FALL • 2016
THE ALBERTA HOTEL & LODGING ASSOCIATION
Inspiring Service - Growing Value
BRIGHT IDEAS
Lighting tips for every area of your hotel
PM#40020055
What you need to know to be prepared
THE WHOLE PACKAGE
Creative compensation to attract the best employees
How to manage a no-tipping policy
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Contents FALL
2016
12
Columns 7 Letters 9
The Lobby
Top 5 recycling tips, managing finances in tough times, navigating a no-tipping policy
20 26
CAFÉ
HOTEL
DRAYTON VALLEY
Features 14
At Your Service
A new AGLC program rolls out across the province
16
16
Manager’s Corner
General manager Bruce Primeau talks about the challenges facing hotels today
24
12
Notes from Home and Abroad
18
AHLA and You
19
HR Files
Back of House 26
Eat, Drink, Sleep
Drayton Valley
28
Speaking Personally
David Keam, General Manager of the Edmonton Renaissance Airport Hotel
30
Parting Shot
20 Welcome? With Airbnb on the rise across the country, it’s time to strategize
24
Featured Employee: The Right Ingredients Alexander Herbert combines his culinary skills with strong leadership at the Pomeroy Hotel
Inspiring Service - Growing Value
www.ahla.ca
28 Fall 2016
Mainstay
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Over 30 Years of Excellence and Dependability FALL 2016
Official magazine of
2707 Ellwood Drive Edmonton, AB T6X 0P7 Toll-Free: 1-888-436-6112 www.ahla.ca
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Chair of the Board:
Perry Batke
First Vice Chair:
Leanne Shaw
Past Chair:
Steven Watters
President & CEO:
Dave Kaiser
Vice Chairs:
Chris Barr Tina Tobin
Directors North:
Amr Awad Shazma Charania Robin Cumine Ken Mealey
Directors Central:
Karen Naylor George Marine Mark Perry
Directors South:
Heather Hamilton Sandra Kanegawa
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10259 105 Street Edmonton, AB T5J 1E3 Toll-Free 1-866-227-4276 Phone (780) 990-0839 Fax (780) 425-4921 www.venturepublishing.ca
Publisher and Editor-in-Chief:
Ruth Kelly
Managing Editor:
Kim Tannas
Art Director:
Charles Burke
Graphic Designer:
Andrew Wedman
Production Manager:
Betty Feniak
Production Technicians:
Brent Felzien, Brandon Hoover
Vice-President, Sales:
Anita McGillis
Contributing Writers:
Robin Brunet, Julie-Anne Cleyn, Chelsea Grainger
Contributing Photographers and Illustrators:
Cooper & O’Hara, Courtney MacLellan, Darryl Propp, Eugene Uhuad
PM #40020055 Mainstay is printed on Forest Stewardship Council® certified paper Mainstay is published four times a year for Alberta Hotel & Lodging Association. Content copyright 2016 is held by AHLA. Content may not be reprinted or reproduced on websites without the express permission of AHLA. Undeliverable mail should be returned to Venture Publishing at 10259 105 Street, Edmonton, AB T5J 1E3
The Alberta Hotel & Lodging Association
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President’s MESSAGE
Taxing Times BY DAVE KAISER, AHLA PRESIDENT & CEO
A
S PART OF ITS CLIMATE LEADERSHIP PLAN,
Alberta’s NDP government will introduce a new carbon levy in January 2017. The levy will be included in the price of all fuels that emit greenhouse gas (GHG) emissions when combusted. What will the cost of this new tax be for Alberta’s hotel and lodging sector, and how can operators mitigate this tax? The carbon levy will be applied to fuels at a rate of $20 per tonne in 2017 and will increase to $30 per tonne in 2018. Based on consumption data collected through our electrical energy and natural gas programs, the AHLA estimates the carbon levy will increase the annual cost of these utilities by approximately $200 per room. For a typical 100-room property, this means additional overhead of $20,000 per year in 2017 – rising even further in 2018. The cost for full-service properties with extensive food and beverage outlets will likely be higher. In addition, the carbon levy of $.0535 on diesel fuel and $.0449 on gasoline will raise costs for suppliers to our industry – costs that will likely be passed on to operators. Given Alberta’s current economic climate and the hotel room supply/demand imbalance that exists in markets outside of the resort areas, it will be challenging for hotels to pass on these costs to consumers by increasing room rates. However, the government’s commitment to reinvest revenue generated by the carbon levy back in the economy may create opportunities for hotels to reduce their costs. A total of $645 million has been earmarked for Energy Efficiency Alberta, a new provincial agency that will support energy efficiency programs and services for homes and businesses. The AHLA has submitted a proposal to Alberta’s Climate Change Advisory Panel for an industry specific energy efficiency program that would help hotels mitigate the cost of the carbon levy while lowering our industry’s GHG emissions. Our goal is to help our members access funds made available
Inspiring Service - Growing Value
The government’s commitment to reinvest revenue generated by the carbon levy back into the economy may create opportunities for hotels to reduce their costs.
through Energy Efficiency Alberta to support capital upgrades and retrofits that will reduce energy consumption. The AHLA has a number of existing assets, including our natural gas, electrical energy, and carbon offset programs, a legacy energy efficiency fund, and communications infrastructure that can be leveraged to support this initiative. Early discussions with our energy consultant and partners have been very positive, and we believe an energy efficiency program led by the AHLA would be successful. Let’s hope the NDP government believes this too. We look forward to serving you!
www.ahla.ca
Fall 2016
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Chairman’s REPORT
Stronger Together BY PERRY BATKE, CHAIR OF THE BOARD
O Even in the most difficult of times, the true spirit and resilience of our industry shines through.
