albertahospitality
The Official Magazine of the Alberta Hotel and Lodging Association
Spring 2013
AlbertaAlberta PropertiesProperties FindFind TheirTheir PERFECTPERFECT NICHENICHE HOTELHOTEL DISCOUNTERSDISCOUNTERS
In-Room Entertainment Changing Expectations PM40026059 ADD GREAT ENTERTAINMENT TO THE MIX
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Photo courtesy of Delta Hotels this issue IN-ROOM ENTERTAINMENT Changing Expectations 6 These days, different types of properties are coping with a wide range of challenges when it comes to keeping travellers entertained during the time spent in their rooms.
14 Alberta Properties Find Their Perfect Niche 18 Keeping Students Safe 18 The Wagon Wheel Motel 22 Canadian Travel Intentions in every issue 23 Protecting Cardholder Data 4 Chairman’s Report 24 Fraud: A Fearsome Foe 5 President &CEO’s Message 29 Travel Trends in 2013 12 Alberta’s Treasures 17 Travel Alberta 30 Hotel Discounters 36 What’s New? 34 US Travel Intentions 37 Names in the News 35 Calgary Stampede Success 38 Member Value Program 36 Story-Telling and Destination Management
CHAIRMAN’S REPORT
by Perry Wilford alberta hospitality A Seat at the Table There is an ebb and flow to politics, where it can seem that change is the only constant. Official magazine of That ebb and flow presented our industry with a new Minister just a few weeks ago. about the success we have seen from using In a pre-budget cabinet shuffle Premier the 4% Tourism Levy to market Alberta as a INSPIRING SERVICE, GROWING VALUE Alison Redford appointed The Honorable Dr. tourist destination, and the need to ensure all Richard Starke as Minister of Tourism, Parks of those dollars continue to go into product AHLA and Recreation. Along with our CEO, Dave development and marketing. We also shared 2707 Ellwood Drive, Kaiser, and Industry & Government Relations the work the AHLA has done to support Edmonton AB, T6X 0P7 Manager, Tracy Douglas-Blowers, I went to transparency and accountability of DMFs in Toll Free: 1.888.436.6112 www.ahla.ca meet with our new Minister just a week after Alberta. he was sworn in. So what did we take away from the meeting? CHAIR OF THE BOARD Perry Wilford I cannot overstate to our members the value Dr. Starke is undeniably enthusiastic about of having a strong relationship with the the great ‘pockets’ of tourism products FIRST VICE CHAIR people who serve us in government. We are around Alberta. And while he recognizes Steven Watters sometimes challenged to ensure our industry the importance of iconic attractions like VICE CHAIR issues are understood and acted upon. We the Rockies, the Calgary Stampede, and the Michael Sieger can’t always expect to get everything we West Edmonton Mall, he was just as excited VICE CHAIR want, but there is just no substitute for about Camrose’s Bailey Theatre, the Medalta Tina Tobin having a seat at the table when important Historic Clay District, and Whitecourt’s annual snowmobile rally. There was no question in PAST CHAIR issues are being discussed. Having a Minister Mike Shymka who understands the ebb and flow of the our minds that this Minister wants visitors hospitality and tourism industry is also critical. to experience everything that Alberta has to PRESIDENT & CEO offer. Dave Kaiser, CHA Our meeting was scheduled for 30 minutes but it lasted over an hour. The Minister was We have a Minister of Tourism who DIRECTORS NORTH Amr Awad curious about the value of the Tourism Levy to is passionate about this portfolio. He Mark Perry our industry as well as the role of Destination understands tourism’s potential benefit Tony Verbisky Marketing Fees. And while he had many to our economy, and recognizes that the DIRECTORS CENTRAL questions for us, he was obviously well up key to success is a strategic and aligned Perry Batke to speed on many of the key issues that approach to tourism marketing. Dr. Starke Robin Cumine affect our industry. We impressed upon him clearly understands that collaborating with DIRECTORS SOUTH the very real labour shortages our members the AHLA and other industry partners is key Joseph Clohessy struggle with and the need for an evolving to long-term success. And that’s a table we Mark Hope Marc Rheaume and effective strategy to address it. We talked are happy to have a seat at. Leanne Shaw-Brotherston
DIRECTOR, CAMPGROUNDS Chris Eklof
Alberta Hospitality is published quarterly by:
PUBLICATIONS T 604-574-4577 1-800-667-0955 UPCOMING ISSUE F 604-574-2196 Closes May 24 [email protected] Summer 2013 Publishes July 5 www.emcmarketing.com
Publisher & Editor - Joyce Hayne Copy Editor - Debbie Minke • Alberta Travel Outlook Design & Layout - Krysta Furioso • Trends to Self-Service • Balancing Labour Costs & Guest Experience PUBLICATIONS MAIL AGREEMENT NO. 40026059 • Design Trends RETURN UNDELIVERABLE CANADIAN ADDRESSES TO CIRCULATION DEPT EMC PUBLICATIONS 19073 63 AVE SURREY BC V3S 8G7 email: [email protected] Call 1-800-667-0955 to reach 2,300 buyers who are sourcing new products. PRESIDENT & CEO’S MESSAGE
Provincial Update by Dave Kaiser
An unexpected deficit of $4 billion, a minor and industry behind a shared vision. We cabinet shuffle, and a new direction for expect to see recommendations that will gaming and liquor - these are important enhance STMC’s relevance and effectiveness issues that will impact Alberta’s tourism and as part of the new framework. Dr. Richard hospitality industry. As the voice of industry, Starke, the new Minister of Tourism, Parks and committee to provide input on strategy and the AHLA is focused on the threats and Recreation, will undoubtedly have input and policy. The people and topics of discussion opportunities these issues may present. will ultimately be responsible for all major at the first meeting were very different from The negative impact of the “bitumen bubble” changes to Alberta’s tourism strategy going meetings the AHLA has attended in the past. on resource revenue is a major challenge. forward. Based on the discussion, I believe we will see Greater fiscal discipline through results-based Deputy Premier Thomas Lukaszuk was a more entrepreneurial and growth oriented budgeting, austerity, and alternative revenue appointed Minister of Enterprise and direction for gaming and liquor, balanced sources like a provincial sales tax are all part Advanced Education. This department with social responsibility, in Alberta in the of the discussion. Every dollar of revenue is critical to our industry as it funds post future. - including the Tourism Levy - and every secondary institutions and is responsible for It is vital that our industry has the opportunity expense will be scrutinized. Ensuring the labour and immigration. Given the Minister’s to provide input on strategies and policies. Tourism Levy remains dedicated to tourism past experience with labour and immigration, I can assure you that the AHLA has and marketing and product development is a top we are optimistic that the Alberta Immigrant will continue to engage with government priority for the AHLA. Nominee Program (AINP) will continue to be to support our members and strengthen Much work has been done on a new tourism responsive and accessible for our industry. Alberta’s tourism and hospitality industry. framework that will align Travel Alberta, Bill Robinson, the new President and CEO of We look forward to serving you! Alberta Tourism, Parks and Recreation, the the Alberta Gaming and Liquor Commission, Strategic Tourism Marketing Council (STMC) has created a new stakeholder advisory
alberta hospitality | 5 COVER STORY In-Room Entertainment Changing Expectations
by Carol Schram
Not so long ago, hotel entertainment was simple stuff. For the most part, travellers were content with having access to basic TV channels, a 24-hour news channel, and a variety of pay movie options.
Photo courtesy of Hyatt Regency Calgary 6 | alberta hospitality In-Room Entertainment
hese days, different types of properties are coping with a wide T range of challenges when it comes to keeping travellers entertained during the time spent in their rooms. Broadly speaking, the key objective is “better than home.” “Guests are now more interested in streaming their own content from the Internet,” says Grant Erickson, director of sales and marketing at the Delta Calgary South Hotel. “This gives them the full flexibility to watch what they want, when they want. The quality of everyone’s experience at home has improved so drastically in the last 10 years that they expect something similar in a hotel: fast Internet, big TV, HD programming, and connectivity for their devices.” Guests are now travelling with portable Courtesy of Delta Hotels entertainment units like laptops, tablets, and smartphones that house movies, music, games, and access to streaming services like Netflix. At the very least, they want to be able to easily link their devices into the hotel’s Guests are now more interested in streaming their own system and enjoy their entertainment on the content from the Internet. flat-screen TV or in-room audio player, just like they do at home. {
alberta hospitality | 7 In-Room Entertainment
Delta Hotels are accommodating their guests’ wishes with an extensive room redesign, called ModeRoom™. As Erickson explains, “This new design provides spaces that are modern, adaptable, and laden with technology features including the SmartDesk™, a fully-wired, multi- purpose area that provides guests with a clutter-free space, built-in power and a connectivity dock that easily links your laptop and mobile devices to the flat screen high definition TV.”
