Hotel & Motel Management - March 17, 2008 - (Page 16) 16 Franchise Law IN THE details Innovations offer fresh look Adapt to customer needs Create new branding Franchisor: Listen and learn H&MM March 17, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Franchisees’ bold innovations meet guests’ needs stream but significantly regressing with hotel occupancy and income because of the volatile nature of the hotel industry and the intensity of competition. Within the hotel industry in particular, hotel franchising has demonstrated the benefits of innovation and change in addressing the needs of its customer base, as well as overall hotel operations. For example, the hotel industry has been a leader in niche franchising by identifying different guests’ needs and sub-branding hotel brands, as illustrated by Marriott International’s Courtyard by Marriott brand in contrast to the more upscale Marriott Hotels & Resorts brand. Holiday Inn separated its upscale brand by identifying it as a Crowne Plaza and removing the Holiday Inn label that originally appeared as Holiday InnCrowne Plaza. This special labeling concept originated in the 1980s with a Holiday Inn franchisee in Dallas, Jack Pratt, who wanted to identify his Holiday Inn hotel as more upscale than the standard Holiday Inn through the Crowne Plaza label. Pratt initially had a high vacancy rate because his room rates were higher than the standard Holiday Inns, so he realized he needed a name to distinguish the hotel as a top-of-the-line brand. He requested Holiday Inn management give him permission and was refused. However, he persisted and succeeded to gain approval of the labeling. The hotel operation itself proved so successful with a labeling distinction that the Holiday Inn corporate management ultimately adopted this separate branding technique. They further expanded on sub-branding, as have all other major hotel chains. Within the fast food industry, some of the most beneficial changes and innovations have resulted from franchisee initiatives. The Big Mac, a McDonald’s institution, was the innovation of an enterprising franchisee who wanted to increase his sales. Jim Delligatti, a Pittsburgh franchisee, owned a franchise in a heavily industrialized area near several large steel mills. He listened to numerous complaints from his laborer customers whose appetites were not satisfied by one small hamburger—or even several small hamburgers. Delligatti realized the need for an enormous sandwich for these customers, so he created the Big Mac. In 1968 he took the sandwich to McDonald’s senior management, and the colossal sandwich was so well received that, after some modifications at the company headquarters, it gained a permanent place on the menu. I am not suggesting that the vast majority of positive changes have resulted from franchisees. What I am proposing is that many innovations have come from franchisee input, and such innovations have benefited franchise systems. Indeed, franchisors have been the mainstream of innovation within their hotel systems with new technology, inventory control, new marketing techniques and more. The franchisor needs to lead but also listen to its franchisees. For hotel franchisors interested in the most recent suggested innovations, contact me for further information. Illustrative of such new directions are energymanagement vendors who have developed programs to reduce overall hotel energy costs by 35 percent to 45 percent. In these challenging economic times, more innovation can and will be done. hmm@questex.com Mort Aronson is an attorney with the international law firm of Kilpatrick Stockton LLP, which is based in Atlanta. He can be reached at (404) 745-2414. By Mort Aronson H&MM Columnist nnovation is a necessary factor for success with hotel franchising as well as the overall franchising community. Those franchise systems that demonstrate complacency with their current success flirt with the danger of not just remaining constant with their income I News Briefs Training services company ILX Group plc has been appointed to provide 25 financial and commercial awareness e-Learning courses to Hilton Hotels Corp. as part of a three-year deal. With its recent acquisition of a one-acre land parcel in Bellevue, Wash., HEI Hotels & Resorts’ development projects now collectively exceed $500 million. The proposed 378-room Marriott Hotel will be the first full-service Marriott in the city of Bellevue. Starwood Hotels & Resorts Worldwide announced that its Sheraton and Four Points by Sheraton hotel brands will implement a smoke-free policy at more than 300 hotels and resorts throughout the U.S., Caribbean and Canada. All public areas will also be 100 percent smoke-free. Go Green. Live Green. Buy Green. Maintenance USA is dedicated to providing a low cost alternative for all of your maintenance and repair needs. Now with EcoSource, we can help to develop and maintain a purchasing program that will help your property “Go Green”. These products include: Room Amenities, Lighting, Appliances, HVAC, Paint & Sundries, and Janitorial Supplies. We’re here to help you create a healthier, more resource-efficient property. Whether its energy efficient, water conserving, or improving indoor environmental quality, purchasing green products with Maintenance USA® saves both the environment and your bottom line! Call or go online to learn more about the products we have in stock and ready for immediate shipping, including products to help you “Go Green”. Call Maintenance USA Today! 800-283-4000 Show Saving Specials! Booth #329 & #331 At The AAHOA Show CIRCLE NO. 141 All Microtel Inns & Suites and Hawthorn Suites hotels will soon provide guests with custom Sereno Spa amenities, exclusive to the brands. The eco-friendly line, created by Marietta Corp., includes renewing body bars, facial bars and revitalizing conditioning shampoo, with calm and refreshing scents and a customized blend including white ginger extract. Compiled by Stephanie Ricca, sricca@questex.com http://HotelMotel.com http://www.HotelMotel.com/digital_edition
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.