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NE OF THE THINGS I ENJOY MOST ABOUT BEING
part of our industry is getting to know some tremendous hospitality people and entrepreneurs. These individuals have shown the courage, compassion, and resilience to build outstanding and enduring hospitality enterprises. They have made major investments in financial and sweat equity into their properties, and in many cases put their life savings into these businesses. They employ and support many individuals and families. Their hotels are the hubs of their communities, forming an important part of Alberta’s connective tissue. Right now our industry is hurting as we move through the worst recession in a generation. While tourism booms in the mountain parks, many of our members in other areas of the province are struggling, and their businesses are in real jeopardy. This is not just a downturn; it is a crisis. Individuals, families, and businesses are in turmoil as we deal with the collapse of Alberta’s resource sector. Add to this the number of hotels recently opened or in the pipeline, minimum wage increases, and the impending carbon tax, and it’s not hard to see that our industry is facing unprecedented headwinds. The AHLA and your Board of Directors understand the pain our members are feeling. As hoteliers, many directors are experiencing the same struggles. We are committed to serving and supporting you during these difficult times. The AHLA must help our members navigate the current environment and work to strengthen Alberta’s tourism and hospitality industry. Times like these prove the importance of association. We are always stronger together. Even in the most difficult of times, the true spirit and resilience of our industry shines through. There is no better example of the spirit of hospitality than the response of Alberta hoteliers to the Fort McMurray wildfire earlier this year. The concern for the tens of thousands of evacuees was overwhelming, and we were moved to hear of the acts of kindness and care shown by our members and their staff. Despite our current economy, over 500 AHLA members came together to raise more than $110,000 for a legal fund that successfully
Fall 2016
www.ahla.ca
opposed the Town of Fox Creek’s four per cent business licence fee on hotels. Unopposed, this bylaw not only threatened the financial sustainability of our Fox Creek members, but also the viability of hotels across the province. While no one knows what will happen on the road ahead, I remain confident in the spirit and resilience of our members. We greatly appreciate your trust and support and will remain keenly focused on our mission.
The Alberta Hotel & Lodging Association
The
LOBBY INDUSTRY TIPS & TRENDS
TIPPING POINT
BY Julie-Anne Cleyn
Should you introduce a no-tipping policy? WITH RECENT MINIMUM WAGE INCREASES IN ALBERTA, SOME restaurants and hotels are responding by introducing no-tipping policies at their establishments. We asked Perry Batke, General Manager of the Best Western Plus Denham Inn and Suites and the Days Inn Edmonton Airport, both in Leduc, a few questions on the subject. WHY WOULD A HOTEL CONSIDER A NO-TIPPING POLICY? I think it’s a reflection of where the industry is going. I’m not saying that everybody is going to adopt this, but with a lot of the changes that are happening, it’s forcing the industry to challenge long-standing paradigms. A lot of this conversation is being driven by the implementation of new minimum wage legislation with the provincial government. With the higher minimum wages for the front-end service staff that are getting tips, it really creates an equity issue with the back of the house people, so it’s a way to bring equity to both. Some people see it as an opportunity to provide more stable and steadier pay for all of the employees. There’s a stream of thinking as well that customers will know what they’re paying upfront. HOW WOULD A HOTEL COVER THE COST OF SERVICE? Menu prices would go up, but that new menu price might be equal to what the original menu price plus the tip would be. HOW DO YOU THINK A NO-TIPPING POLICY WOULD AFFECT BUSINESS? There are some compelling reasons for no tipping that I mentioned, but it could be difficult for customers and staff to get comfortable with, definitely the front-end staff. They wouldn’t be walking away with as much money. Some guests may feel awkward about not leaving a tip. Tipping has become such a custom that some customers may feel that it takes away any incentive for good service. However, we’re moving to more of a cashless society. From that perspective, customers may appreciate an all-in price.
Inspiring Service - Growing Value
HOW CAN YOU APPROACH SOME OF THE CHALLENGES THAT YOU MENTIONED? Change is always tough, especially with something as ingrained as tipping. For the staff, it starts with creating a vision for the operation. It’s a way to support and create equity for the back-of-house people, which will attract great culinary professionals to the business, which will enhance the overall guest experience and help draw more business. WOULD THERE BE AN IDEAL TIME TO IMPLEMENT SUCH A CHANGE? That’s really an individual decision for each business based on their own situation and circumstances. However, maybe where a lot of people started asking themselves these questions was on October 1 of this year when the minimum wage went up, and then in subsequent years when it goes up again. The minimum wage increase at our one hotel represented around $30,000 right off the bottom line. HOW WOULD YOU COMMUNICATE A NO-TIPPING POLICY TO CUSTOMERS? I think it’s part of telling a story, and you can start communicating directly with your customers, explaining the rationale behind it. I think that direct interaction with the customers is going to be crucial, as well as ensuring guests continue to experience great service and food quality.
www.ahla.ca
Fall 2016
Some guests may feel awkward about not leaving a tip. Tipping has become such a custom that some customers may feel that it takes away any incentive for good service.
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PHOTO: DALE MACMILLAN
The LOBBY
GREAT SHOT
The Tour of Alberta is a road cycling race with an international audience, with 2016 marking its fourth year in the province. This year’s race made stops in Lethbridge, Kananaskis, Olds, Rocky Mountain House, Drayton Valley and Edmonton.
socialmedia@ahla.ca @ABHotelAssoc
Your Say...
Three things I don’t care about in hotels? Land line phones. On-demand movies. Wake-up calls. (Things I do care about? More power outlets!) - Todd Hirsch, @ABeconomist
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Happy International Housekeeping Week. Thank you to all #AB hospitality workers for creating welcoming spaces for our visitors #ableg - Ricardo Miranda, @RicardoYYC
www.ahla.ca
On September 11, AHLA Member JeanMarc Guillamot spoke to Global News about the re-opening of hotels and businesses in Fort McMurray.
