Technology, marketing shift BWI into fast lane - Best Western International

Hotel & Motel Management, Dec 8, 2003 by Jeff Higley

Mike Kistner, Best Western's chief information officer and v.p. of information systems, uses a cinder block to demonstrate how much information is being passed through the company's very small aperture terminal system. On the receiving end is Wes McKage, director of international systems services, who was dubbed "VSAT Boy" for this exercise.

San Antonio--Best Western International shifted from zero into overdrive during its annual convention. Speed was the overriding theme as the Phoenix-based membership organization, which has more than 4,000 properties worldwide in its portfolio, announced a $10.6-million technology initiative and a marketing partnership with NASCAR.

The technology initiative, if approved by members during a ballot vote, will provide upgraded equipment and free high-speed Internet access at all of the organization's more than 2,300 hotels in North America. The partnership with NASCAR, a stock-car racing circuit, includes being named the official hotel of NASCAR and the associate sponsorship of driver Michael Waltrip's No. 15 car.

"We're continuing to build Best Western into a brand with global appeal, and that begins domestically," said Tom Higgins, president and c.e.o. "Our strategy is to connect with guests on multiple levels so they can relate to Best Western as the world's largest hotel chain, and a brand that provides what they need."

Best Western is paying most of the bill for the technology initiative as a result of its newly implemented zero-based budgeting philosophy. Zero-based budgeting requires that a program be justified from the ground up each fiscal year.

"We blew up and destroyed everything, and started from scratch," Higgins said.

"We needed a gut cleansing," said David Kong, senior v.p. of global strategy and development. "Tom defined very clearly the roles and responsibilities. The collaboration and synergies happening now are a result of some candid conversations that helped everyone understand where we're headed. We were never short of good ideas. What we lacked before was focus and discipline. Now we're moving forward with that."

"Zero-based budgeting is a different philosophy," said Anupam Narayan, senior v.p. of global brand management and chief financial officer. "These exercises were intense. Managing expectations is always a piece of a senior-management position. So is establishing expectations."

"For years, Best Western was an entitlement-based culture, and now we're going to a performance-based culture," said Lowell Cruse, chairman.

The process yielded a surplus of more than $10 million, and the not-for-profit company's executives quickly found a home for it. Almost $8 million will be used for the high-speed Internet-access program.

"We came up with this money and didn't raise fees and dues," Cruse said.

"It shows that, as an organization, we put profits in an area that benefits all of our members," said Bob Gilbert, v.p. of worldwide sales and alliances.

The HSIA initiative, if approved by January, will require all North American hotels to have wired or wireless Internet access in all public areas and in at least 15 percent of the guestrooms. If approved, the initiative is scheduled to be completed by Labor Day 2004.

"It is the most desired customer amenity, and high-speed Internet access is quickly becoming a differentiating point [between hotels]," Higgins said.

An 88-room Best Western property--which is the average size of a property in the system--will require a router, a data switch, one wireless access point and 12 category-5-wired-location ports to cover the requirements. The $3,300 needed for the project will come from corporate headquarters, thanks to the zero-based budget. BestComm Networks LLC will oversee the installation.

"We'll request that you provide it free to the guest," Higgins told attendees.

About 25 percent of the properties have high-speed Internet access already, and those properties will each receive a $3,300 credit.

Hotels will be responsible for ongoing costs, which can run as much as $400 monthly.

Mark Williams, v.p. of North American development, said having the HSIA initiative will help the company's development pipeline because it gives developers a clear view of the direction Best Western is heading.

"Instead of it being an afterthought, or having owners wrestling over whether they should install it, there is a clear-cut direction," Williams said.

In addition, the program will allow for a computer refresh at each property. The new machines will provide members with 18 times the processing speed of their current computers and 16 times the memory of their current computers.

"We're going more and more to paperless communication, and it's important that our hotels have the right tools to access the things that they need," Narayan said. "Now we'll have a platform to deliver the tools members can use."

That means a lot for a large company that has made technology a priority throughout the past few years, according to Ric Leutwyler, v.p. of e-commerce and field marketing.