Beach Hotel Online Reputation Management • Hotel Success Hinges on Rates Customer Loyalty Strategies • F&B Trends in Hotels Position your company as a key supplier to the hospitality industry THE PUBLICAN ALBERTA HOSPITALITY INNFOCUS The official publication of the Alliance of Beverage Licensees The official magazine of the Alberta Hotel & Lodging Association The official voice of the BC Hotel Association www.emcmarketing.com PUBLICATIONS Call 1-800-667-0955 today to build your marketshare 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 BCHA Board of Directors Vancouver, Coast & Mountains Region Taj Kassam, Sandman Hotel Group, Vancouver Craig Norris-Jones, Coast Hotels & Resorts, Vancouver Ken Svejkosky, Rosellen Suites at Stanley Park, Vancouver David Wetsch, Ramada Limited Downtown Vancouver, Vancouver Ross Dyck, Sylvia Hotel, Vancouver John Sandor, Sutton Place Hotel Vancouver, Vancouver Mark Herron, Four Seasons Resort Whistler, Whistler Yannick Simovic, Vancouver Airport Marriot, Richmond John Kearns, Sheraton Vancouver Guildford Hotel, Surrey Leonard Wiens, Comfort Inn Chilliwack, Chilliwack Vancouver Island, Victoria, and Gulf Islands Region Earl Wilde, Victoria Regent Waterfront Hotel & Suites, Victoria Reid James, Hotel Grand Pacific, Victoria Kevin Walker, Oak Bay Beach Hotel & Marine Resort, Victoria Ian Powell, Inn at Laurel Point, Victoria Rick Browning, Best Western Plus The Westerly Hotel, Courtenay Jonathan Cross, Hospitality Inn Hotel, Port Alberni Kurt Pyrch, Best Western Cowichan Valley, Duncan Up Front The Oak Bay Beach Hotel, page 16 Thompson Okanagan Region Gavin Parry, Coast Capri Hotel, Kelowna John Douglas, Nancy Greene’s Cahilty Lodge, Sun Peaks Tim Rodgers, Best Western Plus Kamloops Hotel, Kamloops Don Brogan, Walnut Beach Resort, Osoyoos Ingrid Jarrett, Watermark Beach Resort, Osoyoos David Gibbs, Prestige Hotel & Conference Centre Vernon, Vernon Kootenay Rockies Region Don Lutzak, Elkford Motor Inn, Elkford Cariboo Chilcotin Region Pat Corbett, The Hills Health and Guest Ranch, 100 Mile House Summer 2012 Northern BC Region Steve Smith, Crest Hotel, Prince Rupert Al McCreary, Hudson Bay Lodge, Smithers Sam Mangalji, Inn on the Creek, Dawson Creek Doug Andrews, Coast Inn of the North, Prince George Executive Committee President, David Wetsch, Ramada Limited Downtown, Vancouver Past President, Kurt Pyrch, Best Western Cowichan Valley, Duncan Treasurer, Al McCreary, Hudson Bay Lodge, Smithers Vice President, Jonathan Cross, The Hospitality Inn, Port Alberni Vice President, Ingrid Jarrett, Watermark Beach Resort, Osoyoos Vice President, Gavin Parry, Coast Capri Hotel, Kelowna Vice President, Kevin Walker, Oak Bay Beach Hotel & Marine Resort, Victoria Vice President, Earl Wilde, Victoria Regent Waterfront Hotel & Suites, Victoria BCHA Staff James Chase, Chief Executive Officer, Vancouver 604-443-4750 Cailey Murphy, Director, Communications & Business Relations, Vancouver 604-443-4751 Louise Thompson, Member Services Coordinator, Vancouver 604-443-4756 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] Features Columns Hotel Success Hinges on Rates 4 President’s Message 10 Dangers of Discounting Meeting Space 5 CEO’s Report 16 The Oak Bay Beach Hotel 9 Travel Marketing Trends 18 Social Media Tracking & Online Reputation Management 14 Names in the News 22 Customer Loyalty Strategies 21 BCHA Member Benefits 6 26 F&B Trends in Hotels 29 Business Travel is Picking Up 30 Preparing for Canada’s New Polymer Bank Notes 15 From the Front Line 28 BC Hospitality Foundation 28 What’s New? 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 President’s Message by David Wetsch Policy Developments at the Provincial Level It has been a busy spring at the BC Legislature. On February 21, the BC Minister of Finance, Kevin Falcon, delivered the 2012/2013 Budget. Heralded amongst pundits as the most fiscally conservative budget in the country, Minister Falcon’s budget reiterated the government’s commitment to returning to a balanced budget by 2013/2014. Although we can expect continued belt-tightening across industries, this does not mean that there aren’t any opportunities to move our industry forward. As you know, a number of prominent industry leaders have been meeting regularly as representatives of the PDMO Task Force, which is developing a new industry-led and formula-funded Provincial Destination Marketing Organization (PDMO) for BC. The Task Force has been meeting regularly with government and our Provincial Minister of Tourism, Pat Bell, to discuss the best way forward. These efforts have been well received and the PDMO Task Force has now evolved into a PDMO Transition Team, comprised of the Task Force members as well as senior bureaucrats. This team is leading the process for moving the PDMO outside of government. On April 11th, the PDMO Transition Team met with Minister Pat Bell and Deputy Minister Dana Hayden to continue discussions, and they recently reported back that negotiations are moving in a very productive and positive direction. These developments are exciting steps forward for our industry! Working with Deputy Minister Hayden and Assistant Deputy Minister George Farkas, the team has spent significant time and effort developing a range of options for a new PDMO, and comparing and contrasting those options to ascertain a model that will truly meet the needs of our industry. They have compared these against the old Tourism BC model to ensure that we ultimately end up with an entity that is better than existing or previous models. I am pleased to say that they, first and foremost, have been dedicated to the common principles agreed upon by industry stakeholders. 4 InnFocus We understand that Minister Bell and Deputy Minister Hayden have been very supportive of the team’s efforts, and the Transition Team is now working to prepare a presentation on the work to-date for Cabinet. There are many legislative, Treasury Board, and other decision-making cycles that need to be kept in mind as this project rolls out. The Task Force has been clear that accountability (to both industry and government), leading edge governance, and an approach based on strong business practices are all important components moving forward; and they have always advocated that a new organization needs to be led by the very best business minds, with the necessary collective set of skills to take tourism in BC to greater levels of success. I am pleased to say that this advice has been heard loud and clear by Minister Bell, who announced at the Tourism Industry Association’s Leaders’ Summit on April 26th that the government would be working with the Transition Team to appoint the inaugural board of directors for the new entity in the coming weeks. This is a positive development that indicates the government’s very serious intentions to move forward with the new PDMO, working closely with industry. It brings us one step closer to our long anticipated goal of a new industry-led PDMO to work on behalf of tourism in BC. On behalf of the BC Hotel Association, I would like to extend a sincere thank you to our industry colleagues on the PDMO Task Force and Transition Team that have put in countless volunteer hours to advocate on our behalf and represent the views and needs of industry stakeholders. A sincere thank you to David Butler, who chaired the team, and to Kevin Walker, Dan Stefanson, Ingrid Dilschneider, Ingrid Jarrett, Gordon Johnson, Lana Denoni, Christine Stoneman, and James Terry for all of their hard work and dedication to the betterment of our industry. It has been a long road and it is not complete yet. They have our support and gratitude as they continue to press forward. CEO’s Report by James Chase Working Together to Help Our Own As a founding member of the BC Hospitality Foundation (BCHF), the BCHA has been a proud supporter of the work the Foundation does to help individuals in our industry who are in need of assistance during difficult times. The Foundation was inspired by the desire to financially assist longtime wine agent Michael Willingham, who after a successful career in the wine industry suffered a debilitating stroke in February 2005, caused by whiplash from a motor vehicle accident. A group of people quickly banded together in an effort to assist Michael with his costly medical needs to help him reclaim his life. These people were the founding board of what is now the BC Hospitality Foundation. Since that initial effort, the Foundation has grown into an industry-wide charity aimed at providing assistance for individuals who work in hospitality professions in times of critical medical need. A quick visit to the BCHF website profiles the incredible difference the Foundation has made in the lives of so many, with a list of recipients dating back to the Foundation’s inception. The list is lengthy and inspiring. It is pleasing to see that as the profile of the BC Hospitality Foundation develops, the number of applications for support continues to increase, thereby empowering the BCHF to grow and further help a number of our industry colleagues. If your business is fundraising for a colleague or hospitality professional in your community who is facing hardship due to medical circumstances, the Foundation will match up to $5,000 of your fundraising efforts. It’s an easy way to turn $8,000 into $13,000 in order to help a colleague in need. There are also opportunities for individual grants up to $50,000 for qualifying applicants. The BC Hotel Association firmly believes in the importance of the Foundation’s vision of “working together to help our own”, and in the spring of 2009 the BCHA decided to exclusively support the BC Hospitality Foundation as its charity of choice when BCHF included a scholarship component as part of its mandate. The BC Hotel Association believes very strongly in the need to assist young people wanting to join the hospitality profession; as we look ahead, it is critical that we make investments now in our future workforce. Since 2009, the BCHF has awarded nearly 40 scholarships to outstanding students in culinary and hospitality programs at postsecondary institutions across BC. In November 2011, 17 students received scholarships ranging from $1,250 to $1,500, amounting to a $24,500 investment in culinary and tourism students from all over BC. This included, for the first time, four sommelier scholarships provided through a program funded by Okanagan Crush Pad winery, and three culinary scholarships that resulted from a partnership with the Chef’s Table Society of BC. The tradition of supporting our future industry leaders will continue with new award recipients to be announced at the new HOST 2012, tourism and hospitality conference, November 4-6th in Vancouver. I very much look forward to this award ceremony every year, and I hope that you are able to attend to see the amazing potential that the next generation of hospitality and tourism leaders has to offer. For more information about the BCHF, its scholarships, beneficiaries and grant application process, please visit www.bchospitalityfoundation.com. I encourage you to get involved and help spread the word about the good work being done at the BC Hospitality Foundation. InnFocus 5 Hotel Success Hinges on Rates by Jillian McNamee While 2011 may not have been a banner year for hotels in BC, recent trends indicate performance may be looking up. Demand may have been the catalyst to drive performance in previous years, but rates will have to follow in order to continue upward trends. Although hotel performance in BC in 2010 seemed to suggest recovery was finally beginning, the province is still struggling to achieve peak performance. Limited supply growth and steadily increasing demand served to mitigate downward trends in 2010, yet these factors alone were not sufficient in creating positive year-over-year performance. 