Mr. Belmonte

Executive Leadership

Embracing the Culture of Change in the Lodging Industry

By Steven Belmonte, CEO, Vimana Franchise Systems LLC

When I started in the lodging industry more than 30 years ago at the age of 18 as the youngest general manager of a Holiday Inn, it was generally believed that the road to the franchising ivory tower was the straight and narrow. And at the time, that was probably true - as there were fewer big name hotels around, the travel industry was not as robust as it today, and the concept of capitalism had not reached global proportions of the 21st century. Franchising, in those days, was a new concept and was cautiously and steadily making the American dream a reality for young entrepreneurs.

While the lodging industry is not a new industry (after all, history has it that a very pregnant Mary and her husband, Joseph, needed to book a room at an inn back in the days), it is one of the originators that ushered in the concept of franchising. A franchise, by definition, is "a business established or operated under an authorization to sell or distribute a company's goods or services in a particular area." In essence, the franchisee is granted the privilege to attach itself to a brand's good reputation, name, and national recognition in efforts to garner better business in its local territory. For a large majority of people who decide to enter the franchising business, having a nationally, and even internationally- known brand behind them offers a sense of security. While franchising in the lodging sector has provided hotel owners with the security of managing a well-known brand, it has also provided consumers with a sense of familiarity and comfort while traveling.

However, in recent years, with the expansion of global business travel as well as a shift in leisure activities in which people are incorporating more vacation travel into their plans, the lodging sector has been feeling the pressure to meet the evolving demands of its guests and to change with the times.

Amenity Creep

Fast becoming a thing of the past is the simple demand for a room and a bed. In today's highly competitive market, hotels are vying to not only get a jumpstart on the latest trends but to offer the conveniences of home to their guests - such as late check-out, free newspapers, high-speed Internet access, free continental breakfast, comfortable bedding, name brand soaps and shampoos, game and video consoles, business and fitness centers, and frequent guest loyalty programs.

These offerings have started to place a squeeze on many franchisees. In order to keep up with the market demands and stay competitive, franchisors are requiring franchisees to pay for the changes in the industry - thus taking a big bite out of the entrepreneurial dream of being able to own a business and earn a living.

A New Breed of Franchising

A big change borne from the latest trends and direction in the lodging sector lies directly in the essence of franchising. This change led to a more franchise-friendly model. The new 'franchise' of today is better known as a membership (or affiliation) brand and it works with hotel owners to hone in on their market niche. As members of a membership brand, hotel owners are eradicating their isolation from the policy making decisions and are now instrumental in spearheading the direction of their brand.

Another type of change occurring in the lodging industry is in the demographics of hotel owners. The newest generation of owners consists of young entrepreneurs and they are not building their parents' motels. They are more focused on carving out a unique niche for their properties that ultimately translates into better marketing potential and greater ROI. The hotel owners of this era are marketing savvy and are more willing to take risks. They are embracing the membership model because they still have the support from the brand while having the freedom to oversee their vision for their properties.

Today's generation of hotel owners has been able to not only keep abreast of the hottest trends in the market but to embrace them. Lifestyle hotels are the latest trend; and one of the offerings in demand is the spa component. As a result, a large number of midsized properties are integrating spa features into their portfolio.

Consumers Cultivating a Culture of Change

On a consumer level, guests have become savvier in selecting hotels to meet their needs. They research properties online prior to booking, do comparative shopping for better bargains, and seek out ways to get rewarded for their patronage. These avenues have thrust franchises into the high-tech and online social networking realm to reach consumers and win their loyalty.

It is now more important than ever for hotels to pay special attention to customer service. With the influx of MySpace, YouTube, text messaging, cell phone cameras, social networking, blogging, and 'you rate it' websites - word of mouth travel as fast as the push of the 'send' button on the computer.

While high-tech gadgetry is something most often feared, some owners have not only embraced it, but have discovered creative ways to use it as a marketing perk by offering fun interactive activities, promotions, and contests using chat technologies and video logs.

Globalization Getting into the Game

In the past few years there has been an increase in the number of hotels being built or converted internationally. To ensure that all hotels within a brand are staying connected, reservation systems continue to enhance their features to serve customers both domestically and internationally. Most lodging web sites offer a one-stop platform for customers to reserve a room anywhere in the world. These web sites have capabilities that convert currency rates to determine how much a stay will cost, and translate pages into a variety of languages such as Spanish, Chinese, Japanese, German, and French, to name just a few.

Hotels owners are hiring more multilingual staff members to cater to foreign travelers. Lodging directories and other in-room materials are printed in a multitude of languages. As in all industries, change can be good if cultivated carefully. As demonstrated in some examples above, the lodging industry in particular has been fast and creative to embrace the culture of change.

Vimana Franchise Systems LLC is a hotel franchise company owned by CEO Steve Belmonte, President Neal Jackson and Vice President Cory Jackson Jr. In May 2011, Vimana Franchise Systems launched the Centerstone brand as a three-segment franchise designed to create a fair and cost effective model for the hospitality industry. In November 2011, Key West Inns was re-launched under the Vimana Franchise ownership umbrella as a fun and uniquely themed leisure brand. For more information on Vimana Franchise Systems LLC, contact Steve Belmonte at (407) 654-5540 steve@vimanafs.com. Visit Vimana Franchise Systems online at www.VimanaFS.com. Visit Centerstone online at www.centerstonehotels.com, on Twitter at @Centerstonehtls, or on Facebook at www.facebook.com/Centerstonehotels. Visit Key West Inns online at www.staykeywesthotels.com, on Twitter at @StayKeyWest, or on Facebook at http://www.facebook.com/staykeywest. Mr. Belmonte can be contacted at 407-654-5540 or steve@centerstonehotels.com Extended Bio...

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