Days Inn shoots for the sun.

Hotel & Motel Management, Feb 21, 2005 by Jeff Higley

KISSIMMEE, FLA. -- Cloudy, damp weather didn't keep the sun away from Days Inn Worldwide's biennual general managers and owners conference.

From its new advertising campaign to a computer-generated cartoon character used during the general sessions, just about everything during the mid-January event at the Gaylord Palms Resort & Convention Center revolved around the sun.

"Our symbol of hospitality is a symbol of strength," said Joe Kane, president of the brand since 1996, who received a standing ovation at the opening general session. "There's nothing more powerful than the sun."

Surrounded by the theme "Best Under the Sun," the 2,000 attendees heard how DIW and parent company Cendant Corp. are expecting the best from the Days Inn system as it celebrates its 35th anniversary.

"The soul of every brand is found in its history," said Chris Trick, v.p. of marketing. "Affordability without consistency is not the value Days Inn stands for."

The brand's top goal for 2005 is to increase overall revenue per available room by 7.4 percent, which would be the largest increase in its history.

"Our future opportunity lies in building occupancy," Kane said. "[Up to this point in the recovery] RevPAR growth has been primarily fueled by [average daily rate] growth."

Boosted by a team of 27 field-based directors of business development, operational efficiencies will be the primary driver of the RevPAR growth. Kane and Dino Pallotta, v.p. of hotel services, said the directors will help franchisees chart a course of action to achieve maximum RevPAR growth.

One of the chief ways the brand will do that is by simplifying its rate structure. Days Inn has at least 897 rate plans in its central-reservation system, although the top 10 rate plans comprise 75 percent of the brand's business, Pallotta said. The simplified rate plan calls for an owner to set a rate of the day, and all other rates are determined by a preset formula.

"One of the biggest problems has been the myriad of rates and room types in the system," said Jack Burns, outgoing chairman of the DIW franchisee advisory council and owner of the Days Inn of Traverse City, Mich., since 1976. "You have to spend weeks making sure all the rates are set and that lends itself to mistakes. We've got to make it simpler."

"'Rack rate' is almost an antiquated term in our industry," Kane said. "The consumer has to feel they're getting a value for what they are paying, and a simplified rate structure will allow for that because it'll always be based on the up-to-date rate of the day."

The simpler rate structure fits perfectly into the brand's positive guest experience program, which is about a guest getting the best value for the price, Pallotta said.

Starting in April, in addition to quality-assurance inspections, owners will receive a positive-guest-experience rating. The combined score will be their QA score.

By midyear, Days Inn franchisees will be able to use www.myportal.com as a single place for all applications and services, Pallotta said. The site will enable franchisees to use one password and have remote access to information, among other advantages.

In addition, Days Inn Worldwide is spearheading a new alternate sell program for Cendant in 2005.

Pallotta said the brand lost $11 million in reservations because a requested brand did not have a property in a particular market in 2004.

The pilot program, which will run through September, will offer guests another Cendant brand when a requested brand is not available. Ramada, Howard Johnson and Travelodge also are participating.

In addition, guests will have tangible proof of the brand's commitment to quality, Kane said.

The brand is spending more time in the bathroom, Pallotta said. Its new SolTerre Shower Experience includes a hookless shower curtain, a curved shower rod and a multiaction shower head.

The new shower standards will be implemented by June 1, and will cost owners $46 per room based on Cendant's purchasing power, Pallotta said.

This is in addition to its Daybreak Breakfast program, which was announced in 2004.

Growth plans

The brand has about 1,900 properties--the same number it had when it celebrated its 30th anniversary in 2000.

Kane said there is room to grow, and that having 2,500 U.S. properties is reasonable.

"It has to be controlled, quality growth," Kane said. "We terminated 10,000 rooms from the system last year, and 61 percent of those were in the top 175 markets. That opens up opportunity to add quality inventory to the system."

He said about 30 percent of Days Inn's growth will come via construction.

"The majority of the growth will still come from conversion, but they will be the right conversions in the right locations," Kane said.

"I cannot and will not stand by while poorly-run properties drag this brand down," he said.

The brand has 6,000 guest-rooms targeted for termination in 2005, according to Kane.

Tony Berger, Cendant Hotel Group's c.o.o., told attendees that the company has learned to reinforce its franchisees and the services they need to create a harmonious environment.