6 InnFocus BC’s 1,471 hotels* make up 84,530 rooms (43% of which participate in STR’s data reporting programs). Demand hit its peak in 2007, leading to occupancy of 67.5%. Occupancy then experienced a steady decline in 2008 and 2009 but started to recover in 2010. Last year ended with 60.7% occupancy in the province, down 0.3% from 2010. The province is still struggling to achieve peak performance. These combined factors led to low revenue per available room in 2011, down 5.8% from 2010, making the year-end number $82.28, exactly $10 below the 2007 peak. Despite this, 2012 performance for the province should be regarded with cautious optimism. In line with the rest of the country, BC experienced modest February year-to-date increases in occupancy and ADR over last year (4.4% and 1.1%, respectively), leading to a 5.5% RevPAR increase (compared to the overall Canadian increase of 4.6%). Average daily rate in BC experienced modest year-over-year gains throughout 2011, but ended the year at $135.58, down 5.5% from 2010. In fact, 2010 was the peak year for ADR in the province, which can be attributed, at least in part, to Vancouver’s role as host of the 2010 Winter Olympic Games. In January, occupancy was the major driver of positive RevPAR performance, up 6.2% over the previous year, while ADR had no change, remaining at $129. February saw a slight increase in occupancy (3.1%) and ADR went up to $130.77, a 1.6% increase. Interestingly, this growth was not exhibited by the key market of Vancouver in the February year-to-date numbers. While occupancy was up 2.8%, ADR did not follow (-1.2%) and RevPAR increased only 1.5%. Our capital city Victoria ended 2011 more positively than the province as a whole, with occupancy up 1.3% and RevPAR unchanged from the previous year. However, Victoria experienced significant declines in all three February year-to-date performance metrics. Occupancy was down 6.8% to 45.1%, ADR went down 4.5% to $94.69 and RevPAR suffered a staggering 11% decrease to $42.70. On a positive note, limited incoming supply should continue to benefit the province as a whole. As of February, there are only five projects under construction in BC, representing 586 rooms. If occupancy continues its growth, this relatively small number of projects in the pipeline might serve to bolster pricing power. *STR defines “hotel” as a property with ten or more rooms. Editor’s note: All currency figures in this article are in Canadian dollars. Jillian McNamee is Business Development Executive, Northeastern US and Canada, at STR. She can be reached at 615.824.8664 ext. 3313. InnFocus 7 Travel Marketing Trends by Christopher Chong It’s a Mad, Mad Mobile World How often do you stop to think about your mobile device? Yes, it is smaller, faster and exponentially smarter than the cell phones we started using in the mid-80s. We have simply adapted and carry on without stopping to think about the implications of these changes. However, if there is one technological advance that is going to change how we do business, it is mobile devices. in almost every segment from luxury to extended stay want WiFi service as the top amenity over free breakfast or bedding choices. Yet, the same survey showed that only one of the segments offered WiFi as an amenity to guests, highlighting the disparity between what consumers want and what hoteliers provide. Also note that free WiFi is great, but when it is painfully slow, frustration levels are just as high as $20 a day usage fees. Analysts have been predicting that mobile devices will become the primary access point to the Internet. The projections initially stated that the tipping point would be reached in 2016, then changed it to 2015, and now predict it will happen sometime between 2013 and 2014. If this is the case, we better start re-thinking our digital strategies, or we are going to miss the mark. If you don’t have a solid mobile strategy for your organization, stop working on social media feeds and think mobile. After all, the growth of Facebook and Twitter would not have been as dramatic if it wasn’t for mobile. The issue is compounded as many consumers now carry multiple devices that strain an already limited resource within the property. A laptop, tablet, and a smart phone are likely accompanying our guests, doing different tasks at the same time. There are approximately 28 million mobile subscribers in Canada. Compared to the 6 billion mobile users worldwide, we are on par at just over 80% of the population. However, we lag in the area of broadband mobile compared to technically savvy societies such as Japan and Korea, where 90% of their citizens have 3G or faster service. This gap has more to do with how carriers in Canada charge and how the CRTC regulates the tariffs, but that is a story we can save for another day. The point is that with increasing competition, access fees will come down and more Canadians will have broadband on their devices. Why is mobile so exciting? Because, almost every one of our customers has one in their pocket, purse, backpack, or briefcase that is most likely turned on. It’s the first and last thing people check when they wake up or go to bed. In fact, people have such a hard time parting company with their devices that 56% of people admit to using them in the bathroom! Whether it’s a great mobile site or useful apps, consumers can communicate and create relationships with you at anytime and anywhere. The tremendous opportunity to engage consumers using their mobile devices to research, book, and share their experiences is easily within our reach. But here is the catch. Mobile presents a problem when those guests are under your roof. A recent TripAdvisor survey showed that 88% of users expected WiFi service to be free. JD Powers also confirms that consumers We can’t expect consumers to understand the challenges that are created by the growing demand for fast, cheap (if not free) WiFi access in hotels. The fact is, most hotels weren’t designed with this need in mind, and many are tied into service contracts. To add to the dilemma, traditional revenue streams such as in-room movies and telephone calls are decreasing, thanks to services such as NetFlix and Skype. Mobile will become a de facto for business to stay in the game. It may not look like it right at this moment, but the wave is just above the horizon and moving fast. If you are not ready, this is a good time to gather your team around the table and start developing your strategies. A mobile strategy should be designed not just with your guests in mind, but also your staff. How could they use mobile technology to serve guests better and be more effective? What should guests be able to do before, during, and after their stay? These decisions must be made sooner than later. Connectivity challenges also need to be solved. It could be providing free WiFi zones, a tiered service that offers a premium option with faster speeds, or just getting out of an existing vendor contract. Ultimately, your mobile success depends on the dialogue with your customers and staff and choosing the right strategy. Start today. Christopher Chong is an executive with over 25 years of experience in media, technology, and web marketing for public and private companies including Chalk Media, Blast Radius and VRX Studios. InnFocus 9 Dangers of Discounting Meeting Space by John Kearns Meeting room occupancies - and consequently revenues from space rentals, food and beverage, and event resource spend - have dropped considerably since the recession of 2008. An oversupply of meeting space in Greater Vancouver is most definitely a contributing factor. In 2008, the hotel, conference centre, and convention centre supply level was 850,000 sq. ft. The additions to supply since January 2008 provided an additional 466,000 sq. ft., bringing the total at the end of 2011 to 1,316,000 sq. ft. This represents a 35% increase in the supply of meeting room space inventory in this region. (This number excludes the Olympic Oval Complex, and it’s repurposing further ramps up the available exhibit space. 