Photo courtesy of Delta Hotels
In-room televisions are also on their way to becoming central communication {portals in many properties. All Eyes on the Internet Hotels across the spectrum are making improvements to provide the connectivity technological devices require. Delta Hotels claim to offer the fastest Wi-Fi of any hotel chain in Canada, and as director of operations Cole Millen of the Delta Lodge at Kananaskis clarifies, wired broadband alone is no longer enough. Other“With the adoption of smartphones, tablets, and laptops, more and more guests now require Wi-Fi.” Marriott In the past year, properties from the Super 8 Hotel Edmonton South to Whistler’s Inn inBest Jasper Western have also made improvements to their Internet speed and connectivity throughout their facilities.
TV is Key IHG The centrepiece of every in-room entertainmentHilton system is its television. These days, TVs are bigger, flatter, sharper, and usually offer channels in high definition. “Entertainment is not our highest priority, since it’s not generally a major reason why guests choose to stay with us,” explains Vanessa Hugie, general manager of Whistler’s Inn in scenic Jasper. Nevertheless, changing expectations can’t be ignored. The property plans to finish upgrading all of its rooms to plasma flatscreen TVs in the near future. At the Super 8 Hotel Edmonton South, television upgrades are expected to be complete by the end of this year. At the Hyatt Regency Calgary, 37 inch LCD televisions have been standard for a couple of years, so the attention is being turned to programming. “People are now accustomed to seeing things at home in hi-def, so last year we upgraded most of our channels to HD,” describes Bryan Flood, the property’s director of rooms.
8 | alberta hospitality Now every room can have a great view.
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BEL2495_HOSP_EMSPUB.indd 1 13-02-04 1:37 PM
File Name Trim Size (File) Trim Size (Final) Usage BEL2495_HOSP_EMSPUB 8.5" x 11" 0" x 0" INN Focus Colours Live Area (File) Live Area (Final) 4C 8." x 10.5" 0" x 0" Art Director / Designer Bleed Size (Final) Bleed Size (Final) 8.75" x 11.25" 0" x 0" Proof Size File Size Visual Opening (File) Visual Opening (Final) Notes 100% of fi nal size 100% of fi nal size 0" x 0" 0" x 0"
Creative Assoc. Art Account Copy Layout Director Cr. Dir. Director Designer Person Client Approvals: Client Revisions: 0 0 In-Room Entertainment
Hi-Tech Wellness Solutions Future Focus The Hyatt Regency Calgary has also augmented their 24-hour fitness In-room televisions are also on their way to becoming central centre with new fitness options offered through their in-room pay-per- communication portals in many properties. Customized programming view system. “It’s similar to the way you would order a movie,” shares and promotional channels are common, and TVs have become more Flood. “There are workout programs and yoga programs that you can interactive, allowing guests to order room service, book spa or golf times, view directly from your TV and do right in your guestroom. We have or complete their checkout simply by using the in-room remote. yoga mats available that can be delivered to your room as well as some In addition to interactive television, handheld devices will also play a big small hand weights, jump ropes, resistance bands, and things like that. A role in the future. Some properties now provide their own smartphones lot of travellers like to have the privacy of their own room, and if you’re or tablets to guests upon check-in, with apps that can help to control choosing to do something like yoga, it’s a bit of a better atmosphere.” room features, provide information, and facilitate communication. Another possibility could be integrating a hotel’s custom app into a The Technological View guest’s own personal device, so they can use their phone as a room key Andrew Chelbus is the senior national sales manager for the business and also control everything from blinds to the thermostat, lights, and solutions division (hospitality) for LG Electronics Canada. He agrees that television as well as provide direct connection to the front desk and the hotels are generally looking to provide the “better than home” feeling. property’s other services. Key features on wish lists include sleek designs and functionality for Down the road, “I would expect to see more services offered through all possible uses and environments. “Whether the hotel wants to use tablets and smartphones, coupled with more interactive features on the cable, video on demand (VOD), or satellite, the TV needs to be able to television,” projects Millen. be installed seamlessly and adapt to any future technology,” explains Erickson predicts, “It will become standard to offer full HD programming, Chelbus. 42 inch TV or larger, and the ability for guests to choose the programming In terms of television offerings, demand for pay-per-view movies and at their convenience and hook up any device easily to view their own games from traditional industry providers is on the decline. Video programming.” on demand from cable and satellite providers can provide a viable With technology having evolved so rapidly over the last few years, option that allows the property more pricing flexibility, while customer it’s not easy to stay ahead of the curve. Check with your suppliers expectations continue to grow for more cable channels and more about technological advances so you can incorporate them into future high definition. Advances in green technology mean televisions with upgrades. environmentally-friendly footprints are being introduced, and 3D TV is just around the corner.
10 | alberta hospitality Suddenly, every room is the penthouse suite.
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Studio WHIP:Volumes:Studio WHIP:SHAW:P-Dockets:P13-0585_Shaw_Bus_Hospitality_Ads:P13-0585_SCS6694_IF_AH.indd ALBERTA’S TREASURES
Glacier Skywalk by Debbie Minke
No visit to Alberta’s Rockies would be complete without a drive along the spectacular Icefields Brewster Travel Canada is developing this Parkway. Astride the Continental Divide, the stunning world-class, fully accessible unique 325 km² Columbia Icefield is surrounded viewing experience in Jasper National Park, by some of the highest mountains in the which will provide an immersive, interpretive Canadian Rockies. It feeds eight major glaciers, guided experience for visitors. Brewster is working closely with Parks including the famous Athabasca Glacier, and its The Glacier Skywalk consists of a 400 metre Canada to ensure environmental stewardship meltwater feeds rivers and streams that empty and preserve the ecological integrity of the into the Arctic, Atlantic and Pacific Oceans. interpretive boardwalk and a glass-floored observation platform. Visitors will arrive at area. Since the location is already a public Indeed, a view of the entire Columbia Icefield the site via a free shuttle bus ride from the viewpoint along the highway (Tangle Ridge), necessitates a helicopter and a fat wallet, so Columbia Icefield Discovery Centre. From environmental impacts are expected to be the vast majority of visitors enjoy glimpses there, they will have the option to observe minimal. of several glaciers from the scenic Icefields the stunning landscape from the free public The combination of the Glacier Skywalk with Parkway and a stop at the Columbia Icefield viewpoint or to purchase an admission ticket the existing Columbia Icefield Discovery Centre Discovery Centre, which faces the Athabasca for an interpretive walk along The Discovery and Glacier Adventure will create a collection Glacier. Though the Athabasca Glacier has Trail that leads to the breathtaking views of The of visitor experiences along the Icefields receded dramatically since 1844, during Discovery Vista. Parkway that will serve as a draw for local, summer months visitors can travel onto the The Discovery Trail is a guided interpretive stroll regional and international visitors. Persons of ancient ice on “Ice Explorers” - 56-passenger all ages and mobility challenges will be able Terra Buses specially designed with six extra- along a 400 metre walkway, overlooking the Sunwapta Canyon, which contains interpretive to experience the Glacier Skywalk, one of the large, low pressure tires to travel on snow or ice few opportunities for a barrier-free wilderness with minimal damage to the glacier. stations highlighting the ecology, geology, glaciology, aboriginal history, and social history experience in the mountain national parks. Soon there will be an exciting new way to take a of the area. It leads to the Discovery Vista, The Walk’s architectural design won the look at this spectacular natural scenery. 6.5 km the glass-floored observation platform that prestigious Future Projects Competition by north of the Columbia Icefield Discovery Centre extends 30 metres over the Sunwapta Valley, the World Architecture Festival, and has been a new attraction called the Glacier Skywalk offering a unique opportunity to engage with described as “enhancing rather than shrinking is scheduled to be completed in September. the dramatic landscape. from the epic landscape.”
12 | alberta hospitality For more information, please call 1.888.824.6211 or visit LGcommercial.ca alberta hospitality | 13 FEATURE Alberta Properties Find Their Perfect Niche
by Joanne Sasvari
When Bellstar Hotels & Resorts’ Canmore properties decided to support local ski-cross star Brady Leman, they created a special fundraising accommodation package and figured it would appeal to a small niche of passionate skiers. They were wrong.
