In-Room Entertainment - Alberta Hotel and Lodging Association

Transcription

alberta
hospitality
The Official Magazine of the Alberta Hotel and Lodging Association
Spring 2013
Alberta
Alberta Properties
Properties Find
Find Their
Their
PERFECT NICHE
HOTEL DISCOUNTERS
PM40026059
In-Room
Entertainment
Changing Expectations
ADD GREAT
ENTERTAINMENT
TO THE MIX
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alberta
hospitality
Photo courtesy of Delta Hotels
this issue
6
IN-ROOM ENTERTAINMENT
These days, different types of properties
are coping with a wide range of
challenges when it comes to keeping
travellers entertained during the time
spent in their rooms.
14
in every issue
4 Chairman’s Report
5 President &CEO’s Message
12 Alberta’s Treasures
17 Travel Alberta
36 What’s New?
37 Names in the News
38 Member Value Program
Alberta Properties Find Their
Perfect Niche
Management
18 Keeping Students Safe
18 The Wagon Wheel Motel
22 Canadian Travel Intentions
23 Protecting Cardholder Data
24 Fraud: A Fearsome Foe
29 Travel Trends in 2013
30 Hotel Discounters
34 US Travel Intentions
35 Calgary Stampede Success
36 Story-Telling and Destination
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
Perry Wilford
FIRST VICE CHAIR
Steven Watters
VICE CHAIR
Michael Sieger
VICE CHAIR
Tina Tobin
PAST CHAIR
Mike Shymka
PRESIDENT & CEO
Dave Kaiser, CHA
DIRECTORS NORTH
Amr Awad
Mark Perry
Tony Verbisky
DIRECTORS CENTRAL
Perry Batke
Robin Cumine
DIRECTORS SOUTH
Joseph Clohessy
Mark Hope
Marc Rheaume
Leanne Shaw-Brotherston
by Perry Wilford
A Seat at the Table
There is an ebb and flow to politics, where it
can seem that change is the only constant.
That ebb and flow presented our industry
with a new Minister just a few weeks ago.
In a pre-budget cabinet shuffle Premier
Alison Redford appointed The Honorable Dr.
Richard Starke as Minister of Tourism, Parks
and Recreation. Along with our CEO, Dave
Kaiser, and Industry & Government Relations
Manager, Tracy Douglas-Blowers, I went to
meet with our new Minister just a week after
he was sworn in.
I cannot overstate to our members the value
of having a strong relationship with the
people who serve us in government. We are
sometimes challenged to ensure our industry
issues are understood and acted upon. We
can’t always expect to get everything we
want, but there is just no substitute for
having a seat at the table when important
issues are being discussed. Having a Minister
who understands the ebb and flow of the
hospitality and tourism industry is also critical.
Our meeting was scheduled for 30 minutes
but it lasted over an hour. The Minister was
curious about the value of the Tourism Levy to
our industry as well as the role of Destination
Marketing Fees. And while he had many
questions for us, he was obviously well up
to speed on many of the key issues that
affect our industry. We impressed upon him
the very real labour shortages our members
struggle with and the need for an evolving
and effective strategy to address it. We talked
about the success we have seen from using
the 4% Tourism Levy to market Alberta as a
tourist destination, and the need to ensure all
of those dollars continue to go into product
development and marketing. We also shared
the work the AHLA has done to support
transparency and accountability of DMFs in
Alberta.
So what did we take away from the meeting?
Dr. Starke is undeniably enthusiastic about
the great ‘pockets’ of tourism products
around Alberta. And while he recognizes
the importance of iconic attractions like
the Rockies, the Calgary Stampede, and the
West Edmonton Mall, he was just as excited
about Camrose’s Bailey Theatre, the Medalta
Historic Clay District, and Whitecourt’s annual
snowmobile rally. There was no question in
our minds that this Minister wants visitors
to experience everything that Alberta has to
offer.
We have a Minister of Tourism who
is passionate about this portfolio. He
understands tourism’s potential benefit
to our economy, and recognizes that the
key to success is a strategic and aligned
approach to tourism marketing. Dr. Starke
clearly understands that collaborating with
the AHLA and other industry partners is key
to long-term success. And that’s a table we
are happy to have a seat at.
DIRECTOR, CAMPGROUNDS
Chris Eklof
Alberta Hospitality is published quarterly by:
PUBLICATIONS
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UPCOMING ISSUE
Summer 2013
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Closes May 24
Publishes July 5
Alberta Travel Outlook
Trends to Self-Service
Balancing Labour Costs & Guest Experience
Design Trends
Call 1-800-667-0955 to reach 2,300 buyers
who are sourcing new products.
PRESIDENT & CEO’S MESSAGE
Provincial Update
An unexpected deficit of $4 billion, a minor
cabinet shuffle, and a new direction for
gaming and liquor - these are important
issues that will impact Alberta’s tourism and
hospitality industry. As the voice of industry,
the AHLA is focused on the threats and
opportunities these issues may present.
The negative impact of the “bitumen bubble”
on resource revenue is a major challenge.
Greater fiscal discipline through results-based
budgeting, austerity, and alternative revenue
sources like a provincial sales tax are all part
of the discussion. Every dollar of revenue
- including the Tourism Levy - and every
expense will be scrutinized. Ensuring the
Tourism Levy remains dedicated to tourism
marketing and product development is a top
priority for the AHLA.
Much work has been done on a new tourism
framework that will align Travel Alberta,
Alberta Tourism, Parks and Recreation, the
Strategic Tourism Marketing Council (STMC)
by Dave Kaiser
and industry behind a shared vision. We
expect to see recommendations that will
enhance STMC’s relevance and effectiveness
as part of the new framework. Dr. Richard
Starke, the new Minister of Tourism, Parks and
Recreation, will undoubtedly have input and
will ultimately be responsible for all major
changes to Alberta’s tourism strategy going
forward.
Deputy Premier Thomas Lukaszuk was
appointed Minister of Enterprise and
Advanced Education. This department
is critical to our industry as it funds post
secondary institutions and is responsible for
labour and immigration. Given the Minister’s
past experience with labour and immigration,
we are optimistic that the Alberta Immigrant
Nominee Program (AINP) will continue to be
responsive and accessible for our industry.
Bill Robinson, the new President and CEO of
the Alberta Gaming and Liquor Commission,
has created a new stakeholder advisory
committee to provide input on strategy and
policy. The people and topics of discussion
at the first meeting were very different from
meetings the AHLA has attended in the past.
Based on the discussion, I believe we will see
a more entrepreneurial and growth oriented
direction for gaming and liquor, balanced
with social responsibility, in Alberta in the
future.
It is vital that our industry has the opportunity
to provide input on strategies and policies.
I can assure you that the AHLA has and
will continue to engage with government
to support our members and strengthen
Alberta’s tourism and hospitality industry.
We look forward to serving you!
alberta hospitality | 5
COVER
STORY
In-Room Entertainment
by Carol Schram
Not so long ago, hotel entertainment was simple stuff. For the most part, travellers
were content with having access to basic TV channels, a 24-hour news channel, and
a variety of pay movie options.
Photo courtesy of Hyatt Regency Calgary
6 | alberta hospitality
T
hese days, different types of
properties are coping with a wide
range of challenges when it comes
to keeping travellers entertained
during the time spent in their rooms. Broadly
speaking, the key objective is “better than
home.”
“Guests are now more interested in streaming
their own content from the Internet,”
says Grant Erickson, director of sales and
marketing at the Delta Calgary South Hotel.
“This gives them the full flexibility to watch
what they want, when they want. The quality
of everyone’s experience at home has
improved so drastically in the last 10 years
that they expect something similar in a hotel:
fast Internet, big TV, HD programming, and
connectivity for their devices.”
Guests are now travelling with portable
entertainment units like laptops, tablets,
and smartphones that house movies, music,
games, and access to streaming services like
Netflix. At the very least, they want to be able
to easily link their devices into the hotel’s
system and enjoy their entertainment on the
flat-screen TV or in-room audio player, just
like they do at home.
{
Courtesy of Delta Hotels
Guests are now more interested in streaming their own
content from the Internet.
Delta Hotels are accommodating their guests’ wishes with an extensive
room redesign, called ModeRoom™. As Erickson explains, “This new
design provides spaces that are modern, adaptable, and laden with
technology features including the SmartDesk™, a fully-wired, multipurpose area that provides guests with a clutter-free space, built-in
power and a connectivity dock that easily links your laptop and mobile
devices to the flat screen high definition TV.”
Photo courtesy of Delta Hotels
{
In-room televisions are also on their way
to becoming central communication
portals in many properties.
All Eyes on the Internet
Hotels across the spectrum are making improvements to provide the
connectivity technological devices require. Delta Hotels claim to offer the
fastest Wi-Fi of any hotel chain in Canada, and as director of operations
Cole Millen of the Delta Lodge at Kananaskis clarifies, wired broadband
alone is no longer enough. Other
“With the adoption of smartphones, tablets,
and laptops, more and more guests now require Wi-Fi.”
Marriott
In the past year, properties from the Super 8 Hotel Edmonton South to
Western
Whistler’s Inn inBest
Jasper
have also made improvements to their Internet
speed and connectivity throughout their facilities.