10 InnFocus Through Vancouver’s abundant citywide convention business in the months of May and September of 2011, we experienced peak guestroom and meeting space demand. Although the city attained 2010 Olympic year levels of occupancy, the remaining months of 2011 saw prevalent discounting in guestrooms and meeting space. According to the 2012 forecasted Tourism Vancouver convention schedule, the market will experience a 40% decline in delegate room nights. Canada-wide, group association and SMERFE market is experiencing a steady decline in US-sourced business, as evidenced in the 2012, 2013 citywide bookings in the main Canadian convention markets of Toronto, Montreal, and Vancouver. These three key Canadian cities are simultaneously experiencing a first time phenomena with year-over-year steep declines in the number of citywide conventions. The “buy American” trend in the US is resulting in strong increases in US domestic meetings, particularly in the association market, while a significant decline in group government meeting business has been felt throughout North America. The Recession has reduced the demand for group guestrooms as well as demand for meeting space. With the excess supply situation now manifesting itself in 2012 and on into 2013 and 2014, the consequence will be a bleak picture. Hotels need to reconsider the effects of meeting space discounting, which may further damage hotels’ profitability. Discounting in its purest form fails to recognize that function space is perishable inventory. Consider Your Selling Model The traditional selling model for a hotel is to withhold the availability of meeting space from the day meeting market until 30 days out from inventory expiry, in anticipation of the sales team booking block group guestrooms with conference or meeting space requirements. The revenue management model needs to change. A number of hotel groups are using discounts in the application of progressive revenue management practices to function space. On occasion, these have been integrated with guestroom yield. In other cases, a “space yielder” may be charged with meeting space revenue management. The key with space is to measure the occupancy of event space and revenue performance of each room, gather information on different segments’ booking patterns, and use this information to determine the correct pricing and appropriate yield fences. When a hotel receives a third party RFP it is more important than ever to ensure that the past year’s performance is examined for delegate attendance and guestroom night production. I have spoken to a number of hoteliers who aggressively offered 50% plus discounts on signature meeting space, only to discover later that the guestroom component did not materialize within the booking window. The attrition clause did not kick in as the guestroom performance level was set at 80%. The hotel then changed the meeting room to a more appropriate size for a smaller group. It was then difficult to resell the largest ballroom space within 30 days, so the decision was made to still accept a reduced room block and the hotel was deprived of per person charge revenue and incremental spend. When hotels follow this scenario, it reinforces guests’ behaviour in waiting to book until the hotel demands have dropped. InnFocus 11 Smaller Meetings are the Trend Discounting group meeting space to build guestroom or meeting room occupancy may similarly result in under yielding. The market has shifted to small groups of 1-30 and 30-100 that are booking space with very short lead times, so careful attention must be paid to finalization of group numbers at time of booking versus allowing the meeting space and guestrooms to flex up or down. Guarantees will assist in reducing this guest attrition. Given the trend of booking meetings with a smaller number of attendees, managers need to determine if a function does not use all of the available allocated space that the excess capacity does not go to waste. A solution would be to divide the space into smaller rooms. Hotels with limited availability to configure space with soundproof floating walls or room partitions should analyze their turndown information to determine if they could profit from the investment. Flat Discounts Flat discounts are often applied by catering sellers managing meeting room space who do not understand market segment customer demand based on time of year, week vs. weekends, day of week, and time of day. While revenue management is connected with providing discounts, management needs to consider more than just slow-season specials, and develop methods for offering differential prices meeting the demand level at a given time. Instead of offering a discount, offer a two-tier pricing structure. If two prices are offered, revenue will increase because some of 12 InnFocus the price-sensitive clients will purchase at a lower price, leaving the more desirable dates and times available to those who are less price-driven. Shift Demand from Peak to Need Periods Broad scale discounting is a serious pitfall because price is only one of the means that customers use to assess the experience or perceived value of a service. An approach that we use is to forecast daily demand of Revenue Available per Square Foot (REVPASF) for each function space and designate the day as “Peak” - extremely busy, “Shoulder” - busy, or “Need” - slow. We then focus on Peak to increase REVPASF through offering higher prices and Need by placing efforts on increasing the number of customers through a price inducement. By having fences, demand can be shifted from Peak to Need periods and targeted to schedule high margin business at the busiest times. Consider creating a demand management program. I have observed that event managers offer similar room rental, food and beverage, and resources regardless of the meeting planner demand characteristics. The question for hoteliers is, “Can you implement a type of systematic pricing differential for Peak times and Need times, thereby creating a demand management framework?” The Value of Meeting Space Discounting in its purest form fails to recognize that function space is perishable inventory, and compromises the seller’s measurement of efficiency, which should be based on REVPASF. Function space must generate sufficient revenue to cover variable costs and offset a degree of fixed overhead. Meeting space sellers need to develop an understanding that meeting room rental has a flow through contribution of about 80% vs. food and beverage service based events, which generate a contribution margin of about 30%. For example, weddings typically consume food and beverage services but usually require fewer guestrooms than a high contribution business convention. The practice of offering free meeting room rental to this social segment needs to be examined in light of the desired contribution margin and time sensitivity of the date the event is hosted. Discounts are often provided to clients visiting the property to inquire and plan an event in order to incentivize the sale. In reality, preferential rates should be offered depending on the booking channel. A customer who books through an event booking centre is costing the hotel less in terms of selling time than the client attending the property. The Impact of Meetings There is a current demand in the marketplace for ROI-based determinations on the impact of meetings. Often the measurement applied is the discounted price of the meeting versus other more tangible and available yardsticks. Corporations are viewing the virtual meetings piece as time saving, cost constraining, and therefore more productive. The need to create sufficient value in a meeting to justify having it occur is more appropriately achieved by partnering with metrics companies that specialize in pre-post strategic measurement to measure content retention and supplemental education opportunities, rather than to offer a steady diet of discounts. Meeting Professionals International (MPI) believes the current conditions in the rapidly changing North American business, economic, social, and technological environment provides many new opportunities and challenges for hotel and meeting space owners, and affects how meetings are planned, perceived and executed. The long-term impact of discounting, and how a hotel will return a value to its shareholders, is of concern as meetings become increasingly more strategic in nature with clients demanding higher quality. For hoteliers, the quality and overall meeting experience will become a trademark, and trained and experienced meeting professionals will become a competitive advantage providing a distinct selling proposition in setting these operators apart from others in the industry. John Kearns, CHA,CHE, CMP is the Chief Experience Officer for the Sheraton Vancouver Guildford Hotel and instructs in the Hospitality Degree - Bachelor of Hospitality Management program at Vancouver Community College. InnFocus 13 Names in the News Welcome to the following new BCHA members: Chalet Europe, Radium Hot Springs; Times Square Suites Hotel, Vancouver; Northwinds Lodge, Dawson Creek; and Merritt Travelodge, Merritt. New BCHA associates include Atel Solutions, Richmond; MGC Construction, Kelowna; Restonic Canada , Surrey; Western Safety Surfacing , Summerland; and WorldHost® Training Services, Victoria. Congratulations to the new general managers at the following properties: Suzanne Allemeier , Residence Inn by Marriott Vancouver Downtown; Bernd Bohl , Huntingdon Hotel & Suites, Victoria; Tanis Clark , Anco Motel, Courtenay; Deejay Dhillon , Best Western Maple Ridge (previously the Travelodge Maple Ridge); Joe Dias, Metropolitan Hotel Vancouver; Barbara Hicks, Hotel Le Soleil, Vancouver; Scott Hoadley, Best Western Plus Emerald Isle, Sidney; Michelle Le Sage, Oak Bay Beach Hotel, Victoria; Rob Lindskog , Fireside Inn, Castlegar; David Rooper, Best Western Plus The Westerly Hotel & Convention Centre, Courtenay; Navid Sariolghalam, The Sutton Place Hotel, Vancouver; Roger Soane, Nita Lake Lodge, Whistler; and Kris Szylowski, Holiday Inn & Suites Vancouver Downtown. 14 InnFocus by Debbie Minke The Travelodge - Vernon is now the Journey Inn. The Coast Prince Rupert Hotel is now the Prince Rupert Hotel. Dean & Julie Johnson, of the Howard Johnson Hotel - Port Alberni were named General Manager(s) of the Year. Hank Stackhouse has been elected as the new Chair of the Hotel Association of Canada’s Board of Directors. Hank is an accomplished industry veteran with 30 years of experience in the Canadian hospitality industry. As the recently retired President and Chief Executive Officer of Delta Hotels and Resorts, he led a team of over 8,000 colleagues and oversaw a portfolio of 46 hotels and resorts with more than 13,000 guestrooms across Canada. Hero Parikh, owner and operator of the Knights Inn Merritt, was awarded General Manager of the Year by Knights Inn Canada. The Knights Inn, Barriere received a Quality Assurance “Excellence” award. Six new corporate board members have also been elected to serve as HAC corporate officers. They include: Robert Pratt , President, Coast Hotels & Resorts; Nora Duke, President & CEO, Fortis Properties; Irwin Prince, President & COO, Realstar Hospitality; Philippe Gadbois , Senior VP Sales & Marketing, Atlific Hotels & Resorts; Satinder Dhillon, Vice President Operations, Westmount Hospitality Group; and Vito Curalli, Managing Director of Sales Canada, Latin America & International Sales, Hilton Worldwide. Howard Johnson Canada announced their top performers of 2011. Howard Johnson North Burnaby’s Boutique Hotel captured two awards - Property of the Year and Best Overall Customer Satisfaction, while Congratulations to the Pemberton Valley Lodge, which recently won the Best Green Business award at the 2012 Small Business BC’s Successful You Awards. The lodge recycles its used soap through the Clean the