Photo courtesy of Travel Alberta
14 | alberta hospitality Alberta Properties Find Their Perfect Niche
t’s really almost anyone. We thought who like to travel with their four-legged it would be the skier, but it’s not,” says companions. It could mean providing reserved a delighted Ralf Strub, the company’s parking, cleaning stations, and complimentary Alberta Properties Find Their “I president and chief operating officer. lip balm for motorcycle travellers, the way “It was definitely designed for people that North America’s Best Western hotels do. Or were interested in sport, but it has gone way it could mean creating special programs for further. It’s working fantastically.” Strub adds, guests, such as outdoor adventures, culinary Perfect Niche “That’s the way niche marketing is going. If classes, or creative experiences. it’s really right for a group of people, then The Fairmont Banff Springs Hotel, for you hit the nail on the head and it just goes.” instance, offers a variety of packages There was a time when a property could attract including the opportunity to interact with new business just by putting nice sheets on the an artist in residence or to take part in an beds and fancy amenities in the bathrooms. eco-hiking adventure to beautiful Sunshine These days, that’s the minimum guests expect. Meadows. “One package isn’t going to speak Consumers are savvier, better travelled and to everybody,” Cote notes. “The artist-in- more value-conscious than ever before. They residence speaks to a really niche market, also have much higher expectations. As Lori and is very different from the eco package Cote, the Western Mountain regional director we’re offering, which is more family friendly. of public relations for Fairmont Hotels It’s taking the experiences that are available & Resorts, notes, “People are looking for in the destination and tying them into the experiences.” That’s where niche marketing resort.” After all, she points out, getting people comes in. involved in the destination “goes to the heart of why people come to these resorts.” Selecting a Niche Strub agrees. “It’s not about the hotel by itself. There are all sorts of niches, and all sorts of We are part of the destination and the stronger ways hotels, inns, resorts, and B&Bs cater the destination performs, the better we will all to them. It could be as simple as offering a perform,” he explains. “This business is not a Brady Leman photo courtesy of Bellstar Resorts pet-friendly room and doggie treats to guests one-property game. It’s a destination game.”
alberta hospitality | 15 Alberta Properties Find Their Perfect Niche
Niche marketing is also a way to connect guests with the community they’re visiting. In Canmore, Bellstar’s Solara Resort & Spa is home to the only theatre in town, so locals and guests can connect through their It’s taking the experiences that are love of cinema. As a result, Strub says, “We can include community and we can share the community with the guests.” available in the destination and tying them into the resort. Creating an Experience { What it comes down to is the importance of experiences; after all, the better the experience, the more likely guests are to come back. “People Boost your PR want to take home more,” Strub describes. “They’re looking for some Niche marketing can also create a huge spin-off in public relations depth in where they’re going. They’re looking at creating memories, benefits. Just ask Chris Williams, the innkeeper at Mount Engadine Lodge for sure.” in Canmore. Six years ago, the inn organized a concert called “Music The key to developing a niche market, according to Cote, is understanding in the Meadow” for its music-loving guests. It has since evolved into that people want a program designed around them. She suggests looking a whole series of concerts featuring dozens of acts, including several carefully at your customers, their demographics, and their interests, then Juno Award nominees or winners. Last year, several of the performers figuring out a way to make it easy for them to get the most out of their recorded a CD of original songs called “The Engadine Sessions: Come experiences. to the Mountain”. They promoted the CD on a concert tour throughout Alberta; even better, the CD has been heavily featured on both CKUA and CBC Radio. Cash In on the Benefits “This niche market has resulted in winter bookings for 2013 being up If you make the effort, the returns can be phenomenal. For one thing, over 30% on the books over last year with a large percentage of that due appealing to niche markets can fill rooms during the slower times of to the ongoing exposure of the music and the CD,” Williams says. “This year. At Canadian Rocky Mountain Resorts, for instance, creating cross- summer’s concerts are almost 75% full already, and we continue to get country and downhill ski packages saw most of the three resorts’ rooms airplay on CBC and CKUA. Every time they mention the CD, Mount occupied even in the doldrums of February. Meanwhile, Elkwater Lake Engadine Lodge gets some more great PR!” Lodge and Resort created real excitement in the usually sleepy winter Bellstar has experienced a similar result with its Brady Leman package months with its popular geocaching snowshoeing tours in Cypress Hills over the past two years. In the accommodation price, they include signed Provincial Park. memorabilia, a welcome letter from Leman and, if he’s training in the It can also attract a lucrative customer base that may otherwise be area, a chance to meet with the athlete. A percentage of the proceeds underserved, which is why Fairmont is looking keenly at the motorcycle returns to Leman, to help him get to competitions like the Olympic Winter traveller, who tends to be a freewheeling baby boomer with a love Games in Sochi. “It’s really personal attachment to a local athlete,” Strub of adventure and money to spend. “We see a lot more of that kind of describes. “It’s connecting with a Canadian athlete and also participating traffic, especially when you have a drive like the Icefield Parkway,” in activities with him in the area.” Cote notes. The resorts are looking at creating food and wine packages, The result of this package has been phenomenal, far greater than anyone hiking adventures, and special tours for this segment of the market. “It’s expected. So far, Leman has received far more money than he had speaking to how you can have this amazing journey, and how you can requested. Revenue and bookings are up at the resorts too. While Bellstar tie in these iconic attractions along the way.” has seen no drop in its regular ski packages, the Brady Leman package has just exploded. “It’s significant,” Strub says. “It’s win-win-win.”
16 | alberta hospitality TRAVEL ALBERTA Driving Tourism for Alberta by Bruce Okabe
Travel Alberta is pleased to release our fourth strategic business and marketing plan since becoming a Crown corporation in April of 2009. Our strategic roadmap has been clear and consistent since 2009 and we are focused on inspiring the world to stay in our destinations and experience all Alberta has to offer. For 2013-2016, Travel Alberta’s actions and activities will continue to support the following objectives outlined in our strategic plan: 1. Bring the Brand to Life 2. Defend and Grow the Business 3. Mobilize Industry Stakeholders 4. Drive Organizational Excellence The tourism industry in Alberta is building momentum. For three straight years, Tourism Levy revenue has grown more than 10% per year (2010 to 2012). We expect total visitation to increase approximately 5% and expenditures to increase 6.8% or about $530 million between 2011 and 2013. This is significant progress for Alberta and the foundation for our marketing approach in 2013-2014. In 2012, many Alberta tourism operators experienced their best year since the global recession in 2008. According to Alberta Tourism, Parks and Recreation, the indicators look good with increases in provincial hotel occupancy and average daily room rate revenue up 3.7% and 5.4% respectively compared to the same period in 2011; traffic increases of approximately 7% at both Edmonton and Calgary international airports year-to-date; historic site and museum visits up 7.2% in 2012; and employment in the accommodation, food and beverage sector increased 5.2% in December 2012, compared to December 2011. Destinations around the world are beginning to understand that tourism We will continue to capture imagery and stories from all corners of the provides a direct benefit to their economy and everyone is vying for province to build on our brand promise of goosebump moments for marketshare. In an age of hyper-messaging, the customer is overwhelmed travellers. with travel choices. Travel Alberta’s job is to identify markets with great potential, inspire travellers with compelling invitations, and make it easy Incremental revenue for the province will come from activities in to purchase an Alberta experience. targeted core and emerging international travel markets. Travel Alberta partners with the Canadian Tourism Commission (CTC) in our key Economically, we are starting to see recovery in the US - our largest international markets to maximize marketing efforts and leverage the source of non-domestic tourism. Eurozone issues remain in Europe, influence of Canada’s brand. which hinder our efforts in the UK and Germany in the short term. We are also keeping a watchful eye on Japan and monitoring its economic and It’s clear that revenue gains will be more difficult to achieve with our currency strategy. Our work continues with high hopes for a direct flight competitors - like Destination BC and Brand USA - gunning for Alberta’s from China into Alberta in 2013-2014. marketshare. We need to keep Albertans travelling in Alberta, while at the same time, bringing new dollars into the economy by inspiring Since 2009, Alberta has seen growth in annual airline seat capacity international travellers to choose Alberta as their vacation destination. of 2.2%. Air access is critical to our future tourism growth and Travel Against this backdrop, the CTC faces significant budget challenges; as Alberta’s efforts have paid off with increased air access from the Canada’s global presence continues to drop, so will Alberta’s. Netherlands, Japan, and Germany. The good news is that our business and marketing strategies are strong Albertans travelling in Alberta make up approximately 63% of tourism and Alberta’s tourism industry is resilient. Travel Alberta will boost expenditures for our province, and we are at risk to losing these travellers (instead of stand behind) the hospitality industry and our tourism to our competition. Reminding Albertans about experiences in their own operators in their marketing efforts for 2013-2014 with $7.3 million of backyard is critical to the success of our Canada marketing strategy. We co-operative marketing dollars available to Alberta-based marketing are committed to developing strong partnerships with Alberta operators partnerships and travel deals populated on travelalberta.com using the to strengthen their marketing efforts and connect customers to the Alberta Tourism Information Service (ATIS) platform. experiences they have to offer. If we collaborate and work together as TEAM ALBERTA we can withstand We are making an impact on Albertans with (remember to breathe) - a the challenges the future has in store. simple and powerful statement about our destination, both for residents and visitors. This is an emotive selling proposition that shares deeply Travel Alberta’s 2013-2016 business and marketing strategy is available personal and intensely emotional Alberta moments with our customers. online at www.industry.travelalberta.com.
alberta hospitality | 17 KEEPING STUDENTS SAFE by Barbara Malacko
A strong orientation program will: • Provide job-specific safety training before any work is assigned; • Teach emergency procedures before any work is assigned; • Pair young workers with experienced, safety-conscious workers; • Ensure that everyone follows the safety rules; • Instruct staff regarding how to report unsafe conditions or health hazards; • Explain why it’s important to report a hazard or injury immediately; • Reward workers who make workplace health and safety a priority; and • Showcase the trainer - leading by example - wearing protective equipment and demonstrating safe work habits.
