hospitality - Alberta Hotel and Lodging Association

alberta
hospitality
The Official Magazine of the Alberta Hotel and Lodging Association
DRIVE
REVENUE
Guest
ENGAGEMENT
Improving Staff
PRODUCTIVITY
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alberta
hospitality
this issue
12
DRIVING BETTER REVENUE
In order to maximize revenue, hoteliers
must evaluate the relationship between
their overbooking strategy and the cost of
walking guests. They also need to leverage
the hotel’s online reputation and review
the cost of various distribution channels.
7
8
YYC’s Airport Development Program
16
20
Profile: Hotel Clique Calgary Airport
in every issue
4
6
15
18
19
24
24 25
30
Chairman’s Report
President & CEO’s Message
Travel Alberta
Alberta’s Treasures
HR Matters
What’s New?
The Top Ten List
Names in the News
AHLA’s Programs
26
Guest Engagement - A Powerful
Predictor of Business Growth
Improving Staff Productivity - Doing
More With Less
Alberta Accommodation Outlook Oil Prices Having a Strong Impact on
Performance
29
Convention Review
CHAIRMAN’S REPORT
alberta
hospitality
Official magazine of
INSPIRING SERVICE, GROWING VALUE
AHLA
2707 Ellwood Drive,
Edmonton AB, T6X 0P7
Toll Free: 1.888.436.6112
www.ahla.ca
CHAIR OF THE BOARD
Steven Watters
FIRST VICE CHAIR
Perry Batke
VICE CHAIRS
Robin Cumine
Leanne Shaw-Brotherston
PAST CHAIR
Perry Wilford
PRESIDENT & CEO
Dave Kaiser
DIRECTORS NORTH
Amr Awad
Shazma Charania
George Marine
Ken Mealey
DIRECTORS CENTRAL
Karen Naylor
Tina Tobin
DIRECTORS SOUTH
Chris Barr
Cory Haggar
Dwayne Stratton
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Fighting Fox Creek’s Bylaw
Just a few months ago, the AHLA brought
forward a great concern regarding a proposed
increase to business license fees for hotels in
the Town of Fox Creek. At that time, their
council had done only one reading of the
bylaw. As of April 27th, the 2nd and 3rd
readings have been done and this bylaw is
now passed in spite of opposition from local
hotels and the AHLA.
The bylaw reads, “The Business License Fee
shall be an amount equal to 100 percent of
the Alberta Tourism Levy, as defined in the
Tourism Levy Act”. To put it into perspective,
a hotel with $3 million in room revenue
would now pay $120,000 every year simply
for a license to operate their business in
Fox Creek. The previous cost of a business
license was $75, which is what every other
business in Fox Creek pays. What’s more is
that the revenue created by this fee will
go to fund infrastructure such as roads and
sewers, which are used by all residents and
businesses. This is certainly not what hotel
owners had in mind when they invested in
Fox Creek. It will certainly have an impact
on future investment. This amount is so
disproportionate, it seems unbelievable it
could ever have been considered, yet it is
now reality.
Fox Creek’s town council believes that hotels
can simply pass this cost on to their guests by
increasing their room rates by 4%. Businesses
in Fox Creek are primarily in the oil and gas
industry and they are in competition with
similar towns in the region. Occupancies have
drastically declined in the last few months as
the price of oil plummeted. Increasing rates
in current market conditions would impact
their competitiveness and drive guests to
work camps or other communities, causing
hotels to cut staff levels and spending. These
hotels, their guests, and employees purchase
products and services in Fox Creek. The
trickle-down effect could be catastrophic for
the economy of this small town.
The AHLA is working with Fox Creek hoteliers
to fight this bylaw. The outcome will impact
every community in Alberta. If the Town of
Fox Creek is successful, the consequences
by Steven Watters
are difficult to fathom. Other cities and
towns will move to enact similar bylaws,
ultimately charging hotels to fund municipal
infrastructure. While other businesses are
currently unaffected, this could spread
beyond hotels in the future. This Business
License Fee is essentially a 4% tax on room
revenues. If this goes unchallenged, what
will stop municipalities from increasing the
amount, or reaching further into the business
community for infrastructure money?
Another consideration is the effect this
could have on tourism. The addition of a
4% Business License Fee combined with
a Destination Marketing Fee would put
that destination in danger of being noncompetitive. This could lead to lost business
for hotels, attractions, communities, and
our province. The Prentice government had
proposed a budget that diverted $7 million of
the Tourism Levy from tourism to provincial
general revenues. Another reduction in the
pool of money that supports tourism, which
is the fourth largest industry in the province,
will have a detrimental impact on Alberta’s
economy.
The platform of the new NDP government
includes economic diversification as they
want to move away from the province’s overreliance on oil and gas. The AHLA will be
working with the NDP to bring municipal
taxation to the forefront as a serious threat to
the province’s diversification plans. Another
message to government is to have the
Municipal Government Act amended to cover
any possibility of towns and cities taxing
our industry in the future. In the interim, the
AHLA is working to protect our members’
interests by challenging the Fox Creek
Business Licence Fee.
We need your help! Monitor your local
council for similar legislation and inform the
AHLA immediately if this issue arises in your
community. As an industry, we need to work
together to fight this issue.
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alberta hospitality | 5
PRESIDENT & CEO’S MESSAGE
Alberta’s New Political Landscape
The outcome of the May 5th provincial
election was a seismic shift in Alberta’s
political landscape as the NDP party, led by
Rachael Notley, captured 53 out of 87 seats in
the legislature. After 44 years of Progressive
Conservative rule, what will this change mean
for Alberta’s tourism and hospitality industry?
Before we speculate on the answer, perhaps
some additional questions should be asked,
such as: How will the new government
support and work with an energy sector
that is reeling in the wake of dramatically
lower oil prices? Will tourism be viewed as a
sustainable economic growth sector that can
help to diversify Alberta’s economy? Will there
be a shift in gaming and liquor policy with
respect to balancing social responsibility and
generating revenue for government? How
committed will the party be to its election
promise to increase the minimum wage?
It can’t be overstated just how important the
energy sector is to Alberta’s hotel and lodging
6 | alberta hospitality
industry. Hotel occupancies in resource-based
communities have plummeted as activity in
the sector has fallen. Properties in the major
centres are not suffering as badly, but are
also seeing lower occupancies. According to
PKF Consulting, revenue per available room
(RevPAR) was down 10% across the province
for the first quarter of 2015, and the decline
appears to be accelerating.
The only bright spots for our industry are the
mountain parks with 2015 first quarter RevPAR
growth of 16.9%. These data points support
a view that investment in tourism makes
sense. The AHLA is hopeful that the new NDP
government will recognize the economic
potential for tourism and re-dedicate 100%
of the Tourism Levy to grow the industry.
Alberta’s gaming and liquor operations
contributed over $2.2 billion to provincial
coffers and charities for the 2013-14 fiscal
year. The province’s privatized liquor model
is very efficient and provides unrivalled
by Dave Kaiser
product selection for consumers. The AGLC’s
current strategy recognizes the importance
of social responsibility to ensure a sustainable
industry. Hopefully, the new government will
view the industry as operating with integrity,
and will not impose policies that negatively
impact growth.
Given the support of organized labour to
the NDP party, we should anticipate an early
debate on the minimum wage. The AHLA will
work hard to inform the government on the
economics of our industry and the value of
gratuities that are earned by staff who serve
alcohol.
We look forward to sitting down and
discussing all of these issues with the new
government. Our goal is to be a trusted
advisor offering advice and solutions that
work for government and our industry.
We look forward to serving you!
YYC’s Airport Development Program
by CJ Dushinski
Calgary International Airport (YYC) is a crucial gateway for visitors who
fly into Alberta each year. Handling more than 15.26 million passengers
in 2014, the airport is in the midst of a major expansion program that
features numerous innovative elements destined to further enhance the
visitor experience.
YYC’s more than $2 billion Airport Development Program will drive and
support tourism and business within Alberta for years to come. This
expansion is comprised of two major projects. The first, a new runway,
opened in 2014. The second, a new International Terminal, which will
more than double the size of the existing terminal facility and will increase
the number of aircraft and passengers that can be handled, is on track
to open in 2016. Some may wonder why Calgary needs such a large
expansion. The answer all comes down to the numbers.