World program, and has greatly reduced its water and energy consumption. Pomeroy Lodging has added a number of new properties to its Western Canada portfolio, including the Stonebridge Hotel in Fort St. John, which is a full service hotel with 127 newly renovated rooms, including kitchenettes, executive suites, high-speed Internet, 42” flat panel HDTVs in every room, and other amenities. Executive Hotels Resorts has taken over ownership and management of the Mountainside Lodge in Whistler. This property features the internationally acclaimed Italian restaurant Trattoria. If you have any noteworthy community contributions, please email Debbie Minke at debbie@ emcmarketing.com. From the Front Line by Donna Horn Creating a Service Culture The customer service experienced by your guests is a key influencer on the success of your property. Operationally, what strategies can you implement to support a level of service that is impactful, authentic, and self-sustaining? Tigh-Na-Mara Seaside Spa Resort & Conference Centre, a licensed WorldHost® property, has created an award-winning formula for exceptional customer service, and it all begins with staff empowerment. At Tigh-Na-Mara, stories such as the following are commonplace: • A bride whose dress tragically rips moments before her wedding ceremony begins is saved by a member of the staff who immediately finds a needle and thread and sews her into her dress. • A couple with a newborn baby has forgotten to reserve a crib for a busy weekend and none are available. A staff member with her own eight-month old child calls her husband who delivers their own crib to the resort for the guests’ use. • A guest forced to cancel her dinner reservation due to an upset stomach finds Gravol and ginger ale delivered to her room after the staff member who took the cancellation finished her shift. • A local business owner, who enjoys his custom (not on the menu) lunch two to three times a week, unknowingly has an influence on the planning of upcoming wine list changes, adjusted to ensure his favourite wine continues to be available. The service philosophy of this Vancouver Island-based resort is so integrated into its daily practices that guests experience the highest standard of service with every employee interaction. What does TighNa-Mara’s management team do operationally to create their culture of service? We recently interviewed Laurie Sagle, Director of Human Resources at Tigh-Na-Mara, to learn the secrets to their success. Direct Communication from the Front-line to the Top At Tigh-Na-Mara, monthly face-to-face meetings known as “Rap Sessions” are a key communication link between the GM and frontline employees. Sessions are booked into the GM’s schedule a year in advance and given such a high priority that they are rarely rescheduled. Six to eight employees attend each session, with a rep from each large department and rotating representation from smaller departments. Prior to each session, the GM and Laurie sit down and develop a couple of questions to get the conversation started, such as “What went well for your department this month?”, “What would you have done differently?”, “What tools would make you more effective?”, or “What have you heard from guests?”. The sessions provide an open forum for employees to ask questions, make comments, and raise concerns. Topics range from business projections over the next few months to guest comments received, equipment purchases or feedback on recent events. In his responses, the GM shares the thinking behind many of the operational decisions made at the resort. Each session runs for about an hour and communicates to front-line staff that management is approachable, interested in their ideas, and committed to the culture of caring about guests’ experiences. Minutes that summarize topics and responses are posted after each meeting on the resort’s communication boards for all employees to read. The Care Committee is another direct link at Tigh-Na-Mara for staff to provide input on business decisions. The committee is made up of seven volunteers representing each department in the resort. When a business decision needs to be made about something that affects employees, Laurie puts together a set of survey questions that committee members then use to interview the other members of their business area and collect feedback in a written summary form. Committee members have one month to collect responses and then meet to discuss them. The input received influences decisions on topics including staff benefit plans, recognition programs, and events. Committee members serve for at least one year and collect feedback and input on seven or eight topics a year. Make Staff Recognition a Priority, Not an After-thought The Sea Star Program at Tigh-Na-Mara provides an opportunity to recognize outstanding customer service. Employees can nominate their fellow colleagues using a written form and the nominations must be approved by a supervisor or team lead. Sea Star nominations are posted on staff communication boards for everyone to see. Sea Star recipients (from 40 to 120 in any given month) are acknowledged at monthly recognition receptions along with team members achieving long service milestones and service anniversaries. At each reception, 25 to 30 gifts are awarded and several service stories are shared. Sea Star recipients also accumulate bonus points to be used towards recognition gifts, such as dinner or entertainment certificates. The emphasis on recognizing staff supports the focus on customer service that permeates the resort. Let’s sum up Tigh-Na-Mara’s formula: value your people. Fostering a culture where your employees feel valued and recognized for the work that they do generates amazing results in customer service, and positions your property for success. Donna Horn works with WorldHost® Training Services www.WorldHosttraining.com. Next Issue Fall 2012 • • • • Working with your DMOs Online Travel Trends Attracting GenY Guests Budgeting Best Practices Call 1-800-667-0955 to book your ad by July 27 InnFocus 15 The Oak Bay Beach Hotel A Five-Star Celebration of Memories and 21st-Century Hospitality by Chris McBeath The renaissance of the new Oak Bay Beach Hotel has been one of the most anticipated comebacks in Victoria. For owners Kevin and Shawna Walker, it is a hard-earned reward for dreaming big, and navigating many near-death challenges - including recessionary times, re-zoning complications, and community tensions. Realizing the Story “Having just purchased the hotel from Kevin’s dad in 1996, the BC seismic laws changed. Not only were we suddenly faced with an outlay of $14 million for structural upgrades, we also realized that the building, which was over 80 years old, needed much more to take us into the future,” explains Shawna. “Closing the hotel became our only option.” Its demise, however, caused such local controversy, that whether the Walkers were to develop a new hotel or a condominium complex, their success depended on 16 InnFocus community support. “Staying the course through the collaborative, public process was not without its heartaches, not least of which was operating a ‘dying’ hotel for four years,” she admits. “In the end, though, we’ve ended up with a better hotel, and have appreciated some very special relationships along the way.” Kevin continues, “We kept wondering what it was about the building that evoked such emotion. But when comments like: ‘the memories are in the bricks’ kept ricocheting off the walls, we realized that the hotel had too many stories for us to raze it to the ground.” Adapt, Reuse, Recycle From that moment on, “demolition” was reframed as “deconstruction”. “Adaptive reuse is a conservation principle used in many heritage restorations, and it changed the whole context,” Kevin explains. “We were no longer destroying anything, we were dismantling the hotel beam by beam, so that we could give it new life in a very sustainable and sophisticated way. The approach was pivotal in securing full public support. “Taking this route probably added $3 million to our overall costs,” Kevin notes. “While demolition would have taken about 10 days, deconstruction took nearer to six months. We had to plan which elements were to be reused, and every piece had to be numbered, stored, and refurbished during the construction period.” Family Matters The stories of the Oak Bay Beach Hotel reside also with the Walker family itself. “When we were younger, we both worked at the hotel - Kevin for his dad and me as a tea waitress - and it’s always been a part of our married life,” comments Shawna. “As we see our kids getting ready to take the helm, we are so proud to see how family values and hospitality have translated into the art of pure hoteling through four generations. Now, with the new property, we’re deepening that intrinsic value into ‘intentional hospitality’.” Named after the Walker’s daughter, Kate’s Café incorporates many refurbished features: 2,500 bricks (each cleaned by hand), wood beams, leaded windows, and the former hotel’s front door. For both Kevin and Shawna, tourism is a passion that fuels their industry involvement. Kevin is past Chairman of the Boards of the Hotel Association of Canada, and the Council of Tourism Associations of BC as well the BC Hotel Association, and is the recipient of many awards including Hotelier of the Year, Tourism Industry Leader of the Year, and Tourism Victoria’s Miracle Award. Also recognized as a tourism leader, Shawna is Chair for the Oak Bay Tourism Marketing consortium, and her expertise is evident in her development of eco-tourism based adventure products, and more recently, the Discovery Club Luxury Destinations. Vision to Everyday Reality With 25 years in the hotel industry on Vancouver Island, and a 1920 character home in Oak Bay itself, Michelle Le Sage was recently appointed general manager, and feels she has come home in more ways than one. “Our concepts of hospitality are so aligned that when I joined the OBH team in February, I was able to hit the ground running,” describes Michelle. “We’ve even gone through our first renovation,” she jokes. “Initial choices were done five years ago, so we had to revisit every fabric, floor covering, and piece of cutlery, all of which we selected according to one key criteria: what was going to deliver the best guest experience.” Intentional Hospitality The process also integrated into what the OBH team refers to as ‘intentional hospitality’, an empowering service ethic where beyond-the-call-of-duty is the norm. Michelle explains, “If a staff member hears a guest remark about the beautiful