To say that the past 18 months have been difficult for franchisees is an understatement at best. The largest factors in the industry downturn—the economic recession and financial system collapse—were beyond our control. We must, however, take responsibility for the fact that, as individuals and as an industry, we ignored the biggest lesson of the last recession. We have cut prices to levels that are unsustainable in a fight for street-corner and brand market share while providing unlimited access to third-party distributors that sell price, not value. This and other actions have not inspired the consumer to travel more. The outcome is an industry that is greatly devalued and in many ways crippled.
The next year will be a pivotal one for franchisees. There are five things that every franchisee should keep in mind:
1. The brands can’t turn this around on their own and you shouldn’t count on a government bailout either.
We’re on our own, but it doesn’t mean that individual hoteliers need to do this alone. It’s time for our industry to begin thinking bigger, bolder. We have exceptional associations, such as the American Hotel & Lodging Association and the U.S. Travel Association, that could make a difference in increasing the desire to travel again. “Got milk?†sound familiar? Other industries have banded together to increase demand for their products. Can’t we? The only obstacle in our way of doing the same for the travel industry is will, collaboration and vision.2. Rate recovery is a long climb. The deeper you cut your rates, the steeper your road back to profitability.
Carry on reading…
