The CEO of the best western world sees the development of Buttress to travel to the corp

Best of the West Larry Kukulic About:

• The probability and effect of economic failure
• The importance of driving high class prices
• Regional views for business needs

Best Western plans to announce new extended stay brand ads and double its premium Aiden portfolio. Best Western CEO Larry Kukulic, who will assume that role in December 2021, said he is focused on positioning the company for global growth in leisure and business travel. Kukulich spoke with BTN’s Elizabeth West about the company’s performance, strategy and the need to respond to recommendations. Edited quotes follow.

BTN: There is a lot of talk around labor shortages and a possible recession. Are those big-picture trends influencing the Best Western world, and what other trends are driving your strategies in 2023?

Larry Kukulic: Our first strategy is development. We are focused on bringing in hotels that appreciate the value we can add to their hotels as a brand. We now have 19 brands ranging from luxury. [what we] Call Premier Economy. Development is key, but to develop, especially when there is uncertainty about the ‘R word’, you need to be able to show hotels that add value and good revenue. So our focus is on brand contribution and loyalty program revenue. …Development must be the key to our failure. As for our hoteliers and the business we can drive for them, you should factor that potential into your decision regarding marketing dollars. Fortunately, we’re a very strong hobbyist brand and we still see that shit. [demand]. That was a broken desire. [and] It still remains.

BTN: Don’t you see softness in the entertainment business? That’s interesting because I hear a different story than others.

Kukulic: I just saw the results this past week, they seem stronger than ever in residency and [average daily rate]. Both were amazing. Our December exceeded our expectations, our January exceeded our expectations. … We see an increase in leisure and business travel – some primary markets, but many secondary markets and tertiary markets have been very strong. We are very strong in the labor business. This will increase.

If this infrastructure is built, we will see increased business. I’m optimistic because of who we are, what we stand for and who our guests are, but you always have to be careful. I’m a cautious investor personally and before the business, so you can’t ignore it, but we haven’t seen the results yet.

Our sales team is doing a great job bringing business travel back to life. Since March of last year, we have surpassed the 2019 sales level. And our sales are not only business travel but also business and leisure because we sell both. Last year in April, we passed the 2019 standards. And that trend continued.

BTN: Some hotels go after group business because, as a contract business, it’s a little more long-term than a temporary wait. Is that what you are seeing?

Kukulic: Absolutely. We focused on group and group business. To do that, we formed our sales team about 10 years ago. So we haven’t seen any change, I would call it an ‘attack on that market’ on the epidemic side. We were strong in this regard because we had already built those relationships. group [segment] It may still be a team that needs a little meeting place – that business will keep coming. Our Best Western Plus hotels are required to have a meeting space, so they follow teamwork. Our sales team is really set up to make sure we keep that business going – so we always have. [and] It will always be. When I look at our sales team, and I look at their scorecard, midweek business is on that scorecard. And part of that is group business. I know we will have great Friday and Saturday nights. I want us to have great Tuesday, Wednesday and Thursday nights – that’s the team’s focus, so it’s on their scorecard. What gets measured gets done, and I want you to focus on the core business.

BTN: Some hotels are struggling to meet the demands of the convention business in terms of being able to respond to the volume of requests. Is that something your team is experiencing?

Kukulic: is not. We have a dedicated department in the sales department and their sole responsibility is to manage RFPs and liaise with our hotels. The last thing you want is to ignore the RFP. If an RFP says, ‘I’m looking for some business’ or ‘I’m looking for a place to live in Houston’ and you don’t respond to them… what it could mean to the buyer is that they don’t care. Business. The RFP is part of your reputation in compliance. Even if you don’t get the business, try to let them know you’re in the game. And it’s your reputation as far as knowing that you care about the customer and provide a solution. Even though it’s not directly related, I expect someone from the sales team to meet that customer and say, ‘Sure, we can approach, we can still be a solution,’ not just responding to an RFP. [you’re] looking for.’ If you can answer eight of these 10 needs in terms of nightly, room level, breakfast provision and meeting place, contact them and see if what you offer can meet their needs, because you can be the best. Another thing, though they can’t exactly match. Your size may be better than someone else’s – you can compensate for this. It’s about providing a solution that at least shows it’s been tried.

BTN: What sets this post-pandemic recovery apart from previous recoveries is the acceleration it experienced even before it caught on. Is the best western the same dynamic? And how are your company’s customers responding to that?

Kukulic: The answer is yes, absolutely. We told them to buy our hotels competitively, and they did. They must do so when their work costs more. All consumers feel those costs put pressure on the rate. That’s the price of doing business. And even if we can push a rate, it has to be something that the consumer says, ‘I understand why it costs money.’

I talked about how there is a lack of interest after the pandemic. People realize how important it is to travel and be with others and have experiences that they missed during that period. So, yes, rates have gone up, and costs have gone up. And so there has to be this intersection that takes into account what’s fair and reasonable and everybody says, ‘Yeah, that makes sense to me.’ The idea of ​​travel pricing has changed, and I think the same goes for businesses. People like to do business face to face. …I think businesses now realize that. And as soon as one business realizes, the others say, ‘Well, I’d better get out there too, or I’ll destroy the business.’

BTN: Let’s talk about progress. Where do you focus investments in brands and regions? Extended Stay is another hot one, and it has the Best Western brand of executive lodging. Is it a place where you want to invest some money?

Kukulic: [At the Best Western] Convention, we started home BWH. We think the extended stay market will remain very important to travelers. With the pandemic, I think extended stays are up like 16 points with traditional hotels. We have an executive residence and we [explored] A dual-brand concept where half the building is residential and the other half is Best Western. I think consumers want a commitment to what that hotel is. So starting with BWH and that extended shelf life product is very important.

We’ve just released a press release on Aiden, which I think is a huge opportunity for us. We have about 20 of these… and we’ve now signed deals for about 30 in Scandinavia. It is to our advantage to focus on the conversion market, which is Aiden. is it. [designed for] Who wants to reposition their hotel and command a higher ADR, but must be in a market that is suitable for that brand. … The corporate buyer may need some sort of hotel for their C-suite executives, but then they may have a cruise business. So we can look at that RFP, look at the business you want and say we can satisfy your journey.

BTN: What about at the regional level? You mentioned Scandinavia to Aiden, and China is floundering again.

Kukulic: Yes, it is declining. We have just signed some very big deals in Vietnam. A great opportunity in Japan [was] It is now signed. Our focus has been on South America, but politics has changed quite a bit in the last two weeks. You should look at the evolving landscape of what you think you can do. I talked about France [as] A great opportunity for us. When the epidemic happened, France got sick because many of our hotels were in Paris for the big metropolitan cities – that’s coming back a lot. And we have a big partner in France that’s focused on that, and he’s also growing the sales team significantly. That’s part of the recipe for success. We understand that not only development is important, but also sales.