The Alberta Hotel & Lodging Association
Top Five Recycling Tips
BY Julie-Anne Cleyn
Environmentally friendly ideas for your hotel
DID YOU KNOW THAT IN 1997, WHEN THERE WERE NO RECYCLING programs in certain Canadian cities and provinces, it was a lodging industry group that developed them? That group is Green Key Global, an environmental certification body for the industry. Below, Linda Hartwell, Director – Marketing Communications and Program Management at Green Key Global, gives us her Top 5 recycling tips for hotels. An increasing number of travellers value hotels that work to reduce their environmental impact, so guests will appreciate your efforts.
1. Talk to your waste management company about what kind of recycling programs you can expand on.
2. Only accept recyclable or reused packaging from your suppliers, and return any excess.
3. When your housekeepers find bottles that can be
4. If toilet paper rolls in guest rooms are not used to the end, reuse them in public washrooms or donate them.
5. Recycle your discarded soap and plastic bottles and donate them to Clean the World, a not-for-profit corporation that distributes them to impoverished people. For more information, visit cleantheworld.org.
returned for value, allocate the proceeds towards a staff event like a holiday party.
FIXING THE FINANCES How to manage costs in tough times BY Julie-Anne Cleyn
DON’T PANIC. THAT’S THE FIRST PIECE OF ADVICE ON HOW TO MANAGE YOUR finances in tough times from Mark Moerkerk, who works in Direct Commercial Services at Servus Credit Union. “Our economy is designed to have periods of both growth and adjustment,” he says. But what can you do to maximize your revenues and reduce your costs during these difficult times? Moerkerk suggests you build a strong business plan. “It’s the foundation for long-term business success. It helps you manage growth at a comfortable pace, minimize exposure in tough times, and identify options for both up and down economies.” Keep your bank or credit union updated on your performance too. If you need to rearrange payments, tell your advisor you’d like an appointment to discuss your business plan for improving performance in the current economy. “Be prepared to answer the tough questions, with data to support your answers,” says Moerkerk. It’s also essential to track your performance. If you don’t forecast, your costs can spin out of control quickly. Prepare month-to-month cash flow projections and use them to understand your credit requirements, determine the Inspiring Service - Growing Value
adjustments you need to make, and where to allocate excess funds. Lastly, review your partner programs. For example, the AHLA’s electrical energy and natural gas programs can help you secure a competitive rate, lowering operating costs and improving your property’s profitability.
www.ahla.ca
Fall 2016
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The LOBBY
Notes from Home and Abroad Ship Shape Accommodations Sometimes in the hotel business, you have to think inside the box. Such is the case for a Studio 6 Extended Stay hotel recently opened in Bruderheim, a town 50 kilometres northeast of Edmonton. “This would be the first hotel in North America that’s built entirely out of shipping containers,” says Boris Javorski, co-owner of the four-storey, 63-room hotel. Most of the shipping containers that come to Canada (largely from China) stay here because the products we export – grain and crude oil – don’t leave in shipping containers, explains Javorski. “So we put those to use, which is really awesome.” The hotel was constructed in Calgary by Ladacor, a manufacturer of advanced modular units. Eighty steel containers were cut apart and reshaped into 40 modular units – 10 for each floor – and
then transported to Bruderheim, where they were interconnected and clad in a stucco finish. Looking at it, you can’t distinguish it from a regular hotel, says Javorski. Plus, steel construction comes with added benefits such as a longer lifespan and better protection against fire. The hotel will provide much-needed accommodations for oil and gas workers in the Industrial Heartland region and an economic boost to Bruderheim.
BANFF PROPERTY PURCHASE Canalta Hotels recently completed the purchase of two properties, adding the Banff Spruce Grove Inn and Banff Voyager Inn to the 43 properties the company now owns across Alberta, Saskatchewan, and Manitoba. “It will expand our footprint into a more tourist-based market, allowing us to grow our brand and our operations into a market that we’ve wanted to be in for a long time,” says Blair Christianson, who is one of the company owners along with his dad and brother. “It will also help diversify our hotels as we’re predominantly in secondary resource-based markets.” Both properties will be undergoing major renovations over the next 12 to 18 months, he adds. In addition to operating hotels under the Canalta hotel brand, the Drumheller-based company also operates Hampton Inn & Suites by Hilton in Medicine Hat and owns the development rights for Ramada across Canada.
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www.ahla.ca
The Alberta Hotel & Lodging Association
BRIGHT IDEAS Lighting tips to make your property sparkle Property owners often put a lot of effort into the design of their spaces, choosing quality materials and paying attention to layout and flow. But without the correct lighting, guests won’t be able to appreciate those details, says Latif Jamani, President of Calgary Lighting Products. “Lighting is what allows people to properly see and experience that,” he says. Jamani offers some tips on how to make the most of the lighting at your property.
PERIMETER LIGHTING: The lighting on the exterior of the building and around the property provides a first impression to guests. “We’re showcasing the image and providing a warm welcome to guests. We want to create the right ambience and a good sense of safety and security, especially at nighttime,” says Jamani. “You want it to be lit enough so that when someone arrives, there’s a sense of ‘I’m home’ or ‘I’m safe.’ ” Exterior lighting can make your hotel more visible to passersby, he explains, citing the example of a lighting project he recently completed with the Wingate Hotel in Calgary. “The hotel was set back from Macleod Trail so people driving by couldn’t really see the hotel at nighttime, so we’ve put these LED floodlights that highlight the hotel and make it stand out,” says Jamani.
LOBBY AND HALLWAY: In the lobby area, you want to achieve what Jamani calls the sparkle effect. “That would be an area where we would recommend looking at 4100K bulbs. It’ll amplify the reflection around the space to make it feel open and appear brighter.” With 4100K bulbs, the colour is more of a cool white versus a 2700K bulb, which gives off a warm light. He also recommends lighting architectural features (such as vaulted ceilings or special materials) or artwork on the walls to emphasize those details.
The lobby and hallway area is a prime candidate for LED lighting, he adds. “Because it’s on 24 hours a day, we want to make sure that the light being used is long-lasting and energy efficient,” he says, noting that by using LED bulbs, you can reduce your energy consumption by over 50 per cent and make progress on your hotel’s sustainability mandate.