In the past 20 years, passenger volume through YYC has more than
doubled, making it Canada’s third busiest airport. In 2014, the airport
welcomed a number of new destinations as well as increased frequencies
and capacity on passenger routes, so that Albertans can continue to take
advantage of YYC’s extensive network of 240 departures per day to 78
non-stop destinations. YYC is also one of the country’s best connected
airports and has more seats per capita than any other major airport in
the country.
With a busy airfield and an increasingly full terminal building, YYC has
been in need of additional capacity and embarked on its expansion
program in 2011. The runway, which is 14,000 ft. long and 200 ft.
wide - the longest runway in Canada - has given Alberta’s international
passenger and cargo hub the ability to more efficiently manage its busy
operations. The additional runway will also allow the airport to continue
to welcome extra flights to more destinations around the world, ensuring
Alberta continues to have some of the best air access in Canada.
The new International Terminal now nearing completion of construction
will add nearly two million sq. ft. to the existing Air Terminal Building,
along with 22 additional gates, and new US and Canada Customs facilities.
It also incorporates a state-of-the-art baggage handling system with
positive location tracking and the ability to process up to 4,000 bags per
hour.
There are a number of other industry-leading initiatives that will be
introduced in the new International Terminal. New connections processes
will give passengers connecting through YYC the ability to transfer
between domestic, transborder, and international flights without having
to pick up and recheck their bags. A Compact Transit System (CTS)
and moving walkways within a secure Connections Corridor will allow
passengers to move easily from one concourse to another. The CTS,
featuring small electric vehicles, will transport up to 10 passengers
and their carry-on bags between the existing terminal and the new
International Terminal. All of this will be in a beautiful building that
incorporates a number of innovative environmental components.
YYC is currently responsible for creating and maintaining 48,000 jobs and
contributes over $8.2 billion to Calgary’s Gross Domestic Product. These
expansion projects will ensure that YYC, its many airport partners, and
Alberta overall, can continue to grow well into the future, while helping
YYC continue to play its part in supporting tourism in Alberta - providing
visitors with an excellent first, and final, impression of the province.
CJ Dushinski is Manager, Tourism Development at The Calgary Airport
Authority.
alberta hospitality | 7
FEATURE
GUEST ENGAGEMENT
A Powerful Predictor of Business Growth
by Terri Perrin
With the ever-increasing popularity of online bookings, hoteliers are missing the
opportunity to engage hotel guests during initial phone inquiries. However, astute
managers recognize that there are other ways to make travellers feel welcome and
appreciated - before, during, and after their stays. The bottom line is: Guest engagement
is vital to achieving sustainable, long-term growth, and to build brand loyalty.
8 | alberta hospitality
GUEST ENGAGEMENT
Survey Says!
According to Gallup’s 2014 Hospitality Industry Study, there is a direct
link between guests’ feeling of well-being and customer engagement.
Six distinct segments of the hotel market were analyzed in this study luxury, upper-upscale, upscale, upper-midscale, midscale, and economy.
The study revealed that higher-end hotels do a better job of taking care
of their guests’ well-being.
Gallup’s research also shows a strong link between customers’
engagement levels with a hotel and the amount of money they spend
per visit. Guests spent an average of $457 per stay at the hotel they visited
most frequently in the past 12 months. Fully engaged guests spent $588
per stay, compared with $403 per stay for actively disengaged guests - a
difference of $185 per customer.
Photo courtesy of Service Plus Inn & Suites Calgary
Size Does Not Matter
One might assume that guest engagement may be easier for larger
properties, because they may have more resources available. Heather
Carriere, General Manager at Baker Creek Mountain Resort in Lake
Louise, disagrees. She says that most visitors to her small, family-ownedand-operated property come to enjoy “the quintessential Canadian
experience”, and she makes every effort to ensure her team delivers on
that expectation.
Like most hospitality industry websites, Baker Creek’s site features a
scenic video, social media links, and lots of photos, so guests can get a
real feel for the property before they arrive. Once they come through the
front doors at Baker Creek or call the front desk, the guest engagement
experience truly begins.
{
If someone mentions a wedding, birthday
or anniversary, we present them with a
card or a gift.
“We pay close attention when speaking with our guests in person or on
the phone, and we make notes about their preferences and experiences,”
explains Carriere. “If someone mentions a wedding, birthday or
anniversary, we present them with a card or a gift.”
alberta hospitality | 9
GUEST ENGAGEMENT
{
The campfire is a guest favourite that is
especially popular with European travellers.
Thinking Local
Photo courtesy of Baker Creek Mountain Resort
Baker Creek guests and staff are also invited to come together for a
nightly campfire dubbed “Meet at the Creek” to enjoy conversation, hot
chocolate, and roasted marshmallows. The campfire is a guest favourite
that is especially popular with European travellers.
Personal interaction is important for Baker Creek because they can’t get
complacent and depend solely on e-communications. Their Internet
service, via satellite Wi-Fi, is limiting. While they do send confirmation
emails and other e-correspondence, they can’t send mass emails with
large attachments.
“We also initiate further guest engagement by sending emails thanking
guests for coming, and we encourage them to write about their
experience and post photos on Facebook, Instagram, Twitter, and
TripAdvisor,” concludes Carriere.
10 | alberta hospitality
Service Plus Inns & Suites, Calgary, which is owned and managed by Will
Inns and Game Hosts, is another independent property that has taken
guest engagement to a high level of excellence. General Manager AJ
Lifshits is proud of the company’s award-winning “Pick Your Adventure”
promotion. The Calgary Service Plus Inn and the Deerfoot Inn & Casino
were the test market for the program. It has now expanded to the
company’s other four properties in Calgary, Drayton Valley, Lethbridge,
and Grande Prairie.
“We collaborated with popular, family-friendly local attractions such as
the Calgary Zoo, Heritage Park, and the Telus Spark Science Centre, to
name a few,” explains Lifshits. “The guests choose their ‘adventures’ at
these attractions and the tickets are included with the cost of the hotel
stay. A hot breakfast and in-room pop and popcorn for the kids are also
part of the deal. In each city where this is being offered, the packages
run for about four months and focus on seasonal attractions that are
authentically local and unique to the area and the hotel.”
“To launch the program four years ago, we initially targeted the Edmonton
market, using newspaper ads and social media as well as Groupon,
DealFind, and nCrowd,” he adds. “These coupon websites have huge
databases and that was great exposure for us. The drawback is that they
take a commission, and these are already deeply discounted packages.”
GUEST ENGAGEMENT
{
There is a direct link between guests’ feeling
of well-being and customer engagement.
Once the guests are at the hotel, Service Plus further promotes Pick Your
Adventure with a welcome letter and an information sheet. The program is
so successful that they have guests who call to find out what is being offered
in the next season’s package and to book additional stays well in advance.
Customer Well-Being
& Engagement
There is a strong link between guests’ feelings of well-being and
customer engagement, and engagement is a strong predictor of
business growth.
Actively disengaged
Indifferent
Fully engaged
79%
66%
A Home Away from Home
Service Plus Inns & Suites Calgary always goes the extra mile to foster
guest engagement and ensure their guests feel that the hotel is like a
home away from home, but especially so at Christmas.
“Three years ago I noticed that we had many families with children staying
at the hotel over Christmas,” recalls Lifshits. “We hired ‘Santa’ to go to each
of the rooms with children to give them a note to remind them to look for
the gift from him under the Christmas tree in the lobby. It was so fun to
see the kids race down to the lobby on Christmas morning.”
Service Plus also treats pets as an extension of the family and provides
gourmet dog cookies from a pet bakery in Canmore. They also have pet
food bowls and accessories available to borrow, in case guests forget
these items at home.
28%
20%
6%
Strongly disagree the hotel they visit most
frequently takes care of their well-being
1%
Strongly agree that the hotel they visit most
often frequently takes care of their well-being
Source: Gallup’s 2014 Hospitality Survey
Top 10 Tips for Guest
Engagement
1. Listen - Whether they are complaining or praising, your guests’
opinions matter.
2. Be Inviting - For face-to-face interactions and social media,
encourage engagement by asking questions and inviting participation.
3. Get Personal - When guests book their rooms online, it is challenging
to make a personal connection. Be sure to personalize the ‘To’ field in
your reservation confirmation and any further email communications.
4. Be Educational - A welcome email should outline the hotel (and
surrounding) amenities to the guest, not be a blatant promotional
advertisement. It should include the name of your GM as well as a
direct contact number.
