brand would best suit my property type?'. Expanding loyalty in ... social media, websites or apps. This can help ... boo
SPECIAL SUPPLEMENT: JOINING A RECOGNISED BRAND
Expanding loyalty in 2017:
is branding for you? By Rosie Clarke, Industry Reporter
‘Branding’ can seem like a loaded word, with the violent connotation of a hot iron and loss of control, but that’s not the perceived reality for countless industry-makers around Australia. In the accommodation sector, branding of some sort is close to unavoidable. Franchisees, members and independents alike must figure out how to market themselves, and this means finding a way to either become, join or adopt a brand. Even the marketing channels themselves must think about branding as they compete amongst themselves for screen time with consumers; the internet is an ocean of ships vying for Titanic status in a landscape where no ship is too big to sink. So, when it comes to the ‘little guys’; the independent properties, particularly in more rural areas, trying to stand out on OTAs and countless social media accounts to target their fair share of guests, branding is a huge concern. Of course, there are ways – whether outsourced or in-house – that they can maximise outreach, and very special properties can try to rely on word of mouth. However, joining a well-known brand is another option to consider. Many managers look to join existing brands because they crave access to more extensive marketing and booking parameters that these networks can ideally offer. In that same vein, choosing what brand to join has its own set of complications but the key factor in the decision-making process should always be, ‘what type of brand would best suit my property type?’.
AMG spoke to three well-known brands in the Australian accommodation sector, each with differing views and options to present on this topic. They offered opinions to answer frequently asked questions relevant to joining a recognised brand in this industry.
Pros and cons: sales and marketing Incentivise all you like, guests will continue to check room prices on Booking.com and TripAdvisor. That said, it doesn’t take much to realise that losing the business of a company with 100+ hotels is going to put more of a dent in an OTA’s bottom line than the loss of a small independent hotel that’s gone rogue. Therefore, it’s a benefit of joining a brand, that they can often negotiate lower commissions on your behalf. Having said that, it is still possible to win the game of OTAs if you are independent, so long as you have the right social media savvy, marketing ingenuity and some very vocal guests.
Marketing support: what can managers joining a brand expect to receive? Steve Richards, Best Western Australasia’s head of commercial said: “Hotels within a brand benefit from access to a range of services that are often not available within their property or are cost-prohibitive for individual businesses.” He also noted: “We manage key global partnerships with OTAs on behalf of our members, locking in negotiated commissions and marketing benefits.” ARRA Accommodation Group’s head office team also told AMG: “Brands should be an
Another ‘pro’ relating to bookings, is that larger
invaluable source of marketing for their members, offering
accommodation brands often have successful strategies
services such as social media integration, website and blog
in place for increasing direct bookings. They also tend to
support, online booking options as well as accommodation
have the available resources to ‘experiment’ with different
directories.
advertising campaigns and techniques. While guests might
“The expertise a brand has regarding OTAs can greatly assist
not think to check the website of a niche property to see if there are any benefits to booking direct, most people tend to know that big brands offer free wifi or complimentary items to whoever books direct. The hurdles are greater when you are going it alone because social media savvy and marketing ingenuity are not things that can always be grown organically, they cost money. From outsourcing and training to online campaigns and in-house incentives, there are lots of outgoing costs involved that a big brand can much more readily afford. However, one ‘con’ to joining a brand might be the nature of mainstreaming. If your property is one that is successful because it feels like a hidden gem to guests who have happened upon glowing reviews or heard about a oneoff experience in rural Australia from a friend, then being part of a mainstream ad campaign might be a disincentive to your regular guests or preferred clientele.
members when deciding which OTAs to connect with. Many companies offer brand or chain-wide promotions through social media, websites or apps. This can help increase bookings to motels during the quieter months.” Michael Georgeson, Golden Chain’s general manager said: “This is quite a big question as each brand varies the level and detail of support provided dependant on their model and the cost structure of being involved in the brand. Overall, the brands will offer some combination of website and booking engine, social media exposure, GDS, corporate programs, local marketing, digital, outdoor, accommodation/travel guides, loyalty programs and support in working with the OTAs with a number of other possible programs. Again, the degree and detail of this will vary based on the overall cost and structure of the group. Some of the factors associated with this will include the level of prescribed requirements for participating in the group, domestic versus global influences, commission fees, rebates acquired by the group, marketing fees and if the management of the group is driven by a franchise model or co-operative.”
How can managers know which brand will suit their property-style? “In Australia, different brands offer different quality assurance programs to suit the needs of moteliers and the chain,” ARRA’s head office shared. “This, again, gives moteliers choice in a variety of things, such as decor, fittings, style and the look and feel of the property, ensuring that motels meet or exceed guest expectations. This can lead to repeat bookings within a chain, and can help in building the guests’ relationship with the brand.” Mr Richards added that managers should research and work closely with developers to find out which brands might best suit a particular property. He said: “Through our recent rebrand, we’ve made it easier for potential members and developers to choose the brand that best suits their business.”
supplier profile
supplier profile
GOLDEN CHAIN
BEST WESTERN HOTELS & RESORTS
How Golden Chain operators maintain their independence
Three new properties in three months for Best Western
Perhaps it is the subtle yet key difference in a membership co-operative but Golden Chain Motor Inns prides itself on the independence of its properties. This is underpinned by a base annual fee for members and a commission free approach to providing bookings making the group one of the most affordable and business friendly solutions to working with a brand. As a fully member owned an run co-operative Golden Chain Motor Inns provides a flexible yet structured marketing and support solution for independent accommodation providers. Services include a guest membership program, cooperative marketing, quality assurance, preferred supplier program, zero commission on bookings, an annual conference and more. In 2016 the group launched a new
brand now offering three subbrands including Budget Best, Classic and Platinum ranging from 2.5 to 4.5-stars or self rated.