GUEST ROOMS: Providing a sufficient quantity of light makes guests feel comfortable and opens up the space. “Typically, we recommend a warm tone (2700K) in hotel rooms,” Jamani says, which can achieve a homey, welcoming ambience. But there are exceptions. In an older hotel that doesn’t have the infrastructure to provide adequate lighting (table lamps with no ceiling fixtures, for example), 4100K light bulbs can make the room feel brighter without incurring extra costs. In the end, good lighting at your property feeds back into a positive experience that will encourage guests to return again and again.
Get Global Ready Travel Alberta is offering free online training to help tourism businesses in the province take advantage of the growth in visitors from China. According to Travel Alberta, Chinese visitation to Alberta is growing fast and will continue to expand in the years ahead. China is now the world’s second-largest economy and also one of the fastest growing outbound markets. A new Hainan Airlines non-stop flight between Beijing and Calgary, launched in June, is expected to bring more Chinese tourists to the province, increasing hotel room nights and growing Alberta’s visitor economy. Working with BRIC Marketing Group, Travel Alberta is offering free China-focused training programs to help managers,
Inspiring Service - Growing Value
customer service and frontline staff to prepare for this growth. Available sessions include: • Cultural Awareness: Information on Chinese travellers, culture, and more • H otel Ready: Information to help hotels anticipate Chinese travellers’ hotel needs and wants • R estaurant Ready: Information on Chinese food culture, Chinese dining, and etiquette For more information on the Global Ready – China Sessions, visit industry.travelalberta.com/resources/industry- development/global-ready-china
www.ahla.ca
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AT YOUR
Service
Smart Drinking Starts With DrinkSense
I
N ITS CONTINUED EFFORTS TO ENCOURAGE ALBERTANS TO
drink responsibly, the Alberta Gaming and Liquor Commission (AGLC) recently launched DrinkSense. A provincial awareness campaign kicked off on September 9 which included a new website (DrinkSenseAB.ca), videos playing at movie theatres, online advertisements and other promotional materials. DrinkSense was also promoted to staff at licensed venues in the hospitality industry including 130 Best Bar None venues across Alberta. The program will tie into ProServe, an AGLC responsible liquor service program, which provides mandatory training for anyone who serves alcohol in the province. Modelled on the successful GameSense program which supports responsible gaming, DrinkSense will unify all of AGLC’s liquor campaigns under a common look and feel. “DrinkSense represents the AGLC’s ongoing commitment to social responsibility and promotion of healthy alcohol consumption,” says Bill Robinson, President and CEO of the AGLC. One of its priorities is to promote Canada’s Low-Risk Drinking Guidelines, which is a resource for Albertans that provides daily and weekly recommended limits for alcohol consumption. “If an establishment supports responsible drinking and the patrons are starting to get the messages, then we’re moving forward towards a culture of moderation, and that’s really what we’re trying to do,”
explains Eric Baich, Manager, Social Responsibility-Liquor, AGLC. Baich adds, “The reality is it’s unrealistic to think that one message might make a difference, but an accumulation of messages might start planting seeds that lead people to have discussions and changes in attitudes and behaviours where people commit to making safer choices.” Statistics show that more than 85 per cent of Albertans drink responsibly, but for those that don’t, there are significant risks that come with excessive alcohol use. “It’s awesome when people go out with family and friends and have a few drinks. Our message is to help ensure they know their limits and know that overconsumption can lead to many harms,” he says. The DrinkSense launch coincided with a new DrinkSense-branded Fetal Alcohol Spectrum Disorder (FASD) campaign to help create awareness of the risks associated with drinking during pregnancy. It’s estimated that nine out of every 1,000 babies are affected by FASD in the province. As part of the campaign, a new FASD poster appears in licensed venues across Alberta. “There’s just no safe amount of alcohol to drink during any stage of pregnancy,” says Baich. “It’s better to be safe than sorry because it’s a lifetime for those who suffer from FASD.”
“DrinkSense represents the AGLC’s ongoing commitment to social responsibility and promotion of healthy alcohol consumption.”
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For more information, visit DrinkSenseAB.ca
www.ahla.ca
The Alberta Hotel & Lodging Association
Manager’s CORNER
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The Alberta Hotel & Lodging Association
Q&A The industry may have its share of challenges, but good advice is only a phone call away BY KIM TANNAS / PHOTOGRAPH BY COOPER + O’HARA
B
RUCE PRIMEAU IS THE MANAGING PARTNER AT THE
WHAT OTHER ISSUES ARE AFFECTING YOU?
Best Western Plus Service Inn and Suites in Lethbridge. We caught up with him to chat about some of the challenges properties are facing in the province today and how he’s managing to stay on top of things.
With the new minimum wage standards increasing, that’s $34,000 off my bottom line this year and then another next year. Then you’ve got the carbon tax coming in January with AHLA saying that you’re looking at $200 a room as the net effect.
CAN YOU TELL US A BIT ABOUT YOURSELF AND YOUR BACKGROUND?
HOW DO YOU STAY POSITIVE AND GET THROUGH THE CHALLENGES?
I’m married with three children – aged 15, 18, and 20 – and I have 15 years of experience in the hospitality industry. I also have property management experience – I opened the Lethbridge soccer centre and ran that for 10 years.
I am a natural hospitality guy. It’s what I do. “Every day is something different” is what we say in the hotel industry – it’s never the same day twice. I have friends all over the world now. I get calls for advice from different people and I’m not afraid to pick up the phone and call someone. Do you need to be positive every day? Absolutely. You can drown quite easily, but there’s lots of go-to’s within this industry. I’ve made some great friends here – people I’m proud to call friends, and as I said, I’m not afraid to call somebody and ask questions. I always love to hear input from others.
