Fairmont Pacific Rim Winter 2010 - BC Hotel Association
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BC Hotel Association Winter 2010 PM40026059 Fairmont Pacific Rim PM40026059 Sparking Innovation • Driving Demand Energy Efficiencies • Sustainable Culinary Trends
200-948 Howe Street, Vancouver, BC V6Z 1N9 T 604-681-7164 1-800-663-3153 F 604-681-7649 1-866-220-2032 www.bchotelassociation.com BCHA Board of Directors Vancouver, Coast & Mountains Region Ross Dyck, Sylvia Hotel, Vancouver 604-681-9321 Linda Griffiths, Holiday Inn Express Metrotown, Burnaby 604-438-1881 Taj Kassam, Sandman Hotels, Vancouver 604-730-6600 Craig Norris-Jones, Coast Hotels, Vancouver 604-688-7711 Ken Svejkovsky, Rosellen Suites @ Stanley Park, Vancouver 604-689-4807 John Sandor, Sutton Place Hotel, Vancouver 604-682-5511 Mark Herron, Four Seasons Resort Whistler, Whistler 604-935-3400 David Wetsch, Ramada Limited Downtown, Vancouver 604-488-1088 Vancouver Island, Victoria, and Gulf Islands Region Rick Browning, Best Western The Westerly Hotel, Courtenay 604-932-4155 Jonathan Cross, The Hospitality Inn, Port Alberni 250-723-8111 Reid James, Hotel Grand Pacific, Victoria 250-386-0450 Ian Powell, Laurel Point Inn, Victoria 250-386-8721 Kurt Pyrch, Best Western Cowichan Valley, Duncan 250-748-2722 Kevin Walker, Oak Bay Beach Hotel & Marine Resort, Victoria 250-598-4556 David Rooper, Harbour Towers Hotel & Suites, Victoria 250-385-2405 Earl Wilde, Victoria Regent Waterfront Hotel & Suites, Victoria 250-386-2211 Stephen Peters, Pacific Sands Beach Resort, Tofino 250-725-3322 Thompson Okanagan Region Up Front Fairmont Pacific Rim, page 16 John Douglas, Nancy Greene’s Cahilty Lodge, Sun Peaks 250-578-7454 Don Brogan, Walnut Beach Resort, Osoyoos 250-495-5400 Ingrid Jarrett, Watermark Beach Resort, Osoyoos 250-495-5500 Gavin Parry, Coast Capri Hotel - Kelowna 250-860-6060 Tim Rodgers, Kamloops Towne Lodge 250-828-6660 Kootenay Rockies Region David Gibbs, Prestige Hotel & Conference Centre Vernon, Vernon 250-558-5991 Allan Brander, St. Eugene Resort, Cranbrook 250-420-2000 Patricia Kilback, Radium Hot Springs Lodge, Radium Hot Springs 250-347-9341 Don Lutzak, Elkford Motor Inn, Elkford 250-865-2211 Cariboo Chilcotin Region Pat Corbett, The Hills Health and Guest Ranch, 100 Mile House 250-791-5225 Winter 2010 Northern BC Region Sam Mangalji, Inn on the Creek, Dawson Creek 250-782-8136 Features Columns Al McCreary, Hudson Bay Lodge, Smithers 250-847-4325 Steve Smith, Crest Hotel, Prince Rupert 250-624-6771 Doug Andrews, Coast Inn of the North, Prince George 250-563-0121 Executive Committee 6 Sparking Innovation 4 President’s Message President, Kurt Pyrch, Best Western Cowichan Valley, Duncan 10 Driving Demand 5 CEO’s Report Past President, Earl Wilde, Victoria Regent Waterfront Hotel & Suites, Victoria Treasurer, Linda Griffiths, Holiday Inn Express Metrotown, Burnaby 14 Medical Tourism 9 BC Hospitality Foundation Vice President, Kevin Walker, Oak Bay Beach Hotel & Marine Resort, Victoria Vice President, Al McCreary, Hudson Bay Lodge, Smithers 16 Featured Hotel - 22 Human Resources Vice President, Gavin Parry, Coast Capri Hotel, Kelowna Vice President, Tim Rodgers, Kamloops Town Lodge, Kamloops Fairmont Pacific Rim 30 Names in the News Vice President, Jonathan Cross, The Hospitality Inn, Port Alberni 18 Energy Efficiencies Vice President, David Wetsch, Ramada Limited Downtown, Vancouver Vice President, Ingrid Jarrett, Watermark Beach Resort, Osoyoos 24 Sustainable Hotel Kitchen Trends Vice President, Ian Powell, Inn at Laurel Point, Victoria 28 Tourism Indicators BCHA Staff 29 Build a Sales Team your Customers Love to Buy From James Chase, Chief Executive Officer, Vancouver 604-443-4750 Cailey Murphy, Communications Coordinator, Vancouver 604-443-4751 Website: www.bchotelassociation.com InnFocus is published quarterly by EMC Publications - a division of EMC Executive Marketing Consultants Inc. 19073 63 Avenue, Surrey, BC, V3S 8G7 t 604-574-4577 1-800-667-0955 f 604-574-2196 PUBLICATIONS MAIL AGREEMENT NO. 40026059 info@emcmarketing.com www.emcmarketing.com RETURN UNDELIVERABLE CANADIAN ADDRESSES TO Publisher: Joyce Hayne CIRCULATION DEPT EMC PUBLICATIONS Design & Layout: Krysta Furioso 19073 63 AVENUE Copy Editor: Debbie Minke SURREY BC V3S 8G7 email: info@emcmarketing.com
President’s Message by Kurt Pyrch Working with our Federal Partners Fall has been very busy for the BC Hotel required in a world-competitive market. Over the last few years, parts Association and we continue to focus on a of our industry were severely constrained by labour shortages, affecting number of issues on behalf of hoteliers in our ability to maintain our service levels as well as impeding our capacity the province. to grow. One of the unexpected joys of serving as the BCHA’s President has been the With the dramatic slowdown in the economy, some of these problems exposure to industry issues at a national level and, with it, the realization have declined. However, the matter will resurface as economic activity that many of the issues we think of as ours here in BC - transportation costs rebounds. The time to update our labour facilitation services is now, so and labour to name but two - are actually issues that affect our industry that Canada and the hotel sector will not suffer another frustrating period from coast to coast. The only difference is the magnitude of the issues. of unnecessary worker shortages as the economy grows again. Over the summer we worked with the Hotel Association of Canada (HAC) In our meetings with MPs across BC, over the last few months, we have to engage Members of Parliament from across Canada in a dialogue about called on the federal government to make labour availability a leading the issues important to the hotel sector and the broader tourism industry. economic priority by enhancing their commitment to the Temporary Given the state of our economy and our industry, which has undergone Foreign Worker Program. two consecutive difficult years, it is more important now than ever that I would like to thank the dozens of hoteliers from across all regions of BC we ensure that Canada’s lawmakers understand the issues impacting our who made time this fall to meet with their local MPs to bring the issues businesses as we move forward. that impact our industry to their attention. Your time and efforts are very We set out to meet with federal representatives from across the province, much appreciated and will be a benefit to us all. in every single constituency, with the goal of educating them on the value The value of our industry on a national scale is significant and the health of our industry and how federal policies in transportation, taxation, and of our industry directly impacts the overall economy of our country and human resources directly impact our businesses each and every day. This the jobs of thousands of Canadians. The lodging sector produces more grassroots initiative was a