5. Support Local - Know what is happening in your community and
relay this information to your guests on your website, verbally (when
they check in) as well as with posters or in-room flyers.
6. Be Rewarding - Launch online or in-hotel contests and special
promotions. People like to save money, and they love prizes.
7. Welcome Feedback - You can’t fix something if you don’t know it
is broken. Ask for feedback through in-room and online surveys.
8. Analyze Survey Results - Establish a schedule to review all surveys.
Watch for patterns and act accordingly.
9. Be Mobile Friendly - Ensure your website can be viewed on
different types of smartphones.
10. Enhance Your SEO - Enhancing your Search Engine Optimization
(SEO) can bring your property’s website closer to the top of the listing
when people search for hotel information.
The Key to the City
“In the hospitality industry in general, we traditionally tend to be very
protective of our own bars and restaurants,” declares Chung Young, GM
of the Best Western PLUS Port O’Call Hotel in Calgary. “To enhance guest
engagement and their enjoyment of the city, we now look at food and
entertainment establishments across the city in a different light. We
discover venues that Calgarians love, and introduce them to visitors
through a new program called ‘Concierge’s Notes’. The Concierge’s Notes
are displayed on a reader board in the lobby and also distributed in an
e-newsletter.
“Best Western’s new ICare Loyalty Program emphasizes our commitment
to every guest, every time,” adds Young. “Whether meeting a guest
at the front desk, in an elevator or a restaurant, they must always be
acknowledged. We engage with guests by asking them where they
are from and what brings them to the city. And we always look for
opportunities to assist them,” adds Young. “People love that! If an issue is
brought to an employee’s attention, the employee is encouraged to take
control and resolve it. We have an empowerment program whereby each
staff member is authorized to spend up to $35 in our hotel outlet stores
for guest engagement items. No questions are asked.”
Along with engaging hotel guests, the Best Western PLUS Port O’Call
Hotel also believes that employee collaboration and recognition are
important. They conduct quarterly general staff meetings to discuss
training and engagement.
“We reward employees with $50 per person, per mention, whenever a
specific individual is identified on a guest satisfaction survey or social
media,” concludes Young. “We recognize that, for employees to take
ownership of guest engagement, we have to recognize their contributions.
Guests who take the time to single out an individual for exemplary service
also get an incentive from us. In our experience, small things really do
make a big difference.”
alberta hospitality | 11
COVER
STORY
DRIVE BETTER REVENUE
Examine Overbooking, Reputation, and Cost of Sales
by Esra Kucukciftci
In order to maximize revenue, hoteliers must evaluate the relationship between their
overbooking strategy and the cost of walking guests. They also need to leverage the
hotel’s online reputation and review the cost of various distribution channels.
12 | alberta hospitality
DRIVE BETTER REVENUE
Overbooking Drives Your Hotel’s Sell-out Efficiency
Overbooking makes you a lot of money since you’re maximizing revenue
and occupancy, so don’t be afraid to use this strategy. Overbooking
controls will increase a hotel’s sell-out efficiency while quantifying
the risk of walking guests. The sell-out efficiency for hotels is used to
determine what a busy night is, i.e. if you’re above 95% you can sell
out. Overbooking controls strategically incentivize hotels to be less
conservative when putting in strategies to drive their occupancy.
Most advanced Revenue Management Systems (RMS) today provide
dynamic overbooking levels for every day in your forecast window. The
said systems monitor both group and transient market segments for
wash (no-shows or cancellations). For transient market segments, the
RMS automatically studies the booking pace to understand no-show
and cancellation patterns. As for the group market segments, the system
learns group wash by monitoring the deducted rooms from the hotel’s
property management system. The RMS then uses this information by
day of week and by market segment group when calculating overall
overbooking decisions for the hotel. The dynamic overbooking controls
are provided at the house level, and distributed at room-type levels. The
system then passes this overbooking decision to the hotel’s property
management system. When a reservation request is made at the hotel,
the hotel reservation system verifies that rooms are available within the
house overbooking limits.
The two most important ways that overbooking influence your RMS
decisions are by providing system overrides for wash and the specific
cost of walk. The purpose of the cost of walk is to calculate risk vs. reward
when the appropriate overbooking level is determined for any given day.
The relationship between your overbooking strategy and cost of walk
is very important to your hotel’s revenue strategy execution. Lowering
the cost of walk increases the aggressiveness of the RMS overbooking
decisions, whereas raising the costs of walk decreases the aggressiveness
of the overbooking decisions. The cost of walking a guest can be
computed using several parameters including, but not limited to, the
cost of the hotel room, cost of complimentary gifts, and the probable
cost of lost future business.
Reputation Pricing Enables Your Hotel to Price More Competitively
The President & CEO of Hyatt Hotels Corporation, Mark Hoplamazian,
recently said, “The biggest opportunity in hospitality today is using
digital to extend the experience beyond the stay.” The same opportunity
is available for hospitality revenue management. You can use guest
reviews to leverage your online reputation to make more competitive
pricing decisions. But how can hotels clearly identify when the revenue
opportunities arise due to their reputation performance, and how much
they can drive their rates?
The answer has to do with integrating a hotel’s reputation performance
into its pricing algorithms. The way this works is that RMS vendors
receive reputation score data feeds directly from various reputation
management vendors. Reputation management vendors gather large
amounts of reviews from various global channels to analyze and assign
this data into reputation scores. RMS then utilizes the reputation scores
in combination with a hotel’s best available rates as well as the rates
of its direct competitors, provided by the rate shopping data. Finally,
RMS derives an optimal, reputation-impacted best available rate for the
hotel’s rate spectrum.
alberta hospitality | 13
DRIVE BETTER REVENUE
{
The relationship between your
overbooking strategy and cost of walk
is very important to your hotel’s revenue
strategy execution.
hoteliers with an additional layer of pricing input. For example, a trend
such as the one depicted in this graph between February 2014 and April
2014 signals a pricing opportunity to drive RevPAR when the hotel’s
reputation index consistently trails above its rate index.
Revenue Optimization Must Account for Cost of Sales
In the absence of a technological solution to scientifically incorporate
online reputation into your pricing algorithms, good visualization tools
are also helpful as they exhibit the revenue opportunities for hotels
based on the relationship between reputation and rates. A graphical
representation of your hotel’s rate and reputation index in relation
to your competitive set can help you drive rates when your online
reputation position outperforms your rate position. This method of hotel
pricing is also very similar to how guests evaluate the competitively
priced options.
To illustrate this point, consider the Figure Reputation Performance
Analysis shown here. Analyzing a hotel’s reputation index in relation to
its rate index in a certain market over time, allows a hotel to identify the
correlation between its rate and reputation positions. Understanding
how this relationship is changing or improving over time provides
Reputation Performance Analysis
Hotel distribution channels fall into a variety of categories, including
traditional channels - such as hotel reservations, tour operators, travel
agents and wholesalers, the Central Reservation Office (CRO), and the
Global Distribution System (GDS). In addition to these, online channels,
such as branded websites and the Online Travel Agents (OTAs) have
become increasingly important since their inception in the early 1990s.
Having such a variety of distribution channels most certainly enhances
your exposure to guests that you might not normally get; however, as
hoteliers know all too well, all channels are not created equal. Due to
rate parity requirements that hotels follow, except for opaque channels,
a guest will pay the same rate regardless of where the reservation is
booked. The hotel will receive different amounts of revenue depending
on the channel the booking comes through. Be sure to analyze the total
cost of each reservation. An OTA booking may seem very expensive but
compare that to commission paid to a travel agent and the GDS.
Be sure to take in consideration the billboarding effect of OTAs, since
bookings on your website correlate to the availability on Expedia and
other OTAs. Many guests will look at Expedia but then go to your site to
book, so consider how your hotel is benefitting from the billions of dollars
OTAs spend on international marketing. Since your most profitable
bookings come from your own website or reservation department,
look for ways to convert Internet researchers to direct bookers. Offer a
discount card at check-in with a promotion code for 15-20% off their next
stay if they book through you. Capture full guest information so you can
market to them as well.
When it comes to profit optimization, the cost of distribution channels
should be taken into consideration along with your reputation
management score. These calculations and a thoughtful overbooking
strategy will increase your profitability.
Esra Kucukciftci is Principal Product Marketing Manager at IDeaS.
Esra helps hoteliers to learn more about IDeaS’ revenue management
solutions and services. Esra is also a frequent contributor to IDeaS Blog
www.optimizeyourrevenue.com.