flowers in the garden, we expect them to take the initiative, perhaps to cut a few flowers and have them placed in that guest’s room. We want our staff to embody a five-star service attitude as a part of who they are.” Kevin and Shawna Walker A 10-year relationship with the David Foster Foundation underscores the Walkers’ commitment to give back to the community they serve. Tangible Memories While the new hotel is clearly equipped for the 21st century, guests will discover memory touchstones throughout the property. Not only has the iconic Snug Pub been recreated, but hotel artifacts and pictures - from the original lead windows to refurbished hardware and antique furnishings - have become integral design elements inside and out. “We never expected to be a development company, and although we might look for other opportunities in the future, we are hoteliers at heart”, Kevin emphasizes. “And right now, we have memories to share and a new story to begin.” InnFocus 17 Social Media Tracking & Online Reputation Management by Teresa Soriano-Villaruz Conversations about your brand are happening online whether you like it or not. The question is, are you listening and joining in the conversation? With that in mind, this article focuses on the importance of online reputation management and how social media can help improve your hotel’s online branding. What Is Online Reputation Management, and Why Is It So Important? Online Reputation Management (ORM) is the act of monitoring online conversations about your brand and executing online strategies to highlight positive, quality content while suppressing damaging content from the consumers’ view. In today’s social web, consumers who used to share product information and service experiences during coffee breaks or backyard get-togethers now turn to online channels to share their thoughts and product ratings. Furthermore, search engines now 18 InnFocus consider social channels and conversations in their results listings. If a traveller performs online research on your hotel and finds that the majority of online results are negative in nature, the likelihood of this traveller booking a room at your hotel is slim to none. This is why online reputation management should be a critical part of a hotel’s revenue management/sales and marketing strategy. There are three ongoing steps to online reputation management: 1. Monitor. According to research by the Opinion Research Corporation (ORC), 80% of travellers perform research prior to booking, while 84% of Americans say that their buying decisions are highly influenced by online reviews. Therefore, as more travellers perform diligent research prior to booking a room, it is important that GMs and hotel owners know exactly what information consumers can find online about their hotel. Ignoring online social activity and hotel mentions, or responding inappropriately, can have a negative effect on the hotel’s branding, which can then be detrimental to its overall revenue. This is especially true if negative reviews dominate the search engine results. There is, however, an upside to this. Traditionally, happy clients are the best source of new/ referral business and online forums are the new and more powerful word-of-mouth, which leads to the second step in online reputation management: listen and learn. 2. Listen and Learn. In today’s world, consumer reviews come in through a variety of different websites, blogs, and social media channels. In a sense, the Internet is the modern day comment card. So it’s important for hoteliers to be proactive in listening and understanding what people are saying and sharing in various online channels. Monitoring what guests say about the hotel allows the GM or owner to understand why the hotel’s online reputation is as it is. Are most reviews positive or negative? What are the issues that guests mention? What are the keywords that they use to describe the hotel? By asking these simple questions, hoteliers can learn what their target consumers are looking for, and the hotel staff can then define steps on how to improve their services. Narrow down your target market, identify the social media venues that they are frequenting, and make sure that your hotel has a presence in these channels. 3. Manage and Engage. First things first - don’t ignore guest reviews, especially negative ones. Instead, consider the following steps: • Start by thanking the guest for their comments; • Provide an explanation for her experience (whether good or bad); • Provide a list of actions the hotel will be performing or has taken to improve guest experience; • Provide direct contact information to personalize the response; and • Share guest reviews with hotel staff and assign tasks to improve services. By looking at bad reviews in a positive light, hoteliers can pinpoint problems and improve services. By acknowledging the reviewer, showing that management is listening and assuring their concerns are heard, an angry guest can be converted into a loyal customer. InnFocus 19 How Can Social Media Help Improve Your Hotel’s Online Reputation? Social media gives hotels the opportunity to reach out to their tech-savvy customers online. The Internet is full of websites that provide tools and applications to make smart purchasing decisions, and travel consumers perform diligent research prior to booking. Below are several ways hotels can use social media to improve their marketing strategies and manage their online branding: 1. Brand Building. Social media channels offer a way for hotels to create brand awareness. Narrow down your target market, identify the social media venues that they are frequenting, and make sure that your hotel has a presence in these channels. 2. Modern Day Comment Card. Online review channels, such as TripAdvisor and Yelp, are today’s modern day comment card for hotels. Travellers are now more vocal than ever when sharing their travel experience. Brands can get valuable feedback about their properties by examining the top hotel review sites. 3. Build and Improve Customer Relationships. Listening to what your guests think about your hotel can help you improve your services by understanding their issues or finding out what they like most about your property. The next step is connecting with them directly and informing them that their concerns are being taken care of. This action can turn a disgruntled guest into a satisfied and loyal customer. 4. Using Social Channels as Real-Time Customer Support. Social networking channels, such as Twitter and Facebook, allow for hotels to provide real-time customer support for their guests. 5. Creating Brand Ambassadors. There’s no better brand ambassadors than happy and satisfied guests. Ask cheerful guests to leave favourable comments on review channels and share what they like about your hotel with their online friends. 6. Position the Hotel as the Local Expert. Frequently sharing upcoming events, local attractions, and things to do in your local market can help position your hotel as the expert in your market and the go-to profile for travellers looking to visit your area. Integrating social sharing buttons such as Facebook’s “like” and Google’s “+1” on your website and blog makes it easier for your guests to share your information with their social circles. 7. Saturate Universal Search. Search engines place importance on social media and reviews as ranking factors in search. Having welloptimized social media profiles and sharing quality and relevant content can help your hotel saturate search results. 8. Drive Revenue. There’s a direct correlation between guest reviews and revenue performance. Good hotel reviews will influence travellers to book rooms at your hotel, while bad reviews will push them to your competitors. We suggest hoteliers encourage happy guests to leave more reviews on different online channels. Social media and online reputation management should be part of a hotel’s revenue management/sales and marketing strategy. Spending the time to review these channels can help hoteliers understand consumer behaviour, learn about their guests’ experiences, and spot customer trends. By doing so, hoteliers can then make the necessary steps to improve their services. In addition, hoteliers can also allocate marketing efforts on these channels to help improve customer relationships and overall consumer perception of the hotel, which can drive reservations and increase revenue. Teresa Soriano-Villaruz is a Senior Marketing Specialist at Milestone Internet Marketing. Milestone Internet Marketing is a Silicon Valley-based digital media company focused on lodging and drives over $550 million in revenue per year for over 1000 hotels and resorts. 20 InnFocus BCHA Member Benefits by Louise Thompson Cost Plus Processing Earlier this year, we announced our new credit card merchant discount program through FastWater Payments, in partnership with their global payment processors. This program has seen a lot of initial interest from our members wishing to cut their credit card processing costs, given this program’s potential to drive significant savings to our members. Initial analysis indicates that savings can range up to $12,000 a year and beyond. The new Cost Plus Program already has a great track record of providing considerable savings to our members. Tim Rodgers of the Best Western Plus Kamloops is savings thousands of dollars this year after making the switch. “I was an early adopter of the Cost Plus Program and am very pleased with the savings we have since incurred,” Rodgers commented. This exclusive payment processing program was created by BCHA and FastWater Payments in response to the concerns shared by industry representatives about the need for a better payment processing option, one that meets the needs of merchants, and importantly, that is a simple and effective solution for reducing processing costs. This program differs from other credit card merchant programs for a host of reasons, including: • It has the unique benefit of applying cost reduction strategies to both qualified and non-qualified transactions. • The rates offered by FastWater are guaranteed and locked in for the full term of the contract. • The program has a solution for each property’s individual needs. There are options for fully PMS integrated, stand-alone and wireless solutions. • Participation in this program supports the BC Hospitality Foundation (BCHF). The BCHF is the BC Hotel Association’s charity of choice and plays an integral role in supporting our industry. We are proud to offer a program that directly contributes to the BCHF’s important efforts. This is