critical first step for getting the issues onto than $2.8 billion in tax revenue to the federal government annually, and the table and in front of the individuals that can help shape the policy we employ 320,000 people nationally. In BC, our contribution is no less solutions, in order to turn what is currently working as disadvantages significant. We are a considerable component of BC’s $13.8 billion tourism into policies that stimulate a more competitive national tourism industry. trade, and represent in excess of 78,000 rooms and 58,000 employees. The main issues we brought to the forefront included a lack of air travel The Canadian economy arguably came through the economic crisis better competitiveness, and the importance of labour availability. than many others, but that doesn’t mean our sector was not hit hard. The hotel industry lost more than $4 billion in 2009 and, more than most Air Travel Competitiveness industries, we are suffering from the hardships of our trading partners. The continued malaise of the US economy is crippling what has historically The high cost of air transportation to Canada is one of our critical concerns. been our most reliable source of visitors. Air travel in Canada has become so overpriced that almost 20% of We will continue to work with our government representatives to develop Canadian travellers cross the border to initiate their travel in the US. the policy solutions required to build Canada, and BC, into a globally Travel surveys from key markets make it clear that we are priced far above competitive tourist destination. our competitors. Many government policies contribute to this problem: Firstly, Canada has the highest aviation security tax in the world. Between 2002 and 2008, the government has collected $2.3 billion in Air Travel Next Issue Security Charges from travellers. However, as HAC has pointed out, policing and other forms of national security are funded by governments as a public good, which is why we are advocating that Canada’s aviation security tax should be eliminated. Another contributing factor is that the federal government imposes a high airport rent charge on our major airports, $300 million in 2009 alone. • Battling Price Wars These additional costs on travel to and within Canada are unnecessary • Playing the Social Media Game obstacles to a competitive national tourism industry, and we are strongly encouraging the federal government to revisit these policies. • State of the Industry • Attracting Chinese Travellers Labour Availability The second issue we raised was labour availability. A key feature of Call 1-800-667-0955 to book Canada’s hospitality sector is service. Our most valuable assets are your ad by February 4. human resources, which assure travellers will receive the levels of service 4 InnFocus
CEO’s Report by James Chase Each year I TotalGUARD provides comprehensive life, add employees to your profile, offer special look forward to health, and dental plans, and currently industry rates to your fellow BCHA members, connecting with services over 1,100 independent Canadian and post to our online classifieds system. our members at businesses. This benefits BCHA members Visit our new site frequently to stay in the the BC Hospitality Industry Conference. It was through premium savings and long-term rate know about the issues impacting your business, great to see so many of you at the conference stability. TotalGUARD will provide BCHA with the new Member’s Only News, the online again this year; it provides an excellent members all services related to their health edition of InnTouch eNewsletter, and archived opportunity to get together and compare notes plan, including invoicing/billing, production of issues of InnFocus. Follow our latest Tweets on the past year, make projections for the booklets, day-to-day administration, analytical with up-to-the-minute industry updates from year ahead, and learn about new, innovative support, new business sales, and ongoing our homepage. strategies and trends that are emerging in our service support. industry. Some of the savings and features that are Editorial Committee Update This year’s conference was another success included are: Earlier this year we launched the BCHA with returning social media expert Todd Premium Savings: BCHA members Editorial Committee with the mandate of Lucier, hotel consultant Bonnie Buckhiester with 10 or more personnel will receive an examining the content of the InnFocus and Dragon’s Den star and Chairman & Owner immediate 10% savings off existing premiums magazine, and getting input from hotel of Boston Pizza International, Jim Treliving for equivalent coverage. Those with less than operators on what they would like to see to delivering outstanding presentations to 10 employees will receive an immediate 5% keep the magazine relevant and engaging attendees. These are just a few of the many savings. while providing value-added information for highlights that I hope you had the opportunity Rate Stability: Stability is generated by our readers. to enjoy and benefit from. spreading claims over the entire pool, which The committee met a number of times over the Thank you again for your participation in currently includes 1,140 businesses across past 12 months, and through their advisement another great conference. We will continue Canada. and suggestions we have continued to build to work hard to deliver to you the foremost Program Flexibility: There are numerous on the successful track record of InnFocus hospitality conference in the Pacific Northwest. coverage options to choose from, and Group magazine. Be sure to mark your calendars for next year’s Insurance Solutions will work with each Based on feedback from the committee, the conference and exposition, scheduled for property to ensure that BCHA members have editorial calendar for 2011 will include new November 6-8. I look forward to seeing you the best coverage for their individual needs. topics such as “Playing the Social Media all again in 2011! Online Billing and Invoicing: Service Game’”, “Best Practices in Technology”, and providers, including massage therapists, “Measuring Marketing Effectiveness”, and Board of Directors I have no doubt that InnFocus magazine chiropractors, and physiotherapists, can I am pleased to note that there are four new invoice the claim payment service provider will maintain its reputation as a top rate Directors on the BCHA Board. On November directly, avoiding out of pocket expenses and industry publication. Should you have any 21st at our Annual General Meeting the cutting out the middleman. suggestions or feedback for the editorial membership welcomed Mark Herron (Four committee, I encourage you to send them to Seasons Whistler), Stephen Peters (Pacific Pay Direct Drug/Dental Card: All insured communications@bchotelassociation.com. Sands Beach Resort), David Gibbs (Prestige persons will receive an automatic payment Hotel & Conference Centre