TV is Key
IHG
Hilton
The centrepiece of every in-room entertainment
system is its television.
These days, TVs are bigger, flatter, sharper, and usually offer channels in
high definition. “Entertainment is not our highest priority, since it’s not
generally a major reason why guests choose to stay with us,” explains
Vanessa Hugie, general manager of Whistler’s Inn in scenic Jasper.
Nevertheless, changing expectations can’t be ignored. The property
plans to finish upgrading all of its rooms to plasma flatscreen TVs in the
near future. At the Super 8 Hotel Edmonton South, television upgrades
are expected to be complete by the end of this year.
At the Hyatt Regency Calgary, 37 inch LCD televisions have been standard
for a couple of years, so the attention is being turned to programming.
“People are now accustomed to seeing things at home in hi-def, so last
year we upgraded most of our channels to HD,” describes Bryan Flood,
the property’s director of rooms.
Now every room can
have a great view.
Give your guests an unforgettable stay with Bell TV. They’ll get stunning HD picture
quality that is up to 10x better than regular cable in every room. And you’ll get flexible
solutions, such as a customized programming guide with more than 100 HD channels
to choose from. Couple that with personalized hotel channels that advertise your
services and your experience will be five star, too.
Visit bell.ca/greatview or call 1 877 543-2069.
Hi-Tech Wellness Solutions
Future Focus
The Hyatt Regency Calgary has also augmented their 24-hour fitness
centre with new fitness options offered through their in-room pay-perview system. “It’s similar to the way you would order a movie,” shares
Flood. “There are workout programs and yoga programs that you can
view directly from your TV and do right in your guestroom. We have
yoga mats available that can be delivered to your room as well as some
small hand weights, jump ropes, resistance bands, and things like that. A
lot of travellers like to have the privacy of their own room, and if you’re
choosing to do something like yoga, it’s a bit of a better atmosphere.”
In-room televisions are also on their way to becoming central
communication portals in many properties. Customized programming
and promotional channels are common, and TVs have become more
interactive, allowing guests to order room service, book spa or golf times,
or complete their checkout simply by using the in-room remote.
The Technological View
Andrew Chelbus is the senior national sales manager for the business
solutions division (hospitality) for LG Electronics Canada. He agrees that
hotels are generally looking to provide the “better than home” feeling.
Key features on wish lists include sleek designs and functionality for
all possible uses and environments. “Whether the hotel wants to use
cable, video on demand (VOD), or satellite, the TV needs to be able to
be installed seamlessly and adapt to any future technology,” explains
Chelbus.
In terms of television offerings, demand for pay-per-view movies and
games from traditional industry providers is on the decline. Video
on demand from cable and satellite providers can provide a viable
option that allows the property more pricing flexibility, while customer
expectations continue to grow for more cable channels and more
high definition. Advances in green technology mean televisions with
environmentally-friendly footprints are being introduced, and 3D TV is
just around the corner.
In addition to interactive television, handheld devices will also play a big
role in the future. Some properties now provide their own smartphones
or tablets to guests upon check-in, with apps that can help to control
room features, provide information, and facilitate communication.
Another possibility could be integrating a hotel’s custom app into a
guest’s own personal device, so they can use their phone as a room key
and also control everything from blinds to the thermostat, lights, and
television as well as provide direct connection to the front desk and the
property’s other services.
Down the road, “I would expect to see more services offered through
tablets and smartphones, coupled with more interactive features on the
television,” projects Millen.
Erickson predicts, “It will become standard to offer full HD programming,
42 inch TV or larger, and the ability for guests to choose the programming
at their convenience and hook up any device easily to view their own
programming.”
With technology having evolved so rapidly over the last few years,
it’s not easy to stay ahead of the curve. Check with your suppliers
about technological advances so you can incorporate them into future
upgrades.
Suddenly,
every room is the
penthouse suite.
Give your guests the five-star treatment.
Shaw Business can take your service offering to the next level.
•
Internet
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Merge your corporate voice,
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TV
Impress your guests with amazing
HD content plus the best picture
and sound quality around – select
the programming that best works
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•
Phone
Enhance your service offering
and reduce costs – we can utilize
your current setup, or implement
a new solution
Ready to make the most of every room?
Call us today at 1 877 SHAW BIZ (742 9249) or visit shaw.ca/business
ALBERTA’S TREASURES
Glacier Skywalk
No visit to Alberta’s Rockies would be complete
without a drive along the spectacular Icefields
Parkway. Astride the Continental Divide, the
325 km² Columbia Icefield is surrounded
by some of the highest mountains in the
Canadian Rockies. It feeds eight major glaciers,
including the famous Athabasca Glacier, and its
meltwater feeds rivers and streams that empty
into the Arctic, Atlantic and Pacific Oceans.
Indeed, a view of the entire Columbia Icefield
necessitates a helicopter and a fat wallet, so
the vast majority of visitors enjoy glimpses
of several glaciers from the scenic Icefields
Parkway and a stop at the Columbia Icefield
Discovery Centre, which faces the Athabasca
Glacier. Though the Athabasca Glacier has
receded dramatically since 1844, during
summer months visitors can travel onto the
ancient ice on “Ice Explorers” - 56-passenger
Terra Buses specially designed with six extralarge, low pressure tires to travel on snow or ice
with minimal damage to the glacier.
Soon there will be an exciting new way to take a
look at this spectacular natural scenery. 6.5 km
north of the Columbia Icefield Discovery Centre
a new attraction called the Glacier Skywalk
is scheduled to be completed in September.
by Debbie Minke
Brewster Travel Canada is developing this
stunning world-class, fully accessible unique
viewing experience in Jasper National Park,
which will provide an immersive, interpretive
guided experience for visitors.
The Glacier Skywalk consists of a 400 metre
interpretive boardwalk and a glass-floored
observation platform. Visitors will arrive at
the site via a free shuttle bus ride from the
Columbia Icefield Discovery Centre. From
there, they will have the option to observe
the stunning landscape from the free public
viewpoint or to purchase an admission ticket
for an interpretive walk along The Discovery
Trail that leads to the breathtaking views of The
Discovery Vista.
The Discovery Trail is a guided interpretive stroll
along a 400 metre walkway, overlooking the
Sunwapta Canyon, which contains interpretive
stations highlighting the ecology, geology,
glaciology, aboriginal history, and social history
of the area. It leads to the Discovery Vista,
the glass-floored observation platform that
extends 30 metres over the Sunwapta Valley,
offering a unique opportunity to engage with
the dramatic landscape.
Brewster is working closely with Parks
Canada to ensure environmental stewardship
and preserve the ecological integrity of the
area. Since the location is already a public
viewpoint along the highway (Tangle Ridge),
environmental impacts are expected to be
minimal.
The combination of the Glacier Skywalk with
the existing Columbia Icefield Discovery Centre
and Glacier Adventure will create a collection
of visitor experiences along the Icefields
Parkway that will serve as a draw for local,
regional and international visitors. Persons of
all ages and mobility challenges will be able
to experience the Glacier Skywalk, one of the
few opportunities for a barrier-free wilderness
experience in the mountain national parks.
The Walk’s architectural design won the
prestigious Future Projects Competition by
the World Architecture Festival, and has been
described as “enhancing rather than shrinking
from the epic landscape.”
For more information, please call 1.888.824.6211 or visit LGcommercial.ca
FEATURE
Alberta Properties Find Their
Perfect Niche
by Joanne Sasvari
When Bellstar Hotels & Resorts’ Canmore properties decided to
support local ski-cross star Brady Leman, they created a special
fundraising accommodation package and figured it would appeal
to a small niche of passionate skiers. They were wrong.
Photo courtesy of Travel Alberta
Alberta Properties Find Their Perfect Niche
“I
t’s really almost anyone. We thought
it would be the skier, but it’s not,” says
a delighted Ralf Strub, the company’s
president and chief operating officer.
“It was definitely designed for people that
were interested in sport, but it has gone way
further. It’s working fantastically.” Strub adds,
“That’s the way niche marketing is going. If
it’s really right for a group of people, then
you hit the nail on the head and it just goes.”
There was a time when a property could attract
new business just by putting nice sheets on the
beds and fancy amenities in the bathrooms.
These days, that’s the minimum guests expect.
Consumers are savvier, better travelled and
more value-conscious than ever before. They
also have much higher expectations. As Lori
Cote, the Western Mountain regional director
of public relations for Fairmont Hotels
& Resorts, notes, “People are looking for
experiences.” That’s where niche marketing
comes in.
Selecting a Niche
There are all sorts of niches, and all sorts of
ways hotels, inns, resorts, and B&Bs cater
to them. It could be as simple as offering a
pet-friendly room and doggie treats to guests
who like to travel with their four-legged
companions. It could mean providing reserved
parking, cleaning stations, and complimentary
lip balm for motorcycle travellers, the way
North America’s Best Western hotels do. Or
it could mean creating special programs for
guests, such as outdoor adventures, culinary
classes, or creative experiences.
The Fairmont Banff Springs Hotel, for
instance, offers a variety of packages
including the opportunity to interact with
an artist in residence or to take part in an
eco-hiking adventure to beautiful Sunshine
Meadows. “One package isn’t going to speak
to everybody,” Cote notes. “The artist-inresidence speaks to a really niche market,
and is very different from the eco package
we’re offering, which is more family friendly.