HOW WOULD YOU DESCRIBE THE BEST WESTERN PLUS SERVICE INN AND SUITES IN LETHBRIDGE? We’re a 113-room limited service hotel currently sitting as the number one hotel on TripAdvisor in Lethbridge and a two-time AHLA Housekeeping Award-winning property.
HOW IS THE CURRENT ECONOMIC ENVIRONMENT AFFECTING YOU? In Lethbridge, we don’t see the same peaks and valleys that everywhere else in the province does. And we can’t get into anything specific with our hotel but, as a whole, PKF says the province is down. Is every hotel feeling it? Absolutely.
“Every day is something different” is what we say in the hotel industry – it’s never the same day twice. I have friends all over the world now. I get calls for advice from different people and I’m not afraid to pick up the phone and call someone.”
WHAT ARE SOME OF THE OTHER CHALLENGES HOTELS ARE FACING TODAY? One of the major problems that we have in this province is the influx of the number of hotel rooms. People started building when times were good. Now times are bad, and you’ve got 2,000 rooms opening up. Does it affect me? No, but when hotels across the board are offering $99 rates, that becomes a major issue for everyone. The issue is when a full-service hotel or a three-star limited service hotel is dropping rates to match what a motel would be charging. Things like that are a major issue when you’re trying to maximize or properly manage your revenues.
Inspiring Service - Growing Value
HOW IS SOCIAL MEDIA AFFECTING BUSINESS? Some of our competitors spend $100 million to $200 million on social media campaigns. The social media aspect of running hotels … it’s massive and it’s worldwide. My partner and his ownership group both started by advertising on billboards
outside of town. Nowadays people have already researched you on TripAdvisor; they’re Google reviewing you, they’re on Yelp. Everything matters. My iPhone is my best friend because I get up-to-the-minute instant updates about a review or something that needs attention. You’ve got people checking into your hotel and already posting on Facebook. In the Best Western world, we have people that specifically focus on certain social media platforms to make sure that we’re up-to-date and on top of things. Staying on top of the industry is paramount to success nowadays.
www.ahla.ca
Fall 2016
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AHLA AND
You
Fuelling a Partnership Gas Alberta offers AHLA members innovative buying strategies to manage costs in a dynamic market GAS ALBERTA ENERGY (GAE) WAS ESTABLISHED in 2003 as an independent advisory service providing unbiased market representation for the purchase of natural gas. As an industry leader in energy procurement and price probability risk managed solutions, GAE assists customers in maintaining operational efficiency and budget certainty related to natural gas supply and consumption. In 2006 GAE partnered with the AHLA to develop a Natural Gas Program designed to meet the unique needs of AHLA members to offer buying strategies tailored to meet individual risk tolerance and cost management initiatives. GAE helps AHLA members navigate the dynamic market to better manage natural gas costs. With the implementation of Alberta’s newly enacted carbon tax January 1, 2017, the monitoring of energy consumption and subsequent emissions is vital to managing some of the fiscal impacts of the tax while remaining committed to environmental sustainability.
Although the impending tax increase is inevitable for all Albertans, it has presented an opportunity for businesses to scrutinize operational budgets, largely related to energy procurement. Though there is no way to mitigate the carbon tax, businesses can effectively reduce the financial impact by employing natural gas buying strategies that offer: • Protection from price increases during high demand periods with an opportunity to participate in the market when prices are low. • Maximum value for energy dollars. Current market conditions have forced businesses to reduce operational and capital expenditures by eliminating intermediaries, instead paying only for essential services. GAE’s fundamental purchasing philosophy is to adapt to volatile market conditions through hedging strategies intended to realize a price as close to daily index as possible while providing customers with cost certainty, price transparency, and protection for budget adherence.
Furthermore, GAE has adapted buying strategies to provide assistance in managing the costs associated with the new carbon tax, as done previously with the Alberta Rebate Program. GAE is committed to providing AHLA members with innovative buying strategies and risk management policies. We offer the expertise, support, and objective advice that empowers our partners to make informed decisions. We take great pride in our heritage and are dedicated to providing Albertans with competitive market prices and industry leading customer service. For more information please contact: Ashley Hargrave Manager, Client Services Gas Alberta Energy Direct: 403-516-6258 Mobile: -587-223-5227 Fax: 403-509-2611 Email: ahargrave@gasalberta.com
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The Alberta Hotel & Lodging Association
HR
Files
The Whole Package How to create a compensation package that will attract and motivate employees BY ROBIN BRUNET
A
TOTAL COMPENSATION
package can be one of your most valuable tools in recruiting and retaining employees. Staff who feel they are well looked after will not only be less inclined to look for work elsewhere, but they will also be more productive in their output. In addition to a fixed wage, a compensation package includes things such as bonuses, gratuities, benefits and on-site amenities. And while a fair wage is a primary component, the other items can be especially attractive to millennials and young employees. “Millennials are changing the way compensation is structured, and first and foremost what they want is fair and competitive wages – because they, more than any other generation, share lots of information, and as such they will very quickly identify disparities,” says Janet Salopek, president of Salopek & Associates, a Calgary-based human resources and strategic planning firm. After that, employers should get creative. “Millennials seek things other than money,” says Salopek. “They want flexibility in work hours, as well as flexible starting and finishing times. In other words, if they complete their daily tasks early, they want to go home early.” Salopek concedes that catering to these demands within the confines of a rigidly controlled hotel may be difficult, “but any deviation from the norm will be attractive.” And while it may seem strange to consider offering people who are just entering the workforce retirement plans, according to Adecco, it’s never too early to start putting money aside for retirement. “Many employers recognize the value in giving their employees the opportunity to get a head start on retirement savings through c ompany-sponsored pension and Inspiring Service - Growing Value