14 | alberta hospitality
TRAVEL ALBERTA
Summer Strategies for Growing the US Market
by Jasmine Thompson
The US is Alberta’s largest external source of tourism. With a strong
American dollar now in play, there’s opportunity to make further inroads
into this critical market. That, combined with Travel Alberta’s new yearround marketing strategy, has opened up possibilities in the American
short-haul and road travel segments, anticipated to translate into more
travellers visiting our province and booking accommodation this summer.
These details, wrapped in awe-inspiring (remember to breathe) adventures
and coupled with the message that Alberta is closer and more affordable
than you think, form the foundation of our marketing efforts.
Traditional summer and winter campaigns have focused more on longhaul markets like California and Texas, which have high visitation during
those seasons. We are leveraging the strong potential in Montana and
Washington, which are just a short flight away or a quick drive across the
border.
This summer, you’ll see Travel Alberta shift its marketing efforts to digital
platforms wherever possible, since that’s where travellers are getting
their information. A new search engine strategy will improve hits from US
customers. If they are looking for information on Alberta, they will find us
more quickly and easily.
Reminding those travellers that the exchange rate is in their favour can tip
the balance from choosing a staycation at home to taking an affordable
trip to nearby Alberta.
Media partnerships with YouTube and YuMe will see us showcasing our
brand videos widely throughout the summer.
Tourism is already a key economic driver in Alberta. The visitor economy
is a $7.4 billion industry that supports 19,000 businesses, employs more
than 114,000 people, and provided $3.4 billion in tax revenue in 2012.
Evolving the Alberta Brand
The strength of any brand is its ability to evolve with its customers. We
have seen the tremendous success of Alberta’s goosebump moments
presented through outstanding images, words, and video.
Travel Alberta is now building more robust brand authenticity by tapping
into user generated content - sharing stories, photos, videos, and
conversations from actual travellers who post on social media sites such
as Instagram, Facebook, Twitter, and YouTube. Research shows customers
have a stronger connection to photos and stories from fellow travellers.
In this summer’s campaign, you’ll also see an interlacing of facts and
figures to support the rationale for choosing Alberta as a destination. In
addition to sharing breathtaking experiences, we are highlighting our
unique selling points.
For example, Alberta has 312 sunny days a year - the highest in Canada. We
have more than 30 festivals a year. We have the world’s two largest dark
sky preserves where the stars shine brighter, protected from city lights.
And we have some of the world’s most beautiful and diverse landscapes,
from the iconic Rocky Mountains in the west to the mysterious badlands
in the south.
New Partnerships; New Ideas; New Strategies
Strategic partnerships with travel trade professionals will ensure Alberta
experiences are readily available for travellers throughout the US market.
Leveraging the relationships as well as the reach these operators have
with potential travellers will help to drive room nights and increase visitor
length of stay. We’re working with TripAdvisor in all four key US markets
to ensure there’s plenty of terrific Alberta content, imagery, and links. And
by sponsoring their Alberta and Canadian Rockies pages, we can block
advertising from our competitors.
For the first time this summer, Travel Alberta is working in partnership with
key publications like the Los Angeles Times, the San Francisco Chronicle, the
Houston Chronicle and United Airlines to fully integrate advertising, media
and social media.
We’re also using paid social media to expand the reach of key influencers
like the New York Times or LA Times. Travel Alberta will ensure that relevant
Alberta content produced by these powerful American voices will be
shared with millions more on Facebook, Instagram, and Twitter.
Coming up this winter, we’re looking forward to collaborating on US
campaigns with our Destination Marketing Organizations.
The US is a natural market for Alberta tourism and Travel Alberta is
exploring many innovative avenues to inspire US travellers to visit and
book rooms in our province. A strong US dollar is one arrow in our quiver
right now - an extra incentive to experience authentic Alberta adventures.
Jasmine Thompson is Travel Alberta’s Director of Consumer Marketing USA.
She can be reached at [email protected]
alberta hospitality | 15
PROFILE
THE CLIQUE BRAND AT
CALGARY AIRPORT
“Sleep with the Best”
by Chris McBeath
As founder and President
of Summit Hotel & Resort
Management, Jim Muir’s passion
for the hospitality industry is
clearly the cultural narrative
behind the company’s success.
And as the group’s just-opened
Hotel Clique Calgary Airport and
its soon-to-open Applause Hotel
Calgary Airport prepare for take
off, that enthusiasm for service
excellence is palpable.
The Clique Difference
“The Hotel Clique Calgary Airport
is the first property to carry the
name of our edgier brand, Clique
Hotels & Resorts, which as the word ‘clique’ suggests (in French
and in English), is a small and exclusive group of properties,”
Jim explains. “Developing the Clique brand is part of a fiveyear strategy to grow the company’s portfolio of owned and
managed properties. It represents an evolution of the Summit
group as we extend our ability to cross-promote with our other
properties and between different market sectors.”
When it opens this summer, the Applause Hotel Calgary Airport
will also be a part of the Clique group and will differentiate itself
from the Hotel Clique Calgary Airport with a wider range of
guest amenities, including complimentary in-room beverages.
Both hotels exude the brand’s upbeat, Euro-chic vibe with clean
design elements and a wired-for-the-future infrastructure that
can support technological growth and advancement in coming
years.
The hotels’ general manager is Sylvester Freeman, who is
distinguished by his passion for business and a focus on his
commitment to meeting customer and market demands. His
16
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hospitality
contagious enthusiasm fills his team members with energy and
dedication where creativity and innovation are encouraged.
Wired for the Future
Easy-to-use, accessible technology is a top design priority for
all Clique properties - whether that’s the way the uber-cool
bathroom fixtures work, or simply in the number and location of
outlets in every room, so guests can charge various devices while
enjoying ultra-fast Internet connections. Other Clique comforts
include large-screen HDTVs, LED-equipped vanity mirrors in the
bathrooms, extra-large luggage racks, and colour-adjustable
LED lighting beneath the bed. In addition, guests have the
choice of three theme suites - especially hot commodities in the
Edmonton/Calgary market: “The Corner Pocket” provides guests
with their own private pool table; “Vinyl” celebrates rock ‘n roll;
and “Taboo” is for more romantic encounters.
For all the techno-capability, there is an equal commitment to
the human factor. “Our research shows that most guests still
prefer a person-to-person check-in process, so we haven’t (yet)
embraced the smart-phone check-in/room-key trend,” Jim
continues. “We really want to personalize the guest experience
through one-on-one communication and use technology to
help make reservations easier, bookings more customized,
marketing more targeted, and on-site accessibility a breeze.”
Four Green Keys
Both hotels will apply to the Green Key program with the
goal of earning their 4 Green Key ratings with features
such as key-card activated lights in all guestrooms, low-flush
and highly efficient plumbing and heating fixtures, backof-house motion detectors for heat and light as well as a
comprehensive recycling regime. The latter includes “Hot for
Mother Earth” collateral materials that reference Calgary’s Bow
River, thereby turning a standard linen exchange program into
a hip and regional concept. It’s an eco-strategy that helps build
relationships both with the local community - occupancies
here are derived largely from local businesses - as well as with
guests.
Sleep with the Best
Edgy, eye-catching marketing is another hallmark of the
Clique experience.
“As a smaller chain, we’re able to push the envelope in terms
of messaging. Our initial campaign back in 2009, “You’re
Invited to Sleep Around”, referenced our multiple locations.
Its progression to “Sleep with the Best” now speaks to our
elevated guest experience,” Jim explains. “Our size means we
can respond quickly to market conditions and manage guest
expectations immediately. We try to be just as innovative
when it comes to our Help Wanted ads and recruitment
strategies.”
In Calgary’s exceptionally competitive market, this immediacy
and creativity are proving vitally important. The airport’s
$2-billion expansion is generating a mass of hotel construction,
all with an eye on passenger counts that could increase from
14 to 20 million travellers by 2020.
Another key strength is Jim’s front-line experience of
almost every hotel position over a four-decade-long career
in hospitality from coast to coast. When combined with
his self-confessed entrepreneurial spirit, it means that he,
his management team, and his staff are open to change
and helping out where needed. “We’re a very team-oriented
company. I don’t believe in a cumbersome hierarchy to slow
things down,” he describes.