It’s taking the experiences that are available
in the destination and tying them into the
resort.” After all, she points out, getting people
involved in the destination “goes to the heart
of why people come to these resorts.”
Strub agrees. “It’s not about the hotel by itself.
We are part of the destination and the stronger
the destination performs, the better we will all
perform,” he explains. “This business is not a
one-property game. It’s a destination game.”
Brady Leman photo courtesy of Bellstar Resorts
Alberta Properties Find Their Perfect Niche
Niche marketing is also a way to connect guests with the community
they’re visiting. In Canmore, Bellstar’s Solara Resort & Spa is home to
the only theatre in town, so locals and guests can connect through their
love of cinema. As a result, Strub says, “We can include community and
we can share the community with the guests.”
Creating an Experience
What it comes down to is the importance of experiences; after all, the
better the experience, the more likely guests are to come back. “People
want to take home more,” Strub describes. “They’re looking for some
depth in where they’re going. They’re looking at creating memories,
for sure.”
The key to developing a niche market, according to Cote, is understanding
that people want a program designed around them. She suggests looking
carefully at your customers, their demographics, and their interests, then
figuring out a way to make it easy for them to get the most out of their
experiences.
Cash In on the Benefits
If you make the effort, the returns can be phenomenal. For one thing,
appealing to niche markets can fill rooms during the slower times of
year. At Canadian Rocky Mountain Resorts, for instance, creating crosscountry and downhill ski packages saw most of the three resorts’ rooms
occupied even in the doldrums of February. Meanwhile, Elkwater Lake
Lodge and Resort created real excitement in the usually sleepy winter
months with its popular geocaching snowshoeing tours in Cypress Hills
Provincial Park.
It can also attract a lucrative customer base that may otherwise be
underserved, which is why Fairmont is looking keenly at the motorcycle
traveller, who tends to be a freewheeling baby boomer with a love
of adventure and money to spend. “We see a lot more of that kind of
traffic, especially when you have a drive like the Icefield Parkway,”
Cote notes. The resorts are looking at creating food and wine packages,
hiking adventures, and special tours for this segment of the market. “It’s
speaking to how you can have this amazing journey, and how you can
tie in these iconic attractions along the way.”
{
It’s taking the experiences that are
available in the destination and tying them
into the resort.
Boost your PR
Niche marketing can also create a huge spin-off in public relations
benefits. Just ask Chris Williams, the innkeeper at Mount Engadine Lodge
in Canmore. Six years ago, the inn organized a concert called “Music
in the Meadow” for its music-loving guests. It has since evolved into
a whole series of concerts featuring dozens of acts, including several
Juno Award nominees or winners. Last year, several of the performers
recorded a CD of original songs called “The Engadine Sessions: Come
to the Mountain”. They promoted the CD on a concert tour throughout
Alberta; even better, the CD has been heavily featured on both CKUA
and CBC Radio.
“This niche market has resulted in winter bookings for 2013 being up
over 30% on the books over last year with a large percentage of that due
to the ongoing exposure of the music and the CD,” Williams says. “This
summer’s concerts are almost 75% full already, and we continue to get
airplay on CBC and CKUA. Every time they mention the CD, Mount
Engadine Lodge gets some more great PR!”
Bellstar has experienced a similar result with its Brady Leman package
over the past two years. In the accommodation price, they include signed
memorabilia, a welcome letter from Leman and, if he’s training in the
area, a chance to meet with the athlete. A percentage of the proceeds
returns to Leman, to help him get to competitions like the Olympic Winter
Games in Sochi. “It’s really personal attachment to a local athlete,” Strub
describes. “It’s connecting with a Canadian athlete and also participating
in activities with him in the area.”
The result of this package has been phenomenal, far greater than anyone
expected. So far, Leman has received far more money than he had
requested. Revenue and bookings are up at the resorts too. While Bellstar
has seen no drop in its regular ski packages, the Brady Leman package
has just exploded. “It’s significant,” Strub says. “It’s win-win-win.”
TRAVEL ALBERTA
Driving Tourism for Alberta
by Bruce Okabe
Travel Alberta is pleased to release our fourth strategic business and
marketing plan since becoming a Crown corporation in April of 2009. Our
strategic roadmap has been clear and consistent since 2009 and we are
focused on inspiring the world to stay in our destinations and experience
all Alberta has to offer.
For 2013-2016, Travel Alberta’s actions and activities will continue to
support the following objectives outlined in our strategic plan:
1. Bring the Brand to Life
2. Defend and Grow the Business
3. Mobilize Industry Stakeholders
4. Drive Organizational Excellence
The tourism industry in Alberta is building momentum. For three straight
years, Tourism Levy revenue has grown more than 10% per year (2010
to 2012). We expect total visitation to increase approximately 5% and
expenditures to increase 6.8% or about $530 million between 2011 and
2013. This is significant progress for Alberta and the foundation for our
marketing approach in 2013-2014.
In 2012, many Alberta tourism operators experienced their best year
since the global recession in 2008. According to Alberta Tourism, Parks
and Recreation, the indicators look good with increases in provincial
hotel occupancy and average daily room rate revenue up 3.7% and 5.4%
respectively compared to the same period in 2011; traffic increases of
approximately 7% at both Edmonton and Calgary international airports
year-to-date; historic site and museum visits up 7.2% in 2012; and
employment in the accommodation, food and beverage sector increased
5.2% in December 2012, compared to December 2011.
Destinations around the world are beginning to understand that tourism
provides a direct benefit to their economy and everyone is vying for
marketshare. In an age of hyper-messaging, the customer is overwhelmed
with travel choices. Travel Alberta’s job is to identify markets with great
potential, inspire travellers with compelling invitations, and make it easy
to purchase an Alberta experience.
Economically, we are starting to see recovery in the US - our largest
source of non-domestic tourism. Eurozone issues remain in Europe,
which hinder our efforts in the UK and Germany in the short term. We are
also keeping a watchful eye on Japan and monitoring its economic and
currency strategy. Our work continues with high hopes for a direct flight
from China into Alberta in 2013-2014.
Since 2009, Alberta has seen growth in annual airline seat capacity
of 2.2%. Air access is critical to our future tourism growth and Travel
Alberta’s efforts have paid off with increased air access from the
Netherlands, Japan, and Germany.
Albertans travelling in Alberta make up approximately 63% of tourism
expenditures for our province, and we are at risk to losing these travellers
to our competition. Reminding Albertans about experiences in their own
backyard is critical to the success of our Canada marketing strategy. We
are committed to developing strong partnerships with Alberta operators
to strengthen their marketing efforts and connect customers to the
experiences they have to offer.
We are making an impact on Albertans with (remember to breathe) - a
simple and powerful statement about our destination, both for residents
and visitors. This is an emotive selling proposition that shares deeply
personal and intensely emotional Alberta moments with our customers.
We will continue to capture imagery and stories from all corners of the
province to build on our brand promise of goosebump moments for
travellers.
Incremental revenue for the province will come from activities in
targeted core and emerging international travel markets. Travel Alberta
partners with the Canadian Tourism Commission (CTC) in our key
international markets to maximize marketing efforts and leverage the
influence of Canada’s brand.
It’s clear that revenue gains will be more difficult to achieve with our
competitors - like Destination BC and Brand USA - gunning for Alberta’s
marketshare. We need to keep Albertans travelling in Alberta, while
at the same time, bringing new dollars into the economy by inspiring
international travellers to choose Alberta as their vacation destination.
Against this backdrop, the CTC faces significant budget challenges; as
Canada’s global presence continues to drop, so will Alberta’s.
The good news is that our business and marketing strategies are strong
and Alberta’s tourism industry is resilient. Travel Alberta will boost
(instead of stand behind) the hospitality industry and our tourism
operators in their marketing efforts for 2013-2014 with $7.3 million of
co-operative marketing dollars available to Alberta-based marketing
partnerships and travel deals populated on travelalberta.com using the
Alberta Tourism Information Service (ATIS) platform.
If we collaborate and work together as TEAM ALBERTA we can withstand
the challenges the future has in store.
Travel Alberta’s 2013-2016 business and marketing strategy is available
online at www.industry.travelalberta.com.
KEEPING STUDENTS SAFE
by Barbara Malacko
A strong orientation program will:
•
•
•
•
•
•
•
•
Provide job-specific safety training before any work is assigned;
Teach emergency procedures before any work is assigned;
Pair young workers with experienced, safety-conscious workers;
Ensure that everyone follows the safety rules;
Instruct staff regarding how to report unsafe conditions or health
hazards;
Explain why it’s important to report a hazard or injury immediately;
Reward workers who make workplace health and safety a priority; and
Showcase the trainer - leading by example - wearing protective
equipment and demonstrating safe work habits.
Additional Safety Training
Providing a proper orientation is one key element to helping a young
worker remain injury free. Other factors include adequate training,
supervision, reinforcement, and an open line of communication for
any questions they may have. Remember, a young worker may not be
comfortable asking questions (they want to impress you), so be sure that
the new employee can answer each of the following questions:
Are you ready to hire your summer students? What can you improve on
from last year?
Hiring summer students goes beyond the interview process and
surviving a summer with as little absenteeism as possible. It also involves
seriously considering the risk of a student sustaining an injury during his
employment with you and what steps you can take to reduce the risk of
a workplace incident.