Vernon) and Doug card, which prevents the insured from paying Andrews (Coast Inn of the North) to the Board up front for any amount above his deductible. of Directors. I strongly encourage you to visit our website to As always, I encourage you all to reach out view the benefits of this new program and the to your local Director should you have any positive impact it can have on your ability to questions, comments or concerns. retain employees and create a more efficient and productive workforce. Learn more at I would like to thank non-returning Directors, bchotelassociation.com. Bruce van Mook, Sebastian Hofsetter and Francis Parkinson for their years of dedication BCHA Website and service to the BCHA. As many of you are aware, we spent some New Group Health Insurance Program time over the past several months updating our website to create a more interactive and I am pleased to announce that the BCHA has functional portal for our members to engage further partnered up with Western Financial and use to their benefit. Group, administrators of our property insurance program, to bring our membership I encourage you to visit the Members Only a new proprietary employee benefits program, section to make sure your account information TotalGUARD. is up-to-date. There you will find further options to update your account information, InnFocus 5
Black Rock Oceanfront Resort, Ucluelet Sparking Innovation Staying Ahead of the Crowd With Fresh Ideas by Alex Van Tol You have to set yourself apart from the competition in today’s travel landscape. It’s a fact of the information age: Customers have so many choices now - so many properties vying for their dollars - that it’s worthwhile considering how you can grab that short attention span and get them through the door. 6 InnFocus
“We have a goal,” shares Wickaninnish Inn General Manager Charles McDiarmid. “We want to be better today than we were yesterday. And we want to be better tomorrow than we are today.” Meeting that kind of goal would be impossible without constant innovation. Staff are often the best drivers of new ideas, as their experience in their respective departments means they see what works - and what doesn’t. Highlight the Differences Innovation is one of the hallmarks of leadership. By making things fresh and interesting - even if it’s just a little thing you do differently than other properties - you’ll set yourself apart. Maybe it’s something small, like the way your door card is designed. Or maybe it’s something you’ve invested huge amounts of money in, like footprint-free geothermal heating. Whatever it is that you do differently, it’s good. Do more of it. And tell your guests about it. At the Sidney Pier Hotel & Spa, special residents’ rates (10% off the best available rate) put heads on beds throughout the year. “We also offered Run-of-the-House rates,” reports General Manager Natalie King. “Guests would book for one rate, and based on availability they could have the signature suite if it was available.” Offered in January of 2010, the special drove local business, and guests loved it. “Rather than change our rate, we wanted to give people more value for what they’re spending,” offers King. Encourage Input It’s not just in rates that you’ll see innovation at the Sidney Pier. “It’s actually one of our metrics,” explains King. “[Innovation] is one of four things we use to measure how we’re doing.” The Pier is a highly entrepreneurial environment, with an owner who asks his staff to only be right 70% of the time. “He says if you’re right more often than that, you’re not taking enough risks,” notes King. It’s all about trying new things and learning as you go. “The café, the spa…all of them run as independent businesses,” she says. “All of the people working in those areas are encouraged to bring forward ideas - and we’ve implemented so many.” A sampling? The hotel has created its own herb garden for its F&B operations, and offers entertainment on the patio every Thursday and Friday night during the summer months. “It’s been wildly successful,” boasts King. “Some of the smallest things can be some of the coolest,” agrees McDiarmid. “When we found we could get our door cards made out of recycled plastic, that was great. We’re hugely committed to making a smaller footprint on the environment,” he says of his multiple award- winning Tofino property. “We had a meeting yesterday where we talked for an hour about how to make our recycling room a place that everyone is proud of.” Working with First Nations and local experts, the hotel is also redesigning its door hanger cards to be crafted out of local wood. “No one else is doing this, so we have to find our own way,” McDiarmid acknowledges. “We’re experimenting. It’s taking a mundane thing and creating personality about it.” Innovation in Staffing Even in terms of staffing, the Wickaninnish is thinking about how to keep its approach fresh. “We try to mold the position to the person rather than the other way around,” McDiarmid explains. “We often will adjust duties InnFocus 7
“You can’t just look at one part of your operation... You have to Black Rock Oceanfront Resort, Ucluelet look at the whole picture.” for a certain position to suit an individual and initiatives. “One of our team members built and we see a huge benefit,” notes Larkin of their personality.” By looking for strengths, a greenhouse and has grown all our non- the switch to Ocean Wise. “Nothing on our listening to staff requests, and recognizing indigenous plants from seed,” explains General menu is unsustainable. It’s something that we particular interests within individuals, the Manager Adele Larkin. “It’s hard to live life on strongly support.” Wickaninnish is able to create a strong team the coast as a plant! Our team members have that can think for itself in providing the best decided to bring their home gardens in to Make the Right Changes care for its guests. It’s a team that is intensively work, split them in the greenhouse and then There’s room for innovation everywhere. “You trained, housed in home-away-from-home staff plant them around the property. That’s an can’t just look at one part of your operation,” housing, and treated like family - all important entirely employee-driven initiative.” Another concludes Larkin. “You have to look at the in creating fertile ground for innovative ideas. staff-driven innovation? Garbage pickup days. whole picture.” Even so, just choosing a couple Twice a year - just before the busy season and at of small areas in which to make a change can Staff-driven Innovations the tail end of it - Black Rock staff suit up, grab start the ball rolling at your property. a bundle of garbage bags, and head out with Just down the road a ways, in Ucluelet, is the Take care to focus on areas that you could really members of the local community to tidy up the Black Rock Oceanfront Resort, a leader in polish. “You don’t want to innovate just for the world-class Wild Pacific Trail that surrounds sustainable practices. Flagged with four Green sake of innovation,” reveals McDiarmid. “It has the property. “We want to show some strong Keys, an OceanWise distinction, and a ranking to be true improvement. It’s not about how fast stewardship. You want to be responsible for as a top destination according to Expedia users, you can make changes. It’s about going in the right the asset you’re so proudly touting,” comments the recently opened Black Rock owes much direction…and making the right changes.” Larkin. Same thing with the menu in Black of its success to staff-driven environmental Rock’s F&B outlets. “We did a menu change 8 InnFocus