As with most markets in which it operates, the company
intends for the Hotel Clique Calgary Airport and the Applause
Hotel Calgary Airport to capture market share. “Our goal is to
do that within a year, and we’ll do it the way we always have by building relationships one guest at a time,” Jim says.
alberta
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hospitality || 17
17
ALBERTA’S TREASURES
Eau Claire Distillery
by Debbie Minke
There’s a surprise waiting for travellers on the Cowboy Trail, those
savouring the sights and sounds of Alberta’s Old West. Highway 22, aka
the Cowboy Trail, snakes along the foothills of the Rockies, and only 40
minutes south of Calgary you’ll find the rustic hamlet of Turner Valley.
In the heart of town lies the old movie theatre, built in 1929, which now
houses the province’s first craft distillery, the Eau Clare Distillery.
the distillery uses their own stable of draft horses to produce exclusive
horse-farmed grains, making Eau Claire the only distillery in North America
to employ its own horse farming operation. They have a partnership with
Bar U Ranch, a National Historic Site and preserved working ranch, to
grow barley and rye using traditional horse farm methods, from plowing
to seeding to harvesting.
David Farran is Founder and President of Eau Claire Distillery. His career
took him from a drinks executive to diplomat, adventure travel outfitter
to creator of Canada’s largest chain of veterinary clinics. Hobby, passion,
and business interests merged for David when his weekend past-time of
farming with horses reconnected him with his Alberta farming roots. He
wondered why Alberta’s world-class agricultural bounty should not be
turned into world-class, local spirits, and Eau Claire Distillery was born.
Careful attention is dedicated to every detail in the spirits crafting process
from start to finish, without shortcuts or compromise. The finest local
grains are sourced and milled. The fermentation is controlled and natural,
without the use of pre-made neutral grain spirits, or colouring and
extracts to simulate taste. The unique distillation process occurs onsite
using a custom-made copper still, with 13 bubble plates in an 18-foot
rectification tower. The spirits are also bottled and finished onsite. The
resulting Eau Claire offerings are works of art, honouring tradition, but
not bound by it.
The town of Turner Valley is surrounded by generations-old family farms
where owners produce some of the finest grain in the world. Farm-fresh
ingredients and historic, hand-crafted methods collide as Eau Claire’s
master distiller, Larry Kerwin, creates unique artisanal vodka, gin, and
spirits that redefine taste, one “grain-to-glass” experience at a time.
Eau Claire’s award-winning spirits are handcrafted in small batches,
providing exceptional quality and premium handcrafted flavour. Crystal
clear Rocky Mountain water is a key ingredient. For some of their products,
18 | alberta hospitality
Eau Claire Distillery has just opened its brand new tasting room and visitor
centre. Travellers can come for a tour and tasting for $10, or a tasting
alone is $6.50. Drop in from Wednesday to Sunday between 10:00am
and 4:30pm to hear their fascinating story and watch art in the making.
www.eauclairedistillery.ca
HR MATTERS
The Best of the Best: Employer of Choice
Each year, the Alberta Hotel & Lodging
Association (AHLA) continues to receive
Employer of Choice applications. The program
and procedures are growing and are more
effective in determining which properties earn
the Employer of Choice designation.
Want to be an Employer of Choice? Beyond the
minimum requirements of having a sufficient
number of employees complete the survey
(both management and non-management),
you can determine which changes are
necessary by evaluating your company and
employees.
1. Review your policies. It is important to
have a strong set of policies that are legal,
ethical, and practical for your organization.
This doesn’t mean that you require a policy
for every single scenario in your organization.
Rather, you need clear, well-communicated
policies that cover basic considerations such as
privacy, confidentiality, cash shortages, hours
of work, etc.
2. Ensure that staff know about your policies.
You require more than just a set of policies
on paper. You need to ensure that your staff
is aware of and clearly understand these
policies in order for them to be effective,
your employees must understand them first.
Some employees may have language barriers
or other impediments that make it difficult
for them to fully understand your policies. In
such cases, it is imperative to use alternate
methods of communication to confirm
their understanding. Having them sign an
agreement that they do not understand is not
enough.
3. Respond to your employees’ concerns.
When your employees share a health or safety
concern, respond swiftly and effectively. If you
do not, you may not be following your legal
and ethical requirements as an employer. You
will likely have unhappy, uncommitted, and
unmotivated staff. This information is generally
transmitted through the Employer of Choice
application.
4. Ensure that your employees are free
from harassment and discrimination at
work. Though most workforces have hints of
harassment and discrimination, you should
have a workplace that is at least on par
with other properties. In reviewing the data
submitted, if our evaluators have reason to
believe that such behaviour is being tolerated
at your property, you may not receive your
Employer of Choice designation. Be sure to
respond with compassion, trust, and action.
5. Apply best practice. Best practice is
identified as the best way of building and
applying HR practices. How do you know
what best practice is? Just ask! We have done
our research and we have a qualified CHRP on
hand to answer any of those tough questions
that you might have.
6. Make improvements. Did you apply for
your designation last year and not receive
it? If so, don’t give up! At the end of the
year, you will receive a full outline of areas
requiring improvements as well as your
accomplishments. Use these recommendations
to make improvements on your HR practices
and you will be sure to score higher the next
time around.
by Celia Koehler
7. Get support. Talk to your employees about
the Employer of Choice designation. Tell them
what it is, why you want it, and ask them what
they think you could do better to get it. Some
properties might find this a dangerous task.
“What if they tell me that they want me to
change something that I can’t?” Sometimes
it is about changing a bad policy and other
times employees just need to know that you
are listening, that you care, and that you will
respond to their concerns. Get their support
for the designation and you already will pass a
significant portion of the evaluation.
8. Be honest! Most of the audits and surveys
are completed ethically. However, from time
to time, we come across a deceitful audit
or survey. Our evaluators are shown how to
identify these surveys and audits. When this
happens, we need to respond in the same way
that you would respond to an employee who is
dishonest at work.
Every year, we receive more submission
requests for the Employer of Choice
designation, so we have increased our capacity
so that you will be given the same quality audit
and consideration. You should hear back in
the same time frame as before and continue
to receive a high level of service from your
industry association.
If you have questions about the Employer
of Choice process or require your login
information, please contact Karen Harrison
at [email protected] or at 1.888.436.6112 x
225. All documents must be submitted by
November 30, 2015.
alberta hospitality | 19
FEATURE
IMPROVING STAFF
PRODUCTIVITY
Doing More With Less
by David Swanston
Hospitality managers are faced with the difficult task of maintaining operational
performance, achieving financial targets and delivering superior service in an
increasingly competitive marketplace. Compounding this challenge is the reality
that they must accomplish their objectives with shrinking employee rosters.
20 | alberta hospitality
IMPROVING STAFF PRODUCTIVITY
Increases to legislated minimum wages,
greater pressure to provide a fair living
compensation rate, changes to the temporary
foreign worker program, labour pool
migration away from the hospitality industry,
and increased industry competition are just
some of the dynamics faced by managers
trying to attract and retain good people.
Some positions are more difficult to fill than
others, specifically housekeeping and kitchen
staff.
Operations have to find ways of doing
more with less. Lack of skilled domestic
workers willing to work in less prominent
roles is making it hard to fill vacancies.
Budget restrictions reduce the number of
employees hired and scheduled as individual
compensation levels rise.
In light of this new reality, how can managers
improve the productivity of their teams to
maintain standards? There are a variety of
proven options that can be considered, but
each must be evaluated for its feasibility in
your business.
{
Lean teams must work together, share duties, and be crossfunctionally trained.
Streamline
Reducing operational complexity follows
the “keep it simple” management doctrine.
Simplified processes such as guest check-in
steps, standardization of services and facilities
like common supplies and room setup,
smaller menus, and other efforts to reduce
the range of tasks to be completed will help
improve productivity. Training will take less
time, responsibilities will be easier to learn,
learning curve efficiencies will be accelerated,
and consistency can be promoted.
Automate
Identify suitable technology that can be used
to complement existing staff, or in some
instances, even take their place. Examples
such as online reservations and check-ins,
CRM software, self-monitoring and adjusting
cooking equipment, and automated
parking gates are becoming more common
management tools. While technology can be
a powerful way to reduce labour, overreliance
can result in loss of management control as
well as impersonal guest service experiences.
