Las Vegas–“Who the heck do you people think you are that you have choice?” Bernie Moyle, CFO and COO of Vantage Hospitality, asked his audience last December at the Monte Carlo Resort and Casino in Las Vegas.
The group gathered before him was comprised of property owners for the company’s economy brand, Americas Best Value Inn. Each year they are invited to attend the ABVI International Educational Conference and Trade Show to discuss topics facing the brand, like the percentage of smoke-free rooms a property should have to maintain to meet brand standards, and then those topics are put to a vote.
In this case, the members voted 90 percent to 10 percent that a smoke-free room policy shouldn’t be implemented at all. And that was all it took for owners to make a difference in how ABVI will be managed in 2009.
“Once again, the system works,” Moyle said.
The annual membership meeting was held at the close of the conference after 325 owners from around the country took a few days to attend educational sessions as well as regional gatherings to discuss the voting topics.
While ABVI executives presented the group with research showing trends in the industry overall, Roger Bloss, founder, president and CEO of Vantage, said that is where their involvement ends: “This is your brand; it’s up to you,” he said.
Members decided on a number of items, including approving continuation of ABVI’s Internet marketing funds to be used for search engine optimization and keyword buys; changing the brand’s quality assurance rating system scores to improve product quality and guest satisfaction; and requiring all employees to wear logo shirts and well-maintained clothing while on duty.
However, one unexpected change came after members were asked to increase the budget for production of dolls for ABVI’s mascot, Buddy, the blue checkmark. When a proposal to entirely do away with the mascot was put on the table by one owner, thundering applause was enough to lead to scrapping the Buddy doll program all together. Members agreed the mascot didn’t serve a purpose for the brand.
Some proposed initiatives for brand leaders to pursue over the course of 2009 were also put to the test, and owners ended up dismissing some growing industry trends by voting against looking into creating a central reservation system, requiring green or environmental standards and implementing a policy for pet-friendly rooms. They did, however, give the green light to work on ways to establish a property recognition program for owners who receive a high mark on their quality assurance inspections.
A good year
ABVI’s business model may be unique, but nine years after its launch, it’s also one that’s working.
Leaders reported at the conference that 2008 brought a record number of applications to join the flag, with 100 approved and 75 turned down. Another 61 were eliminated from the system, which stood at 768 members in 2007 because they didn’t make the grade.
And in the end, despite the falling numbers seen recently throughout the hospitality industry, ABVI executives were proud to announce one that went up.
“We actually had a good year,” said Patrick Mullinix, VP of development for ABVI, as he noted that the brand has now surpassed the 800-property mark and was set to begin this year with 809 members in its family.
And if that number wasn’t high enough, leaders also discussed with its U.S. owners the expansion of the Best Value Inn line of hotels in Canada and China as well as Value Inn Worldwide in North Africa and Dubai.
“Every time we put a sign up outside this country, it’s to your benefit. Every sign that goes up is an advertisement for you,” said Bill Hanley, partner and managing director of international development.
Other achievements over the past year were noted, including an overall increase in reservations by 18 percent and an overall revenue growth of 20 percent.
However, leaders also noted that poor customer satisfaction ratings on the J.D. Power and Associates 2008 North America Hotel Guest Satisfaction Index Study mirrored results seen internally, with about 41 percent of complaints coming into ABVI’s customer relations staff stemming from housekeeping, 19 percent from product quality and 15 percent from service.
Bloss stressed that ABVI will look closely at what properties are in compliance with brand standards and eliminate those that fail to comply.
“We must make a unified commitment to this area,” Bloss said, adding that in the current economy, there must be a pride in ownership as well as a desire to reach the level at which the brand wants to be perceived.
Offering members friendly franchising that includes fees based on number of rooms, short-term contracts and no liquidated damages, the overall package is one executives said they hope will continue to be attractive to prospective owners despite the downturn.
And because of the value the brand aims to offer guests as well, 2009 potentially stands to be a beneficial year for ABVI.
“We have many hurdles ahead, but our challenges can certainly become opportunities,” Moyle said.
jkovacs@questex.com