Additional Safety Training Providing a proper orientation is one key element to helping a young worker remain injury free. Other factors include adequate training, supervision, reinforcement, and an open line of communication for any questions they may have. Remember, a young worker may not be comfortable asking questions (they want to impress you), so be sure that the new employee can answer each of the following questions: 1. Who should I go to if I have a safety question? 2. What are the risks and dangers of my job? Are you ready to hire your summer students? What can you improve on 3. When is my safety training? from last year? 4. What safety equipment should I use? 5. What do I do if there is a fire or emergency? Hiring summer students goes beyond the interview process and 6. Who should I go to if I am hurt at work? surviving a summer with as little absenteeism as possible. It also involves seriously considering the risk of a student sustaining an injury during his employment with you and what steps you can take to reduce the risk of Top Training Techniques a workplace incident. Hotel workers aged 15-24 years accounted for 23.8% of lost time claims 75 % Practice by doing in 2012. The reasons for this high percentage of injuries include: 50% Discussion Group • Over 50% of young workers reported they had not received training 30% Demonstration before starting a new task. 20% Audio-Visual • Young workers tend not to ask questions. 10% Reading • They lack an understanding of their rights as workers. • They’ve been given more dangerous jobs than they are qualified for. 5% Lecture • Youth feel invincible. • They’re distracted at work. Resources to get you started can be found at: • The fast pace of work. • The Alberta Hotel Safety Association website at www.ahsa.ca, Many of these issues are within your control. or email [email protected]. • www.bloodylucky.ca • www.wcb.ab.ca Orientation • www.worksafe.alberta.ca Clear communication through an orientation program, will help new workers understand how to carry out the tasks within each job. It will Barbara Malacko is Executive Director of the Alberta Hotel Safety reduce their need for improvising on the job, and can reduce their level Association and can be reached at 780-702-3059 ext. 254, 1-800-649-1242 of frustration from not understanding. or [email protected]
18 | alberta hospitality Congratulations
Recognizing Excellence – Invitialbertang hospitality Suc |c 19e ss PROFILE Wagon Wheel Motel Western Hospitality at its Best
by Terri Perrin
ravellers and business people in central T Alberta can find a ‘home away from home’ at the Wagon Wheel Motel in Killam. The 18-unit, two suite, one-story motel has been a fixture in this small town of 1,000 people since 1964. It has been owned and operated by Jim and Adele Clark since 1991. Both Adele and Jim were born and raised in Killam, and they wanted to be able to raise their children in the community they loved. Adele had previously worked at a bank, and when her children were young, she gained management experience by managing a seniors’ apartment building. Jim is a journeyman electrician, and in addition to helping run the extensive renovations as soon as we took possession. It helped that Jim motel, he owns and operates Banjo Electric Ltd. is an electrician and a great handyman. We also had a lot of help from “My father-in-law was an entrepreneur and my father is a family and friends.” farmer,” explains Adele. “Since both of our families have run The Wagon Wheel Motel is comprised of a main house, where the Clarks businesses, Jim and I were familiar with what it was like to live full time, the original 18-unit motel that was built in the 1960s, and run a small business. When the Wagon Wheel Motel went into a two-suite building that was moved onto the property four years ago. foreclosure in 1990, Jim’s father encouraged us to consider it as Both suites in the new building are about 900 sq. ft. with full kitchens; an investment. Since it was so run down at the time, we were one has two bedrooms and one bath and the other has two bedrooms able to negotiate a great price on the property. We started and two baths.
2020 || albertaalberta hospitalityhospitality This small but successful enterprise is the epitome of a family-run operation. All three of the Clark children (now grown) have worked at the motel over the years. Adele’s mother, Diane Kelndorfer, has been part of the team since day one, and Jim’s sister, Carole Bergum, works Owners Jim and Adele Clark there too. While not relatives, other employees are treated with the same respect as family and are considered to be integral members of the team. Killam is located in the heart of oil and gas country, about 45 minutes west of Camrose. As a result, most of the Wagon Wheel’s guests are oilfield and construction workers. During the fall hunting season, duck and goose hunters come up from the US to stay at the motel. It is also a popular place for people coming to Killam to attend weddings, family reunions, and other special events. The ambiance of the Wagon Wheel Motel is enhanced in that each room is unique, and the Clarks have made an effort to make every unit’s décor very homey. In fitting with the motel’s name, one room even has a western theme. “It was relatively easy to make each room look different,” notes Adele. “The motel was built in several phases over the past 50 years, so all of the units are differently shaped to start with!” Strict attention to cleanliness, motel maintenance, and guest comfort are some of the reasons that customers keep coming back to the Wagon Wheel. Adele is proud to say that they have been honoured with three Alberta Hotel and Lodging Association (AHLA) housekeeping awards; in 2008, 2011, and 2013. “AHLA inspectors always comment on our attention to detail and how, when a problem is identified, we see that it is dealt with immediately,” explains Adele. “I have excellent employees who are very loyal and do an exceptional job with everything from customer service to housekeeping. We do our best to ensure that this is a good place to work. I firmly believe that employees who are content and confident that they are appreciated will always do a better job. We all work as a team and when anyone provides feedback or suggestions, we listen and act on it as soon as possible. When it comes to housekeeping, the girls work in pairs. I think it really helps that they can work together because cleaning can be a monotonous job. They trade off parts of the job to change things up.” Adele adds that she also makes an effort to use cleaning products that are environmentally safe, not just for the environment and the guests, but for her staff. “We also put in very high quality beds,” concludes Adele, “because we recognize that we are not selling motel rooms, we are selling sleep.”
albertaalberta hospitalityhospitality || 2121 Canadian travel intentions by Hotel Association of Canada Social Media Popularity Rises The latest results from the 2013 HAC Canadian Travel Intentions Survey Since 2009, the Internet has been the most popular way for people show that business and leisure travel is projected to be up 2% in 2013. to make their hotel reservations. 59% of leisure and 62% of business 82% of business travellers said they would be doing more or the same travellers only use the Internet to make their reservations. When asked amount of business travel in Canada in 2013 as they did in 2012. 84% about where they gathered information for their last trip, 73% of leisure of leisure travellers said they will be travelling more or the same for and 61% of business travellers said the Internet. Almost double the vacations this year. number of business travellers (15%) said they used social media sites to While leisure travel has increased slightly, overall 34% of respondents get travel information, compared to only 8% in 2011. from BC said they would be travelling more for leisure, 11% more The top five things leisure travellers are looking for on the Internet are than the national average. Respondents in the Prairies were the most photos, maps, specials, amenities, and guest ratings. Topping the list for uncertain regarding leisure travel with 17% indicating they will travel business travellers is directions, photos, amenities, specials, and shopping less than last year and 8% stating they don’t know what their leisure for rates. Of all the things that can influence leisure and business travel plans are for 2013. Of those who said they would be travelling travellers accommodation choices, star and diamond ratings top the list less for leisure in 2013, 31% said they were doing so because of financial at 74% for leisure and 76% for business travellers. On the business side, difficulties, while the cost of airfare was also identified as a leading the influence of travel blogs is up significantly over last year’s numbers, reason for travelling less. with 18% saying they had influence on their accommodation choices in Business travellers who said they would be travelling less said the 2012, and 31% in 2013. The influence of social media has doubled over number one reason for doing so is the cost of airfare in Canada (34%), last year’s numbers from 12% in 2012 to 24% in 2013. followed by the use of tele/video conferencing (23%). BC (48%) and Ontario (36%) business travellers also cite the cost of airfare as a reason Smartphone Usage for travelling less in 2013. These two provinces lead the country for the number of travellers going to the US to buy less expensive airline tickets. Almost 60% of travellers use smartphones when they travel. This year the survey asked that group what they used their smartphones for while travelling. The majority (41%) uses them to check the weather as well as departure and arrival times (29%), which is similar to 2012. 38% said they use GPS and/or get directions on their smartphones, an increase of 6% since 2011. Of those that book their travel via smartphones, 39% said they intend to use it more in 2013, and 45% said they would use their smartphones the same amount as in 2012. Facebook continues to be popular. 24% of travellers (similar to 2012) said they use their smartphones to check their messages and update their status on Facebook. 11% book hotels and 15% book air, train, or bus tickets on their smartphones, up 8% over 2012 figures. Travellers were asked what they would like to see included in a hotel mobile app. The top five answers continue to be finding a hotel’s location, booking a hotel room, checking a reservation, calling for reservation support/customer service, and linking to a hotel’s full website. “In 2012 the greatest percentage of travellers calling for these types of hotel mobile apps was in the 25-34 age range, but the 35-44 age range has surpassed them in our 2013 survey. As all age groups embrace the app technology, hotels have the opportunity to develop something that meets the needs of a growing market of travellers,” noted Anthony Pollard, HAC President.
