Best Western. Overview

1. Jamil Mahmudzade 20112030

2. Best Western Overview

• The world’s largest hotel company
operating under the single brand
• Headquarter is located in Phoenix, AZ
• Best Western not offer franchises just
operated as a nonprofit membership
association

3. Best Western Overview

• Hotels are allowed to keep their own
independent name as part of their
identity
• AAA rates 74% of Best Western in North
America 2 or 3-diamond ratings, 80% in
Europe received 3 or 4-star ratings
• Reservation centers in Phoenix and
Glendale, Arizona; Milan, Italy; Manila,
Philippines; and York, England

4. General History

• Founded in 1946
• Initiated the "referral system”
• 1960: Requirements for Best Western
membership in order to be the "best" or "as
good as the best" property
• 1962: Reservation service covering the
entire United States and Canada
• 1963: The largest chain in the industry
with 699 member hotels and 35,201 rooms

5. General History

• 1964: The group of motels east of the
Mississippi River was incorporated as Best
Eastern, Inc.
• 1964: Canadian hotel owners joined the
system, the first step toward global expansion
• 1966: Best Western and Best Eastern, joined
under the Best Western name
• 1974: Eliminated the word "motel" from its
name and began competing directly with other
full-service lodging chains

6. General History

• 1976: Entered Mexico, Australia and New Zealand,
further establishing its international presence
• 1977: The phrase of "world's largest lodging
chain" became a part of Best Western's corporate
identification and advertising theme
• 1981: Known as the world's largest chain of
independently owned hotels
• 1995: Launched the most extensive and complete
listing of properties online making it the largest
hotel brand represented on the global
computer network

7. General History

• 2002: Implemented BestRequests
• At Present: Provides high standards and
value while allowing each property its
individuality and personality
• At the end of the 2nd quarter in May 2005, it
had 2,400 hotels in North America.135 new
hotels in North America and 163 hotels
internationally, totaling 298 new hotels in 2004

8. Corporate Programs

Regional Guestroom
Packages
BestReq
uests

9.

• The name of a select group of Best
Western hotels that offer a higher level of
amenities, services and unique features
• First introduced in early 2003
• Best Western currently has 81 PremierTM
properties
• Must have at least 7 key features

10. Special Amenities and Services

• China tumblers or
glass tumblers
• Room service
• Suites
• Shower/tub
• Closet doors
• Additional in-room
toiletries
• 16-inch televisions
• In-room movies or VCR
Turn down service
Porterage/Bell services
In-room safe
Two or more telephones
or one cordless
telephone

11.

• Best Western’s commission program
• Travel agents will receive a statement
listing each reservation by property and
paying all commissions in one check.

12. Regional Guestroom Packages

• Began in October 1999
• Offering member hotels a designing and
ordering process
• Reducing the time and money involved in a
guestroom redesign while still receiving
professional design expertise
• Seven regional packages: global, leisure, city,
country, lodge, southwestern and western
themes

13. Best Requests

• Providing amenities and services guests
asked for and can count on at every
Best Western
• Delivering BestRequests around the
world is another step forward in guest
satisfaction

14.

• Introduced in September 1988 as the Gold
Crown Club
• The GCCI program is the international
frequency program for the Best Western
travelers
• Allowing guests to exchange points for a free
room
• Membership grew by almost one million
members in the last year
• In March 2004, introduced NASCAR Speed
Rewards as an extension of GCCI

15.

• A global volume corporate program
developed for corporate clients
• In order to maximize travel budgets
without sacrificing service and quality

16. TOP 10 Hotel Groups

17. Top 20 Hotel Brands

18. Organizational Structure

19. Current Strategy

• NASCAR
• Technology
• Marketing
• Zero Based Budgeting

20. Current Strategy Evaluation

NASCAR
• A three-year partnership with
NASCAR made Best Western the
sport’s official hotel since January 1,
2004.
– NASCAR’s demographic: 75 million auto
racing enthusiasts who travel on average
350 miles to a race and stay in a hotel
two nights per visit.