BC Hospitality Foundation by Renee Blackstone Brenda Derkacz, a 28-year-old mother of two young children, is the most As well, 10 worthy young people who want to advance their education in recent recipient of a BC Hospitality Foundation grant. Derkacz, whose an aspect of the hospitality industry will be awarded $2,000 scholarships husband Adam is a kitchen manager with the Old Spaghetti Factory in at the BC Hospitality Industry Conference and Exposition. “The Victoria, was diagnosed last May with acute myeloid leukemia (AML). Foundation will have a booth there, so stop by and see us,” adds Alan This is her second type of cancer, as she battled sarcoma through 2007. Sacks, BCHF business development manager. She was in clinical remission from sarcoma when AML struck. Brenda The foundation is also developing a “Hospitality Day” campaign that was flown by helicopter to Vancouver for immediate care and spent will kick off in 2011. “The campaign will aim at reaching all sectors of seven weeks away from home for treatment. She received a bone marrow the hospitality industry with the objective of ensuring people at every transplant, but needed specialized care in Vancouver for another three level know about the work of the foundation, and have the chance to or four months, away from her family. contribute in their own way to its efforts,” explains Sacks. “Although To help with her recovery, a large part of which is being able to see her we are doing great work, we still have a major challenge on our hands family more often, friends and co-workers raised more than $12,000 to communicate to the thousands of people in the industry that there is through various events. Another $5,000 was added by the BCHF an organization that can help in times of financial crisis brought on by matching funds program, giving the young family the financial resources a medical condition,” he describes. “Not enough people know that we to be able to afford childcare as well as travel expenses to come to run a ‘matching funds’ program that can contribute up to $5,000 for Vancouver while Brenda recovers. fundraisers such as the one held for Brenda Derkacz. Hospitality Day is going to play a big part in communicating the message.” Meanwhile, the BCHF organized a new fundraiser, Dish ‘n’ Dazzle, which was held in late October and raised approximately $30,000. The event In other news, BCHF board members were delighted to hear that the was a high-energy celebration of some of BC’s best food and drink and foundation has had its charity status approved by the federal government, included a cocktail contest featuring some of our best bartenders, food something that will make fundraising a little easier, reports Sacks. and wine bars, silent auction, live music, and a celebration honouring unsung hospitality-industry heroes. Renee Blackstone is a freelance journalist who sits on the BCHF Board of Advisors. InnFocus 9
Driving Demand Going Beyond Traditional Marketing to Draw the Crowds by Alex Van Tol In a challenged economy, everybody’s scrambling for revenue and competing to sell rooms to a finite number of travellers. You want to make sure you’re driving demand in the right direction - straight toward your reservation desk. 10 InnFocus
“While social networking might be a busymaking can of worms, the Internet offers myriad other ways for you to get your name out there - and get heads on beds.” Promotions, loyalty programs, and traditional maintain. “Do only those things that you think describes Allison. Regardless of where or what print and media advertising are classic are adding value,” emphasizes Allison. kind of hotel you are, your reputation is out methods of reeling people in, but in an While social networking might be a there - and it’s going to be talked about online. increasingly digitized world, the migration busymaking can of worms, the Internet “If you want to do well, you’ve got to look after toward electronic media can’t be ignored. offers myriad other ways for you to get your your reputation, have a good product, and give “It’s changing all the time,” says Sherry name out there - and get heads on beds. good service,” says Baumgardner. “Because if Baumgardner, Director of Marketing for “We understand where we’ll get the biggest you don’t, it’s out there so fast.” Coast Hotels and Resorts. “Everyone’s going bang for our buck,” explains Mandy Farmer, to make some mistakes trying different President and CEO of Accent Inns. “We’re things,” she says. “It’s fun. But you have to Centralized Reservation Systems focusing on TripAdvisor, and trying to direct know your customers.” more of our customers to put their responses New technology lets hoteliers track the buying on there and get our rankings up.” Accent trends of their customers, recognize them Inns gets pretty good customer reviews, and when they return, and provide useful tips Social Networking Farmer wants to keep a good thing going. “It’s on how to enhance their stay. Centralized Know your customers, and know your reservations systems (CRSs) are a mainstay a good sales tool,” she notes. “More people capabilities too. Scott Allison, Vice-President for all major chains, helping to make a are using online reviews to determine where of Sales and Marketing for Marriott, says guest’s experience seamless, from the online they want to stay.” the company cautions its hotels to look booking process to phone reservations to the before leaping. “If you choose to open up In an era where guests Twitter their front desk. It’s difficult to track phoned-in networks through blogging or Facebook or dissatisfaction about a hotel room instead bookings; CRSs allow hotels to track the LinkedIn, you’re opening yourself up to a of bothering to notify the concierge, smart money that’s flowing in much more carefully. big commitment. You have to be current, and hoteliers know to pay attention to online “It’s our biggest channel,” says Troy Rutman, you have to be responsive.” Social networking reviews. A bad review “goes through the Director of External Communications for Best sites can quickly become overwhelming to Internet like a hot knife through butter,” InnFocus 11