truly a program that puts the needs of the hotel industry first. “The tailored service and support to the BC Hospitality Foundation were key in our decision-making process,” said Ross Dyck of the Sylvia Hotel in Vancouver. “The credit card processing industry is highly competitive and this company’s commitment to our industry and working on behalf of hotels is what really set this program apart from the rest.” For more information on the many value-added programs offered by the BC Hotel Association, please contact Louise Thompson at 604-443-4756 or 1-800-663-3151 ext. 756. InnFocus 21 Courtesy of Sun Peaks Lodge Customer Loyalty Strategies by Louise Hudson Prospecting for new customers costs between five and seven times more than maintaining your current clientele. With this in mind, savvy hoteliers everywhere have to invent ingenious strategies to keep their customers loyal to their brand or destination. One of the ways hotels and businesses strive to impress their customers these days is with rewards and loyalty programs that offer discounts and upgrades both at their own establishments, and sometimes at neighbouring businesses. Such programs double up as valuable market research engines, as guests usually have to give personal information in order to qualify for the reward cards. Wooing and Wowing Repeaters Fairmont Hotels & Resorts is known all over the world for its luxurious properties in spectacular settings. So, with guests already awed by the architecture and the environment, how does Fairmont go the extra mile to keep its clients coming back? One method is to get the guests to think of Fairmont as a club in which they can become honoured members. Jenny Dunbar, Regional Director, Public Relations, Mountain Region, says the Fairmont President’s Club is “a recognition program designed with individual travel preferences, passions, and interests in mind.” 22 InnFocus Members’ benefits start on arrival at a Fairmont property with a special private reception desk offering express check-in and check-out. The free membership also includes free high-speed Internet and local phone calls, Fairmont Fit, the complimentary use of golf clubs, and retail and spa discounts. Anxious to harness social media networking, Fairmont has also launched a website-based “Everyone’s an Original” program. This is a platform for guests to share their experiences through social media options such as Facebook and Twitter. This forum also contains contests and special promotions for members. Rewards Program It’s not just the big hotels that can afford to offer loyalty programs, a few smaller BC properties are getting in on the act as well. The Inn at Laurel Point is a locally-owned and operated hotel in downtown Victoria that has emulated the larger hotel chains in pioneering a loyalty program. Members of the aptlynamed “Innsiders” program get early checkin, late check-out, room selection, choice of delivered newspapers, penalty-free same-day 5:00 pm cancellation, storage of personal belongings between visits, and rewards based on number of stays. It’s a free service available to any guest. The hotel started the scheme a year ago and, according to Avril Matthews, Director of Sales & Marketing, it has been “wildly successful”. “We have over 1,000 guests registered in just one year,” she notes. The hotel uses the data it compiles from the registrations to help customize guest experiences. “The best part is that guests have to book direct in order to collect points in the program,” explains Matthews. The company works hard at staying connected with their clientele, using social media such as Facebook, Twitter, newsletters, and blogging Courtesy of Accent Inns to full advantage. Although it is usually the larger hotel chains that utilize loyalty programs, Matthews shares that management felt that the scheme was a natural progression for the property in recognizing their repeat customers. Creature Comforts Accent Inns has upped the service stakes with a pet loyalty program as well as its human one. The unique pet program has attracted national media coverage and Business Development Manager, John Espley says it InnFocus 23 has also positively impacted bookings. “Both in word-of-mouth and bookings, the program has matched our expectations or even gone a bit further. Any value-add you can offer a guest is appreciated by them, but I believe even more so when you pay attention to their pets,” he describes. “Pets are like children for a lot of people; they are indeed their best friends, so recognizing their pet really means a lot.” Pets get five nights for the price of four - and they don’t have to be consecutive. Since launching the program in March 2011, the family-owned and operated BC chain has offered designated pet rooms in its Vancouver Airport, Victoria, Burnaby, Kelowna, and Kamloops hotels. A dollar of every pet fee is donated to the BC SPCA and dog treats, pickup bags, and towels are also provided as well as green space for dog walking. Taking care of and remembering your repeat customers… must go beyond just the computer telling you they’ve stayed before. The pet program was a natural progression from Accent Inns’ pet-friendly policy. “We’ve done really well with our pet-friendly program in general, have partnered with the BC SPCA and thought ‘What else can we do?’” explains Espley. “The owners and staff are really pet lovers here so it’s easy to give our four legged friends the focus they deserve.” When pet owners use their rewards cards, the information is tracked to keep count of pet nights booked and redemption rates. Around 25% of pet owner guests have joined the scheme so far, and Espley says thousands of pet room nights are recorded each year, with numbers growing. Frequent guests (with or without pets) can pick up a free Frequent Guest Card, which offers a gift after 8 nights and a night on the house after 14 nights. Espley, who has worked at Accent Inns for nearly 24 years, has come to know repeat customers who have been loyal for 15 years and more. “Customer loyalty is hard to earn these days, but when you do [have it] it’s the Holy Grail,” he notes. “Taking care of and remembering your repeat customers means so much to them, but it must go beyond just the computer telling you they’ve stayed before.” With Accent Inn’s reputation and success built on repeat business, Espley says it is vital to interact with and really get to know the customers. “Many will request their favourite staff member when they call to reserve a room.” Referral Rewards The best service is a combination of thoughtful observation, personal attention, and savvy marketing whereby the guest feels like a cherished friend or family member rather than a paying customer. Although it is places that attract us, it is often people who inspire us to keep coming back. Silvia and Mario Erler recognize this, running the Sun Peaks Lodge & Steakhouse with a very personal touch. They befriend their customers in the hope of creating repeat business. “The Sun Peaks Lodge is one of the smaller hotels in Sun Peaks,” describes Silvia. “We have the advantage of getting to know our guest quickly.” All guests meet the managers as well as front-line staff as soon as they step into the hotel. “We help them park their car, and offer assistance with luggage, information about the village, tips on best restaurants, runs, and so on. We like to call it personal service,” explains Silvia. Loyal customers are rewarded with free upgrades and bottles of wine in their rooms. Guests who make referrals are rewarded with a $50 voucher towards their next visit. 24 InnFocus Double Rewards Visitors at the can earn Dialus points with a free card. They earn one point - worth 5 cents - per dollar spent, with no expiry date. By signing up for the Sundial Boutique Hotel’s newsletter, they are notified of opportunities to double their points and earn free nights. Points are redeemable on room rates and tax, and referring a friend earns 500 extra points. Dialus members automatically receive exclusive discount rates when their reservation is booked directly with the Sundial Boutique Hotel. Membership is complimentary after the first stay at the hotel. Jasmine Ashworth, Director of Sales & Marketing for Sundial Management, says the program has been very successful since the hotel opened in 2005. “Over 12% of the Sundial Boutique Hotel’s business is from loyal repeat guests,” she shares. The company collects Dialus comment cards and uses the feedback to improve both product and services. The program has been invaluable in spreading awareness about the boutique hotel. “Repeat business is a key factor in our success as we continue to see this segment grow, and it is a testament to our mission of always ensuring an exceptional, personal, and memorable experience for each guest,” Ashworth explains. Loyalty Budget Mica Heliskiing, based in Revelstoke, has a big budget to woo and keep its customers. “It’s easier to re-sell to them than to start looking for more customers, as there is such a small pool of heliskiers - perhaps 10,000 in the world - and everyone is fighting for them,” explains Darryn Shewchuk, Director of Sales & Marketing. Rather than discounting for repeat bookings or early registrations, Mica gives loyalty gifts. “Last year we spent close to $50,000 on loyalty gifts,” Shewchuk admits. Two years ago, the top 180 guests received a 30-year-old Scotch inscribed with their name on Mica’s private label and sent in a mahogany case direct from Scotland. Other gifts have included remote control helicopters emblazoned with Mica’s logo. Guests are also given small presents that they find under their pillows each evening after skiing as well as a video slide show of their trip set to music on a USB stick. Loyalty Discounts Bighorn Meadows is a ski and golf resort with 123 luxurious selfcontained one, two, and three bedroom suites. Its True Key Loyalty Program entitles visitors in Radium Hot Springs to a 15% discount on accommodation at Bighorn Meadows, Sunrise Ridge, and Harrison Beach Hotel. It gives free parking and complimentary upgrades and there are further discounts for card holders at spas, retailers, restaurants, tours, golf courses, car clinics, etc. Lifetime Value Not every company can afford to research the lifetime value of repeat customers or have the clout to inaugurate such schemes as Air Miles deals. However, it is worthwhile adapting large-scale loyalty programs to fit smaller establishments. For example, Fairmont introduced online check-in and check-out last year to cater to time-pressed travellers. Restaurants everywhere are moving towards online