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Membership Makes the Difference

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Membership Makes the Difference

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Owners Focused

Best Western International is based on a simple concept: Independenthotel owners united to promote their properties and increase proftability.As a membership organization, our hotels are independently ownedand operated, and each Member-owner has a voice in the directiono the company.

We oer our Members the advantage o retaining independence whileproviding the benefts o a ull-service lodging afliation:

• Internationally recognized brand name.

• A ee structure designed to let owners keep more revenue in their pockets.

•  Yearly renewable contracts.

• The most competitive ees among leading brands.

• Worldwide reservations/online booking channels.

• Global, national and regional marketing services.

• The mass buying and bargaining power o thousands o hoteliers.

• Experience and services o a proessional headquarters sta.

In these uncertain times, our organization ensures stability and consistency,rarities in today’s world o aggressive takeovers and buyouts. Best Westernhas never been bought out, and thanks to our structure, we never will be.Oering that saety to our investors is important to us.

Who We Are

The World’s Largest Hotel Chain®, providing marketing, reservationsand operational support to more than 4,000* independently owned andoperated Member hotels in 80 countries and territories worldwide.

Founded in 1946, this iconic brand is host to approximately 400,000worldwide guests each night. While each Best Western hotel reects thecharm and appeal o its local culture, it has the distinct advantage o astrong global brand and comprehensive quality standards. A pioneerwithin the industry, Best Western is recognized or its distinctive businessmodel and diverse hotel portolio. The company continues to innovateand enhance both the business and leisure travel experience.

One o the important ways we drive proftability or our Membersis through global consistency and our Quality Assurance program.Best Western is committed to our customers by providing consistentamenities and services at every hotel worldwide. We ensure productexcellence through our Quality Assurance Process, in which inspectionteams ollow one set o criteria to review every Member hotel across

the globe.We are enjoying our best years ever with record numbers, unprecedentedpublic relations coverage and exciting new initiatives. With Members’continued commitment to improved quality, consistency, value and guestsatisaction, the brand is reaching or even greater success.

Renewal/Fee Structure

Membership costs are surprisingly low, with ees about one-third toone-hal o other major lodging chains. Our concept assures Members’entrepreneurial independence, and the democratic reedom todetermine the organization’s strategic growth. And, unlike other ranchiseagreements that require fve-, ten-, or even 20-year commitments, our

memberships are renewable annually. It’s no surprise that 98 percento our Members renew each year.

Mid-Scale Brand Total 10-year Cost % of Total Room Revenue

Best Western $1,178,010 2.4%

Comort Inn & Suites $5,460,402 11.1%

Hampton Inn & Suites $5,027,403 10.3%

Holiday Inn $4,906,763 10.0%

La Quinta Inn $4,785,081 9.8%

Source: HVS International Hotel Franchise Fees Analysis Guide 2007

*These numbers are approximate and can uctuate.

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Sales & Marketing

Advertising

Best Western advertising programs allow Members to take advantage o ourstrong brand recognition and position o strength as The World’s Largest Hotel Chain.® Through TV, print, online and seasonal promotion campaigns,

Best Western is able to oer broad exposure o our unrivaled distribution,great product, and targeted programs.

eCommerce

Best Western Members can reach millions o customers through theirpresence on bestwestern.com with a section on the site devoted toeach hotel and its reservations. On average, bestwestern.com bookingsproduce an ADR o $102.50.

Special site eatures include a trip planner, hotel packages, virtual tourso all properties in the U.S., Canada and the Caribbean, exclusive onlinepromotions, search engine optimization, a travel blog and more. Wecontinue to make enhancements to the site each year to improve revenue

opportunities or our Member hotels and to ensure our site oers aconsumer-riendly experience.

Bestwestern.com is also accessible via mobile devices, and an iPhoneapp was developed to help increase brand exposure and revenue. Inaddition, Member hotels are represented in various GPS devices andmapping Websites. Best Western is also active in the social media realmwith Facebook® and Twitter™ pages to encourage customer interactionand increase sales.

Best Western Rewards®

Loyal customers are a brand’s best riend and among its most valuable

assets. Our Best Western Rewards program oers Members more thanten million loyal guests. That’s ten million people who already know andlove Best Western! These customers drive higher ADRs and providecost-eective marketing opportunities that drive incremental and repeatbusiness to our properties. Best Western Rewards has seen a continued20 percent year-over-year property revenue contribution growth. Morerevenue at less cost is a sure-fre ormula or greater proftability.

Worldwide Sales

Our Worldwide Sales Team consists o over 25 sales managers globallyrepresenting our Member hotels to generate revenue or the properties.

