Best Western Bids to Build Market Share
Market share, the holy grail of hotel marketers in a down economy, is a top priority for Best Western, and the chain is backing its efforts with lots of money and a marketing strategy that focuses on loyalty, partnerships, promotions, social media and advertising. Swift responses to changing market conditions are also a must.
“Every marketplace is now more Darwinian in nature, so we need to constantly refine our thinking and strategy to respond to these new market conditions,” said Dorothy Dowling, Best Western’s senior vice president of marketing and sales, at the brand’s annual convention last week in Phoenix. “This means annual marketing plans have gone the way of the horse and buggy. We need to evaluate the marketplace quarterly and evolve our thinking to be proactive and responsive.”
And while nimbleness is a marketing virtue for the brand, Best Western’s top marketing priority is its loyalty program, Best Western Rewards. The program, which has close to 10 million members, contributes 21 percent of revenue to member properties, but Dowling is not satisfied.
“The number-one priority for this program is growth,” she said, “and my audacious goal is to get us to 35 percent revenue contribution to member properties in three years.”
She unveiled a multi-point plan to enhance the program. Core of the initiative is to continue to offer incentives to front desk clerks to enroll new members, with a goal of one to three new sign-ups each day at each property. The chain is also developing a menu of guest recognition offerings properties can use to pamper their best guests. In addition, Dowling announced new Rewards partnerships with Air Miles, the Canadian airline loyalty program, and with Barclays and MBNA for co-branded credit cards.
Like every hotel company, Best Western has broadened its marketing mix to encompass a variety of online and digital strategies. Yet, as Dowling said, “While the greatest areas of development are in our online/digital applications, as well as social media applications, paid advertising will continue to be at the core of our marketing mix. Our media buy will include both top-rated and targeted cable networks.”
The chain’s new media initiatives include the new standards—Facebook, Twitter, blogs, GPS advertising and iPhone applications—but it's also taking steps to help member properties test the social media waters. It recently launched a Social Media Toolkit members can access online to help them guide their own Facebook and Twitter activities and to produce a YouTube video.
Dowling closed her speech to the membership on a harsher tone as she discussed the brand’s negotiations with Expedia over a new contract to book rooms on the online travel agency site. While Choice Hotels recently said it would no longer work with Expedia because of its onerous proposals, Best Western is still talking.
“I have serious heartburn over Expedia’s business terms,” she said, “because I don’t think this is a good business opportunity for us.”
Specifically, Best Western is balking at Expedia’s insistence on last-room availability, 95-percent participation of member properties and a three-year contract term with no escape clause. She told members she will continue to negotiate with Expedia, but the prospects aren’t bright.
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© 2012 Penton Media Inc.
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