Environment Remains Important 44% of business travellers (up 8% from 2009) said environmental initiatives such as water recycling and energy efficiency, are important to them. 36% of leisure and business travellers said it is important for hotels to have green products. 26% of leisure travellers and business travellers said a hotel with an environmental certification program is important to them. 20% of business travellers and leisure travellers said the ability to purchase carbon credits is very important. 49% of travellers said they would pay $1 or more in carbon credits to offset their stay at a property, up 5% over last year.
22 | alberta hospitality Protecting Cardholder Data by Chase Paymentech
Maintain an Information Security Policy 12. Maintain a policy that addresses information security
Educational documents are available at www.pcisecuritystandards.org. Find more information about these 12 requirements, the Self-Assessment Questionnaires (SAQ), for merchants to assess their cardholder environment, and PCI-validated payment terminals and software at this website. You may also want to review the “Prioritized Approach” and download the tool, which provides a roadmap to prioritize efforts for merchants who are working towards achieving compliance.
Providing customers with secure payment options not only provides *Please note: The information in this Quick Tips article is provided “as is” and “as available” more incentives to buy, but it is also the merchant’s responsibility. In for general information purposes only. Chase Paymentech Solutions does not in any way fact, failure to protect cardholder data could result in fines from the card guarantee protection against fraud, chargebacks or other similar activities. ™Trademark of brands as well as remediation costs in the event of cardholder data loss. Chase Paymentech Solutions, LLC, Chase Paymentech Solutions authorized user. All other trademarks, registered trademarks, product names and logos identified or mentioned herein This is in addition to loss of business and damage done to your brand are the property of Chase Paymentech Solutions, LLC, or their respective owners. reputation.
How Can Merchants Protect Customer Cardholder Data? The PCI Data Security Standards (PCI DSS) is a set of common industry security requirements meant to help provide merchants with a single path to safeguarding sensitive data. The PCI DSS is comprised of 6 broad areas of security in 12 requirement categories, covering the technology as well as the process used by the staff involved in payment processing. Below are short descriptions of each:
Build and Maintain a Secure Network 1. Install and maintain a firewall configuration to protect data 2. Do not use vendor-supplied defaults for system passwords and security parameters Protect Cardholder Data 3. Protect stored data 4. Encrypt transmission of cardholder data across public networks Maintain a Vulnerability Management Program 5. Use and regularly update anti-virus software 6. Develop and maintain secure systems and applications Implement Strong Access Control Measures 7. Restrict access to data by business need-to-know 8. Assign a unique ID to each person with computer access 9. Restrict physical access to cardholder data Regularly Monitor and Test Networks 10. Track and monitor all access to network resources and cardholder data 11. Regularly test security systems and processes
alberta hospitality | 23 FEATURE Fraud A Fearsome Foe
by Leonard Polsky
“All saints can do miracles, but few of them can keep a hotel,” said Mark Twain. If saints can’t keep a hotel, who can?
24 | alberta hospitality FRAUD: A FEARSOME FOE
raudulent incidents and practices plague hotel owners and operators including theft of food F and beverages; misappropriation of revenue; decreased profit; less advantageous contract terms; loss of asset condition; and inflated supplier expenses. It is an unfortunate truth that properties routinely lose revenue to deceptive clients, suppliers Fraud and employees. To stem the tide, without saintly intervention, a more A Fearsome Foe earthly approach and advance planning are needed.
What Is Fraud? Fraud is available in two flavours: fraudulent incidents and fraudulent practices. Fraudulent incidents encompass a wide variety of dishonest actions. The perpetrator plots to obtain money or other benefits from a hotel or restaurant. These acts are normally criminal in nature and amount to premeditated theft. Examples include misappropriation or falsification of records at point of sale, and theft by employees, such as cash fraud for It is an unfortunate truth that properties routinely lose vacant rooms. revenue to deceptive clients, suppliers, and employees. Fraudulent practices are more subtle. These are practices that demonstrate poor judgment, but there is an absence of dishonesty or deception. Sometime { employees consider these a “perk of the job”.
alberta hospitality | 25 FRAUD: A FEARSOME FOE
What Can You Do? The legal remedies available to hotel owners Segregation of front of house duties and bank and operators also fall into two categories: reconciliation is a must. criminal and civil. In the case of fraud by an employee, the first step is to investigate internally when fraud { is suspected. The investigator will consult had inadvertently not been charged to a large The court felt it was unfair to dismiss someone with the employer, with or without police party, and to discount the purchase of one for what amounted to poor judgment and involvement. beer to an off-duty company employee. described the theft characterization as Following a disciplinary investigation, the The employer terminated the bartender, “completely and utterly inaccurate”. It did not employer may decide to terminate the alleging that he had failed to follow company help the employer’s cause that the practice responsible individual. Before doing this, policies and procedures and for breach of was a regular occurrence. consider whether doing so might trigger trust. There was no police involvement. The court also chastised the employer for a wrongful dismissal action, especially if The employer had a practice of leaving failing to investigate the incident properly the employee disputes the allegation and managers’ swipe cards with employees, and the high-handed approach it took feels compelled to “clear his name”. If there but required them to seek management’s in dismissing the employee, when his is inadequate proof of wrongdoing, but approval before or after their use. In this employment contract provided for a lesser the employer remains uncomfortable, a instance, the court confirmed that the penalty, simply docking the write-off from termination without alleging cause may be bartender had forgotten to seek approval for the bartender’s pay cheque. The court appropriate. It is important not to jump to the write-off, but concluded that he made ordered the employer to pay the bartender’s conclusions. no effort to conceal what he had done or lost income for the time he was unemployed To illustrate, in Moyen v. D.D. Investments Inc. to defraud his employer. He did not gain following his termination, and said that an experienced bartender with 20 years in any benefit from writing off the purchase or punitive damages would have been awarded the hospitality industry used a manager’s issuing the discount. as well had the employee sought them. swipe card to write off a $15.00 charge that
26 | alberta hospitality FRAUD: A FEARSOME FOE
Calling the Police There is no duty to report alleged criminal activity to the police, but if the alleged wrongdoing is serious, reporting may be wise as well as necessary for insurance purposes. If management chooses to involve the police and a criminal conviction follows, the employee is less likely to sue for wrongful dismissal, because the employer can use the results of the criminal trial in the ensuing civil lawsuit. This may be especially useful in situations where the employer hopes to recoup losses from the employee for the fraud perpetrated. As with all litigation, management needs to weigh the cost of proceeding to a civil trial against the ability of the employee, supplier, or customer to pay the judgment. It will be unproductive to seek restitution if the perpetrator is insolvent. For example, in R. v. Gallo the accused was caught making a hotel reservation with a stolen credit card. Mr. Gallo was charged with five counts of fraud and possession of stolen credit cards and personal banking information. He was allegedly involved in a sophisticated computer hacking and social engineering scheme in which he gathered personal information in relation to roughly 50 people. This resulted in a loss of $70,000 to the bank and its customers. The police were investigating him from a prior incident that involved confiscating a bag full of stolen credit cards and identification information. In this situation, the parties defrauded by Mr. Gallo would have been wise to follow his criminal trial. The fact that he posted cash bail of $10,000 suggests that he was far from insolvent and may well have been able to pay restitution, presumably without having to rely on cash advances. In the case of R. v. J.G.S., the accused was charged with a number of offences including using stolen credit cards to make reservations at two hotels. Both hotels provided victim’s statements to the police after detecting the fraud. The perpetrator was apprehended and sentenced to five months in jail. In addition, the court ordered him to pay compensation to the two hotels.
Other Options You can also seek retribution from wrongdoers by suing for theft, fraud, misrepresentation, overcharging for goods, breach of good faith and fair dealings as well as other causes. Apart from the financial costs, many properties are reluctant to bring a lawsuit due to the public nature of our legal system. Once a lawsuit is started, all court filings are accessible to the public. It may not reflect well on the image or brand of a hotel to have its confidential business affairs revealed to the public. No business wants to make the front page by drawing attention to mismanagement or untrustworthy personnel. For these reasons, hotel owners and operators often consider resolving their disputes by means of mediation or arbitration. Privacy and expediency often make these better alternatives to public, costly and lengthy court trials.
Prevention Whether a property chooses to deal with fraud internally, criminally or civilly, the best method is, of course, prevention.
alberta hospitality | 27 FRAUD: A FEARSOME FOE
• Management should implement monitoring policies to ensure that hotel personnel are adhering to proper procedures. • Refunds and credits should be reviewed daily. • Insurance can be purchased to protect against the fallout of cyber-crime. • Controls and procedures should be updated to meet the current challenges of the industry and evolving technology. • Management agreements should be reviewed Fraudulent to reduce opportunities for wrongdoing and increase means of detecting fraud. Booking Site By maintaining up-to-date information and Be aware of a potentially High turnover and failure of operators to clearly understanding hotel policies, duties fraudulent booking site called properly explain employee responsibilities and responsibilities, hotel owners and www.olotels.com. Guests have are among the principal reasons fraud occurs operators will have the necessary tools to received email confirmation of or is not detected. Putting the following best minimize exposure and bring a successful their hotel booking and been practices in place will protect your company lawsuit if needed, be it to challenge a fraudster charged via the site only to find from fraud: on a shop floor or in the boardroom. out, upon arrival, that nothing has • Segregation of front of house duties and been reserved on their behalf and Leonard Polsky is a lawyer practicing in the there is no way to contact people bank reconciliation is a must. areas of commercial litigation and employment law in Calgary. at the website. • Staff should be trained to detect fraud by guests, employees and suppliers.