1. Who should I go to if I have a safety question?
2. What are the risks and dangers of my job?
3. When is my safety training?
4. What safety equipment should I use?
5. What do I do if there is a fire or emergency?
6. Who should I go to if I am hurt at work?
Top Training Techniques
Hotel workers aged 15-24 years accounted for 23.8% of lost time claims
in 2012. The reasons for this high percentage of injuries include:
75 % Practice by doing
50% Discussion Group
• Over 50% of young workers reported they had not received training
before starting a new task.
• Young workers tend not to ask questions.
• They lack an understanding of their rights as workers.
• They’ve been given more dangerous jobs than they are qualified for.
• Youth feel invincible.
• They’re distracted at work.
• The fast pace of work.
Many of these issues are within your control.
30% Demonstration
20% Audio-Visual
10% Reading
5% Lecture
Orientation
Clear communication through an orientation program, will help new
workers understand how to carry out the tasks within each job. It will
reduce their need for improvising on the job, and can reduce their level
of frustration from not understanding.
Resources to get you started can be found at:
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The Alberta Hotel Safety Association website at www.ahsa.ca,
or email [email protected].
www.bloodylucky.ca
www.wcb.ab.ca
www.worksafe.alberta.ca
Barbara Malacko is Executive Director of the Alberta Hotel Safety
Association and can be reached at 780-702-3059 ext. 254, 1-800-649-1242
or [email protected]
Congratulations
Recognizing Excellence – Inviting
Success
alberta hospitality
| 19
PROFILE
Wagon Wheel Motel
Western Hospitality at its Best
by Terri Perrin
T
ravellers and business
people in central
Alberta can find a
‘home away from
home’ at the Wagon Wheel
Motel in Killam. The 18-unit,
two suite, one-story motel has
been a fixture in this small
town of 1,000 people since
1964. It has been owned and
operated by Jim and Adele
Clark since 1991.
Both Adele and Jim were
born and raised in Killam,
and they wanted to be able
to raise their children in the
community they loved. Adele
had previously worked at a
bank, and when her children
were young, she gained
management
experience
by managing a seniors’
apartment building. Jim is a
journeyman electrician, and in addition to helping run the
motel, he owns and operates Banjo Electric Ltd.
“My father-in-law was an entrepreneur and my father is a
farmer,” explains Adele. “Since both of our families have run
businesses, Jim and I were familiar with what it was like to
run a small business. When the Wagon Wheel Motel went into
foreclosure in 1990, Jim’s father encouraged us to consider it as
an investment. Since it was so run down at the time, we were
able to negotiate a great price on the property. We started
20
20 |
| alberta
alberta hospitality
hospitality
extensive renovations as soon as we took possession. It helped that Jim
is an electrician and a great handyman. We also had a lot of help from
family and friends.”
The Wagon Wheel Motel is comprised of a main house, where the Clarks
live full time, the original 18-unit motel that was built in the 1960s, and
a two-suite building that was moved onto the property four years ago.
Both suites in the new building are about 900 sq. ft. with full kitchens;
one has two bedrooms and one bath and the other has two bedrooms
and two baths.
This small but successful
enterprise is the epitome of a
family-run operation. All three of
the Clark children (now grown)
have worked at the motel over
the years. Adele’s mother, Diane
Kelndorfer, has been part of the
team since day one, and Jim’s
sister, Carole Bergum, works
Owners Jim and Adele Clark
there too. While not relatives,
other employees are treated
with the same respect as family and are considered to be integral
members of the team.
Killam is located in the heart of oil and gas country, about 45 minutes
west of Camrose. As a result, most of the Wagon Wheel’s guests are
oilfield and construction workers. During the fall hunting season, duck
and goose hunters come up from the US to stay at the motel. It is also
a popular place for people coming to Killam to attend weddings, family
reunions, and other special events.
The ambiance of the Wagon Wheel Motel is enhanced in that each
room is unique, and the Clarks have made an effort to make every unit’s
décor very homey. In fitting with the motel’s name, one room even has a
western theme. “It was relatively easy to make each room look different,”
notes Adele. “The motel was built in several phases over the past 50
years, so all of the units are differently shaped to start with!”
Strict attention to cleanliness, motel maintenance, and guest comfort
are some of the reasons that customers keep coming back to the Wagon
Wheel. Adele is proud to say that they have been honoured with three
Alberta Hotel and Lodging Association (AHLA) housekeeping awards; in
2008, 2011, and 2013.
“AHLA inspectors always comment on our attention to detail and how,
when a problem is identified, we see that it is dealt with immediately,”
explains Adele. “I have excellent employees who are very loyal and do an
exceptional job with everything from customer service to housekeeping.
We do our best to ensure that this is a good place to work. I firmly believe
that employees who are content and confident that they are appreciated
will always do a better job. We all work as a team and when anyone
provides feedback or suggestions, we listen and act on it as soon as
possible. When it comes to housekeeping, the girls work in pairs. I think
it really helps that they can work together because cleaning can be a
monotonous job. They trade off parts of the job to change things up.”
Adele adds that she also makes an effort to use cleaning products that
are environmentally safe, not just for the environment and the guests,
but for her staff.
“We also put in very high quality beds,” concludes Adele, “because we
recognize that we are not selling motel rooms, we are selling sleep.”
alberta
alberta hospitality
hospitality || 21
21
Canadian travel intentions
by Hotel Association of Canada
Social Media Popularity Rises
The latest results from the 2013 HAC Canadian Travel Intentions Survey
show that business and leisure travel is projected to be up 2% in 2013.
82% of business travellers said they would be doing more or the same
amount of business travel in Canada in 2013 as they did in 2012. 84%
of leisure travellers said they will be travelling more or the same for
vacations this year.
Since 2009, the Internet has been the most popular way for people
to make their hotel reservations. 59% of leisure and 62% of business
travellers only use the Internet to make their reservations. When asked
about where they gathered information for their last trip, 73% of leisure
and 61% of business travellers said the Internet. Almost double the
number of business travellers (15%) said they used social media sites to
get travel information, compared to only 8% in 2011.
While leisure travel has increased slightly, overall 34% of respondents
from BC said they would be travelling more for leisure, 11% more
than the national average. Respondents in the Prairies were the most
uncertain regarding leisure travel with 17% indicating they will travel
less than last year and 8% stating they don’t know what their leisure
travel plans are for 2013. Of those who said they would be travelling
less for leisure in 2013, 31% said they were doing so because of financial
difficulties, while the cost of airfare was also identified as a leading
reason for travelling less.
Business travellers who said they would be travelling less said the
number one reason for doing so is the cost of airfare in Canada (34%),
followed by the use of tele/video conferencing (23%). BC (48%) and
Ontario (36%) business travellers also cite the cost of airfare as a reason
for travelling less in 2013. These two provinces lead the country for the
number of travellers going to the US to buy less expensive airline tickets.
The top five things leisure travellers are looking for on the Internet are
photos, maps, specials, amenities, and guest ratings. Topping the list for
business travellers is directions, photos, amenities, specials, and shopping
for rates. Of all the things that can influence leisure and business
travellers accommodation choices, star and diamond ratings top the list
at 74% for leisure and 76% for business travellers. On the business side,
the influence of travel blogs is up significantly over last year’s numbers,
with 18% saying they had influence on their accommodation choices in
2012, and 31% in 2013. The influence of social media has doubled over
last year’s numbers from 12% in 2012 to 24% in 2013.
Smartphone Usage
Almost 60% of travellers use smartphones when they travel. This year
the survey asked that group what they used their smartphones for while
travelling. The majority (41%) uses them to check the weather as well as
departure and arrival times (29%), which is similar to 2012. 38% said they
use GPS and/or get directions on their smartphones, an increase of 6%
since 2011. Of those that book their travel via smartphones, 39% said
they intend to use it more in 2013, and 45% said they would use their
smartphones the same amount as in 2012.
Facebook continues to be popular. 24% of travellers (similar to 2012) said
they use their smartphones to check their messages and update their
status on Facebook. 11% book hotels and 15% book air, train, or bus
tickets on their smartphones, up 8% over 2012 figures.
Travellers were asked what they would like to see included in a hotel
mobile app. The top five answers continue to be finding a hotel’s
location, booking a hotel room, checking a reservation, calling for
reservation support/customer service, and linking to a hotel’s full
website. “In 2012 the greatest percentage of travellers calling for these
types of hotel mobile apps was in the 25-34 age range, but the 35-44 age
range has surpassed them in our 2013 survey. As all age groups embrace
the app technology, hotels have the opportunity to develop something
that meets the needs of a growing market of travellers,” noted Anthony
Pollard, HAC President.
Environment Remains Important
44% of business travellers (up 8% from 2009) said environmental
initiatives such as water recycling and energy efficiency, are important to
them. 36% of leisure and business travellers said it is important for hotels
to have green products. 26% of leisure travellers and business travellers
said a hotel with an environmental certification program is important to
them.
20% of business travellers and leisure travellers said the ability to
purchase carbon credits is very important. 49% of travellers said they
would pay $1 or more in carbon credits to offset their stay at a property,
up 5% over last year.