Staff Training
With employees in smaller numbers, it is
critical that each person is prepared to carry
out their duties in the most efficient and
effective manner. Post-hire orientation and
job training as well as ongoing employee
development are more important now than
they have ever been. Training must go beyond
what employees do by focusing on how they
do it. Teaching staff best practices increases
alberta hospitality | 21
IMPROVING STAFF PRODUCTIVITY
{
Organizations need to think of their
human resource strategy as a longterm commitment to taking alternative
approaches to attracting the right
candidates.
the likelihood that they will be more productive, make fewer mistakes,
and provide better service. It will also reinforce their perception of the
organization as a quality, professional business that is committed to their
employees.
Job Reclassification
With schedules being tightened, boundaries that traditionally defined
job responsibilities need to be dismantled. Lean teams must work
together, share duties, and be cross-functionally trained. There is no
such thing as “It’s not my job”. Instead of traditional titles, employees can
share new job names such as Service Ambassador or Guest Satisfaction
Specialist. These prioritize employees’ broader roles as opposed to a
narrow classification of their duties.
Alternate Sources
Recruiting managers must get creative and strive to identify new pools
of potential employees. These people may not be currently seeking work,
or may not be considering a job in hospitality. Stay-at-home parents who
may want to work a limited number of hours each week, so as to still
be available for their children, are one example. Prior work experience,
22 | alberta hospitality
IMPROVING STAFF PRODUCTIVITY
maturity, and life skills make these parents
very capable employees. Accommodations
may need to be made by employers to allow
for these candidates’ limited availability, need
for last-minute schedule changes, and other
responsibilities. Non-traditional recruitment
activities can be used such as participating in
neighbourhood events or posting notices in
coffee shops and grocery stores.
Participating in school coop programs can be
a valuable source of short-term help, and can
also help an employer evaluate and identify
strong individuals that may be retained as
an employee in the future. Coop also allows
the student participant to learn about the
organization and assess their fit as a potential
future employee. Coop students do require
extensive training and ongoing supervision,
but the investment by management is likely
to yield a long-term stream of qualified
new applicants who have already received
substantial training. Government retraining
programs operate in a similar manner and can
also provide financial incentives to offset the
employers’ costs.
Contract Staff
Temporary employment services are available
for many job functions such as bookkeeping.
Not only do these services help managers
maintain desired staffing levels, workers
supplied often already have a significant
amount of training and are strong performers.
This allows managers an opportunity to
evaluate their capabilities and organizational
fit, and in many situations can lead to offers of
employment. Weak performers do not return as
the organization has limited its commitment.
Outsourcing
When productivity enhancement initiatives
have been exhausted, and efforts to find new
employees have not generated the desired
results, hiring a third party may be necessary.
Options include outsourcing tasks such as room
cleaning to a contract cleaning service, entire
positions such as IT support, or even complete
services such as subleasing foodservice to a
contract caterer or restaurant chain. In these
instances, management must ensure that clear
performance standards are established and
that measures are put in place to monitor
the outsourced partner’s adherence to those
standards. Outsourcing is best suited for less
vital, non-core activities, so that operators can
focus on their key responsibilities.
Managers need to address the immediate
deficiencies or shortcomings of their staff teams.
This can often lead to reactionary decision
making that slows the bleeding, but never
really heals the wound. Regardless of which
initiatives are implemented, organizations need
to think of their human resource strategy as a
long-term commitment to taking alternative
approaches to attracting the right candidates,
creating mechanisms to effectively evaluate
their potential, performance-focused training
and ongoing team development. This vision
will guide program decisions and increase the
probability that the organization will be able
to deliver superior service, while leveraging a
leaner staff contingent.
alberta hospitality | 23
WHAT’S NEW?
by Debbie Minke
Gordon Food Service, the largest family-operated distributor in North
America, has launched its full line-up of laundry and housekeeping
supplies with their GFS InnRoom Program. This program was created
with products such as InnRoom personal amenities, InnRoom beverages,
and housekeeping supplies. It features a stocked inventory and provides
flexible ordering in bulk or single case packs. Ordering your in-room
coffee, paper, plastic, amenity, laundry and housekeeping supplies from a
single distributor is convenient and reduces your environmental impact.
Gordon Food Service partners with many manufacturers of sustainable
products. www.gfscanada.com
UniMac®, a provider of on-premises laundry (OPL) equipment, has
unveiled TotalVue™ Powered by UniLinc™, a cloud-based monitoring
and reporting management tool that helps OPL managers take control
of laundry efficiency. TotalVue provides easy, web-based access to key
laundry operation data and advanced performance dashboard reports,
which can be used to make immediate adjustments that improve
efficiency and minimize costs. www.unimac.com
Town & Country Uniforms has introduced its new UTC57 Collection of
uniforms for hotel front desk and management staff. Classic black, grey,
and pin stripe suits are updated and the grey and brown herringbone
vests add a new dimension to the career collection. www.tcuniforms.com
For the first time in 44 years, Albertans have elected a NDP government.
Rachel Notley was sworn in as Alberta’s 17th Premier on May 24th. Her
caucus includes the highest percentage of women of any government in
Canada.
24 | alberta hospitality
The Top Ten List
Top 10 Ways to Manage Your
Property in Tough Times
1. Don’t panic.
2. Invest in training your staff. Take advantage of
the Canada Job Grant.
3. Renovate while rooms are available.
4. Develop new marketing campaigns.
5. Boost your service levels.
6. Conduct a deep cleaning of the property.
7. Cross-train staff to work in various departments.
8. Create partnerships with local businesses.
9. Research guest expectations and personalize
service.
10. Fine tune all operational systems to maximize
efficiency.
NAMES IN THE NEWS
Summer 2015
by Debbie Minke
Property News
Whitecourt Inn & Suites is now Canadas Best Value Inn Whitecourt. The
Taber Motor Inn has been renamed Econo Lodge Taber, and the Drumheller
Inn is now the Quality Hotel Drumheller. The Nova Inn Hinton is now the
Quality Inn & Suites Hinton. Whitecourt’s Admiral Inn & Suites has been
renamed Whitecourt Conference Centre Suites. Canadas Best Value Inn
Lethbridge is now the Motel 6 Lethbridge.
Hampton Inn by Hilton Edmonton/Sherwood Park has just opened its
doors, offering a quiet lakeside location to business and leisure travellers
alike. Each of the 120 spacious guestrooms and suites feature a microwave,
mini-refrigerator, 40-inch HDTV, a large workspace with multiple power
outlets, and free WiFi access. Guests can enjoy a free hot breakfast, onsite
restaurant, lounge, indoor saltwater pool, a 24-hour fitness centre and more.
People
The Alberta Hotel & Lodging Association is pleased to welcome the new
board of directors for 2015-16, which includes 13 returning directors and
one new director:
Awards
Chair: Steven Watters, Sawridge Inn & Conference Centre, Fort McMurray;
First Vice Chair: Perry Batke, Best Western Denham Inn & Suites, Leduc; Vice
Chair: Leanne Shaw-Brotherston, Country Inn & Suites by Carlson, Calgary;
Robin Cumine, Radisson Hotel Edmonton South; Past Chair: Perry Wilford,
Glenmore Inn & Convention Centre, Calgary; Directors North: Amr Awad,
Holloway Lodging Corporation, Grande Prairie; Shazma Charania, Holiday
Inn & Suites Red Deer; Ken Mealey, Lakeview Hotels & Resorts, Hinton; and
George Marine, Radisson Hotel & Suites, Fort McMurray; Directors Central:
Karen Naylor, Super 8 Edmonton South, Ramada Sherwood Park; Tina Tobin,
Chateau Nova, Edmonton; and Directors South: Chris Barr, Banff Aspen
Lodge; Cory Haggar, Falcon Crest Lodge, Canmore; and Dwayne Stratton,
Holiday Inn Lethbridge.
Congratulations to the winners of Tourism Calgary’s 2015 White Hat
Awards, which include:
Charlotte Bell is the new President and CEO of the Tourism Industry
Association of Canada (TIAC).
Bell has more than 25 years of experience working in regulatory, corporate,
and government affairs, most recently leading corporate affairs strategies for
Atlantic Lottery Corporation.
Pamela Tchida Kupidy has joined the Calgary Hotel
Association (CHA) as Executive Director. Kupidy brings strong
business savvy to the CHA, with 15 years of senior corporate
management experience and over five years of experience in
the non-profit sector.