Best Western Hotels and Resorts® has recently welcomed new hotels in Perth, Brisbane and Christchurch.
The new branding has refuelled staff and operators with excitement surrounding the subsequent company growth created.
The fresh additions feature the global group’s first upmarket ‘Plus’ branded property in New Zealand and expanded coverage in the key Australian cities of Brisbane and Perth. In all cases, Best Western’s global marketing reach and excellent loyalty program were major factors in the hotels’ decision to join. The new properties are:
Golden Chain Motor Inns growth comes at a time of great concern over OTAs monopolising the guest booking experience and the group is unique in offering a solution which includes an industry led commission free booking portal. Starting out over 30 years ago as an all-Australian home-awayfrom-home, Golden Chain Motor Inns are now spread across more than 220 locations nationally with properties in Vanuatu and Bali and more than 90 locations in New Zealand managed separately.
Best Western Plus Fino Hotel and Suites, Christchurch One of the city’s top hotels which re-opened in July after a NZ$15m post-earthquake upgrade. Best Western Northbridge Apartments, Perth Excellent serviced apartment hotel in the heart of Perth’s inner-city cultural precinct just a 10-minute walk from the CBD.
Best Western Plus Hotel Diana, Brisbane Fresh from a total refurbishment, this hotel includes a fantastic spa and 24-hour gym. It’s close to the ‘Gabba’ cricket ground, South Bank, the Mater and Lady Cilento Hospitals and Brisbane Exhibition Centre. The three new properties exemplify the evolution of the brand. Best Western has come a long way over the past few years, with all Best Western hotels now featuring free high-speed internet, healthy breakfasts as standard fare and the ability to earn or redeem loyalty points that never expire. Branding has also been tweaked with sharp new logos and signage, while there are six brands instead of just one (Best Western Premier, Best Western Plus, Best Western, GLō, Executive Residency and BW Premier Collection) for enhanced product differentiation.
®
Wherever Life Takes You, Best Western Is There. Experience Best Western Hotels & Resorts in a whole new light. Best Western now offers six types of hotels to meet the unique travel needs of guests, and the business needs of hotel owners around the world.
®
joinbestwestern.com or call Steve Richards: +61 417 059 096 Best Western and Best Western marks are service marks or registered service marks of Best Western, International Inc. ©2016 Best Western International, Inc. All rights reserved.
SM
Mr Georgeson noted: “Our team on the road will assist operators in determining what brand will work best for them and ensure the standard meets the brand appropriately.” ARRA’s head office also recommended “moteliers thinking about partnering with a recognised brand, or motel chain need to research the brands’ experience, distribution capabilities, product, service and member locations.”
A corporate perspective on franchising and membership
for operators than they would be able to gain independently, of course. Networking and support from the corporate level as well as from other members can be huge asset particularly for those new to the industry. In the current environment, arguably, the biggest advantage is the bringing some more balance onto the reliance on OTAs.”
On franchising: Talking about Best Western Australia, specifically, Mr Richards noted: “We offer an initial membership contract term of three years and then rolling short-term contract renewals rather than long-term, lock-in contracts.” This approach is in place, according to Mr Richards, so that “owners [can] enjoy the benefits of branded services, while maintaining decision-making flexibility”. He also added that “globally, 99 percent of our members renew their contractual agreements.”
Going local: how can joining a brand help benefit local tourism?
On membership: ARRA’s head office shared the following: “In today’s accommodation industry, motels are spoilt for choice, they can operate independently or join a multitude of recognised motel brands. While some choose to stay independent, more and more motels are seeing the benefits offered by joining motel chains such as ARRA,” which “encourages its members to connect with fellow moteliers and refer guests to other motels within the chain. This strengthens not only the group, but also the relationships between member motels.”
“We encourage our members to operate
Golden Chain’s general manager Mr Georgeson revealed: “Cooperative buying as a group can deliver better B2B deals
as part of their communities through local and regional marketing initiatives,” Mr Richards insisted. “Hotel guests are attracted to the destination or location and so accommodation providers can have a positive impact on their local area tourism through marketing other local operators and experiences. Beyond this, a globally recognised hotel brand, through its presence online and in signage, has the power to draw guests in. “In Best Western’s case, our loyalty program works hand-in-hand with this. It provides a large travelling group the opportunity to access a diverse network of properties in regional and metropolitan areas. Brands help with guest dispersal from gateway cities to other areas. Local tourism certainly benefits from this.” ARRA’s head office team also described how, because of the number of its member properties, it can “help its motels promote local businesses and attractions, which can draw more people to those areas”. “Regional-based promotions shine the spotlight on festivals and events occurring in specific areas, thereby encouraging guests to stay in local motels, which in-turn can increase tourism to local businesses.”
Loyal to whom? Being part of a branded network gives managers the opportunity to team up with or work alongside like-minded others. Sharing tips and tricks with properties similar to your own that are scattered across the country yet share a common interest in being part of the same brand, is a luxury when you are used to viewing your neighbours as the competition. It expands the notion of loyalty from a concept limited exclusively to guests, to one that includes not only fellow properties but a much wider vicinity of local business. This may not be for everyone, to some it might feel like a ‘con’, but if it appeals to you then perhaps joining a brand is something to consider in the onset of 2017.