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28 | alberta hospitality Travel Trends in 2013 by Ann Mack
Here’s a forecast of key travel trends that will drive or significantly impact Political Vacations - Affluent travellers are seeking new kinds of status travellers’ mindsets and behaviours this year. trips, as embodied by Political Tours of the UK, which offers clients “current affairs at first hand”. This includes a tour of Northern Ireland led Fitness on the Go - With travellers looking for more ways to work out by BBC correspondents and trips to hot spots including Georgia, North while on the road, the hospitality industry is providing new options. Korea, Bosnia, Kosovo, and Ethiopia. Many of these trips are curated by Hotels are supplementing the basic gym with fitness classes, designing political experts with insights into the region. guestrooms to accommodate people doing yoga or cardio, or providing on-demand workout videos. Airports are also helping travellers squeeze River Cruising - River cruising is slated to make a splash in the travel in some exercise during layovers. industry. In 2012, for instance, British cruise brands Voyages of Discovery and Hebridean Island Cruises both introduced river cruises. Other Live-Streaming - Life memories will be live-streamed in real time. The companies are adding river cruise itineraries worldwide as well as new newest super-compact video camera from GoPro is 30% smaller and 25% ships. lighter than its predecessors - a big selling point for the skiers, divers, and other extreme sports enthusiasts who love to document their exploits - Set Jetting - New Zealand has seen a 50% spike in tourist visits since and it includes built-in Wi-Fi, enabling live-streaming of footage. Users The Lord of the Rings debuted in 2001; now The Hobbit is expected to can also control the camera remotely using a smartphone app. bring even more travellers to the Pacific nation. Long popular among film fanatics, “set jetting” will become more mainstream, especially as more Nature as Antidote - With urbanization rising steadily (today more than sites start to tout their Hollywood connections. As part of the promotion half the world’s population lives in cities, compared to less than 40% in for 50 years of James Bond films, the stars made appearances at set 1990), more people will retreat to nature to escape the pressures, noise, locations around the UK in 2012. In 2013, Life of Pi (filmed in India) and pollution, traffic, and other stressors of the city. We’ll also see this urge The Lone Ranger (the American West) are expected to help draw visitors manifest itself in other ways, from an embrace of natural, organic elements to those filming locales. in décor to ever more nature-themed entertainment programming. Shopping - Hotels in Middle Eastern countries including the UAE, Lebanon, Saudi Arabia, Egypt, and Bahrain, mega malls with hotels in them are fueling a tourism recovery after the Arab Spring of 2011 took its toll. A Sheraton will open in Dubai’s Mall of the Emirates in 2013, and the upcoming Yas Mall in Abu Dhabi will house seven hotels. See how you can incorporate these trends into your offers and packages this year.
Ann Mack is the Director of Trendspotting at JWT, the world’s best-known marketing communications brand.
alberta hospitality | 29 FEATURE Hotel Discounters Are They Helping or Hindering the Industry?
by Ronald Lee
Like them or not, hotel discounters are firmly embedded in the travel agency ecosystem. While using discounters can be a significant revenue opportunity for hotels, it also comes at a significant cost.
30 | alberta hospitality HOTEL DISCOUNTERS
otel discounters, also known as between discounters and hoteliers took a turn online travel agents (OTAs), are for the worse. The single biggest complaint H travel aggregators - they represent a hotels have against discounters is that they variety of travel-related services and take a very large portion of the margins for sell these online through major websites with booking. If both the hotel and the discounter the perception that they offer better deals on are offering the same rooms at the same price, rates than a customer might find anywhere giving up 20-30% of the booking rate to the else. discounter is a huge pill to swallow. “In a competitive environment, distribution is Li continues, “Typically hotels do use them. a key to success,” says Dan McGowan, general You really have no choice. You really need manager of The Fairmont Palliser in downtown to be in the marketing business nowadays… Calgary, “They [OTAs] are a component of because it’s such an important avenue to get today’s distribution opportunities.” new guests. I think most hotels, bigger hotels, use online booking engines. It’s a relationship What’s the Beef with Hotel Discounters? between the third parties and the hotel and it’s a good piece of the hotel’s business.” From the discounter’s point of view, they help hotels put heads in beds by: Hotel discounters are able to command such large commissions and deep discounts 1) Selling excess unused room inventory. because they bring in the volume. They put 2) Introducing new guests to the hotel who a lot of resources into their online marketing might never have known about it otherwise. and search engine optimization (SEO), and Discounters now have huge networks of users. are sometimes accused of brand hijacking (i.e. 3) Packaging services such as flights, car rentals, ensuring that their discounter site shows up on and hotels all in one place, making irresistible Google search results when customers search offers to customers. for the name of the hotel) and thereby stealing the customer.
The single biggest complaint hotels have against discounters is that they take a very large portion of the {margins for booking. 4) Offering personalized attention to help sell McGowan speaks further about his strategy sudden room availability. with discounters. “These supplier relationships This has resulted in hundreds of millions, are like any other, and in order for success to perhaps billions, of dollars in sales every year be found by either party, those two parties paid to hotels by discounters. need to understand each other’s needs. Every branded and non-branded hotel should Dawn Li, general manager of both the Mettera manage their distribution channels and should Hotel on Whyte and Varscona Hotel on Whyte know what they are willing to accept. We guide in Edmonton remarks, “The opportunities we all of our guests to Fairmont.com, where guests have with the online OTAs… quite often attract can not only book, but where we can provide first time guests.… It’s good marketing for us our customers… with a greater amount of to be out there and be visible to people who information about the services and products may not have thought about our property in that we offer.” the past.” Others complain that using discounters However, to some hoteliers, discounters are devalues the hotel brand, or the entire region like the weird uncle that always embarrasses in general. Customers will always want lower you at family outings - you don’t like him, but prices if they expect they can get them. Some he’s there every year whether you like it or not. properties have opted to use opaque sites, It wasn’t always this way. At first hotel which only list a price and don’t reveal the discounters seemed like a good idea, with many name of the property until the room is booked. hotels benefiting from their help (and many still do). But as time went on, the relationship
alberta hospitality | 31 HOTEL DISCOUNTERS
Package your rooms with other services, {so guests don’t see your discounted price.
The Start of Discounting After 9/11 there was a massive inventory of guestrooms available and discounters offered to help hoteliers by blowing out their rooms at incredibly low rates in order to entice people to start travelling again. When they first entered the marketplace, Booking.com was helping independent hotels differentiate themselves. They have since moved on to become more of a commoditized website, just like all the others, at which point it really just becomes a pricing game - a strategic pricing position. The travel dry spell lasted for about two years, and during this time two things happened that set the tone for the hotelier and hotel discounter relationship today: Firstly, more hotels turned to discounters to distribute their rooms as they became concerned about their bottom lines. Some hotels, particularly smaller ones, gave up marketing altogether and relied on discounters as their sole marketing and distribution channel. Secondly, discounters began to aggressively demand a merchant relationship with hotels. Rather than take a commission on sales, they wanted deeply discounted rock-bottom pricing for groups of rooms that they could mark up. Discounters became so aggressive with their negotiations that some hoteliers labeled them as excessively greedy. Li recounts the early days of discounters: “A long time ago, typically hotels would give third party companies a lower rate than their own websites, but that obviously doesn’t make sense. Now hotels will offer their guests rate parity, so wherever they book it’s going to be the same rate.” There are many accounts of blacklisting and bullying tactics by discounters over the past decade, yet they have firmly planted themselves in the travel agency landscape, with several well-known companies commanding the lion’s share of online transactions. Expedia and Priceline are the top two players in the industry, and new discount sites are starting up every year.
Expedia As the first hotel discounter and currently the largest, Expedia also owns Hotwire.com and Hotels.com. Based in Bellevue, Washington and operating in 22 countries, it is estimated that Expedia accounts for 44% of the total online travel agency market share with 60-80% of its revenue coming from hotel bookings. Therefore, it is no surprise that they are holding firmly onto the hotel market, as this business generates hundreds of millions of dollars a year.
