ALL IN: Red Roof's Commitment to Continued Profitable Growth
By Phil Hugh Chief Development Officer, Red Roof | February 02, 2020
At Red Roof's 2019 Brand Conference, one of our major themes was "Be All In" which means take pride in what you do; be passionate and enthusiastic while making the most of the opportunities you have. It's about an ALL IN attitude and for our owners and franchisees, it means protecting and being passionate about the investment they've made. At Red Roof, our relationships with franchisees are stronger than ever – because we're all aligned on this one goal of being the best at what we do together, being "All In".
Franchise relationships are sacred to us and we keep a finger on the pulse of franchisees by continuously asking them how we're doing. That culture of listening has created an atmosphere of inclusiveness, responsiveness and togetherness. Nurturing strong relationships has led to a happy and satisfied franchisees. In a recent internal survey, 90 percent of our franchisees said they're pleased with their decision to partner with Red Roof. The vast majority of Red Roof franchisees gave top marks to our key top-line drivers – communications, driving business through the brand, well-managed brand quality, service quality, services for the money, and overall performance.
Franchisees who join Red Roof increase revenue and generate more guest satisfaction. Properties that joined Red Roof in 2015 were at an average RevPAR comp set index of 71 percent, and by the end of 2017 had jumped 19 points to 90 percent. Properties that joined in 2016 improved 15 points to a 90% index by the end of 2018.
Our franchise owners also appreciate our innovation. Innovation that drives bookings, encourages guest loyalty and increases revenue. We've developed programs like REDvenue, which is designed specifically to help franchisees maximize revenue. REDvenue gives franchisees the support they need to develop a strong rate strategy – in the form of a professional revenue manager. That person works with them to put together the strategy, evaluate the market, and take advantage of opportunities.
Smart franchisees – successful franchisees – fully utilize REDvenue and their revenue manager's contributions. Another program that helps franchisees is RediCall. We've learned through our RingRedi property audits that around 16 percent of calls to inns go unanswered. That is lost business. RediCall transfers those calls directly to the Red Roof Contact Center, and they're answered by call professionals who are trained in sales and customer service. The Red Roof contact center's conversion rate is tops in the industry. RediCall captures more business, and – again – makes more money.
Franchise relationships are an incredible driver of success and growth for hotel brands. Hotel companies that embrace and nurture their franchisees with a mix of revenue-mindful services, touchpoints, and engagement will be especially rewarded. Hotels that operate with a franchise model must work closely with current franchisees to drive revenue and limit the number of properties their operational team serves per franchise owner to ensure personalized, specific-to-property results. For instance, at Red Roof, there are only 40 franchisees per FOD.
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