LAS VEGAS, Nevada—Even during an economic downturn of historic proportions, officials at Vantage Hospitality couldn’t help but be upbeat during their annual conference and trade show at the Monte Carlo Hotel & Casino.
Leading the list of strides during 2008 was the company’s Americas Best Value Inn brand surpassing the 800-property mark for the first time. Nine years into the brand’s existence, there are now 809 hotels in the portfolio.
“We have many hurdles ahead, but our challenges can certainly turn into opportunities,” Roger Bloss, Vantage’s president and CEO, told the general session of about 600 people.
During 2008, Americas Best Value Inn experienced an 18-percent increase in overall reservations and a 25-percent rise in overall revenue, Bloss said.
Bernie Moyle, partner, chief operating officer and chief financial officer, said the brand’s position among other franchising and membership companies has been solidified. It is the eighth-largest franchise/membership brand, he said.
“That’s a very powerful statement when you look at the other companies on this list, and this is only our ninth year,” Moyle said. “This growth doesn’t stop in North America. Vantage’s brands are making their mark throughout the world. We have truly become an international player. Think about it: A global company in the same league as other chains that have been around for 30-plus years. That’s an incredible achievement.”
Focusing on developing strategies that will help members increase their bottom lines, a parade of Vantage executives explained to attendees that infrastructure was among Vantage’s biggest attributes.
“Our infrastructure is among the best in the business, and it truly is about the people,” Bloss said.
Jordan Langlois, vice president, brand management, said the company has one service professional to every 40 members, which allows Vantage to continue to offer hands-on service and new programs.
New programs introduced during 2008 included the Guest Expression iSight guest feedback tool and regional training called Vantage Academy. The academy produced customized regional programs in nine cities that attracted 300 properties.
Langlois said more properties need to become more proactive in the educational processes. There are 275 ABVI properties that have earned certified lodging manager status in the American Hotel & Lodging Association’s Educational Institute program.
“The goal is to be 100 percent,” Langlois said.
“Our platform is to educate, not mandate,” Bloss said. “It’s not just a philosophy, it’s a way of life.”
Addressing issues
Moyle said 41 percent of ABVI’s guest relations issues deal with housekeeping, 19 percent deal with product quality, and 15 percent deal with service issues. The other 25 percent are associated with other issues.
“Superior room service and a clean room will address 80 percent of issues,” Moyle said.
Bloss said the overall perception of the brand is impacted by each and every member.
“In 2009, our focus should be pride of ownership, training, cleanliness, service and maintenance,” Bloss said. “Even in this age of technology, there’s still no replacement for that human touch.”
To do its part, the brand is purging the bottom 10-percent performing properties each year.
For example, the brand said during its 2007 convention that it had 768 members. It eliminated 61 properties and approved 102 of the 177 applications it received during 2008.
Members attending the meeting voted on several initiatives for 2009. One of the most debated issues, whether to establish a minimum of 75 percent of a property’s guestrooms as non-smoking rooms, was soundly defeated as 90 percent of the voters voted against it.
The members voted in favor of:
• extending through December 2012 the brand’s Internet marketing fund;
• raising the minimum levels of quality-assurance scores; and
• having a brand-wide uniform policy for front-desk employees and, in a separate vote, having a brand-wide uniform policy for all employees.
Web watch
From the beginning, ABVI has focused on the Internet as a key way to get its word out to consumers. The executives said that strategy is paying off, as 31 percent of the brand’s bookings in 2008 came through its www.americasbestvalueinn.com Web site—up from 23.2 percent in 2007 and more than triple what it was in 2004 (9.4 percent). During 2008, visits to the Web site increased 50 percent from the number of visits during 2007.
John Burkard, VP of Information Technology, said the brand’s Web site was streamlined for 2008 to help grow the number of reservations it produced.
“We’ve seen sharp growth in the percentage of electronic bookings that are generated through the brand Web site,” said Deb Lambert, director of online development.
According to Burkard, the plan for 2009 is to focus on search engine optimization, improving the content for each property and establishing links with new partners.
Vantage continues to build its worldwide exposure behind the Value Inn Worldwide umbrella.
Bill Hanley, partner and managing director, international development, said every time the company puts up a sign up outside of this country, it’s to every member’s benefit. He said Eastern Europe, Asia and the Middle East are priorities.
The company in 2008 signed a master agreement to develop Value Inns Worldwide in Morocco and Tunisia, an agreement for Value Inn Worldwide properties in Dubai, Qatar and Bahrain, a master agreement to develop the Canadas Best Value Inn in Canada, and made major headway on partnering with a master licensing partner in India.