The sales orce is strategically positioned where key business decisionmakers are located. The Worldwide Sales proessionals solicit key accountswith the most potential or all Best Western hotels.

The Best Western Business Travel Sales team ocuses on soliciting newand established customers who require large volumes o room nightsat a wide range o properties throughout North America. Examples o accounts include business rom Wal-Mart, Boeing, various airlines, IBMand Krat Foods to name a ew.

Best Western Leisure Sales works with tour operators, receptive operatorsand afnity groups (amily reunions, raternal organizations, etc.) to bookcustomer tours and packages.

Best Western Government Sales works with ederal/state/militaryinstallations and ofces to identiy properties that cater to governmentbusiness travel.

The Worldwide Sales Team understands how important it is or newhotel owners to get up to speed quickly on brand strengths. So, we havedeveloped a sales training program that provides three to fve days o onsite, hands-on customized training that will drive revenue to your property.

Field Marketing (Regional Co-ops)

Best Western Members participate in a regional Co-op - a Member-drivengroup o individual hotels that work together, pooling eorts and undsto extend owners’ marketing dollars. Results oriented and ocused onthe business o the hotels, the Co-ops are highly eective and efcientin extending the reach o both local property and brand marketing. Bymarrying Best Western marketing plans and promotions with state andprovincial initiatives, Co-ops maximize the power o the brand to helpincrease ADR, room revenue, occupancy and RevPAR.

Best Western Travel Card®

The Best Western Travel Card is a git card that drives new businessto the brand and incremental room nights to Best Western properties.In act, our Travel Card delivers more than $15 million in revenue toproperties every year. What sets Best Western’s Travel Card apartrom others is its global reach. Cards are prepaid and can be reloadedwith currency or units that pay or hotel stays and incidentals at any o Best Western’s 4,000+ hotels worldwide.

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Design & Purchasing Services

Design

Best Western Members enjoy the support o a ull-service Designdepartment, comprised o talented and highly experienced hospitalitydesign, architecture and operations proessionals. The Design team is

responsible or helping each Best Western property retain its relevancein the marketplace, maintain aesthetic standards, and meet and exceedguests’ expectations or the design experience - all while preserving theindividuality and unique character that Best Western hotels are known or.

We can help a property maximize its competitive position through a ullrange o design services, provided by:

• Field-based Regional Design Consultants.

• Phoenix-based Architectural Team.

• Phoenix-based Furniture Fixtures & Equipment Review Team.

• Phoenix-based Project Designers.

SupplyBest Western Members leverage the purchasing power o The World’sLargest Hotel Chain® by buying through Supply. The strength o over2,200 hotels in North America carries negotiating weight with more than500 suppliers, providing our Members with the lowest prices on thewidest range o products. Best Western Design and Supply is a service tothe Members and a resource, not a proft center. The goal is to help theMember make more inormed buying decisions by oering inormationand value comparisons.

More than fty knowledgeable Supply sta work ull-time as the purchasingdepartment o each hotel; their motto is: “We don’t sell to you, we buy or

you.” All products meet Best Western guidelines, rom FF&E (Furniture,Fixtures, and Equipment) and OS&E (Operating Supplies and Equipment) tothe Best Western MarketPlace®, a buying co-op or ood and beverage andrelated items.

We have successully handled hundreds o renovation and new constructionprojects, and we leverage that experience to help your project run moresmoothly. Owners have the convenience o shopping betwestersupply.com 24/7, and help is never ar or order tracking and timely ollow up toensure the hotels’ needs are met. Best Western Design and Supply is onthe Members’ team!

Dynamic Prototypes

Individuality is the oundation o Best Western’s unique Membershipculture. In addition to the many strengths aorded by membership withBest Western, we oer new Members strong oundations rom which to

build, quite literally, with our dynamic prototype plans.Our Upper Mid-Scale prototype, Best Western Atrea, unveiled inMarch 2007, reects the standards and amenities o an upper mid-scaleproperty. Flexible, adaptable and innovative plans oer a stylish, cost-eective guide or those interested in building a new Best Westernproperty to compete in primary and secondary markets.

Well received in the marketplace by both developers and consumers,we presently have completed and opened fve Best Western Atreasin Bradenton, Fla.; San Antonio, Texas; Bryan/College Station, Texas;Indianapolis, Ind. and Denton, Texas.

In 2010, seven Best Western Atreas will open in New Bern, N.C.;

North Bergen, N.J.; Waco, Texas; Denver, Colo.; San Antonio, Texas;Houston, Texas and Calgary, Alberta Canada. Approximately20 additional Best Western Atreas are under contract.

