Comfort Inn 2011 Annual Report Download - page 20

Table of Contents
from the various search engine providers to ensure that our hotels are prominently displayed to all potential guests.
Numerous marketing and sales programs are conducted which target specific groups, including business travelers, senior citizens, automobile club
members, families, government and military employees, educational organizations and meeting planners. Other marketing efforts include domestic and
international trade show programs, publication of group and tour rate directories, direct-mail programs, electronic direct marketing e-mail programs,
centralized commissions for travel agents, fly-drive programs in conjunction with major airlines, and an annual publication of a travel and vacation directory.
We operate a loyalty program, Choice Privileges, for all of the Choice brands to attract and retain travelers by rewarding frequent stays with points
towards free hotel stays and other rewards. Choice Privileges participants earn points redeemable for free stays in Choice brand properties. The Company also
offered guests the ability to earn airline miles for qualifying stays redeemable for flights with various airline partners as well as redeem points for gift
certificates at participating retailers. These programs allow us to conduct lower cost, more targeted marketing campaigns to our consumers, deliver incremental
business to our franchised hotels and is an important selling point for our franchise sales personnel. Choice Privileges members contribute over a quarter of the
Company’s domestic gross room revenues and the program had more than 14.1 million members worldwide as of December 31, 2011. Growing the
membership of the Choice Privileges program will continue to be a focus of the Company.
Marketing and advertising programs are directed by our marketing department, which utilizes the services of independent advertising agencies. We also
employ home-based sales personnel geographically located across the United States using personal sales calls, telemarketing and other techniques to target
specific customer groups, such as potential corporate clients in areas where our franchised hotels are located, the motor coach market, and meeting planners.
Our field based brand performance consultants work with franchisees to maximize RevPAR. These coordinators advise franchisees on topics such as
marketing their hotels, improving quality and maximizing the benefits offered by the Choice reservations system. In addition, we recently launched a new rate
and selling management tool to help our franchisees better manage rates and inventory which should help them improve RevPAR by optimizing ADR and
occupancy.
Quality Assurance Programs. Consistent quality standards are critical to the success of a hotel franchise. We have established quality standards for
all of our franchised brands that cover housekeeping, maintenance, brand identification and minimum service offerings. We inspect properties for compliance
with our quality standards when application is made for admission to the franchise system. The compliance of existing franchisees with quality standards is
monitored through scheduled and unannounced quality assurance reviews conducted periodically at the property and through the use of guest surveys.
Properties that fail to maintain a minimum score are reinspected on a more frequent basis until deficiencies are cured, or until such properties are terminated.
To encourage compliance with quality standards, various brand-specific incentives and awards are used to reward franchisees that maintain consistent quality
standards. We identify franchisees whose properties operate below minimum quality standards and assist them to comply with brand specifications.
Franchisees who fail to improve on identified quality matters may be subject to consequences ranging from written warnings, the payment of re-inspection
fees, attendance at mandatory training programs and ultimately to the termination of the franchise agreement. Actual consequences, if any, are determined in
the Company’s discretion on a case-by-case basis and may take into account a variety of factors apart from a franchisee’s level of compliance with our quality
standards and brand specifications.
Training. We maintain a training department that conducts mandatory training programs for all franchisees and their employees. Regularly scheduled
regional and national training meetings are also conducted for both property-level staff and managers. Training programs teach franchisees how to best use the
Choice reservation system and marketing programs and fundamental hotel operations.
Training is conducted by a variety of methods, including group instruction seminars and on-line programs. We have also developed an interactive
computer-based training system that will train hotel employees at their own pace.
Opening Services. We maintain an opening services department who ensure that incoming hotels meet or exceed brand standards and to ensure that each
incoming hotel opens successfully. We also maintain a design and construction department to assist franchisees in refurbishing, renovating, or constructing
their properties prior to or after joining the system. Department personnel assist franchisees in meeting our brand specifications by providing technical
expertise and cost-savings suggestions.
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Competition among franchise lodging chains is intense in attracting potential franchisees, retaining existing franchisees and generating reservations for
franchisees. Franchise contracts are typically long-term in nature, but most allow the hotel owner to opt-out of the agreement at mutually agreed upon
anniversary dates.
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