Protecting Cardholder Data
by Chase Paymentech
Maintain an Information Security Policy
12. Maintain a policy that addresses information security
Educational documents are available at www.pcisecuritystandards.org.
Find more information about these 12 requirements, the Self-Assessment
Questionnaires (SAQ), for merchants to assess their cardholder
environment, and PCI-validated payment terminals and software at this
website. You may also want to review the “Prioritized Approach” and
download the tool, which provides a roadmap to prioritize efforts for
merchants who are working towards achieving compliance.
Providing customers with secure payment options not only provides
more incentives to buy, but it is also the merchant’s responsibility. In
fact, failure to protect cardholder data could result in fines from the card
brands as well as remediation costs in the event of cardholder data loss.
This is in addition to loss of business and damage done to your brand
reputation.
*Please note: The information in this Quick Tips article is provided “as is” and “as available”
for general information purposes only. Chase Paymentech Solutions does not in any way
guarantee protection against fraud, chargebacks or other similar activities. ™Trademark of
Chase Paymentech Solutions, LLC, Chase Paymentech Solutions authorized user. All other
trademarks, registered trademarks, product names and logos identified or mentioned herein
are the property of Chase Paymentech Solutions, LLC, or their respective owners.
How Can Merchants Protect Customer Cardholder Data?
The PCI Data Security Standards (PCI DSS) is a set of common industry
security requirements meant to help provide merchants with a single
path to safeguarding sensitive data. The PCI DSS is comprised of 6 broad
areas of security in 12 requirement categories, covering the technology
as well as the process used by the staff involved in payment processing.
Below are short descriptions of each:
Build and Maintain a Secure Network
1. Install and maintain a firewall configuration to protect data
2. Do not use vendor-supplied defaults for system passwords and
security parameters
Protect Cardholder Data
3. Protect stored data
4. Encrypt transmission of cardholder data across public networks
Maintain a Vulnerability Management Program
5. Use and regularly update anti-virus software
6. Develop and maintain secure systems and applications
Implement Strong Access Control Measures
7. Restrict access to data by business need-to-know
8. Assign a unique ID to each person with computer access
9. Restrict physical access to cardholder data
Regularly Monitor and Test Networks
10. Track and monitor all access to network resources and cardholder
data
11. Regularly test security systems and processes
FEATURE
Fraud
A Fearsome Foe
by Leonard Polsky
“All saints can do miracles, but few of them can keep a hotel,” said Mark Twain.
If saints can’t keep a hotel, who can?
FRAUD: A FEARSOME FOE
F
raudulent incidents and practices plague hotel
owners and operators including theft of food
and beverages; misappropriation of revenue;
decreased profit; less advantageous contract
terms; loss of asset condition; and inflated supplier
expenses. It is an unfortunate truth that properties
routinely lose revenue to deceptive clients, suppliers
and employees.
To stem the tide, without saintly intervention, a more
earthly approach and advance planning are needed.
What Is Fraud?
Fraud is available in two flavours: fraudulent incidents
and fraudulent practices.
Fraudulent incidents encompass a wide variety of
dishonest actions. The perpetrator plots to obtain
money or other benefits from a hotel or restaurant.
These acts are normally criminal in nature and
amount to premeditated theft. Examples include
misappropriation or falsification of records at point
of sale, and theft by employees, such as cash fraud for
vacant rooms.
Fraudulent practices are more subtle. These are
practices that demonstrate poor judgment, but there
is an absence of dishonesty or deception. Sometime
employees consider these a “perk of the job”.
{
It is an unfortunate truth that properties routinely lose
revenue to deceptive clients, suppliers, and employees.
What Can You Do?
The legal remedies available to hotel owners
and operators also fall into two categories:
criminal and civil.
In the case of fraud by an employee, the first
step is to investigate internally when fraud
is suspected. The investigator will consult
with the employer, with or without police
involvement.
Following a disciplinary investigation, the
employer may decide to terminate the
responsible individual. Before doing this,
consider whether doing so might trigger
a wrongful dismissal action, especially if
the employee disputes the allegation and
feels compelled to “clear his name”. If there
is inadequate proof of wrongdoing, but
the employer remains uncomfortable, a
termination without alleging cause may be
appropriate. It is important not to jump to
conclusions.
To illustrate, in Moyen v. D.D. Investments Inc.
an experienced bartender with 20 years in
the hospitality industry used a manager’s
swipe card to write off a $15.00 charge that
{
Segregation of front of house duties and bank
reconciliation is a must.
had inadvertently not been charged to a large
party, and to discount the purchase of one
beer to an off-duty company employee.
The employer terminated the bartender,
alleging that he had failed to follow company
policies and procedures and for breach of
trust. There was no police involvement.
The employer had a practice of leaving
managers’ swipe cards with employees,
but required them to seek management’s
approval before or after their use. In this
instance, the court confirmed that the
bartender had forgotten to seek approval for
the write-off, but concluded that he made
no effort to conceal what he had done or
to defraud his employer. He did not gain
any benefit from writing off the purchase or
issuing the discount.
The court felt it was unfair to dismiss someone
for what amounted to poor judgment and
described the theft characterization as
“completely and utterly inaccurate”. It did not
help the employer’s cause that the practice
was a regular occurrence.
The court also chastised the employer for
failing to investigate the incident properly
and the high-handed approach it took
in dismissing the employee, when his
employment contract provided for a lesser
penalty, simply docking the write-off from
the bartender’s pay cheque. The court
ordered the employer to pay the bartender’s
lost income for the time he was unemployed
following his termination, and said that
punitive damages would have been awarded
as well had the employee sought them.
Calling the Police
There is no duty to report alleged criminal activity to the police, but
if the alleged wrongdoing is serious, reporting may be wise as well as
necessary for insurance purposes.
If management chooses to involve the police and a criminal conviction
follows, the employee is less likely to sue for wrongful dismissal, because
the employer can use the results of the criminal trial in the ensuing civil
lawsuit. This may be especially useful in situations where the employer
hopes to recoup losses from the employee for the fraud perpetrated.
As with all litigation, management needs to weigh the cost of proceeding
to a civil trial against the ability of the employee, supplier, or customer
to pay the judgment. It will be unproductive to seek restitution if the
perpetrator is insolvent.
For example, in R. v. Gallo the accused was caught making a hotel
reservation with a stolen credit card. Mr. Gallo was charged with five
counts of fraud and possession of stolen credit cards and personal
banking information. He was allegedly involved in a sophisticated
computer hacking and social engineering scheme in which he gathered
personal information in relation to roughly 50 people. This resulted in a
loss of $70,000 to the bank and its customers.
The police were investigating him from a prior incident that involved
confiscating a bag full of stolen credit cards and identification information.
In this situation, the parties defrauded by Mr. Gallo would have been wise
to follow his criminal trial. The fact that he posted cash bail of $10,000
suggests that he was far from insolvent and may well have been able
to pay restitution, presumably without having to rely on cash advances.
In the case of R. v. J.G.S., the accused was charged with a number of
offences including using stolen credit cards to make reservations at
two hotels. Both hotels provided victim’s statements to the police after
detecting the fraud.
The perpetrator was apprehended and sentenced to five months in
jail. In addition, the court ordered him to pay compensation to the two
hotels.
Other Options
You can also seek retribution from wrongdoers by suing for theft, fraud,
misrepresentation, overcharging for goods, breach of good faith and fair
dealings as well as other causes.
Apart from the financial costs, many properties are reluctant to bring a
lawsuit due to the public nature of our legal system. Once a lawsuit is
started, all court filings are accessible to the public. It may not reflect
well on the image or brand of a hotel to have its confidential business
affairs revealed to the public. No business wants to make the front page
by drawing attention to mismanagement or untrustworthy personnel.
For these reasons, hotel owners and operators often consider resolving their
disputes by means of mediation or arbitration. Privacy and expediency often
make these better alternatives to public, costly and lengthy court trials.
Prevention
Whether a property chooses to deal with fraud internally, criminally or
civilly, the best method is, of course, prevention.
• Management should implement monitoring
policies to ensure that hotel personnel are
adhering to proper procedures.
• Refunds and credits should be reviewed daily.
• Insurance can be purchased to protect
against the fallout of cyber-crime.
• Controls and procedures should be updated
to meet the current challenges of the industry
and evolving technology.
• Management agreements should be reviewed
to reduce opportunities for wrongdoing and
increase means of detecting fraud.
High turnover and failure of operators to
properly explain employee responsibilities
are among the principal reasons fraud occurs
or is not detected. Putting the following best
practices in place will protect your company
from fraud:
• Segregation of front of house duties and
bank reconciliation is a must.
• Staff should be trained to detect fraud by
guests, employees and suppliers.
By maintaining up-to-date information and
clearly understanding hotel policies, duties
and responsibilities, hotel owners and
operators will have the necessary tools to
minimize exposure and bring a successful
lawsuit if needed, be it to challenge a fraudster
on a shop floor or in the boardroom.
Leonard Polsky is a lawyer practicing in the
areas of commercial litigation and employment
law in Calgary.
Fraudulent
Booking Site
Be aware of a potentially
fraudulent booking site called
www.olotels.com. Guests have
received email confirmation of
their hotel booking and been
charged via the site only to find
out, upon arrival, that nothing has
been reserved on their behalf and
there is no way to contact people
at the website.
