WORLDHOTELS scores on branding

The consolidation that’s taking place among the majors within the hotel industry may actually work out favourably for hotel groups like WORLDHOTELS, which groups independent hotels and regional hotel brands.



“There’s a feeling among the independent hotels that they are pawns in the game,” said chief executive officer Michael Ball.



But he said distribution is a level playing field and investors looking to flag their properties these are not necessarily looking for the chain brands. Proof of this, he said, was the exceptional performance for the group last year.



“Last year was one of the most important years in our 35 year history. We achieved some incredible results for our members in respect of room night production and generated room revenue,” said Ball.



Global room revenue for their hotels increased by 16 percent to US$194 million. Global room night production went up by 14 percent to 1.1 million room nights.



“Rates also came back at these hotels, averaging a two percent jump, reaching US$175,” he said.



WORLDHOTELS’ portfolio as of end 2005 was at 525 of which 81 are in the Asia- Pacific.



Ball said the growth comes as a result of the implementation of several initiatives, including the launch of its new brand identity, which positioned WORLDHOTELS as a global hotel group.



With the rebranding, it launched its own GDS Chain Code, WW, in July for independent member properties as part of the WORLDHOTELS master chain code EW – Exclusive WORLDHOTELS.



Ball said the company also enhanced its e-commerce activities and web presence.



It saw a fifth of its bookings coming through the Internet. Because of that, it now has a global e-commerce team that looks at partnership with key players and developing dedicated services and products.



Last year also saw the launch of a training initiative - WORLDHOTELS.training – that taught hoteliers about yield management and revenue management,sales, marketing and distribution. It saw some 350 training courses offered in the last 12 months.



“We need to offer our member hotels much more than just reservations services in order to help them grow their business.



“It’s far better for us to teach hotels to use these tools,” said Ball. With “enough hotels to satisfy us”, Ball said the battleground has now shifted to brand awareness in the consumer’s mind.



“Everyone’s talking about individuality and that’s part of our rebranding –“Bringing Unique Hotels and People Together.”



“If you want to position yourself as different, then people should be staying at individual type of hotels,” he rationalised.



“Ultimately we are increasing market share of the hotels,” he said but added that branding is not that easy.



“It would be easier if we had graphic neon sign saying that but that’s not what we want.”



He said a campaign would be launched in Asia in May. He said in Asia, they are in a fairly clear space – “nobody really does what we do”.



“Our key market is four to five-star hotels and though there are lots of regional companies, they don’t have the global reach.” Ball said hotels are seeing good demand and they have been aggressive in Asia.



“There’s easily scope for 120 hotels in Asia-Pacific, at about 10-15 a year,” he said.