Best Western has also recently enhanced existing prototypes, withthree dierent exteriors to choose rom, “Montecito,” “Heritage” and“Stoneridge,” which are targeted to the heart o the mid-scale segment.Designed to promote individuality and exibility or investors, themid-scale plans maintain broad-based appeal and architectural detailsand fnishes that can easily be adapted or revised to suit the uniqueavor o your location.

We have much to oer those interested in building a new Best Western

property, and to owners looking or exible, cost-efcient and orward-thinking renovations. We are here or our Members every step o the way.

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Operational Support

Education & Training

The world o hospitality management is constantly changing, and theBest Western Education & Training team oers an extensive program toassist Best Western owners, managers and sta maximize their successamid change.

The General Manager Proessional Development series and acomprehensive Member Orientation Program are conducted year-round atBest Western International’s world headquarters in Phoenix. Instructor-ledworkshops are held regularly throughout North America on a wide range o topics, including general management, operations, customer service, salesand marketing, housekeeping, training, human resources and ood andbeverage. In addition, Best Western I Care® , our customer care programocused on providing industry leading service, is provided through regionaltraining in conjunction with regional meetings.

The team’s accredited trainers acilitate industry-certifed programs throughthe Educational Institute o the American Hotel & Lodging Association(AH&LA), including Certifed Hotel Administrator (CHA), CertifedHospitality Supervisor (CHS), Certifed Hotel Sales Proessional (CHSP)and Certifed Hospitality Revenue Manager (CHRM). Best Western is alsoa ounding sponsor o the Asian American Hotel Owners Association’s(AAHOA) Certifed Hotel Owners (CHO) certifcation in which Best WesternMembers can enroll at no charge.

We recognize that people learn in dierent ways. Best Western’s OnlineLearning Center oers learning opportunities or continuing educationat the student’s convenience and pace. The Center oers user-riendlyinormation, including a ull complement o online courses in partnershipwith industry-leading hospitality organizations. Course progress, scores and

status o completion can be tracked and certifcates can be printed uponcompletion. Courses oered satisy certifcation requirements as set orthby ballot initiatives. Members also regularly receive additional resourcesthrough the TOOLS FOR SUCCESS program, which leads the industryin providing a wide variety o learning tools, including online learningmodules, or all Members.

Regional Services Managers

Regional Services Managers (RSMs) are widely recognized as Best WesternMembers’ “operational partner in the feld.” The RSM team is comprisedo multi-talented industry proessionals with years o dedicated hospitalityoperations experience. Their goal is to assist Best Western Members

through a wide variety o training and operations initiatives. Your RSMwill visit your hotel a minimum o two times per year to conduct property

assessments, operational coaching, consulting services and valuableonsite sta training.

Some o the coaching and consulting sessions include industry-leading

Best Western I Care® customer service sta training, reservation systemstraining/review, design guidelines training and ollow-up, new property/owner onsite orientations, management operational training, sales andmarketing training and department sta training.

In addition, the RSMs are an integral part o the Property Transition Teamprogram. This program is designed to assist prospective applicants throughthe onboarding activation process until they are a Best Western Member.Multiple personal onsite visits during the construction or conversion processare most valuable as they provide opportunities to become amiliar withBest Western prior to activation.

Revenue Management Services

The Revenue Services department is made up o CertifedHospitality Revenue Managers (CHRM) whose objective is to workwith Best Western Members to increase RevPAR, using provenrevenue management processes.

Core Revenue Managers – Based in Phoenix, this team consists o managerswith territories comprised o approximately 150 hotels each. Their unctionis to work as a revenue support desk or Members who need assistance.Each year they reach out proactively to the properties in their territories,however it is up to the Member to decide to what extent they would like toutilize the manager’s expertise. For more inormation, call 800-766-9247 ore-mail [email protected]

Property Revenue Managers – Based in the feld, the Property RevenueManagers work only or Best Western properties that opt or a termcontract to have their revenue process conducted weekly by one o these industry proessionals. I you are interested in this service, [email protected] or more inormation or visit theRevenue Managers Website page on mybestwestern.com.

Senior Revenue Managers – Based in the feld, the Senior RevenueManagers travel to new Best Western properties to train them on revenueprocess and tools prior to their opening. The visit lasts rom two-and-hal to three days, and new Members are encouraged to have their entiremanagement sta on-hand or the training. For more inormation on this

program, contact [email protected].

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To learn more about Best Western or howyou can join Best Western International’sassociation o independently owned andoperated hotels, please call 1.800.847.2429

or visit bestwesterndevelopers.com.

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Each Best Western® hotel is independently owned and operated. Best Western and theBest Western marks are service marks or registered service marks o Best Western International, Inc.

©2010 Best Western International, Inc. All rights reserved. 500.2044.09:12/09:1.5M