VISIT US ON THE WEB!
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Marketing Tips
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Travel Trends in 2013
by Ann Mack
Here’s a forecast of key travel trends that will drive or significantly impact
travellers’ mindsets and behaviours this year.
Fitness on the Go - With travellers looking for more ways to work out
while on the road, the hospitality industry is providing new options.
Hotels are supplementing the basic gym with fitness classes, designing
guestrooms to accommodate people doing yoga or cardio, or providing
on-demand workout videos. Airports are also helping travellers squeeze
in some exercise during layovers.
Live-Streaming - Life memories will be live-streamed in real time. The
newest super-compact video camera from GoPro is 30% smaller and 25%
lighter than its predecessors - a big selling point for the skiers, divers, and
other extreme sports enthusiasts who love to document their exploits and it includes built-in Wi-Fi, enabling live-streaming of footage. Users
can also control the camera remotely using a smartphone app.
Nature as Antidote - With urbanization rising steadily (today more than
half the world’s population lives in cities, compared to less than 40% in
1990), more people will retreat to nature to escape the pressures, noise,
pollution, traffic, and other stressors of the city. We’ll also see this urge
manifest itself in other ways, from an embrace of natural, organic elements
in décor to ever more nature-themed entertainment programming.
Political Vacations - Affluent travellers are seeking new kinds of status
trips, as embodied by Political Tours of the UK, which offers clients
“current affairs at first hand”. This includes a tour of Northern Ireland led
by BBC correspondents and trips to hot spots including Georgia, North
Korea, Bosnia, Kosovo, and Ethiopia. Many of these trips are curated by
political experts with insights into the region.
River Cruising - River cruising is slated to make a splash in the travel
industry. In 2012, for instance, British cruise brands Voyages of Discovery
and Hebridean Island Cruises both introduced river cruises. Other
companies are adding river cruise itineraries worldwide as well as new
ships.
Set Jetting - New Zealand has seen a 50% spike in tourist visits since
The Lord of the Rings debuted in 2001; now The Hobbit is expected to
bring even more travellers to the Pacific nation. Long popular among film
fanatics, “set jetting” will become more mainstream, especially as more
sites start to tout their Hollywood connections. As part of the promotion
for 50 years of James Bond films, the stars made appearances at set
locations around the UK in 2012. In 2013, Life of Pi (filmed in India) and
The Lone Ranger (the American West) are expected to help draw visitors
to those filming locales.
Shopping - Hotels in Middle Eastern countries including the UAE,
Lebanon, Saudi Arabia, Egypt, and Bahrain, mega malls with hotels in
them are fueling a tourism recovery after the Arab Spring of 2011 took its
toll. A Sheraton will open in Dubai’s Mall of the Emirates in 2013, and the
upcoming Yas Mall in Abu Dhabi will house seven hotels.
See how you can incorporate these trends into your offers and packages
this year.
Ann Mack is the Director of Trendspotting at JWT, the world’s best-known
marketing communications brand.
FEATURE
Hotel Discounters
Are They Helping or Hindering the Industry?
by Ronald Lee
Like them or not, hotel discounters are firmly embedded in the travel agency
ecosystem. While using discounters can be a significant revenue opportunity
for hotels, it also comes at a significant cost.
HOTEL DISCOUNTERS
H
otel discounters, also known as
online travel agents (OTAs), are
travel aggregators - they represent a
variety of travel-related services and
sell these online through major websites with
the perception that they offer better deals on
rates than a customer might find anywhere
else.
between discounters and hoteliers took a turn
for the worse. The single biggest complaint
hotels have against discounters is that they
take a very large portion of the margins for
booking. If both the hotel and the discounter
are offering the same rooms at the same price,
giving up 20-30% of the booking rate to the
discounter is a huge pill to swallow.
“In a competitive environment, distribution is
a key to success,” says Dan McGowan, general
manager of The Fairmont Palliser in downtown
Calgary, “They [OTAs] are a component of
today’s distribution opportunities.”
Li continues, “Typically hotels do use them.
You really have no choice. You really need
to be in the marketing business nowadays…
because it’s such an important avenue to get
new guests. I think most hotels, bigger hotels,
use online booking engines. It’s a relationship
between the third parties and the hotel and it’s
a good piece of the hotel’s business.”
What’s the Beef with Hotel Discounters?
From the discounter’s point of view, they help
hotels put heads in beds by:
1) Selling excess unused room inventory.
2) Introducing new guests to the hotel who
might never have known about it otherwise.
Discounters now have huge networks of users.
3) Packaging services such as flights, car rentals,
and hotels all in one place, making irresistible
offers to customers.
{
Hotel discounters are able to command
such large commissions and deep discounts
because they bring in the volume. They put
a lot of resources into their online marketing
and search engine optimization (SEO), and
are sometimes accused of brand hijacking (i.e.
ensuring that their discounter site shows up on
Google search results when customers search
for the name of the hotel) and thereby stealing
the customer.
The single biggest complaint hotels have against
discounters is that they take a very large portion of the
margins for booking.
4) Offering personalized attention to help sell
sudden room availability.
This has resulted in hundreds of millions,
perhaps billions, of dollars in sales every year
paid to hotels by discounters.
Dawn Li, general manager of both the Mettera
Hotel on Whyte and Varscona Hotel on Whyte
in Edmonton remarks, “The opportunities we
have with the online OTAs… quite often attract
first time guests.… It’s good marketing for us
to be out there and be visible to people who
may not have thought about our property in
the past.”
However, to some hoteliers, discounters are
like the weird uncle that always embarrasses
you at family outings - you don’t like him, but
he’s there every year whether you like it or not.
It wasn’t always this way. At first hotel
discounters seemed like a good idea, with many
hotels benefiting from their help (and many
still do). But as time went on, the relationship
McGowan speaks further about his strategy
with discounters. “These supplier relationships
are like any other, and in order for success to
be found by either party, those two parties
need to understand each other’s needs. Every
branded and non-branded hotel should
manage their distribution channels and should
know what they are willing to accept. We guide
all of our guests to Fairmont.com, where guests
can not only book, but where we can provide
our customers… with a greater amount of
information about the services and products
that we offer.”
Others complain that using discounters
devalues the hotel brand, or the entire region
in general. Customers will always want lower
prices if they expect they can get them. Some
properties have opted to use opaque sites,
which only list a price and don’t reveal the
name of the property until the room is booked.
HOTEL DISCOUNTERS
{
Package your rooms with other services,
so guests don’t see your discounted price.
The Start of Discounting
After 9/11 there was a massive inventory of guestrooms available and
discounters offered to help hoteliers by blowing out their rooms at
incredibly low rates in order to entice people to start travelling again.
When they first entered the marketplace, Booking.com was helping
independent hotels differentiate themselves. They have since moved
on to become more of a commoditized website, just like all the others,
at which point it really just becomes a pricing game - a strategic pricing
position.
The travel dry spell lasted for about two years, and during this time two
things happened that set the tone for the hotelier and hotel discounter
relationship today: Firstly, more hotels turned to discounters to distribute
their rooms as they became concerned about their bottom lines. Some
hotels, particularly smaller ones, gave up marketing altogether and
relied on discounters as their sole marketing and distribution channel.
Secondly, discounters began to aggressively demand a merchant
relationship with hotels. Rather than take a commission on sales, they
wanted deeply discounted rock-bottom pricing for groups of rooms
that they could mark up. Discounters became so aggressive with their
negotiations that some hoteliers labeled them as excessively greedy.
Li recounts the early days of discounters: “A long time ago, typically hotels
would give third party companies a lower rate than their own websites,
but that obviously doesn’t make sense. Now hotels will offer their guests
rate parity, so wherever they book it’s going to be the same rate.”
There are many accounts of blacklisting and bullying tactics
by discounters over the past decade, yet they have firmly planted
themselves in the travel agency landscape, with several well-known
companies commanding the lion’s share of online transactions. Expedia
and Priceline are the top two players in the industry, and new discount
sites are starting up every year.
Expedia
As the first hotel discounter and currently the largest,
Expedia also owns Hotwire.com and Hotels.com. Based
in Bellevue, Washington and operating in 22 countries,
it is estimated that Expedia accounts for 44% of the
total online travel agency market share with 60-80% of
its revenue coming from hotel bookings. Therefore, it is
no surprise that they are holding firmly onto the hotel
market, as this business generates hundreds of millions
of dollars a year.
HOTEL DISCOUNTERS
Weaning Off Discounters
Following are some suggestions on how your hotel can become less
dependent on discounters:
•
Spend the money you would have given to hotel discounters on
marketing. Increase your marketing budget so you can build your
database, promote your brand, and optimize your website. “It depends
on how good you are with your SEO,” Li states. “It depends how you’re
doing with your Google analytics and positioning. If you’ve got a good
company working on your hotel’s SEO, typically your hotel pops up (on
Google) first.”
• Ask for price parity - offer the same pricing on your hotel’s website
as on the discounter’s site so customers aren’t getting the lowest price
elsewhere.
Shifting the Balance
• Shift to using discounters less. Aim for allotting only 10% of your
inventory to discounters.
Hotel discounters are firmly entrenched in the online travel agency world;
however, many hotels are now promoting their own brand websites and
taking back some of the online booking business.