Western International. “Ten years ago hotel websites were basically just an electronic brochure, and now they’re the most significant booking channel.” Websites Matter Website functionality is important too. “We spend a lot of time on making sure our site is optimized so it’s easy for people to find things,” says Allison. “Pictures are incredibly important for guests on our site.” He adds that Marriott does about $6B in sales annually through its website. “That’s more than Dell computers, which is viewed as a direct- sales powerhouse.” Giving the customer more flexibility in terms of booking their trips has paid off for a number of companies. Hilton and Marriott have both introduced small group booking functionality on their websites, which allows guests to electronically book groups of rooms for small functions, without having to place a call to reservations or the sales department. “It does make it easier for customers to book,” explains Allison, “and it helps grow overall sales.” “The customer is moving away from websites and toward the smartphones” Search engine optimization is essential if you want to compete in the digital marketplace. “You want to be on the first screen when you do a search,” says Vito Curalli, Director of National Sales for Hilton Canada. However, in the next breath, he notes the very nature of those screens is changing. “How small are those screens?” he asks. The meteoric rise of BlackBerries, iPhones and other web-enabled devices means not everybody is sitting in front of a computer screen when they’re punching in their search terms. “The customer is moving away from the websites and toward the smartphones,” says Curalli. “They’re still purchasing electronically, but they’re looking at a different screen.” Hilton’s solution? A new suite of iPhone apps to connect guests with Hilton’s seven brands worldwide. “Our customers don’t want to use a browser,” says Curalli. “They want to touch that app, be on the brand, and have it take them to the site.” 12 InnFocus
Third Party Travel Sites The final piece of the puzzle in driving demand in the digital age is third-party sites and online travel agencies (OTRs) like Expedia, TravelZoo, Priceline, and others. “We work with third- party suppliers because we recognize we don’t want to give our franchisees any lack of competitive advantage,” suggests Gopal Rao, InterContinental Hotels Group’s Regional Vice-President for Sales and Marketing, Canada. Amy Simon, Starwood Hotels and Resorts’ Director of Field Marketing for Canada, explains that Starwood has seen great success when highlighting special limited- time offers through third-party distributors. Some chains don’t sign global agreements, but instead encourage their members to use third-party suppliers as they see fit. “We’re in negotiations with the online travel agencies all the time,” says Rutman, searching for that perfect deal that will satisfy all Best Western members. Most hotels participate in third-party travel sites to some degree. It’s best to do so under the following caveats: (1) stay on top of how your property uses the tools; (2) ensure you can honour the lowest rate your customers may find for your hotel across all the OTRs; and (3) remember that what’s useful to one property may not be useful to yours. Whereas Hilton might make rock-bottom sales at the last minute on Priceline, that kind of opaque site won’t work for Accent Inns’ price point, which doesn’t have as much RevPAR wiggle room. In addition, certain sites work for certain purposes. TravelZoo, for instance, is geared more to the leisure customer. It takes your hotel’s amazing deal and targets a motivated-to-travel audience during those slow weeks where you don’t have any group business. “We’ve done it a couple of times in different locations and it worked very well,” says Baumgardner. The Human Touch If you’re not quite ready to embrace the wonders of technology, don’t worry. Through all the electronic buzz, there’s still room for good old-fashioned, flesh-and-blood reservations and travel agents. Despite their lack of buttons, links, and sexy graphics, humans are still the best sellers around. “One thing you may not get as a customer online… is the dialogue back and forth,” describes Curalli. “People will implicitly trust a discussion.” Like the waiter who upsells a glass of wine to complement your mussels, or the reservations agent who books rooms for the next three cities you travel to, the human touch still sells better than any widget ever could. InnFocus 13
Medical Tourism Canada Chosen as Top Medical Tourism Destination by Amanda Jackson Medical tourism, the phenomenon whereby people who live in one country travel to another to receive medical, surgical, or dental care for either personal or financial reasons, is of growing interest to American travellers as revealed in the results of the Ypartnership/Harrison Group 2010 Portrait Of American Travelers (SM). 14 InnFocus
“Given the rapidly escalating cost of major medical care in the US, interest in exploring the benefits of medical tourism comes as no surprise.” Fielded in February 2010, the study details be up to 70% less than in the US). Two-thirds familiarity with the medical tourism concept, (66%) mention comparable or a better quality the reasons for considering this alternative of care, while 43% cite access to medical to domestic care, and countries in which treatments or procedures that are not covered US citizens would be most likely to seek this by their insurance at home or shorter waiting type of care. periods to access care (41%). Another one Fully one-half (50%) of leisure travellers are out of five (22%) cites access to experimental now familiar with the concept of medical or non-FDA approved treatments and/or tourism, and one out of six (17%) would concerns about privacy (20%). consider having a medical procedure done Among countries measured in the survey outside the US, assuming it is perceived to as possible medical tourism destinations, be of comparable quality. Another one out Canada reigns as the number one choice. The For more information on the Ypartnership/Harrison of five (22%) is “not sure,” suggesting they top ten countries include: Group 2010 Portrait Of American Travelers(SM) would also be open to considering this as an - Canada (42%) please visit the Publications section of www. ypartnership.com. alternative to treatment at home if certain - United Kingdom (32%) conditions were met. - Germany (31%) Ypartnership is America’s leading marketing Given the rapidly escalating cost of major - Sweden (28%) services company serving travel, leisure and medical care in the US, interest in exploring - France (24%) entertainment clients. For more information, visit the benefits of medical tourism comes as no - Mexico (13%) www.ypartnership.com. Harrison Group is a leading surprise. Among adults who would consider - India (11%) market research and strategy consulting firm specializing in sophisticated market strategy, market travelling outside the US for major medical - Singapore (10%) analytics, survey and forecasting services. For more care, 84% cite the lower cost as the primary - Costa Rica (9%) information, visit www.harrisongroupinc.com. reason why (the cost of performing major - Brazil (7%) surgical procedures can, in some instances, InnFocus 15