RRSP plans,” notes the company. Providing a wide variety of smaller perks demonstrates that the hotelier is taking a holistic approach to staff care. Less tangible forms of compensation may include education reimbursement programs, referral bonuses, gym discounts, daycare, competitive time-off policies, and flexible work schedules. Health-care benefits are another important consideration. Although the Canadian government provides 70 per cent of all healthcare expenses, the remaining gap is still a major concern for employees. Extended health-care plan options should be selected based on a company’s overall compensation objectives and employee needs, but be aware that vision care could raise a hotelier’s costs by anywhere from 20 to 40 per cent because the sheer number of Canadians requiring care is so great. As for dental care, a good plan is one in www.ahla.ca
which costs to employees for basic preventive care and repair are minimized, says the HR Council, an online resource that provides HR management advice. When it comes to cash compensation, the salary ranges must be consistent and in line with the market from an internal equity perspective. Variable pay structures should be designed so they reward employees based on the performance expectations of their roles within the hotel. Although developing a compensation package takes time and effort, many tools are at the hotelier’s disposal; for example, salary surveys can help determine if wages are in line with the marketplace. A keen awareness of a hotel’s financial goals, external and internal equity issues, and the local market in which the hotel operates will result in a package that is competitive and attractive to a wide range of people. Fall 2016
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Cover STORY
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The Alberta Hotel & Lodging Association
Airbnb is on the rise across the country, and it’s time for the industry to take notice BY ROBIN BRUNET
Inspiring Service - Growing Value
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Fall 2016
Mainstay 21
Cover STORY
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HILE INDUSTRY ISSUES
differ from province to province, one concern unites hoteliers across the country: home sharing, as personified by Airbnb. Airbnb is an online marketplace connecting people looking to share space in their homes with those who are looking for accommodations. For the hotel sector, this translates into travellers going online to secure lodgings offered by private property owners rather than a business run by a hotelier. Valued at $25.5 billion, Airbnb is growing at an unprecedented rate: the United States makes up 16 per cent of its total listings. In Europe, Airbnb hosts made nearly $3 billion last year, according to Co-founder Nathan Blecharczyk; and in traditional vacation rental markets, the company has spent considerable time and effort taking market share away from rental sites such as HomeAway and VRBO. Although regulators are closely monitoring Airbnb’s activities, one of the reasons for the company’s unbridled growth is that regulators never anticipated this type of business. In Europe, Airbnb collects taxes on behalf of 30 cities, including Paris and Amsterdam; the European Commission has stated that implementing bans on sharing-economy services like Airbnb “should only be a measure of last resort.” Canada is one of Airbnb’s largest global markets: nearly one million Canadians have used Airbnb, and about 650,000 visitors to Canada took advantage last year. This will presumably contribute to Airbnb’s stated goal of achieving $10 billion in revenue by 2020, which will likely come from various categories, including vacation rentals and business travel. Dave Kaiser, President and CEO of the Alberta Hotel and Lodging Association (AHLA), notes somewhat grimly that Airbnb’s appeal “covers all demographics and type of travellers. Moreover, it’s appealing to homeowners who have either lost their jobs or are simply trying to make their mortgage payments.”
Kaiser notes a particularly worrisome trend in development: that of increasing revenue coming from people renting their homes year-round, not just on a short-term basis. “Also, multi-unit operators who are renting their apartments and condos on a full-time basis put further pressure on the hotel industry and wreak havoc with affordable housing initiatives.” Kaiser goes on to cite the explosion of Airbnb accommodations in this country. “There were 30,000 as of a year ago, 9,000 in Montreal alone.” However, the good news for Alberta hoteliers is that the home-sharing craze has so far not taken off in provinces where business travel predominates. “Calgary has 306 listings, Edmonton 261,” says Kaiser, citing a recent search on the Airbnb site. “Canmore has 82, Banff 78, and Jasper only 16. This is a concern, of course, but I would characterize it as more of a looming issue that must be dealt with.” But even if we have some lead time, how can this problem be combated effectively? Quebec has led other provinces in making an attempt: a new law, which came into effect in April, requires owners who frequently rent out their properties to obtain the same provincial certification as hotel and bed-andbreakfast operators, and charge travellers lodging taxes of up to 3.5 per cent; violators face fines between $500 and $50,000. The provincial government’s tourism branch, which was responsible for developing and implementing the law, reports that requests for certification have more than doubled. Meanwhile, Kelowna, B.C., is considering options like enforcement and licensing, as well as potentially restricting the proximity of one vacation rental to another (mainly because the city receives dozens of complaints yearly about noise and parking issues related to short-term rentals). Many other municipalities, along with key Canadian cities, are also in the midst of developing strategies to protect their hotel trade. In Alberta, Kaiser and his colleagues are
“Now is the time to educate and inform and demonstrate the impact home sharing has had in other jurisdictions.”