• Focus on customer service to get better ratings on review sites such as
TripAdvisor in order to increase repeat business.
This is particularly evident with larger hotel brands that focus on the
quality of their guests’ experiences and customer service. They understand
their unique selling points, so sometimes guests will book on the brand’s
website even after visiting a discounter during the course of their research.
“We want to treat our guests as uniquely as they are,” McGowan asserts.
“Our guests are not a reservation number, they are Mr. Jones or Mr. Smith
and it is critically important that we understand them. Again, it’s back
to the relationship to Fairmont.com, and we offer discounts through
Fairmont’s President’s Club to those loyal members.”
These branded hotels have worked on their own marketing so that
discounters contribute a smaller portion of their revenue. Contrast this
with some smaller, independent or struggling hotels that don’t have their
own marketing manager and depend on discounters as their main source
of bookings.
• Package your rooms with other services, so guests don’t see your
discounted price, and only use discounters that don’t openly disclose
your prices on their site.
• Use a revenue manager to help you maximize your revenue and profits.
• Adjust your use of discounters according to seasonal trends. Forecast
future demand and don’t discount when you know it will be a busy
period.
• Don’t start a price war in your city. • Create multiple sources of distribution to achieve your booking goals,
so you are not relying on any single channel.
Ronald Lee is the Senior Marketing Consultant at Eat Marketing, a restaurant,
food and hospitality marketing agency. He also works with Google to offer
their premiere Google Business Photos service, and can be found at www.
eatmarketing.com.
US TRAVEL INTENTIONS
by David Sheatsley
According to the October 2012 travelhorizons™ survey of 2,200 US adults,
48% said they did, indeed, plan to take a leisure trip during the next six
months. This marked the first time since March 2007 that leisure travel
intentions fell below 50%. October 2012 intentions were down four
points from October 2011 (52%) and off seven points from October 2010,
when 55% of adults said they planned to take at least one leisure trip
during the next six months.
Our assessment was that US adults, given the increasing media coverage
of the possible “fiscal cliff”, decided to put their travel plans on hold until
Congress resolved the looming tax cut issue. Again, according to the
October 2012 survey, 23% said that they were “not sure”, when asked
about their leisure travel plans for the next six months. This was again,
the highest percentage of uncertainty indicated since March 2007.
Based on questions asked about the potential impact on leisure travel
if the tax cuts were allowed to expire, 46% of all US adults agreed that
elimination of the tax cuts would result in their taking fewer leisure trips
in the year ahead than this year. And almost two-thirds of these would
take “substantially fewer” leisure trips. This translates into an estimated
108 million US adults re-thinking their 2013 leisure travel plans.
I was reading an article about the fiscal cliff and one individual who
was interviewed said that his weekly paycheque had been reduced
by $30. His response was that the reduction meant one less visit to a
restaurant for his family. $30 may not seem like much, but families are
still recovering from the Great Recession and, as such, are watching
every penny and how that penny is spent. Since leisure travel falls in
the category of discretionary spending, along with jewelry, making
home improvements, buying major appliances, etc., it doesn’t take
much to swing the financial pendulum from a level of comfort to one of
uncertainty.
All is not bad news, however, especially as it pertains to hotel guests.
Leisure travel intentions, as expected, increase by household income.
Here is how leisure travel intentions played out by household income as
of October 2012:
Under $30,000 = 30%
$30,000 - $49,999 = 44%
$50,000 - $99,999 = 53%
$100,000 and more = 72%
Leisure travel intentions declined between October 2011 and October
2012 for all income groups with the exception of those adults living
in households with incomes of $100,000 or more, which remained
unchanged at 72% from October 2011 to October 2012.
David Sheatsley is Vice President of Research at MMGY Global and can be
reached directly at 407.838.1871.
Calgary Stampede saw 20% Increase in Attendance
by Canadian Tourism Commission
The thousands of cowboys and cowgirls who roamed the Parade
Grounds at last year’s Calgary Stampede had a global heritage like never
before. The 2012 Stampede had a record 1.4 million attendance level for
the 10-day Alberta spectacular, up 20% on 2011.
campaigns in Brazil, Germany, South Korea and the UK. Other key
stats include an estimated $9.2 million in tourism revenue, $2.8 million
in government revenue, of which $1.2 million went to the federal
government and support for 71 jobs in Canadian tourism businesses.
The substantial uptick in international visitors was largely fuelled by
a one-time funding allocation of $5 million to the Canadian Tourism
Commission (CTC) by the federal government via Canada’s Economic
Action Plan in its 2011 budget. The aim was to market the Stampede
Centennial in key international tourism markets.
“The Calgary Stampede is a proud member of our Signature Experiences
Collection® and the CTC’s one-time funding to promote the Centennial
internationally brought a solid return on the government’s investment,”
says Greg Klassen, CTC Senior Vice-President of Marketing Strategy and
Communications. “The campaigns will live long in the memories of
consumers in those markets and have led to strengthened ties for CTC
with our travel-trade partners.”
A report published by the CTC reveals some of the initial results from
these marketing campaigns. Other main legacies of the work will be
cementing the Stampede’s stature as an international must-see event
and boosting Alberta’s and Canada’s profile as a destination for global
travellers. Both will bring lasting economic rewards to the country as a
whole.
More than 8,900 travellers booked trips to Canada in the six months
leading up to the centennial celebrations as a direct result of CTC’s
CTC worked closely with the Calgary Stampede, Tourism Calgary and
Travel Alberta to develop an effective program. The partners used the
government funding in four distinct areas: developing marketing assets,
direct-to-consumer advertising on TV, radio and online, media relations,
and social media promotion plus promotions through tour operators
and travel agents.
Storytelling and Destination Management
by Brian White
Looking for a competitive advantage to
develop and market your destination? Can’t
afford a multi-million dollar conference centre?
Then an approach that’s gaining ground in
the Nordic countries might be of interest to
you. In 2010, the Nordic Innovation Centre
(www.nordicinnovation.net, project number
08041) published a paper on storytelling and
destination development. They reviewed five
cases where storytelling had been used to
build long-term integration of community
interests and consistent marketing focus
through participating in a common story line.
The idea was based on the Norse Sagas, and
explored the importance stories can play in
reaching beyond digitally-based marketing.
The intriguing aspect for me was the
engagement of customers in the stories.
The approach was appealing because of the
opportunity for involvement and re-telling
of stories, thereby spreading the destination
message in an emotionally engaging way.
Stories can be built into blogs, websites,
Facebook, and Twitter, ensuring that the
stories become part of the brand identity.
I had the opportunity to see the approach
in action when I was teaching in Bonavista,
Newfoundland last fall. During my class on
cultural tourism development, we visited
Elliston, the “Root Cellar Capital of the World”,
Trinity, and Port Union, and heard the stories
of these small communities, their dramatic
ups and downs, and the residents’ struggle to
survive over the past two to three centuries.
I was struck by the resonance between the
experience of the place, and how the story
was reinforced when it was delivered by the
outstanding Newfoundland and Labrador
Tourism marketing ads on television. At all
levels, there’s an emotional link through
visual and oral storytelling.
I put together a small research project to
analyze the key techniques that make
storytelling work for destinations. What I found
was that in all cases, the first step is to build
interpretive capacity (photo and text files) for
stories selected to reinforce the destination
brand. Story themes need to be developed
online, in marketing collateral, and with partner
organizations that can interpret the stories and include visitors in them. My main interest
was in the development of “storyboarding” - a
technique borrowed from the film industry
that assembles the concepts, partners, and
stories into a matrix that can be used to build
individual interpretive events, social media,
brand strategies, and effectively targeted
messaging. Edmonton is one example where
the concept has been put into action - have a
look at www.edmontonstories.ca. Here’s a site
WHAT’S NEW?
by Debbie Minke
Absolute Wi-Fi Solutions (formerly OKWireless) has been actively developing a new, reliable, safe
and secure guest Wi-Fi solution since May of 2011. Its innovative, user-friendly applications are
available to any and all properties, whether it be hotels, RV resorts, conference centres, or B&Bs. Their
system offers many features that help hoteliers and owners view Wi-Fi user statistics and bandwidth
usage at their own property.
Flip.to is designed as an engaging, personalized experience for each guest, encouraging guests to
spread the word about their upcoming trip - and the selected hotel - at the time of booking and
beyond. By seamlessly integrating with the guest’s social networks, the Flip.to platform is able to
convert these social interactions into new bookings and additions to the hotel’s marketing database.
With the new multi-language capability, Flip.to uses the language the customer selects on the
hotel’s website and delivers the customized messaging in that language. There is no limit to the
number of languages a hotel can select for message translation.
that draws the viewer into different stories
and experiences - and not just within the
realm of tourism.
Stories from either current experiences or
from history can be tailored to meet a very
wide range of different interests - and the
websites can be matched up with interpretive
programming put in place by arts, museums,
and cultural organizations in collaboration
with the DMO. I found that the key skills in
building an integrated storytelling approach
lie with strong project management and
long-term engagement of partners - many
of whom are likely to already be engaged in
interpretive programming using storytelling.
First Nations communities are particularly
skilled in this area. Storytelling appears
to be a very useful approach for building
community buy-in because there is a direct
linkage established between the community
member and the visitor, allowing the
visitor to become part of the story through
re-enactments, music, and dramatic events.