Green Key Global, a leading environmental certification body offering
a suite of programs and resources designed specifically for the lodging
industry, has received the Responsible Travel & Tourism Forum Innovation
Award. For more than 18 years its flagship program, the Green Key EcoRating Program, has been evaluating, inspecting, and certifying hotels and
resorts based on their commitment to sustainable “green” operations.
White Hat of the Year - Accommodation: The Fairmont Palliser
Best Server Brasserie/Bistro: Rebekah Gotzke, Raw Bar by Duncan Ly at
Hotel Arts
Best Server Café/Diner: Stanca Olelei, Delta Calgary South
Best Culinary Services: Lou Salinas, Sheraton Suites Calgary Eau Claire
Best Restaurant Support Non-Server: Siew Kim Wong, Yellow Door Bistro
at Hotel Arts
Best Guest Service Reservations/Travel: Ashley Grant, Hotel Alma at the
University of Calgary
Best Concierge/Bell Service: Jeff Cobrana, Hyatt Regency Calgary
Best Guest Service Accommodation/Front Desk Agent: Sabine Laicane, The
Fairmont Palliser
Best Cleaning Services: Merman Dollentas, The Fairmont Palliser
Best Back of House: Jelena Pavic, Calgary Marriott Downtown Hotel
GMs on the Move
Sonia Abassah-Oppong, Best Western Airport Inn, Calgary
Sunny Bachhal, Best Western Cedar Park Inn, Edmonton
Jaswinder Bhambra, Raven Motor Inn, Edmonton
Salim Bharwani, Red Deer Lodge Hotel & Conference Centre
Robert Blackwell, Best Western PLUS Westwood Inn, Edmonton
Damien Callaghan, Delta Lodge at Kananaskis
Sean Caron, Days Inn Hinton
Ali Damani, Best Western PLUS South Edmonton Inn & Suites
Kumar Dewan, Ramada Edmonton South
Glen Dressler, Banff Rocky Mountain Resort
Kurt Fonseca, The Juniper Hotel & Bistro, Banff
Cynthia Foster, Paradise Inn and Suites Redwater
Nathalie Frotin, Rimbey Motor Inn
Newton Grey, Capital Suites, Yellowknife
Jocelyn Groleau, Bruderheim Hotel, Lamont Hotel
Jenn Hobson, Ramada Camrose
Anand Hospattankar, Holiday Inn Sherwood Park Conference Centre
Claire Kim, Motel 6 Airdrie
Ted Lang, Days Inn Lethbridge
Cory LeDrew, Overlander Mountain Lodge, Hinton
Murray Lee, O Hotel Suites, Calgary
Jeff Liston, Ramada Hotel & Conference Centre, Edmonton
Frank Marrek, Bear Hill Lodge, Jasper
Joan Martin, EconoLodge Inn and Suites Lethbridge, Super 8 Lethbridge
Stephanie Morlidge, Days Inn Red Deer
Crystal Mytton, Motel 6 Medicine Hat
Joseph Noh, Springs Motor Inn, Wainwright
Tim Ostrem, Delta Lodge at Kananaskis
Martin Pottie, Ponoka Stampeder Inn
Ravi Prakash, Ramada Hotel & Conference Centre
Mike Se, Travelodge Drumheller
Tracey Smith, Sandman Hotel Calgary City Centre
Vicki Smith, The Fox Hotel & Suites, Banff
Muhammad Talha, Hotel Elan, Calgary
Vivian Wagner, Courtyard by Marriott, Edmonton
Jennifer Whalen, Banff Ptarmigan Inn
Lisa Wigg, Sandman Hotel Calgary Airport
Barnie Yerxa, Radisson Hotel Edmonton South
Tanya Yurko, Ramada Cochrane
alberta hospitality | 25
FEATURE
ALBERTA ACCOMMODATION
OUTLOOK
Oil Prices Having Strong Impact on Performance
by David Ferguson
While the majority of the Alberta accommodation
sector grapples with pressing issues including
OTAs, Airbnb and worker shortages, the leading
concern for many owners and operators is the
downturn in oil prices and the question of when
prices will increase.
Photo courtesy of Travel Alberta
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ALBERTA ACCOMMODATION OUTLOOK
David Ferguson, Senior Associate with PKF
Consulting Inc. spoke on this subject at the
Alberta Accommodation Outlook 2015 seminar
at the Alberta Hotel and Lodging Association’s
annual convention that was held in April, in
Banff. The session was sponsored by the Alberta
Ministry of Culture and Tourism - Tourism
Business Development and Investment Branch.
Oil and Natural Gas
Historically, the trade price for both oil and
natural gas have had a significant impact on the
financial fortunes of Alberta, and specifically
on the accommodation sector in a significant
portion of the province. In some areas, including
the Rockies region and in the southwestern
area of the province, the price of oil and
natural gas may have less of a direct impact
on accommodation performance. Nevertheless,
the sector as a whole is being impacted by
the drop in oil prices that commenced in the
summer of 2014. Oil prices fell from a high
of nearly US$107 per barrel in July 2014 to
US$44 per barrel in mid-March 2015. Industry
advisors and associations, such as the Canadian
Association of Petroleum Producers and
the Canadian Association of Oilwell Drilling
Contractors, have projected a significant
decline in the number of oil wells that will
be drilled in Alberta in 2015, and as a result a
decline in the volume of rigs in operation. ARC
Financial, a Calgary-based firm that analyses the
oil and gas sector, has forecast that total capital
expenditures on conventional oil production
will decline in Canada by 45% in 2015 and by
25% on oil sands projects.
Economic Outlook
The majority of financial institutions and
economic forecasters are projecting Alberta’s
GDP growth to be below 1% in 2015, which
is below the forecasted national average, due
largely to the drop in oil prices. The price of oil
is directly tied to royalties for the province and a
significant reduction in capital expenditures on
exploration, drilling, and construction activity.
Job losses are mounting and the cancellation or
suspension of oil and oil sands-related capital
projects has led to lower confidence levels
by consumers and employers, all of which
translates back to concerns of lower travel
volumes and room demand levels in Alberta.
significant drop in room demand in 2015 until
March. This is not projected to continue. The
looming spring breakup period is projected
by many analysts to be the foreshadowing of
a quieter summer in oil production than was
experienced in 2014.
Strong Global Economy
With the negative news about the resource
sector, it should be mentioned that unlike
the 2008/09 period, the global economy is
not embroiled in a downturn. The larger issue
today is the amount of supply globally that
is outpacing demand. The rapid increase in
shale oil production in the US over the past
five years has been a key factor in the supply/
demand imbalance. The significant amount of
supply will mitigate the increase in the price of
oil going forward. Countries heavily involved
with oil production are seeing some negative
consequences, but overall the economic news
is not negative on a global scale. US economic
forecasts generally show that their economy is
continuing to grow at a strong pace, oil price
declines notwithstanding.
Oil Production
Despite the downturn in prices and calls for
lower oil production, the total volume of oil
produced in Alberta will increase for 2015. This
is due to the completion and commissioning
of some oil and oil sands projects and the
expansion at other operations that were well
underway prior to oil prices falling to levels
that are considered below production costs. As
a result, some markets in Alberta did not see a
Increased Tourism
The lower value of the Canadian dollar relative
to the US currency is seen as a positive event for
Canada’s tourism and manufacturing sectors.
The cost of visiting Alberta has declined
for US-based travellers. Alberta’s tourism
marketing specialists are continuing to work
on increasing overnight visitation from both
long established international markets as well
as increasing visitation from emerging markets,
notably China. The majority of forecasters are
projecting Canada to have overall GDP growth
of over 1.5% in 2015, which should support
consumer confidence levels. This in turn would
suggest that consumers have a propensity to
travel in 2015, including to/within Alberta. The
state of the Canadian dollar vis-a-vis the US
dollar may in fact be a barrier to exit, further
supporting travel within Canada.