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The Alberta Hotel & Lodging Association
Hospitality Services Cleaning for
Guest Retention
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taking the time to consider a comprehensive approach. “The main trouble with cracking down on renters is enforcement,” he says. “How can any municipality afford the resources to effectively police the laws that are put into place? The task is enormous.” Kaiser prefers a two-pronged strategy. “Yes, regulations at a local level are important, perhaps in the form of zoning that is linked to the Condominium Property Act, for example. But these regulations have to be accompanied by levies at a platform level. Otherwise, we’re not addressing the problem at the source.” But first, the AHLA must draw attention to the seriousness of the issue for the benefit of policy-makers in different levels of government. “We have a bit of breathing room, so now is the time to educate and inform and demonstrate the impact home sharing has had in other jurisdictions,” says Kaiser. “We’re in the early stages of doing so, and so far the feedback we’re getting is encouraging.” Concern over home sharing is presumably stoked by reports such as one compiled by the Ted Rogers School of Management at Ryerson University, presented at the Canadian Hotel Investment Conference earlier this year, which reveals that with a 140 per cent growth in Canada since early 2015, Inspiring Service - Growing Value
Airbnb has upended the hotel industry. The report found that Airbnb accounts for slightly more than five per cent of the total accommodation demand in Vancouver and nearly the same amount (4.7 per cent) in the Toronto market. Ottawa follows with 2.6 per cent and Calgary sits at 1.5 per cent. Combined, Airbnb represents an average of 4.3 per cent of total accommodations booked by travellers from July to December 2015 in these four cities. In addition, three-quarters of Airbnb’s revenue is generated from hosts who rent their entire home (as opposed to just renting a room within the home). People who manage two or more listings also represent half of the online accommodation company’s revenues. Lyle Hall, Managing Director of HLT Advisory and co-author of the report, warned, “If Airbnb continues to grow at its recent pace and becomes more accepted by business and convention travellers, it will have a significant impact on the broader hotel business in Canada. “Hotel owners need to start tracking their share of market and develop strategies to react to this disruptive competitor. Municipal and provincial governments will also have to carefully consider regulatory and licensing issues related to Airbnb,” said Hall. www.ahla.ca
403.259.0044
info@janiking.ab.ca
Featured EMPLOYEE
Alexander Herbert combines his culinary skills with strong leadership as the Executive Chef at the Pomeroy Hotel BY CHELSEA GRAINGER / PHOTOGRAPH BY COURTNEY MACLELLAN
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The Alberta Hotel & Lodging Association
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LEXANDER HERBERT’S CULINARY CAREER HAS TAKEN
him across the country, from Montreal to Lake Louise to Cape Breton. Most recently, he’s been spending his days at the helm of two dining outlets as the Executive Chef at Grande Prairie’s Pomeroy Hotel and Conference Centre. At The Office, the hotel’s casual upscale restaurant, he showcases comfort foods with a modern flair, while also ensuring everything runs smoothly at the hotel’s Skylark Lounge. His is not a typical 9-to-5 job. He is on hand for at least 10 hours a day, preparing dishes, encouraging staff, and refining menus. “You want to be there for all three meals,” he says, “Every day is different.” Herbert is passionate about what he does, adding that the everchanging, fast-paced environment keeps him motivated. “I like the physical and mental challenge; you’re always on your feet, and I like that it’s not easy.” Being a recognized chef was never Herbert’s plan. He fell into the culinary world shortly after graduating from high school when he took up a dishwashing job in Montreal 24 years ago, putting his original plan of attending business school in his home province of Prince Edward Island on hold.
“Every day is different. I like the physical and mental challenge.” He went on to apprentice with a three-star Michelin Chef at Opus II in Montreal before working his way up the ranks. He served as a sous chef at the Fairmont Chateau Lake Louise and Executive Chef at the Keltic Lodge Resort and Spa in Cape Breton, among other positions, before making the move to the Pomeroy Hotel in 2012. His menus are diverse, ranging from pan-seared pacific halibut topped with a pesto lemon beurre blanc and smoked tomato pico, to honey sesame glazed calamari. But he believes simple fare can be just as top-notch as gourmet eats. “If you own it and make it the best food in the world, it can be just as good as high-end food,” he says. When it comes to food, Herbert can’t nail down a favourite. However, he describes his own cooking style as French-inspired, noting his flavours are often very rich. Along with being skilled in the kitchen, Herbert puts on his manager’s hat to guide a staff of 25 food and beverage associates every day. He does what he can to help his staff succeed and pass on the culinary lessons he’s learned throughout his career. One of those lessons is the importance of remaining humble. “Get rid of the ego. It serves no purpose,” he says, adding that he does his best to surround himself with positive people who keep him motivated. “That’s the key to longevity in this business.” His care for his staff hasn’t gone unnoticed. This year, Herbert was named the Pomeroy’s Core Value Leader of the year due to his tireless efforts in the kitchen and hotel. He was nominated by his staff for the award. “That was a big honour in my opinion, to be nominated by your peers,” he says.
Inspiring Service - Growing Value
GLAMPING? COMFORT CAMPING? STAYCATIONS? Whatever You Call it, It Works!
CREEKSIDE CABINS PLUG & PLAY
READY TO RENT RICK BELLAMY (403) 652-0423 rickbellamy@experthome.ca www.experthome.ca
Eat, DRINK, SLEEP
CAFÉ
HOTEL
DRAYTON VALLEY
Into the Valley With its proximity to a provincial parks system, tourism is ramping up in this oil and gas town BY KIM TANNAS
W
HEN THE TOUR OF ALBERTA ROLLED THROUGH Drayton Valley in early September, millions of viewers worldwide were treated to stunning aerial views of the landscape surrounding this small central Alberta town. Located on the Cowboy Trail (Highway 22), approximately 130 kilometres southwest of Edmonton, Drayton Valley is set on high land overlooking the picturesque North Saskatchewan River, and recreational opportunities abound. The town of approximately 7,000 came into being as a result of the 1953 Pembina oilfield boom and it still relies heavily on the oil and gas industry today. The forestry and agriculture industries are not far behind, providing the necessary diversity to maintain the area’s economy. The Bio-Mile industrial cluster and its recently opened Clean Energy & Technology Centre are advancing sustainability efforts in the area. Plus, with its close proximity to vast amounts of Crown land, opportunities in Drayton Valley’s tourism industry are quickly emerging.