32 | alberta hospitality HOTEL DISCOUNTERS
Weaning Off Discounters Following are some suggestions on how your hotel can become less dependent on discounters: • Spend the money you would have given to hotel discounters on marketing. Increase your marketing budget so you can build your database, promote your brand, and optimize your website. “It depends on how good you are with your SEO,” Li states. “It depends how you’re doing with your Google analytics and positioning. If you’ve got a good company working on your hotel’s SEO, typically your hotel pops up (on Google) first.” • Ask for price parity - offer the same pricing on your hotel’s website as on the discounter’s site so customers aren’t getting the lowest price elsewhere. • Shift to using discounters less. Aim for allotting only 10% of your Shifting the Balance inventory to discounters. Hotel discounters are firmly entrenched in the online travel agency world; • Focus on customer service to get better ratings on review sites such as however, many hotels are now promoting their own brand websites and TripAdvisor in order to increase repeat business. taking back some of the online booking business. • Package your rooms with other services, so guests don’t see your This is particularly evident with larger hotel brands that focus on the discounted price, and only use discounters that don’t openly disclose quality of their guests’ experiences and customer service. They understand your prices on their site. their unique selling points, so sometimes guests will book on the brand’s • Use a revenue manager to help you maximize your revenue and profits. website even after visiting a discounter during the course of their research. • Adjust your use of discounters according to seasonal trends. Forecast “We want to treat our guests as uniquely as they are,” McGowan asserts. future demand and don’t discount when you know it will be a busy “Our guests are not a reservation number, they are Mr. Jones or Mr. Smith period. and it is critically important that we understand them. Again, it’s back to the relationship to Fairmont.com, and we offer discounts through • Don’t start a price war in your city. Fairmont’s President’s Club to those loyal members.” • Create multiple sources of distribution to achieve your booking goals, These branded hotels have worked on their own marketing so that so you are not relying on any single channel. discounters contribute a smaller portion of their revenue. Contrast this with some smaller, independent or struggling hotels that don’t have their Ronald Lee is the Senior Marketing Consultant at Eat Marketing, a restaurant, food and hospitality marketing agency. He also works with Google to offer own marketing manager and depend on discounters as their main source their premiere Google Business Photos service, and can be found at www. of bookings. eatmarketing.com.
alberta hospitality | 33 US TRAVEL INTENTIONS by David Sheatsley
According to the October 2012 travelhorizons™ survey of 2,200 US adults, still recovering from the Great Recession and, as such, are watching 48% said they did, indeed, plan to take a leisure trip during the next six every penny and how that penny is spent. Since leisure travel falls in months. This marked the first time since March 2007 that leisure travel the category of discretionary spending, along with jewelry, making intentions fell below 50%. October 2012 intentions were down four home improvements, buying major appliances, etc., it doesn’t take points from October 2011 (52%) and off seven points from October 2010, much to swing the financial pendulum from a level of comfort to one of when 55% of adults said they planned to take at least one leisure trip uncertainty. during the next six months. All is not bad news, however, especially as it pertains to hotel guests. Our assessment was that US adults, given the increasing media coverage Leisure travel intentions, as expected, increase by household income. of the possible “fiscal cliff”, decided to put their travel plans on hold until Here is how leisure travel intentions played out by household income as Congress resolved the looming tax cut issue. Again, according to the of October 2012: October 2012 survey, 23% said that they were “not sure”, when asked Under $30,000 = 30% about their leisure travel plans for the next six months. This was again, $30,000 - $49,999 = 44% the highest percentage of uncertainty indicated since March 2007. $50,000 - $99,999 = 53% Based on questions asked about the potential impact on leisure travel $100,000 and more = 72% if the tax cuts were allowed to expire, 46% of all US adults agreed that elimination of the tax cuts would result in their taking fewer leisure trips Leisure travel intentions declined between October 2011 and October in the year ahead than this year. And almost two-thirds of these would 2012 for all income groups with the exception of those adults living take “substantially fewer” leisure trips. This translates into an estimated in households with incomes of $100,000 or more, which remained 108 million US adults re-thinking their 2013 leisure travel plans. unchanged at 72% from October 2011 to October 2012. I was reading an article about the fiscal cliff and one individual who was interviewed said that his weekly paycheque had been reduced David Sheatsley is Vice President of Research at MMGY Global and can be by $30. His response was that the reduction meant one less visit to a reached directly at 407.838.1871. restaurant for his family. $30 may not seem like much, but families are
34 | alberta hospitality Calgary Stampede saw 20% Increase in Attendance by Canadian Tourism Commission
The thousands of cowboys and cowgirls who roamed the Parade campaigns in Brazil, Germany, South Korea and the UK. Other key Grounds at last year’s Calgary Stampede had a global heritage like never stats include an estimated $9.2 million in tourism revenue, $2.8 million before. The 2012 Stampede had a record 1.4 million attendance level for in government revenue, of which $1.2 million went to the federal the 10-day Alberta spectacular, up 20% on 2011. government and support for 71 jobs in Canadian tourism businesses. The substantial uptick in international visitors was largely fuelled by “The Calgary Stampede is a proud member of our Signature Experiences a one-time funding allocation of $5 million to the Canadian Tourism Collection® and the CTC’s one-time funding to promote the Centennial Commission (CTC) by the federal government via Canada’s Economic internationally brought a solid return on the government’s investment,” Action Plan in its 2011 budget. The aim was to market the Stampede says Greg Klassen, CTC Senior Vice-President of Marketing Strategy and Centennial in key international tourism markets. Communications. “The campaigns will live long in the memories of A report published by the CTC reveals some of the initial results from consumers in those markets and have led to strengthened ties for CTC these marketing campaigns. Other main legacies of the work will be with our travel-trade partners.” cementing the Stampede’s stature as an international must-see event CTC worked closely with the Calgary Stampede, Tourism Calgary and and boosting Alberta’s and Canada’s profile as a destination for global Travel Alberta to develop an effective program. The partners used the travellers. Both will bring lasting economic rewards to the country as a government funding in four distinct areas: developing marketing assets, whole. direct-to-consumer advertising on TV, radio and online, media relations, More than 8,900 travellers booked trips to Canada in the six months and social media promotion plus promotions through tour operators leading up to the centennial celebrations as a direct result of CTC’s and travel agents.
alberta hospitality | 35 Storytelling and Destination Management by Brian White Trinity, and Port Union, and heard the stories Looking for a competitive advantage to that draws the viewer into different stories of these small communities, their dramatic develop and market your destination? Can’t and experiences - and not just within the ups and downs, and the residents’ struggle to afford a multi-million dollar conference centre? realm of tourism. survive over the past two to three centuries. Then an approach that’s gaining ground in I was struck by the resonance between the Stories from either current experiences or the Nordic countries might be of interest to experience of the place, and how the story from history can be tailored to meet a very you. In 2010, the Nordic Innovation Centre was reinforced when it was delivered by the wide range of different interests - and the (www.nordicinnovation.net, project number outstanding Newfoundland and Labrador websites can be matched up with interpretive 08041) published a paper on storytelling and Tourism marketing ads on television. At all programming put in place by arts, museums, destination development. They reviewed five levels, there’s an emotional link through and cultural organizations in collaboration cases where storytelling had been used to visual and oral storytelling. with the DMO. I found that the key skills in build long-term integration of community building an integrated storytelling approach interests and consistent marketing focus I put together a small research project to lie with strong project management and through participating in a common story line. analyze the key techniques that make long-term engagement of partners - many The idea was based on the Norse Sagas, and storytelling work for destinations. What I found of whom are likely to already be engaged in explored the importance stories can play in was that in all cases, the first step is to build interpretive programming using storytelling. reaching beyond digitally-based marketing. interpretive capacity (photo and text files) for First Nations communities are particularly stories selected to reinforce the destination The intriguing aspect for me was the skilled in this area. Storytelling appears brand. Story themes need to be developed engagement of customers in the stories. to be a very useful approach for building online, in marketing collateral, and with partner The approach was appealing because of the community buy-in because there is a direct organizations that can interpret the stories - opportunity for involvement and re-telling linkage established between the community and include visitors in them. My main interest of stories, thereby spreading the destination member and the visitor, allowing the was in the development of “storyboarding” - a message in an emotionally engaging way. visitor to become part of the story through technique borrowed from the film industry Stories can be built into blogs, websites, re-enactments, music, and dramatic events. that assembles the concepts, partners, and Facebook, and Twitter, ensuring that the It’s an idea that’s beginning to take hold, so stories into a matrix that can be used to build stories become part of the brand identity. why not give it a try? individual interpretive events, social media, I had the opportunity to see the approach brand strategies, and effectively targeted in action when I was teaching in Bonavista, messaging. Edmonton is one example where Brian White, PhD. is Director, School of Tourism Newfoundland last fall. During my class on the concept has been put into action - have a and Hospitality Management at Royal Roads cultural tourism development, we visited University. He can be reached at 250-391-2600 look at www.edmontonstories.ca. Here’s a site ext. 4769. Elliston, the “Root Cellar Capital of the World”,
WHAT’S NEW? by Debbie Minke
Absolute Wi-Fi Solutions (formerly OKWireless) has been actively developing a new, reliable, safe and secure guest Wi-Fi solution since May of 2011. Its innovative, user-friendly applications are available to any and all properties, whether it be hotels, RV resorts, conference centres, or B&Bs. Their system offers many features that help hoteliers and owners view Wi-Fi user statistics and bandwidth usage at their own property. Flip.to is designed as an engaging, personalized experience for each guest, encouraging guests to spread the word about their upcoming trip - and the selected hotel - at the time of booking and beyond. By seamlessly integrating with the guest’s social networks, the Flip.to platform is able to convert these social interactions into new bookings and additions to the hotel’s marketing database. With the new multi-language capability, Flip.to uses the language the customer selects on the hotel’s website and delivers the customized messaging in that language. There is no limit to the number of languages a hotel can select for message translation.
