Part two of our feature on accommodating ambition in the tourism franchise market. Here two players in the arena talk about the skills required to be a success.

Choice

There are four brands from three-star motel style accommodation up to four and a half-star traditional hotel style properties. The group is well-established in the corporate market and in the last two years has focused more attention on the still-lucrative leisure market, says Trent Fraser, CEO Choice Australasia.

To tap into this as a franchisee doesn’t require any qualifications, though this is a network that values business or hospitality experience.

The daily demands for a franchisee depend on the size of the property and its staffing levels.

“Because of our market spread we have CBD hotels with over 200 rooms and significant staffing numbers. On the other hand we have regional motel style properties where the franchisee is the receptionist, the breakfast cook, the housekeeper and the accountant. As you can imagine, this makes for a very demanding work schedule.

“In terms of how the franchisee interacts with Choice Hotels on a daily basis, there is a requirement to check rates and inventory daily, enter Choice Hotels delivered reservations into their property management system and to check emails,” says Fraser [pictured below].

Training includes online learning via webinars, on-site training, a four-day program which is brand and industry focused, and help desk follow-up to ensure each new franchisee is comfortable with, and making the full use of, systems and procedures.

Field support managers are the key link between the franchisee and Choice Hotels as franchisor, and their role includes business performance analysis.

“We not only analyse business delivered to the property via Choice Hotels channels but all channels and how we go about making improvements to the business in order to increase that top line.”

Room sales are boosted through a national sales team and Fraser points out “We are the only remaining local hotel reservations call centre, operating seven days a week, including public holidays serviced by a team that is trained to convert more inquiries into higher yielding bookings.”

Access to customers comes through multiple channels: preferred rate access with key consortia groups via the Global Distribution System (GDS), direct links to key online travel agents and exposure to key inbound and wholesale agents as well as distribution via Choice’s own branded websites, says Fraser.
There is support from marketing in print, online and on television. “This is backed up by access to more than 15 million loyal customers globally, via our loyalty program, Choice Privileges.”

BIG4

This is a marketing franchise group, with a different structure from the standard format where there is a controlled business model; it is designed to inject the power of the brand into existing businesses.

Over the last 33 years the BIG4 group has incorporated caravan parks, campsites and other accommodation venues.

There’s a vigorous process for potential franchisees to undergo. “The business needs to be of the quality and standard that fits our brand promise,” says CEO Ray Schleib. This promise underpins the business: operators and the park need to show excellence in customer service, park presentation and facilities, cleanliness and safety, and excellence in delivering a unique holiday experience.

“The skill set has to match the promise. We want someone who knows how to run a park, run a profitable business and not embarrass the brand. We’re looking for drive and ambition and to see how we can add value.

“We talk to the park owner, we look at the location. We don’t have territories but we don’t want to crowd out our existing members so we are looking for strategic locations.”

Other BIG4 members in the area are approached for their feedback on the proposed new franchisee – does the park and the operator fit with the business model. Says Schleib, “The business started as a cooperative members group in 1979, the original big four, and there’s still a bit of a feel for that.”

While the brand has high consumer recall and the family-focused parks with a string of facilities are most visible, there is a range of accommodation available in the group, he says. “Probably 40 out of 180 are big parks, so 140 are mum and dad operations.”

The future is about regional expansion: with the strength of the brand built on its dominant eastern seaboard sites, Schleib wants to grow the BIG4 name west of the Great Divide.

“A national footprint is a key strategy. How do you differentiate yourself? It’s quality, how it’s delivered, relevant to the location and its facility.”

The brand is able to offer buying power, and support local area marketing – “we provide full resources”.
Technology has also been a strong driver, with high online traffic and a mobile phone web booking system introduced in November 2011.

Main image: Big4