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FUEL UP For home-cooked comfort food in a 1950s diner style restaurant, head to the WHITE BULL CAFÉ in the heart of downtown Drayton Valley. Boasting the best burgers in town and a popular allday breakfast, this place fills up quickly over the weekday lunch hour. Head there on a Friday night for the $5 cheeseburger and fries or try the Eggs Benny or stuffed French toast at their Saturday brunch. The café also offers an extensive gluten-free menu. Another popular option is the THREE KNIGHTS STEAK HOUSE, which is renowned – not surprisingly – for its steaks. They’re cut from high quality AAA Angus beef, fully aged for a minimum of 21 days. Pizza, burgers, pasta, and seafood options are also available. For lighter fare and specialty coffees, head to the COBBLESTONE CAFÉ for breakfast or lunch. Try the soup of the day –
The Alberta Hotel & Lodging Association
dill pickle is a favourite – or one of their fresh salads. You can also take home one of their bottled vinaigrettes, although it’ll be hard to decide between maple cider, lemon thyme, and strawberry mint. GET OUT Just a short drive from Drayton Valley, the Eagle Point – Blue Rapids parks system offers visitors a chance to explore endless trails of lush boreal forest along the North Saskatchewan River Valley. EAGLE POINT PROVINCIAL PARK offers more than 19.6 square kilometres of protected lands north of the highway 22 bridge over the North Saskatchewan River while the BLUE RAPIDS PROVINCIAL RECREATION AREA provides more than 36.4 square kilometres south of the highway 22 bridge. There are ample opportunities for recreational activities such as canoeing, fishing, cross-country skiing, hiking, camping, archery, horseback riding, and more. If golf is more your thing, head to the DRAYTON VALLEY GOLF CLUB, a par 71, 18-hole course consisting of broad fairways and bentgrass greens. Or if you’re feeling extra adventurous, get soaring with the AIR ADVENTURE FLIGHT SCHOOL: try out a paraglider or an ultralight hang glider trike for an experience you’re unlikely to forget.
REST After a long day, rest your head at some of AHLA’s member properties in Drayton Valley: Drayton Valley Hotel 5028 52 Ave p: 780-542-5351 Lakeview Inns & Suites Drayton Valley 4302 50 St p: 780-542-3200 Holiday Inn Express & Suites Drayton Valley 5001 Brougham Dr p: 780-515-9888
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Speaking PERSONALLY
The Power of Potential David Keam, the General Manager of the Edmonton Renaissance Airport hotel, believes in a strong company culture that develops leadership from within PHOTOGRAPH BY EUGENE UHUAD
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The Alberta Hotel & Lodging Association
I
N 1997, I WAS TAKING COMPUTER
science at the University of Regina and also working part time at a casino restaurant. One morning I had to spend a few hours in the computer lab at the university working on an assignment, and while I was there I realized I was fantasizing about going to work at the casino later in the day. It was all I could think about. At that moment, something changed in my mind.
Inspiring Service - Growing Value
I realized that I didn’t want to spend my life sitting behind a computer. I enjoyed working with people, I liked being in an exciting environment, and I knew I wanted to pursue a career in the hospitality industry. The next day, I quit university. I was already a manager at the casino and it wasn’t long before I had an opportunity to join my first hotel, which was then the Canadian Pacific Hotel in Lake Louise (now the Fairmont Chateau Lake Louise). I started out as the Staff Pub Manager and eventually became Chief Steward and Director of Banquets. After a brief stint at the Fairmont Chateau Whistler as the Assistant Director of Food and Beverage, I was back to the Fairmont Chateau Lake Louise as the Director of Conference Services. In 2007, I was appointed the Director of Food and Beverage at the Delta Lodge at Kananaskis and then in 2011 moved to Edmonton to serve as the General Manager of the Sawridge Inn Edmonton South and then the Courtyard by Marriott Edmonton West. Two years ago I was hired as General Manager of the Renaissance Edmonton Airport, and I have to say working here is the highlight of my career so far. Right now we’re a multi-award-winning hotel. We are number one in our brand, we are the first Renaissance hotel ever to be attached to an airport, and honestly things couldn’t be better. A lot of hotels are going through a tough time right now, but we’re actually growing. This hotel – which is part of the Marriott brand and owned by Platinum Investments – is an absolute gem with the level of design and finish that’s been put into it. One of the things that has stood out for me working for this hotel is its dedication to developing people within the company. We have a program called the Black Coat program and we’ve had a lot of success by actively developing our employees. Being part of a smaller company, we have to follow Marriott standards but we also have freedom to set our own agenda and
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develop our own culture. Part of our culture is this belief in what we call “potential over experience,” so we look to see if somebody has the potential to do well and if we believe in them, we give them the experience. We get these people who are super engaged and dynamic and all we have to do is focus them, channel them, train them, and great things happen.
“We instill our culture in people with potential and we develop them to be our leaders and it’s really paid off for us.” Today everyone is trying to do more with less, and a lot of the long-term programs in development and training that used to exist, have gone by the wayside. At Platinum/ Renaissance I’ve seen the hotels really embrace the development of the employees to benefit itself in the future. We instill our culture in people with potential and we develop them to be our leaders and it’s really paid off for us. Along with the design of this hotel, that’s why we’re number one in our brand. Part of the reason this idea is so near and dear to me is because I’m not just somebody who is standing at the head of the hotel saying we need to look for potential in other people. I’m somebody who Platinum looked at and recognized the potential in. When this hotel had just opened and they needed to replace the General Manager, they took a gamble on me because they felt I had lots of potential. I’m so proud of everything we’ve accomplished at this hotel in the past couple of years. That’s one of the reasons I say the highlight of my career is being the General Manager here because it proves something that I believe in and the c ompany believes in – the power of working with people to develop their potential.
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PHOTO : DARRYL PROPP
Parting SHOT
Alberta Icon
THE HOODOOS CONTINUE TO ATTRACT INTERNATIONAL VISITORS TO DRUMHELLER
Earth pyramids, fairy chimneys, tent rocks: most Albertans probably know them better as hoodoos. These internationally recognizable geological formations – caused by the effects of erosion from water, wind, and frost – c ontinue to attract thousands of visitors to the Badlands every year. The protected Hoodoos recreation area, located approximately 15 minutes east of Drumheller on Highway 10, is a guaranteed location to view them but smaller versions of these striking sandstone pillars can be spotted all over the Badlands.
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Do you have a fantastic photo you’d like published in the next issue of Mainstay? Submit it to nbarber@ahla.ca or mail it to: 2707 Ellwood Drive SW Edmonton AB T6X 0P7
The Alberta Hotel & Lodging Association
Your insurance program designed for your industry
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