Fairmont Pacific Rim Contemporary Luxury in One of the World’s Best Cities by Alex Van Tol You can’t imagine a better location for a hotel. Built on the hotel in early 2010 after relocating from his previous reclaimed railyards on the shoulder of Vancouver’s scenic job renovating, repositioning, and opening a property Coal Harbour, the new Fairmont Pacific Rim backs right for Fairmont in Newport Beach, California. “We wanted onto the financial district and is in the heart of downtown each property to have its own unique selling points.” The Vancouver’s waterfront district. “We’re connected to the Fairmont Pacific Rim went for a contemporary vibe, but convention centre by an underground walkway,” notes with a luxury feel. “If it gets too contemporary, it can General Manager Randy Zupanski. “We’re a block from the be cold and too minimalistic,” he explains. “You want cruise ship terminal, a block from the sea plane terminal, to have that edginess, but also that luxury.” The feeling and a block from the Canada Line Sky Train. The beauty of was accomplished by combining luxurious linens, quality this property is it can act as either a resort hotel or a business furnishings, and superior beds with state-of-the-art hotel on any given day.” With 22 storeys of hotel and another technology. There are mirror TVs in every bathroom, touch 26 storeys of residential housing built on top, the Fairmont lighting, touch drapes, and 42-inch surround sound TVs Pacific Rim is a large and complex mixed-use project. with connecting media panels, so guests can plug in their No stranger to complex projects (his career has seen iPods or laptops. The Fairmont Pacific Rim is also one of him opening hotels in Renfrew, Calgary, Vancouver, and the first hotels in Canada to offer high-definition television Shanghai, to name just a few places), Zupanski recognized in every guestroom. that with two other Fairmont properties already existing Moreover, the hotel invested in a linen tracking system in Vancouver, the Fairmont Pacific Rim had to set itself that embeds a chip in every uniform and linen item in the apart by offering quite a different experience. “That was hotel, enabling each one to be tracked when it’s sent out the mission from the start,” reflects Zupanski, who opened for laundering. “All items are scanned prior to leaving the 16 InnFocus
hotel, and scanned upon return,” describes Zupanski, who arrived one and a half years prior to the hotel’s opening to oversee every aspect of its operations while under construction. “It tells you the life of any piece of linen, how many washes it’s been through, and how long you’ve had it.” The 15,000 sq. ft. Willow Stream Spa provides a resort atmosphere to the property and boasts nine treatment rooms, a nail salon, separate lounges for men, women and couples, steam rooms, experience shower, state of the art fitness centre, and yoga studio. The adjacent year-round outdoor terrace offers a relaxation area with meditation pods, two Jacuzzis (one with television), and gas fireplaces, and provides an additional area for spa guests to lounge or enjoy a light lunch or snacks. As always, Fairmont properties keep their environmental footprints top-of-mind, and the Fairmont Pacific Rim is no exception. An energy- efficient Inncom system controls temperature and Randy Zupanski, General Manager lighting when guests leave the room. And when the city of Vancouver began encouraging its Olympic guests to drink the city’s tap water, the Fairmont Pacific Rim jumped right on board, offering reusable Fairmont-inscribed water bottles. So far, the move has been a hit. “We launched that in the minibars,” explains Zupanski. “Rather than just selling bottles, we offered reusable ones. That drew a lot of attention.” Many guests buy them as souvenirs. “Vancouver probably has some of the best natural water in the world,” boasts Zupanski, adding that the hotel is also considering taking it a step further with its turndown service, offering a carafe of water with glasses. A full 70% of the rooms at the Fairmont Pacific Rim embrace the water view with floor-to-ceiling windows. “We also have 35 suites ranging up to 3,000 square feet, two of which are truly differentiators,” reports Zupanski. A night in the bi-level Chairman’s Suite sells for $6,000 (but split between 60 people, you can shuttle in on the private elevator and then serve dinner on the outdoor terrace, so it’s actually a steal). In the hotel’s pool area you’ll find five cabanas with fire pits and televisions. The pool-facing rooms have outdoor balconies with gas fireplaces. “It has a very LA feel to it,” notes Zupanski, who spent three years in California on the heels of a seven-year stint with the Sheraton Eau Claire in Calgary (also operated by Fairmont). Even with that chic LA vibe in the pool area, Zupanski and his team recognized the importance of creating an authentically local feel throughout the property. It’s a Fairmont thing. “Every hotel is not the same in every city,” he observes. “You differentiate yourself through the food you serve, the amenities, and the artwork.” Every guestroom in the Fairmont Pacific Rim offers beautiful photographs of BC above the main bed. “We don’t use the same uniform in any one hotel either,” explains the career hotelier who started out 33 years ago washing dishes. “Ours had to feel West Coast, with a Pacific Rim focus.” There’s a little taste of Asia in the uniform, but the fedoras on the doormen give off an unmistakably West Coast vibe. “If the uniforms are designed right and they fit the hotel where it is, it also should be something that your team wants to wear.” Not sticking staff into a uniform that feels like a uniform helps to build pride, he reveals. “Everywhere you look, there are unique points of difference,” notes Zupanski, right down to the 140-foot long light sculpture designed by local artist Joseph Woo and the $240,000 Fazioli piano in the lobby. But what really sets the Fairmont Pacific Rim apart are the colleagues, boasts Zupanski. “We had 6,000 applications for 300 initial jobs,” recalls Zupanski, who says a great property is nothing without highly engaged staff to run the show. “We had the ability to attract the very best to open the hotel.” Opening five days before the 2010 Games, Zupanski and his team were certain business would slow in the following months. “Once we hit April, though, we were way ahead of projections,” he recounts. Now the property runs a team of up to 450 colleagues, and is anticipating a strong finish to the year. “It’s been a home run in every aspect.” InnFocus 17
Energy Efficiencies by Chris McBeath “Of one thing we can be sure: energy will be more challenging and more important in the future. Will you, and your business, be ready?” ~Peter Schwartz, Chairman, Global Business Network. 18 InnFocus
