Best Western: Harnessing diversity

PHOENIX, AZ—Best Western hotels has long prided itself on being a member-driven organization with a diverse range of hotels – and just one Best Western brand.  But at this year’s annual convention, president David Kong signalled a change, asking members to consider the marketing strategy of using “descriptors”.

In a press conference following his speech to the membership, Kong gave the analogy of Johnny Walker Scotch.  Johnny Walker offers Red for those who drink Scotch and soda, Black for those who drink Scotch on the rocks and Blue for those who drink it neat, but the brand is still Johnny Walker.

While Best Western’s diversity of hotel stock and large distribution network are advantages for the company, studies by Boston Consulting Group and Booze and Company have said Best Western customers view the company as risky, and business travellers tend to avoid it.

L to r, Ron Pohl, Dorothy Dowling, Scott Gibson and David Kong of Best Western International.

“Aside from continuing our work in quality and customer care, we need to find a way to harness our diversity,” Kong said. “Customers nowadays want choices. They have different needs for different travel occasions. A brand that offers a variety of locations price points, and types of hotels has a unique advantage to build brand loyalty.  That’s our strength.  We just need to help travellers understand the variety of choices that we offer.”

Descriptor strategy

Hence the descriptor strategy. Kong stressed that it is really a marketing communications strategy, not unlike the current approach of offering standard, superior and deluxe hotel rooms.

“Through descriptors, we want to better describe our hotels to travellers and empower them to make informed choices.  Descriptors will help them understand that some Best Western hotels will charge more because they offer a higher degree of comfort and amenities.  For travellers who want a more value oriented hotel, we have clean, comfortable hotels with good service to fit their budget.  We offer them a range of choices.

“By properly setting their expectations at the time of purchase, there will be higher satisfaction and less room for disappointment.”

In short, Best Western is looking to accomplish with descriptors what other chains have achieved by establishing multiple brands labelled “by Hilton” or “by Marriott”.

Not a done deal

The descriptors strategy is by no means a done deal that will be implemented immediately.  Best Western presented the business case and polled its membership at the convention. Provided the membership gives thumbs up, Best Western will enlist an outside firm to help define the descriptors and come up with guidelines and design requirements for each descriptor.  Kong sees this happening during the first half of 2010.

“The biggest challenge with a lot of members with our association, is that a long time before it was discussed as segmentation.  It’s hard for some people not to immediately relate it to segmentation.  We have to overcome that bias.”

Aggressive campaign boosts market share

At last year’s convention, Best Western announced that it would spend an unprecedented amount on marketing. The company actually spent $60 million this year, including a first ever summer promotion, and it has earmarked $62 million for marketing in the coming year.

The company shifted 50 per cent of its marketing dollars into a summer program that included staying two nights and getting one free, and a partnership with Disney and the Jonas Brothers. Results were unprecedented, said Dorothy Dowling, senior vice president marketing and sales.  

“During a time when many hotel brands are cutting back their advertising spend, our ads stand out and we get an exponential return on our investment,” said Kong.

Last year, the U.S. hotel industry saw a decline in RevPAR of 3.6 per cent, Best Western experienced an increase of almost 2 per cent in Lynx [reservation system] RevPAR.  This year, the company expects to outperform the industry again by almost four points.  In Canada, the Lynx RevPAR outperformed the industry as well.

“It looks like our strategy of taking market share through increased advertising and promotions at a time when competitors are cutting back worked last year and continues to bear fruit this year,” Kong said.

Canadian hotels are Best of the Best

Staff at the Best Western Woodstock, NB, left to right, Jennifer Head, GM; Sean Jones, VM; Jennifer Thompson RDM; and Christie Prosser, AGM.

PHOENIX, AZ—Some Canadian hotels took home double and even triple honours at the Best Western 2009 annual convention held late last month in Phoenix. Best Western Woodstock Inn & Suites of Woodstock, NB won in the Best of the Best Customer Care, Best of the Best Quality and Champion Best Western Rewards categories.  Best Western Orangeville Inn & Suites took home honours for Best of the Best Design in District III, and Best of the Best Quality.

Best Western Port O’Call Hotel in Calgary, Best Western Denham Inn & Suites in Leduc, AB, Best Western Coquitlam Inn Convention Centre in Coquitlam, BC, Best Western Downtown Vancouver and Best Western Colonel By Inn in Smiths Falls, ON all were named Best of the Best in Customer Care.
 

Best Western Orangeville, Ontario won in the Customer Service and Design categories

Best Western Victoria Park Suites in Ottawa received a Best of the Best Quality Award, while Best Western Brant Park Inn & Conference Centre  in Brantford, ON was honoured in the Champion Best Western Rewards category.

Best Western president David Kong also praised Canadian hotelier Alnoor Tejpar, the company’s governor in BC.
  
“[Tejpar] has started a program in his family’s eight hotels to help charitable organizations in the area. It’s called ‘The hotel with a heart,’” Kong said.

Alnoor has been involved with several charities, but he is now getting his employees and guests involved in supporting local, regional, national and international charitable organizations, including Habitat for Humanity.
 
A comment about the story also impressed Kong. When the story appeared online, the author had a comments section at the bottom. On the first day of the story, one person said she had stayed in this hotel and felt really taken care of.

This guest asked the breakfast attendant why she seemed so happy and the attendant said, “Employees here are treated like family and as people contributing to the hotel’s success.” The guest said she felt energized by the comment and recommended the hotel.

“The caring culture that Alnoor has cultivated in his hotel is amazing.  His staff provides genuine service from the heart and the guests could sense it.  That’s the emotional connection,” Kong said.

American Hotel & Lodging inducts David Kong as chair

David Kong

NEW YORK, NY­—When the American Hotel & Lodging Association celebrates its centenary with a gala  at New York’s Waldorf Astoria hotel on Nov. 8, it will also induct David Kong, president and CEO of Best Western International, as its new chair.

Kong is a hospitality industry leader and innovator with a distinguished 35-year career. Since 2004, he has served as president and CEO of Best Western International. As CEO, he has brought the chain successive years of double-digit reservations system revenue growth, a healthy balance sheet and high member satisfaction levels.

Kong has also helped Best Western achieve a number of notable industry firsts: first brand to offer free high-speed Internet at all of its North American properties; first to launch virtual tours for each of its North American hotels; first to offer electronic gift cards redeemable in various currencies and for free nights; and first to initiate strategic and exclusive partnerships with NASCAR® and Harley-Davidson.

Kong’s strong background in international development has helped increase Best Western’s presence in Asia. With more than 120 hotels on the continent, Best Western was recognized as the best midscale hotel chain by TTG Asia in 2007 and a Top 10 International Hotel Management Group by the China Tourist Hotels Association.

Before being named its CEO, Kong served as Best Western’s executive vice president of international operations, and he has also led strategic services, operations, marketing and global development departments. His career includes almost 20 years with Hyatt Hotels; and work at Omni International; Regent International; and Hilton Hotels. Kong came to Best Western from KPMG Consulting’s hospitality and real estate practice.