Investment and New Construction
The strong performance of the accommodation
sector in Alberta over the past two years has led
to considerable interest in investment and new
construction. PKF Consulting Inc. estimates that
over 2,700 new hotel rooms will open across
Alberta in 2015. Nearly one-half of the rooms
will open in the metro Edmonton and Calgary
markets combined. Other projects will open
in a diverse range of locations that include
Peace River, Manning, Red Deer, Fort McMurray,
Whitecourt, Airdrie, Vegreville, Wabasca, Cold
Lake, and Medicine Hat. The majority of new
rooms will be branded with a combination
of both international flags and established,
Canadian hotel chains. The majority of new
properties are Select Service or Limited Service
assets. Of concern to developers and operators
is the continued presence of work camps
throughout the province. With the downturn
in oil-related activity, some camps have
increased vacancy levels and have become
more aggressive in attempts to target demand
sources that frequently utilize hotels.
alberta hospitality | 27
Strong Industry Performance in 2014
PKF Consulting Inc.’s Trends in the Canadian Hotel Industry, National
Market Report showed that overall RevPar performance (excluding Alberta
Resorts) for the full year 2014 improved by 3.0% over 2013 results, largely
due to improvements in average daily rates (ADR). Overall occupancy for
2014 (excluding Alberta Resorts) was at 67.8%, compared with 68.1% in
2013. ADR for Alberta was at $142.98 for 2014, which was a 3.5% increase
over the 2013 ADR of $138.10. Revenue per available room (RevPAR) in
2014 in Alberta (excluding resorts) was at $96.92, compared with $94.11
for 2013.
A month-by-month comparison for 2014 and 2013 showed that as oil
prices began to slide in August 2014, overall RevPAR performance for
Alberta continued to either exceed or equal the monthly results from
2013, even in the month of December.
2015 Forecast
Both January and February 2015 results show a decline in RevPAR,
concurrent with oil prices falling below US$50, and with significant
cutbacks in capital investment and operating activities by oil and oil sands
firms. (See graph)
The occupancy performance in 2015 in both Calgary and Edmonton’s
accommodation sectors will be impacted by a combination of the
downward pressure on room demand levels and concurrently strong
increases in guestroom supply. Accommodation operators will try to
avoid significantly discounting room rates and the resultant negative
impact on RevPar performance. Several other markets throughout Alberta
that will see increases in room inventory in 2015 will also be impacted by
lower room demand levels resulting from cutbacks in oil-related activities.
Similarly, bottom line results for hotels in Alberta in 2015 are projected
to suffer from the declines in top line performance. The other issues that
are impacting owners and operators mentioned at the outset (i.e. OTA
commissions and worker shortages) are also projected to have some
impact on financial operating performance. For 2015, PKF Consulting Inc.
is projecting that Adjusted Net Operating Income (ANOI) Per Available
Room in Alberta will decrease by nearly 15%, from a 2014 estimated
ANOI of $19,300 Per Available Room to $16,500 Per Available Room in
2015. Over the longer term, PKF Consulting Inc. is projecting that with a
recovery in oil prices to levels that will encourage stronger investment in
the oil and oil sands sector, the performance of Alberta’s accommodation
industry will also improve.
Source: PKF Consulting Inc. with reproduction and use of information subject to
PKF Disclaimer and Restrictions as detailed at www.pkfcanada.com
, 24
ADVERTISERS
AHLA (Tourism Works)
Alberta Blue Cross
Alberta Hospitality Safety Assn Alberta Laundry Systems
Alberta RFP
Buhler Hospitality
Colliers International Realty
Coronet Equipment
DeFehr Furniture
Fusion Woodworks
Image Distributors
Jani-King of Southern Alberta
LivClean Corporation (EcoStay)
28 | alberta hospitality
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IFC
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McCallum Printing Group
Northern Feather
Oaktree Carpets
Patio Frontiers
RONA Inc
Sealy Canada
Serta Mattress
Shaw Communications
Sirius XM
Superior Quilting
Western Cdn Hotel Investment
Conference
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2015 AHLA Convention & Trade Show
The theme of the 95th
Annual Convention and
Trade Show - Tourism
Works - underscored
the important role our
industry plays in diversifying
Alberta’s economy.
Gold Key Award winner Sin Nao, Night Audit
Ambassador, Campus Tower Suite Hotel
Housekeepers had fun at the
Housekeeping Awards reception.
Roaming interviews generated funny stories
at the Housekeeping Gala.
Past Chairs of the AHLA
Mike Shymka accepts Life Membership
in the AHLA.
Housekeeping Award winner Arafath Usman Ali
delivers a heartfelt acceptance speech.
Peter Parmar accepts an Inukshuk in recognition of
his service on the AHLA’s Board of Directors.
The Town Hall session addressed ongoing
labour challenges in the industry.
Delegates saw new products at the
Trade Show, sponsored by Onity.
Business session topics ranged from emergency
evacuation to revenue management.
alberta hospitality | 29
AHLA’S PROGRAMS
Manage Your Online Reputation with TrustYou
It’s a known fact that online travel reviews are an important factor in the
success of a property. There are plenty of stats out there that show that
good online reviews have a positive impact on travel booking decisions. In
fact, this year in a TrustYou study, it was uncovered that not only do review
scores influence travellers’ decisions; positive reviews actually correlate
with a potential guest’s willingness to spend more.
Insufferable Internet
To help hotels determine where to invest dollars that will directly affect
travel review scores, TrustYou analyzed over 20 million verified hotel
reviews globally in categories that included service, room, and food. This
allowed TrustYou to understand which categories had the biggest impact
on scores, and whether there are takeaways for hotels to consider when
improving facilities and services.
Bathrooms & Beds: Rampant In Negative Reviews
Hottest Hotel Issues: Service, Room and Location
Travellers mention these three hotel attributes more than anything else in
both positive and negative reviews. Consider them to be pre-requisites for
a guest to have a positive overall hotel experience.
That said, among these attributes, service has the biggest impact in score
between the negative and positive reviews analyzed. In negative reviews,
service receives an average score of 28.5 out of 100, compared to 88.1 out
of 100 for positive reviews. This large score difference shows that service
is a key area that needs to be fixed when a hotel receives an influx of
negative reviews.
While not the most mentioned aspect about hotels, Internet receives
some of the lowest scores among both positive hotel reviews and
negative hotel reviews.
Negative reviews are 2.24 times more likely to contain mentions of the
bathroom compared to positive reviews, so if this is a known problem area
in your hotel, fixing it should directly impact your travel review scores.
Upon analysis, it was found that the biggest complaints about hotel
bathrooms were bathroom size and cleanliness.
Negative reviews are also nearly twice as likely to mention beds compared
to positive reviews. Addressing issues with your uncomfortable mattresses
or investing in new linens will almost certainly improve your travel reviews.
Food and Breakfast: Boost Positive Reviews
When done right, food and breakfast can be real crowd pleasers. Breakfast,
for example, is nearly two times more likely to be mentioned in positive
reviews, and both food and breakfast have large differences in score
between positive vs. negative reviews (both over 40 percentage points).
Improving food and breakfast offerings may therefore help boost overall
hotel scores.
Price/Value: When it’s good, it’s really good. When it’s bad, it’s really
bad.
While price/value has nearly the same amount of mentions in both
positive and negative reviews, it has one of the largest differences in
scores (49 percentage points). At the end of the day, if guests feel they
received a good value, it can have a positive impact on score.
Takeaways for Hotels
Having a balance between price and value may be the easiest way to
immediately address guest concerns. Ensure that you have properly
trained staff, so that service is friendly and professional. Beyond service,
be honest about the shortcomings your property has and try to adjust
your rates to meet guest expectations until you can make fundamental
facility improvements.
While location may seem like a fundamental issue that can’t be fixed, there
are steps you can take to improve your hotel’s location scores. Consider
providing better transportation or finding ways to make your hotel
quieter if your location is noisy. Most importantly, be honest and upfront
about your location before guests arrive.
When you’re ready to deal with property issues, start with mattresses,
rooms/bathrooms, and food, and you should start to see better review
scores - perhaps you’ll even be able to adjust your rates accordingly. Look
at your reviews to drill down to specific complaints about your rooms
to determine if something simple like fresh paint might improve the
experience.
Finally, track it all. Monitor your reviews throughout the year to track
changes in guest attitudes about your hotel. It will pay off.
To find out how to make reviews work for you, contact Jordan McKay at
[email protected] or 1.888.436.6112 x 248.
30 | alberta hospitality
“Shaw fixes WiFi
problems before
we even know
about them.”
Spencer Villam, General Manager
International Hotel Suites
Better WiFi means better reviews.
With dedicated in-room guest WiFi speeds up to 15 Mbps and
reliable connectivity in common areas, your guests can surf, stream,
and download to their heart’s content. Choose Shaw for reliable,
hassle-free WiFi solutions your guests will thank you for.
Call us at 1-855-890-2542 or visit business.shaw.ca/hospitality
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