Energy management is taking the green ethos to new levels. Fueled by an increasing energy demand, diminishing resources, and global climate change, technology is reshaping the economies of energy use. Simple Initiatives for Immediate Savings “Based on a year-round operation and 70% occupancy, an average 150-room hotel contributes three tonnes of greenhouse gases into the atmosphere,” reports Christina deVries, Director of Marketing of an Ontario-based company whose specialty is sourcing green power and Faucet aerators carbon offset opportunities. “That’s the equivalent of driving 200 cars, 13% reduction in water use per sink heating and lighting 100 homes, or taking 5,000 airplane flights.” Add Ionic laundry systems to this the fact that most buildings waste almost 30% of their energy, 50% reduction in laundry operational costs and you have a good case for considering an energy-audit. Low flush toilets Up to 40% reduction in overall water use Electrifying Results CSA Approved LED Emergency EXIT signs 90% reduction per sign in electricity Accounting for approximately $1.5 billion in energy expenditures, Dimmer/motion light controls hospitality ranks as one of the most energy intensive commercial sectors 20% reduction per light in electricity in Canada. However, because energy utilities are also one of the most Compact Fluorescent Light bulbs controllable costs in a hotel operation, any changes to upgrade light fixtures, heat modalities, and electrical appliances can deliver significant 75% reduction per bulb in electricity results. LED light bulbs 80% reduction per bulb in electricity At The Fairmont Chateau Whistler, a lighting retrofit meant $42,000 Energy Star appliances & ice machines in annual savings. Working with BC Hydro’s Power Smart Program, 20% savings in electrical consumption in refrigerators, 41% dishwashers the combined savings for Fairmont’s five established properties Use of ceiling fans & Energy Star ceiling fans (excluding the recently opened Fairmont Pacific Rim) was a whopping $700,000. “At the time, our energy savings were equal to the revenue 40% reduction in A/C electricity of more than 3,500 occupied hotel rooms, on average,” notes Mark Energy Star TVs Andrew, Regional Vice President and General Manager, The Fairmont 30% reduction per unit in electricity Hotel Vancouver. “Sustainable best practices is one of Fairmont’s core Programmable thermostats values,” he continues. “Case in point, we were among the first hotels in 20% reduction in heating/cooling costs Western Canada to incorporate a centrally-controlled guestroom energy Low flow shower heads management system, which uses occupancy sensors and door switches 70% reduction in water use per shower to determine if a room is occupied and then adjusts lighting and heating Motion sensor taps, toilets levels accordingly.” 50% reduction in water use per sink Kimpton’s Pacific Palisades also took advantage of BC Hydro’s Product Source: Planet Energy, www.planetenergy.ca; tel 289-360-3027 Incentive Program. Not only did the hotel receive over $12,000 in InnFocus 19
financial incentives for its upgrades, but those light. By holding off, there is now a choice of Ideas at Work improvements saved more than 521,000 kilowatt hours of electricity each year - a value shapes, sizes, and colour temperatures.” He also advises keeping an eye on the amount of heat that some LED floodlights generate as of over $26,000 - as well as a reduction of >>>The Conrad Indianapolis hotel is well as the durability of the new, dimmable, nearly $10,000 on maintenance costs. revamping its steam distribution area: the high-efficiency lamps. radiant heat that formally vented out into the street now vents to heat emergency Lighting up Savings, Watt by Watt stairwells in the winter months. Harnessing Natural Heat The challenge is to save energy at an affordable >>>The Conrad Indianapolis also plans to cost. For Chateau Victoria, it’s been a three- With its remote island location, where energy recover hot water condensate that would year, careful program of incremental change, has traditionally involved propane and normally be thrown down the drain to shaving money off its power bills, one step generators, the Pacific Sands Beach Resort at a time. has turned to geoexchange technology. pre-heat its domestic hot water. Initial Geoexchange heating and cooling is highly cost savings are anticipated at $5,000- “We started with our exit signs, changing efficient - requiring up to 75% less energy than $7,000 per year. them over to LED [light-emitting diode] conventional systems. Here, special systems lights,” says Mark Pennington, Maintenance >>>Guests at The Nature Inn at Bald take advantage of the sun’s energy stored in Manager of the 177-suite property. “Last fall, Eagle in Pennsylvania, can use an in-room the ground, where the earth’s temperature we installed new light strips over the wet monitor to track how much energy was remains at about 12ºC throughout the year. bars in all the suites, replacing the big round consumed during their stay at the inn In the winter, pumps are used to extract ‘Fat Albert” incandescent bulbs for CFLs heat from the ground or ground water and >>>Hilton’s LightStay Program monitors [compact fluorescent lamps], and changed transfer it into buildings for space and hot energy used in all utility areas, including the 60 watt ceiling incandescent bulbs with water heating. In the summer, the pumps electricity, water, and garbage. It keeps 13 watt CFLs.” A lighting re-work in the entry reverse the process, removing heat from the canopy reduced wattage from 4,100 watts to a running tab on energy consumption, building and returning it back to the ground, about 1,150. The hotel saved some $700 per and provides recommendations/ thus cooling the building. year in that area alone. requirements in order to maintain Biomass gasification is another innovative LightStay sustainability level. “This fall, the hotel started to upgrade hallway energy system, which creates low-cost heat ballasts and lights,” reports Mr. Pennington, >>>Paris’ Hotel Fouquet’s Barrière through a thermo-chemical process known who goes on to share a few guidelines when has replaced detergents with water as “starved air combustion”. This ultra-clean considering a switch to new lighting. “Keep a electrolysis, and recycles waste as fertilizer, technology transforms locally sourced wood watch on new technologies, and use a Power which it converts into heat and electricity. waste - municipal tree trimmings, mill scraps, Smart Alliance member company to help The hotel also offers guests hybrid pine-beetle damaged lumber - into energy. keep on top of options. For instance, the Terasen Gas is studying the feasibility of a limousine service and electric E-Solix earliest CFLs were too large for some hotel biomass system that would use waste heat and bicycles. fixtures and didn’t produce a warm, inviting 20 InnFocus
