February 10, 2004 - Franchisors have a responsibility to their franchised
property owners to create value, drive revenue, and provide good business
practices. Among the companies that take this responsibility seriously,
12-year old midscale chain Country Hearth Inns works especially hard to
put its 50 plus franchisees first. The company offers site-specific
local marketing strategies for each of its properties; assists owners with
public relations, operations and purchasing; and invests in leading edge
voice reservation services, GDS marketing technology, and electronic distribution
services for its operators. All of this contributes to Country Hearth
Inns� service-focused mission statement, �One brand, one vision, one team,�
that is helping to fuel their growth. Four new properties will open
in March 2004, and the chain projects a 28 percent increase in size by
the end of the year.
Reservation delivery is one key area Country Hearth Inns (CHI) is targeting to boost its owners� profitability. �Our company and its operators are proactive in maximizing bookings from all reservation sources, whether from third party Internet sites, GDS companies, or our hotels� own websites,� said Country Hearth�s Doug Collins. For the past five years CHI has partnered with Lexington Services, a leading full-spectrum reservation and technology service company, to supply toll-free voice center services, GDS reservation connectivity, website technology and sales strategies for its franchisees. �We work with our owners to generate promotional emails and eCommerce strategies designed to extend their exposure. We link our sites to various local attractions like casinos, golf courses, local Chambers of Commerce, colleges and other demand generators. Our reservation service partner has done a terrific job of maximizing our exposure in the major travel distribution channels, and taking care of our reservation delivery needs as well as creating and maintaining relationships with wholesalers.� With on-line channels expected to provide 33 percent of hotel reservations for the industry in the next 3 to 5 years, Country Hearth Inns is on target with its Internet thinking as it perfects its reservation delivery strategies. 22% Web Booking Increase Boosts Revenue 14% Year-Over-Year As Country Hearth Inns expands, its long-term goal is to create brand
awareness among the Internet booking sites and travel agents that drive
the majority of hotel reservation business. By working closely with
their reservation service provider, CHI identified the most productive
third-party travel sites, and they are aligning franchisees� inventory
offering with the sites to raise reservations delivered through these channels.
Country Hearth experienced a 14 percent growth in chain-wide revenue in
2003 over 2002 largely through a 22 percent increase in Web bookings, combined
with advertising and brand-awareness programs.
 Industry studies show average room rates were 6.5 percent higher in 2003 for reservations booked from property websites than from non-property sources. The same study also noted that hotel site bookings are more profitable because they have a very low cost per reservation. As a result, Country Hearth Inns initiated a program that goes beyond third-party travel site marketing to drive higher booking volume to its franchisees� own Web pages. CHI�s reservation service provider cooperated by developing an advanced Web booking engine that hotels can install on their Internet site to take advantage of this profitable Internet sales opportunity. Country Hearth Inns� Doug Collins, explained, �The new �LexBook� reservation engine lets our operators offer shoppers an attractive, branded and secure source of room reservations that is in service 24 hours a day, seven days a week. This kind of branding gives our properties more credibility and a strong image. We were so impressed with the early results from LexBook that we are now rolling it out to all our properties.� Country Hearth Inns� new booking engine is linked to their central reservation system so that inventories are always current. Country Hearth also provides franchisees with professional toll-free voice reservations. In selecting a central reservation center CHI�s main concern was that that its provider�s voice staff answer calls promptly and courteously, and that agents were knowledgeable about Country Hearth Inns� properties and product. �All our 1-800 reservations are now handled by our reservation service provider�s central reservation sales operation,� said Collins. �They also provide our owners with reservation conversion reporting on a daily, weekly and monthly basis. Our franchisees in the limited service segment usually do not have the resources themselves to keep up with the changes in our industry, but they receive it from Country Hearth Inns by being part of the group.� VIP International, the industry�s second largest provider of reservation sales services with 4,600 hotels, acquired Lexington Services in December 2003. Doug Collins concluded, �We feel VIP will do a tremendous job of delivering reservations to our franchisees. VIP is one of the largest channel marketing companies in our industry. Country Hearth Inns is already seeing very good things coming from our relationship with the new company.� About Country Hearth Inns Country Hearth Inns is a midscale hotel chain with over 50 locations that offer value to the corporate and leisure traveler. At every Country Hearth Inn travelers find a great value beginning with the InnCredible Breakfast included in the price. Country Hearth also offers special packages and the Country Club frequent guest program. At all of Country Hearth Inns� convenient locations from Michigan to Georgia, from Texas to North Carolina, guests experience the warmth of a bed and breakfast with the convenience of a hotel. Country Hearth Inn franchises are available in all 50 states and in Canada. About VIP
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VIP
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