Advances in technology have enabled companies to turn big data into an organized picture that can be used to identify a hotel’s strengths, weaknesses, and opportunities. When evaluated properly, this information can be used to more accurately tailor the training support provided to franchisees.
Area directors—corporate employees whose primary job is to provide operational coaching and consultations to hotels—are a franchisee’s most frequent point of contact and an unofficial extension of the training team. Whether it is a hotel visit, or a virtual consultation, an area director must understand the true needs and priorities of each hotel, as well as how to best motivate the hotel’s management to build momentum for success. Area directors rely on pre-designed consultation templates to provide the most thorough coaching for each hotel.
Program Details
In 2013, Choice Hotels International’s business intelligence group worked for three months to develop frequency algorithms that could be used to create customized consultation templates for the area director organization. The algorithms were created by using a list of key indicators that affect a hotel’s success, such as: revenue stream, occupancy rate, market opportunity, product quality, guest satisfaction, number of complaints, brand type, and even engagement with the company. That information then was used to rank properties and redesign three different consultation templates that focused on product improvement, service improvement, and revenue improvement.
A pilot program was launched and proved Choice had the infrastructure and program design to manage a highly customized system for area director consultations. That same year, the decision was made to fully launch a tailored services program that would affect every U.S. hotel within the Choice system.
Results
In 2014, the area director organization conducted 13,741 individual consultations for franchisees. Satisfaction surveys of the tailored services consultations showed that out of 2,464 respondents, 97 percent of respondents were either “very satisfied” or “satisfied” with their consultations. The results also showed that 82 percent of respondents had a plan to complete 80 percent of the area director’s recommendations.
Prior to the launch of the program, area directors were required to use instinct and common sense to determine how they utilized their time to provide consultations. Although the personal insight of an area director is still highly valued, the new program proved how useful big data could be in serving customers more effectively and efficiently, while still contributing to the bottom line.
