January/February 2021

LONG-TERM LOOK
There are other shifts expected to develop within hotel
franchising, in the mid- to long-term, as travel recovers and
we move through the post-pandemic world.
Marvin notes the pandemic crisis may have a lasting impact
on the structure of major franchise companies. “Historically,
many brand companies have pushed to maintain a significant
mix of managed assets under their brand portfolios. This
strategic decision is to help protect the brands (particularly
luxury brands) by controlling operations, as well as to provide
revenue to support large management infrastructures,” he
explains. “During COVID-19, brand companies have downsized
their organizations in an effort to reduce expenses. As franchising
requires less support and infrastructure than managing properties,
we’re seeing brands more willing to franchise than in the past.
It’s likely brand companies will use this time to permanently
re-structure their organizations to become more profitable
and franchising will be more prevalent.”
Also among the lasting shifts will be changes to brand
standards. “One of the things we’re looking at pretty aggressively
— and I suspect some of our competitors are, too — is
opportunities to eliminate costs from the business,” says Leon.
As he explains, short-term service changes caused by
COVID-19 restrictions have caused some to re-think offerings.
As an example, he says, “My expectation would be breakfast
isn’t going to go back to exactly the way it was before.
Complimentary breakfast will come back and still be part of
the value proposition for guests, but [will] probably look a
little bit different.”
What will this look like? Leon suggest a greater focus on
grab-and-go offerings could be in store.
Other changes could include more rooms featuring kitchenettes,
eliminating in-room coffee, greater use of technology
and streamlined operations.
“The pandemic has accelerated the pace of change
on some of these fronts,” says Prince, who points to how
frequently rooms are cleaned during a stay as a key area
where shifts are taking place.
In fact, a U.S. customer survey conducted in May by Fuel,
a South Carolina-based software and marketing company,
revealed travellers have varying opinions when it comes to
the level of housekeeping service desired during their future
hotel stays. ‘Only when requested’ emerged as the most
popular response, being the preferred service level for 29 per
cent of respondents. However, this increased to 35 per cent
for the millennial cohort. Daily full-service housekeeping is
still preferred by 22 per cent of respondents, while another 22
per cent would like daily towel changes.◆
PHOTO BY STUART BISH (CHOICE HOTELS CANADA'S HOTEL PENTICTON)
INDUSTRY
INPUT
otels Canada's Hotel
n (above) and Fort
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WYNDHAM HOTELS & RESORTS:
“Though it has been a tumultuous time for all of us in our industry, our
teams continue to innovate with an eye towards the future, [and] with
an eye towards maximizing the value we provide to our franchisees. We
recently deployed three state-of-the-art initiatives aimed at increasing
bookings at our hotels and increasing overall franchisee profitability,”
Geoffrey A. Ballotti, president and CEO, Wyndham Hotels & Resorts said
during the company’s 2020 Q3 earnings call, highlighting its broadened
digital investment strategy, Wyndham Direct and the company’s updated
mobile app, which launched in September.
INTERCONTINENTAL HOTEL GROUP (IHG):
“We’re in partnership with our owners, so it’s hugely important to us that
our owners succeed. Many of them we have been in partnership with
for decades, so we’ll do everything we can to bring business into the
hotels — that is the most important thing that we can do right now,” Paul
Edgecliffe-Johnson, CFO, IHG PLC, said during the company’s Q3 2020
results call. “We can help them think about their manning models and
how they reduce costs. We can help them with any information they
might need for re-financing, et cetera, but the greatest benefit we can do
is deploy our systems and our outperformance to drive the greatest possible
level of revenue to their hotels.”
hoteliermagazine.com JANUARY/FEBRUARY 2021 | 9