It’s an idea that’s beginning to take hold, so
why not give it a try?
Brian White, PhD. is Director, School of Tourism
and Hospitality Management at Royal Roads
University. He can be reached at 250-391-2600
ext. 4769.
NAMES IN THE NEWS
Spring 2013
Congratulations to the new general managers
at the following properties: Joey Belanger,
Copperstone Resort Hotel, Deadmans Flats;
Pamela Buttazzoni, Hinton Highway Inn,
Hinton; Lana Brost, Super 8 Brooks; Julia
Callarec, Canalta Hotel Oyen; Geo Cha, Provost
Motor Inn, Provost; Treena Coney, Best Western
Grande Prairie Hotel & Suites, Grande Prairie;
Michael Davis, Best Western PLUS The Inn
at St. Albert; Taewon Eom, Plains Motor Inn,
Stettler; Don Griffiths, Grande Rockies Resort,
Canmore; Al Harpe, Ramada Inn & Suites Lac La
Biche; Paul Harrigan, Radisson Hotel Calgary
Airport, Calgary; Will Horner, Coliseum Inn,
Edmonton; Michelle Horton, Rockyview Hotel,
Cochrane; Angela Hwang, Days Inn Grande
Prairie; Rubeda Jessa, Horseman Motel, Airdrie;
John Kim, Fox Creek Inn, Fox Creek; Mack
Lee, Manning Motor Inn, Manning; Alice Ling,
Holiday Inn Express, Grande Prairie; Michael
Mauro, Four Points by Sheraton Edmonton
South, Edmonton; Heather McNamara,
Chateau Nova Fort McMurray; Lisianne McNee,
Stop Inn Motel, Coleman; Thilak Nandagopal,
Coast Edmonton East Hotel, Sherwood Park;
Bill Peavoy, South Country Inn, Cardston;
Samm Rae, Calaway RV Park & Campground,
Calgary; Amrit Sandhu, Delta Edmonton South
Hotel & Conference Centre, Edmonton; Jeff
Scheelar, Edmonton Marriott at River Cree
Resort, Edmonton; Manny Singh, Super 8
Red Deer; Garrett Turta, Fairmont Hotel
Macdonald, Edmonton; Craig Usher, Hampton
Inn & Suites by Hilton Lethbridge; Robert
by Debbie Minke
Ward, Windtower Lodge & Suites, Canmore;
and Barnie Yerxa, Quality Hotel & Conference
Centre Fort McMurray.
Grande Prairie Inn is now the Pomeroy Hotel
& Conference Centre, where Alice Ling is the
new general manager. In Taber, the Lodge
Motel is now the Taber Motor Inn. Arvin Singh
is the new general manager.
The Hotel Association of Canada (HAC) is
celebrating its 100th anniversary this year. A
celebration dinner and various special events
took place during the HAC annual conference
in February, and the HAC has embarked on a
year-long anniversary campaign that includes a
historical video and timeline amongst its many
activities acknowledging and celebrating its
centennial.
Graham Wark has been named President of
Osram Sylvania Ltd. Wark assumes overall
responsibility for Canadian operations and
support functions in all sales channels.
Marriott International has singled out
SilverBirch Hotels & Resorts for growing
the Marriott portfolio in Canada in 2012 by
awarding the company with its Outstanding
Developer Award - Canada 2012 in their
Modern Essentials and Extended Stay Brands
category.
Realstar Hospitality presented the following
awards to its top hotels in Alberta: Property
of the Year, 85 rooms and under: Days Inn
- Edmonton South; New Property of the
Year: Days Inn - Calgary Northwest; General
Manager of the Year: Doug Sholter, Days Inn
& Suites - Strathmore; and Days Inner Circle
Team of the Year: Days Inn - Calgary Airport.
Chairman’s Award for Quality winners for 2012
include: Days Inn - Calgary Airport (General
Manager Helena Borges); Days Inn - Edmonton
South (General Manager Zelia Silva); Days
Inn - Medicine Hat (General Manager Leslie
Squires); and Days Inn & Suites - Strathmore
(General Manager Doug Sholter). These hotels
are recognized for going above and beyond
set standards in daily operations and customer
service.
Congratulations to the Comfort Inn & Suites,
Airdrie, and Econo Lodge Canmore for
winning 2013 Choice Hotel Gold Awards. These
properties exceed Choice Hotels’ standards for
customer service, housekeeping, and product
quality.
Vantage Hospitality Group presented the
Canadas Best Value Inn, Calgary with a “Best
of the Best” award for Best Website for hotels
with less than 60 rooms. The hotel’s website
(www.cbvicalgary.com) was chosen for its ease
of navigation, graphics, photos, and links to
CBVI’s site.
If you have any noteworthy community
contributions, please email the details to Debbie
at [email protected].
MEMBER VALUE PROGRAM
The ENMAX Energy / AHLA Power Program
Alberta’s deregulated markets can appear complicated and confusing
to even the most savvy business operator. In late 2010, ENMAX Energy
Corporation and the Alberta Hotel & Lodging Association (AHLA)
partnered together to offer the “Power Program”, an innovative program
with competitive pricing and flexibility to help AHLA members manage
their energy costs.
The Benefits
AHLA Members have the opportunity to reduce their exposure to the
volatility of the electricity market and lock in their rates for electricity
at wholesale prices. The initial offering was for a 5-year period ending
December 31, 2015. Over 450 AHLA members have already taken
advantage of the electrical energy program and secured long-term
contracts. Recently, members have had the opportunity to take
advantage of a drop in wholesale prices and lock in power for the years
2016 and 2017. Benefits include:
• competitive electricity rates (some conditions, admin, termination
fees, and taxes beyond the electricity rate also apply);
• flexibility to add locations as needed at current market prices;
• renewable energy purchase options;
• reasonable credit requirements; and
• dedicated customer service team.
For the Power Program, ENMAX Energy provides what is known as
“indicative prices”. This is the current best estimate of price based on all
available information at a given time, but rates in Alberta can change
at any time. The only way to get a firm price is to go to the market and
receive a current offer. This is what the AHLA does through ENMAX
Energy.
ENMAX Energy monitors the market to determine the optimal time to
lock in a rate for AHLA Members who have executed contracts. Once
a satisfactory rate is achievable, the AHLA and ENMAX Energy work
together to determine the best time to transact. The program has
entered into eight such transactions since its inception.
About ENMAX Energy
ENMAX Energy is an Alberta-based generator and retailer that understand
the energy market from end-to-end, providing competitive energy
products that enable businesses to better manage their energy costs.
Our energy experts will work with you to understand your business
drivers and help you get what you need from the Power Program.
ENMAX Energy is once again proud to be a Gold level sponsor for the
AHLA’s 93rd Annual Convention & Trade Show. Talk to our energy experts
and find out how your property can benefit from the Power Program or
get more information about the Alberta electricity market. Visit us at the
ENMAX Energy booth #19 or:
• Visit our website at www.ahla.ca
Is Now A Good Time To Lock In Your Electricity Rate?
• Email the AHLA at [email protected] or call 1-888-436-6112
No one has a crystal ball that can tell you if current rates for long-term
electricity contracts will turn out to be a good price. However, a key
benefit of any long-term electricity contract is price certainty. This
means that the rate you lock in at is guaranteed for the contract length
and, during that time, you are not exposed to the volatility of Alberta’s
electricity spot market prices.
• Email ENMAX Energy at [email protected] or call 1-866-331-2199
If you are considering a long-term electricity contract, ask yourself:
• How well is your business able to cope with fluctuating electricity
costs?
• How long should you lock into an electricity contract at current long term prices?
Procuring the Power
Electricity in Alberta is a deregulated and competitive market. This
means electricity prices are determined by market forces such as supply
and demand and that businesses can choose their electricity provider.
In this market, members have two options for purchasing power: 1)
Choose a “floating price”, which is determined through the Alberta
power pool and fluctuates with market conditions; or 2) Sign a longterm contract, which will provide a guaranteed price for the length of
the contract.
You can choose any retailer listed at www.ucahelps.alberta.ca or by calling
310-4822 (toll-free). Electricity delivery to your home or business isn’t
affected by your choice of retailer.
ADVERTISERS
Spring 2013
AHLA (Employer of Choice) 19
MAC Sales & Marketing 22
Alberta Hotel Safety Association 7
McCallum Printing Group 36
Alberta Laundry Systems IBC
Restwell Sleep Products 5
Bell Canada 9
RHB Enterprises 33
Best Buy IFC
RONA Inc. 27
Beyond the Basics Fitness Serivces 29
Sealy Canada 26
Chemistry Consulting 31
Shaw Cablesystems 11
EMCO Corp. 34
SOCAN 25
Globalive Communications 16
Tengo Internet 8
Gordon R. Williams Corp. 15
Trafco Canada 27
Image Distributors 35
Tricom Building Maintenance 12
Jani-King of Southern Alberta 8
Van Houtte 32
John Deere Canada BC
W.E. Greer 29
Kaba Ilco 37
Western Financial Group
Kinasewich Benefits Consulting Ltd. 23
LG Electronics 13
Insurance Solutions 10
Whiteshell Chairs 26
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In-Room Entertainment - Alberta Hotel and Lodging Association

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