21. Current Strategy Evaluation

Technology
• $7.9-million plan to install wired and
wireless High-speed Internet-access
program (HSIA) in all 2300 domestic
Best Westerns by September, 2004.
• $10.6-million project of installing a new
computer system in each property.

22. Current Strategy Evaluation

Technology
• Three-year pact with Keane and
TeleTech Services
– To improve efficiencies of scale and
reflect the steady growth of online
booking
– To double the time and development
budget for Best Western

23. Current Strategy Evaluation

Marketing
• Reposition Best Western with more
human touch in 2003 by Miller in Los
Angeles, a company of media planning
and online advertising.
– from an idea of wall-street type into an aim
for main-street
– to connect with guests on multiple levels

24. Current Strategy Evaluation

Marketing
• Seven languages besides English can
be displayed on the reservations
website.
• Four languages were added in 2004 to
the company’s intranet.
– increase some of the communication
between members in more than 80
countries

25. Current Strategy Evaluation

Zero Based Budgeting
• Tom Higgins, the former CEO,
introduced zero-based budgeting (ZBB)
philosophy to Best Western.
– From an entitlement-based culture to a
performance-based culture
– Moving towards focus and discipline

26. Mission Statements

To provide exceptional hospitality services to
our guests through anticipating and exceeding
their individual needs.
The mission of Best Western International is to
enhance brand equity and increase member
value.

27. Culture

• Entitlement-based culture to performance
or results-based culture.
• Non-profit association of member hotels.
• Hotels chosen to be part of a brand
because of their individuality.
• Services available to members on fee
individual fee basis.

28. Leadership

• 1946-founded by M.K. Guertin
• 1966-Seven person Board of Directors
elected

29. Leadership

• 1998-2001-James Evans, CEO and
President, Mike Scholz Board Chairman
• 2002-2003-Thomas Higgins, CEO and
President, Nayan Patel Board Chairman
• “Take on the mentality of a board of a
public-company, instead of not-for-profit
company.”

30. Leadership

• 2004-Present: David Kong, CEO and
President
• Larry McRae, President of the Board

31. Financial Highlights

32. Financial Highlights

33. Financial Highlights

34. Financial Highlights

35. Financial Highlights

36. Financial Highlights

37. References

Best Western. (n.d.). Retrieved October 7, 2005 from
http://www.absoluteastronomy.com/encyclopedia/b/be/best_west
ern.htm
Best Western 2004 Annual Report. (n.d.). Retrieved October 7,
2005 from
http://www.bestwestern.com/aboutus/annualreports.asp
Best Western: From 1946-Present. (n.d.). Retrieved October 7,
2005 from http://www.bestwestern.com
Best Western Outsources IT. (2005). Lodging Hospitality, 61(1), 52.
Best Western Targets NASCAR. (2004). Lodging Hospitality, 60(5),
8.
Best Western Revs Up for 2004. (2004). Lodging Hospitality, 60(1),
8.
Experience the Best Western International Difference. (2005). Hotel
and Motel Management, 220(14), 28.

38. References

Flass, R. (2003). Best Western to Aim for “Main Street” Adweek,
44(48), 10.
Gunter, H. (2004). Hotels Initiate Changes with Dedicated
Diversity Officers. Hotel and Motel Management, 219(14), 19.
Higley, J. (2004). BWI Takes Aim at More Success. Hotel and
Motel Management, 219(20), 3.
Higley, J. (2004). Best Western Evaluates Design Program,
Performance. Hotel and Motel Management, 219(20), 26.
Higley, J. (2003). Technology, Marketing Shift BWI into Fast Lane.
Hotel and Motel Management, 218(21), 1.

39. References

Intercontinental Hotel Groups Maintains its Position as World
Leader. (2005). Retrieved October 10, 2005 from
http://www.mkgconsulting.com
Zero Based Budgeting (ZDD). (n.d.). Retrieved October 10,2005,
from
http://210.210.18.114/EnlightenmentorAreas/finance/CFA/Zero
BaedBudge.htm