reservations these days, and hotels of all sizes could emulate this. If such extras are offered only to “club” or loyalty program members, there is an added bonus of getting more people into the scheme and collecting valuable data for future marketing programs. InnFocus 25 F&B Trends in Hotels by David Swanston The role of food and beverage operations continues to take on greater prominence for lodging operators. For mid-market properties, F&B can add value for guests and be a differentiating factor. For up-market facilities, a well-executed program can enhance the guest experience, reinforce the brand position, and become a drawing point for the property. Creativity, innovative delivery, and a focus on healthy menu items that reflect unique target customer needs are the overarching themes guiding F&B menu planning for BC’s lodging operators. Fads pass as quickly as they arrive. Culinary teams that are able to identify emerging trends, fundamental shifts in consumer preferences, and become early movers to create distinctive ways to satisfy these needs will gain a lasting market advantage. Although each property will require a unique approach to its menu design, based on its guest profile, style of service, and geography, there are a few universal conditions that must be addressed. Guests are demanding greater value and are more conscious of price levels. Midmarket operators are addressing this by enhancing their complimentary breakfast offerings, and creating new F&B services, such as 24-hour snack stations and branded coffee bars. Fine dining restaurants and up-market properties are relaxing the formality and launching menus that provide price points that are more accessible. At the same time, menus must be more dynamic, offer greater selection, and satisfy an increasing range of dietary needs. F&B managers are under pressure to deliver creative selections, specialized items, and high quality 26 InnFocus offerings while controlling costs. It’s no easy task, yet many are rising to the challenge. Interviews with managers at several BC properties revealed that not only are they meeting these demands, but they are continuing to evolve to meet the needs of tomorrow’s guests. Grab and Go Self-serve snack stations are becoming an attractive option for providing enhanced F&B service to guests. Utilizing minimal real estate, these kiosks require very little upkeep and can often be maintained by desk staff. Guests help themselves when it’s most convenient, complimenting or even replacing traditional foodservice options. Popular options include selections of flavoured coffees, teas, and specialty hot beverages using pod brewing technology for both kiosk and in-room service. These can be presented along with fresh fruit, snack bars, muffins, and chilled products such as individual yogurt or bottled water. Finer options may include fresh baked cookies, gourmet chocolates, bread crisps, cheeses, spreads, and infused distilled water decanters. Menus must be more dynamic, offer greater selection, and satisfy an increasing range of dietary needs. Multi-Ethnic Cuisine Regional Flare Guests in BC continue to expand their international palates. Greater exposure to new cuisine and the influx of new workers is increasing ethnic diversity within the province. Janis Goard, Director of Food & Beverage for The Hotel Grand Pacific in Victoria offers, “We also experience greater demand for international dishes, especially Asian meals, coming from tour groups.” Menus need to reflect a broader array of flavours and cooking styles to satisfy the expectations of a more discerning clientele. Local ingredient sourcing is not new, but the coming year should see this movement intensified. Visitors to your property will value the opportunity to experience regional food and beverages not available elsewhere. The authenticity of these dishes, created with fresh and sometimes unique ingredients that are produced locally, will add credibility to your operations. Asian-inspired dishes including pork, whole fish, and noodles will continue to grow in popularity. Korean kimchy, spicy Thai, and masala sauces are finding their way into many mainstream menus. “On the weekends, our chef prepares a Dim Sum menu using Ocean Wise seafood that is quite popular,” adds Goard. Modern variations on traditional South American meals, particularly Peruvian, are well received. These dishes use combinations of commonly available ingredients such as corn, tomatoes, chilies, lime, cilantro, nuts, long-grain rice, fish, and chicken. Like the countries themselves, these dishes reflect the influences of many cultures blended together to create some truly inspired results. Fusion approaches to preparing many authentic ethnic cuisines will allow chefs great latitude in creating memorable dishes. Go Bold It’s all about flavour. Marinades, sauces, spice rubs, herb blends, smoking, and the use of exotic ingredients will help transform even simple dishes into meals that stimulate and excite. It doesn’t take much to add a level of complexity to a recipe that will make it extraordinary. Building on the international cuisine and cooking styles mentioned previously, menus should include a range of flavour profiles to delight and surprise even your most worldly clientele. Steve Smith, of the Crest Hotel in Prince Rupert, explains that although there is always demand for fresh, locally caught fish and seafood, “we try to add value to dishes by enhancing even traditional menu items, such as our BBQ Smoked Salmon Chowder or our Japanese Mushroom Soup.” Taking “buy local” to the extreme, operators are now bringing production activities inhouse with rooftop greenhouses, honey bee colonies, microbreweries, and wine made on the premises. Even if purchased from community suppliers, guests will embrace artisan breads, meats, cheeses, produce, and boutique spirits that reflect the local climate and agriculture. Alliances with regional producers encourage customization of products, allowing for greater menu differentiation. The Hotel Grand Pacific offers a Charcuterie Plate featuring locally produced salamis and house-made terrines as well as locally handmade chèvre. Special Menu Requirements Guests want more than just a handful of menu choices designated as “healthy”. Some study estimates suggest that 30% to 50% of the population suffers from some form of food intolerance, and approximately 1 in every 13 people have a severe food allergy. Add these to guests who follow strict diets such as vegetarian, vegan, organic, kosher, and Halal, and it can seem impossible to meet everyone’s needs. Goard explains, “We always maintain a large selection of items on hand to meet last minute requests of guests for vegetarian meals and those with food allergies.” The frequency of these requests appears to be increasing right across the province. Bombay Peggy’s Victorian Inn in Dawson City is currently researching new glutenfree menu options in response to rising demand. According to Night Manager Krissy Hunter, “We are looking at both food and beverage products that meet the needs of those following gluten-free diets, but do not sacrifice quality and taste.” While providing menus that meet the requirements of those on restricted diets may not be the primary reason for a guest choosing your facility, it may be the deciding factor when choosing between comparable operations. More importantly, offering suitable dishes will enhance those guests’ experiences and increase the likelihood of return visits. Beverages Many of the food trends mentioned seem to be spreading to beverage menus as well. The cocktail culture is on the rise, and customers want to try something unique. For some this means selecting drinks that are made from locally-sourced ingredients, or are a regional specialty. For others, retro cocktails such as Whisky Sours and Manhattans are new again. Operators are responding in creative ways. “We use locally-grown mint in our seasonal Mojito specials, and feature popular selections from Yukon Brewery,” offers Hunter. The Hotel Grand Pacific selects indigenous teas to infuse into many of their food and beverage selections. “Aside from our popular afternoon tea, we also use the local teas in several signature cocktails - along with making our own bitters and sodas - to make our beverages truly unique,” shares Goard. Well-designed food and beverage programs are becoming a necessity in all types of properties, in order for lodging operators to compete effectively. These trends are not likely to pass anytime soon and those operators who get ahead of the wave will find the rewards are shown in the faces of many very satisfied guests. David Swanston is a Hospitality and Foodservice Consultant, Principal of Focused Industry Training Seminars and is an instructor at major Canadian university business schools. Since 1997, he has helped a wide variety of organizations develop and launch new concepts, turn around troubled operations, and improve sales, profits, controls and efficiency. To learn more about how he can help you improve your sales, profits and performance, contact him directly at 905.331.6115, contactsmc@swanstonconsulting. ca or [email protected] InnFocus 27 BC Hospitality Foundation BC golfers are out in full force now that the weather has warmed up, and many are gearing up for the very popular fourth annual BC Hospitality Foundation Golf Tournament, to be held July 16 at the spectacular Westwood Plateau Golf and Country Club. This fun event is always a sell-out, largely because the BCHF is supported by the BC Hotel Association, BC Restaurant & Foodservice Association, the Alliance of Beverage Licensees, BC Lodging and Campgrounds Association, and the Canadian Restaurant and Foodservices Association. Golf registration and information is available at www.bchfgolf.com. The goal for this year’s golf tournament is to raise $100,000 to support the foundation’s mandate of “working together to help our own”. Monies raised at various events go to help people in the industry who find themselves in dire financial straits due to a medical situation. The BCHF also gives scholarships each year to deserving students who are studying to enter professions in the hospitality industry. Among the most recent beneficiaries of BCHF funds is Teresa Acosta, a former 20-year employee of McDonald’s. Teresa, who was born in the Philippines and came to Vancouver in 1974, is the mother of two. She is undergoing chemotherapy for breast cancer and will not be able to work for at least another year. Board of Directors’ Treasurer and founding board member Christine Coletta recently presented the