36 | alberta hospitality NAMES IN THE NEWS
Spring 2013 by Debbie Minke
Congratulations to the new general managers Ward, Windtower Lodge & Suites, Canmore; Year: Days Inn - Calgary Northwest; General at the following properties: Joey Belanger, and Barnie Yerxa, Quality Hotel & Conference Manager of the Year: Doug Sholter, Days Inn Copperstone Resort Hotel, Deadmans Flats; Centre Fort McMurray. & Suites - Strathmore; and Days Inner Circle Pamela Buttazzoni, Hinton Highway Inn, Grande Prairie Inn is now the Pomeroy Hotel Team of the Year: Days Inn - Calgary Airport. Hinton; Lana Brost, Super 8 Brooks; Julia & Conference Centre, where Alice Ling is the Chairman’s Award for Quality winners for 2012 Callarec, Canalta Hotel Oyen; Geo Cha, Provost new general manager. In Taber, the Lodge include: Days Inn - Calgary Airport (General Motor Inn, Provost; Treena Coney, Best Western Motel is now the Taber Motor Inn. Arvin Singh Manager Helena Borges); Days Inn - Edmonton Grande Prairie Hotel & Suites, Grande Prairie; is the new general manager. South (General Manager Zelia Silva); Days Michael Davis, Best Western PLUS The Inn Inn - Medicine Hat (General Manager Leslie at St. Albert; Taewon Eom, Plains Motor Inn, The Hotel Association of Canada (HAC) is Squires); and Days Inn & Suites - Strathmore Stettler; Don Griffiths, Grande Rockies Resort, celebrating its 100th anniversary this year. A (General Manager Doug Sholter). These hotels Canmore; Al Harpe, Ramada Inn & Suites Lac La celebration dinner and various special events are recognized for going above and beyond Biche; Paul Harrigan, Radisson Hotel Calgary took place during the HAC annual conference set standards in daily operations and customer Airport, Calgary; Will Horner, Coliseum Inn, in February, and the HAC has embarked on a service. Edmonton; Michelle Horton, Rockyview Hotel, year-long anniversary campaign that includes a Congratulations to the Comfort Inn & Suites, Cochrane; Angela Hwang, Days Inn Grande historical video and timeline amongst its many Airdrie, and Econo Lodge Canmore for Prairie; Rubeda Jessa, Horseman Motel, Airdrie; activities acknowledging and celebrating its winning 2013 Choice Hotel Gold Awards. These John Kim, Fox Creek Inn, Fox Creek; Mack centennial. properties exceed Choice Hotels’ standards for Lee, Manning Motor Inn, Manning; Alice Ling, Graham Wark has been named President of customer service, housekeeping, and product Holiday Inn Express, Grande Prairie; Michael Osram Sylvania Ltd. Wark assumes overall quality. Mauro, Four Points by Sheraton Edmonton responsibility for Canadian operations and South, Edmonton; Heather McNamara, support functions in all sales channels. Vantage Hospitality Group presented the Chateau Nova Fort McMurray; Lisianne McNee, Canadas Best Value Inn, Calgary with a “Best Marriott International has singled out Stop Inn Motel, Coleman; Thilak Nandagopal, of the Best” award for Best Website for hotels SilverBirch Hotels & Resorts for growing Coast Edmonton East Hotel, Sherwood Park; with less than 60 rooms. The hotel’s website the Marriott portfolio in Canada in 2012 by Bill Peavoy, South Country Inn, Cardston; (www.cbvicalgary.com) was chosen for its ease awarding the company with its Outstanding Samm Rae, Calaway RV Park & Campground, of navigation, graphics, photos, and links to Developer Award - Canada 2012 in their Calgary; Amrit Sandhu, Delta Edmonton South CBVI’s site. Modern Essentials and Extended Stay Brands Hotel & Conference Centre, Edmonton; Jeff category. Scheelar, Edmonton Marriott at River Cree If you have any noteworthy community Resort, Edmonton; Manny Singh, Super 8 Realstar Hospitality presented the following contributions, please email the details to Debbie Red Deer; Garrett Turta, Fairmont Hotel awards to its top hotels in Alberta: Property at [email protected]. Macdonald, Edmonton; Craig Usher, Hampton of the Year, 85 rooms and under: Days Inn Inn & Suites by Hilton Lethbridge; Robert - Edmonton South; New Property of the
alberta hospitality | 37 MEMBER VALUE PROGRAM
The ENMAX Energy / AHLA Power Program
Alberta’s deregulated markets can appear complicated and confusing For the Power Program, ENMAX Energy provides what is known as to even the most savvy business operator. In late 2010, ENMAX Energy “indicative prices”. This is the current best estimate of price based on all Corporation and the Alberta Hotel & Lodging Association (AHLA) available information at a given time, but rates in Alberta can change partnered together to offer the “Power Program”, an innovative program at any time. The only way to get a firm price is to go to the market and with competitive pricing and flexibility to help AHLA members manage receive a current offer. This is what the AHLA does through ENMAX their energy costs. Energy. ENMAX Energy monitors the market to determine the optimal time to The Benefits lock in a rate for AHLA Members who have executed contracts. Once a satisfactory rate is achievable, the AHLA and ENMAX Energy work AHLA Members have the opportunity to reduce their exposure to the together to determine the best time to transact. The program has volatility of the electricity market and lock in their rates for electricity entered into eight such transactions since its inception. at wholesale prices. The initial offering was for a 5-year period ending December 31, 2015. Over 450 AHLA members have already taken advantage of the electrical energy program and secured long-term About ENMAX Energy contracts. Recently, members have had the opportunity to take ENMAX Energy is an Alberta-based generator and retailer that understand advantage of a drop in wholesale prices and lock in power for the years the energy market from end-to-end, providing competitive energy 2016 and 2017. Benefits include: products that enable businesses to better manage their energy costs. • competitive electricity rates (some conditions, admin, termination Our energy experts will work with you to understand your business fees, and taxes beyond the electricity rate also apply); drivers and help you get what you need from the Power Program. • flexibility to add locations as needed at current market prices; ENMAX Energy is once again proud to be a Gold level sponsor for the • renewable energy purchase options; AHLA’s 93rd Annual Convention & Trade Show. Talk to our energy experts and find out how your property can benefit from the Power Program or • reasonable credit requirements; and get more information about the Alberta electricity market. Visit us at the • dedicated customer service team. ENMAX Energy booth #19 or: • Visit our website at www.ahla.ca Is Now A Good Time To Lock In Your Electricity Rate? • Email the AHLA at [email protected] or call 1-888-436-6112 No one has a crystal ball that can tell you if current rates for long-term • Email ENMAX Energy at [email protected] or call 1-866-331-2199 electricity contracts will turn out to be a good price. However, a key benefit of any long-term electricity contract is price certainty. This You can choose any retailer listed at www.ucahelps.alberta.ca or by calling means that the rate you lock in at is guaranteed for the contract length 310-4822 (toll-free). Electricity delivery to your home or business isn’t and, during that time, you are not exposed to the volatility of Alberta’s affected by your choice of retailer. electricity spot market prices. If you are considering a long-term electricity contract, ask yourself: • How well is your business able to cope with fluctuating electricity ADVERTISERS Spring 2013 costs?
• How long should you lock into an electricity contract at current long- AHLA (Employer of Choice) 19 MAC Sales & Marketing 22 term prices? Alberta Hotel Safety Association 7 McCallum Printing Group 36 Alberta Laundry Systems IBC Restwell Sleep Products 5 Bell Canada 9 RHB Enterprises 33 Procuring the Power Best Buy IFC RONA Inc. 27 Beyond the Basics Fitness Serivces 29 Sealy Canada 26 Electricity in Alberta is a deregulated and competitive market. This Chemistry Consulting 31 Shaw Cablesystems 11 means electricity prices are determined by market forces such as supply EMCO Corp. 34 SOCAN 25 and demand and that businesses can choose their electricity provider. Globalive Communications 16 Tengo Internet 8 Gordon R. Williams Corp. 15 Trafco Canada 27 In this market, members have two options for purchasing power: 1) Image Distributors 35 Tricom Building Maintenance 12 Choose a “floating price”, which is determined through the Alberta Jani-King of Southern Alberta 8 Van Houtte 32 power pool and fluctuates with market conditions; or 2) Sign a long- John Deere Canada BC W.E. Greer 29 term contract, which will provide a guaranteed price for the length of Kaba Ilco 37 Western Financial Group Kinasewich Benefits Consulting Ltd. 23 Insurance Solutions 10 the contract. LG Electronics 13 Whiteshell Chairs 26
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