Access to global accounts:
Things are always changing in the hotel world. One of the latest twists is access to global accounts. That brands have started something called tire II revenue management. They are pushing to create a secondary revenue stream for the brands.
They are trying to tell hotel owners that they are not capable nor are the hotel general managers capable of managing the revenue / rates at the hotel level.
I remember sitting in a meeting for La Quinta were the VP of franchising compared it to the medical field. He said the General Manager was your family doctor and you didn’t go to your family doctor for heart surgery. That the hotels who had signed up revenue management with the brand did X percent better than those that did not. So for $12,000.00 to $17,000.00 you got a few percent better performances than before. but for how long and your not getting a decated revenue manger your one of say 25 hotels he now has in the area.
Not to single out La Quinta all the brands seem to be doing it now. What they are not telling you is they are also signing up or trying to sign up all of the competing hotel in the area and you are not the only hotel they have signed up. If you’re a Choice Brand there could be many competing hotel Names within the brand competing for the same business; and there is only so much business from the global accounts to go around plus they usually have corporate hotels in same area competing with you as well.
I know your thinking that’s what we pay franchise fee for. Well not anymore it’s become A pay to play world. Not only are more and more of the prime business like BP or Shell going though and agency like Carlson Wagenlit to negotiate the with hotels for them. You now have to pay the brands to get access to the big accounts plus pay the commission on it as well.
A better plan is back to the basics. Contacting every major business in your area and making them aware of your hotel and what it has to offer them. Contacting the localChurches, Funeral Homes etc, and just plain stealing it from your competition by completing driving around and then reaching out to those business and turning them into clients. I’m not telling anything you don’t already know. The problem is far too many hotels truly have no idea what the sales person is doing each day. Nor do they have a formal program in place that will tell them what the sales person did on daily basics.
I’ll cove this in more detail on my next post.