Acosta family with a cheque by Renee Blackstone for $5,000 to help cover everyday expenses while Teresa is receiving treatments and is in recovery. Upon receiving the cheque, Teresa said, “I am so overwhelmed that your foundation has picked a person like me to [help] support my kids and family when I don’t even get any help from the government, even though I’ve worked [here] for 22 years.” Teresa’s daughter Maricel added, “My mom and our family really needed some help and I just cannot say how much I’m thankful for you guys for helping us. May God bless you.” The most important fundraising initiative for the BCHF is the Tip Out to Help campaign, which was launched last fall and raised nearly $120,000. “The campaign is aimed at getting everybody in the industry involved and supporting their own charity,” explains Alan Sacks, Executive Director. “We hope to have as many establishments involved as possible by holding events such as Toonie Tuesdays, Jeans Day, 50/50 ticket sales, bake sales, and penny drives. If we could collect $2 from each person working in BC’s hospitality industry, we would easily exceed our goal this year of raising $200,000” describes Sacks, adding: “We are looking for hotels, restaurants, and pubs that want to get involved - especially to develop awareness in areas outside the Lower Mainland.” For more information on the BCHF, go to bchospitalityfoundation.com. Renee Blackstone is a freelance editor and writer who sits on the BCHF Advisory Board. What’s New? by Debbie Minke Room Key is an innovative new hotel search engine that offers consumers comprehensive information and a simplified search experience. Founded by six leading hotel companies, Room Key provides consumers with a breadth of choices while offering flexibility, accuracy, and assurance. A unique shortlist feature enables consumers to compare properties across multiple locations, share their top picks, and collaborate with family and friends via email, Facebook and Twitter. It features integrated consumer reviews and has launched its own Facebook page. Mobile DECO Buffet Stations are attractive and easy to move. Featuring the latest induction cooking technology, each unit has a quartz composite countertop and a built-in plate shelf for guest convenience. Warming, carving, food and beverage and bar stations are also available. From Enomatic comes a new product called Flute , a sophisticated dispenser, which serves champagne by the glass. The system controls temperature, serve volume, and best of all maintains the champagne in the same state as it was when the bottle was opened. The Get Youth Working! Program has been extended to March 31, 2013. Funded through the Canada-British Columbia Labour Market Agreement, the program offers employers a $2,800 hiring incentive (up to three employees at $2,800 each) to hire eligible youth 15 to 29 years of age. Additionally, employers may request up to $1,000 to purchase training for the newly hired youth. To find out more about the program, visit www.getyouthworking.ca or call toll-free 1.877.866.3100. 28 InnFocus Business Travel is Picking Up by Anthony Pollard Latest results from the 2012 HAC Canadian Travel Intentions Survey show that business travel is projected to be up 4% in 2012, while leisure travel is expected to be static. 80% of business travellers said they would be doing more or the same amount of business travel in Canada in 2012 as they did in 2011, with the highest percentage coming from Ontario and Quebec. 82% of leisure travellers said they will be travelling more or the same for vacation this year. While overall leisure travel is static, 26% of Quebeckers said they would be travelling more for leisure, 3% more than the national average. The most uncertainty regarding leisure travel is in Ontario, with 8% indicating they did not know what their leisure travel plans will be for 2012. Of those who said they would be travelling less for leisure in 2012, thirty seven percent said they were doing so because of financial difficulties, while the cost of airfare has been identified as another leading reason for travelling less. Business travellers who said they would be travelling less this year claimed the number one reason for doing so is the use of video conferencing followed by the cost of airfare in Canada. Staycation - New Trend Travellers were asked how many times in 2011 they took a “staycation” - where they stayed in a hotel in their home town and visited local attractions, shopped, and ate at local restaurants. A solid 22% said they did, with 6% having done so three or more times in 2011. 13% said they would consider it in 2012. “Hoteliers have an emerging market of ‘staycationers’ who are vacationing in their own town or city,” said Tony Pollard, HAC President. “In challenging economic times people still want a getaway but are choosing something closer to home that may be more affordable.” Smartphones The survey looked at leisure and business travellers’ use of smartphones when travelling. The majority (44%, up 5% from 2011) said they use their smartphones to check the weather and are fearful about missing connections or worried about flights being delayed, with 31% of travellers checking departure and arrival times (up 4% from 2011). 37% of travellers said they use GPS and/or get directions on their smartphones, an increase of 5% over 2011. Facebook is becoming more and more popular with 25% (up 5% over 2011) saying they use their smartphones to check their messages and update their status. 12% book hotels and 7% book air, train, or bus tickets on their smartphones. 8% said that they use their mobile phones to Tweet. Travellers were asked what they would like to see included in a hotel mobile app. The top five preferences were finding a hotel’s location, booking a hotel room, checking a reservation, calling for reservation support or customer service, and linking to a hotel’s full website. “The greatest percentage of travellers calling for these types of hotel mobile apps is in the 25-34 age range. This is an opportunity to develop something that meets the needs of the young traveller that will also be part of his or her travel expectations,” noted Pollard. Customer Service & Food and Beverage Respondents were surveyed about hotel service. The majority of travellers said that hotel service in 2011 was superior to that of the past. 41% said hotel service in 2011 was better than hotel service in 2010, 45% said it was better than two years ago, and 47% said it was better than five years ago. The survey also looked at meals at hotel restaurants and room service. The majority of respondents said meals were better now than five years ago. Social Media and Travellers Environment Still Important 78% of leisure and 66% of business travellers use only the Internet to gather information before they book travel. All travellers use search engines to get information, followed by hotel booking sites and websites. In 2011, more than twice the number of business travellers used social media sites to get travel information, but in 2012, leisure travellers almost caught up in their social media usage. For the first time, 2% of leisure travellers are using hotel apps as a source of travel information. 42% of business travellers (up 5% from 2011) said environmental initiatives such as water recycling and energy efficiency are important to them. 36% of leisure travellers and 34% of business travellers said it is important for hotels to have green products. 25% of leisure travellers and 31% of business travellers said a hotel with an environmental certification program is important to them. The top five things leisure travellers are looking for on the Internet are specials, photos, maps, amenities, and guest testimonials. Topping the list for business travellers is hotel ratings, guest testimonials, videos, travel blogs, and social media. 70% of business travellers (up 16% over 2011) and 72% of leisure travellers (up 13% over 2011) said that hotel ratings on Internet booking services have the most influence on their travel choices. 7% more leisure travellers (56%) and 6% more business (52%) travellers than in 2011 said testimonials by previous travellers influence their choice of a place to stay. 19% of business travellers and 15% of leisure travellers said the ability to purchase carbon credits is very important to them. 43% of all travellers said they would pay $1 or more to offset their stay at a property (carbon credits). The survey of Canadian travellers is the eighth annual Canadian Travel Intention study undertaken by the Hotel Association of Canada. This survey was fielded by Opinion Search and defines a traveller as someone who will stay at least one night in a hotel, motel, or resort. The online survey was conducted in the last week of January and the first week of February 2012 among 1,518 “likely travellers” with a margin of error of +/- 2.5%. Anthony Pollard is President of the Hotel Association of Canada. InnFocus 29 Preparing for Canada’s New Polymer Bank Notes Issue Dates • $100s in circulation now • $50s in circulation now • $20s starting late 2012 • $10s and $5s by late 2013 Benefits - Polymer notes are more secure with leading-edge security features that are easy to check and hard to counterfeit. They’re also very durable, lasting at least 2.5 times longer than cotton-paper notes and leaving a reduced impact on the environment. How This Affects You - Check that your equipment is compatible with polymer notes. If your business uses equipment like cash counters, ABMs, self-serve checkouts, or vending machines, they may need to be upgraded for polymer notes, or in some cases, replaced. Contact your equipment supplier or manufacturer for questions about machine compatibility and plans for upgrades. Note: The Bank of Canada offers manufacturers and suppliers an opportunity to test each new note on their machines several months before they go into circulation to allow for a smooth transition. Separate polymer and paper notes - The Bank will work to remove paper notes from circulation as more denominations become available on polymer to minimize the amount of time that paper and polymer notes co-circulate. You can facilitate the removal of paper notes by keeping polymer and paper notes separated in your tills and bank deposits. Note that polymer notes have no ultraviolet (UV) light feature While there is no UV feature on polymer bank notes, there are a variety of new security features that you can easily check. Contact the Bank of Canada for free training materials or to book a training session. 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