4 minute read
What are the positives of franchising?
What are the positives
of franchising?
By Kate Jackson, Industry Reporter
Accom is an industry full of single entities, all pushing to make headway in a competitive market.
Working together can be a powerful way to advance business and create a sense of wellbeing in an autonomous world, particularly if you are new to the game and keen to tap into the collective knowledge of veteran campaigners.
The management tiers that come with a franchise provide a support system for tackling issues that crop up daily - from OTA demands and staffi ng issues to arguments with guests.
Being part of a chain means having a network of other operators to connect with, and those connections cannot be underestimated. Talking through issues, garnering tips or just venting to someone who understands are all very human needs.
Quality franchises are welloiled machines that, in many cases, have been operating for
decades. They help establish standards of excellence and present opportunities for in-house training, national marketing support and access to “been there, done that” advise.
Adrian Turner, group general manager for Quest Apartment Hotels in NZ, says Aotearoa is the most franchised country in the world, with more than 630 diff erent systems available.
“However, not all franchises are created equal and the successful ones are the ones that have structure and have assessed the risk relevant to what they are off ering to ensure that their franchisee has the ability to be high performing in a low risk environment,” he says.
“Franchise systems that belong to the Franchise Association and have their documentation audited to ensure compliance with the association’s code of practice is always a good place to start.”
Joining the club
As a mum-and-dad operator, trying to get your accom noticed in a world dominated by online travel agents and an ever-changing social media landscape marketing is daunting. Those choosing to join a franchise oft en do so because of the access it provides to extensive marketing networks. As Adrian Turner says: “Partnering with a recognised brand gives you access to a pool of management expertise which helps steer your business without removing the level of autonomy that most accommodation owners desire.”
Networks represent an overarching set of values to guests which helps market their individual members. And they have the available resources to consider the kinds of advertising campaigns and techniques which those going it alone might not have the funds to employ, however skilled and creative.
Large accommodation brands are savvy about ways to drive direct bookings. While guests might not think to check the website of a niche property to see if there are any benefi ts to booking direct, people tend to know that big brands off er free wifi , complimentary extras or discounts to those who pick up the phone or book direct online.
Franchises also inevitably have much greater clout to negotiate lower OTA commissions on behalf of their franchisees than individual operators and represent a more powerful voice with which to argue policy.
The loyalty benefits of partnering with a recognised chain are clear - as part of a network you enjoy access to benefits offered exclusively to guests of the brand. In an online travel world dominated by huge global booking agents, ‘owning’ your guest has never been more important. Loyalty networks incentivise guests to stick with a brand and create repeat business across the group.
A loyalty program is almost a pre-requisite for any property looking to attract those travelling for work, and accruing points means those business travellers are far more likely to rebook directly and return with their families. Franchise networks offer extensive loyalty network systems which encourage guests to rebook with a brand and help drive repeat business across the group.
Property management
While any quality modern PMS system should interface easily with myriad software systems, systems employed by networks generally offer enhanced connectivity and functionality.
A cross-group property management system, for example, can facilitate the creation and cross-sell of marketing campaigns across the group, encourages guests to book with any of a network’s properties.
And within a quality brand which sets high expectations for guest experience, there is the flow-on effect of fellow operators creating such a positive experience for guests that it convinces them to book again under the same
© Tashatuvango – stock.adobe.com
brand umbrella. The crosspollination of guests is especially helpful for those in competitive markets, where guests are likely to ‘go with what they know’.
Expectations and reputations
Where independent properties must start from scratch when it comes to reputation, franchisees benefit immediately from the reputation of a parent franchise.
However, reputation cuts both ways: A successful, well-regarded brand need to protect its standing and Operators are required to adhere to a predetermined set of quality standards, so there is never a doubt about what’s expected when it comes to benchmarks, and guest expectations are pre-ordained and pre-managed.
Adrian Turner says Quest, for example, has a selfassessment profile where potential franchisees can assess themselves against critical success factors.
“They must have a passion to learn and achieve business success and uphold the Quest brand values,” he says.
Typical guest expectations for a franchised property will involve, for example, good mattress quality, in-room food options and strong amenity offerings. Some requirements are things that can be difficult for independent properties to provide off their own bat and franchisors will often support expectations that are difficult for members to deliver - helping with arrangements for free wifi delivery, for example.
APARTMENT HOTELS