residue from a sawmill in the city of Quesnel. This unique renewable energy system would utilize otherwise wasted energy sources. Resourcing the Resources In most cases, a successful energy program will require a property to make basic changes in the way it uses technology, none of which need be drastic or costly. Natural Resources Canada, has a hoard of tips and year-round checklists to help staff embody energy efficiencies into their modus operandi. (Go to www.nrcan-rncan.gc.ca/com.) Combined with reduction programs offered by companies such as BC Hydro, Teresan Gas, Planet Energy, and HAC’s Green Key rating scheme, savings can be significant. Check out www.energystar.gov, too. Although it’s geared to the US market, it’s an informative site that will add fuel to your grist. With Expedia and Travelocity both singling out green hotels, and programs such as Hilton’s Light-Stay Program (see sidebar), energy management is no longer a behind- the-scenes operational issue, it is an in- your-face consumer preference. And that’s Courtesy of Terasen Gas something to get energized about! Power Hungry According to the US Dept of Environment’s Annual Energy Outlook Report (2007), world demand for all energy sources over the next two decades is expected to grow by 57%, largely because of Asia’s economic and manufacturing thirst. During this time US demand, and similarly Canada’s, is forecasted to increase by 31%. In terms of electricity, North American needs are anticipated to grow by at least 40% which, with the demise of fossil fuels (currently coal fuels half of all electrical generation), will necessitate a new power infrastructure equal to nearly 300 power plants. InnFocus 21
Human Resources by go2 Best Practices for Dismissing Employees In the previous issue, we reviewed the importance is minimal traffic in your operation, either at of performance management programs, through the beginning or end of the day. Whenever which employees are given focused directions, possible, conduct the meeting early in the week, clear warnings, and opportunities to improve. so the dismissed employee can access legal and We also reviewed the performance improvement other support services and actively begin her plan (PIP), a crucial tool when an employee’s job search (which should begin immediately). substandard performance becomes an ongoing Being dismissed before the weekend is likely problem. Legal experts agree that performance to be extremely frustrating or depressing for management programs can help avoid lawsuits, terminated individuals. Check for significant and that courts are likely to hold for the dates for the employee, such as a birthday or employer in a dismissal suit if a documented anniversary, and avoid dismissing on these PIP has not been implemented. dates. The loss of a job can be a traumatic experience, Terminations should always be conducted in a but the best employers demonstrate the value of private and neutral setting where there will be thoughtfully planned and skillfully executed job- no interruptions. When planning the location, loss notifications. Of course, if you are operating consider how the employee will react to the news. in a unionized environment, the collective Some employers retain the services of an out- agreement must be followed for discipline and placement consultant to provide impartial and discharge. For non-union workplaces, here confidential support, meeting with the employee are some best practices that will assist in the immediately afterwards or at an agreed-upon termination process: time and place off-site. Have all paperwork ready to be presented to the Create a Detailed Dismissal Plan employee. This includes the termination letter, Plan the termination for a time when there release, and payment details up to the final day 22 InnFocus
of employment. The termination letter should Refrain from pressuring or allowing employees damaging rumours. Make this an opportunity be a standard template that has been reviewed to sign the release immediately. You should to reinforce your organization’s values by by your lawyer to ensure it meets all legal advise them to take it away and seek addressing staff concerns or questions in a way requirements. independent legal advice before signing. Make that is respectful and maintains confidentiality sure a dismissed employee understands that to the person leaving. Accessibility, honesty, Write out notes or a rough script in advance of the termination decision is final. and empathy will go a long way toward the meeting. This will help keep you focused maintaining employee engagement. and avoid turning the meeting into a debate. Concluding the Termination Meeting There is no single right way to terminate It is recommended to have a managerial level Unless there is a compelling reason not to, the employment of an individual or a group colleague sit in as a witness, in the event that offer employees options on how to collect their of employees. It depends on the number of there is a dispute later about what was said. In belongings, communicate with coworkers, and employees affected, the roles of those people, a unionized environment, you will likely have leave the office in a timely fashion. With this and the individuals themselves. Whatever to include a shop steward. small gesture, terminated employees are more practices you follow, be deliberate in your likely to feel that they are departing on their planning, mindful of your organization’s core Conducting an Efficient and own terms, with their dignity intact. Make values, and respectful of the impact of your Compassionate Meeting actions on both departing and remaining arrangements for dismissed employees to get Keep the termination meeting as short as home safely. Arrange for a cab if necessary. employees. Your reputation and the productivity possible. Explain the purpose of the meeting, of your employees depend on it. Make notes of the meeting immediately provide the employee with the dismissal letter, afterwards, consulting your witness if necessary. go2 is BC’s tourism and hospitality human resource and advise that the essential details are provided In the event of possible litigation, it is important association responsible for coordinating the industry’s in the letter. Be prepared to answer questions Workforce Development Action Plan, a key component to have a complete record. about how the company will handle references. of the industry’s growth strategy. For more information Advise the employee not to read the letter now. You should immediately communicate with on using human resources to improve your business’ bottom line, visit www.go2hr.ca. Rather, the employee should review it at home the rest of your staff about their colleague’s and return a signed copy by a certain date. departure in order to avoid the spread of InnFocus 23
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